Review Timing -- Compact Section 432 provides that Palau and the United States will conduct a joint review of the Compact and their relationship upon the fifteenth anniversary of the effective date of the Compact. The U.S. Department of State initially took the position that the review should not occur until after September 30, 2009, following the fifteenth year of the Compact.

Palau's position was that the review process should begin much earlier in order to be able to achieve an agreement and to complete necessary legislative actions regarding future financial assistance under the Compact prior to September 30, 2009, when the initialI5-year Compact financial and federal program provisions would otherwise expire. Palau emphasized that both agreement and implementing legislation by that date were necessary to avoid negative economic consequences leading up to and following the I5-year anniversary.

Under the Compact and under the Program and Services Subsidiary Agreement, federal program assistance and the right of U.S. personnel to be in Palau for certain key programs will expire on

September 30, 2009. At the same time, the fifteenth anniversary year of 2009 would begin with a new U.S. Administration and a reorganized U.S. Congress. This could delay U.S. action without an early start by both countries.

In 2007, Palau obtained support from U.S. Congressional leaders for the early commencement of the review process. Members of the U.S. Congress were concerned that if the review started only in 2009, it would be very difficult to reach agreement and pass necessary U.S. legislation by the September 30, 2009 deadline. Therefore, at the urging of Palau and the U.S. Congress, the U.S. Executive Branch reversed its prior position and agreed in late 2007 to begin the review process in 2008 with an objective of reaching agreement "in principle" between the executive branches of both governments during 2008.

Review Participants - Palau's primary participant ('Chief Representative') in the review process, as appointed by the President and confirmed by the Olbiil Era Kelulau, is Billy Kuartei, Chief of Staff to the President. The Chief Representative is supported by a Compact Advisory Committee, with advisors in Palau and in Washington D.C.

The U.S. is organized around an Inter Agency Committee (IAC), chaired by the Department of State. The lAC also includes a broad range of U.S. agencies, particularly the Department of Defense and the Department of the Interior. While the Department of State leads the U.S. negotiation process, funding for the Compact is authorized and appropriated within the Department of the Interior's budget. The U.S. is currently represented by Alcy R. Frelick, Director, Office of Australia, New Zealand and Pacific Islands, Bureau of East Asia and Pacific Affairs, Department of State. Ms. Frelick is new in that role, having replaced Steve McGann, now serving as the U.S. Ambassador to Fiji. Mr. McGann chaired the U.S. team in both formal meetings to-date (in Koror in March 2008, and in Washington, DC, in June 2008).

Palau Proposal-- Based on Palau's review of the Compact and the initial consultations with the U.S. in March 2008, Palau submitted a proposal in April 2008, along with supplemental materials in July and August. In general, Palau emphasized financial and economic security, governmental efficiency, environmental stewardship, and strengthened security and military relationships.

With Johnson Toribiong's Administration, Joshua Koshiba was selected as Chief Negotiatior as well as given the title of Ambassador to speak with clout on behalf of the Compact.  Members of the Compact Review Office include Vice-President & Minister of Administration Kerai Mariur; Minister of State Sandra Pierantozzi; Minister of Health Stevenson Kuartei; Dr. Patrick Tellei, EdD; Mr. Kevin Kirk, esq.; Dr. Victor Yano, Mr. Demei Obak; Mr. George Ngirarsaol; Mr. Polycarp Basilius; Mr. Isaac Bai; Palau's Ambassador to the United States Hershey Kyota; and Palau's Ambassador to the United Nations Stuart Beck.

The Compact Review Office is managed by Ms. Ngedikes Olai Polloi as Special Assistant to Ambassador Koshiba; Ms. Lulu Techur as Office Manager; Mr. Jordan Malsol (Administrative Assistant); and Mr. Ngiratmetuchl Belechl (Assistant on Financial Matters).

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