	Strategic Significance of Guam for Defense Buildup

Guam is the westernmost U.S. territory long valued as strategically significant to U.S. forward deployments in the Western Pacific. The defense buildup on Guam has been moderate. With the U.S. military's drawdown from Afghanistan and Iraq, the U.S. defense strategy of January 2012 declared a "rebalancing" toward a strengthened presence in the Pacific. Soon after, on February 17, 2009, Secretary of State Hillary Clinton visited Tokyo and signed the bilateral "Agreement Between the Government of the United States of America and the Government of Japan Concerning the Implementation of the Relocation of the III Marine Expeditionary Force Personnel and Their Dependents From Okinawa to Guam" that reaffirmed the "Roadmap" of May 1, 2006. Futenma Replacement Facility (FRF) . The two sides agreed to "adjust" the Realignment Roadmap of 2006 and separate the move of marines from the plan for the FRF, in order to make progress separately. The Joint Statement provided more specific numbers for the relocation of marines: out of about 9,000 marines to be relocated from Okinawa, about 5,000 marines would move to Guam, "when appropriate facilities are available to receive them." At a hearing of the House Armed Services Subcommittee on Readiness on August 1, 2012, Defense Department officials acknowledged that they had no timeline for the distributed laydown but called for starting the move of marines to Guam, partly to shore up political support in Japan in accordance with the Joint Statement and to boost U.S. credibility in the "rebalancing" strategy. However, the U.S.-Japan Joint Statement of the Security Consultative Committee in October 2013 pointed to a later relocation from Okinawa to Guam that will start in the first half of the 2020s. Obama and Abe issued a U.S.-Japan Joint Statement, which reaffirmed that "the United States and Japan are also making sustained progress towards realizing a geographically distributed, operationally resilient, and politically sustainable U.S. force posture in the Asia Pacific, including the development of Guam as a strategic hub." Budgets

Despite Japan's dispute over the FRF in Okinawa, Japan has allocated funds in the defense budgets for the Marines' relocation and buildup on Guam. Relatedly, under President Obama, the United States has paid greater attention to Southeast Asia. There has been a question about whether North Korea deployed this IRBM. As discussed above, the U.S.-Japan Joint Statement of April 2012 revised the cost of the Marines' move to $8.6 billion. The Master Plan for Guam (dated July 2014), as cited above, estimated that the total cost to complete 124 projects through FY2028 would be about $8.7 billion (in FY2012 dollars). Subsequently, trying to move forward, Senators Levin, McCain, and Webb called in May 2011 for a re-examination of plans to restructure military forces in South Korea, Japan, and Guam. Washington and Beijing have long differed over China's threats to use the People's Liberation Army (PLA) against Taiwan. "Rebalance" and Engagement with China. To blunt charges that Guam's buildup targeted China, PACOM's Commander, Admiral Fallon, invited PLA observers to the U.S. "Valiant Shield" exercise that brought three aircraft carriers to waters off Guam in June 2006. The Members urged the National Security Advisor to lead a review of the strategy on the Asia-Pacific. 4495 , the Asia-Pacific Region Priority Act. 109-286 ) on the Military Construction and Veteran Affairs Appropriations Act, which expressed concerns about a construction program on Guam estimated to cost $10.3 billion (with Japan paying 60%) and expectations of a master plan for Guam from the Defense Secretary by December 29, 2006. As part of the realignment of the Global Defense Posture, he requested $378 million to start construction in Guam to support the relocation of 8,000 marines from Japan in order to strengthen the U.S.-Japan alliance. Section 2832 stipulates that none of the authorized funds and none of the amounts provided by Japan for construction activities on land under the jurisdiction of the Department of Defense may be obligated to implement the realignment of Marine Corps forces from Okinawa to Guam or Hawaii until: (1) the PACOM Commander provides an assessment of the strategic and logistical resources needed to ensure the distributed lay-down of the Marine Corps meets the contingency operations plans; (2) the Secretary of Defense submits master plans for the construction of facilities and infrastructure to execute the lay-down, including a description of the cost and schedule; (3) the Secretary of the Navy submits a plan for proposed investments and schedules to restore facilities and infrastructure at Marine Corps Air Station Futenma; and (4) a plan coordinated by pertinent Federal agencies describing work, costs, and a schedule for completion of construction, improvements, and repairs to the non-military utilities, facilities, and infrastructure, if any, on Guam affected by the realignment of forces. 4435 (McKeon), the NDAA for FY2015 . H.R. On December 2, the House and Senate Armed Services Committees agreed on legislation for the FY2015 NDAA (based on H.R. 113-66 , thus removing the restrictions on the use of funds of the United States and Japan to implement the marines' realignment to Guam. H.R. 3979 became P.L. 113-291 on December 19. The 113 th Congress resolved an overall issue for progress in Guam's buildup.
Since 2000, the U.S. military has been building up forward-deployed forces on the westernmost U.S. territory of Guam (west of Hawaii) to increase U.S. operational presence, deterrence, and power projection for potential responses to crises, disasters, or other contingencies to support Japan, Republic of Korea (ROK), the Philippines, Taiwan, or others in Asia. Since 2006, Valiant Shield exercises based at Guam have boosted U.S. military readiness for joint operations in the Pacific. The defense buildup on Guam has been moderate. China has concerns, suspecting Guam's buildup to be directed against China. There has been concern that China and North Korea could target Guam with missiles. China's People's Liberation Army (PLA) Navy has increased activities in waters around Guam. Still, Guam's role expanded in engaging with the PLA.
In 2006, the United States and Japan had agreed on a Realignment Roadmap to strengthen their alliance, including a buildup on Guam to cost $10.3 billion, with Japan contributing 60%. Goals were to start the related construction on Guam by 2010 and to complete relocation of about 8,000 marines from Okinawa to Guam by 2014. In Tokyo on February 17, 2009, the Secretary of State signed a U.S.-Japan agreement on the relocation of the III Marine Expeditionary Force personnel from Okinawa to Guam that reaffirmed the "Roadmap" of May 1, 2006. However, the Marines' relocation will not occur by 2014 and will be more geographically distributed. Opposition on Okinawa to the U.S.-Japan plan for a Futenma Replacement Facility (FRF) to replace the Marine Corps Air Station Futenma brought implications for the Marines' move from Okinawa to Guam. Despite the dispute over the FRF, Japan has budgeted for its contributions to the Marines' move.
By 2011, some Members urged attention to concerns that included Japan's impasse, expanded costs, and the delay in the realignment even as a strong U.S. military presence and readiness remain critical in the Asia-Pacific. On May 11, 2011, Senators Carl Levin, John McCain, and Jim Webb called for a review of plans to restructure military forces in Japan, ROK, and Guam, in order to make progress. President Obama issued in January 2012 the defense guidance for the strategy of "rebalancing" diplomatic, defense, and economic priorities more to the Asia-Pacific. This "rebalance" further raised Guam's profile as a "strategic hub." China has tried to raise doubts about the U.S. rebalance. In February 2012, the United States and Japan agreed to adjust the Roadmap and separate the move of marines from the plan for the FRF, in order to make progress separately. A U.S.-Japan Joint Statement of 2012 specified that out of about 9,000 marines to be relocated from Okinawa, about 5,000 marines would move to Guam. Out of the new estimated cost of $8.6 billion, Japan would contribute $3.1 billion. A Joint Statement of 2013 pointed to a later relocation of marines to Guam that will start in the first half of the 2020s.
In April 2014, President Obama issued a U.S.-Japan Joint Statement, reaffirming that "the United States and Japan are also making sustained progress towards realizing a geographically distributed, operationally resilient, and politically sustainable U.S. force posture in the Asia Pacific, including the development of Guam as a strategic hub." Progress includes a draft environmental study (April 2014), a final study (expected in 2015), and a Master Plan for Guam (July 2014). The Master Plan estimated total costs of $8.7 billion. Using this amount as the cap on costs (allowing for inflation), on December 2, the House and Senate Armed Services Committees agreed on the FY2015 National Defense Authorization Act (NDAA) that resolved an overall issue by removing restrictions on the use of funds of the United States and Japan to implement the realignment of marines to Guam. Legislation includes H.R. 4495 (Forbes); and FY2015 NDAA, H.R. 4435 (McKeon), S. 2410 (Levin), and H.R. 3979, which became P.L. 113-291 on December 19. Updated through the 113th Congress, this CRS Report discusses major defense developments and policy issues.