further agreed that the U. S. proposal represented an important and
realistic step toward the resumption of negotiations, and believe that

it could form an acceptable basis for negotiations.

At subsequent

“Committee meetings, we shall keep you posted ‘on Micronesian political "°*
status negotiations because the outcome could affect programs
administered by your agencies.

For example, in the "Compact of Free

Association," there is no provision for federal programs other than
postal services, weather services, and FAA administrative services.

Other federal programs may be provided at the request of the
Micronesians and agreement of the U. S. government.

—

Therefore, in

the unlikely event that the Compact is agreed to, one could envision
a major reduction of federal programs for the Trust Territory. In terms
of priorities, from now until the end of the Trusteeship agreement,
greater emphasis will be placed on economic development and on
infrastruction in the Trust Territory than in the past.
American Samoa
American Samoa will elect for the first time its own governor and
.
MEWLY
os
.
.
Lt. governor this fall, and the nearly elected officials will take office
after the first of the year.

We would not anticipate any changes of

delivery of federal programs or services to American Samoa.

Interior

expects to establish a Government Comptroller for American Samoa who
would function in a manner similar to the Government Comptrollers of

ode al

Guam and the Virgin Islands.

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