remedy some Establishment of of group authorized the territories' concerns. a formal interagency policy to address major policy mat- ters in a comprehensive fashion or a legislatively authorized office attached to the White House, might provide the representative focal point wanted by many territorial leaders. Al- though an organizational change may not enhance or resolve U.S. territorial relations without a corresponding clarification of U.S. policy toward such issues as political status, eco- nomic and financial assistance and relations, the degree of federal oversight over territorial affairs and treatment under federal laws and programs, it could provide the impetus for addressing these issues. AGENCY COMMENTS The Departments governors of of Interior American and Samoa, State Guam, Mariana Islands, Puerto Rico, and Islands commented on GAO's report. I through VII.) and the Northern the Virgin (See apps. Interior supports GAO's conclusion that its role as a direct authority over territorial government has diminished, and that its role is primarily as a provider of technical assistance and territory advocate. State said organizational options for the federal-territorial relationship should reflect the direction of the relationship--greater ter- ritorial autonomy within the context of selfdetermination. State also said greater federal centralization over territorial affairs would be perceived by the territories as a reversal of this direction. © However, State also recognized the need for better policy and program coordination and said an interagency coordinat~ ing committee for the territories could fulfill this role. The governor of the Virgin Islands recommended ‘that the Congress enact a law giving the territories authority to develop a federal policy compact to include economic assistance and political status. Tear Sheet 9000203 vii