[Congressional Record Volume 162, Number 33 (Tuesday, March 1, 2016)]
[Senate]
[Pages S1136-S1137]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI (for herself, Ms. Cantwell, and Ms. Hirono):
  S. 2610. A bill to approve an agreement between the United States and 
the Republic of Palau; to the Committee on Energy and Natural 
Resources.
  Ms. MURKOWSKI. Mr. President, I am pleased to join with Senator Maria 
Cantwell and Senator Mazie Hirono to introduce legislation to approve 
the 2010 Agreement between the Governments of the United States and the 
Republic of Palau following the Compact of Free Association Section 432 
Review.
  Palau's history with the United States dates back to the Battle of 
Peleliu, fought between United States and Japanese forces for over two 
months with the highest casualty rate of any battle in the Pacific 
Theater. Following World War II, Palau became a district of the Trust 
Territory of the Pacific Islands under the auspices of the United 
Nations, but administered by the United States. Palau was the last 
district of the Trust Territory to choose its political future, when in 
1994, it became a self-governing, sovereign state and entered into a 
fifty-year Compact of Free Association with the United States similar 
to that of the Marshall Islands and the Federated States of Micronesia.
  Under the Compact, the United States, through the Department of the

[[Page S1137]]

Interior, provides economic and financial assistance, defends Palau's 
territorial integrity, and allows Palauan citizens the opportunity to 
enter the United States as non-immigrants. In return, the United States 
receives exclusive and unlimited access to Palau's land and waterways 
for strategic purposes. U.S. assistance is intended to help Palau 
develop its infrastructure and economy so that it has a sustainable 
government and economy capable of functioning without the United 
States' support. Section 432 of the Compact provides that after the 
fifteenth, thirtieth, and fortieth anniversaries of the Compact, the 
United States and Palau shall formally review the terms of the Compact 
and shall consider the overall nature and development of their 
relationship, including Palau's operating requirements and its progress 
in meeting development objectives.
  The United States can count on Palau to vote with us on a broad range 
of issues, including some that are controversial and where we need 
reliable allies. On a number of important resolutions that have come 
before the United Nations' General Assembly, Palau stood by us and 
provided critical votes. For example, in 2014, Palau voted with the 
United States on 97 percent of votes before the U.N. General Assembly, 
and Palau voted with the U.S. 90 percent of the time in important 
votes. From 2011-2013, Palau voted with the United States 100 percent 
of the time in important votes. Palau has been a steadfast ally of the 
United States in international forums and we should be mindful of and 
grateful for their support.
  It is also important to recognize that Palau has consistently 
demonstrated a commitment to the U.S.-Palau partnership under the 
Compact. Palauan nationals serve in U.S. coalition missions, 
participate in U.S.-led combat operations, and have given their lives 
for the safety of our nation. Approximately 500 Palauan men and women 
serve as volunteers in our military today, out of a population of about 
21,000. Palau is indeed a strong partner who punches well above its 
weight. We are grateful for their sacrifices and dedication to 
promoting peace and fighting terrorism. After reviewing the progress 
achieved by Palau in the first 15 years of the Compact, and with the 
13th anniversary coming upon us, the administration is recommending 
continued assistance, but at lower levels.
  This agreement, reached in 2010, has been before Congress in prior 
years and the Senate Energy and Natural Resources Committee has held 
hearings on the matter. To the best of my knowledge, there is no 
objection within Congress on the policy of continuing to provide 
financial assistance to Palau under the Compact of Free Association. 
The hang-up has been finding a viable offset to pay for that 
assistance. I would note that since 2010 Congress has provided just 
over $13 million in annual discretionary funding to the Government of 
Palau in lieu of the Agreement's enactment--a total of over $90 million 
in that timeframe. At the same time, the administration has failed to 
identify an acceptable offset for a cost that is now just under $150 
million over 10 years.
  For such a steadfast ally, partner, and friend, whose citizens serve 
in our Armed Forces for the protection of our nation, and whose 
government supports the United States' position on critical issues in 
international forums, we should be able to come up with a viable 
funding solution. I call upon the administration to work with Congress 
on this matter, find an offset, and enact the 2010 Agreement between 
the United States and Palau.
  Mr. President, I ask unanimous consent that a letter of support be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                February 22, 2016.
     Hon. Joseph R. Biden, Jr.,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: Enclosed is draft legislation to amend 
     Title I of Public Law 99-658 (100 Stat 3672), regarding the 
     Compact of Free Association between the Government of the 
     United States of America and the Government of Palau 
     (Compact). This legislation would approve and implement the 
     results of the mandated 15-year review of the Compact, as 
     well as the Agreement Between the Government of the United 
     States of America and the Government of the Republic of Palau 
     (Compact Review Agreement), signed on September 3, 2010. We 
     strongly urge this draft bill be introduced, referred 
     appropriately, and passed in Congress at the earliest 
     opportunity.
       The relationship between the United States and Palau, as 
     embodied in the Compact, is grounded in shared history, 
     friendship, and a strong partnership in national security, 
     especially with respect to the Asia-Pacific region. In the 
     Battle of Peleliu, in Palau, more than 1,500 American 
     servicemen lost their lives, and more than 8,000 were 
     wounded, resulting in one of the costliest battles in the 
     Pacific in World War II. After the war, the United States 
     assumed administrative authority over Palau as part of the 
     Trust Territory of the Pacific Islands and in 1994 Palau 
     became a sovereign nation in free association with the United 
     States under the Compact of Free Association. The Compact 
     provides U.S. military forces full authority and 
     responsibility for security and defense matters in or 
     relating to Palau. Conversely, the United States has the 
     extraordinary advantage of being able to deny other nations' 
     military forces access to Palau, an important element of our 
     Pacific strategy for defense of the U.S. homeland.
       In addition to the important historical and security 
     relationship, Palau has consistently demonstrated a 
     commitment to the U.S.-Palau partnership under the Compact. 
     Palauan nationals have served in U.S. coalition missions and 
     participated in U.S. led combat operations. Palauan citizens 
     volunteer in large numbers in the U.S. military. Since 
     September 11, 2001, seven Palauans have lost their lives in 
     combat. At the United Nations, Palau has voted with the 
     United States more than 95 percent of the time, including on 
     key foreign policy issues.
       The Compact has seen the goal of self-governance and 
     democracy in Palau realized. However, to bolster this 
     progress and maintain stability in the region, we must now 
     help to ensure Palau's financial independence. By approving 
     the Compact Review Agreement, the pending legislation would 
     extend U.S. assistance through 2024, helping to meet and 
     achieve this critical goal. Under the agreement, Palau has 
     committed to undertake economic, legislative, financial, and 
     management reforms. Additionally, this agreement assures the 
     United States can withhold economic assistance in the absence 
     of significant further progress in implementing meaningful 
     reforms.
       The Statutory Pay-As-You-Go Act of 2010 requires that the 
     cumulative effects of revenue and direct spending legislation 
     in a congressional session meet a pay-as-you-go (PAYGO) 
     requirement. In total, such legislation should not increase 
     the on-budget deficit; if it does, it would produce a 
     sequestration if it is not fully offset by the end of the 
     congressional session. This draft bill would increase 
     mandatory outlays and the on-budget deficit as shown below:

                                                                                          FISCAL YEARS
                                                                                      [Dollars in millions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        2017          2018          2019          2020          2021          2022          2023          2024          Total
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Deficit Impact....................................................           46            26            20            17            15            14             6             5           149
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       This proposal would increase direct spending, and it is 
     therefore subject to the Statutory PAYGO Act and should be 
     considered in conjunction with all other proposals that are 
     subject to the Act. Approving the results of the Agreement is 
     important to the national security of the United States, 
     stability in the Western Pacific region, our bilateral 
     relationship with Palau, and to the United States' broader 
     strategic interests in the Asia-Pacific region. We stand 
     ready, as always, to provide you with any information and 
     assistance necessary to help secure the passage of this 
     legislation.
           Sincerely,
     Sally Jewell,
       Secretary, Department of the Interior.
     Heather Higginbottom,
       Deputy Secretary for Management and Resources, Department 
     of State.
     Robert O. Work,
       Deputy Secretary, Department of Defense.
                                 ______