Koshiba however said the provision is still pending with the U.S.Congress as part of its Fiscal Year 2010 budget.
Koshiba recently met with Allen Stayman, Chief of Staff of the U.S. Committee on Energy and Natural Resources to discuss about the progress of Palau and the use of the Compact funds.Stayman was recently in Palau for a visit.Koshiba said the U.S. officials have repeatedly assured that the extension is being supported, however there is no guarantee to it until it is passed and signed into law.“There is no guarantee until it is passed into law, but there is no opposition or obstacle to the extension,” Koshiba.The U.S. Congress will have to approve the budget by Oct. 1, the same fiscal year as that of Palau. If the U.S. Congress fails to come up with a budget on time, a continuing resolution will be approved while the financial package is still being discussed.Palau earlier asked for a one year extension as the economic provision of the 50-year Compact lapses September 30 this year.He added that Palau and US representatives to the review has not set the next meeting but both parties agreed that the next scheduled meeting should be before Oct. 1.He said that substance of the meeting is more important than the timing.After Sept. 2009, Palau is now allowed to withdraw $15 million from the Compact Trust Fund.Palau is getting as much as $18 million in subsidies and grants under the economic provision of the Compact.The latest figure showed that Palau’s Compact Trust Fund is down by $121 million.Without the extension of the Compact, the Trust Fund could ran out in less than 10 years.
