Palau Senate Photo: SPREP
Palau's Senate is standing firm on its position against a US proposal on people seeking protection.
Senate President Hokkons Baules has advised against proceeding further, saying there are practical issues around introducing refugees in their society.
In a letter to Baules, president Surangel Whipps Jr said he was forming a working group to consider the US proposal and "build a consensus on what Palau is comfortable with and define terms that would be in the country's interest".
The Pacific Island Times reported Baules declined President Whipps' invitation for the Senate to send representatives to the working group - saying "we trust you will respect our decision".
Whipps said a unanimous position would enable Palau to give a response that "is united, deliberate and grounded in the best interest of our people".
The president said the first proposal from Washington was inadequate, however the US had "acknowledged them and expressed a willingness to work with us to address our priorities".
The first draft agreement, seen by the ABC, would make Palau a destination for people seeking protection in the US against returning to their home countries.
Jose Sousa-Santos, an associate professor at the University of Canterbury's Pacific Regional Security Hub in New Zealand, said it was a broad definition.
"It's quite a broad term, people seeking protection in the United States, and that could be illegal migrants and it could be asylum seekers."
Previously, in a letter dated 21 July, Baules and House Speaker Gibson Kanai stated that while Palau considers the US as its closest ally, they can't support the plan.
Whipps met Deputy Secretary of State Christopher Landau in Papua New Guinea in September, and was asked if the US could continue dialogue with Palau.
Whipps said he agreed to form a working group in Palau to discuss the matter.
Previously, Whipps acknowledged the firm stance of Palau's congress and Council of Chiefs, but attributed their rejection to lack of clarity.