Marshall Islands had met with their counterparts from Palau and the Federated States of Micronesia to discuss means of advancing their common interest in air service matters. Recently they had taken the first steps towards the creation of a new air carrier service for the Micronesian region. 107. Also during the period under review, the Marshall Islands had become a member of the Asian Pacific Parliamentarians' Union and the South Pacific Commission (SPC). It had also signed an agreement with the Japanese Government whereby the latter would assist in constructing a fishing base in MajUrO. 108. The Special Adviser stated that the system of government established under the Constitution of 1979 was functioning smoothly. Among other things, the second Nitijela (Leqislature) had taken office and 21 of the 24 local government councils had,been established. The national Government distributed a certain portion of domestically generated revenue to those councils and would assist them in formulating their own five-year development plans in conformity with the objectives of the national plan. -15- 109. The Special Adviser stated that with United Nations assistance, the Government of the Marshall Islands had formulated a five-year development plan, constituting the first phase of a 15-year programme covering the effective period of the compact. It had also sought, with assistance from SEC, to strengthen the statistical base needed for effective policy formulation. The overall objective of the development plan was to enhance the Marshall Islands' economic self-reliance and correct the economy's structural imbalances. His Government hoped that the United Nations would continue to provide technical assistance for development planninq and would also consider allocating separately to the three different political entities the development funds that were currently provided en bloc to the Trust Territory. 110. The Government of the Marshall Islands had reduced its cumulative deficit from 
**Analysis**
The text primarily focuses on the Marshall Islands' government's efforts to advance their economy, infrastructure, and international relations. It mentions the creation of a new air carrier service, membership in international organizations, and development plans, which suggests that the text is related to economic development and infrastructure. Additionally, it touches on the topic of natural resources, specifically fishing, which is another indicator of its relevance to economic development.

**Category**
Economic development, Transport and communication