over the past 10 years, the amount of Federal funds and grants that have been made available to each of the territories during the past 10

years.

And also, if you can indicate by each one the population of each of the territories.

Mr. CARPENTER. Yes, sir.

Senator JOHNSTON. Thank you, Mr. Secretary. We appreciate your testimony very much.

Does anyone else have any questions?

[No response.]

Thank you.

Mr. CARPENTER. Thank you.

[The following material was submitted by Secretary Carpenter under date of Feb. 15, 1973.]

1973.

1972.

1971.

1970.

1969.

1968.

1967.

1966.

1965.

1964.

1963.

TABLE I-AMOUNT OF TAX REVENUE COLLECTED BY TERRITORIAL GOVERNMENTS 1973-63

1 Territorial tax for TTPI does not include municipal or district taxes locally raised and spent. 2 Not available.

TABLE II.-FEDERAL APPROPRIATIONS MADE BY U.S. CONGRESS, 1963-73

Senator JOHNSTON. We are happy to have Mr. James M. Wilson, U.S. Deputy Representative for the Micronesian Status Negotiations.

STATEMENT OF HON. JAMES M. WILSON, JR., U.S. DEPUTY REPRESENTATIVE FOR MICRONESIAN STATUS NEGOTIATIONS, ACCOMPANIED BY CAPT. WILLIAM J. CROWE, JR., DIRECTOR OF THE OFFICE OF MICRONESIAN STATUS NEGOTIATIONS

Mr. WILSON. Thank you, Mr. Chairman. With your permission, Mr. Chairman, I have a very brief statement which I might read for the record.

Senator JOHNSTON. Please.

Mr. WILSON. Mr. Chairman, members of the subcommittee, it is a privilege to appear for the first time before the members of this subcommittee to discuss progress in our talks on the future political status of the Trust Territory of the Pacific Islands.

Ambassador Haydn Williams, the President's personal representative for these talks, would be only too pleased to respond in person to your chairman's invitation. Unfortunately, his other responsibilities as president of the Asia Foundation have made it necessary for him to be out of the country on an extended trip.

As his deputy, I will do my best to update this subcommittee on the recent course of the negotiations and then try to answer any of your questions. Let me at this time introduce my companion here at the table. He is Capt. William J. Crowe, Jr., of the U.S. Navy, who is the Director of the Office of Micronesian Status Negotiations.

Ambassador Williams has appeared informally before the members of this subcommittee on many occasions. His last formal appearance seems to have been something over a year ago in executive session. With your indulgence then, it would probably be worth while as a starting point to go back to the negotiating situation as it existed in November 1971, and trace the major events since that time.

At this point, Mr. Chairman, however, if you think it might be useful, I might digress for just a moment from my prepared statement to give the new members of the committee just a couple of sentences on the background of the negotiations.

Senator JOHNSTON. Please do.

Mr. WILSON. Under the terms of the trusteeship agreement, the United States is obligated "to promote the development of the inhibitants toward self-government or independence as may be appropriate to the particular circumstances of the trust territory and its people and the expressed wishes of the people concerned."

For a number of years, the United States has been engaged in a series of discussions with the Micronesians represented by a joint committee of their Congress aimed at determining what their future

political status should be. In 1969, the Micronesian Congress conducted its own study of this subject. After examining various alternatives it concluded that their first preference would be for "a status of self-government in free association with the United States."

The United States, in turn, proposed to the Micronesians first status as an unincorporated territory of the United States. This, after consideration, was turned down by the Micronesians. We then proposed a modified commonwealth status, and this was, after consideration, similarly rejected by the joint committee of the Congress of Micronesia.

In the third round of talks, in the fall of 1971, a new proposal for a compact of free association was considered by the United States and Micronesian delegations, with the results which will be indicated in my statement which I will resume, with your permission, Mr. Chairman.

Senator JOHNSTON. Yes, please.

Mr. WILSON. A major intervening development, since Ambassador Williams' last appearance here, was our formal acquiescence in the request of the Mariana Islands District for separate status talks.

This makes it necessary to divide this presentation essentially into two parts. The first will deal with our negotiations with the Congress of Micronesia's Joint Committee on Future Status. The second will sketch the events in the separate Marianas discussions.

In November 1971, Ambassador Williams had just completed a third formal round of discussions with the joint committee at Hana, Maui, Hawaii. This had resulted in a series of agreements in principle covering six major topics previously at issue.

These were: First, the Micronesian request for a "Compact of Free Association" in lieu of the earlier U.S. offers of modified territorial and commonwealth status, which they had rejected.

Second, means for satisfying U.S. future land requirements for military and civilian purposes, and at the same time meeting Micronesian desires for the return of their lands held in public trust.

Third, determinations regarding the future applicability to Micronesia of U.S. laws and the extent to which the future Government of Micronesia would legislate its own affairs.

Fourth, the extent to which U.S. Federal programs and services might be made available in the future.

Fifth, the anticipated future needs of the people of Micronesia for financial and economic assistance, and the willingness of the United States to extend future assistance; and

Sixth, arrangements for terminating any compact of free association and residual arrangements.

Both sides had agreed to study these matters further and to meet again as soon as possible. The next meeting was, in fact, held at Koror, Palau, in April 1972.

This fourth round served to confirm the agreements reached at Hana and resolved most of the remaining differences in principle.

These were set forth in the joint communique issued at the conclusion of the talks, copies of which have been made available to this subcommittee. So far as the "Compact of Free Association" was concerned, it was agreed that the instrument itself after final negotia

tion would be submitted for approval to the U.S. Congress and the Congress of Micronesia.

Thereafter, it would be put to the people of Micronesia for their approval or disapproval in a plebescite which would represent the exercise of their right of self-determination.

Under the compact, the U.S. Government would have responsibility for external affairs and defense; the Micronesian Government, for internal affairs. The Micronesian Government would be free to negotiate and sign contracts not involving intergovernmental obligations and responsibilities, and to participate in appropriate regional organizations.

It would also be fully consulted on international matters involving the interests of the people of Micronesia. Micronesia would also be expected to draw up and adopt its own constitution, which would not have to be consistent with the U.S. Constitution, so long as it guaranteed the peoples' fundamental rights and freedoms and was not inconsistent with the compact. The United States would have no power to amend it..

The Micronesians would, so long as the original conditions regarding fundamental rights and consistency with the compact were met. On the sensitive issue of land, it was agreed that U.S. military and civilian needs would be negotiated before there was a change in political status of the TTPI.

Thereafter, all public trust lands would revert to the Micronesians and the United States would have no power of eminent domain. The Government of Micronesia, however, would obligate itself to negotiate in good faith any subsequent or emergency U.S. military requirements. After considerable discussion it was decided that the compact could be terminated by unilateral action of either party after it had been in effect for an agreed number of years.

The exact number of years was not established and this was left for further discussion. Upon termination of the compact U.S. military leases would continue in effect for their originally designated term of years, and arrangements would be made to protect larger U.S. security interests in the area after termination.

Financial and transitional arrangements were left for further discussion and agreement. After Koror the two sides met again in July and August last year here in Washington to begin work on the actual draft of the compact.

Tentative agreement was reached on the text of a preamble and articles on internal affairs, foreign affairs, and defense, together with annexes on foreign affairs responsibilities and agreed U.S. military requirements.

This committee has been provided with the text of these drafts. It was stipulated between the two delegations, however, that the text would be considered as tentative and preliminary pending agreement on the compact as a whole.

Things thus appeared to be moving very well after the fifth round, although work still had to be done on finance, trade and commerce, nationality, transitional arrangements, and further important details of termination.

Then in September the Congress of Micronesia met in special session in Ponape. After receiving the report of its Joint Committee on Future Status it specifically failed to endorse the draft articles put together in Washington and instead passed a joint resolution which:

Authorizes and directs the Joint Committee on Future Status to conduct negotiations with the United States regarding the establishment of Micronesia as an independent nation, while continuing negotiations toward Free Association.

In its report the Congress indicated a desire to put to the people of Micronesia in the final plebiscite two choices, one for free association, one for independence.

The joint resolution of the Congress of Micronesia, coming as it did just on the eve of the scheduled resumption of talks between the two delegations, gave rise to a large measure of uncertainty.

When the sixth round began at the end of last September at Barbers Point, Hawaii, the U.S. delegation pointed out the inconsistency introduced in the previous position of the Micronesian delegation, which until that point had maintained that its efforts were focused on the development of a mutually agreeable text of a compact of free association.

Efforts on our part to elicit from the Micronesian delegation what they had in mind by way of an "independence option" were turned aside. In response the chairman of the Micronesian delegation said on this issue:

You have *** suggested some exploration now of the position of those who espouse full independence as the immediate result of the termination of the trusteeship. We will give this suggestion thoughtful consideration. It appears to us, however, that an effort to deal in depth with the alternative status of independence at this time would be diversionary and premature. In our view priority could be given to continued good faith efforts by both delegations to complete promptly a draft Compact of Free Association.

For its part the United States delegation expressed the need to consider these new developments most carefully, and both sides agreed to recess the talks to provide each with an opportunity to study its position further.

No attempt was made to continue the joint drafting process. Meanwhile, it was agreed that a survey of precise U.S. military requirements in Palau would proceed, with participation by members of the Micronesian joint committee.

Since last October there have been two further developments. In November the regular elections for the Congress of Micronesia were held, resulting in the defeat of two members of the joint committee and a contested election in the case of the committee's cochairman.

Under these circumstances the joint committee's chairman decided it would be impossible as a practical matter to meet with the U.S. delegation before the new Congress of Micronesia convened in regular session, the first part of this month, and indeed that no further meetings would be possible until late spring at the earliest.

In November also some of the traditional leaders, magistrates, and district legislators in Palau met and issued a so-called declaration in which they expressed their opposition to the U.S. military requirements in Palau.

This had been made an issue during the election campaign when a considerable amount of misinformation regarding the nature of the U.S. requirements and U.S. intentions was disseminated.

Ambassador Williams and the chairman of the Micronesian joint committee visited Palau together last month in an effort to clear up these misunderstandings, which appeared to be initially successful. Unhappily, however, thanks to subsequent efforts of unfriendly