The Governments of the FSM and the U.S. signed the final version of the Compact of Free Association on October 1, 1982. The Compact went into effect on November 3, 1986, and the FSM became a sovereign nation in free association with the United States. Under the Compact, the U.S. has full authority and responsibility for the defense of the FSM. This security relationship can be changed or terminated by mutual agreement. The Compact provides U.S. grant funds and federal program assistance to the FSM. The basic relationship of free association continues indefinitely, but certain economic and defense provisions of the Compact expire in 2001, subject to renegotiation. Negotiations on extending the Compact began in November 1999.
Disputes - international: none