The Compact of Free Association, enacted on November 3, 1986, marked a pivotal moment in the political history of the Federated States of Micronesia and the Marshall Islands. The agreement was negotiated in the backdrop of the Trust Territory of the Pacific Islands, which was administered by the United States after World War II. Following a long period of discussions aimed at self-determination, the Compact emerged as a viable solution that balanced the desire for independence with the need for continued U.S. support.Under the Compact, both entities were allowed to adopt their own constitutions and conduct internal affairs without U.S. interference. However, the United States retained certain strategic military rights and responsibilities, including the right to defend both nations, effectively allowing its military to maintain a presence in the Pacific region. This relationship was underscored by a significant financial assistance package, which aimed to bolster the economies of these newly independent states.The Compact also represented a broader context of decolonization during the late 20th century, where many nations were seeking to shake off colonial legacies and establish self-governing structures. The enactment of the Compact was significant not only for the political future of the Federated States of Micronesia and the Marshall Islands but also for the United States, as it reaffirmed its geopolitical influence in the Pacific, particularly during the Cold War. This new political arrangement represented a unique blend of sovereignty and strategic alliance, shaping the future of U.S. relations in the Pacific region.