*EPF411 06/29/00
Text: Pentagon Official on Defense Ties to Freely Associated States
(U.S. committed by Compact to provide security) (1220)

The United States is committed to provide security to the Freely Associated States -- the Republic of the Marshall Islands, the Federated States of Micronesia, and Palau -- and their peoples in the same way it defends itself and its citizens, according to Frederick C. Smith, Special Assistant for Asian and Pacific Affairs.

That commitment is "an obligation greater than the United States has assumed under any of its mutual defense treaties," Smith told lawmakers June 28 in a hearing of the House International Relations Subcommittee on Asia and the Pacific.

In return, Smith added, "the United States has the right for certain military uses and access, as well as the right to veto access to third countries."

Smith differentiated between the Mutual Security Agreement, which "is indefinite in duration" and remains in force until terminated or amended by mutual agreement, and the so-called "defense veto" and provisions regarding future base rights, which are scheduled to terminate in 2001-2003.

It is in the best interests of the United States to maintain "the full range of military access and security engagement options the Compact provides," Smith said.

Following is the text of Smith's testimony, as prepared for delivery:

(begin text)

Compact of Free Association

Statement of Mr. Frederick C. Smith
Special Assistant for Asian and Pacific Affairs
Office of the Assistant Secretary of Defense for International Security Affairs

before a hearing of the House Committee on International Relations
Subcommittee on Asia and the Pacific

June 28, 2000

The Department of Defense has a deep appreciation of the significance of our relationship with the Freely Associated States -- the Republic of the Marshall Islands, the Federated States of Micronesia, and Palau. We cannot, and should not, forget the price we paid in liberating these islands in World War II and the role that the islands and peoples played in developing crucial U.S. defense programs in the 1950s and 1960s. Our relationship is founded upon the unique role of U.S. defense responsibilities to the sovereign nations of the Freely Associated States under the terms of the Compact of Free Association.

The Compact, and subsequent agreements, obliges the United States to provide for the defense of the Freely Associated States in perpetuity, unless mutually agreed upon to terminate the arrangement. We are committed to provide security to these nations and their peoples "as the United States and its citizens are defended." This is an obligation greater than the United States has assumed under any of its mutual defense treaties. In return, the United States has the right for certain military uses and access, as well as the right to veto access to third countries.

In the absence of the Compact or the Security and Defense Relations Title of the Compact, the Mutual Security Agreement still provides for defense obligations, military access, and denial of military access by third countries. The Mutual Security Agreement is indefinite in duration, remaining in force until terminated or amended by mutual agreement. The so-called "defense veto" and provisions regarding future base rights, however, are scheduled to terminate in 2001-2003. It is clearly in the best interests of the U.S. to maintain the full range of military access and security engagement options the Compact provides.

In preparation for the upcoming Compact assistance negotiations, the Department of Defense last year conducted a study to determine our defense interests in the Freely Associated States for the post-2001 era. This study looked at issues such as continued access, current and future threats, and roles the Freely Associated States may play in future scenarios. The study found an overriding defense interest in continuing the use of the Kwajalein Missile Range and the facilities on Kwajalein Atoll. The requirements of our missile defense and space surveillance programs, combined with the uniqueness of Kwajalein's location, infrastructure investment, and real world treaty restrictions, make renewal of the Compact in the best interest of the Department of Defense.

Access and operations at Kwajalein Atoll were negotiated under the Military Use and Operating Rights Agreement (MUORA) pursuant to, but separate from, the Compact. The MUORA had an original term of 15 years that was due to expire next year. Given the importance of the agreement, the U.S. opted to extend the MUORA for an additional term of 15 years to 2016. This extension allows continued U.S. access to Kwajalein Atoll, use of defense sites identified in the MUORA and subsequent agreements, and control of the Mid-Atoll Corridor.

While the Kwajalein lease can be extended under the MUORA separate from Compact negotiations, the two are inextricably linked for operational purposes. The daily routine at Kwajalein Missile Range and the facilities on Kwajalein Atoll depend upon a favorable working relationship with the people of the Marshall Islands and the work force on Kwajalein Atoll. Provisions of the Compact help provide the basis for the support of the Marshallese people, who in turn provide not only much of the labor force, but also a positive local environment which is critical for continued success at Kwajalein.

It would be unwise to assume that the end of the Cold War lessened the strategic importance of Micronesia to the defense of U.S. national interests, for sources of potential unrest and military conflict continue to dot the Asia-Pacific landscape. Despite diplomatic progress on the Korean Peninsula, North Korea retains the offensive capability of inflicting massive damage on the South in short order. Territorial disputes in the South China Sea and Northeast Asia remain unresolved and provide potential flashpoints. Indonesia's road toward democracy faces challenges as calls for separatism grow in Aceh and other provinces, and communal violence continues throughout the archipelago. In recent weeks we have seen the violent abandonment of the constitutional process in Fiji and the Solomon Islands. Our inability to see into the future with perfect clarity, therefore, makes our right to strategic denial in Micronesia essential. Our right to prevent the basing of third country military forces in the Freely Associated States must be maintained.

Generally, in this area of the world we see a region at peace. Our task is to dampen the sources of instability by maintaining a policy of robust forward engagement and military presence, while searching for new opportunities to increase confidence and a spirit of common security. In time of peace, our responsibility also extends to taking actions that shape a strategic environment that will sustain this peace and prevent conflict over time. This is both the challenge and the opportunity we face.

The goal of Compact assistance is to maintain a unique relationship with the Freely Associated States while helping them to become economically self-sufficient. Compact assistance will help to preserve access to key defense interests for our forces while denying potentially hostile forces access to U.S. economic and defense interests in the region. Continued Compact assistance, in some form, is in the best interests of the United States and the Freely Associated States. It will help the Freely Associated States continue to work toward their national goals, while serving our national defense interests.

(end text)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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