Palau’s chief representative to the Compact review, Ambassador Joshua Koshiba, said he does not think that a review at this time “would be productive.”
Under the Compact, the U.S. financial assistance to Palau ends on Sept. 30 this year.Palau is requesting for an extension.President Johnson Toribiong told reporters that the U.S. has agreed to a one-year extension, but will reduce the amount of financial assistance starting in 2011.Koshiba said the U.S. proposal will reduce the Compact Trust Fund to zero by year 2017.“Palau is currently experiencing a shortfall in its local revenues, the consequences being that Palau simply cannot afford to send a delegation off-island at this time,” he said.His staff, he added, also has prior commitments for September in preparation of the anticipated U.S. congressional hearing.
