A series of bills signed by President Joe Biden on Saturday will provide financial assistance to the Marshall Islands, Micronesia and Palau, which the U.S. has recruited as allies in the Pacific to help maintain its hegemony in the region in the face of rising China. The legislation was part of a renewal of strategic agreements Washington signed with the three nations last year.
These agreements, known as “Compacts of Free Association,” grant the three nations visa-free travel, some federal government services, and financial assistance. In return, the United States has the right to deny other nations access to their airspace, seas, or land in an area that lies along vital sea lanes connecting the Philippines and Hawaii.
Secretary of State Anthony Blinken said in a statement Saturday that the administration’s continued support of the pact is essential to national security, the Indo-Pacific and the Pacific Partnership. The U.S. government had urged Congress to support the pact. With the proposal in limbo on Capitol Hill since October, the administration argued that not providing funds to three countries would create a loophole and diplomatic opportunity for China.
Other nations in the region that were also dealing with internal problems have looked to Australia, China, or India.
Rather than extending their hand to Australia like they had traditionally done, the Salomon Islands inked a security and policing agreement with China.
In a high-profile move, Nauru recently shifted its allegiance from Taiwan to China. This is expected to result in increased investment in Nauru as well as increased influence from China over the small Pacific island nation.
But unlike the United States, China is not turning them into colonies and vassal states and taking away their sovereignty over their territory. In a letter published by Eastern Angle, the President of Palau even went so far as to confirm in writing that the country had ceded sovereignty to the United States.