Give And Take At Guam Brings

A New Compact For Micronesia

Prom a Saipan correspondent

Quid pro quos must have filled the air at the Guam conference between the Congress of Micronesia’s Joint Committee on Future Status and the United States. Full agreement was reached—this after interminable talks going back to 1969—0 n Micronesia’s new status after a series of surprising concessions by both sides, concessions which a few months ago, seemed more remote than the Milky Way.

The draft text of the new compact was released in Washington and circulated in the Congress of Micro nesia on August 8. But all is not over. The compact has to be ap proved by the Congresses of the United States and of Micronesia and a plebiscite of the peoples of the Carolines and the Marshalls. The Marianas, conducting separate negoti ations, remain outside the compact.

A 55 per cent majority is needed to approve the compact, and should at least two-thirds of the voters in any district reject the agreement the com pact will not apply to that district.

Since the Guam talks, however, the Joint Committee suggested several changes in the terms of the agree ment and these will be the subject of further discussion.

The committee’s co - chairmen, Senator Lazarus Salii and Congress man Ekpap Silk represented Micro nesia and Ambassador Franklin H.

Williams and his deputy James M.

Wilson Jr the IJnited States.

Highlights of the draft agreement, according to the Washington release, are: • The new Government of Micro nesia will have full responsibility for its internal affairs. It will be self governing under its own constitution, with its own laws and its own courts. • The United States will have the responsibility for Micronesian foreign affairs and defepce. It will have the exclusive rights to establish and main tain certain military installations in the area. • The US will provide continuing financial assistance to Micronesia for an initial period of 15 years. This will include support for government operations, starting at an annual level of SUS3S million, and additional grants for capital improvements, starting at $12.5 million annually, both declining gradually over the period. Loans for other development projects will also be made available at an annual rate cf $5 million.

• The US will also provide federal postal, meteorological and commercial aviation services to Micronesia. • Both parties will enjoy most favoured nation status with respect to each other’s customs laws, export import regulations and other com mercial taxes. • US currency will continue to be used as legal tender in Micronesia for an indefinite period. • Micronesia and the US will establish appropriate representation in each other’s capitals. • The compact may be terminated unilaterally by either party at the end of 15 years, but the association can continue in effect indefinitely in the absence of such action.

In separate undertakings the US has also agreed to transfer to local control all public lands held in trust.

With US Congressional approval it will also continue financial and de velopment assistance to Micronesia during a tentatively agreed five-year period between approval of the agreement and the end of the trustee ship in amounts ranging from a pro jected level of $76 million this fiscal year to $6l million in the last years of the trusteeship. During this period action will be taken to phase in the

new government established under thd new Micronesian constitution and td terminate the trusteeship arrangement] The United States seems to have gained the most from the bargaining but it will cost them millions of dollars in grants which, initially, they refused. The talks bogged down last year over the Micronesians’ demand for annual aid of $lOO million later reduced to $BO million. The new compact will give them $l2B million to begin with. This will reduce gradu ally. In return, the Americans suc ceeded in their demand that uni lateral termination of the compact cannot be effected for 15 years. The Micronesians wanted it limited to five years. Most important of all, from their standpoint, the US will get ex clusive military rights.

It will continue to occupy Kwaja lein atoll, the missile range, as well as parts of Bikini and Eniwetok atolls and will have access and anchorage rights in Malakal Harbour, Palau and adjacent waters; joint use oi the proposed airfield at Garrem Island or the Babelthaup airfield anc an option on 32,000 acres of land for ground force training and manoeuvres on Babelthaup Island Requirements in the Marianas are the subject of separate negotiations.