NUCLEAR CLAIMS TRIBUNAL

REPUBLIC OF THE MARSHALL ISLANDS

STATEMENT OF DETERMINATION

ACTION:    Determination of Initial Payment Level and of 2006 Annual Pro Rata Payment for

Personal Injury Claims.

SUMMARY:    The Nuclear Claims Tribunal determines that the proper and reasonable initial payment level in the coming year to individual claimants receiving compensation awards from injuries to the person under Section 23 of the Nuclear Claims Tribunal Act 1987, as amended, is five (5%) percent.  There will be no pro rata annual payments for personal injury awards in 2006.

Authority for these actions is granted under Section 106(1) and 123(12) of the Act.

EFFECTIVE DATE:   October 1, 2006.

SUPPLEMENTAL INFORMATION:

            At present, the value of the Nuclear Claims Fund is just over $1 million.  Since the inception of the Nuclear Claims Fund under the Section 177 Agreement in 1986, over $300 million has been paid from the Fund to address the consequences of the Nuclear Testing Program.  Of that amount, over $73 million has been paid for personal injury awards made by the Tribunal.  Another $3.9 million, over and above the quarterly distributions from the Fund to the Four Atolls, has been paid in property awards. The unpaid amount of personal injury awards is just over $17.4 million, while unpaid class action property awards are in excess of  $1 billion.  Since October 1 last year, the Tribunal has paid $1,448,600 in personal injury awards, of which $420,000 was for new or upgraded awards.

            As noted in last year's Statement of Determination, a balance of $1 million "will clearly not support payments in even the limited amounts made this year."  With total personal injury awards in excess of $90 million, an annual payment of even one percent this year would amount to just over $900,000 which would effectively exhaust the Fund.  This would force the closure of the Tribunal and foreclose the possibility of any award or payment for future claimants.  In the absence of an annual payment, the Tribunal will continue to function with a significantly reduced budget, allowing it to issue decisions in the pending Utrik and Rongelap claims, complete and administrative scheme to address outstanding property claims, and provide a means to address future personal injuries resulting from the nuclear testing program with at least a minimal level of initial payment for a period of years.

            The recent report of the U.S. Nation Cancer Institute estimated 531 cancers would 

result from exposures to radiation from the testing program in the population present during the testing 

period.  Of those over half were expected to occur after 2003.  The Section 177 Agreement speaks of the desire of the government of the Marshall Islands to provide a mechanism to address claims arising from the nuclear testing program "in perpetuity."  It should be noted that almost 65% of personal injury awards have been paid 91% of their compensation, while another 30% have been paid over 80% of their compensation.  An annual payment this year and consequent closure of the Tribunal would preclude any recognition of legitimate claims of people in the future.  There continues to be need for the Tribunal to adjudicate the claims of the people of the Marshall Islands, which can only be accomplished in the absence of an annual payment this year.

            The Section 177 Agreement likewise provides that the government of the Marshall Islands may request additional consideration from the U.S. Congress if there are changed circumstances which render the terms of the settlement "manifestly inadequate."  The determinations of the Tribunal provide the best indication of such inadequacy and the closure of the Tribunal would cripple the efforts of the Marshall Islands to obtain additional funding under this provision.

            Historically, the Tribunal has addressed annual payment of property awards separately from personal injury awards.  The reasons given in past years for deferring the determination of the level of annual payment of property awards continue to be compelling.  Those include the relative magnitude of property awards in comparison to personal injury awards, and the fact that property awards are so large that any payment would seriously erode the ability of the Tribunal to adjudicate and make payments of personal injury awards or future property awards.

            The inability of the Tribunal to fully pay off existing awards and the continuing flow of new claims and awards continues to evidence the manifest inadequacy of the existing funding provided under the Section 177 Agreement to fully compensate the people of the Marshall Islands for injuries suffered as a result of the Nuclear Testing Program.

            In keeping with the need to reduce expenditures from the Nuclear Claims Fund, initial payments in the coming year will be five (5%) percent.

Dated this 28th day of September 2006.

                      /s/                                                                         /s/            

_____________________________                    ___________________________

            James H. Plasman                                                    Gregory J. Danz

            Chairman                                                                 Member