[Public Papers of the Presidents of the United States: William J. Clinton (1994, Book I)]
[July 26, 1994]
[Pages 1315-1316]
[From the U.S. Government Publishing Office www.gpo.gov]



Letter to Congressional Leaders Transmitting Documents on the 
Palau-United States Compact of Free Association
July 26, 1994

Dear Mr. Speaker:  (Dear Mr. President:)  (Dear Mr. Chairman:)
    On November 9, 1993, the voters in Palau approved the Compact of 
Free Association between the United States and Palau, opening the way 
for the Compact to be brought into force 7 years after the passage by 
the Congress of U.S. legislation approving the Compact.
    In giving its approval to the Compact of Free Association, the 
Congress required the transmittal of certain agreements, Palau's 
Economic Development Plan, and a report on that Plan, at least 30 days 
(excluding days on which both Houses of Congress are not in session) 
prior to the effective date of the Compact.
    Therefore, in accordance with section 101 of the Compact of Free 
Association with Palau Act, Public Law 101-219 (December 12, 1989), 
section 101(d)(1)(C) and (2) of the Compact of Free Association Approval 
Act, Public Law 99-658 (November 14, 1986), and section 102(b) of the 
Compact of Free Association Act of 1985, Public Law 99-239 (January 14, 
1986), I am hereby submitting the Economic Development Plan of the 
Republic of Palau, including this report thereon with supporting 
material, copies of certain subsidiary agreements between the

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United States and Palau, and an agreement between Palau and the United 
States establishing October 1, 1994, as the effective date for the 
Compact, provided that all lawsuits in Palau challenging the compact 
have been resolved by that date. A separate letter from the President of 
Palau commenting on the Economic Development Plan also is attached.
    The Congress also required that approval of the Compact be free of 
legal challenge in Palau and that I certify that there are no legal 
impediments to the ability of the United States to carry out fully its 
responsibilities and to exercise its rights under the defense-related 
provisions of the Compact. There is currently a lawsuit challenging the 
Compact in Palau. I will make this final certification once that lawsuit 
is resolved.

Report on the Development Plan

    Under my direction, the Department of the Interior, the Agency for 
International Development, the Department of State, the Department of 
Defense, and other interested agencies, have conducted a review of 
Palau's Economic Development Plan. These agencies have concluded, and I 
so find, that the Plan as submitted, together with the July 15, 1994, 
exchange of letters between Secretary of the Interior Babbitt and 
President Nakamura of Palau establishing a joint working group to 
coordinate efforts under the Compact to protect the unique marine 
resources of Palau, is acceptable. They have recommended that following 
the statutory period for Congressional review provided in section 102(b) 
of Public Law 99-239 (January 14, 1986), and subject to consideration of 
any Congressional comments, the United States will concur with Palau's 
Development Plan. Palau also has agreed to submit subsequent development 
plans at intervals no longer than every 5 years as required by law 
(section 102(b)(1) of Public Law 99-239 (January 14, 1986)).

Effective Date Agreement

    The July 15, 1994, Agreement Regarding the Entry Into Force of the 
Compact of Free Association establishes October 1, 1994, as the 
effective date of the Compact, provided that all legal challenges in 
Palau have been resolved by the date (``provided that the requirements 
of section 101(1) of United States Public Law 101-219 (December 12, 
1989) have been met''). See Senate Report No. 101-189, at 9 (1989). If 
all legal challenges in Palau have not been resolved by that date the 
agreement provides that the effective date shall be the earliest 
possible date thereafter as established by exchange of letters between 
the two governments. There is currently a pending lawsuit in Palau 
challenging implementation of the Compact.

Subsidiary Agreements

    Compact subsidiary agreements were submitted to the Congress in 1986 
prior to approval of the Compact (see section 101(a) of Public Law 99-
658 (November 14, 1986)). Additional agreements concluded since that 
time are submitted with this letter. These are: the Agreement Concerning 
Procedures for the Implementation of United States Economic Assistance, 
Programs and Services Provided in the Compact of Free Association 
Between the Government of the United States and the Government of the 
Republic of Palau, signed December 2, 1987; the Agreement Between the 
Government of the United States and the Government of Palau Regarding 
Mutual Assistance in Law Enforcement Matters, signed December 2, 1987; 
and the Agreement Concerning Special Programs Related to the Entry Into 
Force of the Compact of Free Association Between the Government of the 
United States and the Government of the Republic of Palau, signed May 
26, 1989.

Certification

    I will make such additional certification and report to the Congress 
as required by law prior to the effective date of the Compact in 
accordance with section 101(d)(1)(A) of Public Law 99-658 (November 14, 
1986).
    Sincerely,

                                                      William J. Clinton

Note: Identical letters were sent to Thomas S. Foley, Speaker of the 
House of Representatives; Albert Gore, Jr., President of the Senate; Lee 
H. Hamilton, chairman, House Committee on Foreign Affairs; George 
Miller, chairman, House Committee on Natural Resources; Claiborne Pell, 
chairman, Senate Committee on Foreign Relations; and J. Bennett 
Johnston, chairman, Senate Committee on Energy and Natural Resources.