substance (for example, power, rights, obligations, and
 benefits).

 It is wrong to believe that if the Virgin Islands were to be
 designated a "commonwealth" or an "associated state"
 tomorrow they would automatically achieve a superior
 status. As we have seen, the only difference between "pre-
 commonwealth" Puerto Rico and Puerto Rico under
 "commonwealth," is the existence of a local constitution. Nor
 can we forget the three "free associations" of Micronesia.
 Two are called "republics" and one is designed "federated
 states."

 DO WE KNOW WHAT CHANGES IN OUR RELATIONSHIP
 WITH THE UNITED STATES FEDERAL OFFICIALS MAY
 BE WILLING TO CONSIDER?

 A. The People of the Virgin Islands are unquestionably
 entitled to exercise their right of self-determination. We
 cannot accept the idea that self-determination means the
 people of the Virgin Islands must first inquire of federal
 officials what they are willing to consider before the people
 of the Virgin Islands may determine what they want.

 Furthermore, the official position of the United States is that
 the people in the offshore areas have been, and are, free to
 work out political relationships with the United States best
 suited to their circumstances.



Federal Policy On Status Issues
 In 1969 Harrison Loesch, Assistant Secretary of the Interior, speaking at a
conference on the American Territorial System in Washington, D.C. said, "People in
the offshore areas have been, and are, free to work out political relationships with the
United States best suited to their circumstances." This Federal Policy was restated by
President Carter in a 1980 message to Congress in which he wrote, "If any of the
territories desire to modify their political status, they should make their wishes known
to the Secretary of the Interior."

Designation of Virgin Islands Body Politic
 Your Select Committee on Status and Federal Relations has recommended that
a referendum-election be held on November 4, 1986 to enable the people of the Virgin
Islands to choose between Statehood, Independence, Free Association, Incorporated
Territory, Status Quo and Compact of Federal Relations.


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