Pacific allies react to final security pact funding approval
Long-awaited critical funds to counter China in the Pacific have been approved for three U.S. allies: Palau, Micronesia and the Marshall Islands. Over the weekend, U.S. President Joe Biden signed into law $7 billion over 20 years in funding for the Compacts of Free Association as part of a partial government funding bill, as VOA’s Jessica Stone reports.
With this vote in the U.S. Senate, partial funding flows to the U.S. government. For the tiny Pacific nation of Palau -- a U.S. ally -- it’s a lifeline.
Surangel Whipps Jr.
Palau president
It’s not Oct. 1, but it’s at least within this fiscal year, and really just in time.
Palau maintains diplomatic relations with Taiwan, but its economy relies on Chinese tourists, who dropped by more than 50% in the wake of the COVID-19 pandemic, tanking the nation’s economy. Whipps says he recently met with investors from Singapore and Japan to chart a more sustainable direction.
Surangel Whipps Jr.
Palau president
Opening up new markets so that we’re diversified and more resilient, not so dependent on the Chinese tourism, which could be weaponized.
Palau’s funds come through an agreement that provides US$7 billion dollars in economic aid over 20 years to Palau, Micronesia and the Marshall Islands. In exchange, the U.S. gets exclusive access to a broad swath of the Pacific – and the right to turn others away, including China.
Kathryn Paik
Center for Strategic and International Studies
Simply having the freedom of navigation through this part of the Pacific is really critical, and if we lose that, we also lose direct access to our allies in the Philippines and Australia.
The agreement was renewed and signed last fall, but Congress took five months to fund it. The delay raised doubts about Washington’s commitment to the Pacific, warned Marshall Islands President Hilda Heine.
Hilda Heine
President of the Marshall Islands
Our nation has been a steadfast ally of the United States, but that should not be taken for granted.
In a video message on Facebook, Wesley Simina, President of the Federated States of Micronesia, or FSM, acknowledged the long wait:
Wesley Simina
President of the Federated States of Micronesia
At the end of the day, the FSM and the U.S. reached an agreement, on an outcome that I’m confident will benefit both our nations.
An agreement, these leaders say, that provides new motivation to deepen economic and security cooperation in a part of the world that’s critical to American security.
Jessica Stone, VOA News Washington.
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2024-03-15