APPENDIX APPENDIX IV IV Page 27 The High Commissioner is appointed by the President, and not the Secretary of the Interior. The statement “The High Commissioner will represent U.S. interests in the Trust Territory until the trusteeship is terminated" is not completely Trust Territory until the trusteeship is terminated." Page 28 Negotiations have been completed between the United States and Palau. We are encouraging Palau to resolve internally its problems with certain defense and security provisions of the agreement. You may wish to insert at the beginning of the first full paragraph: “Even though the people of Palau voted by 62 percent to approve the Compact," In the second full paragraph, you may wish to revise the third sentence to read as follows: “Except for rights retained by the United States in connection with defense and security matters, the Micronesian states will be self-governing entities." In the sentence immediately following, we suggest the deletion of “will be sovereign states" and the substitution of “will approximate sovereign states." Page 30 No decisions have been made as to which federal grant programs the respective Freely Associated States will be allowed to participate in post compact. The Compacts provide specific funds for health and education programs, but this is separate from existing federal grant programs. The first sentence of the second paragraph, we believe, might better read: “The United States will also provide support and certain services through the U.S. Postal Service, Weather Service, Federal Emergency Management Agency, the Federal Aviation Administration, and the Civil Aeronautics Board (or its successors)." Page 32 Although the Micronesian governments may appear to have a more beneficial relationship with the United States government as a consequence of the Compacts, it should be pointed out that the flag territories are part of the United States whereas the Micronesian entities are not. Economic Benefits should not be the sole consideration. At the end of the first paragraph, you may wish to add to the end of the first sentence: “and make proposals for reform and reorganization of their legal and policy relations with the Federal government.” se 9000275 AD apne to say the “Secretary of the Interior will represent U.S. interests in the «4EESPthaletertgB25 5 accurate. The authority of the High Commissioner is delegated by the Secretary of the Interior under an executive order. Therefore, with the problems in Palau, it is possible that the operation of the High Commissioner may be phased out prior to formal termination. It would be more appropriate