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In 1989 the Center on Education and Training for Employment at Ohio State University was asked by the government of the Federated States of Micronesia (FSM) to conduct a study on the postsecondary educational system within the FSM. During the course of the study, the survey team's postsecondary specialist visited community college campuses and centers for continuing education throughout the Pacific rim, including the Republic of the Marshall Islands, the FSM, and the Republic of Palau, the three nations which maintain a treaty operating the College of Micronesia's multi-campus sites. During these visits, over 102 people were interviewed, including college administrators, teachers, students, state government officials, national government officials, and and off-island educators. Areas examined by the study included financing of current postsecondary programs including community college funding, scholarships, and Pell grants. Also examined were interviewee concerns and observations regarding eight basic issues for the FSM, including the three nation treaty, college governance, the predominant role of foreigners in skilled occupations, the need for and financing of a four-year institution, and private sector economic development. Recommendations emerging from the study included development of an articulation plan, continued support for the three nation treaty, redefinition of the mission and policies of the community college system, and improvement of scholarship fund management. Appendixes suggest goals and powers of the board of regents, duties and responsibilities of the advisory board and the advisory committee, and governance structure. (JMC)