. 3. . reaffirmed its desire to find a mutually satisfactory basis for the termination of the Trusteeship Agreement by 1981, and. pressed for an early resumption of formal negotiations. We expressed our belicf that free association alqng the general. lines negotiated over the past .six years provides the most promising basis for enduring a mutually satisfying relationship between the United States and the people of the Marshall Islands and the Caroline Islands. We stated that our basic aim was to help the peoples of Micronesia to move rapidly and successfully towards a new status based on self-determination and that we had not excluded~ the possibility of talks leading to forms of government other than free association, including independence, if that were the expressed wish of the peoples of Micronesia. We expressed our belief that the interests of the peoples of Micronesia would best be served by the maintenance of some form of unity, and we concluded the Honolulu meeting with an agreement by all parties to meet again no later than July for further discussions. A second Micronesian-United States Conference attended by representatives of the Congress of Micronesia; the Districts of Kosrae, Ponape, Truk, Yap, the Marshalls —- including the Marshall Islands Political Status Commission, and Palau -- including the Palau Political Status Commission, the Trust Territory Administration, and the United States Government was held in Guam July 25-27. The U. S. delivered a proposal for a free association arrangement in terms of a two-tier relationship. Under the U. S. preposal, an —