y oo. 7 Beirne has long offered two grounds for supporting (C) S. in inclusion of the full faith and credit of the U. the Compact: -- Across the board budget slashes or other meat-ax fiscal measures might sometime in the future unwittingly cause less than the fully authorized Compact amounts to be appropriated unless the full faith and credit of the U. S. had been pledged in the Compact. -—~ If the U. S. did fail to appropriate the Compact amounts, inclusion of the full faith nesians a remedy (resort to U. and credit provision would give the MicroS. courts) other than direct retaliatory action against our defense interests. Beirne's views were reflected in comments by the Senators at both the hearing and at the June 12 conference, (C) At the June 13 Lunch Beirne suggested full faith and credit to Copaken as a possible trade-off against permanent denial. Copaken evidently added a demand for elimination of the Section 453(b) provision which guarantees the Micronesian no more than 50% of the Compact assistant levels in the event they unilaterally terminate free association during the first 15 years of the relationship. Copaken told Beirne that this kind of a trade-off seemed attractive and saleable and Beirne agreed to take it up with the Senators. Senator Johnston was out of town, but later that afternoon Senators Jackson and McClure concurred, with the - latter suggesting that Senator Hatfield be consulted to insure concurrence of the appropriations subcommittee. Senator Hatfield, too, approved. Beirne invited Copaken up to the Hill for a little gentle handling by Senators Jackson, Johnston and McClure on Monday, June 16, suggested he bring with him draft Compact language and incorporating this arrangement, (C) On Monday Copaken's writing was approved by the Senators with some small changes and they also laid on him the obligation of securing the concurrence of the other Micronesian entities. They suggested that proposal to the Administration. Copaken agreed and the whole package would look better as a Marshallese left for the Marshalls on a pre-arranged visit the next day.