that the problem of unpaid war claims remained to be settled and that it continued to be a matter of sorne aggravation in the Trust Territory. The Council looked forward to early progress on the matter. In its annual report to the Trusteeship Council, at its fifty-third session, ~/ the Administering Authority had stated that, of the total claims awarded under Title I, pro rata payments of 26.6 per cent had been made since total funding had not yet been made available. 6. According to the 1987 annual report of the Administering Authority, QI budgetary provision oI $12.5 million had been made to pay 50 per cent of the balance due under Title I war claims. 7. In its 1988 and 1989 annual reports, the Administering Authority states that processing of awards was transferred in 1983 from the Trust Territory headquarters to the United States Department of the Interior. During 1988, a system was established to distribute the balance of the $22 million still outstanding and distribution began in that year. The balance due for complete payment of the war claims obligations (about $10 million) was appropriated in the fiscal year 1989 budget and combined with the fiscal year 1988 appropriation. Payment of those claims will close both the Title I and Title II war claims, except for checks that have been returned unnegotiated and redeposited in the United States Treasury. II. POLITICAL ADVANCEMENT A. General political structure 8. The Trust Territory of the Pacific Islands is composed of the Federated States of Micronesia, the Marshall Islands, the Northern Mariana Islands and Palau. The Northern Mariana Islands functioned under Secretarial Order No. 2989, which separated it from the rest of the Trust Territory for administrative purposes. The other three Governments had operated under Secretarial Order No. 3039, as amended, which recognized their constitutional Governments. 
**Analysis**
The text appears to be discussing the administrative and financial aspects of the Trust Territory of the Pacific Islands, specifically the issue of unpaid war claims and the progress made in settling them. It also touches on the political structure of the Trust Territory and its component governments. Given the focus on financial and administrative matters, I hypothesize that the text is most closely related to economic development.

**Category**
Economic development, International trade