Thank you, Mr. Chairman. It is with great pleasure that I welcome our witnesses on the first panel, Colonel Al Short, Director of the Office of Compact Negotiations for the Department of State, Mr. David Cohen, Deputy Assistant Secretary for Insular Affairs for the Department of the Interior, and Ms. Susan Westin, from the General Accounting Office. I also welcome our witnesses who traveled from the Federated States of Micronesia, Honorable Sebastian Anefal, Secretary, Department of Economic Affairs, and Honorable Gerald Zackios, Minister of Foreign Affairs.
The last hearing held on this issue by this Committee was in December 2001. I remember it clearly, because I was forced to leave my office due to anthrax contamination in the Hart Senate Office building. Given the circumstances, it seemed difficult to hold a hearing, but Chairman Bingaman agreed that a hearing was necessary, given the importance of this issue. At that time I stressed the importance of Congress receiving, in a timely manner, the proposed legislation codifying the negotiated agreements pertaining to the Compact of Free Association between the United States and the Republic of the Marshall Islands (RMI) and the Federated States of Micronesia (FSM).
For the past three years, we have been focused on the September 30, 2003, date of the expiration of Title II of the Compact. While I am disappointed that it took until July 2003 for us to receive the legislative proposal, I am glad that it is finally here, and congratulate Minister Zackios, Secretary Anefal, and Colonel Short for the completion of what has been a challenging negotiation process.
As many of you know, the Pacific islands hold a special place in my heart, not only because I come from Hawaii, but because I spent time in what is now the RMI and FSM as a soldier during World War II and as a missionary after the war. I have longstanding relationships with the people of these nations, and care deeply about U.S. policies affecting the RMI and FSM. While the Compact has been successful in guiding the transition of the RMI and FSM from U.N. Trust Territories to independent nations, and in preserving the national security interests of the U.S. , RMI, and FSM, it has not been as successful in the area of economic development and economic self-sufficiency. As I'm sure we'll hear from our witnesses this afternoon, provisions have been included in this legislative proposal to address some of the shortcomings in the first Compact with respect to granting procedures and accountability, both on the part of the United States, as well as the RMI and FSM.
I must emphasize, Mr. Chairman, the importance of improving the health and education infrastructure in the RMI and FSM. We must support local efforts to improve the medical facilities and schools in these nations. I believe it is imperative to continue eligibility for citizens of the Freely Associated States (FAS citizens) in federal programs including Head Start, Pell Grants, Individuals with Disabilities Education Act (IDEA), No Child Left Behind Act, bilingual education and adult and vocational education. We also must examine eligibility for medical programs to address the prevalence of diabetes and cancer in FAS. I cannot stress the importance of these programs to the U.S. investment in these islands and to our commitment to helping these nations to be economically self-sufficient.
As my colleagues may be aware, the Compact has had a significant impact on the State of Hawaii since 1986. The original Compact authorized funds to offset the costs of FAS citizens in the State of Hawaii. We did not, however, begin receiving Compact impact reimbursements until fiscal year 2002, and even then, it was minimal compared to the amount the State of Hawaii had expended over the past fifteen years. During a briefing in March 2003, the Bush Administration was unable to tell me how it reached the $15 million figure, which is the amount of funding to be distributed among the State of Hawaii, the Commonwealth of the Northern Mariana Islands, American Samoa, and Guam for Compact impact costs. I have been working on this issue for the past two years to find a way to more appropriately reimburse the jurisdictions who have absorbed costs associated with FAS citizens in their jurisdiction. I have been working with Hawaii's Governor, our Attorney General, and the state agencies who are bearing the majority of the costs, including the Hawaii Departments of Education, Health, and Human Services.
We also must address the medical debt owed to Hawaii's hospitals and medical providers. The Compact authorizes funding for the payment of medical referral debt prior to 1985. Given the significant amount of debt owed to Hawaii's hospitals and medical providers, I plan to propose a similar provision which will authorize funding to be provided to the FSM and RMI to repay medical referral debts incurred prior to 2003.
I look forward to thoroughly reviewing this proposal. Our first obligation is to ensure that this legislation is consistent with the intent of the Compact of Free Association. We must ensure that it contains sufficient funding and support to meet the goal of assisting the RMI and FSM to achieve economic self-sufficiency in 20 years. We must also ensure, however, that the jurisdictions impacted by the Compact are appropriately reimbursed. I look forward to working with all of my colleagues and to the testimony of today's witnesses.
