    [House Hearing, 111 Congress]
    [From the U.S. Government Publishing Office]

     USHERING IN CHANGE: A NEW ERA FOR U.S. REGIONAL POLICY IN THE PACIFIC

    =======================================================================

                                    HEARING

                                   BEFORE THE

                     SUBCOMMITTEE ON ASIA, THE PACIFIC AND
                             THE GLOBAL ENVIRONMENT

                                     OF THE

                          COMMITTEE ON FOREIGN AFFAIRS
                            HOUSE OF REPRESENTATIVES

                         ONE HUNDRED ELEVENTH CONGRESS

                                 FIRST SESSION

                                   __________

                                 JULY 29, 2009

                                   __________

                               Serial No. 111-44

                                   __________

            Printed for the use of the Committee on Foreign Affairs

     Available via the World Wide Web: http://www.foreignaffairs.house.gov/

                                     ______

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                          COMMITTEE ON FOREIGN AFFAIRS

                     HOWARD L. BERMAN, California, Chairman
    GARY L. ACKERMAN, New York           ILEANA ROS-LEHTINEN, Florida
    ENI F.H. FALEOMAVAEGA, American      CHRISTOPHER H. SMITH, New Jersey
        Samoa                            DAN BURTON, Indiana
    DONALD M. PAYNE, New Jersey          ELTON GALLEGLY, California
    BRAD SHERMAN, California             DANA ROHRABACHER, California
    ROBERT WEXLER, Florida               DONALD A. MANZULLO, Illinois
    ELIOT L. ENGEL, New York             EDWARD R. ROYCE, California
    BILL DELAHUNT, Massachusetts         RON PAUL, Texas
    GREGORY W. MEEKS, New York           JEFF FLAKE, Arizona
    DIANE E. WATSON, California          MIKE PENCE, Indiana
    RUSS CARNAHAN, Missouri              JOE WILSON, South Carolina
    ALBIO SIRES, New Jersey              JOHN BOOZMAN, Arkansas
    GERALD E. CONNOLLY, Virginia         J. GRESHAM BARRETT, South Carolina
    MICHAEL E. McMAHON, New York         CONNIE MACK, Florida
    JOHN S. TANNER, Tennessee            JEFF FORTENBERRY, Nebraska
    GENE GREEN, Texas                    MICHAEL T. McCAUL, Texas
    LYNN WOOLSEY, California             TED POE, Texas
    SHEILA JACKSON LEE, Texas            BOB INGLIS, South Carolina
    BARBARA LEE, California              GUS BILIRAKIS, Florida
    SHELLEY BERKLEY, Nevada
    JOSEPH CROWLEY, New York
    MIKE ROSS, Arkansas
    BRAD MILLER, North Carolina
    DAVID SCOTT, Georgia
    JIM COSTA, California
    KEITH ELLISON, Minnesota
    GABRIELLE GIFFORDS, Arizona
    RON KLEIN, Florida
                       Richard J. Kessler, Staff Director
                    Yleem Poblete, Republican Staff Director
                                     ------

          Subcommittee on Asia, the Pacific and the Global Environment

                ENI F.H. FALEOMAVAEGA, American Samoa, Chairman
    GARY L. ACKERMAN, New York           DONALD A. MANZULLO, Illinois
    DIANE E. WATSON, California          BOB INGLIS, South Carolina
    MIKE ROSS, Arkansas                  DANA ROHRABACHER, California
    BRAD SHERMAN, California             EDWARD R. ROYCE, California
    ELIOT L. ENGEL, New York             JEFF FLAKE, Arizona
    GREGORY W. MEEKS, New York
                   Lisa Williams, Subcommittee Staff Director
               Daniel Bob, Subcommittee Professional Staff Member
                 Nien Su, Republican Professional Staff Member
                           Vili Lei, Staff Associate

                                C O N T E N T S

                                  ----------
                                                                       Page

                                    WITNESS

    Ms. Alcy Frelick, Director, Office of Australia, New Zealand and
      Pacific Island Affairs, Bureau of East Asian and Pacific
      Affairs, U.S. Department of State..............................    14

              LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING

    The Honorable Eni F.H. Faleomavaega, a Representative in Congress
      from American Samoa, and Chairman, Subcommittee on Asia, the
      Pacific and the Global Environment:
      Prepared statement.............................................     4
      Letter to the Honorable Voreqe Bainimarama, Prime Minister, The
        Republic of Fiji, dated July 17, 2009........................    32
    The Honorable Diane E. Watson, a Representative in Congress from
      the State of California: Prepared statement....................     9
    Ms. Alcy Frelick:
      Statement for the record by Ms. Margot B. Ellis, Acting
        Assistant Administrator for Asia, U.S. Agency for
        International Development....................................    15
      Prepared statement.............................................    20

                                    APPENDIX

    Hearing notice...................................................    40
    Hearing minutes..................................................    41
    Her Excellency Ms. Marlene Moses, Chair of the Pacific Small
      Island Developing States (SIDS) and Permanent Representative of
      the Republic of Nauru to the United Nations: Written statement.    42
    Ms. Alcy Frelick: Updated prepared statement submitted after the
      hearing........................................................    49

     USHERING IN CHANGE: A NEW ERA FOR U.S. REGIONAL POLICY IN THE PACIFIC

                                  ----------

                            WEDNESDAY, JULY 29, 2009

                  House of Representatives,
                  Subcommittee on Asia, the Pacific
                                and the Global Environment,
                                  Committee on Foreign Affairs,
                                                        Washington, DC.
        The subcommittee met, pursuant to notice, at 2:23 p.m. in
    room 2172, Rayburn House Office Building, the Honorable Eni F.
    H. Faleomavaega, (chairman of the subcommittee) presiding.
        Mr. Faleomavaega. The subcommittee hearing will come to
    order. This is a hearing on the House Foreign Affairs
    Subcommittee on Asia, the Pacific and the Global Environment.
        First of all, I want to offer my sincere apologies for
    being a little late this afternoon. We are delighted to have a
    briefing from our distinguished members of the diplomatic corps
    who will be testifying at our hearing this afternoon. I first
    want to say that this is a follow-up to a hearing we held last
    year regarding the subcommittee's concerns over how our
    country's foreign policies relate to the interests and needs of
    the island nations that make up the Pacific region.
        I would like at this time to proceed by reading my opening
    statement, and without objection, my distinguished members and
    ranking member, as well as our witnesses this afternoon, all
    your statements will be made part of the record, and any other
    related materials that you wish to submit will also be made
    part of the record.
        The topic for discussion in our hearing this afternoon is
    ``Ushering in Change: A New Era for the U.S. Regional Policy in
    the Pacific Region.''
        We need a coherent regional policy toward the Pacific. Our
    over-reliance on Australia and New Zealand is proving
    increasingly counterproductive to our interests, especially as
    resentment toward Canberra and Wellington has grown over the
    years. Moreover, given that China and Iran are actively engaged
    in the region, the United States can no longer afford to
    abdicate its responsibilities, nor should we, since the region
    encompasses sea lanes at the heart of transpacific trade and
    exclusive economic zones containing vast resources. Most
    Pacific nations also have democratically-elected governments,
    they cast 12 votes in the U.N. General Assembly and they are
    among our strongest allies.
        In my personal view, American policy toward the Pacific
    region must begin with more proactive, direct and sustained
    engagement of the countries in the region. We need to make
    clear that the United States considers the Pacific Island
    nations important enough that we will chart our own course
    rather than out-source our policymaking to Australia and New
    Zealand.
        Toward that end, the administration should increase USAID's
    presence in the region. In 1994, USAID closed its facilities in
    the Pacific--citing budget constraints and shifting strategic
    priorities. However, at the time, the United States was only
    spending $12 million annually on the Pacific Island countries.
    Given an anticipated increase in U.S. resources for the conduct
    of our foreign policy, I am hopeful that funds will be
    committed to re-establish a USAID presence among the Pacific
    Island nations.
        A relatively small amount of funds would go a long way
    toward signaling American intentions to re-engage the region.
    Such a commitment would also allow the implementation of
    country-level and regional projects that meet U.S.
    developmental goals of fostering sustainable economic growth,
    strengthening democratic institutions and addressing the
    challenges of climate change.
        In terms of providing other resources to the region, I
    believe we should increase the presence of Peace Corps
    volunteers, offer more Fulbright Scholarships and increase
    funding for the U.S. South Pacific Scholarship Program
    currently conducted under the auspices of the East-West Center.
    In addition, the administration should actively engage the
    International Monetary Fund, the World Bank and the Asian
    Development Bank to enhance their programs, which address the
    serious needs of the Pacific region.
        Beyond committing greater resources, the United States
    should demonstrate its interest in the Pacific Island nations
    through the direct involvement of senior-level officials on
    important occasions. I would encourage an early visit to the
    Pacific Island nations by the next Assistant Secretary for East
    Asian and Pacific Affairs. I would also hope that in the next
    Pacific Island Conference of Leaders summit (PICL), which will
    include the United States, that perhaps Washington will commit
    to high-level participation by, and recognition from, the Obama
    administration.
        The PICL is composed of heads of state and governments from
    the region, and meets only once every 3 years. The last meeting
    of the Pacific leaders was largely ignored by the Bush
    administration. A 10-minute speech by Secretary of State Rice
    was the extent of that administration's senior-level
    involvement.
        Moreover, the State Department should consider increasing
    the number of participants in its international visitors
    leadership program and other exchanges that permit leaders of
    the Pacific Island nations to interact with their American
    counterparts. In particular, I would urge a focus on exchanges
    demonstrating the depth of the administration's commitment to
    dealing with climate change.
        The Pacific Island nations are among those most vulnerable
    to sea level rise, coral depletion and the severe weather
    patterns that are occurring as a result of climate change.
    Indeed, as an example, the island state of Tuvalu, with only
    nine atolls a few feet above sea level may soon disappear,
    necessitating the relocation of its entire population. The same
    fate awaits many other low-lying atolls, not only in the
    Pacific region, but other regions of the world.
        Complementing environmental efforts aimed at addressing the
    problems associated with climate change, I believe that the
    administration should increase support for the study of marine
    biology and other marine sciences in partnership with the
    Pacific Island nations. Further, the administration should take
    steps to submit the Pacific Regional Environment Programme and
    associated protocols for ratification.
        I would also like to work with the administration to
    promote trade and investment in the region. The United States
    provided ample assistance to post-war Germany and Japan, and we
    have invested billions of dollars to rebuild Iraq. Yet the
    United States seems unable to clean up the nuclear mess that we
    created in the Marshall Islands or to make a concerted effort
    at working with Pacific Island and American business interests
    to diversify the region's economy. Under the Obama
    administration, I hope this will change.
        Just as there was an initiative known as the Caribbean
    Basin Initiative, I hope that the principles and the policies
    outlined by that trade agreement with our Caribbean countries
    should also be looked at very seriously for the Pacific Island
    nations as a model.
        Finally, I am hopeful that the Obama administration will
    reassess the U.S. position on signing the South Pacific Nuclear
    Weapons Free Zone Treaty, known as the Treaty of Rarotonga, an
    issue of longstanding importance to the leaders and people of
    the region.
        Now I would like to recognize the ranking member of our
    subcommittee, my good friend, the gentleman from Illinois, Mr.
    Manzullo, for his opening statement.
        [The prepared statement of Mr. Faleomavaega
    follows:]Faleomavaega statement deg.

        Mr. Manzullo. Thank you, Chairman. I appreciate your
    calling this hearing regarding America's policy toward the
    Pacific Island nations. This is a part of the world that the
    United States has overlooked more often than not, much to our
    own detriment, especially since the People's Republic of China
    is actively investing lots of resources into cultivating strong
    relations there.
        Aside from grants provided under the Compacts of Free
    Association and the Millennium Challenge Account funding for
    Vanuatu, America's direct assistance to the Pacific is low.
    U.S. policy in this part of the world must refocus to the
    challenges of the twenty-first century and not be a relic of
    the past.
        I continue to be concerned about the situation in Fiji,
    particularly after the regime abrogated the nation's
    Constitution in April of this year. This action, taken in
    response to a ruling against the military regime's ouster of a
    democratically-elected government by the nation's Court of
    Appeals is extremely worrisome, and it illustrates the dire
    consequences of a military rule.
        Not surprisingly, the regime arrested a group of Methodist
    Church leaders, and one of Fiji's most prominent chiefs only 2
    weeks ago for planning to hold a church annual conference.
    Thus, I urge the administration to do more to pressure the
    regime to hold free and fair elections as soon as possible.
        Maintaining a strong relationship with Australia must
    remain a key priority for the United States. Australia is one
    of America's closest friends and knows the Pacific region
    obviously better than we do. A strong partnership with
    Australia is vital to our national security. I supported the
    Free Trade Agreement with Australia in the 108th Congress, and
    I am happy that this partnership has turned out to be a
    significant benefit for both countries.
        United States exports to Australia have soared since the
    agreement came into force, rising from $15.5 billion in 2005 to
    $22.2 billion in 2008. Exports from Illinois to Australia have
    also risen, going from $36.1 million to $53.7 million. In fact,
    the number one exported good from Illinois to Australia is a
    large off-highway dump truck. Amazingly we have a trade surplus
    with Australia.
        My question for our distinguished witness is simple. With
    regard to China's increased presence in the Pacific, how has
    Australia's relationship with China changed, particularly in
    light of recent trade tensions? Have the collapse of global
    commodity prices, and the arrest of Rio Tinto mining employees
    by China ruin the honeymoon between Beijing and Canberra?
        New Zealand is another bright spot for America's relations
    in the Pacific, particularly in the past few years. I
    understand the New Zealand Government has expressed a strong
    interest in negotiating some form of trade agreement between
    our two countries. If this is correct, I would like to hear the
    administration's position regarding the proposal. I am also
    curious as to the status of the Transpacific Strategic Economic
    Partnership Agreement.
        On an issue related to trade, it is my understanding that
    Air New Zealand, which is owned by the Government of New
    Zealand, recently issued a request for a proposal to replace
    its narrow-body aircraft fleet. Given the importance of the
    manufacturing sector to create and sustain good paying American
    jobs, I trust the State and Commerce Departments are doing all
    they can to abdicate on behalf of American industry.
        Mr. Chairman, thank you for calling this hearing, and I
    look forward to your testimony.
        Mr. Faleomavaega. I thank the gentleman for his opening
    statement, and now I would like to turn the time over to the
    distinguished member of our subcommittee, the former Ambassador
    to the Federated State of Micronesia, the gentlelady from
    California, Dr. Watson, for her opening statement.
        Ms. Watson. Thank you so much, Mr. Chairman, and I think it
    is so important that you are holding this hearing on a new era
    for U.S. regional policy in the Pacific, and I know the last
    time we went on a CODEL we were with you and I think we need to
    take more down into this area of the Pacific so more of the
    decision makers and the lawmakers can understand the need in a
    changing era in this particular area of the world.
        The United States for many years enjoyed a lasting and
    significant partnership with the people and government of the
    Pacific. As a former Ambassador to Micronesia, I recognize the
    importance of this friendship, but I am also aware of the many
    outstanding issues in the region, including the quadulan lease
    extension, the situation in Fiji, and I was there, Mr.
    Chairman. You might remember me telling you, and I could feel
    in the atmosphere that something was going on because the
    locals were complaining about the takeover of government by
    people from other countries, and as soon as I got back to
    Micronesia there was a coup, and we have been trying to assist
    that ever since then, that there will be a democratic process
    in electing a new. But it was very telling hearing from the
    native people themselves.
        We also know that there is an increasing poverty rate and
    it is the effects of global economic downturn and the negative
    climate change that will continue to hinder its fragile
    ecosystems which in turn affect both the global community and
    the local populations, and it is my hope that under our
    President Obama we will commit to strengthen our relationship
    and renew U.S. development and aid commitments to our friends
    in the Pacific.
        Mr. Chairman, I raised an issue yesterday as we were
    talking about health care, and you might have heard the
    representative from Hawaii say that, you know, we need to be
    sure that Medicare is reimbursed, the services be reimbursed.
    Well, I do know in Micronesia we didn't have the health care
    infrastructure down in our islands, so our people would go up
    to Guam and Hawaii, and there was a broad debt that was placed
    on these two areas because we were not paying as we were going.
        So I do hope, Mr. Chairman, in conclusion, that we as a
    policymaking body would look at our territories and be sure
    that they are funded to the extent they can pay their own way
    for the new health care system that we hopefully set up.
        Please excuse me as I go to an emergency meeting just
    called, and I will look forward to hearing from witnesses. My
    staff is here, and they will inform me, and I am sure they will
    bring us most important information that we need to hear. Thank
    you so much, Mr. Chairman.
        Mr. Faleomavaega. I thank the gentlelady for her statement.
    Without objection, her statement will be made part of the
    record as well as other members who wish to make statements
    part of the record.
        [The prepared statement of Ms. Watson
    follows:] deg.

        Mr. Faleomavaega. I do want to thank the gentleman from
    Illinois for his comments concerning the situation in Fiji. For
    the record, I would like to share with my colleagues that I
    returned from Fiji about 1\1/2\ weeks ago, after consultations
    with the interim prime minister of Fiji. I want to share a
    little sense of experience and history with my colleagues to
    the effect that Fiji has had a colonial history in the past,
    and many of us here in America have no idea of the concept of
    what happened in this important island group in the Pacific.
        When you have had to grapple with some very serious ethnic
    issues among the local inhabitants, when you have had four
    military coups and one civilian coup and three Constitutions,
    and have had to deal with all of this in a 20-year period, I
    will submit to the gentlelady and my colleague from Illinois
    that the situation in Fiji is not that simple. I have been very
    vocal and very critical of the conduct and actions taken by the
    leaders of Australia and New Zealand, and I say this for the
    record, their heavy handedness and being so critical, and not
    really having a sense of appreciation of what the leaders of
    the people of Fiji have had to work with in terms of the
    current situation that they are now confronted with.
        So I just want to note for the record, as I did not have a
    chance to share with my colleagues, we had Ambassador Rice,
    U.S. representative----
        Ms. Watson. Mr. Chairman, will you yield for a moment?
        Mr. Faleomavaega. I would be glad to yield to the
    gentlelady.
        Ms. Watson. When I mentioned Fiji, I got on a bus with
    people who were visiting from Europe. No one knew who I was,
    and no one else spoke English. So I sat up in the front and I
    was right next to one of the Fijians, and I said, are you sure
    you are not from Crenshaw Boulevard in my district? That is the
    main thoroughfare, and he looked like most of the people in
    that neighborhood, and spoke English. And I finally figured out
    why he was constantly pointing out and showing the names of the
    businesses. When we got into the downtown area of the main city
    there was not a Fijian name up on those signs, professionals
    and all.
        And what he was really crying out for, and since these had
    been colonial territories in the past, that it was now time
    that the native population be full participants.
        We have gone through that in this country too, and I had a
    chance to get back to my post and consider my experiences, and
    then read about the coup, and hearing your remarks just
    reminded me that when we go into these countries and we
    completely isolate, push back the native people, there is a
    time that they say we are not going to take it anymore. And so
    we don't really train them and educate them to become leaders
    in a democratic sense.
        You know, we go in there and we reap and we are gone, and
    so I think there is a big opening under this new administration
    to go back in, reevaluate our support, and rather than going
    into the Middle East and training people there we ought to
    remember people in the Pacific, in the various nations of
    Africa, and the areas that have really pretty much been
    neglected by the western world.
        So I wanted to say that in relationship to what you are
    saying, and thank you so much. I think it is important that we
    have a series of dialogues.
        Mr. Faleomavaega. I thank the gentlelady for her comments.
    In fact, when Secretary Clinton appeared before the full
    committee, I raised the subject of Fiji, and I am very grateful
    that Secretary Clinton has given her personal attention and
    willingness and commitment to work with our subcommittee
    members and to see what we can do to give assistance to the
    current crisis in Fiji.
        I might also note to the gentlelady that I wanted to
    address the issue of Fiji with Secretary Rice, our U.S.
    Ambassador to the United Nations, and the latest development
    from what I hear that Fiji is still a full-fledged member of
    the United Nations, and I am informed that New Zealand and
    Australia now are trying every way possible to cut off any more
    opportunities for the military forces of Fiji that currently
    participate in peacekeeping operations since 1978. And I will
    also note for the record that the assistance the military
    forces of Fiji have given to the United Nations and to our
    world community is second to none in terms of how much our
    country has appreciated what the Fijian military has done to be
    part of our peacekeeping operations in the United Nations.
        But what really is disturbing to me is why Australia and
    New Zealand are singling out Fiji and to disallow Fijian
    soldiers to continue their efforts to participate in the
    peacekeeping operation.
        Ms. Watson. Would you yield for----
        Mr. Faleomavaega. I will be glad to yield to the
    gentlelady.
        Ms. Watson. As a result of this hearing, and maybe
    subsequent hearings, could we from this subcommittee send a
    letter to the Secretary of State and in that letter stating the
    position you just now did, and so we can bring some attention
    to the fact that two of our partners down in that area of the
    world would like to decrease the number of forces coming from
    Fiji or eliminate them altogether, and at a time when we need
    friends throughout the world to partner with us as we go into
    territories and we are involved in conflicts, and also we're
    involved in a tremendous crisis, that she ought to take a look?
        And as you know, former President Clinton is an envoy to
    Haiti, and so she might want to send down an envoy to this area
    to look at the Fiji situation and other areas around.
        Mr. Faleomavaega. I would say to my good friend I will
    personally draft a letter and we will have the members of our
    subcommittee sign on. We are going to send it to President
    Obama as well as to Secretary Clinton, and I think that we
    should have this kind of communication with the leaders of
    Fiji.
        Yes, they are having problems, but I don't think it is fair
    that we should hammer them and continue to be so cynical and
    critical of the difficult situation that the leaders of Fiji
    are trying to resolve, not only among themselves but especially
    among their people.
        So I gladly thank my good friend. I definitely will be
    working on that in the coming weeks, and I thank the
    gentlelady.
        By the way, Dr. Watson, Fiji has produced some of the best
    rugby players in the world. This is a little ongoing contest
    between the Samoans, the Maoris, the Fijians, and the Tongans
    as to who are the best rugby players in the world. You will
    find them in the Pacific.
        Ms. Watson. I can tell you one thing, that every small
    village on the Island of Fiji that has sand on top of the
    earth, you know, a little level of sand, they have the
    Continent of Africa, the Island of Fiji, and they use the
    shells to show the trek across the ocean to Fiji.
        Mr. Faleomavaega. Thank you, Dr. Watson. I deeply
    appreciate your comments, and I want to offer my apologies
    again to our distinguished guests here before the subcommittee.
        I know that there was an agreement that the distinguished
    Ambassador from the Republic of Nauru would be the spokesman on
    behalf of our Pacific Ambassadors, and I would like to
    personally welcome her, Marlene Moses. I have also invited our
    other distinguished Ambassadors from the Marshall Islands, from
    the Federated States of Micronesia, and from the Republic of
    Fiji to join us.
        Ambassador Moses started her career as a Foreign Service
    Officer. Since 1983, she has served as consul general in New
    Zealand, Japan and Australia; she became permanent secretary of
    internal affairs for the Republic of Nauru; and she served as
    Ambassador not only to the United Nations, but also to the
    United States, the Republic of Cuba and also Venezuela. That is
    quite a hefty responsibility there, Marlene.
        She received her collegiate education from Canberra College
    and advanced education at Monash University in Melbourne,
    Australia.
        Madam Ambassador, I will have you take the lead on your
    opening statement, and without objection I am also going to
    invite your colleagues and your distinguished Ambassadors if
    they have any written materials or statements that they would
    like to submit to be made part of the record. It will be done,
    and then maybe we can just dialogue based on your statement,
    Madam Ambassador, and we will then proceed from there.
        [Discussion off the record.]
        [The prepared statement of H.E. Marlene Moses
    follows:]Note: Moved to appendix deg.
        Mr. Faleomavaega. Our next witness this afternoon is Ms.
    Alcy Frelick. She is a career service officer, and is currently
    serving as Director of the Office of Australia, New Zealand and
    Pacific Island Affairs within the Bureau of East Asian and
    Pacific Affairs in the U.S. Department of State.
        Ms. Frelick has served in various posts, not only in the
    Western Hemisphere, including Mexico, the Caribbean and Canada,
    she also had overseas assignments in East Asia, and as consul
    general in Madrid, Spain. Also, Ms. Frelick was the principal
    officer in our Embassy in Aukland, New Zealand, as well as
    having portfolios covering the Cook Islands, Samoa and other
    small island nations.
        She also served as the chief visa immigration officer in
    Seoul, Korea, and in consulates in Kathmandu, Nepal, and as
    vice consul in Kuala Lumpur, Malaysia.
        She was a director of the UCLS project in Beijing, China,
    and managed an education project for Save the Children in
    Vietnamese refugee camps and in Indonesia, and also served in
    the Peace Corps in Kabul, Afghanistan, years ago.
        She is originally from the State of Delaware, and is
    currently residing in Northern Virginia.
        I do want to apologize sincerely for the delay in our
    hearing this afternoon, Ms. Frelick, but I do want to welcome
    you and thank you for taking the time to come and testify
    before the subcommittee.
        I will now give you time for your statement.

     STATEMENT OF MS. ALCY FRELICK, DIRECTOR, OFFICE OF AUSTRALIA,
     NEW ZEALAND AND PACIFIC ISLAND AFFAIRS, BUREAU OF EAST ASIAN
             AND PACIFIC AFFAIRS, U.S. DEPARTMENT OF STATE

        Ms. Frelick. Thank you very much, Chairman Faleomavaega,
    distinguished members of the subcommittee, thank you for
    inviting me to appear today to testify regarding ushering in
    change, a new era for U.S. regional policy in the Pacific. I
    welcome the opportunity to address our policy toward this
    important region.
        The United States values its longstanding and close
    relationships with the countries and peoples of the Pacific.
    Indeed, we are ourselves a Pacific nation with a lengthy
    Pacific coast, the State of Hawaii, and stretching to the
    Northern Marianas and American Samoa. Nothing could better
    underscore this fact than the election of Hawaiian-born Barack
    Obama, as the 44th President of the United States.
        The United States engages with the Pacific Island countries
    both bilaterally and multilaterally to address issues of
    concern to the United States, the region and the world. Our
    multifaceted engagement with the Pacific covers the gamut from
    addressing climate change to maintaining a robust missile
    defense infrastructure. Most importantly, we seek to work with
    the governments and the people of the Pacific to foster stable,
    democratic, and prosperous countries.
        I have submitted written testimony which addresses some of
    the specific questions that were raised in your invitation to
    testify today.
        Mr. Faleomavaega. Without objection your statement will be
    made part of the record.
        Ms. Frelick. Thank you very much.
        Mr. Faleomavaega. And any other submissions that you wish
    to make will be made part of the record.
        Ms. Frelick. Thank you very much, Mr. Chairman.
        The first issue I would like to address this afternoon is
    U.S. foreign assistance to the Pacific, including the Compacts
    of Free Association. I would like to note also, Mr. Chairman,
    that USAID has provided written testimony for the record and
    which should provide more information specific to the account
    of USAID involvement in the Pacific region.
        Mr. Faleomavaega. Without objection it will be made part of
    the record.
        [The information referred to follows:]USAID
    statement FTR deg.

        Ms. Frelick. Certainly major components of our regional
    assistance programs are linked to the Compacts of Free
    Association with the Federated States of Micronesia, Republic
    of the Marshall Islands, and the Republic of Palau. Under the
    terms of the contacts, all three countries receive U.S. support
    in the form of direct assistance and through access to Federal
    programs, grants and services. Administered primarily by the
    Department of Interior, this totals over $200 million annually.
        The Millennium Challenge Corporation has a 5-year, $66
    million compact with Vanuatu, which focuses on transportation
    infrastructure. USAID's regional development mission for Asia,
    which is based in Bangkok, manages several programs in the
    Pacific, like the $2.5 million program for dealing with the
    scourge of HIV/AIDS and in tropic forest conservation program
    in Papua New Guinea. Both Papua New Guinea and the Solomon
    Islands are included in the Coral Triangle Initiative.
        USAID's Office of Foreign Disaster Assistance, or OFDA, has
    provided disaster assistance to Fiji, Papua New Guinea, and the
    Solomon Islands in the past year. Last November OFDA assigned a
    representative to our Embassy in Majuro with responsibility for
    immediate disaster response for Micronesia and the Marshalls.
        The U.S. Navy's specific partnership program has been
    providing medical, dental, veterinary and engineering
    assistance in the Asia Pacific region for several years now. In
    2008, the Pacific partnership provided medical treatment to
    over 20,000 people in Papua New Guinea and 17,000 people in
    Micronesia. They are currently in the midst of a 3-month
    mission to Samoa, Tonga, and the Solomon Islands, Kiribati and
    the Marshall Islands. The Navy and the Pacific fleet are
    committing more than $20 million this year to this mission.
        In addition to these bilateral programs the United States
    is a member and supporter of some of the region's most
    important multilateral programs. Through the Secretariat of the
    Pacific Community, we contributed assistance to 22 Pacific
    Island countries and territories. Agencies like NOAA provides
    support through the South  deg.Pacific Regional
    Environmental Programme (SPREP), which you mentioned earlier,
    and 14 Pacific Island countries receive a combined $18 million
    annually through the South Pacific Tuna Treaty.
        We will be participating in the Pacific Island forum/post-
    forum dialogue meetings next week in Cairns, Australia. This
    year a major theme for the dialogue partners is donor
    coordination. Assistant Secretary of State Kurt Campbell will
    lead a robust interagency delegation to meet and consult with
    Pacific leaders. The strong U.S. presence in Cairns is an
    indication of the Obama administration's commitment to the
    region.
        Before I leave the topic, I would like to note that our
    coordination with Pacific Island countries on global issues is
    a dynamic and interactive one. Citizens of the freely
    associated states serve honorably in the U.S. military
    services. Tongan soldiers fought alongside U.S. troops in Iraq,
    and Tonga is moving forward in a peaceful transition on its
    path toward a constitutional democracy. In June, the U.N.
    General Assembly unanimously adopted a resolution sponsored by
    Nauru and other Pacific small island developing states entitled
    ``Climate Change and Its Possible Security Implications.'' This
    resolution underscored the dire nature of the threats that
    climate change posed to their nations and was supported by the
    United States as Ambassador Moses mentioned.
        Tuvalu has just announced its commitment to become energy
    independent by 2020. Micronesia was selected for an award in
    April 2009 that recognized that they were accelerating the
    phase-out of hydrocarbon, fluorocarbons beyond the requirements
    of the Montreal Protocol, and I would like especially to
    express our appreciation to President Toribiong and the people
    and Government of Palau for their humanitarian offer to
    resettle detainees from Guantanamo Bay.
        Ambassador Susan Rice recognized the terrific cooperation
    we enjoy with Pacific Island countries in the United Nations by
    hosting the Pacific Island Permanent Representatives for her
    first representational event at the United Nations earlier this
    year.
        Pacific Island countries are stalwart friends and we share
    a similar world view and values. The United States is firmly
    committed to the advancement of human rights and democracy
    worldwide. In this regard, we want to thank you, particularly
    Chairman Faleomavaega, for your leadership of the U.S.
    delegation during election observations in Micronesia this past
    March. We support cultural and academic exchanges, recognize
    women of courage, and provide annual reports on human rights
    and trafficking in persons to Congress.
        Certainly, as mentioned earlier, the most troubling
    political issue in the Pacific today is the situation in Fiji.
    The military cop of December 2006 and subsequent events around
    Easter of this year when the interim government abrogated the
    Constitution have been troubling. Fiji's coup leaders recently
    released a roadmap to democracy that did not take credible
    steps to restore democratic rule, other than to promise to
    begin working 3 years from now on a new Constitution leading to
    elections in 2014.
        Public emergency regulations remain in place. The press
    remains heavily censored and the right of assembly is severely
    restricted. Just 2 weeks ago the leaders of the Methodist
    Church and one of Fiji's three paramount traditional chiefs
    were arrested for planning to hold the church's annual
    conference despite government ban.
        The United States responded to the Fiji coup by imposing
    sanctions in accordance with Section 508 of the Foreign
    Operations Appropriations Act. Our sanctions are targeted
    against the military regime while we continue to assist the
    people of Fiji through programs geared toward strengthening
    civil society, humanitarian assistance, and disaster relief.
    Meanwhile, we also maintain full diplomatic relations with
    Fiji.
        We are closely following the statements of Pacific Island
    leaders and the actions of the Pacific Island Forum which
    suspended Fiji in May. We believe that the return of democracy
    to Fiji will necessitate the early and sustained restoration of
    such basic human rights as freedom of speech and assembly.
        I would like to conclude my remarks today by looking at the
    activities of other important players in the region. First and
    foremost is our alliance with Australia, a country with which
    we share interests, values, and commitments not only in the
    Pacific but throughout the world. The United States recognizes
    the very real leadership role Australia plays as the largest
    country in the South Pacific region.
        New Zealand is our other close regional partner. We
    collaborate intensively with New Zealand on a broad range of
    issues from democracy promotion to renewable energy. We have
    also been working with Japan, which is playing an increasingly
    welcome role in the Pacific; the European Union, and individual
    European countries that are also engaged in projects in the
    Pacific, and we welcome opportunities to expand our
    coordination with them.
        I am pleased to note that since the election of President
    Ma in Taiwan, China and Taiwan appear to have curtailed their
    competition for diplomatic recognition. That what we call
    checkbook diplomacy undermined good governance and distorted
    political processes. We encourage both parties to follow
    international norms of transparency when providing foreign
    assistance in the region.
        In conclusion, let me reaffirm that the Pacific Region is
    important to the United States. We seek to identify new and
    better opportunities to increase our engagement with the
    governments and peoples of the Pacific. We benefit from and
    appreciate the active interest and support from Congress, and
    look forward to working together to craft effective policies
    and programs to meet the mutual needs of the United States and
    the countries of the Pacific.
        Thank you very much for the opportunity to testify today. I
    would be happy to answer any questions you might have.
        [The prepared statement of Ms. Frelick
    follows:]Alcy Frelick deg.

        Mr. Faleomavaega. Thank you for your very thoughtful and
    concise statement concerning the situation in the Pacific
    region.
        You had indicated earlier in your testimony that the 44th
    President of the United States was born in the State of Hawaii.
    I don't know if you are aware of this, but at the height of the
    Presidential elections last year there was a national blog or
    blogger, I am not very good at computers, going around saying
    that I was appointed as a special agent of Barack Obama for
    which I went to Indonesia, went to Jakarta, attended even the
    school that he went to when he was a young man, and that my
    mission as a special agent of Barack Obama was to destroy any
    records giving any reference to the idea that he was born in
    Indonesia and not in Hawaii.
        What surprises me is that this nonsense is still going on
    in the blogging community. But it seems lately even in the most
    current news stories and television that there seems to be
    rejection among some of our leaders here in Washington about
    this rumor that is going on that Barack Obama is not a U.S.
    citizen.
        I would like to state for the record quite clearly that my
    colleague from the State of Hawaii, Neil Abercrombie, not only
    knew Barack Obama's parents when they were teaching at the
    University of Hawaii, but specifically said that Barack Obama
    was born in Kapi'olani Hospital in Honolulu, Hawaii. I just
    want to make sure that that record is straight, once and for
    all.
        I was curious, Ms. Frelick, you mentioned the foreign
    assistance that we have given to the island nations, I guess
    more specifically, Micronesia, to the tune of about $200
    million. And I am a little puzzled if we consider this foreign
    assistance, or is it part of our treaty obligations that we
    have toward the Marshall Islands, Palau, and the Federal States
    of Micronesia?
        Maybe I am dealing with semantics here, but I was just
    curious. How do we label this program as part of treaty
    obligations that we have had in exchange for establishing this
    very unique political relationship with these three sovereign
    nations in the Pacific in exchange for their friendship. And I
    suppose, to the extent that if we have ever a need to show our
    national strategic and security interests in this region of the
    Pacific, that that is the reason why we are paying them $200
    million or whatever it is. I suppose, as advocated by the
    Department of Defense, and why we consider these islands as
    very strategic and very important to our own national interest.
    Would you care to comment on that?
        Ms. Frelick. Thank you, Mr. Chairman, for that question. I
    have to confess that I am not a lawyer so the semantical
    differences between treaty obligations, foreign assistance, and
    how exactly all that fits with the compact would be something
    that I would need to refer back and have legal advice before I
    ventured into that particular quagmire.
        But I would like to address it because I think that when we
    are looking at our relationships with the Republic of Palau,
    the Federated States of Micronesia, and the Republic of the
    Marshall Islands is those are certainly unique relationships.
    Perhaps the pivotal moment of the relationships was when they
    became U.N. Trust Territories under U.S. authority after World
    War II, and then as the compacts were concluded and we moved
    forward under the compact relationships, it a unique
    relationship.
        The domestic agency, the Department of Interior has the
    primary responsibility for implementing the Compacts of Free
    Association, and yet they are independent countries. So I would
    have to say that I think at least on an operational basis it is
    somewhere--it sort of bridges both of those areas as both
    foreign assistance and comes in as treaty obligations for us.
        I think it is a relationship that we both benefit from, and
    that the richness and the strength of our relationships is not
    totally something that can be put down to dollars and cents,
    however.
        Mr. Faleomavaega. I might also add, Ms. Frelick, and I do
    want to say this for the record in fairness to our allies
    Australia and New Zealand, that I do want to commend them for
    all the efforts they have made in providing assistance to these
    island nations because, in my opinion, we are not doing enough
    as far as the United States alone. So I do want to commend
    Australia and New Zealand for their efforts in helping our
    island nations simply because we are totally absent. We are not
    even there. We don't even show presence. If we do, certainly it
    is not what I would expect would be something that would show
    our sense of credibility in our presence, or lack of presence
    there in the Pacific.
        I want to note also for the record that the U.S. Navy,
    recently, in the Pacific partnership program that you stated
    earlier, that some 460 doctors that went on this hospital ship,
    and went and visited all of these island countries, and
    provided assistance to thousands of Pacific Islanders in the
    various communities. And I want to commend the Navy. I think
    that is $120 million funding and usage that is most worthwhile
    and certainly makes me proud to see that that is money in good
    use to help our fellow human beings in this part of the world.
        On the question of Palau, you know there is a lot of hype
    in the media right now, and I must say that I was very moved by
    the statements made by the President of Palau as to the reasons
    why he felt that his government had to step up to the plate in
    wanting to take in these 13 prisoners who were taken, for some
    odd reason, to Guantanamo. His doing so was not to kiss up to
    the United States, but it was as part of a Pacific culture
    again. If people are in need, you help. Where are these 13
    Uighurs going to be living was the question? We refused refuge
    for these 13 Uighurs who had been determined as non-terrorists.
    I am a little disappointed personally why we cannot in our
    capacity take in 13 human beings among the 300 million living
    here in the United States. But I want to commend Palau, a
    small, little island nation that feels very strongly that it is
    part of the culture and say, ``We don't want to leave these
    people out in the street stranded.'' They should be sheltered,
    and I do commend the President of Palau for the initiative that
    he has taken.
        Now, unfortunately, the Government of China has a very
    different attitude and different reasons for thinking that
    these people are terrorists. And the likelihood is that if
    these people ever were to return to China they will either end
    up dead or in prison. So we are caught in the middle in
    somewhat of a predicament in terms of how we--I think the term
    was ``rendition''--gathered up all these suspected terrorists
    from all over the world, and brought them to Guantanamo, and
    now to realize that we have made some God-awful mistakes in
    bringing some of these people who are totally innocent. And now
    we are trying to solve the problem, unfortunately, to the
    extent that we have to find other countries willing to take
    these members of the Uighur people who live in the most extreme
    western region of China which borders Kazakhstan and other
    countries right there in Central Asia.
        So I do want to ask, where are we in terms of the status of
    the 13 Uighurs? Are they going to Palau? Are there problems
    that we are having with that transition?
        I believe there is an amendment pending in the
    appropriations bill that was introduced by my colleague
    Congressman Murtha to prohibit the transfer of any of the
    Uighurs to any U.S. territory or State. I don't know how far
    this is going to go, but I just wanted to let you know that
    this is coming down the pipeline and I was curious about the
    State Department's position on this.
        Ms. Frelick. Well, I think actually, Mr. Chairman, you
    spoke very eloquently of the Pacific way earlier in your
    statement when you spoke about a brother reaching out a hand to
    another brother, and I think that your commendation of Palau is
    something that I could not have said better myself; that
    certainly the President and the people of Palau have really
    reached out their hands to these individuals.
        I know that Special Envoy Fried has been working very
    closely with the Government of Palau to make the arrangements
    for the transfer of the Uighurs and working with Uighur
    counsel. There are details to be worked out, as you can
    imagine, and those are in the process of being worked out now.
        The Government of Palau said that they do not want to have
    any Uighurs come who don't willingly come, and so we need to
    make sure that the Uighurs who are resettled in Palau
    understand where Palau is and are----
        Mr. Faleomavaega. Teach them how to swim, too.
        Ms. Frelick. Well, that is right. Part of the resettlement
    program.
        Mr. Faleomavaega. We had discussed earlier, as you know,
    with my colleague from Illinois, the situation of Fiji. As I
    had mentioned, I will, without objection, submit for the record
    a copy of the letter that I submitted personally to interim
    Prime Minister Bainimarama. That was about 1\1/2\ weeks ago,
    and I submitted the copy of the same letter to our Ambassador
    to Fiji.
        [The information referred to follows:]Letter
    FTR deg.

        Mr. Faleomavaega. Contained in that letter were some
    suggestions I offered on the roadmap, the proposal that Prime
    Minister Bainimarama gave to the people of Fiji, and to the
    region for that matter. Of course, there is always
    disagreement, and perhaps somewhere along the line we may find
    a sense of mutual agreement on some of the issues raised.
        As you had mentioned earlier, 2014 is the target date for
    holding elections. The Constitution was abrogated. As I said
    earlier, Fiji has had to live with three Constitutions in a
    matter of 20 years; four military takeovers and one civilian
    takeover all within 20 years.
        So this is where I offered my sense of concern that
    sometimes our friends and allies in the Pacific seem to be
    making demands that there should be immediate elections and
    thinking that this is going to solve Fiji's problem, yet only
    to expect that maybe down the road we will have another
    military coup. And I think more than anything in my personal
    consultations with Prime Minister Bainimarama, that is where he
    is any way, at all cost to prevent another military coup from
    taking place in Fiji.
        So, I really think that this is something that I hope
    Assistant Secretary Campbell will give his attention. I
    definitely will bring this issue to his attention sometime
    tomorrow when I meet with him, and I sincerely hope that we
    will not lose interest in doing all we can in assisting the
    leaders of Fiji and their people.
        You had indicated earlier also about the alliance.
    Absolutely I cannot think the situation in our close alliance
    with Australia. When New Zealand announced a nuclear free zone
    policy where they will deny any U.S. ships or aircraft from
    coming to New Zealand since we have the policy, the standing
    policy they cannot deny or admit the presence of nuclear
    weapons in our aircraft and in our ships, I think this policy
    by New Zealand still stands. And this has also bothered a lot
    of Members of Congress to this day, even though this took place
    years and years ago. In a sense, it is like saying we are doing
    all the dirty work in the Pacific not only in our own national
    defense, but also the defense of our allies. And it was kind of
    a very dark page in our history during President Reagan's
    administration whereby we immediately cut off any further
    intelligence or military information with the Government of New
    Zealand because of that.
        Now, I do not know where the administration stands on this.
    Are we still going to continue looking at New Zealand with that
    one little problem, because we are denied our ships and
    aircraft to moor into their harbors and their airports due to
    never admitting the presence of nuclear weapons? I think that
    is still a serious problem among my colleagues here in the
    Congress as far as that policy is concerned.
        On China and checkbook diplomacy, I just want to say for
    the record that there was concern expressed by one of our State
    Department officials about 2 years ago about checkbook
    diplomacy currently conducted or has been conducted by China
    and Taiwan over the favors of these island countries. I had to
    interrupt the gentleman by saying, ``Wait a minute, we just
    gave $8 billion to Iraq in cash that we are having a hard time
    accounting for.''
        So I did suggest to the gentleman while it may be checkbook
    diplomacy that China and Taiwan are doing, but we are
    conducting cash diplomacy that we have a hard time finding out
    what happened to the money that we gave during the Iraq War.
        So I think we have to be a little careful when we start
    putting labels and saying that we are making checkbook
    diplomacy by these other countries, and yet our own Government
    is doing something even more glaring in a way that I say, well,
    is there a difference? I think there is a difference.
        Our close association and alliance with Japan, it is true.
    I am very, very happy that my good friend, President Ma, has
    established a much better working relationship with the
    People's Republic of China. He conducted his campaign on that
    platform, and for which the voters of Taiwan turned out
    overwhelmingly saying yes, establish peaceful, cordial
    relations with the People's Republic of China. And I think this
    is part of our own fundamental foreign policy. Whatever is
    between China and Taiwan, it should be resolved in a peaceful
    manner and not go through another experience of having to send
    two carrier battle groups to the Taiwan Straits as happened
    during the Clinton administration. I don't think my colleagues
    here would ever want to go through that experience again where
    we came close to a nuclear war with China over something we
    ought to be able to prevent.
        I am sorry. I did not mean to rattle on. I just wanted to
    share with you some of these issues that come before the
    subcommittee affecting our region.
        I do appreciate very much your comments and your statement
    and your commitment that we can always do a better job, if I
    can put it in those terms, as I am sure that our friends and
    our supporters in the Pacific region want very much to continue
    our close working relationship with them now and in the future.
    So I will give you one more opportunity if you would like to
    have another chance to take a shot at that.
        Ms. Frelick. I just want to thank you very much for holding
    this hearing today. I have been working with Ambassador Moses
    and some of the other permanent representatives in New York who
    are also bilateral Ambassadors to the United States. It has
    been a real pleasure to work with them. I look forward to going
    to the Pacific Island Forum, post-forum dialogue meetings next
    week in Cairns, and I think the more we can work together with
    not only the regional partners but the other donor countries in
    the region who have an interest in the Pacific the better we
    can do to try to address some of the very real issues that we
    have to deal with in the Pacific. These are wonderful
    countries, rich cultures, enormous resources, and we do care,
    and we want to do everything we can to have the U.S. presence
    felt and to have that be a positive presence.
        Thank you very much, Mr. Chairman.
        Mr. Faleomavaega. Ms. Frelick, I look forward to working
    with you and Secretary Campbell and members of the bureau. I
    think we are going to have an exciting time not only with the
    Pacific, but also with the countries of the Asian continent.
    Again, I really want to thank you for taking the time to come
    and be with us this afternoon.
        The hearing is hereby closed.
        [Whereupon, at 3:37 p.m., the subcommittee was adjourned.]

                                A P P E N D I X

                                  ----------

         Material Submitted for the Hearing RecordNotice deg.

    Minutes deg.

    Moses--in appendix (briefing statement) deg.
                                   __________

    Corrected Frelick statement deg.
                                   __________