1. Office of Insular Affairs and Perspectives on the Pacific 1 UNCLASSIFIED Kristen H.L. Oleyte Senior Policy Advisor to PACOM Senior Policy Advisor to the Assistant Secretary of the Interior for Insular Areas 6 March 2013 This brief is classified: UNCLASSIFIED

2. Mission  Department of the Interior (DOI): To protect and manage America’s natural resources and heritage, uphold our trust relationship with indigenous communities, and supply energy to power our future.  Office of Insular Affairs (OIA) : Administer the U.S. Federal Government’s relationship with U.S. territories  U.S. Virgin Islands  Guam  American Samoa  Commonwealth of the Northern Mariana Islands (CNMI) Administer financial assistance to the Freely Associated States (FAS):  Federated States of Micronesia (FSM)  Republic of the Marshall Islands (RMI)  Republic of Palau 2 UNCLASSIFIED

3. OIA Area of Responsibility 3 UNCLASSIFIED

4. Strategic Importance of the Insular Areas  National Security Interests  Defense assets in insular areas  Strategic location  Guam military build-up  Economic Interests  Proximity to Asian markets  Commercial shipping lanes  Foreign Policy Interests  Pacific Island Forum  Micronesian Challenge 4 UNCLASSIFIED

5. OIA Lines of Effort  Improve Quality of Life  OIA Infrastructure & Technical Assistance  Energy Efficiency and Renewable Energy Initiative  Compact Impact Initiative  Enhance Economic Opportunity  Inaugural Gross Domestic Product (GDP) Estimates  Pacific Business Partnership (PBP)  Promote Efficient and Effective Governance  Interagency Group on Insular Areas (IGIA)  Joint Economic Management Committees 5 UNCLASSIFIED

6. DOI-OIA Rebalance Engagement  Guam Military Realignment  National Environmental Policy Act (NEPA) Activities  Civil Military Coordination Council (CMCC)  Insular Area Health  PACOM Asia Pacific Health Initiative  US Pacific Fleet 2013 Pacific Partnership  Insular Area Energy  DOI-DoD Energy Partnership MOU  Insular Area Resiliency  PACOM Asia Pacific Disaster Risk Reduction and Resilience (ADR3 Network)  CDC Disaster Risk Reduction Workshop 6

7. OIA Perspectives  Insular Area Strategic Importance  Whole of Government and Whole of Society Approach  Promoting Insular Area Resilience - Capacity building - Economic development - Infrastructure - Energy - Food Security - Disaster Preparedness, Response, Recovery, Mitigation - Climate Change

8. Back Up Slides 8 UNCLASSIFIED

9. American Samoa  Economic Base: - Tuna Canneries - Government - (Little tourism)  GDP: $634 million  Per Capita Income (2010): $6,311  U.S. Grants: $172 million  Current Issues: - Economy: Lost 2,000 jobs with Chicken of the Sea tuna cannery closure in 2009 - Energy Renewables & Efficiency: DOI & DOE Interagency Agreement

10. Guam  Economic Base: Tourism spending: - $1.35 billion Military: Total estimated build up spending: - $8.6 billion  U.S. grants: $362 Million  Per Capita Income (2010): $16,549  Best deepwater port in the Western Pacific  Current Issues: - Military build up: 4,700 Marines (and 1,300 dependants) from Okinawa expected - China Visa Waiver program - Energy Renewables & Efficiency: DOI & DOE Interagency Agreement

11. Commonwealth of the Northern Mariana Islands  Economic Base: - Tourism  GDP: $756 million  Per capita income (2010): $9,656  U.S. grants: $113 million  Current Issues: - CNMI Hospital: avoiding suspension of Medicaid certification (DOI and HHS MOU) - Economy: loss of garment industry in 2009 resulted in severe contraction of employment and government revenue - Energy Renewables & Efficiency: DOI & DOE Interagency Agreement

12. Republic of Palau  Economic base: Tourism Fishing and Agriculture $560 million of Compact funds (1994-2007); includes $149 million for construction of Balbedaob Road.  GDP:179.9 million  U.S. Grants: $25 million  Current Issues: - US Negotiated Amended Palau Compact - Need new legislation with Offset

13. Federated States of Micronesia  Economic Base: - Subsistence Farming & Fishing - Long Line Fishing Licenses - Dive Tours  GDP:310 million  U.S. Grants: $121 million  Current Issues: - Improving Compact Sector Grants for Education. Pilot Education Review Board Launched in Chuuk this week. - Preparing for Second Five Year Period Review of the Compact – Due end of FY13 for Compact Period 2009 - 2013

14. Republic of the Marshall Islands  Birth Rate: 33/1,000, among the highest in the world  Major Economic Activities: - Government Services - Tourism  GDP:170 million  U.S. Grants: $71 million  Current Issues: - Consequences of migration to the United States (Compact Impact) - Impact of climate change - Legacy of U.S. military nuclear testing