Trump Administration Considers Payments to Encourage Greenland's U.S. Bid

U.S. Strategy for Greenland Acquisition

By Gram Slattery

Proposed Payments to Greenlanders

Jan 8 (Reuters) - U.S. officials have discussed sending lump sum payments to Greenlanders as part of a bid to convince them to secede from Denmark and potentially join the United States, according to four sources familiar with the matter.

International Reactions and Implications

While the exact dollar figure and logistics of any payment are unclear, U.S. officials, including White House aides, have discussed figures ranging from $10,000 to $100,000 per person, said two of the sources, who requested anonymity to discuss internal deliberations.

Potential Agreements and Independence Concerns

The idea of directly paying residents of Greenland, an overseas territory of Denmark, offers one explanation of how the U.S. might attempt to "buy" the island of 57,000 people, despite authorities' insistence in Copenhagen and Nuuk that Greenland is not for sale. 

The tactic is among various plans being discussed by the White House for acquiring Greenland, including potential use of the U.S. military. But it risks coming off as overly transactional and even degrading to a population that has long debated its own independence and its economic dependence on Denmark.

"Enough is enough ... No more fantasies about annexation," Greenland's Prime Minister Jens-Frederik Nielsen wrote in a Facebook post on Sunday after U.S. President Donald Trump again told reporters the U.S. needed to acquire the island. 

EUROPEAN LEADERS SAY DECISION FOR GREENLAND, DENMARK

Leaders in Copenhagen and throughout Europe have reacted to comments by Trump and other White House officials asserting their right to Greenland in recent days with disdain, particularly given that the U.S. and Denmark are NATO allies bound by a mutual defense agreement.

On Tuesday, France, Germany, Italy, Poland, Spain, Britain and Denmark issued a joint statement, saying only Greenland and Denmark can decide matters regarding their relations.

Asked for comment about discussions to purchase the island, including the possibility of direct payments to Greenlanders, the White House referred Reuters to remarks by press secretary Karoline Leavitt and Secretary of State Marco Rubio on Wednesday.

During a press briefing, Leavitt acknowledged that Trump and his national security aides were "looking at what a potential purchase would look like." Rubio said he would meet his Danish counterpart next week in Washington to discuss Greenland.

The Danish embassy declined to comment, and Greenland's representative office in Washington did not respond to a request for comment.

GREENLAND DISCUSSIONS INCREASINGLY SERIOUS

Trump has long argued that the U.S. needs to acquire Greenland on several grounds, including that it is rich in minerals needed for advanced military applications. He has also said the Western Hemisphere broadly needs to be under the geopolitical influence of Washington.

While internal deliberations regarding how to seize Greenland have occurred among Trump's aides since before he took office a year ago, there has been renewed urgency after his government captured Venezuelan leader Nicolas Maduro in a daring snatch-and-grab operation over the weekend, according to sources familiar with internal deliberations.

One source said White House aides were eager to carry over the momentum from the Maduro operation toward accomplishing Trump's other long-standing geopolitical goals.

"We need Greenland from the standpoint of national security, and Denmark isn't going to be able to do it," Trump told reporters on Air Force One on Sunday. "It's so strategic."

One of the sources familiar with White House deliberations said the internal discussions regarding lump sum payments were not necessarily new. However, that person said, they had gotten more serious in recent days, and aides were entertaining higher values, with a $100,000-per-person payment - which would result in a total payment of almost $6 billion - a real possibility.

Many details of any potential payments were unclear, such as when and how they would be doled out if the Trump administration pursued that route or what exactly would be expected of the Greenlanders in exchange. The White House has said military intervention is possible, though officials have also said the U.S. prefers buying the island or otherwise acquiring it through diplomatic means.

FREE ASSOCIATION AGREEMENT ONE OPTION

Among the possibilities being floated by Trump's aides, a White House official said on Tuesday, is trying to enter into a type of agreement with the island called a Compact of Free Association.

The precise details of COFA agreements - which have only ever been extended to the small island nations of Micronesia, the Marshall Islands and Palau - vary depending on the signatory. But the U.S. government typically provides many essential services, such as mail delivery and military protection. In exchange, the U.S. military operates freely in COFA countries, and trade with the U.S. is largely duty-free.

COFA agreements have previously been inked with independent countries, and Greenland would likely need to separate from Denmark for such a plan to proceed. In theory, payments could be used to induce Greenlanders to vote for their independence, or to sign onto a COFA after such a vote. 

While polls show an overwhelming majority of Greenlanders want independence, concerns about the economic costs of separating from Denmark - among other issues - have kept most Greenlandic legislators from calling for an independence referendum. 

Surveys also show most Greenlanders, while open to separating from Denmark, do not want to be part of the U.S.

(Reporting by Gram Slattery in Miami; Editing by Colleen Jenkins, Rod Nickel)