Sovereignty Undermined

John Haglelgam

The negotiation for the first Compact of Free Association began in 1969 and concluded in 1986. The objectives were to liquidate the United Nations Trusteeship in Micronesia; to grant the wish of Micronesians to control their own political destiny; and, accommodate United States security interests. During the 17 years of negotiations, the Trust Territory was splintered into four separate political entities. The FSM, Marshalls, and Palau opted for the Compact of Free Association and the Northern Mariana Islands became a commonwealth of the United States.

The three freely associated states retain control of domestic and foreign affairs, but delegated security and defense to the United States. The foreign affairs authority is, however, limited by its impact on the United States security and defense obligations. Under the first Compact, the freely associated states achieved a sufficient degree of political independence that they became members of the United Nations and other world and regional bodies. This achievement was possible because the United States was willing to give concessions on its perceived national interest to maximize the exercise of sovereign power by the freely associated states.

For instance, a stringent reporting requirement for utilization of federal grants was imposed, but the freely associated states had more freedom and leeway to decide the actual spending. This minimized the appearance of United States interference in the domestic affairs of the freely associated states. The first Compact was also more concerned about preserving cultures and way of life in the freely associated states. It allowed Micronesians to enter the United States as non-immigrant residents, but it did not extend the same privilege to American citizens.

Under the new Compact of Free Association, the U.S. Comptroller is accorded complete immunity from prosecution for what he does and what he says when auditing the use of funds. The grants provided under the Compact as amended are specifically targeted for six sectors: education, health, private sector development, public sector capacity building, the environment, and public infrastructure.

The FSM has no more flexibility to fund programs outside of the six sectors. This inflexibility of grant utilization will not end with the termination of the amended Compact in 20 years. It extends beyond to the use of the Trust Fund. In addition to this restriction, the Compact as amended establishes a five-member Joint Economic Management Committee to evaluate progress of developments in the targeted six sectors and recommend ways to increase funding effectiveness; and to approve or reject proposed use of the grants by the FSM. This joint committee functions as a sort of super-legislative body to approve and disapprove FSM state and national governments' proposed utilization of the grants. Clearly, this setup seriously erodes the already divided sovereign power of the governments in the FSM; and it brings into question this nation's claim to political independence.

The amended Compact establishes immigration reciprocity for American citizens. They can enter the FSM to find work or just to live without ever applying for a visa. Furthermore, the amended Compact allows an American spouse of a Micronesian citizen to continue to reside in the FSM after their spouse has passed away.

What the first Compact granted to the freely associated states, the amended Compact takes away. The amended Compact diminishes further the exercise of sovereign power and brings into question FSM claims to sovereignty. The Compact as amended achieves its objective of ensuring accountability for utilization of grants, but it seriously erodes the sovereign authority of the FSM. This brings into question the viability of the FSM as an independent country.

John Haglelgam is a former President of the FSM who teaches at the College of Micronesia in Pohnpei.