RMI Nuclear Justice Documents

March

1984,

the Compact of

proposed

political

sents

unique

status

Free Association,

agreement

a

among

the

which

GAO

Federated States of Micronesia, the Marshall
Islands, and the United States, was submitted
to Congress for approval.
The Compact repre-

a

status

arrangement

believes could influence U.S. future relations
with its territories, especially those in the

Pacific.

The Compact,
the culmination of 15 years of
negotiation, is a highly detailed and complex

legal

agreement which

will

grant

the Microne-

Sian states virtual control of all internal and
external
matters,
except
for
security
and
defense which will remain under U.S. control.

With some limited exceptions, U.S. laws will no

longer apply and the Micronesian states can
negotiate bilateral agreements or join international organizations.
The Compact provides
for a 15-year economic assistance commitment by
the United States at an estimated cost of $2.2
billion.

Because of their geographic proximity and simi-

lar economic
and
social
problems,
the U.S.
territories in the Pacific are likely to scrutinize closely the new arrangement between the
freely associated states of Micronesia and the
Their officials have already
U.S. government.

raised concerns about the potential impact of
the Compact on them, particularly in economic

and social areas.
Because of the Compact, GAO
believes that policymakers will face new challenges
to
improve
federal-territorial
relations.
(See ch. 4.)
ECONOMIC AND SOCIAL DEVELOPMENT
AFFECTED BY FEDERAL POLICIES,
LAWS, AND PROGRAMS
The United States has established a policy of
encouraging economic self-reliance and social
development in its territories.
Financial and
technical assistance and other incentives to
each territory
have
provided
some
economic
growth and improved the standard of living of
the residents.
The United States has helped to
finance and build schools, hospitals, housing,
roads, utilities, and other infrastructure and
provided health, educational, and other social
services which have enhanced the well-being of
Tear Sheet

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