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A copy Of thesigned '
Statement of Principles describing the future relationship between the U. S. and each of these entities is
-enclosed herewith...
We are now negotiating a full
Compact of Free Association to implement these principles.
You will note that the Statement is silent on the
matter of post-Trusteeship U. S. economic assistance,
This has not yet been negotiated with the Micronesian
commissions, but negotiations on this topic are scheduled
for the next negotiating round in'’mid~-January.
For
present purposes, however, it may suffice for me to oer
tell you as, indeed, I have already
told the Hicronesian.
commissions, thatgive
we
to
each
government a
flat cash grant from which they will fundnearlyall ov”
05SheetZequirenents “The only exceptions planned ......-are the continued provision of three federal agencies'
programs, the FAA, the Weather Service and the Postal
Service, without additional cost to them.
e do not
contemplate the continuation of any other federal
programs in the post—Trusteeshipperiod
exc pt
for
sucnasthe Micronesians themselves might wish to
pay for out of their cash grants.
i adonot,frankly,
believe that the latter is alikély eventuality as
the cash grants I am authorized tonegotiatearenot_
large enough and the administrative costs are so high,
that tne future Micronesian governments are likely
to
conclude that their limited funds could be better
spent otherwise.
(~
oe
mo
.
a I should also add that additional U. S. postTrusteeship assistance will not be available to the
“"" Micronesians through AID, both for all the reasons
tae pee ee
‘ay oc...
set forth in the preceding paragraph and because
the Micronesians' unprecedented "free association”
- |Heeeitory status will leave_them_neither_aU. S..
‘térritorynor-indepe ndent ,
This means that theMicronesiansSwill not be eligible for food assistance’
either through USDA _or through AID.
TI should add,
coe
tration'sposition goingint«
into“negotiations
+
“with.
become necessary toadjust
bec
theMicronesians. Itmay
that position to some extent in order to attain both
a negotiated agreement and.congressional approval.
TT em ee te
ony,
so0g4al