- nes he et a IA FO LAS erensnes APPENDIX ITI f APPENDIX II Issues Affecting U.S. Territory and Insular Policy The Department of State endorses the GAO report's broad conclusion that organizational options for the Federalterritorial relationship should reflect the present direction of that relationship -- i.e., greater autonomy within the context of self-determination. That evolution accords with ‘long-declared global United States policy on dependent territories. Greater centralization of territorial affairs within the Federal Government in the area of program activities is likely to be seen in the territories and abroad as a move to reverse the present direction of U.S. territorial policy and as an impediment to more efficient direct access to Federal agencies by the territorial governments. On the other hand, the Department recognizes the need for. better coordination of both policy and program issues and suggests that an interagency coordinating committee and working groups, as have been used in the Micronesian situation, could fulfill those needs. The Department would oppose establishment of an interagency _ body that would have jurisdiction over Micronesian as well as territorial affairs. Our present obligations as an Administering Power on behalf of the United Nations and the nature of our future relationships to the Micronesian states. under the Compact of Free Association call for an entirely separate organizational structure for dealing with the freely associated states following termination of the trusteeship. Any organizational arrangement linking the freely associated states and the flag territories would be seen from abroad as a perpetuation of “colonial status quo" and could only provide fuel for the malicious Soviet charges that the Compact is nothing but a sham annexation. Presidentially approved policy on the management of our post-trusteeship relations with the Micronesian states calls for a two-level interdepartmental structure consisting of an interdepartmental policy steering committee chaired by the Department of State, with the Departments of Defense, Interior and Justice, and JCS, OMB, and NSC as regular members, and other agencies participating as the subject matter requires, and an interdepartmental professional staff tailored to the requirements of the situation, attached to and headed by a career officer of the Department of State, with deputies from 30002b4 57