MICRONESIAN STATUS NEGOTIATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP97M00248R000400830001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: October 18, 2010
• Sequence Number: 1
• Publication Date: June 6, 1979
• Content Type: MEMO

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 Sanitized Copy Approved for Release 2010/12/27: CIA-RDP97M00248R000400830001-5
June 6, 1979
Presidential Directive/NSC-49
The Vice President
The Secretary of State
The Secretary of Defense
ALSO: The Attorney General
The Secretary of the Interior
The Secretary of Commerce
The Secretary of Transportation
The Director, Office of Management and Budget
The United States Representative to the
United Nations
The Director of Central Intelligence
The Chairman, Joint Chiefs of Staff
The Office of Micronesian Status Negotiations
SUBJECT: Micronesian Status Negotiations (C)
The President has reviewed the recommendations of the Micronesia Inter-
agency Group and has directed that the following financial arrangements
replace the itemized list in PD/NSC-11. Aside from these modifications,
the negotiating guidelines in PD/NSC-11 and PD/NSC-34 remain in force. (C)
The Chief Negotiator is authorized to offer the following financial assis-
tance, with-the understanding''that such assistance is contingent on' the
ultimate approval. by the U. S. Congress: (S)
1. No more than a $75 million annual average in grant assistance for
the first fifteen years after trusteeship termination. (S)
2. No more than $10 million annually for exclusive U. S. use of all
land, water.s, and airspace required by the Kwajalein Missile Range and its
activities for no less than 15 years. (S)
3. $3 million annually for a U. S. contribution to a scholarship fund
to finance post-secondary education of citizens of the three Micronesian
entities i institutions. Continue-eligibility after trusteeship
termination so that those then enrolled in U. S. universities may finish
their studies. (S)
Classified by Zhgniew Brzezinski
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4. $1 million annually for fishery zone surveillance and enforcement
and a $2 million one-time grant, either prior to or after termination, for
the capital investment necessary for this program. (S)
5. The dollar value annually of the Federal categorical health
services and medical assistance programs applied to the Trust Territory of
the Pacific Islands during the calendar year immediately preceding the
termination date of the trusteeship (limited to $2 million annually). (S)
6. The negotiator may commit up to $110 million annually for the
first five years for the above five items with commensurately lower annual
sums for the next ten years in order to maintain a 15-year annual average
of $91 million. (S)
7. U. S. Postal, weather, FAA, CAB, and Communication Management
services at the levels equivalent to those applicable to the Trust Territory
of the Pacific Islands during the calendar year immediately preceding the
termination date of the trusteeship. The Micronesia Interagency Group is
authorized to approve the extension of limited additional U. S. technical
services of like character on a case-by-case basis. (S)
8. A U. S. commitment to completion of specific construction projects
and to the use of military construction units (such as military Civil
Action Teams in Palau) in lieu of direct cash grants for construction use.
in Palau is contingent on securing land use arrangements there. This is to
be funded from the overall yearly grant. (S)
9. $15 million as a one-time transitional grant for relocation of the
Trust Territory headquarters, to be negotiated by the High Commissioner and
channeled through the Department of the Interior budget. This should be
allocated for use before the trusteeship ends. (S)
10. No more than $750,000 to be spent by
convert eighteen specified buoys in the Trust
the U.. S.
Territory
Coast Guard to
to civilian use.
(S)
11. To accord special tax treatment to investment in Mirconesia by
U. S. persons and special tax treatment of U. S. income derived by
Micronesian persons. (S) %
12. A U. S. commitment to provide disaster relief to the extent
currently provided. (S)
13. The $3 million one-time payment previously authorized for Palau
land leases is eliminated. The military land-and operating rights required
for U. S. defense purposes in Palau will be furnished without additional
compensation as part of the overall economic package. (S)
SECRET
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14. Funding during the 15-year period of free association shall be
.adjusted for inflation as follows:
-- Annual adjustment of the lesser of the change in the Gross
National Product Implicit Price Deflator or 3 percent.
-- Adjustment would be measured additively, not compounded.
The base number to be adjusted would be the amount originally
authorized for the year in question.
-- Adjustment. would commence in the sixth year.
-- There shall not be a review of financial. arrangements at
five-year intervals. (S)
15. On the subject of claims resulting from the U. S. nuclear weapons,
testing program in the.Northern Marshall Islands, the President has deferred
his decision. A single memo containing views of all agencies should be
submitted expeditiously. (S)
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