The Compacts of Free Association for the Republic of the Marshall Islands, and the Federated States of Micronesia have been initialed and submitted to Congress for approval. But they have not yet been approved by Congress. The Palauan Compact has not been submitted to Congress because the United States objects to a section of the Palauan Constitution which declares their territory a nuclear-free zone. That constitutional proviso conflicts with the terms of the proposed Compact of Free Association, and the United States has demanded that it be repealed. The United States has taken the position that unless the offending language in the Palauan Constitution is stricken, the United States would seek to negotiate full independence for the Republic of Palau. The Compacts of Free Association must be approved by the Micronesian peoples, by the Congress of the United States and by the Security Council of the United Nations. WHAT IS A COMPACT OF FEDERAL RELATIONS? A. In the context of Resolution No. 1132, a Compact of Federal Relations is a legally binding agreement between the Virgin Islands and the United States of America which details in precise terms the nature of the relationship that exists between the people of the Virgin Islands and the United States. Presently, the Virgin Islands-United States relationship is based on the Revised Organic Act of 1954, a document over which the people of the Virgin Islands have no control, and which may be unilaterally amended or modified by the United States Congress. The Organic Act, in reality, is a classic territorial document. By contrast, a Compact of Federal Relations negotiated at the behest of the Virgin Islands will be subject to modification only by mutual consent of the Virgin Islands and the United States. WHAT WOULD THE VIRGIN ISLANDS BE CALLED UNDER A "COMPACT OF FEDERAL RELATIONS?" A. The people of the Virgin Islands, through such a Compact of Federal Relations, or by the terms of their constitution, would be free to determine what label should be applied to the Virgin Islands body politic. It is necessary to understand, however, that labels are matters of form, and as such, are really unimportant. What are important are matters of