Joint Statement from the President of the United States and the Presidents of the Freely Associated States May 21, 2019
"We are confident our relationships will further our abiding mutual interests and remain a source of regional security, stability, and prosperity."
The United States of America, the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia, as Pacific nations, jointly reaffirm our interest in a free, open, and prosperous Indo-Pacific region. We recognize our unique, historic, and special relationships, and reaffirm our countries’ commitments to the Compacts of Free Association, resolving to continue our close cooperation in support of prosperity, security, and the rule of law.
Our nations believe in an economic development model that supports inclusive economic growth and an environment in which the autonomy of all nations is respected. It is in our mutual interest that the Pacific Ocean remains an important and vibrant corridor for maritime trade, and that we work together to reduce vulnerabilities to economic fluctuation and natural disasters. We seek to continue encouraging private-sector investment and trade between our countries and to strengthen the bonds between our peoples.
We remember the sacrifices of our sons and daughters to guarantee a more secure world where freedom can thrive. Today, many citizens of the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia serve in the United States military. Their service is a proud reminder of our countries’ enduring commitment to our shared security in a dynamic and critical region.
We resolve to continue developing joint initiatives, both bilaterally and through multilateral forums, such as the Pacific Islands Forum, to tackle the region’s most pressing issues, including responding to natural disasters; combating illegal, unreported, and unregulated fishing; advancing economic development; strengthening the rule of law; and supporting the resiliency of the Pacific islands environment. We recognize these shared priorities and are committed to collaborate on effective solutions responding to the unprecedented challenges of the 21st century.
We are confident our relationships will further our abiding mutual interests and remain a source of regional security, stability, and prosperity.
Sign of respect: the Freely Associated States come to Washington
Wooed by China and Taiwan, the presidents of Palau, Micronesia and Marshall Islands now sit down with Donald Trump.
Leaders of the Republic of Palau, Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) are well used to seeing each other. They share a neighbourhood in the North Pacific and meet annually at the Micronesian Presidents’ Summit to discuss strategies on key issues such as climate change, fisheries, and their relationship with the United States.
As a group they are referred to as the Freely Associated States, based on their Compact of Free Association with the United States; they are independent countries, but the US provides financial and defence assistance in exchange for exclusive territorial access. In the past couple of years in particular, leaders of each country have received the red-carpet treatment from China and Taiwan, with high level visits in their own country or abroad. Comparatively, presidents of the Freely Associated States have been given meetings with the Secretary of the US Department of Interior (as recently as 20 May) or State Assistant Secretary. Given that a US President never has, and never will, participate in the Pacific Islands Forum, Micronesian Presidents’ Summit, or similar Pacific island-centred dialogue, this meeting presents a chance for the US to show respect for each leader and the group as a whole.
US officials, commentators and even Palau’s President Tommy Remengesau are right to point out that this meeting underscores the importance of the strategic location of these countries and geopolitical tensions with China. But more significantly, it demonstrates the resolve of each country’s ambassador and leaders to press for the meeting and make their case at the highest political level. The China angle is just one leverage point and it’s evidently worked in order to get the attention of the US Defence department and the White House, who are not shy to mention it.
The last thing the leaders of the Freely Associated States want is for them or their citizens to be seen as a drain on US resources. In fact, a major goal of the Compact of Free Association was to promote self-sufficiency. But providing stability for their citizens residing in US territories, Hawaii, and on the mainland is critical to getting remittances, educational opportunities, access to health care, and positive people-to-people ties.
While residing in the US, citizens of the Freely Associated States are eligible for some services but are ineligible for most federal, state, and local government benefits such as food stamps (now called the Supplemental Nutrition Assistance Program) or Medicare, and have had a number of social safety nets reduced. A suite of government services and grants are written into the Compact, but some are funded by discretionary spending, including the more than $30 million provided annually since 2004 to deal with “Compact Impact” for Guam, Hawaii, Commonwealth of Northern Marianas, and American Samoa.
Citizens of the Freely Associated States also serve in record numbers in the US military; taking care of veterans and ensuring access to sufficient care will be a critical issue.
As recently as this month, the US released funding for FSM for “emergency relief and reconstruction assistance” to be administered by the US Agency for International Development (USAID) and other agencies. The agency has a solid history of providing funding and technical support to the Freely Associated States, each of which face different challenges due to climate change and disaster preparedness.
The Trump Administration has advocated continued cuts to the State department’s and USAID’s budgets, limiting their capacity in this area. Rather, official policy aims for other countries to share the burden for health and development priorities, reflecting “a new approach toward countries that have taken unfair advantage of the United States’ generosity.” Reaffirming commitment to the Compact and demonstrating how it is “the backbone of America’s Pacific military strategy” as Remengesau recently wrote will be the most important goal for leaders of the Freely Associated States. They want to know that the US will renew the Compact upon expiry of certain provisions in 2023 for Palau and 2024 for RMI and the FSM, especially funding for their trust funds and delivery of US services.
Like many island countries, Palau, FSM, and RMI face mounting challenges in non-communicable diseases; FSM and RMI have some of the highest rates of diabetes in the world, and citizens of the RMI still cope with ramifications of being a former nuclear testing site. Additionally, Palau and the FSM have faced difficulties with illegal fishing and drug trafficking and have struck agreements with the US and others for patrol boats, training, and security cooperation. It is essential that a future Compact acknowledges the history and future trajectory of each country outside of the arena of geostrategic competition.
While the US relationships with the Freely Associated States have been plagued by legal interpretation and the fact of distance over the years, the US sees the Pacific islands “as an essential part of the free and open Indo-Pacific region”. Each has rich histories, cultures, and ideas for the future
US-China battle for influence sees Trump welcome leaders of South Pacific island nations to the White House.
The brief but symbolic meeting demonstrated US support at a time when Washington is pushing back against expanding Chinese influence in the Pacific. Washington pays much of the small countries’ budgets and in return uses the territories as important links in a huge chain of military bases across the ocean. A senior White House official said: “President Trump has been directing an unprecedented level of focus on the Pacific Islands, in recognition of the fact that the United States is a Pacific nation, with immutable strategic, economic, cultural and people-to-people links in the islands.”
Jian Zhang, director of China engagement at UNSW Canberra at the Australian Defence Force Academy (ADFA), said that China’s growing economic ties with states under the compact had Washington worried that Beijing might eventually displace it as the major power in the region. “The meeting today is more than ceremonial,” Zhang said. “President Trump wants to send a message that the US will continue to maintain its position in the region, making a commitment to provide continued economic assistance and maintain the defence facilities the US has on those islands.”
Geography is an important part of China’s interest in the island nations, according to Zhang from the Australian Defence Force Academy. Crucial to Beijing’s defence strategy is the ability to freely navigate its navy, including submarines, among the multiple island chains surrounding China’s coast. The first chain includes Japan, Taiwan and the Philippines, while the second includes the Mariana Islands – a US territory – as well as Palau and Micronesia.
The leaders of states under the compact are also on the front lines of the fight against climate change, facing rising sea levels and coastal erosion as well as annual weather-driven natural disasters. They have been vocal advocates for international climate change adaptation efforts at the United Nations, where they carry the same voting power as the world’s largest economies.
China’s trade with Pacific Island nations reached US$8.2 billion in 2017, according to the USCESRC – nearly five times that of their trade with the US, at just US$1.6 billion, and nearly twice the level of trade in 2015. Beijing has also conducted extensive scientific research on the seabed in the region, including placing acoustic surveillance sensors on the seabed near the island of Yap in Micronesia.
In a show of diplomatic interest in the region, Washington has in recent months sent a flurry of high-level diplomats to the region, including assistant secretary of defence Randy Schriver and Patrick Murphy, the State Department’s principal deputy assistant secretary for East Asian and Pacific affairs. (It should be noted that Assistant Secretary of Defense Randy Shriver was a panel participant in GUASA's first Roundtable on Guam in 2013.)
Reports last year of Chinese interest in developing military outposts in the Indo-Pacific – though denied by China – could pose a threat to US interests, according to a January report by the US-China Economic and Security Review Commission (USCESRC), which provides recommendations to Congress. “As China increases its economic engagement, Pacific Island countries may feel more beholden to Beijing and side with it in international forums,” warned the report. “At this stage, China wants to develop growing ties, especially economic and political ties, and over time those will be very useful in achieving its strategic agenda,” said Zhang from the ADFA.
Geography is an important part of China’s interest in the island nations, according to Zhang from the Australian Defence Force Academy. Crucial to Beijing’s defence strategy is the ability to freely navigate its navy, including submarines, among the multiple island chains surrounding China’s coast. The first chain includes Japan, Taiwan and the Philippines, while the second includes the Mariana Islands – a US territory – as well as Palau and Micronesia.
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