HONOLULU AND WASHINGTON, D.C., May 8, 2002 –The Kwajalein Negotiation Commission today announced that it had hired Johnston & Associates, LLC, a Washington, D.C. based governmental relations firm, to represent its interests in the ongoing negotiations regarding the Compact of Free Association between the Republic of the Marshall Islands and the United States.

Johnston & Associates, LLC, will provide strategic governmental relations counseling to the Kwajalein Negotiation Commission (“KNC”) before the United States Government, including the Department of Defense, Department of State, Department of Interior and the Department of Energy, as well as Congress, in its negotiations and discussions with the U.S. Government as it relates to the compact between the United States and the RMI. Terms of the agreement were not disclosed.

The Government of the United States and the national government of the Republic of the Marshall Islands are currently in negotiations concerning the Compact of Free Association between the two countries. Title II of the compact contains expiring provisions regarding economic assistance payments from the U.S. to the RMI. The latest offer from the U.S., as well as the most recent proposal from the RMI, fail to make a proper accounting for access to Kwajalein Island by the U.S. military. It is the objective of the KNC to ensure that the negotiations over Title II of the Compact also include discussions regarding the future of the Ronald Reagan Missile Testing Base on Kwajalein Atoll and the proper compensation of Kwajalein Atoll Landowners for use of that base beyond the term presently contained in Title III of the Compact.

We are delighted to have retained a world-class legislative affairs team in the U.S. to assist the KNC in its delicate discussions with the U.S. Government and the RMI regarding access to Kwajalein,” said Senator Christopher Loeak, Chairman of the KNC. “Senator Johnston was one of the most highly respected and influential political leaders in Washington during his 24 years in the U.S. Senate. During his career, as Chairman of the Energy and Natural Resources Committee he was responsible for the passage of legislation that enacted the Compact of Free Association between our two countries. We are pleased that he has agreed to assist us in pointing out the fundamental unfairness of renewal or amendment of Title II of the Compact without discussing a long range compensation plan for access to Kwajalein that will ensure the continued use of the missile base over the next 50 years.”

The opportunity to represent the KNC is an exciting one for us,” said Senator Johnston, president and CEO of Johnston & Associates. “Although the Military Use and Operating Rights Agreement between the United States and the RMI is in force and will not expire for another 15 years, it is my opinion that the issue of long-term access to Kwajalein is integral to the discussions over Title II of the Compact and cannot be segregated or left for future discussion. The opportunity for the U.S. to secure long-term access to Kwajalein, under terms and conditions fair and equitable to the Kwajalein landowners, will enhance national security and is in the interests of the United States.”

About the KNC

The KNC was formed in 2001 by the landowners of Kwajalein Island in order to represent the interests of the landowners in negotiations over the Compact. The landowners, in an unprecedented display of union and agreement, are concerned that the ongoing discussions do not properly or fairly account for the value that access to Kwajalein provides. The organization, which is funded by voluntary Landowner contributions, includes among its members the four Paramount Traditional Leaders of Kwajalein Atoll, Iroojlaplap Imata Kabua, Iroojlaplap Anjua Loeak, Lerooj Neimata N. Kabua, and Lerooj Likwor L. Litokwa, an unprecedented alliance of the most powerful traditional leaders of the South, Central and Western Marshall Islands.

About Johnston & Associates, LLC

Since 1997, Johnston & Associates has provided strategic public and legislative affairs consultation and representation to a broad range of some of the world’s largest and most progressive private and public entities.

Senator Johnston began his political career in the Louisiana Legislature, where he spent eight years. He then served 24 years in the United States Senate. As a member of the Senate Committee on Energy and Natural Resources from its creation, and as its Chairman and Ranking Member for much of that time, Senator Johnston was either directly or indirectly responsible for all energy legislation considered by the Congress between 1973 and 1996. He led the effort to pass the first electricity restructuring legislation as part of the Energy Policy Act of 1992; which also contained extensive provisions regarding natural gas and overhauled the nuclear licensing provisions of federal law.

Senator Johnston was the principal sponsor of natural gas deregulation as well as the Royalty Relief Act. He was the floor manager of hundreds of bills, including California Central Valley water reform and Tongass timber reform. In addition to energy policy, his position on this committee provided Senator Johnston with an oversight role on the operations of federal lands and the territories of the United States, including eh 1983 Compact of Free Association between the United States and the Republic of the Marshall Islands. In January 2001, President George W. Bush offered him the role of Secretary of Energy, a position Johnston declined.

Led by Senator J. Bennett Johnston, along with his partners Proctor Jones and Hunter Johnston, Johnston & Associates has extensive political and governmental experience and substantial insight into how government really works. First hand experience enables the company to develop comprehensive strategies and provide timely and effective communication with decision-makers to achieve its clients’ objectives. Johnston & Associates communicates directly with the political leadership and legislative decision-makers involved with the issues that affect their clients. Among these clients are: Bechtel Enterprises, Boeing, Edison International, Exelon Energy, Foothills Pipe Lines, Inc., General Motors, Integrated Environmental Technologies, LLC, National Institute for Environmental Renewal, Navajo Nation, New Orleans International Airport, Northern States Power, Northrop Grumman, Nuclear Energy Institute, Tulane University, U.S. Filter Operating Services, University of Chicago and University of Rochester.

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Contact:
Hunter Johnston
Johnston & Associates, LLC
202-737-0683
202-737-0693 fax