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CONFIDENTIAL SYSTEM II 90383 THE WHITE HOUSE WASHINGTON April 23, 1985 National Security Study Directive 05-85 U.S. Policy toward Oceania (U) Introduction The President has directed a review of the United States Policy toward Oceania. (C) Oceania includes some 10,000 islands with a population of about 5 million people, scattered over 1/6 of the earth's surface, mostly in the Southwest Pacific. During World War II, the U.S. suffered almost 300,000 casualties (killed and wounded) in this area. Since at least 1970, with the exception of some National Security Studies and Directives on the Trust Territories of the Pacific Islands (Micronesia), there has not been a comprehensive interagency study of Oceania, the changes at work there, and the implications for U.S. policy. Our policies toward the area have been made largely incrementally over a period of years. For the most part we have been fortunate in terms of foreign policy interests. Basically pro-Western, most islanders share our respect for decency and human rights and have modeled their institutions on those of Australia, New Zealand and the U.S. 1st Now, the scene in Oceania is changing. In 1970 there were only 3 independent or freely associated states and 16 dependent terri- tories in the region. Today, there are 11 independent or freely associated states and 11 territories. In the next few years, the number of independent or freely associated states will probably increase to 15. Imbedded in the region will be 3 U.S. territories and 7 small U.S. insular possessions. (e) The comfortable, unchallenged situation we have enjoyed for so long is giving way to a situation where we face increasing problems. In addition to the drive for independence by the remaining dependencies, there are other important forces of change at work in the region. (6) The establishment of the 200-mile Exclusive Economic Zones (EEZ) has greatly altered the strategic map of the area, increasing the importance of these island nations, which (with these zones) now form a great bloc across the Central and South Pacific. 101 Partially Declassified/Released on 6/6/94 under provisions of E.0. 12958 CONFIDENTIAL by 0 Van Tascel. Security Counci! F88- 712 Declassify on: OADR COPY that 17 COPIES CONFIDENTIAL INCLASSIFIED