rd tea “ . Yap, ween wee . we Mee tn ere e ee “ tes : — : eee eee eet orpoe omoe : fin ” eh: es TT oe ee ween ar — teeta ee Truk, Ponape ‘and Kosrae. re bee - wee . eee wT: ee rr SR r 7 sore oe 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