LUA DEADLINE EXTENSION PRESENTED TO GRMI

UNCLAS MAJURO 000147


E.O. 12958: N/A
TAGS: PREL MARR RM
SUBJECT: LUA DEADLINE EXTENSION PRESENTED TO GRMI

REF: A. STATE 129686

B. MAJURO 0146



1. SUMMARY: The Ambassador met with President Tomeing and his
top advisors upon the President's return from Ebeye. At the
meeting the Ambassador presented the President with DAS Davies'
letter on behalf of President Bush, along with the attached
letter of instruction for handling the disposition of the escrow
account (REF A). Acting as Foreign Minister, the President has
signed and returned the letter of instruction. END SUMMARY


2. President Tomeing stated that his trip to Ebeye had been
primarily to update the landowners on efforts his government had
taken to address their concerns about Kwajalein land rentals,
specifically covered in his letter to President Bush. He also
told the landowners the Government was waiting for a response to
the letter.


3. When presenting DAS Davies' response to Tomeing's letter,
the Ambassador stressed that the extension of the LUA deadline
was a response to President Tomeing's statement that
negotiations with the landowners were ongoing. Furthermore, the
Ambassador noted that the open and cooperative nature of the
relationship between the Embassy and the President's office was
instrumental in reassuring Washington that a signed LUA was
possible. The Ambassador also presented text of a new letter of
instruction for the LUA escrow account. He encouraged and
expedient review, given the impending deadline, in order to
clear up lingering legal questions surrounding the disposition
of the account.


4. President Tomeing and his advisors appeared genuinely
pleased to hear their request for an extension had been granted.
President Tomeing requested a "day or two" to examine the
letter in depth and promised to meet again with the Ambassador
to discuss it before the end of the week. The President and his
advisors also spent several hours examining the letter of
instruction before signing and returning it to Post later in the
day.


5. In closing, the Ambassador noted that recent damage caused
by tidal surges in Majuro (REF B) pointed to a need for
expedient GRMI action on two outstanding diplomatic notes
relating to USAID's disaster response program. Minister in
Assistance Loeak said the notes had been before the Cabinet for
some time, but had not yet been discussed. President Tomeing
promised swift consideration of the notes and that a response
would be forthcoming shortly.

BISHOP