In an interview, President Johnson Toribiong said that the U.S. position on the Compact review is that it will be expedited so that it will be concluded by early next year.
Toribiong met with Alcy Frelick, Director of the Office of Australia, New Zealand and Pacific Island Affairs and head of the United States Compact review group in New York recently.The US and Palau representatives are yet to meet anew for a continuance of a review.The economic provisions of the Compact lapsed on Wednesday.Toribiong said that the United States Congress passed a month-long continuing resolution (CR).He said that it continues funding for U.S. government operations at the 2009 level for all agencies, it did not however include the request of the Palau government for a one –year extension.The request for extension however is included in the U.S. proposed Fiscal Year 2010 budget.The continuing resolution does not include the expiring compact with Palau. Toribiong said that after 2009, Palau is allowed to withdraw at least US$15 million from the Compact Trust Fund.Palau’s FY2010 budget was made in such a way that the government will start taking money from the Trust Fund.Palau wanted a continuance of the economic assistance after 2009. Palau’s Trust Fund now amounts to over US$130 million.The provisions, provide sPalau with US$18 million in annual subsidies and grants.
