The US agreed for the first time to negotiate separately with Marshall Islands and Palau delegations.
What happened
Until then the US had negotiated with the territory as one unit, apart from the Marianas’ separate commonwealth talks. That year Peter Rosenblatt, new head of the US status office, held informal meetings that led to the Hilo Principles, and US negotiators dropped their objections to the draft FSM Constitution, allowing the 1978 referendum.
Why it matters
Separate talks opened the way for the Marshalls and Palau to become separate nations.