MICRONESIAN STATUS NEGOTIATIONS

In 1969, the United States and Micronesian political leaders of the Trust Territory began negotiations to change their
political status, which would in turn lead to termination of the

U.N. trusteeship arrangement.
Negotiations were successfully
completed with the Northern Mariana Islands, which chose to
become a U.S. territory.
The Covenant with the Northern Mariana
Islands was approved by a joint resolution of Congress in 1976.
However, until the trusteeship is terminated, the NMI remains a
part of it.
The United States and the Federated States of Micronesia
and the Republic of Marshall Islands have reached final agreement on a new type of political status--free association.
The

free association relationship is defined in the Compact of Free

Association, under which the Micronesian states will exercise
sovereignty over their internal and foreign affairs, while the

United States will retain full responsibility and authority for
security and defense matters.
The Compact, currently with Congress for approval, represents a final step in the process to
end the U.N. trusteeship.
.The Compact contains several unique

provisions

defining

the

relationship between the United States

and each freely associated state (FAS).
It also is influencing
the ongoing debate among many of the flag territories about the
meaning of U.S. policy toward them and the future of U.S. territorial relationships.
(See ch. 4).
OBJECTIVES, SCOPE, AND METHODOLOGY
At the request of the Chairmen of the Senate Committee on
Energy and Natural Resources and House Committee on Interior and
Insular Affairs, we reviewed U.S. policy for its territories and
insular areas.
Our objectives were to address (1) the back-

ground and history of U.S.
the extent

considered

domestic

to which the

in

the

policy,

territorial

territories and

formulation
(3)

whether

and

and

conduct of U.S.

policies,

designed with stateside objectives

insular policy,

insular areas
laws,

have

foreign

and

(2)

been

and

programs

in mind consider the effect

on the political, social, and economic development of the territories, and (4) whether the present federal organization is adequate to coordinate the delivery of federal programs and services to these areas, and provide a consistent basis for policy,
including treatment under U.S. laws.

To accomplish these objectives, we conducted a literature

search on past and

current

territorial

policy and related mat-

ters.
We relied
heavily on previous
studies and
reports,
including many made by GAO, to determine the political, economic, and social conditions in each territory and insular area.
(See

app.

9060204

IX.)

Select target paragraph3