The fine print

of the compacts

After Marshallese voters turned out 60 per cent in favor of the Compact of Free Association in early September, one of the syn dicated news services in America reported that the Marshalls would soon be “completely inde pendent” of the United States except in matters of defence.

It is true that even before the compact has gone through its entire ratification process (ap proval by the island legislatures, the U.S. Congress, etc.), Palau, the Federated States of Mic ronesia, and the Marshalls have formed their own governments and have assumed control over

many of their own affairs. It is, however, erroneous to claim that free association as it has been negotiated in the U.S. Trust Ter ritory equals anything that ap proximates independence. (The fact that the issue of free associa tion is now in doubt for Palau is irrelevant for the issue discussed here.) The Compact of Free Associa tion is a quite complex document of over 50 pages. In addition, there are subsidiary agreements with each island state. The com pact is divided into four titles: Governmental Relations, Economic Relations, Security

A View from Honolulu Robert C. Kiste

and Defence Relations, and General Provisions. Titles are divided into a total of 24 articles.

The latter are divided into 110 sections, and, of course, there are sub-sections within sections.

While the compact cannot be examined in detail here, several items are mentioned because they are the most relevant with

regard to questions of

sovereignty.

Essentially, the compact defines an arrangement whereby

tions with those governments, to be incompatible with its authori ty and responsibility for security and defence matters”. The Un ited States also has the right to “invite members of the armed forces of other countries to use military areas and facilities”, There is a lengthy statement which essentially indicates that American activities in the islands shall be in compliance with legis lation which protects the envi ronment in the United States it

“The United States clearly receives great latitude in defence and foreign affairs mat ters in Micronesia. And arrangements for services and subsidies guarantee even further American influence.”

the island states are granting the United States a number of pre rogatives in exchange for finan cial subsidies, the provision of certain services, and free access to the United States. With regard to the latter, citizens of the island states will have the status of “habitual resident” which will allow them to freely enter and find employment in the United States.

The prerogatives of the United States in the islands are carefully spelled out. With regard to de fence, the United States has “full

authority and responsibility for

security and defence matters in or relating to” the island states.

This includes; (1) the obligation to defend the islands, (2) “the option to foreclose access to or use” of the islands “by military personnel or for the military pur poses of any third country”, and (3) “the option to establish and use military areas and facilities in” the islands subject to the terms contained in the subsidiary agreements. Further, the United States “may conduct within the lands, waters and airspace of’ the islands “the activities and operations necessary for the ex ercise of its authority under” the title defining defence relations.

The United States ultimately decides what constitutes a de fence matter. It is stipulated that the island states “shall refrain from actions which the Govern ment of the United States deter mines after appropriate consulta

self. However, this is immediate ly followed by the proviso that the president of the United States may declare exceptions if he “de termines it to be in the paramount interest of the United States to do so, consistent with” the title de fining defence relations.

As for other prerogatives, the island states “shall permit the Government of the United States to operate telecommunications” in the area, and the United States “shall provide and maintain fixed and floating aids to navigation”.

With regard to foreign rela tions, the island states “shall con sult, in the conduct of their foreign affairs,” with the United States. In turn, the United States in the conduct of its own foreign affairs shall consult with the is land states only on matters that it decides are relevant to their interests.

Such provisions clearly give

the United States great latitude with regard to its activities in and future relations with the Mic ronesian states. An examination of the services and subsidies to be rendered by the United States also reveals that they guarantee even further American influence in the islands.

With regard to services, it is specified that the United States shall make available the services and related programs of the U.S.

Weather Service, the U.S. Fed eral Emergency Management Agency, the U.S. Post Reorgan isation Act, the U.S. Federal

Aviation Administration, and the U.S. Civil Aeronautics Board.

The latter three have regulatory as well as service functions, and their continued operation in Mic ronesia will guarantee the United States considerable control over international mail and air trans port services. Maintenence of the weather service has obvious ad vantages for the United States.

Under the Emergency Manage ment Agency, each of the island states will be the equivalent of one of the 50 states of the union and will be eligible for disaster relief upon presidential decree.

In addition to the above, ser vices or grants for services from the United States will be avail able in five other areas: (1) on going energy development pro jects, (2) consultant services in economic development, (3) technical assistance from federal agencies, (4) continued financial support for students enrolled at tertiary institutions as of the ef fective date of the compact, and (5) education and health care grants. However, all services must be contracted from United States federal agencies, and those agencies will be relatively free from the control of the island governments. Further, American personnel engaged in rendering such services will be exempt from customs, visa, and passport

regulations.

With regard to financial sub sidies, an average of no less than 40 per cent of the annual grants

the island governments, the Un ited States can audit the use of American funds.

The financial package is con siderable. If Palau eventually does join the Marshalls and the Federated States of Micronesia and enters into a relationship of free association with the United States, the total of all subsidies for the three island states will be in the neighborhood of SU.S.I billion for the first 15 years of the agreement.

When the history of the United States Trust Territory of the Pacific Islands (USTTPI) is con sidered, the nature of the com pact comes as no surprise. The primary interest of the United States in the USTTPI has always been defence, and this was evi dent from the beginning when it became the only “strategic” trus teeship of the 11 that were created by the United Nations after World War 11. Defence in terests remain paramount, and there continues to be strong sen timent in Congress that the Un ited States must retain military control over the islands. In fact, it is certain that Congress would reject any termination of the trust that did not provide such a guarantee.

It also appears that the nature and the free association arrange ment is acceptable to Australia and New Zealand. A continued American presence in Mic ronesia maintains the status quo in that no new security concerns

“The free association arrangement gives the United States the potential to intervene substantially in the affairs of Micronesia.

But to what extent will this potential be exercised?”

to the Marshalls and Palau are to be committed to capital improve ment and “shall be in accordance with official overall economic plans provided by those govern ments and concurred in by the Government of the United States”. The island states will be required to report annually to the president and United States Con gress on their implementation of plans and use of funds. During the first five years of free associ ation, and in consultation with

are raised about the northern Pacific.

There is no doubt that the free association arrangement gives the United States the potential means to intervene substantially in the affairs of the island states for years to come. The extent to which that potential will be utilised, however, is as yet un certain, and thus the degree to which the Micronesian states will indeed be self-governing remains to be seen. Robert C. Kiste.