-2‘It should be pointed out that some U. S. laws will not apply to the Northern Marianas until it becomes a Commonwealth after the end of the Trusteeship which the United States hopes to terminate in 1981. ° Sections 502 and 703:0f the Covenant .indicates the availability 6f more federal programs for the Northern Marianas. The Covenant will be discussed more thoroughly at a subsequent Committee meeting. The Trust Territory of the Pacific Islands known also as Micronesia, is made up of the Districts of the Marshalls, Ponape, Truk, Yap, Palau, and Kosrae. Status negotiations with the Congressof Micronesia negotiating team representing these districts have been conducted for several years. In June, 1976, a nearly complete "Compact of Free Association" resulted from the negotiations. In essence, it provided for a unified Micronesia and for self-government internally; with the United States having responsibility for external or foreign affairs and defense of the islands. For a variety of reasons however, no formal negotiating sessions were held this past year. Instead of a united Micronesia, now the Marshalls and the Palau Districts have proceeded separately from the other districts and have sought separate negotiations Early this year, a policy review by the new administration in Washington was completed, and the Administration invited representatives from the Marshalls and Caroline Islands (all of the TT excluding the Northern Marianas) to participate in a round-table conference with the United States in Honolulu from 18 - 21 May to discuss a range of subjects of mutual interest. . At that conference, the United States -_— se “