Statement of Administration Policy: H.J. Res. 597 - Implementation of the Palau Compact of Free Association

(House)
(deLugo (D) Virgin Islands arid 19 others)

The Administration supports House passage of H.J. Res. 597, but will work in the Senate to modify objectionable provisions of the bill concerning the liquidation of debt related to a Palau power plant and purporting to require the President to negotiate new agreements with Palau. The Administration welcomes action by the House of Representatives to approve legislation authorizing entry into force of the Compact of Free Association between the United States and Palau, and continues to believe that the earliest possible enactment of such legislation is the best means of fulfilling our responsibility to promote self-government in Palau.

The Administration is concerned, however, that H.J. Res. 597 would violate economic and political relationships defined in the negotiated Compact. We deem it essential that objectionable provisions and limitations in the compromise relating to Palau's use of Compact funds to liquidate its power plant debt be revised satisfactorily. On this matter, the Administration opposes any Federal loan, guarantee, or other subsidization of the debt.

In addition, because this legislation would require certain agreements to be negotiated before the Palau Compact could take effect, there is no need for language in certain sections of the bill purporting to direct the President to negotiate such agreements. Such language would infringe upon the President's plenary authority to conduct foreign relations. Accordingly, the Administration will seek amendments making these provisions discretionary.

The Administration believes these issues can be resolved during reconciliation of House and Senate versions of this legislation, and consequently supports House passage of H.J. Res. 597.