In a letter to Yap Governor Itimai, Simina acknowledges a “possible setback” on the Yap defense project.

What happened

Simina’s letter came after Admiral Paparo rejected the FSM’s $1.3 billion compensation demand and said the US would look at other locations. The analysis piece that reported it says the letter left the door open to a way forward.

Why it matters

The Yap defense site was the main point of friction between the FSM and the US in 2026.