APPENDIX IV . APPENDIX IV Page 3 In the first full sentence, it would be desirable if "U.S. territory” were deleted, and “commonwealth in political union with the United States -- a status approximating that of a U.S. territory” were substituted. Although the Northern Marianas generally concede that they will become a “territory” of the U.S. following termination, the use of “commonwealth" is preferred, so both references seem desirable here. In the last sentence of the paragraph continued from the preceding page, we suggest that instead of “the status of the rest of Micronesia is resolved", there be substituted "the trusteeship is terminated". The suggested language is accurate, and it eliminates the suggestion that Palau may be able to hold the rest of the Trust Territory hostage. The first full paragraph on that page contains a number of statements and terms which are either somewhat misleading or otherwise imprecise. We suggest that the paragraph be revised into the two paragraphs suggested below. We believe the suggested language will meet the purposes intended by the existing Scent aE RepaApeEG HRiBUaeog)RRR,HSElie eg paragraph, and will eliminate the difficulties we perceive in it: The United States and two Micronesian states, the Federated States of Micronesia and the Republic of the Marshall Islands, have reached final agreement on a new and unique political relationship and political status -- that of free association -- which will come into full effect upon termination of the trusteeship. The free association relationship is defined in a Compact of Free Association, under which the Micronesian states will exercise sovereignty over their internal and foreign affairs, while the United States will retain full responsibility and authority for all security and defense matters. The Compact has been approved by the governments of the Federated States of Micronesia and the Marshall Islands, and by their peoples in United Nations-—observed plebiscites, and it is now before the U.S. Congress for approval. A similar arrangement with Palau is under approval in Palau. popular approval in required 75 percent review after an earlier version did not receive final This was because the Compact received 62 percent the Palau plebiscite, but Palau's constitution approval in light of the U.S. defense authority. Approval of the Compact of Free Association will provide the basis for termination of the trusteeship with the United Nations, and will open a new chapter in relations between the Federal government and the peoples of areas which seek self-government and political autonomy within the context of a close relationship with the United States. The arrangements contemplated by the Compact have also sparked new debates in the U.S. territories about how their relations with the Federal government can -be improved, consistant with U.S. sovereignty. (See Chapter 5). Chapter 2 Page 11 In the second to the last line of the footnote, in the interest of clarity, it would be helpful to add the words “held to be" before “unincorporated.” 65 9000272