-17four-step process for approval and entry

into force of the Com-

This process includes approval by the FAS governments in
pact.
accordance with their constitutional processes and approval of the
Compact by the peoples of the Marshall Islands and the Federated
The procedure for popular approval is set
States of Micronesia.
calls for a plebiscite on future
which
412,
Section
in
forth
ng
a free and informed act of
constituti
status
political
mination.
selIf-deter
The approval process also requires approval of the Compact by
the United States, and agreement between the United States and the
governments concerned on its effective date.
Once so approved,
the United States, as administering authority of the Trusteeship,
will make appropriate arrangements for termination of the
Trusteeship Agreement with the United States.
Article II, Conference and Dispute Resolution
Section 421-424.
These sections establish the method for settlement of disputes arising in connection with the implementation and
enforcement of the provisions of the Compact except for matters
arising out of Title Three, which will be handled as provided for
in Section 351.
The procedure for dispute resolution requires
that upon notification of a dispute,

the parties confer on the

matter.
After a 90-day period, if the issue has not been
resolved, the matter is referred to a three-person Arbitration
Board consisting of one member appointed by each of the parties
and a chairman jointly appointed by the parties or selected by lot
from standing lists if mutual agreement cannot be reached.
Decisions will be by majority vote and shall be binding on the
parties unless it is agreed that the decision shall be advisory.
The Board will also not have jurisdiction in matters arising under
the environmental protection provisions of Article VI, Title One,
and the general legal provisions of Article VII, Title One.
Article III,

Amendment

Sections 431-432.
These sections provide for bilateral and multilateral amendment of the Compact by mutual agreement of the
parties affected by such amendments.
Article IV,

Termination

Sections 441-443.
The Compact provides three avenues for its
termination.
Under Section 441, the Compact may be terminated by
mutual agreement of the United States and one, or all, of the FAS.
Section 441 requires United States and FAS approval of the terms
and conditions of termination, and contemplates termination only
if the United States and the FAS are fully satisfied with the
post-termination arrangements.
Section 442 provides for unilateral termination initiated by
the United States,'in which case prior notice of no less than six

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