REPORT BY THE U.S. GENERAL ACCOUNTING OFFICE ISSUES AFFECTING U.S. TERRITORY AND INSULAR POLICY Because ultimate political status has not yet been determined by each territory or established by Congress, territorial political, social, and economic development follows an unclear path which complicates federalterritorial relations. Many territory officials believe U.S. policy should be more Clearly defined, particularly for economic development and treatment of territories under federal laws and programs. At the request of the Senate Committee on Energy and Natural Resources and the House Committee on Interior and Insular Affairs, GAO reviewed (1) the background and history of U.S. territorial and insular policy, (2) the extent to which U.S. foreign and domestic policies consider the potential impact on the territories, (3) whether federal policies, laws, and programs are meeting U.S. policy objectives and territorial needs, and (4) whether the present federal orqanization for program and policy responsibilities in the territories is adequate to coordinate and provide consistent federal administration for territorial matters. This report includes information on these issues in ‘the toward context its of U.S. policy territories. GAO and does relations not attempt to determine what U.S. policy should be nor prescribe how relations between the federal government handled. and the . territories should be GAO found the issues involving federalterritorial relations, such as appropriate levels of representation, treatment under federal laws and programs, and economic and social development strategies, are becoming increasingly complex with no simple or ready-made solutions. GAO believes they are likely to require greater congressional attention and to stimulate debate on whether further policy guidance is needed to clarify and strengthen federal-territorial relations. Tear Sheet sheet i 50001491 " " . GAO/NSIAD-85-44 FEBRUARY 7, 1985