Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region Page: 56 of 60
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Appendix VII: Comments From the Federated
States of Micronesia
See comment 1.
See comment 2.
See comment 3.
See comment 4.
The reference to the ADB strategies vis-a-vis different categories of island nations could also be
misleading with regard to the role that could be played by trust funds. The ADB classification
only specifically mentions trust funds in the context of the atoll nations, but this would seem to be
more of an oversight than a suggestion that they would be inappropriate elsewhere. The ADB
and other multilateral donors have consistently supported the development of a trust fund in the
FSM, in order to provide a sustainable basis for the provision of key government services.
2. We express concern that the report does not recognize the significantly improved conditions in
the FSM. Any observer familiar with the FSM in the Trust Territory period would have to
acknowledge that very visible progress that has been made since that time.
3. The report discusses aid and donation histories of 14 other pacific island nations, places with
which the FSM has little or no cultural, geographic or historical ties. The juxtaposition of the
FSM with these other nations does a disservice, because it fails to distinguish the unique aspects
of our nation's history that set us apart from other recipient nations. There is no reference to the
historical or political obligation of the United States to provide assistance and nothing to
distinguish the FSM from other pacific island nations. On page 7 of the report, there is discussion
of 11.9 billion in aide to pacific island nations, supported by the documents found in the FSM,
RMI and OECD records. This seems to imply that the FSM is a recipient of considerably more
support than we actually receive.
4. On page 12 of the report, it states "a former adviser to the U.S. negotiator for the current
Compact said that, initially, the Compact was largely an exchange of money for defense rights".
We are concerned by this somewhat simplistic view as there were a number of other factors
affecting the original negotiations. We recommend that a more comprehensive background
account of the reasons (political, economical, and historical) for the Compact between the U.S.
and the FSM be included in the report.
5. The report wrongly gives the impression that the FSM is receiving aid from the European
6. We are pleased that the report acknowledges the vulnerability of island nations such as the
Federated States of Micronesia to the impact of climate change.
Once again, we express our appreciation for the opportunity to comment on the above -
referenced GAO report.
Jesse B. Marehalau
cc: T. H. leske K. lehsi, FSM Secretary of Foreign Affairs
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/m1/56/: accessed December 9, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.