PALIKIR, POHNPEI: December 10, 1998 - The Joint Committee on Compact Economic Negotiations (JCN) held its fifth regular meeting November 30th through December 3rd, to discuss the current status of preparations for the renegotiations with the United States on the expiring provisions of the Compact of Free Association. The JCN Secretariat reported to the Committee regarding its progress in developing a framework for the economic proposal to be presented to the United States.

The Committee also heard reports from Washington-based team members, on the current political environment in the United States and how the FSM fits into current U.S. military thinking. In addition, the Committee was briefed on current economic conditions in the FSM by a member of the Economic Management and Policy Advisory Team (EMPAT), which is supported by Japan, the U.S. and the Asian Development Bank (ADB).

Members of the FSM Congress who are also members of the JCN reported that Congress had just empowered the JCN to take on responsibility to renegotiate the expiring provisions of the Compact. Initially the JCN was only mandated to carry out preparations for the negotiations.

The JCN recently hired Dr. Glenn E. Skaggs as a defense and security advisor. Dr. Skaggs, who recently retired from the U.S. Department of Defense, has thirty-seven years of experience in defense and security analysis.

The JCN will be meeting again in late March 1999 to review an updated version of the economic proposal, which will incorporate the suggestions and guidance coming out of this meeting.