The National flag of the Federated States of Micronesia (FSM) was adopted on 10 November 1979.
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The blue field of the flag of Micronesia represents the Pacific Ocean, while the four stars represent the states in the federation: Chuuk, Pohnpei, Kosrae and Yap.
A similar design with six stars was in use from 1965 for the flag of the Trust Territory of the Pacific Islands. Kosrae was then part of Pohnpei so both were represented by one star. The three extra stars representing Palau, the Marshall Islands and Northern Mariana, which chose not to participate in the Federation. The flag, adopted in 1978, is in the colours of the UN flag. The light blue also represents the Pacific Ocean. In an echo of US practice, the stars represent the 4 islands, arranged like the points of the compass. Wikipedia