CHAPTER 4 COMPACT OF FREE ASSOCIATION ESTABLISHES A NEW STATUS FOR PARTS OF MICRONESIA Since 1947 the United States, under a U.N. agreement, has administered the Trust Territory of the Pacific Islands--an area of over 3 million square miles commonly known as Micronesia. Currently, there are four governments still under the trusteeship, NMI, Palau, the Federated States of Micronesia (FSM), and the Marshall Islands. The NMI has chosen to become part of the United States as a territory, and Palau is currently attempting to resolve people of internal constitutional problems the FSM and the Marshall new relationship with the United Islands States. before in The joining entering Compact the into of a Free Association, which defines this new relationship, may pose new challenges for U.S. policymakers in defining and maintaining federal-territorial relations. Some issues, such as foreign economic assistance, fishing rights, immigration, and economic competition, have already been raised. At the end of World War II the fate of the islands of Micronesia was the subject of much debate in the federal govern- ment. The United States wanted to insure that the islands would never again be used by unfriendly. powers to threaten U.S. security. However, absorption into the United States was not an acceptable alternative because it conflicted with U.S. and allied policy, which opposed territorial expansion. Instead, the United States proposed to administer Micronesia under the U.N. international trusteeship system. As administering author-_ ity, the the United States was charged with promoting the political, economic, social, and educational development of the Trust Territory. To protect its security interests, the United States proposed a special arrangement calling for a U.N. Strategic Trusteeship, under which it was committed to the same general development objectives as the flag territories but was given additional authority to establish bases on the islands and to foreclose Micronesia to third countries for military purposes... U.S. POLICY IN THE TRUST TERRITORY Unlike the flag territories, the Trust Territory is not under U.S. sovereignty, or subject to the U.S. Constitution. Its residents are citizens of the Trust Territory, not the United States. While U.S. policy for the flag territories does not specifically outline ultimate status, ment is not 5000223, intended to be a the Trusteeship Agree- permanent 16 statuS arrangement.