Kwaj - Land Lease Disputes

Land Lease Disputes

Under the constitution of the Republic of the Marshall Islands the government can only own land under limited circumstances. Practically, all land is private and inherited through one's matriline and clan. Since the United States began leasing land, the issue of proper land payments has been a major issue of contention for landowners which continues today. "Landowners" here refers to the consortium of irooj (chiefs), alaps (clan heads) and rijerbal (workers) who have land rights to the places used for military purposes by the United States. In the case of Kwajalein Atoll in particular, a "senior rijerbal" is also assigned a role to represent families who have claims to land as "workers" of that location.

Unclear and insufficient in the opinion of these landowners, the original lease arrangements for Kwajalein Atoll with the U.S. were finally negotiated only after the landowners and their supporters demonstrated in the early 1980s with a peaceful protest called "Operation Homecoming," in which Islanders re-inhabited their land at Kwajalein, Roi-Namur, and other restricted sites in the atoll. Although Operation Homecoming did not achieve the level of recognition for all people with land title at Kwajalein, nor an amount of compensation that truly remunerated these families for the natural resources and lands they had lost through displacement, the resulting agreements at least set a precedent for future dealings with the United States government. One of these early agreements was the first official Military Use and Operating Rights Agreement (MUORA) between the United States Army and Government of the RMI, which was linked to the Status of Forces Agreement (SOFA) that was written into the larger Compact of Free Association with the United States. Article 3 of the MUORA obligated the RMI to lease specific sites from their owners through a Land Use Agreement (LUA) and then sub-lease them to the United States. Effectively, this rendered the land negotiations for use of Kwajalein Atoll a "domestic issue" between the national Marshallese government in Majuro and local "landowners," even though Kwajalein, where the local Marshallese population deals on a daily basis with American military activity, is a considerable distance from Majuro. Many Kwajalein Atoll residents have complained in the past that Majuro is out of touch with the realities of Kwajalein Marshallese, and downplays their suffering while profiting from the income provided by the testing site.

The first MUORA guaranteed total payments of roughly USD $11 million to the landowners through the year 2016, the majority of which went, via the provisions of the LUA to the irooj (chiefs), who had the largest stake in the land. Some American and Marshallese observers claimed that these land payments were "misused." However, the recipients of these funds strongly maintain that these have always been "rental" payments (like a tenant pays to a landlord) that landowners could use at their own discretion, separate from whatever funds the U.S. earmarked to help develop or improve Kwajalein Atoll, which were funneled into the now-defunct Kwajalein Atoll Development Authority (KADA.)

In advance of its expiration in 2016, this LUA was renegotiated in 2003 as part of the Compact of Free Association, with the U.S. agreeing to pay the landowners (via the Republic of the Marshall Islands) $15 million a year, adjusted for inflation. In exchange for these payments, the Compact stipulated a new MUORA that gave America the option to use Kwajalein through 2066, renewable through 2086. The landowners, affiliated under the Kwajalein Negotiations Committee (KNC), were very unhappy with the proposed LUA, since they believed they should have been receiving at least double that amount in funds, and that more importantly the LUA did nothing to provide for Marshall Islanders' welfare, health care, safety, and rapidly increasing population on Ebeye. By their independent land appraisals and calculations, the KNC had already determined that the minimum acceptable compensation they should receive for Kwajalein lands was at least $19.1 million annually, adjusted for inflation. The landowners also claimed that there were many other terms by which they wished the U.S. would abide should the lease be extended, including providing better support and infrastructure to Ebeye, improving healthcare and education, guaranteeing that the missile testing was not creating environmental hazards, and providing a comprehensive life and property insurance policy. Despite a consensus among the landowners to refuse to allow the Compact to be signed with this inadequate LUA proposed by the U.S., the new Compact (and the MUORA, by extension) was finalized by officials of the RMI National government and went into effect in 2003.

Stating that they had not been consulted about this agreement, the landowners went on to protest this agreement, and mounted an organized boycott of the new LUA. Although the new Compact and its component MUORA was ratified in 2003, they have since held out and refused to sign the LUA of 2003, insisting, through Kwajalein Atoll elected representatives, that either a new LUA should be drafted that considers their needs or the U.S. will have to leave Kwajalein when the active LUA (which began in the 1980s) expires in 2016.

The U.S., however, considers the Compact to be an "internationally binding" agreement that has been concluded, and it thus pays an annual $15 million to the landowners, as agreed provisionally in the MUORA laid out in the 2003 Compact renegotiation; however, as this new LUA has not been signed, the difference of roughly $4 million has been going into an escrow account. The Compact stated that if the Republic of the Marshall Islands and the landowners did not reach an agreement about land payments by the end of 2008, these funds in escrow would be returned to the U.S. Treasury. Referring to this incentive to reach an agreement, then-Senator Tony deBrum stated that it would be "insane" for the Marshallese people to put up with another 70 years of lack of access.