The Federated States of Micronesia will receive more US economic assistance under the Compact of Free Association in exchange for the Pacific nation’s broader role in regional security that entails expanded military use of its land, water and air.

“Of paramount importance is that our nation’s citizenry be informed in advance when US fighter jets fly over the State of Yap, for example, or when the US practice firing anti-aircraft missiles from the ground,” FSM President David Panuelo said in a state of the nation address delivered on Friday before the FSM Congress.

Panuelo advised the FSM citizens to also expect more training exercises in and around the nation’s ocean.

• READ MORE: Other FSM reports

“These exercises will be increasing in frequency over the next several years, and while they are ultimately in our national interest and in the interest of our nation’s security — of which the US is our indisputable guardian — it is important that our citizens know about them well in advance so that our people do not see these activities and then immediately fear the worst,” he added.

The compact grants the United States “strategic denial” — the option to deny foreign militaries access to the freely associated nation and provide for US defence sites.

Panuelo acknowledged that the US military’s ramped-up presence in the region was brought about by growing geopolitical conflicts in the Pacific, where Washington and Beijing play tug of war.

The unabated rivalry is compounded by China’s persistent threats to take over Taiwan, which the US vows to defend.

Amplified military activities
Panuelo said the amplified military activities in Yap will require the expansion of the state ports and increased presence from the US Navy Seabees.

In his state of the nation address, Panuelo said the FSM would receive $140 million in annual sector grant assistance from Washington under the compact’s renewed economic provisions. The agreed amount represents more than $50 million a year over current assistance levels, the president added.

“The good news is that there is much we have already completed successfully with regards to our compact’s negotiations,” Panuelo said.

“I have also made clear that in addition to this sector grant assistance, a one-time contribution of funds into our Compact Trust Fund remains a critical component of our nation’s economic requirements, and is necessary for the health and sustainability of the fund,” Panuelo said.

The economic provisions of the compact are set to expire in September. Washington last week announced the signing of a memorandum of understanding, separately with Palau and the Marshall Islands, renewing the economic assistance for both freely associated states.

Washington and the FSM have yet to formally sign an agreement, but Panuelo said he has “shaken hands” with Joseph Yun, the US special presidential envoy for compact negotiations, on the proposed new deal.

“There remains some important work to be done before our nation’s negotiating teams can sign off,” Panuelo said.

Among sticky points
Among the sticky points is the FSM-proposed update on fiscal procedures, which Panuelo said must “reflect more deference to the FSM in the management and implementation of funding assistance.”

Panuelo earlier asked Washington to let the FSM manage its own financial responsibilities under the compact, noting that the funds provided by the treaty are part of diplomatic arrangements rather than largesse.

Read related story US asked not to micromanage FSM Other pending issues include “the development of mutually acceptable subsidiary agreements that are appropriate for the next compact period.”

At the same time, the negotiating panels are working on the continuation of US programmes such as Pell grants, and the reinstatement of US Department of Education programmes previously made available to FSM students.

“The FSM will work very hard until we are satisfied with all aspects of the agreements between our country and the United States,” Panuelo said.

Besides the compact funds, Panuelo reported that the FSM has received a total of $747 million from other foreign donors and lenders including the World Bank, the Asian Development Bank, Japan, China, the European Union, Australia and India.

“The figure would be higher if we could financially measure certain forms of in-kind assistance,” Panuelo said.

“Part of this success is due to the improved coordination between the nation and its development partners since the establishment of the Overseas Development Assistance policy in 2013,” Panuelo said.

Foreign donations financed the FSM’s infrastructure projects including the administration’s $100 million “Pave the Nation” initiative.

Republished from the Pacific Island Times with permission.

The President of the Federated States of Micronesia says he has serious concerns about the details of two leaked Chinese government documents to be tabled at a meeting next week.

President David Panuelo warns the sovereignty of the Pacific Island countries is at stake, and that the outcome of one of the documents could result in a cold war or even a world war.

Panuelo has written to 18 Pacific leaders — including New Zealand, Australia, and the Secretary-General of the Pacific Islands Forum — specifically about the China-Pacific Island Countries Common Development Vision.

• READ MORE: President David Panuelo’s letter to Pacific leaders
• Read the Chinese action plan
• Blinken lays out US strategy to counter China as rivalry grows
• Pacific media freedom threatened on by China

The other document is a five-year plan to implement the outcomes into action.

In his letter he said the Common Development Vision and Monday’s meeting was a “smokescreen” for a larger agenda, and further warned that China was looking to exert more control over Pacific nations’ sovereignty and that this document threatened to bring at the very least a new Cold War era but in the worst-case scenario, a world war.

He has urged leaders in the region to look at it carefully before making any decisions.

In particular, Panuelo noted that the Vision sought to “fundamentally alter what used to be bilateral relations with China into multilateral issues”.

Ensuring ‘Chinese control’
The Vision he added sought to “… ensure Chinese control of ‘traditional and non-traditional security” of our islands, including through law enforcement training, supplying, and joint enforcement efforts, which can be used for the protection of Chinese assets and citizens.

It suggests “cooperation on network and governance” and “cybersecurity” and “equal emphasis on development and security”, and that there shall be “economic development and protection of national security and public interests”.

“The Common Development Vision seeks to ensure Chinese influence in government through ‘collaborative’ policy planning and political exchanges, including diplomatic training, in addition to an increase in Chinese media relationships in the Pacific …,” he said.

“The Common Development Vision seeks Chinese control and ownership of our communications infrastructure, as well as customs and quarantine infrastructure …. for the purpose of biodata collection and mass surveillance of those residing in, entering, and leaving our islands, ostensibly to occur in part through cybersecurity partnership.”

The Vision he said “… seeks Chinese control of our collective fisheries and extractive resource sectors, including free trade agreements, marine spatial planning, deep-sea mining, and extensive public and private sector loan-taking through the Belt and Road Initiative via the Asian Infrastructure Investment Bank.”

Panuelo said the proposed China-Pacific leaders meeting on Monday in Fiji was intended to “shift those of us with diplomatic relations with China very closely into Beijing’s orbit, intrinsically tying the whole of our countries and societies to them.

“The practical impacts, however, of Chinese control over our communications infrastructure, our ocean territory and the resources within them, and our security space, aside from impacts on our sovereignty is that it increases the chances of China getting into conflict with Australia, Japan, the United States, and New Zealand, on the day when Beijing decides to invade Taiwan.

China’s goal – ‘take Taiwan’
“To be clear, that’s China’s goal: to take Taiwan. Peacefully, if possible; through war, if necessary.”

Panuelo said the FSM would attend Monday’s meeting and would reject both documents “on the premise that we believe the proposed agreement needlessly heightens geopolitical tensions, and that the agreement threatens regional stability and security, including both my country’s Great Friendship with China and my country’s Enduring Partnership with the United States.”

He said the Vision and meeting were a “smokescreen for a larger agenda”.

“Despite our ceaseless and accurate howls that Climate Change represents the single-most existential security threat to our islands, the Common Development Vision threatens to bring a new Cold war era at best, and a World War at worst.”

He said the only way to maintain the relationship with Beijing was to focus exclusively on economic and technical cooperation.

Panuelo hoped that by alerting his Pacific colleagues of developments that “… we can collectively take the steps necessary to prevent any intensified conflict, and possible breakout of war, from ever happening in the first place”.

“I believe that Australia needs to take climate change more seriously and urgently. I believe that the United States should have a diplomatic presence in all sovereign Pacific Islands Countries, and step-up its assistance to all islands, to include its own states and territories in the Pacific.”

Not a justification
Panuelo summed up: “However, it is my view that the shortcomings of our allies are not a justification for condemning the leaders who succeed us in having to accept a war that we failed to recognise was coming and failed to prevent from occurring.

“We can only reassert the rightful focus on climate change as our region’s most existential threat by taking every single possible action to promote peace and harmony across our Blue Pacific Continent.”

Panuelo said his cabinet has suggested the FSM resist the objectives of the documents and the nation maintain its own bilateral agenda for development and engagement with China.

He also said the documents would open up Pacific countries to having phone calls and emails intercepted and overheard.

China’s Foreign Minister Wang Yi is currently visiting several Pacific countries.

This article is republished under a community partnership agreement with RNZ.

Assistant Secretary for Civil Aviation of the Department of Transportation, Communications and Infrastructure, Massy Halbert, said this new flight route would strengthen trade links and provide more business opportunities.

It would also promote a sense of “Pacificness” between both countries.

Halbert also added that it was historical and both countries will work together to ensure this service is sustained.

“Absolutely, I will continue to do my part, so plans for December to begin the passenger schedule service can proceed,” he said.

Air Niugini has begun operating the special services to Chuuk and Pohnpei in FSM and is flying a special service to FSM for the Pacific Islands Forum leaders summit whose preparatory meeting opens tomorrow.

There were 70 divers, and others, by chance were booked on the first flight PX 4072, operated by Boeing 737-700.

After 2 hr 40 min, the Bird of Paradise touched down at Chuuk. From Chuuk, it took another hour to Pohnpei.

Sharing costs
Air Niugini chief executive officer, Simon Foo, says the partnership is about sharing costs involved in operating this service.

Industries like tourism will be promoted.

“It will be twice a week, from Port Moresby to Chuuk then Pohnpei and back the next day,” he said.

This service saves time and cost.

A passenger, Quinton Devlin who works in the Solomon Islands, said it now only took three hours to Pohnpei rather than connecting through different countries.

“From Honiara, this is the best route with less time,” he said

It’s always a privilege for operating crews, like Ethel Samlai, because normally they are randomly selected.

“I am very privileged and I thank Air Niugini for selecting the team which I was part of,” she said.

Foo said the establishment of this direct service from Papua New Guinea to the Federated States of Micronesia represented a major expansion of Air Niugini in the Pacific and for Port Moresby to become the Pacific’s “hub in the aviation industry”.

EMTV News reporter

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