precise
terms of
the new status.
This was
followed by public
education campaigns and plebiscites in each district.
The Compact received the requisite approval in the FSM and the Marshall
Islands, and in March 1984, was formally submitted to the United
States for approval.
The
lems with
pact.
people
As
of
Palau
certain defense
of
December
are
and
1984,
attempting
to
resolve their prob-
security provisions of
officials
from
the U.S.
the Com-
Office
for
Micronesian Status Negotiation were optimistic that the problems
would be resolved.
WHAT THE COMPACT PROVIDES
The Compact of Free Association is a unique status arrangement between the United States and the FSM and Marshall Islands.
The Compact and its subsidiary agreements comprise a highly
detailed set of broadly based legal documents.
The FSM and the
Marshall Islands as freely associated states (FAS) will be completely self-qoverning entities.
Unlike the U.S. territories,
the FAS will be sovereign states governed largely by laws of
their own making.
When the Compact goes into effect, U.S. laws,
in general, will not apply to them.
Their autonomy will include
the ability to conduct their own foreign affairs, except for
defense and security-related matters.
They will be able to conclude commercial and fishery agreements, to seek membership in
regional and international organizations, and, in general, to
act on a bilateral basis with other nations.
The FAS will also have control over their future political
Status.
The Compact states that either party to the agreement-the United States or one of the Micronesian governments--may
unilaterally
terminate
the political
relationship.
Therefore,
free association can last as long as it continues to be in the
interest of the United States and the FSM and Marshall Islands.
Economic assistance
The Compact recognizes that the FAS are not yet ready to
assume complete economic independence from the United States.
Over a period of 15 years, the United States will provide direct
cash
assistance
currently
estimated
at
$2.2
billion.!
By
approving the Compact, the Congress will authorize 15 years of
economic assistance.
Although Congress is to appropriate the
Compact funds on an annual basis, the 15-year authorization is a
commitment to provide a guaranteed level of assistance, which is
lactual assistance is tied to an inflation type index.
5000225
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oaof eA aA lint
In 1982, representatives from the United States and the governments signed the Compact of Free Association, which defines the