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SECRET SYSTEM II THE WHITE HOUSE 90003 SECRET WASHINGTON September 21, 1981 NATIONAL SECURITY DECISION DIRECTIVE NUMBER 10 THE FUTURE POLITICAL STATUS OF MICRONESIA The United States has administered the Trust Territory of the Pacific Islands, generally referred to as Micronesia, since 1947 under a strategic Trusteeship Agreement with the United Nations Security Council. The United States has broad and continuing interests in Micronesia which derive primarily from our strategic defense requirements and treaty commitments; from international considerations, including our philosophical commitment to the right of self-determination and our equiva- lent Trusteeship Agreement obligation; and from agency-specific interests and requirements. The United States has developed self-government in the Trust Territory in accordance with its Trusteeship obligation. Palau, the Marshall Islands and the Federated States of Micronesia (FSM) each has an elected constitutional government. Negoti- ations for a new political status for the Trust Territory have been in progress since 1969 and have been concluded with respect to a fourth component of the Trust Territory, the Northern Mariana Islands, which approved in 1975 a "covenant to Establish the Commonwealth of the Northern Mariana Islands in Political Union with the United States (P.L. 94-241, March 24, 1976) . (U) Since 1970, leaders of Palau, the Marshall Islands and the FSM have consistently advocated a different but still close political relationship with the United States known as free association. This unprecedented political status would ensure the continuation of our vital security and defense rights in Micronesia and, at the same time, recognize the competency of the governments of Palau, the Marshall Islands and the FSM in internal and foreign affairs. This foreign affairs competency is qualified, however, by consultation provisions and a bar against foreign affairs initiatives which the United States unilaterally determines are inconsistent with its security interests. tst This political status is defined in a Compact of Free Association which was initialed by negotiators for the United States and the three Micronesian governments in 1980. The Compact cannot be signed now because only five of the sixteen subsidiary agreements DECLASSIFIED SECRET Review Aug 17, 1987 NLRR F05 043 # 4236 BY CA DOTE 11/8/07 SFCRET