Summary: GAO testified on several aspects of U.S.-territorial relations, specifically: (1) the background and history of U.S. territorial policy; (2) the extent to which U.S. foreign and domestic policies consider the potential impact on the territories; and (3) whether federal policies are meeting U.S. policy objectives and territorial needs. GAO found that: (1) while some of the territories are currently reexamining their relationship with the United States, the federal government has adopted a flexible approach in dealing with the political aspirations of territorial inhabitants and, as a result, each territory has freely chosen different types of political status based on its unique characteristics and needs; (2) although the United States has consistently encouraged economic independence in the territories and has provided financial and technical assistance amounting to millions of dollars, most of the territories have made limited progress toward economic self-reliance; and (3) significant increases in economic self-reliance remain unlikely in the foreseeable future because many indigenous constraints limit access to outside investment. GAO also found that: (1) the federal government has not established a policy on how the territories should be treated in formulating and extending laws and programs; (2) many of the territories continue to view the Compact of Free Association as a potential alternative in defining future federal-territorial relations; and (3) as the territories have become increasingly self-governing, there has been a significant increase in the number of federal agencies involved in programs and decisionmaking and a shift in the Department of the Interior's role from a direct administrative authority to a territorial advocate.
