Article III of the Constitution of the Federated States of Micronesia provides the basis for nationality law, while specific provisions are elaborated in 7 FSMC § 201 et seq.
[9] Though claimed by Spain, the Caroline, Gilbert, and Marshall Islands remained mostly autonomous until 1874, when the Spanish attempted to reassert their authority there.
Spain retained control of the Carolines by granting Germany the right to trade and establish naval stations in the territory.
[17] The following year, Germany and Britain signed the Anglo-German Declarations about the Western Pacific Ocean to establish terms of their interaction and delineate the territories with which each was aligned.
[25][26][27] Upon acquiring the Carolines in 1899, administrators did not impose demands or control in the islands, allowing traditional chiefs to exercise their authority and avoiding actions that might create military conflict.
[31][32] At the outbreak of World War I, Japan joined the Allies and began an offensive to capture the German possessions in the Pacific.
[33] By October 1914, Japanese troops had occupied the islands of Kosrae, Pohnpei, and Truk and during their occupation maintained the German administrative system.
[34] At the end of the war, under terms of the Treaty of Versailles, Japan was granted the South Seas Mandate in 1919, which included the Caroline, Mariana, Marshall, and Palau islands.
Lacking specific lineage from a Japanese parent or extraordinary service to Japan, the interior minister denied almost every request for naturalization for fifty years after the 1899 law was passed.
There was no uniform system of determining which law was applicable in different jurisdictions,[44] but in general Orders of the Privy Council (Japanese: chokurei) enacted by the National Diet were not enforced by the South Seas Bureau.
[45] On the other hand, organic laws (Japanese: kansei) were written specifically to define the relationship between all institutions and the Colonial Office, as well as the local and national governments.
[49] By the mid-1930s the Japanese government abandoned the pretense of developing the Pacific islands for the benefit of the inhabitants and began building a series of fortifications in the region, planning for expansion in Southeast Asia.
[50] The substantial number of garrisons erected prolonged the conflicts during World War II (1939–1945), as the allied forces opted for a strategy of retaking island possessions rather than a direct strike on Japan.
[53] At the end of the war, the United States proposed retaining control over the former Japanese-mandated islands for security purposes.
[55][56] The Trust Territory was managed by the navy until 1951, at which time administration was passed to the United States Department of the Interior.
[59][60] From 1969, the United States and representatives of the Trust Territory began negotiations to develop systems to terminate the trusteeship and provide pathways to independence.
[62] For Micronesia, negotiations granted islanders the right to self-determination, including control of their land, determining their own constitution, and terminating or retaining a relationship with the United States.
[70] A plebiscite was held in 1983, wherein inhabitants in the Federated States of Micronesia accepted the compact, which would go into force, terminating the trustee relationship, in 1986.
[72] When put to a referendum during the 2005 elections, however, this amendment failed to garner the 75% support in the popular vote that it required in order to become effective.
[76] 7 FSMC § 204 requires "Congress' recommendation by bill" prior to the President naturalizing a person as a citizen of the Federated States of Micronesia.