Government of the Federated States of Micronesia

FSM Leadership convene on amended Compact

PALIKIR, Pohnpei (FSM Information Service): March 27, 2003 – The Seventh Economic Policy Implementation Council (EPIC) convened on March 24 2003, in Palikir, for an intensive three-day review of the amended Compact of Free Association with the United States.

President Leo A. Falcam, who opened the gathering of Leadership, stated that the 7th EPIC would focus almost exclusively on “matters relating to the renewal of the economic assistance provisions under the Compact of Free Association” between the Federated States of Micronesia and the US.

The President said the forum of EPIC is the ideal institution in which to raise issues of policy relevance, therefore the Leadership was urged to be “very clear in our guidance to the JCN [Joint Committee on Compact Economic Negotiations].”

The EPIC is comprised the national leadership: the President, the Vice President, the Speaker of Congress and the Governors and Speakers of the four States. Created in June 2000, the Council is mandated to move forward the FSM economic reform agenda, by focusing on key economic policies that will affect the immediate and future economic growth prospect of the nation.

President Falcam challenged the EPIC to effectively coordinate their efforts and install policy recommendations that would allow three sets of key players [1. Legislative Bodies, 2. Technical Staff, and, 3. Public at-large] in the nation to “carry out their vital roles between now and October 1st with a sense of clarity and with a sense of national purpose.”

The following three-day agenda was a comprehensive review of the Compact and the few remaining snags on its way to the United States Congress:

  1. Update on Compact Negotiations;
  2. Update on Bi-lateral Immigration Issue;
  3. FSM Strategic Development Plan: Briefing and Preparation;
  4. FSM Infrastructure Development Plan: Briefing and Preparation;
  5. Compact II – Transition and Fiscal adjustments;
  6. Review of Internal Budget and Finance Procedures;
  7. Review of proposed FSM JEMCO;
  8. Trust Fund mobilization;
  9. Compact II issues for FY2004;
  10. Distribution Formula – Decision.