Publication

This working paper examines the issues surrounding the renegotiation of the Compacts of Free Association, especially the desire on the part of US policymakers to introduce a trust fund to replace the current financial arrangements in Micronesia and the Republic of the Marshall Islands. It is argued that without adequate financial provision for the trust fund and continued access to US federal programs, both island states will cease to function as viable governments. The issue of US interests in the region - especially defense - remain, however, unclear, and are largely dependent upon the overall state of US security relations with China and Korea.