MICRONESIA SIG DOCUMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83B00551R000200070004-7
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 21, 2016
• Document Release Date: July 28, 2008
• Sequence Number: 4
• Publication Date: August 7, 1981
• Content Type: MEMO

~"' ~
August 7, 1.981
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LIMITED OFFICIAL USE
(With SECRET Attachment)
HIEMORANDUM FUR: OVP - Ms. Nancy $earg Dyke
NSC - Mr. Allen Lenz
DOD - N.r. Jay Rixse
JCS - LTG Paul Gorman
? Interior - Mr. Kent Larsen
OiviB - Mr. tivilliar~ Schneiner
UIJA - Amb. Harvey Feldman
Justice - Mr. Henry Habicht
Office of Micronesian Status Negotiations
LTC A. V. Short
SUBJECT: Micronesia SIG Documents
i
Attached are final revisions to the Executive Sun.-nary
of SIGM number 5 and the full text of the -final draft IvSDU.
The revisions bring the texts into conformity with decisions
taken at the SIG. Revised language is bracketed. No revis-
sions. to the body of SIGM Number 5 were necessary.
_ Also attached is a Congressional letter from Repre-
sentative Solarz which arrived after preparation of the SIGt~i
and which will be included with other Congressional corre-
spondence in Appendix A.
Addressees are requested to review the amendments. CisaP--
provals only should be reported by telephone to Mr. Teare at.
343-9143 by COB I+4onday, August 10. No action is required to
report clearance.
The SIG intends to transmit the NSi1D formally to the
White House on Tuesday August 11 if no objection is received.
SIG members will be provided the full set of final documents
at }hat tune.
State Dept. review completed
L. Paul Brera~r, IZI
Executive Secretary
1. F.evised pages of Executive Summary-
2. hSUD text
3. ~ Soiarz letter ~ _
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-- The U.S. should reaffirm its commitment to convert
non-defense-related aids to navigation (buoys) in Micronesia to a
type which can be maintained by the Micronesians within their own
local resources. Funding for this program, currently estimated to
cost $1.5 to"$2 million, should be sought as part of first-year
Compact funding.
-- The U.S. should continue to manage the political status
negotiations with the Micronesian governments through the
interagency Office for Micronesian Status Negotiations as
currently, constituted -- i.e., as an independent element within
the National Security Council system and an appendage of the
Executive Office of the President, staffed and .funded by the
Departments of State and Defense -- and under the active oversight
of an Interdepartmental Group .with representatives of interested
departments and agencies as full members and chaired by a princi-
pal. officer of the Department of State.
-- The U.S. should seek an additional subsidiary agreement or
minute bf understanding in which the Micronesians would accept the
immediate application to them of any legislated change to Section
936 of the Internal Revenue Code. Should this prove impossible,
the fall-back provisions ;3escribed on pages 117-118 of SIGM No. 5
should be considered.
-- The following issues should be made the subject of further
study. by the Micronesia IG, in accordance with the guidelines set
forth on pages 118-121 of SIGM No. 5, and recommendations
resulting from such study should be submitted to the SIG as
required:
(a) Northern Marshall Islands Nuclear Claims;
(b) Plebiscite Ballot on the Compact of Free
Association; .
(c) Phased Implementation of the Compact;-
(e) Encouragement of U.S. investment and involvement in
the Micronesian states. '
[(The following issue remained to be resolved at the meeting
of the Senior Interdepartmental Group on 6 August.)]
With respect to the issue of management of the future rela-.
tionship between the United States and Micronesia (recommendation
(d) on pages 120-121 of SIGM No. 5), the majority of the IG,
including State,, Defense, JCS, Justice, OMB and USUN, believes
that this issue should also be made the subject of `further study
and that no decision should be made until the negotiations are
completed and. the final shape of the new relationship is known.
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Further study should include full consideration of the interna-
tional implications of such a decision and of the views of the
Congress and of the Micronesian governments.
The Department of the Interior differs with the majority
recommendation and would prefer a decision at this time that
Interior be designated to manage the future relationship.
Interior believes it is in the national interest that administra-
tion.of the future relationship with Micronesia be vested in-the
same department that, has responsibility for managing the federal
relationship with other closely-associated entities (i.e., Guam,
American Samoa, the Virgin Islands and the Northern Mariana
Islands;. Interior does not manage the federal relationship with
Puerto Rico, nor does any other department). Interior notes also
that key members. of the Senate Committee on Energy and Natural
Resources and the House Committee.-on Interior and Insular Affairs,
which now have oversight of territorial matters and to which the
Compact of Free Association will presumably be submitted for
approval in the first instance, have expressed their desire that
Interior continue to administer the U.S. relationship with
Micronesia after termination of the Trusteeship.
s~ [(The August 6 SIG successfully resolved this issue. See
NSDD.) ]
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PROPOSED
NATIONAL SECURITY
DECISION DIRECTIVE
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 equivalent Trusteeship Agreement
abligation; 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. Negotiations for a
new political status for the Trust Territory hav-e 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).
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 Micro-
nesia 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.
This political status .is defined in a Compact of Free Asso-
ciation 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 16 subsidiary agreements
which the Compact requires have been negotiated and initialed.
Several of the remaining eleven are as important as the Compact
itself in shaping the free association relationship.
The Trusteeship arrangement has become an anachronism and
does not serve our long-term interests. Further, our interests
are ill-served by continued United Nations review and criticism of
the U.S.-Micronesian relationship. ~ ,5
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United States interests are best served by seeking termin-
ation of the Trusteeship Agreement at the earliest possible date
on terms satisfactory to itself and to the governments of
Micronesia.
The political status of free association, as set forth in the
Compact and the subsidiary agreements so far initialed, meets the.
policy objectives and requirements which derive from our strategic
and other interests. Free association will promote American
interests by:
-- Creating friendly, politically stable relationships
as free of friction as any that can be devised;
Orienting the Micronesians to the United States;
-- Securing firmly United States security and defense
requirements;
-- Helping the Micronesian states to improve their
economic condition and to decrease their dependence on the United
States, and. doing so at a cost lower than continuation of the
Trusteeship; and
-- Providing international legitimacy to the Micronesian
Free association, once approved by the Micronesian peoples in a
plebiscite and by their governments, will be the most effective
guarantor of our enduring interests in this strategically
important area.
Accordingly, this Administration will inform the Micronesian
governments that it accepts the initialed Compact and the
initialed subsidiary agreements as the basis for conclusion of the
political status negotiations, provided-that the remaining
subsidiary agreements are negotiated to mutual satisfaction. This
Administration will also reaffirm its commitment to early
termination of the United Nations Trusteeship Agreement but need
not establish .a deadline for so 8oing.
In the context of the resumed political status negotiations,
the United States will reaffirm its commitment to the expenditure
of approximately $1.9 billion over the initial 15-year period of
free association, as set forth in the intialed Compact and in the
table which appears at page 87a of SIGM No. 5, subject to the
adjustment formula in Section 217 of the Compact. Requests to the
President and the Congress for grant assistance beyond that ,
authorized by the Compact will be considered only under
extraordinary .circumstances. ~ ~~
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In the negotiation of the remaining agreements. subsidiary to
the~Compact, the U.S. negotiators shall:
-- Seek the longest possible period of strategic denial which
is identical for each of the Micronesian states but obtain it for
no less than l00 years,-and seek support of the British and French
governments at a high level for this objective;
-- Seek use of the Kwajalein Missile Range (KMR) for 50
years, but obtain use for no less than 30 years. The negotiators
are authorized to obtain use of KMR for years 31 through 50 on an
option basis.
-- Sezk provisions in the agreements subsidiary to the Compact
.which accord with detailed recommendations e.l. through e.7. on
pages 113 through .116 of SIGM No. 5_.
With respect to related matters not directly covered in the
Compact or its subsidiary agreements:
-= The U.S. will continue to manage the political status
negotiations with the Micronesian governments through the
interagency Office for Micronesian Status Negotiations as
currently constituted as an independent element within the
National Security Council system and an appendage of the Executive
Office of the President headed by a Personal Representative of the
President and staffed and funded by the Departments of State and .
Defense and under the. active oversight of the Interdepartmenta l
Group on Micronesia chaired by a principal officer of the
Department of State.
-- Defense will develop an execution plan which prioritizes
projects and lists management needs in connection with the Palau
infrastructure construction program. Interior will fund the cost
of this plan, currently estimated at $70,000, through its existing
budgetary process. Specific design work will precede construction
and will be funded from Compact funds. .
-- The U.S. will reaffirm its commitment to convert nonde-
fense-related aids to navigation (buoys) in Micronesia to a type
which can~be maintained by the M7cronesians within their own local
resources. Funding for this program, currently estimated to cost
$1.5 to $2 million, is to be included in first-year Compact
funding .
-- The U.S. will seek an additional subsidiary agreement or
minute of understanding in which the Micronesians would accept the
immediate application to them of any legislated change to Section
936 of the Internal Revenue Code. Failing such an_agreement.., U.S.
negotiators may reaffirm Article V o.f Tit,le Two of the Compact.
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-4- .
-- This Administration will establish an interdepartmental
structure consisting of two levels: an interdepartmental policy
steering committee chaired by State, with Defense, JCS, Interior,
OMB and NSC as regular members and with other departments and
agencies participating as subject-matter requires; and an inter-
departmental.professional staff tailored to the requirements of
the new relationship, attached to and headed by State. with depu-
ties from Defense and Interior and with additional personnel
seconded by these and other departments as needed.
-- Details of the organizational structure for management of
the future relationship with the Micronesian states, including
funding arrangements, as well as the additional issues listed on
pages 118 through 121 of SIGM No. 5, will be the subject of future
study and decision.
Directives.
This directive supersedes any. conflicting provisions of
Presidential Directive/NSC 11 of May 5, 1977, Presidential
Directive/NSC 34 of April 7, 1978, Presidential Directive/NSC 49
of June 6, 1979 and the National Security Council Memorandum of
October 8, 1980, but. otherwise reaffirms the contents of those
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