Our review was conducted from June 1983 to April 1984 at
each territorial government and at numerous federal agencies in
Washington, D.C., including the Departments of Interior, State,
We also met with White House officials,
Treasury, and Defense.

congressional representatives and committee staff responsible
for oversight and administration of the territories.

We
interviewed key territorial
leaders,
including
the
Governors of each territory and the Presidents of each Micronesian government.
We met with key executive branch officials
involved in administration and policy-making for the territories

and insular areas.
We also met with the U.S. Ambassador for the
Micronesian Status Negotiations to discuss the terms and potential impact of the Compact of Free Association on federalterritorial relations.
We also talked with government and
private sector representatives in each territory to gain a per-

spective on how U.S. policy and laws affect economic development.
Our review was conducted in accordance with generally
accepted government audit standards.
We obtained the views and
comments
ernments
Islands,

report.

VII.

of the Department of Interior and State and the govof
Puerto Rico,
American
Samoa,
Guam,
the Virgin
and the Northern Mariana Islands on a draft of this

These

comments

are

included

in

appendixes

I

through

This report discusses the nature of the problems, real and
perceived, with current U.S. policy, and U.S. territorial rela-

tions.

We did not attempt to determine what U.S. policy should

be, nor did we make an in-depth analysis and evaluation of all
the issues and problems of the territories and insular areas.

5000210

Select target paragraph3