states retained the right under the compact to change their status. 3. • Palau 4. The Council notes the Administering Authority's position with regard to Palau, namely that, according to the terms of the Palau compact, the approval requirements remained incomplete . The Council understands that this is dueto perceived incompatibilities between the compact and Palau's Constitution. It reiterates the view that it appears to be for the Government s of the United States and Palau to look for a mutually acceptable solution which would make it possible to bring the compact into effect. 4. International relations s. The council is pleased that international contacta by the territorial Governments continue to expand, with the approval and encouragement of the Administering Authority. It is particularly pleased to learn that activities have / ... T/L.1245 English Page 5 been organized in Palau in connection with International Youth Year and that sorne young Palauans will take part in international and regional youth conferences in the course of the Year. 6. The Council acknowledges that the individual entitites are still ineligible for observer status or full membership in certain int~rnational organizations, notably the Asian Development Bank (AsDB) and the Economic and Social commission for Asia and the Pacific (ESCAP). It urges the Administering Authority to facilitate and encourage the territorial Governments to take up membership in these bodies once the Trusteeship Agreement comes toan end. B. ECONOMIC ADVANCEMENT l. Overall economic policy Harmonization of economic development 7. The Council takes note of the fact that economic planning is now the prerogative of the Territory's four constitutional Governments . It notes also that the Federated States of Micronesia and the Marshall Islands have worked out long-term development plans with the assistance of the United Nations Development Programme (UNDP). 8. On this occasion, the Council earnestly hopes, as the representative of one 
**Analysis**
The text appears to be discussing the progress of the Trust Territory of the Pacific Islands, specifically regarding the compact with Palau, international relations, and economic development. It mentions the need for a mutually acceptable solution to bring the compact into effect, international contacts, and economic planning. The tone is more focused on governance and development rather than natural resources, environment, or humanitarian aid.

**Category**
Economic development, International trade