Under the agreement, the U.S.
is committed to promote selfgovernment and to allow the local people to choose their own
status arrangement such as territorial status, independence, or
an arrangement like free association.
U.S. policy objectives in the administration of Micronesia
are quite similar to those for the U.S. territories, especially
-for social and economic development.
Micronesian residents face
many of the same development constraints as their flag territory
;

me

neighbors.

Fon example, as discussed in chapter 5 the financial

dependency on

the United States and

indigenous and

federal

con-

straints to development in Guam, American Samoa, and the NMI are

also present in Micronesia.
In recent years, the federal government has directed its efforts at strengthening the local
economies and correcting deficiencies in financial management,
health-care, and educational systems.

Advances in political
development lead to
status negotiations
Like the U.S. territories, the Micronesian states have made
important advances in political development.
In 1965, the Congress of Micronesia was created as the legislative authority for
the Trust Territory. © Executive responsibilities remained with
the U.S. High Commissioner, who was appointed by the President.
However,in

1979,

the Department of

the

Interior delegated

execu-

tive, legislative, and judicial responsibility, within specified
limits, to.the governments of the FSM, Palau, and the Marshall
Islands.
This was done in recognition of Micronesian desire to
Manage their own affairs.
The FSM, the Marshall Islands, and
Palau adopted their own constitutions in 1978, 1979, and 1980,
respectively.
The Secretary of Interior will represent U.S.

interests in the Trust Territory until the trusteeship is termi-

nated.

STATUS NEGOTIATIONS
CULMINATE IN COMPACT
OF FREE ASSOCIATION
In 1969, the Congress of Micronesia formed the Future Political Status Commission, which began to consider the Micronesian
Status issue and eventually recommended “a self-governing Micronesia in free association with the United States."
Negotiations have been long and difficult and so far have
culminated in two different status arrangements.
The NMI, which
had long expressed its desire for closer ties with the United
States, began separate negotiations in 1972 for commonwealth
status, which culminated in the covenant agreement approved by
the Congress in 1976.
The FSM, Marshall Islands, and Palau con-

tinued negotiations

for

free association
17

2000224

throughout

the

1970s.

Select target paragraph3