Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region Page: 51 of 60
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Appendix VI: Comments From the Republic
of the Marshall Islands
Note: GAO comments
supplementing those in
the report text appear at
the end of this appendix.
REPUBLIC OF THE MARSHALL ISLANDS
MINISTRY OF FOREIGN AFFAIRS
P.O. BOX 1349
MAJURO, MARSHALL ISLANDS 96960
July 19, 2001
International Affairs and Trade
General Accounting Office
Washington, DC 20548
Dear Director Yager,
At the direction of President Note, I am pleased to respond on behalff of e: Government
of the Republic of the Marshall Islands (RMI) to the GAO draft report, Fotrei
Assista c : Lessons Leard From Dtnors' Ex erience nhe P cic Re io I would
like to take this opportunity to thank your Office for providing a copy of the draft report
to the RMI for comment.
The RMN would like to provide several comments in respect to the GAO draft report.
Tf reference to the GAO figure of 1.7 billion provided to the RMI and FSM under the
Compact of Free Association Agreements (page 1). Furthermore, it was also pointed out
in the report that "U,. assistance to the FSM and the RMI, through the Compact of Frec
Association, is one of three elements (political, economic, and defense) of the Compact.
The defense element includes a right granted to the United States by the FSM and the
RMI to deny access by third countries for military use" (page 11). In this context, the
RMT considers the following point essential in establishing a more complete
understanding of the figure mentioned above in respect to the Marshall Islands:
The U.S. provides economic assistance to the RMI in exchange for military and strategic
benefits that the RMI provides to the U.S. However, the report fails to point out that in
See comment 1. addition to the strategic denial clause of the Compact, a major element of the U.S.
assistance provided to the ERMI is towards land rent payment for defense sites in the
Marshall Islands. Thus, it is a misrepresentation to state that the $1,7 billion provided
under the Compact is "Fcsreign Assistance".
The RMI would also like to provide the following specific comments in respects to the
objective review of the report,
GAO-01-808 Pacific Development Assistance Strategies
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United States. General Accounting Office. Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region, report, August 17, 2001; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc293232/m1/51/: accessed January 21, 2019), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.