Memorandum on Determination on the Eligibility of the Federated State of Micronesia To Be Furnished Defense Articles and Services Under the Foreign Assistance Act and the Arms Export Control Act

Presidential Determination No. 93-8

Memorandum for the Secretary of State

Pursuant to the authority vested in me by Section 503(a) of the Foreign Assistance Act of 1961, as amended, 22 U.S.C. 2311(a) and Section 3(a)(1) of the Arms Export Control Act, 22 U.S.C. 2753(a)(1), I hereby find that the furnishing, sale, and/or lease of defense articles and services to the Government of the Federated States of Micronesia will strengthen the security of the United States and promote world peace.

You are directed to report this finding to Congress and to publish it in the Federal Register.

GEORGE BUSH

THE WHITE HOUSE,

Washington, January 6, 1993.

Justification for Presidential Determination of Eligibility of the Federated States of Micronesia To Be Furnished Defense Articles and Services Under the Foreign Assistance Act of 1961 and the Arms Export Control Act

Section 503 of the Foreign Assistance Act of 1961 and Section 3(a)(1) of the Arms Export Control Act (the Act) require, as a condition of eligibility to acquire defense articles and services from the United States, that the President find that the furnishings of such articles and services to the country concerned will "strengthen the security of the United States and promote world peace."

The Federated States of Micronesia (FSM) occupies a strategic geographic position in the South Pacific. It is a democracy, and has been linked closely to the United States since the end of World War II. From 1945 to 1986, the FSM was a U.N. Trust Territory administered by the United States. Since 1986, the FSM and the United States have been bound by a Compact of Free Association (the Compact) by which the United States assumes responsibility for defense of the FSM.

Little provision was made in the Compact for the transfer of military equipment and services to the FSM because it was felt that the FSM would not require assistance of this kind. However, as the FSM attains political and economic maturity, it is developing an increasing need for military assistance.

Maritime surveillance and the oversight of its fishing areas will consume an increasing percentage of the FSM's budget. This quasi-military activity must be borne largely by the FSM alone, given practical limitations on the U.S. military's ability to divert assets to support such operations. With U.S. concurrence, the FSM already has established a modest maritime surveillance capability using equipment and training donated by the Government of Australia. The FSM's interest in acquiring additional military equipment (vessels, weaponry, ammunition, communications gear, etc.) as well as expert training in maritime surveillance skills will grow over time. Absent ability on the part of the United States to supply appropriate equipment and services, the FSM will turn elsewhere -- a development which would complicate our defense arrangements with FSM.

Providing defense articles and services to the FSM will further our long-term goals of promoting stability in the South Pacific, will strengthen our ties to the FSM, and thereby will strengthen the security of the United States and promote world peace.