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Greenland's quest for special status intensifies as the US considers it

U.S. Officials are discussing a plan that would bring Greenland under the sphere of America's influence. This is a similar agreement the United States used to maintain close ties with a number of Pacific Island Nations, according to U.S. Officials and a person familiar with these discussions.

According to the plan under consideration, the Trump Administration would suggest that Greenland's leadership enter into an agreement with the United States called a Compact of Free Association (COFA).

COFA agreements vary according to signatory but the U.S. government provides most essential services. This includes everything from emergency management and military protection to mail delivery. In exchange, U.S. troops can operate freely in COFA nations and the trade between the U.S. and COFA is mostly duty-free.

Donald Trump, who floated the idea to acquire Greenland during his first term, has been even more insistent since he took office in January. He refuses to rule out the possibility of taking the island with force. Denmark, the country that governs Greenland, has strongly rejected the idea.

A COFA would not allow Trump to achieve his goal of making the island, which has 57,000 residents, a part the United States. The sources say that this is not the only Greenland proposal on the table and that it would have to overcome many practical obstacles.

Before Trump's election, it was reported that some advisors had suggested the idea informally. It was not previously disclosed that White House officials had begun discussions about the logistics of such a proposal.

Two sources confirmed that some officials from the National Security Council as well as the National Energy Dominance Council (both of which Trump created) are involved in these talks. One of the sources said that the National Economic Council was also involved.

COFA agreements were previously signed with independent countries. Greenland, however, would need to be separated from Denmark in order for this plan to move forward. Greenlanders may be interested in independence but they are also not keen on being part of the U.S.

Markus Thomi is one of the people involved in these discussions, according to the two sources. He is the acting senior director of the National Security Council Western Hemisphere Section. One of the sources stated that David Copley is the key mining official for the NEDC.

The White House, the Danish Embassy and Greenland's Washington representative office did not respond to our request for a comment.

Interior Department also didn't respond. The Office of Insular Affairs of the Interior Department plays a major role in implementing COFA agreements.

COFA DEALS TROUBLES

The existing COFA agreements between Washington and Palau, Marshall Islands and Micronesia is seen as crucial by all political parties in the United States to counter China's increasing influence in Asia Pacific.

Yet, in the past, these agreements have run into problems.

Republican lawmakers have sometimes opposed budget elements allocated to fund COFA agreement, causing deep frustration in countries that depend on the funds.

A COFA does not guarantee that the United States will not use influence to try and influence a country.

Reports in April indicated that Chinese nationals were able to establish close relationships with senior political figures on Palau. This alarming U.S. government officials.

One senior European official stated that the White House has not approached the Danish government about the COFA plan and they have had no substantive discussions about Greenland’s future status. Danish officials publicly rejected the notion of the U.S. buying Greenland and insisted that Greenlanders should determine their own future.

Officials in the administration claim that the island is vital to the U.S. because of its mineral deposits, which have high-tech and other military applications but are not tapped due to labor shortages and lack of infrastructure.

A senior administration official said that the U.S. is helping Greenland to diversify its economy, and achieve greater economic independence with Denmark. Officials from the U.S. Development Finance Corporation and Export-Import Bank could both play a part in this process.

According to the official, the Tanbreez project, where rare earths will be extracted and processed on the island, but then shipped back to the U.S. for processing, is a bright spot in Greenland's relations. New York's Critical Metals Corp has a stake of 42% in the project. However, that stake may increase as part a complex deal expected to be finalized later this year.

The official stated that a COFA could be "an elegant way to address certain concerns we have in regards to Greenland's security," but made no other comments on the possible existence of such an agreement. Reporting by Gram Slattery and Valerie Volcovici; Editing Don Durfee, Alistair Bell

(source: Reuters)