precise terms of the new status. This was followed by public education campaigns and plebiscites in each district. The Compact received the requisite approval in the FSM and the Marshall Islands, and in March 1984, was formally submitted to the United States for approval. The lems with pact. people As of Palau certain defense of December are and 1984, attempting to resolve their prob- security provisions of officials from the U.S. the Com- Office for Micronesian Status Negotiation were optimistic that the problems would be resolved. WHAT THE COMPACT PROVIDES The Compact of Free Association is a unique status arrangement between the United States and the FSM and Marshall Islands. The Compact and its subsidiary agreements comprise a highly detailed set of broadly based legal documents. The FSM and the Marshall Islands as freely associated states (FAS) will be completely self-qoverning entities. Unlike the U.S. territories, the FAS will be sovereign states governed largely by laws of their own making. When the Compact goes into effect, U.S. laws, in general, will not apply to them. Their autonomy will include the ability to conduct their own foreign affairs, except for defense and security-related matters. They will be able to conclude commercial and fishery agreements, to seek membership in regional and international organizations, and, in general, to act on a bilateral basis with other nations. The FAS will also have control over their future political Status. The Compact states that either party to the agreement-the United States or one of the Micronesian governments--may unilaterally terminate the political relationship. Therefore, free association can last as long as it continues to be in the interest of the United States and the FSM and Marshall Islands. Economic assistance The Compact recognizes that the FAS are not yet ready to assume complete economic independence from the United States. Over a period of 15 years, the United States will provide direct cash assistance currently estimated at $2.2 billion.! By approving the Compact, the Congress will authorize 15 years of economic assistance. Although Congress is to appropriate the Compact funds on an annual basis, the 15-year authorization is a commitment to provide a guaranteed level of assistance, which is lactual assistance is tied to an inflation type index. 5000225 18° oaof eA aA lint In 1982, representatives from the United States and the governments signed the Compact of Free Association, which defines the