Statements on Introduced Bills and Joint Resolutions

Floor Speech

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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 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.

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 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Deficit Impact.................................................... 46 26 20 17 15 14 6 5 149 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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. ______

By Mr. LEAHY (for himself, Ms. Murkowski, Mr. Schumer, Mr. Johnson, Ms. Heitkamp, Mrs. Shaheen, Ms. Cantwell, Mrs. Murray, and Mrs. Gillibrand):

S. 2612. A bill to ensure United States jurisdiction over offenses committed by United States personnel stationed in Canada in furtherance of border security initiatives; to the Committee on the Judiciary.

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