[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 63 Enrolled Bill (ENR)]

        H.J.Res.63

                       One Hundred Eighth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
           the seventh day of January, two thousand and three


                            Joint Resolution


 
  To approve the Compact of Free Association, as amended, between the 
  Government of the United States of America and the Government of the 
Federated States of Micronesia, and the Compact of Free Association, as 
amended, between the Government of the United States of America and the 
 Government of the Republic of the Marshall Islands, and to appropriate 
                funds to carry out the amended Compacts.

Whereas the United States (in accordance with the Trusteeship Agreement 
  for the Trust Territory of the Pacific Islands, the United Nations 
  Charter, and the objectives of the international trusteeship system 
  of the United Nations) fulfilled its obligations to promote the 
  development of the people of the Trust Territory toward self-
  government or independence as appropriate to the particular 
  circumstances of the Trust Territory and its peoples and the freely 
  expressed wishes of the peoples concerned;

Whereas the United States, the Federated States of Micronesia, and the 
  Republic of the Marshall Islands entered into the Compact of Free 
  Association set forth in title II of Public Law 99-239, January 14, 
  1986, 99 Stat. 1770, to create and maintain a close and mutually 
  beneficial relationship;

Whereas the United States, in accordance with section 231 of the 
  Compact of Free Association entered into negotiations with the 
  Governments of the Federated States of Micronesia and the Republic of 
  the Marshall Islands to provide continued United States assistance 
  and to reaffirm its commitment to this close and beneficial 
  relationship; and

Whereas these negotiations, in accordance with section 431 of the 
  Compact, resulted in the ``Compact of Free Association, as amended 
  between the Government of the United States of America and the 
  Government of the Federated States of Micronesia'', and the ``Compact 
  of Free Association, as amended between the Government of the United 
  States of America and the Government of the Republic of the Marshall 
  Islands'', which, together with their related agreements, were signed 
  by the Government of the United States and the Governments of the 
  Federated States of Micronesia and the Republic of the Marshall 
  Islands on May 14, and April 30, 2003, respectively: Now, therefore, 
  be it

    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This joint resolution, together with the table of 
contents in subsection (b) of this section, may be cited as the 
``Compact of Free Association Amendments Act of 2003''.
    (b) Table of Contents.--The table of contents for this joint 
resolution is as follows:
Sec. 1. Short title and table of contents.

      TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT; 
  INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND 
                U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS

Sec. 101. Approval of U.S.-FSM Compact of Free Association and the U.S.-
          RMI Compact of Free Association; references to subsidiary 
          agreements or separate agreements.
    (a) Federated States of Micronesia.
    (b) Republic of the Marshall Islands.
    (c) References to the Compact, the U.S.-FSM Compact and the U.S.-RMI 
          Compact; References to Subsidiary Agreements or Separate 
          Agreements.
    (d) Amendment, Change, or Termination in the U.S.-FSM Compact, the 
          U.S.-RMI Compact and Certain Agreements.
    (e) Subsidiary Agreements Deemed Bilateral.
    (f) Entry Into Force of Future Amendments to Subsidiary Agreements.
Sec. 102. Agreements With Federated States of Micronesia.
    (a) Law Enforcement Assistance.
    (b) Agreement on Audits.
Sec. 103. Agreements With and Other Provisions Related to the Republic 
          of the Marshall Islands.
    (a) Law Enforcement Assistance.
    (b) EJIT.
    (c) Section 177 Agreement.
    (d) Nuclear Test Effects.
    (e) Espousal Provisions.
    (f) DOE Radiological Health Care Program; USDA Agricultural and Food 
          Programs.
    (g) Rongelap.
    (h) Four Atoll Health Care Program.
    (i) Enjebi Community Trust Fund.
    (j) Bikini Atoll Cleanup.
    (k) Agreement on Audits.
    (l) Kwajalein.
Sec. 104. Interpretation of and United States Policy Regarding U.S.-FSM 
          Compact and U.S.-RMI Compact.
    (a) Human Rights.
    (b) Immigration and Passport Security.
    (c) Nonalienation of Lands.
    (d) Nuclear Waste Disposal.
    (e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact on the 
          State of Hawaii, Guam, the Commonwealth of the Northern 
          Mariana Islands and American Samoa; Related Authorization and 
          Continuing Appropriation.
    (f) Foreign Loans.
    (g) Sense of Congress Concerning Funding of Public Infrastructure.
    (h) Reports and Reviews.
    (i) Construction of Section 141(f).
    (j) Inflation Adjustment.
    (k) Participation by Secondary Schools in the Armed Services 
          Vocational Aptitude Battery (ASVAB) Student Testing Program.
Sec. 105. Supplemental Provisions.
    (a) Domestic Program Requirements.
    (b) Relations With the Federated States of Micronesia and the 
          Republic of the Marshall Islands.
    (c) Continuing Trust Territory Authorization.
    (d) Survivability.
    (e) Noncompliance Sanctions; Actions Incompatible With United States 
          Authority.
    (f) Continuing Programs and Laws.
    (g) College of Micronesia.
    (h) Trust Territory Debts to U.S. Federal Agencies.
    (i) Judicial Training.
    (j) Technical Assistance.
    (k) Prior Service Benefits Program.
    (l) Indefinite Land Use Payments.
    (m) Communicable Disease Control Program.
    (n) User Fees.
    (o) Treatment of Judgments of Courts of the Federated States of 
          Micronesia, the Republic of the Marshall Islands, and the 
          Republic of Palau.
    (p) Establishment of Trust Funds; Expedition of Process.
Sec. 106. Construction Contract Assistance.
    (a) Assistance to U.S. Firms.
    (b) Authorization of Appropriations.
Sec. 107. Prohibition.
Sec. 108. Compensatory Adjustments.
    (a) Additional Programs and Services.
    (b) Further Amounts.
Sec. 109. Authorization and Continuing Appropriation.
Sec. 110. Payment of Citizens of the Federated States of Micronesia, the 
          Republic of the Marshall Islands, and the Republic of Palau 
          Employed by the Government of the United States in the 
          Continental United States.

  TITLE II--COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED STATES OF 
           MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS

Sec. 201. Compacts of Free Association, as Amended Between the 
          Government of the United States of America and the Government 
          of the Federated States of Micronesia and Between the 
          Government of the United States of America and the Government 
          of the Republic of the Marshall Islands.

    (a) Compact of Free Association, as Amended, Between the Government 
          of the United States of America and the Government of the 
          Federated States of Micronesia.

                    Title One--Governmental Relations

    Article I--Self-Government.
    Article II--Foreign Affairs.
    Article III--Communications.
    Article IV--Immigration.
    Article V--Representation.
    Article VI--Environmental Protection.
    Article VII--General Legal Provisions.

                      Title Two--Economic Relations

    Article I--Grant Assistance.
    Article II--Services and Program Assistance.
    Article III--Administrative Provisions.
    Article IV--Trade.
    Article V--Finance and Taxation.

               Title Three--Security and Defense Relations

    Article I--Authority and Responsibility.
    Article II--Defense Facilities and Operating Rights.
    Article III--Defense Treaties and International Security Agreements.
    Article IV--Service in Armed Forces of the United States.
    Article V--General Provisions.

                     Title Four--General Provisions

    Article I--Approval and Effective Date.
    Article II--Conference and Dispute Resolution.
    Article III--Amendment.
    Article IV--Termination.
    Article V--Survivability.
    Article VI--Definition of Terms.
    Article VII--Concluding Provisions.

    (b) Compact of Free Association, as Amended, Between the Government 
          of the United States of America and the Government of the 
          Republic of the Marshall Islands.

                    Title One--Governmental Relations

    Article I--Self-Government.
    Article II--Foreign Affairs.
    Article III--Communications.
    Article IV--Immigration.
    Article V--Representation.
    Article VI--Environmental Protection.
    Article VII--General Legal Provisions.

                      Title Two--Economic Relations

    Article I--Grant Assistance.
    Article II--Services and Program Assistance.
    Article III--Administrative Provisions.
    Article IV--Trade.
    Article V--Finance and Taxation.

               Title Three--Security and Defense Relations

    rticle I--Authority and Responsibility.
    Article II--Defense Facilities and Operating Rights.
    Article III--Defense Treaties and International Security Agreements.
    Article IV--Service in Armed Forces of the United States.
    Article V--General Provisions.

                     Title Four--General Provisions

    Article I--Approval and Effective Date.
    Article II--Conference and Dispute Resolution.
    Article III--Amendment.
    Article IV--Termination.
    Article V--Survivability.
    Article VI--Definition of Terms.
    Article VII--Concluding Provisions.

      TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT; 
 INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND 
               U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS

SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSOCIATION AND THE 
              U.S.-RMI COMPACT OF FREE ASSOCIATION; REFERENCES TO 
              SUBSIDIARY AGREEMENTS OR SEPARATE AGREEMENTS.

    (a) Federated States of Micronesia.--The Compact of Free 
Association, as amended with respect to the Federated States of 
Micronesia and signed by the United States and the Government of the 
Federated States of Micronesia and set forth in Title II (section 
201(a)) of this joint resolution, is hereby approved, and Congress 
hereby consents to the subsidiary agreements and amended subsidiary 
agreements listed in section 462 of the U.S.-FSM Compact. Subject to 
the provisions of this joint resolution, the President is authorized to 
agree, in accordance with section 411 of the U.S.-FSM Compact, to an 
effective date for and thereafter to implement such U.S.-FSM Compact.
    (b) Republic of the Marshall Islands.--The Compact of Free 
Association, as amended with respect to the Republic of the Marshall 
Islands and signed by the United States and the Government of the 
Republic of the Marshall Islands and set forth in Title II (section 
201(b)) of this joint resolution, is hereby approved, and Congress 
hereby consents to the subsidiary agreements and amended subsidiary 
agreements listed in section 462 of the U.S.-RMI Compact. Subject to 
the provisions of this joint resolution, the President is authorized to 
agree, in accordance with section 411 of the U.S.-RMI Compact, to an 
effective date for and thereafter to implement such U.S.-RMI Compact.
    (c) References to the Compact, the U.S.-FSM Compact, and the U.S.-
RMI Compact; References to Subsidiary Agreements or Separate 
Agreements.--
        (1) Any reference in this joint resolution (except references 
    in Title II) to ``the Compact'' shall be treated as a reference to 
    the Compact of Free Association set forth in title II of Public Law 
    99-239, January 14, 1986, 99 Stat. 1770. Any reference in this 
    joint resolution to the ``U.S.-FSM Compact'' shall be treated as a 
    reference to the Compact of Free Association, as amended between 
    the Government of the United States of America and the Government 
    of the Federated States of Micronesia and set forth in Title II 
    (section 201(a)) of this joint resolution. Any reference in this 
    joint resolution to the ``U.S.-RMI Compact'' shall be treated as a 
    reference to the Compact of Free Association, as amended between 
    the Government of the United States of America and the Government 
    of the Republic of the Marshall Islands and set forth in Title II 
    (section 201(b)) of this joint resolution.
        (2) Any reference to the term ``subsidiary agreements'' or 
    ``separate agreements'' in this joint resolution shall be treated 
    as a reference to agreements listed in section 462 of the U.S.-FSM 
    Compact and the U.S.-RMI Compact, and any other agreements that the 
    United States may from time to time enter into with either the 
    Government of the Federated States of Micronesia or the Government 
    of the Republic of the Marshall Islands, or with both such 
    governments in accordance with the provisions of the U.S.-FSM 
    Compact and the U.S.-RMI Compact.
    (d) Amendment, Change, or Termination in the U.S.-FSM Compact and 
U.S.-RMI Compact and Certain Agreements.--
        (1) Any amendment, change, or termination by mutual agreement 
    or by unilateral action of the Government of the United States of 
    all or any part of the U.S.-FSM Compact or U.S.-RMI Compact shall 
    not enter into force until after Congress has incorporated it in an 
    Act of Congress.
        (2) The provisions of paragraph (1) shall apply--
            (A) to all actions of the Government of the United States 
        under the U.S.-FSM Compact or U.S.-RMI Compact including, but 
        not limited to, actions taken pursuant to sections 431, 441, or 
        442;
            (B) to any amendment, change, or termination in the 
        Agreement Between the Government of the United States and the 
        Government of the Federated States of Micronesia Regarding 
        Friendship, Cooperation and Mutual Security Concluded Pursuant 
        to Sections 321 and 323 of the Compact of Free Association 
        referred to in section 462(a)(2) of the U.S.-FSM Compact and 
        the Agreement Between the Government of the United States and 
        the Government of the Marshall Islands Regarding Mutual 
        Security Concluded Pursuant to Sections 321 and 323 of the 
        Compact of Free Association referred to in section 462(a)(5) of 
        the U.S.-RMI Compact;
            (C) to any amendment, change, or termination of the 
        agreements concluded pursuant to Compact section 177, and 
        section 215(a) of the U.S.-FSM Compact and section 216(a) of 
        the U.S.-RMI Compact, the terms of which are incorporated by 
        reference into the U.S.-FSM Compact and the U.S.-RMI Compact; 
        and
            (D) to the following subsidiary agreements, or portions 
        thereof:
                (i) Articles III, IV, and X of the agreement referred 
            to in section 462(b)(6) of the U.S.-RMI Compact.
                (ii) Article III and IV of the agreement referred to in 
            section 462(b)(6) of the U.S.-FSM Compact.
                (iii) Articles VI, XV, and XVII of the agreement 
            referred to in section 462(b)(7) of the U.S.-FSM Compact 
            and U.S.-RMI Compact.
    (e) Subsidiary Agreements Deemed Bilateral.--For purposes of 
implementation of the U.S.-FSM Compact and the U.S.-RMI Compact and 
this joint resolution, the Agreement Concluded Pursuant to Section 234 
of the Compact of Free Association and referred to in section 462(a)(1) 
of the U.S.-FSM Compact and section 462(a)(4) of the U.S.-RMI Compact 
shall be deemed to be a bilateral agreement between the United States 
and each other party to such subsidiary agreement. The consent or 
concurrence of any other party shall not be required for the 
effectiveness of any actions taken by the United States in conjunction 
with either the Federated States of Micronesia or the Republic of the 
Marshall Islands which are intended to affect the implementation, 
modification, suspension, or termination of such subsidiary agreement 
(or any provision thereof) as regards the mutual responsibilities of 
the United States and the party in conjunction with whom the actions 
are taken.
    (f) Entry Into Force of Future Amendments to Subsidiary 
Agreements.--No agreement between the United States and the government 
of either the Federated States of Micronesia or the Republic of the 
Marshall Islands which would amend, change, or terminate any subsidiary 
agreement or portion thereof, other than those set forth in subsection 
(d) of this section shall enter into force until 90 days after the 
President has transmitted such agreement to the President of the Senate 
and the Speaker of the House of Representatives together with an 
explanation of the agreement and the reasons therefor. In the case of 
the agreement referred to in section 462(b)(3) of the U.S.-FSM Compact 
and the U.S.-RMI Compact, such transmittal shall include a specific 
statement by the Secretary of Labor as to the necessity of such 
amendment, change, or termination, and the impact thereof.

SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MICRONESIA.

    (a) Law Enforcement Assistance.--Pursuant to sections 222 and 224 
of the U.S.-FSM Compact, the United States shall provide non-
reimbursable technical and training assistance as appropriate, 
including training and equipment for postal inspection of illicit drugs 
and other contraband, to enable the Government of the Federated States 
of Micronesia to develop and adequately enforce laws of the Federated 
States of Micronesia and to cooperate with the United States in the 
enforcement of criminal laws of the United States. Funds appropriated 
pursuant to section 105(j) of this title may be used to reimburse State 
or local agencies providing such assistance.
    (b) Agreement on Audits.--The Comptroller General (and his duly 
authorized representatives) shall have the authorities necessary to 
carry out his responsibilities under section 232 of the U.S.-FSM 
Compact and the agreement referred to in section 462(b)(4) of the U.S.-
FSM Compact, including the following authorities:
        (1) General authority of the comptroller general to audit.--
            (A) The Comptroller General of the United States (and his 
        duly authorized representatives) shall have the authority to 
        audit--
                (i) all grants, program assistance, and other 
            assistance provided to the Government of the Federated 
            States of Micronesia under Articles I and II of Title Two 
            of the U.S.-FSM Compact; and
                (ii) any other assistance provided by the Government of 
            the United States to the Government of the Federated States 
            of Micronesia.
        Such authority shall include authority for the Comptroller 
        General to conduct or cause to be conducted any of the audits 
        provided for in section 232 of the U.S.-FSM Compact. The 
        authority provided in this paragraph shall continue for at 
        least three years after the last such grant has been made or 
        assistance has been provided.
            (B) The Comptroller General (and his duly authorized 
        representatives) shall also have authority to review any audit 
        conducted by or on behalf of the Government of the United 
        States. In this connection, the Comptroller General shall have 
        access to such personnel and to such records, documents, 
        working papers, automated data and files, and other information 
        relevant to such review.
        (2) Comptroller general access to records.--
            (A) In carrying out paragraph (1), the Comptroller General 
        (and his duly authorized representatives) shall have such 
        access to the personnel and (without cost) to records, 
        documents, working papers, automated data and files, and other 
        information relevant to such audits. The Comptroller General 
        may duplicate any such records, documents, working papers, 
        automated data and files, or other information relevant to such 
        audits.
            (B) Such records, documents, working papers, automated data 
        and files, and other information regarding each such grant or 
        other assistance shall be maintained for at least five years 
        after the date such grant or assistance was provided and in a 
        manner that permits such grants, assistance, and payments to be 
        accounted for distinct from any other funds of the Government 
        of the Federated States of Micronesia.
        (3) Status of comptroller general representatives.--The 
    Comptroller General and his duly authorized representatives shall 
    be immune from civil and criminal process relating to words spoken 
    or written and all acts performed by them in their official 
    capacity and falling within their functions, except insofar as such 
    immunity may be expressly waived by the Government of the United 
    States. The Comptroller General and his duly authorized 
    representatives shall not be liable to arrest or detention pending 
    trial, except in the case of a grave crime and pursuant to a 
    decision by a competent judicial authority, and such persons shall 
    enjoy immunity from seizure of personal property, immigration 
    restrictions, and laws relating to alien registration, 
    fingerprinting, and the registration of foreign agents. Such 
    persons shall enjoy the same taxation exemptions as are set forth 
    in Article 34 of the Vienna Convention on Diplomatic Relations. The 
    privileges, exemptions and immunities accorded under this paragraph 
    are not for the personal benefit of the individuals concerned but 
    are to safeguard the independent exercise of their official 
    functions. Without prejudice to those privileges, exemptions and 
    immunities, it is the duty of all such persons to respect the laws 
    and regulations of the Government of the Federated States of 
    Micronesia.
        (4) Audits defined.--As used in this subsection, the term 
    ``audits'' includes financial, program, and management audits, 
    including determining--
            (A) whether the Government of the Federated States of 
        Micronesia has met the requirements set forth in the U.S.-FSM 
        Compact, or any related agreement entered into under the U.S.-
        FSM Compact, regarding the purposes for which such grants and 
        other assistance are to be used; and
            (B) the propriety of the financial transactions of the 
        Government of the Federated States of Micronesia pursuant to 
        such grants or assistance.
        (5) Cooperation by federated states of micronesia.--The 
    Government of the Federated States of Micronesia will cooperate 
    fully with the Comptroller General of the United States in the 
    conduct of such audits as the Comptroller General determines 
    necessary to enable the Comptroller General to fully discharge his 
    responsibilities under this joint resolution.

SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RELATED TO THE REPUBLIC 
              OF THE MARSHALL ISLANDS.

    (a) Law Enforcement Assistance.--Pursuant to sections 222 and 224 
of the U.S.-RMI Compact, the United States shall provide non-
reimbursable technical and training assistance as appropriate, 
including training and equipment for postal inspection of illicit drugs 
and other contraband, to enable the Government of the Marshall Islands 
to develop and adequately enforce laws of the Marshall Islands and to 
cooperate with the United States in the enforcement of criminal laws of 
the United States. Funds appropriated pursuant to section 105(j) of 
this title may be used to reimburse State or local agencies providing 
such assistance.
    (b) Ejit.--
        (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that the President of the United States 
    shall negotiate with the Government of the Marshall Islands an 
    agreement whereby, without prejudice as to any claims which have 
    been or may be asserted by any party as to rightful title and 
    ownership of any lands on Ejit, the Government of the Marshall 
    Islands shall assure that lands on Ejit used as of January 1, 1985, 
    by the people of Bikini, will continue to be available without 
    charge for their use, until such time as Bikini is restored and 
    inhabitable and the continued use of Ejit is no longer necessary, 
    unless a Marshall Islands court of competent jurisdiction finally 
    determines that there are legal impediments to continued use of 
    Ejit by the people of Bikini.
        (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that if the impediments described in 
    paragraph (1) do arise, the United States will cooperate with the 
    Government of the Marshall Islands in assisting any person 
    adversely affected by such judicial determination to remain on 
    Ejit, or in locating suitable and acceptable alternative lands for 
    such person's use.
        (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that paragraph (1) shall not be applied in a 
    manner which would prevent the Government of the Marshall Islands 
    from acting in accordance with its constitutional processes to 
    resolve title and ownership claims with respect to such lands or 
    from taking substitute or additional measures to meet the needs of 
    the people of Bikini with their democratically expressed consent 
    and approval.
    (c) Section 177 Agreement.--
        (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that in furtherance of the purposes of 
    Article I of the Subsidiary Agreement for Implementation of Section 
    177 of the Compact, the payment of the amount specified therein 
    shall be made by the United States under Article I of the Agreement 
    between the Government of the United States and the Government of 
    the Marshall Islands for the Implementation of section 177 of the 
    Compact (hereafter in this subsection referred to as the ``Section 
    177 Agreement'') only after the Government of the Marshall Islands 
    has notified the President of the United States as to which 
    investment management firm has been selected by such Government to 
    act as Fund Manager under Article I of the Section 177 Agreement.
        (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that in the event that the President 
    determines that an investment management firm selected by the 
    Government of the Marshall Islands does not meet the requirements 
    specified in Article I of the Section 177 Agreement, the United 
    States shall invoke the conference and dispute resolution 
    procedures of Article II of Title Four of the Compact. Pending the 
    resolution of such a dispute and until a qualified Fund Manager has 
    been designated, the Government of the Marshall Islands shall place 
    the funds paid by the United States pursuant to Article I of the 
    Section 177 Agreement into an interest-bearing escrow account. Upon 
    designation of a qualified Fund Manager, all funds in the escrow 
    account shall be transferred to the control of such Fund Manager 
    for management pursuant to the Section 177 Agreement.
        (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that if the Government of the Marshall 
    Islands determines that some other investment firm should act as 
    Fund Manager in place of the firm first (or subsequently) selected 
    by such Government, the Government of the Marshall Islands shall so 
    notify the President of the United States, identifying the firm 
    selected by such Government to become Fund Manager, and the 
    President shall proceed to evaluate the qualifications of such 
    identified firm.
        (4) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that at the end of 15 years after the 
    effective date of the Compact, the firm then acting as Fund Manager 
    shall transfer to the Government of the Marshall Islands, or to 
    such account as such Government shall so notify the Fund Manager, 
    all remaining funds and assets being managed by the Fund Manager 
    under the Section 177 Agreement.
    (d) Nuclear Test Effects.--In the joint resolution of January 14, 
1986 (Public Law 99-239) Congress provided that in approving the 
Compact, the Congress understands and intends that the peoples of 
Bikini, Enewetak, Rongelap, and Utrik, who were affected by the United 
States nuclear weapons testing program in the Marshall Islands, will 
receive the amounts of $75,000,000 (Bikini); $48,750,000 (Enewetak); 
$37,500,000 (Rongelap); and $22,500,000 (Utrik), respectively, which 
amounts shall be paid out of proceeds from the fund established under 
Article I, section 1 of the subsidiary agreement for the implementation 
of section 177 of the Compact. The amounts specified in this subsection 
shall be in addition to any amounts which may be awarded to claimants 
pursuant to Article IV of the subsidiary agreement for the 
implementation of Section 177 of the Compact.
    (e) Espousal Provisions.--
        (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that it is the intention of the Congress of 
    the United States that the provisions of section 177 of the Compact 
    of Free Association and the Agreement between the Government of the 
    United States and the Government of the Marshall Islands for the 
    Implementation of Section 177 of the Compact (hereafter in this 
    subsection referred to as the ``Section 177 Agreement'') constitute 
    a full and final settlement of all claims described in Articles X 
    and XI of the Section 177 Agreement, and that any such claims be 
    terminated and barred except insofar as provided for in the Section 
    177 Agreement.
        (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that in furtherance of the intention of 
    Congress as stated in paragraph (1) of this subsection, the Section 
    177 Agreement is hereby ratified and approved. It is the explicit 
    understanding and intent of Congress that the jurisdictional 
    limitations set forth in Article XII of such Agreement are enacted 
    solely and exclusively to accomplish the objective of Article X of 
    such Agreement and only as a clarification of the effect of Article 
    X, and are not to be construed or implemented separately from 
    Article X.
    (f) DOE Radiological Health Care Program; USDA Agricultural and 
Food Programs.--
        (1) Marshall islands program.--Notwithstanding any other 
    provision of law, upon the request of the Government of the 
    Republic of the Marshall Islands, the President (either through an 
    appropriate department or agency of the United States or by 
    contract with a United States firm) shall continue to provide 
    special medical care and logistical support thereto for the 
    remaining members of the population of Rongelap and Utrik who were 
    exposed to radiation resulting from the 1954 United States thermo-
    nuclear ``Bravo'' test, pursuant to Public Laws 95-134 and 96-205.
        (2) Agricultural and food programs.--
            (A) In general.--In the joint resolution of January 14, 
        1986 (Public Law 99-239) Congress provided that notwithstanding 
        any other provision of law, upon the request of the Government 
        of the Marshall Islands, for the first fifteen years after the 
        effective date of the Compact, the President (either through an 
        appropriate department or agency of the United States or by 
        contract with a United States firm or by a grant to the 
        Government of the Republic of the Marshall Islands which may 
        further contract only with a United States firm or a Republic 
        of the Marshall Islands firm, the owners, officers and majority 
        of the employees of which are citizens of the United States or 
        the Republic of the Marshall Islands) shall provide technical 
        and other assistance--
                (i) without reimbursement, to continue the planting and 
            agricultural maintenance program on Enewetak, as provided 
            in subparagraph (C); and
                (ii) without reimbursement, to continue the food 
            programs of the Bikini and Enewetak people described in 
            section 1(d) of Article II of the Subsidiary Agreement for 
            the Implementation of Section 177 of the Compact and for 
            continued waterborne transportation of agricultural 
            products to Enewetak including operations and maintenance 
            of the vessel used for such purposes.
            (B) Population changes.--The President shall ensure the 
        assistance provided under these programs reflects the changes 
        in the population since the inception of such programs.
            (C) Planting and agricultural maintenance program.--
                (i) In general.--The planting and agricultural 
            maintenance program on Enewetak shall be funded at a level 
            of not less than $1,300,000 per year, as adjusted for 
            inflation under section 218 of the U.S.-RMI Compact.
                (ii) Authorization and continuing appropriation.--There 
            is hereby authorized and appropriated to the Secretary of 
            the Interior, out of any funds in the Treasury not 
            otherwise appropriated, to remain available until expended, 
            for each fiscal year from 2004 through 2023, $1,300,000, as 
            adjusted for inflation under section 218 of the U.S.-RMI 
            Compact, for grants to carry out the planting and 
            agricultural maintenance program.
        (3) Payments.--In the joint resolution of January 14, 1986 
    (Public Law 99-239) Congress provided that payments under this 
    subsection shall be provided to such extent or in such amounts as 
    are necessary for services and other assistance provided pursuant 
    to this subsection. It is the sense of Congress that after the 
    periods of time specified in paragraphs (1) and (2) of this 
    subsection, consideration will be given to such additional funding 
    for these programs as may be necessary.
    (g) Rongelap.--
        (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that because Rongelap was directly affected 
    by fallout from a 1954 United States thermonuclear test and because 
    the Rongelap people remain unconvinced that it is safe to continue 
    to live on Rongelap Island, it is the intent of Congress to take 
    such steps (if any) as may be necessary to overcome the effects of 
    such fallout on the habitability of Rongelap Island, and to restore 
    Rongelap Island, if necessary, so that it can be safely inhabited. 
    Accordingly, it is the expectation of the Congress that the 
    Government of the Marshall Islands shall use such portion of the 
    funds specified in Article II, section 1(e) of the subsidiary 
    agreement for the implementation of section 177 of the Compact as 
    are necessary for the purpose of contracting with a qualified 
    scientist or group of scientists to review the data collected by 
    the Department of Energy relating to radiation levels and other 
    conditions on Rongelap Island resulting from the thermonuclear 
    test. It is the expectation of the Congress that the Government of 
    the Marshall Islands, after consultation with the people of 
    Rongelap, shall select the party to review such data, and shall 
    contract for such review and for submission of a report to the 
    President of the United States and the Congress as to the results 
    thereof.
        (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that the purpose of the review referred to 
    in paragraph (1) of this subsection shall be to establish whether 
    the data cited in support of the conclusions as to the habitability 
    of Rongelap Island, as set forth in the Department of Energy report 
    entitled: ``The Meaning of Radiation for Those Atolls in the 
    Northern Part of the Marshall Islands That Were Surveyed in 1978'', 
    dated November 1982, are adequate and whether such conclusions are 
    fully supported by the data. If the party reviewing the data 
    concludes that such conclusions as to habitability are fully 
    supported by adequate data, the report to the President of the 
    United States and the Congress shall so state. If the party 
    reviewing the data concludes that the data are inadequate to 
    support such conclusions as to habitability or that such 
    conclusions as to habitability are not fully supported by the data, 
    the Government of the Marshall Islands shall contract with an 
    appropriate scientist or group of scientists to undertake a 
    complete survey of radiation and other effects of the nuclear 
    testing program relating to the habitability of Rongelap Island. 
    Such sums as are necessary for such survey and report concerning 
    the results thereof and as to steps needed to restore the 
    habitability of Rongelap Island are authorized to be made available 
    to the Government of the Marshall Islands.
        (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that it is the intent of Congress that such 
    steps (if any) as are necessary to restore the habitability of 
    Rongelap Island and return the Rongelap people to their homeland 
    will be taken by the United States in consultation with the 
    Government of the Marshall Islands and, in accordance with its 
    authority under the Constitution of the Marshall Islands, the 
    Rongelap local government council.
        (4) There are hereby authorized and appropriated to the 
    Secretary of the Interior, out of any funds in the Treasury not 
    otherwise appropriated, to remain available until expended, for 
    fiscal year 2005, $1,780,000; for fiscal year 2006, $1,760,000; and 
    for fiscal year 2007, $1,760,000, as the final contributions of the 
    United States to the Rongelap Resettlement Trust Fund as 
    established pursuant to Public Law 102-154 (105 Stat. 1009), for 
    the purposes of establishing a food importation program as a part 
    of the overall resettlement program of Rongelap Island.
    (h) Four Atoll Health Care Program.--
        (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that services provided by the United States 
    Public Health Service or any other United States agency pursuant to 
    section 1(a) of Article II of the Agreement for the Implementation 
    of Section 177 of the Compact (hereafter in this subsection 
    referred to as the ``Section 177 Agreement'') shall be only for 
    services to the people of the Atolls of Bikini, Enewetak, Rongelap, 
    and Utrik who were affected by the consequences of the United 
    States nuclear testing program, pursuant to the program described 
    in Public Law 95-134 (91 Stat. 1159) and Public Law 96-205 (94 
    Stat. 84) and their descendants (and any other persons identified 
    as having been so affected if such identification occurs in the 
    manner described in such public laws). Nothing in this subsection 
    shall be construed as prejudicial to the views or policies of the 
    Government of the Marshall Islands as to the persons affected by 
    the consequences of the United States nuclear testing program.
        (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that at the end of the first year after the 
    effective date of the Compact and at the end of each year 
    thereafter, the providing agency or agencies shall return to the 
    Government of the Marshall Islands any unexpended funds to be 
    returned to the Fund Manager (as described in Article I of the 
    Section 177 Agreement) to be covered into the Fund to be available 
    for future use.
        (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that the Fund Manager shall retain the funds 
    returned by the Government of the Marshall Islands pursuant to 
    paragraph (2) of this subsection, shall invest and manage such 
    funds, and at the end of 15 years after the effective date of the 
    Compact, shall make from the total amount so retained and the 
    proceeds thereof annual disbursements sufficient to continue to 
    make payments for the provision of health services as specified in 
    paragraph (1) of this subsection to such extent as may be provided 
    in contracts between the Government of the Marshall Islands and 
    appropriate United States providers of such health services.
    (i) Enjebi Community Trust Fund.--In the joint resolution of 
January 14, 1986 (Public Law 99-239) Congress provided that 
notwithstanding any other provision of law, the Secretary of the 
Treasury shall establish on the books of the Treasury of the United 
States a fund having the status specified in Article V of the 
subsidiary agreement for the implementation of Section 177 of the 
Compact, to be known as the ``Enjebi Community Trust Fund'' (hereafter 
in this subsection referred to as the ``Fund''), and shall credit to 
the Fund the amount of $7,500,000. Such amount, which shall be ex 
gratia, shall be in addition to and not charged against any other funds 
provided for in the Compact and its subsidiary agreements, this joint 
resolution, or any other Act. Upon receipt by the President of the 
United States of the agreement described in this subsection, the 
Secretary of the Treasury, upon request of the Government of the 
Marshall Islands, shall transfer the Fund to the Government of the 
Marshall Islands, provided that the Government of the Marshall Islands 
agrees as follows:
        (1) Enjebi trust agreement.--In the joint resolution of January 
    14, 1986 (Public Law 99-239) Congress provided that the Government 
    of the Marshall Islands and the Enewetak Local Government Council, 
    in consultation with the people of Enjebi, shall provide for the 
    creation of the Enjebi Community Trust Fund and the employment of 
    the manager of the Enewetak Fund established pursuant to the 
    Section 177 Agreement as trustee and manager of the Enjebi 
    Community Trust Fund, or, should the manager of the Enewetak Fund 
    not be acceptable to the people of Enjebi, another United States 
    investment manager with substantial experience in the 
    administration of trusts and with funds under management in excess 
    of $250,000,000.
        (2) Monitor conditions.--In the joint resolution of January 14, 
    1986 (Public Law 99-239) Congress provided that upon the request of 
    the Government of the Marshall Islands, the United States shall 
    monitor the radiation and other conditions on Enjebi and within one 
    year of receiving such a request shall report to the Government of 
    the Marshall Islands when the people of Enjebi may resettle Enjebi 
    under circumstances where the radioactive contamination at Enjebi, 
    including contamination derived from consumption of locally grown 
    food products, can be reduced or otherwise controlled to meet whole 
    body Federal radiation protection standards for the general 
    population, including mean annual dose and mean 30-year cumulative 
    dose standards.
        (3) Resettlement of enjebi.--In the joint resolution of January 
    14, 1986 (Public Law 99-239) Congress provided that in the event 
    that the United States determines that the people of Enjebi can 
    within 25 years of January 14, 1986, resettle Enjebi under the 
    conditions set forth in paragraph (2) of this subsection, then upon 
    such determination there shall be available to the people of Enjebi 
    from the Fund such amounts as are necessary for the people of 
    Enjebi to do the following, in accordance with a plan developed by 
    the Enewetak Local Government Council and the people of Enjebi, and 
    concurred with by the Government of the Marshall Islands to assure 
    consistency with the government's overall economic development 
    plan:
            (A) Establish a community on Enjebi Island for the use of 
        the people of Enjebi.
            (B) Replant Enjebi with appropriate food-bearing and other 
        vegetation.
        (4) Resettlement of other location.--In the joint resolution of 
    January 14, 1986 (Public Law 99-239) Congress provided that in the 
    event that the United States determines that within 25 years of 
    January 14, 1986, the people of Enjebi cannot resettle Enjebi 
    without exceeding the radiation standards set forth in paragraph 
    (2) of this subsection, then the fund manager shall be directed by 
    the trust instrument to distribute the Fund to the people of Enjebi 
    for their resettlement at some other location in accordance with a 
    plan, developed by the Enewetak Local Government Council and the 
    people of Enjebi and concurred with by the Government of the 
    Marshall Islands, to assure consistency with the government's 
    overall economic development plan.
        (5) Interest from fund.--In the joint resolution of January 14, 
    1986 (Public Law 99-239) Congress provided that prior to and during 
    the distribution of the corpus of the Fund pursuant to paragraphs 
    (3) and (4) of this subsection, the people of Enjebi may, if they 
    so request, receive the interest earned by the Fund on no less 
    frequent a basis than quarterly.
        (6) Disclaimer of liability.--In the joint resolution of 
    January 14, 1986 (Public Law 99-239) Congress provided that neither 
    under the laws of the Marshall Islands nor under the laws of the 
    United States, shall the Government of the United States be liable 
    for any loss or damage to person or property in respect to the 
    resettlement of Enjebi by the people of Enjebi, pursuant to the 
    provision of this subsection or otherwise.
    (j) Bikini Atoll Cleanup.--
        (1) Declaration of policy.--In the joint resolution of January 
    14, 1986 (Public Law 99-239), the Congress determined and declared 
    that it is the policy of the United States, to be supported by the 
    full faith and credit of the United States, that because the United 
    States, through its nuclear testing and other activities, rendered 
    Bikini Atoll unsafe for habitation by the people of Bikini, the 
    United States will fulfill its responsibility for restoring Bikini 
    Atoll to habitability, as set forth in paragraph (2) and (3) of 
    this subsection.
        (2) Cleanup funds.--The joint resolution of January 14, 1986 
    (Public Law 99-239) authorized to be appropriated such sums as 
    necessary to implement the settlement agreement of March 15, 1985, 
    in The People of Bikini, et al. against United States of America, 
    et al., Civ. No. 84-0425 (D. Ha.).
        (3) Conditions of funding.--In the joint resolution of January 
    14, 1986 (Public Law 99-239) the Congress provided that the funds 
    referred to in paragraph (2) were to be made available pursuant to 
    Article VI, Section 1 of the Compact Section 177 Agreement upon 
    completion of the events set forth in the settlement agreement 
    referred to in paragraph (2) of this subsection.
    (k) Agreement on Audits.--The Comptroller General (and his duly 
authorized representatives) shall have the authorities necessary to 
carry out his responsibilities under section 232 of the U.S.-RMI 
Compact and the agreement referred to in section 462(b)(4) of the U.S.-
RMI Compact, including the following authorities:
        (1) General authority of the comptroller general to audit.--
            (A) The Comptroller General of the United States (and his 
        duly authorized representatives) shall have the authority to 
        audit--
                (i) all grants, program assistance, and other 
            assistance provided to the Government of the Republic of 
            the Marshall Islands under Articles I and II of Title Two 
            of the U.S.-RMI Compact; and
                (ii) any other assistance provided by the Government of 
            the United States to the Government of the Republic of the 
            Marshall Islands.
        Such authority shall include authority for the Comptroller 
        General to conduct or cause to be conducted any of the audits 
        provided for in section 232 of the U.S.-RMI Compact. The 
        authority provided in this paragraph shall continue for at 
        least three years after the last such grant has been made or 
        assistance has been provided.
            (B) The Comptroller General (and his duly authorized 
        representatives) shall also have authority to review any audit 
        conducted by or on behalf of the Government of the United 
        States. In this connection, the Comptroller General shall have 
        access to such personnel and to such records, documents, 
        working papers, automated data and files, and other information 
        relevant to such review.
        (2) Comptroller general access to records.--
            (A) In carrying out paragraph (1), the Comptroller General 
        (and his duly authorized representatives) shall have such 
        access to the personnel and (without cost) to records, 
        documents, working papers, automated data and files, and other 
        information relevant to such audits. The Comptroller General 
        may duplicate any such records, documents, working papers, 
        automated data and files, or other information relevant to such 
        audits.
            (B) Such records, documents, working papers, automated data 
        and files, and other information regarding each such grant or 
        other assistance shall be maintained for at least five years 
        after the date such grant or assistance was provided and in a 
        manner that permits such grants, assistance and payments to be 
        accounted for distinct from any other funds of the Government 
        of the Republic of the Marshall Islands.
        (3) Status of comptroller general representatives.--The 
    Comptroller General and his duly authorized representatives shall 
    be immune from civil and criminal process relating to words spoken 
    or written and all acts performed by them in their official 
    capacity and falling within their functions, except insofar as such 
    immunity may be expressly waived by the Government of the United 
    States. The Comptroller General and his duly authorized 
    representatives shall not be liable to arrest or detention pending 
    trial, except in the case of a grave crime and pursuant to a 
    decision by a competent judicial authority, and such persons shall 
    enjoy immunity from seizure of personal property, immigration 
    restrictions, and laws relating to alien registration, 
    fingerprinting, and the registration of foreign agents. Such 
    persons shall enjoy the same taxation exemptions as are set forth 
    in Article 34 of the Vienna Convention on Diplomatic Relations. The 
    privileges, exemptions and immunities accorded under this paragraph 
    are not for the personal benefit of the individuals concerned but 
    are to safeguard the independent exercise of their official 
    functions. Without prejudice to those privileges, exemptions and 
    immunities, it is the duty of all such persons to respect the laws 
    and regulations of the Government of the Republic of the Marshall 
    Islands.
        (4) Audits defined.--As used in this subsection, the term 
    ``audits'' includes financial, program, and management audits, 
    including determining--
            (A) whether the Government of the Republic of the Marshall 
        Islands has met the requirements set forth in the U.S.-RMI 
        Compact, or any related agreement entered into under the U.S.-
        RMI Compact, regarding the purposes for which such grants and 
        other assistance are to be used; and
            (B) the propriety of the financial transactions of the 
        Government of the Republic of the Marshall Islands pursuant to 
        such grants or assistance.
        (5) Cooperation by the republic of the marshall islands.--The 
    Government of the Republic of the Marshall Islands will cooperate 
    fully with the Comptroller General of the United States in the 
    conduct of such audits as the Comptroller General determines 
    necessary to enable the Comptroller General to fully discharge his 
    responsibilities under this joint resolution.
    (l) Kwajalein.--
        (1) Statement of policy.--It is the policy of the United States 
    that payment of funds by the Government of the Marshall Islands to 
    the landowners of Kwajalein Atoll in accordance with the land use 
    agreement dated October 19, 1982, or as amended or superseded, and 
    any related allocation agreements, is required in order to ensure 
    that the Government of the United States will be able to fulfill 
    its obligation and responsibilities under Title Three of the U.S.-
    RMI Compact and the subsidiary agreements concluded pursuant to the 
    U.S.-RMI Compact.
        (2) Failure to pay.--
            (A) In general.--If the Government of the Marshall Islands 
        fails to make payments in accordance with paragraph (1), the 
        Government of the United States shall initiate procedures under 
        section 313 of the U.S.-RMI Compact and consult with the 
        Government of the Marshall Islands with respect to the basis 
        for the nonpayment of funds.
            (B) Resolution.--The United States shall expeditiously 
        resolve the matter of any nonpayment of funds required under 
        paragraph (1) pursuant to section 313 of the U.S.-RMI Compact 
        and the authority and responsibility of the Government of the 
        United States for security and defense matters in or relating 
        to the Marshall Islands. This paragraph shall be enforced, as 
        may be necessary, in accordance with section 105(e).
        (3) Disposition of increased payments pending new land use 
    agreement.--Until such time as the Government of the Marshall 
    Islands and the landowners of Kwajalein Atoll have concluded an 
    agreement amending or superseding the land use agreement reflecting 
    the terms of and consistent with the Military Use Operating Rights 
    Agreement dated October 19, 1982, any amounts paid by the United 
    States to the Government of the Marshall Islands in excess of the 
    amounts required to be paid pursuant to the land use agreement 
    dated October 19, 1982, shall be paid into, and held in, an 
    interest bearing escrow account in a United States financial 
    institution by the Government of the Republic of the Marshall 
    Islands. At such time, the funds and interest held in escrow shall 
    be paid to the landowners of Kwajalein in accordance with the new 
    land use agreement. If no such agreement is concluded by the date 
    which is five years after the date of enactment of this resolution, 
    then such funds and interest shall, unless otherwise mutually 
    agreed between the Government of the United States of America and 
    the Government of the Republic of the Marshall Islands, be returned 
    to the U.S. Treasury.
        (4) Notifications and report.--
            (A) The Government of the Republic of the Marshall Islands 
        shall notify the Government of the United States of America 
        when an agreement amending or superseding the land use 
        agreement dated October 19, 1982, is concluded.
            (B) If no agreement amending or superseding the land use 
        agreement dated October 19, 1982 is concluded by the date five 
        years after the date of enactment of this resolution, then the 
        President shall report to Congress on the intentions of the 
        United States with respect to the use of Kwajalein Atoll after 
        2016, on any plans to relocate activities carried out on 
        Kwajalein Atoll, and on the disposition of the funds and 
        interest held in escrow under paragraph (3).
        (5) Assistance.--The President is authorized to make loans and 
    grants to the Government of the Marshall Islands to address the 
    special needs of the community at Ebeye, Kwajalein Atoll, and other 
    Marshallese communities within the Kwajalein Atoll, pursuant to 
    development plans adopted in accordance with applicable laws of the 
    Marshall Islands. The loans and grants shall be subject to such 
    other terms and conditions as the President, in the discretion of 
    the President, may determine are appropriate.

SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY REGARDING U.S.-FSM 
              COMPACT AND U.S.-RMI COMPACT.

    (a) Human Rights.--In approving the U.S.-FSM Compact and the U.S.-
RMI Compact, Congress notes the conclusion in the Statement of Intent 
of the Report of The Future Political Status Commission of the Congress 
of Micronesia in July, 1969, that ``our recommendation of a free 
associated state is indissolubly linked to our desire for such a 
democratic, representative, constitutional government'' and notes that 
such desire and intention are reaffirmed and embodied in the 
Constitutions of the Federated States of Micronesia and the Republic of 
the Marshall Islands. Congress also notes and specifically endorses the 
preamble to the U.S.-FSM Compact and the U.S.-RMI Compact, which 
affirms that the governments of the parties to the U.S.-FSM Compact and 
the U.S.-RMI Compact are founded upon respect for human rights and 
fundamental freedoms for all. The Secretary of State shall include in 
the annual reports on the status of internationally recognized human 
rights in foreign countries, which are submitted to Congress pursuant 
to sections 116 and 502B of the Foreign Assistance Act of 1961, ``22 
U.S.C. 2151n, 2304'' a full and complete report regarding the status of 
internationally recognized human rights in the Federated States of 
Micronesia and the Republic of the Marshall Islands.
    (b) Immigration and Passport Security.--
        (1) Naturalized citizens.--The rights of a bona fide 
    naturalized citizen of the Federated States of Micronesia or the 
    Republic of the Marshall Islands to enter the United States, to 
    lawfully engage therein in occupations, and to establish residence 
    therein as a nonimmigrant, to the extent such rights are provided 
    under section 141 of the U.S.-FSM Compact and U.S.-RMI Compact, 
    shall not be deemed to extend to any such naturalized citizen with 
    respect to whom circumstances associated with the acquisition of 
    the status of a naturalized citizen are such as to allow a 
    reasonable inference, on the part of appropriate officials of the 
    United States and subject to United States procedural requirements, 
    that such naturalized status was acquired primarily in order to 
    obtain such rights.
        (2) Passports.--It is the sense of Congress that up to $250,000 
    of the grant assistance provided to the Federated States of 
    Micronesia pursuant to section 211(a)(4) of the U.S.-FSM Compact, 
    and up to $250,000 of the grant assistance provided to the Republic 
    of the Marshall Islands pursuant to section 211(a)(4) of the U.S.-
    RMI Compact (or a greater amount of the section 211(a)(4) grant, if 
    mutually agreed between the Government of the United States and the 
    government of the Federated States of Micronesia or the government 
    of the Republic of the Marshall Islands), be used for the purpose 
    of increasing the machine-readability and security of passports 
    issued by such jurisdictions. It is further the sense of Congress 
    that such funds be obligated by September 30, 2004 and in the 
    amount and manner specified by the Secretary of State in 
    consultation with the Secretary of Homeland Security and, 
    respectively, with the government of the Federated States of 
    Micronesia and the government of the Republic of the Marshall 
    Islands. The United States Government is authorized to require that 
    passports used for the purpose of seeking admission under section 
    141 of the U.S.-FSM Compact and the U.S.-RMI Compact contain the 
    security enhancements funded by such assistance.
        (3) Information-sharing.--It is the sense of Congress that the 
    governments of the Federated States of Micronesia and the Republic 
    of the Marshall Islands develop, prior to October 1, 2004, the 
    capability to provide reliable and timely information as may 
    reasonably be required by the Government of the United States in 
    enforcing criminal and security-related grounds of inadmissibility 
    and deportability under the Immigration and Nationality Act, as 
    amended, and shall provide such information to the Government of 
    the United States.
        (4) Transition; construction of sections 141(a)(3) and 
    141(a)(4) of the u.s.-fsm compact and u.s.-rmi compact.--The words 
    ``the effective date of this Compact, as amended'' in sections 
    141(a)(3) and 141(a)(4) of the U.S.-FSM Compact and the U.S.-RMI 
    Compact shall be construed to read, ``on the day prior to the 
    enactment by the United States Congress of the Compact of Free 
    Association Amendments Act of 2003.''.
    (c) Nonalienation of Lands.--Congress endorses and encourages the 
maintenance of the policies of the Government of the Federated States 
of Micronesia and the Government of the Republic of the Marshall 
Islands to regulate, in accordance with their Constitutions and laws, 
the alienation of permanent interests in real property so as to 
restrict the acquisition of such interests to persons of Federated 
States of Micronesia citizenship and the Republic of the Marshall 
Islands citizenship, respectively.
    (d) Nuclear Waste Disposal.--In approving the U.S.-FSM Compact and 
the U.S.-RMI Compact, Congress understands that the Government of the 
Federated States of Micronesia and the Government of the Republic of 
the Marshall Islands will not permit any other government or any 
nongovernmental party to conduct, in the Republic of the Marshall 
Islands or in the Federated States of Micronesia, any of the activities 
specified in subsection (a) of section 314 of the U.S.-FSM Compact and 
the U.S.-RMI Compact.
    (e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact on the 
State of Hawaii, Guam, the Commonwealth of the Northern Mariana Islands 
and American Samoa; Related Authorization and Continuing 
Appropriation.--
        (1) Statement of congressional intent.--In reauthorizing the 
    U.S.-FSM Compact and the U.S.-RMI Compact, it is not the intent of 
    Congress to cause any adverse consequences for an affected 
    jurisdiction.
        (2) Definitions.--For the purposes of this title--
            (A) the term ``affected jurisdiction'' means American 
        Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
        or the State of Hawaii; and
            (B) the term ``qualified nonimmigrant'' means a person, or 
        their children under the age of 18, admitted or resident 
        pursuant to section 141 of the U.S.-RMI or U.S.-FSM Compact, or 
        section 141 of the Palau Compact who, as of a date referenced 
        in the most recently published enumeration is a resident of an 
        affected jurisdiction. As used in this subsection, the term 
        ``resident'' shall be a person who has a ``residence,'' as that 
        term is defined in section 101(a)(33) of the Immigration and 
        Nationality Act, as amended.
        (3) Authorization and continuing appropriation.--There is 
    hereby authorized and appropriated to the Secretary of the 
    Interior, out of any funds in the Treasury not otherwise 
    appropriated, to remain available until expended, for each fiscal 
    year from 2004 through 2023, $30,000,000 for grants to affected 
    jurisdictions to aid in defraying costs incurred by affected 
    jurisdictions as a result of increased demands placed on health, 
    educational, social, or public safety services or infrastructure 
    related to such services due to the residence in affected 
    jurisdictions of qualified nonimmigrants from the Republic of the 
    Marshall Islands, the Federated States of Micronesia, or the 
    Republic of Palau. The grants shall be--
            (A) awarded and administered by the Department of the 
        Interior, Office of Insular Affairs, or any successor thereto, 
        in accordance with regulations, policies and procedures 
        applicable to grants so awarded and administered; and
            (B) used only for health, educational, social, or public 
        safety services, or infrastructure related to such services, 
        specifically affected by qualified nonimmigrants.
        (4) Enumeration.--The Secretary of the Interior shall conduct 
    periodic enumerations of qualified nonimmigrants in each affected 
    jurisdiction. The enumerations--
            (A) shall be conducted at such intervals as the Secretary 
        of the Interior shall determine, but no less frequently than 
        every five years, beginning in fiscal year 2003;
            (B) shall be supervised by the United States Bureau of the 
        Census or such other organization as the Secretary of the 
        Interior may select; and
            (C) after fiscal year 2003, shall be funded by the 
        Secretary of the Interior by deducting such sums as are 
        necessary, but not to exceed $300,000 as adjusted for inflation 
        pursuant to section 217 of the U.S.-FSM Compact with fiscal 
        year 2003 as the base year, per enumeration, from funds 
        appropriated pursuant to the authorization contained in 
        paragraph (3) of this subsection.
        (5) Allocation.--The Secretary of the Interior shall allocate 
    to the government of each affected jurisdiction, on the basis of 
    the results of the most recent enumeration, grants in an aggregate 
    amount equal to the total amount of funds appropriated under 
    paragraph (3) of this subsection, as reduced by any deductions 
    authorized by subparagraph (C) of paragraph (4) of this subsection, 
    multiplied by a ratio derived by dividing the number of qualified 
    nonimmigrants in such affected jurisdiction by the total number of 
    qualified nonimmigrants in all affected jurisdictions.
        (6) Authorization for health care reimbursement.--There are 
    hereby authorized to be appropriated to the Secretary of the 
    Interior such sums as may be necessary to reimburse health care 
    institutions in the affected jurisdictions for costs resulting from 
    the migration of citizens of the Republic of the Marshall Islands, 
    the Federated States of Micronesia and the Republic of Palau to the 
    affected jurisdictions as a result of the implementation of the 
    Compact of Free Association, approved by Public Law 99-239, or the 
    approval of the U.S.-FSM Compact and the U.S.-RMI Compact by this 
    resolution.
        (7) Use of dod medical facilities and national health service 
    corps.--
            (A) DOD medical facilities.--The Secretary of Defense shall 
        make available, on a space available and reimbursable basis, 
        the medical facilities of the Department of Defense for use by 
        citizens of the Federated States of Micronesia and the Republic 
        of the Marshall Islands who are properly referred to the 
        facilities by government authorities responsible for provision 
        of medical services in the Federated States of Micronesia, the 
        Republic of the Marshall Islands, the Republic of Palau and the 
        affected jurisdictions.
            (B) National health service corps.--The Secretary of Health 
        and Human Services shall continue to make the services of the 
        National Health Service Corps available to the residents of the 
        Federated States of Micronesia and the Republic of the Marshall 
        Islands to the same extent and for so long as such services are 
        authorized to be provided to persons residing in any other 
        areas within or outside the United States.
            (C) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this paragraph such sums as are 
        necessary for each fiscal year.
        (8) Reporting requirement.--Not later than one year after the 
    date of enactment of this joint resolution, and at one year 
    intervals thereafter, the Governors of Guam, the State of Hawaii, 
    the Commonwealth of the Northern Mariana Islands, and American 
    Samoa may provide to the Secretary of the Interior by February 1 of 
    each year their comments with respect to the impacts of the 
    Compacts on their respective jurisdiction. The Secretary of the 
    Interior, upon receipt of any such comments, shall report to the 
    Congress not later than May 1 of each year to include the 
    following:
            (A) The Governor's comments on the impacts of the Compacts 
        as well as the Administration's analysis of such impact.
            (B) The Administration views on any recommendations for 
        corrective action to eliminate those consequences as proposed 
        by such Governors.
            (C) With regard to immigration, statistics concerning the 
        number of persons availing themselves of the rights described 
        in section 141(a) of the Compact during the year covered by 
        each report.
            (D) With regard to trade, an analysis of the impact on the 
        economy of American Samoa resulting from imports of canned tuna 
        into the United States from the Federated States of Micronesia, 
        and the Republic of the Marshall Islands.
        (9) Reconciliation of unreimbursed impact expenses.--
            (A) In general.--Notwithstanding any other provision of 
        law, the President, to address previously accrued and 
        unreimbursed impact expenses, may at the request of the 
        Governor of Guam or the Governor of the Commonwealth of the 
        Northern Mariana Islands, reduce, release, or waive all or part 
        of any amounts owed by the Government of Guam or the Government 
        of the Commonwealth of the Northern Mariana Islands (or either 
        government's autonomous agencies or instrumentalities), 
        respectively, to any department, agency, independent agency, 
        office, or instrumentality of the United States.
            (B) Terms and conditions.--
                (i) Substantiation of impact costs.--Not later than 120 
            days after the date of the enactment of this resolution, 
            the Governor of Guam and the Governor of the Commonwealth 
            of the Northern Mariana Islands shall each submit to the 
            Secretary of the Interior a report, prepared in 
            consultation with an independent accounting firm, 
            substantiating unreimbursed impact expenses claimed for the 
            period from January 14, 1986, through September 30, 2003. 
            Upon request of the Secretary of the Interior, the Governor 
            of Guam and the Governor of the Commonwealth of the 
            Northern Mariana Islands shall submit to the Secretary of 
            the Interior copies of all documents upon which the report 
            submitted by that Governor under this clause was based.
                (ii) Congressional notification.--The President shall 
            notify Congress of his intent to exercise the authority 
            granted in subparagraph (A).
                (iii) Congressional review and comment.--Any reduction, 
            release, or waiver under this Act shall not take effect 
            until 60 days after the President notifies Congress of his 
            intent to approve a request of the Governor of Guam or the 
            Governor of the Commonwealth of the Northern Mariana 
            Islands. In exercising his authority under this section and 
            in determining whether to give final approval to a request, 
            the President shall take into consideration comments he may 
            receive after Congressional review.
                (iv) Expiration.--The authority granted in subparagraph 
            (A) shall expire on February 28, 2005.
        (10) Authorization of appropriations for grants.--There are 
    hereby authorized to the Secretary of the Interior for each of 
    fiscal years 2004 through 2023 such sums as may be necessary for 
    grants to the governments of Guam, the State of Hawaii, the 
    Commonwealth of the Northern Mariana Islands, and American Samoa, 
    as a result of increased demands placed on educational, social, or 
    public safety services or infrastructure related to service due to 
    the presence in Guam, Hawaii, the Commonwealth of the Northern 
    Mariana Islands, and American Samoa of qualified nonimmigrants from 
    the Federated States of Micronesia, the Republic of the Marshall 
    Islands, and the Republic of Palau.
    (f) Foreign Loans.--Congress hereby reaffirms the United States 
position that the United States Government is not responsible for 
foreign loans or debt obtained by the Governments of the Federated 
States of Micronesia and the Republic of the Marshall Islands.
    (g) Sense of Congress Concerning Funding of Public 
Infrastructure.--It is the sense of Congress that not less than 30 
percent of the United States annual grant assistance provided under 
section 211 of the Compact of Free Association, as amended, between the 
Government of the United States of America and the Government of the 
Federated States of Micronesia, and not less than 30 percent of the 
total amount of section 211 funds allocated to each of the States of 
the Federated States of Micronesia, shall be invested in infrastructure 
improvements and maintenance in accordance with section 211(a)(6). It 
is further the sense of Congress that not less than 30 percent of the 
United States annual grant assistance provided under section 211 of the 
Compact of Free Association, as amended, between the Government of the 
United States of America and the Government of the Republic of the 
Marshall Islands, shall be invested in infrastructure improvements and 
maintenance in accordance with section 211(d).
    (h) Reports and Reviews.--
        (1) Report by the president.--Not later than the end of the 
    first full calendar year following enactment of this resolution, 
    and not later than December 31 of each year thereafter, the 
    President shall report to Congress regarding the Federated States 
    of Micronesia and the Republic of the Marshall Islands, including 
    but not limited to--
            (A) general social, political, and economic conditions, 
        including estimates of economic growth, per capita income, and 
        migration rates;
            (B) the use and effectiveness of United States financial, 
        program, and technical assistance;
            (C) the status of economic policy reforms including but not 
        limited to progress toward establishing self-sufficient tax 
        rates;
            (D) the status of the efforts to increase investment 
        including: the rate of infrastructure investment of U.S. 
        financial assistance under the U.S.-FSM Compact and the U.S.-
        RMI Compact; non-U.S. contributions to the trust funds, and the 
        level of private investment; and
            (E) recommendations on ways to increase the effectiveness 
        of United States assistance and to meet overall economic 
        performance objectives, including, if appropriate, 
        recommendations to Congress to adjust the inflation rate or to 
        adjust the contributions to the Trust Funds based on non-U.S. 
        contributions.
        (2) Review.--During the year of the fifth, tenth, and fifteenth 
    anniversaries of the date of enactment of this resolution, the 
    Government of the United States shall review the terms of the 
    respective Compacts and consider the overall nature and development 
    of the U.S.-FSM and U.S.-RMI relationships including the topics set 
    forth in subparagraphs (A) through (E) of paragraph (1). In 
    conducting the reviews, the Government of the United States shall 
    consider the operating requirements of the Government of the 
    Federated States of Micronesia and the Government of the Republic 
    of the Marshall Islands and their progress in meeting the 
    development objectives set forth in their respective development 
    plans. The President shall include in the annual reports to 
    Congress for the years following the reviews the comments of the 
    Government of the Federated States of Micronesia and the Government 
    of the Republic of the Marshall Islands on the topics described in 
    this paragraph, the President's response to the comments, the 
    findings resulting from the reviews, and any recommendations for 
    actions to respond to such findings.
        (3) By the comptroller general.--Not later than the date that 
    is three years after the date of enactment of this joint 
    resolution, and every 5 years thereafter, the Comptroller General 
    of the United States shall submit to Congress a report on the 
    Federated States of Micronesia and the Republic of the Marshall 
    Islands including the topics set forth in paragraphs (1) (A) 
    through (E) above, and on the effectiveness of administrative 
    oversight by the United States.
    (i) Construction of Section 141(f).--Section 141(f)(2) of the 
Compact of Free Association, as amended, between the Government of the 
United States of America and the Government of the Federated States of 
Micronesia and of the Compact of Free Association, as amended, between 
the Government of the United States of America and the Government of 
the Republic of the Marshall Islands, shall be construed as though, 
after ``may by regulations prescribe'', there were included the 
following: ``, except that any such regulations that would have a 
significant effect on the admission, stay and employment privileges 
provided under this section shall not become effective until 90 days 
after the date of transmission of the regulations to the Committee on 
Energy and Natural Resources and the Committee on the Judiciary of the 
Senate and the Committee on Resources, the Committee on International 
Relations, and the Committee on the Judiciary of the House of 
Representatives''.
    (j) Inflation Adjustment.--As of Fiscal Year 2015, if the United 
States Gross Domestic Product Implicit Price Deflator average for 
Fiscal Years 2009 through 2013 is greater than United States Gross 
Domestic Product Implicit Price Deflator average for Fiscal Years 2004 
through 2008 (as reported in the Survey of Current Business or 
subsequent publication and compiled by the Department of Interior), 
then section 217 of the U.S.-FSM Compact, paragraph 5 of Article II of 
the U.S.-FSM Fiscal Procedures Agreement, section 218 of the U.S.-RMI 
Compact, and paragraph 5 of Article II of the U.S.-RMI Fiscal 
Procedures Agreement shall be construed as if ``the full'' appeared in 
place of ``two-thirds of the'' each place those words appear. If an 
inflation adjustment is made under this subsection, the base year for 
calculating the inflation adjustment shall be fiscal year 2014.
    (k) Participation by Secondary Schools in the Armed Services 
Vocational Aptitude Battery (ASVAB) Student Testing Program.--In 
furtherance of the provisions of Title Three, Article IV, Section 341 
of the U.S.-FSM and the U.S.-RMI Compacts, the purpose of which is to 
establish the privilege to volunteer for service in the U.S. Armed 
Forces, it is the sense of Congress that, to facilitate eligibility of 
FSM and RMI secondary school students to qualify for such service, the 
Department of Defense may extend the Armed Services Vocational Aptitude 
Battery (ASVAB) Student Testing Program (STP) and the ASVAB Career 
Exploration Program to selected secondary Schools in the FSM and the 
RMI to the extent such programs are available to Department of Defense 
Dependent Schools located in foreign jurisdictions.

SEC. 105. SUPPLEMENTAL PROVISIONS.

    (a) Domestic Program Requirements.--Except as may otherwise be 
provided in this joint resolution, all United States Federal programs 
and services extended to or operated in the Federated States of 
Micronesia or the Republic of the Marshall Islands are and shall remain 
subject to all applicable criteria, standards, reporting requirements, 
auditing procedures, and other rules and regulations applicable to such 
programs when operating in the United States (including its territories 
and commonwealths).
    (b) Relations With the Federated States of Micronesia and the 
Republic of the Marshall Islands.--
        (1) Appropriations made pursuant to Article I of Title Two and 
    subsection (a)(2) of section 221 of article II of Title Two of the 
    U.S.-FSM Compact and the U.S.-RMI Compact shall be made to the 
    Secretary of the Interior, who shall have the authority necessary 
    to fulfill his responsibilities for monitoring and managing the 
    funds so appropriated consistent with the U.S.-FSM Compact and the 
    U.S.-RMI Compact, including the agreements referred to in section 
    462(b)(4) of the U.S.-FSM Compact and U.S.-RMI Compact (relating to 
    Fiscal Procedures) and the agreements referred to in section 
    462(b)(5) of the U.S.-FSM Compact and the U.S.-RMI Compact 
    (regarding the Trust Fund).
        (2) Appropriations made pursuant to subsections (a)(1) and 
    (a)(3) through (6) of section 221 of Article II of Title Two of the 
    U.S.-FSM Compact and subsection (a)(1) and (a)(3) through (5) of 
    the U.S.-RMI Compact shall be made directly to the agencies named 
    in those subsections.
        (3) Appropriations for services and programs referred to in 
    subsection (b) of section 221 of Article II of Title Two of the 
    U.S.-FSM Compact or U.S.-RMI Compact and appropriations for 
    services and programs referred to in sections 105(f) and 108(a) of 
    this joint resolution shall be made to the relevant agencies in 
    accordance with the terms of the appropriations for such services 
    and programs.
        (4) Federal agencies providing programs and services to the 
    Federated States of Micronesia and the Republic of the Marshall 
    Islands shall coordinate with the Secretaries of the Interior and 
    State regarding provision of such programs and services. The 
    Secretaries of the Interior and State shall consult with 
    appropriate officials of the Asian Development Bank and with the 
    Secretary of the Treasury regarding overall economic conditions in 
    the Federated States of Micronesia and the Republic of the Marshall 
    Islands and regarding the activities of other donors of assistance 
    to the Federated States of Micronesia and the Republic of the 
    Marshall Islands.
        (5) United States Government employees in either the Federated 
    States of Micronesia or the Republic of the Marshall Islands are 
    subject to the authority of the United States Chief of Mission, 
    including as elaborated in section 207 of the Foreign Service Act 
    and the President's Letter of Instruction to the United States 
    Chief of Mission and any order or directive of the President in 
    effect from time to time.
        (6) Interagency group on freely associated states' affairs.--
            (A) In general.--The President is hereby authorized to 
        appoint an Interagency Group on Freely Associated States' 
        Affairs to provide policy guidance and recommendations on 
        implementation of the U.S.-FSM Compact and the U.S.-RMI Compact 
        to Federal departments and agencies.
            (B) Secretaries.--It is the sense of Congress that the 
        Secretary of State and the Secretary of the Interior shall be 
        represented on the Interagency Group.
        (7) United states appointees to joint committees.--
            (A) Joint economic management committee.--
                (i) In general.--The three United States appointees 
            (United States chair plus two members) to the Joint 
            Economic Management Committee provided for in section 213 
            of the U.S.-FSM Compact and Article III of the U.S.-FSM 
            Fiscal Procedures Agreement referred to in section 
            462(b)(4) of the U.S.-FSM Compact shall be United States 
            Government officers or employees.
                (ii) Departments.--It is the sense of Congress that 2 
            of the 3 appointees should be designated from the 
            Department of State and the Department of the Interior, and 
            that U.S. officials of the Asian Development Bank shall be 
            consulted in order to properly coordinate U.S. and Asian 
            Development Bank financial, program, and technical 
            assistance.
                (iii) Additional scope.--Section 213 of the U.S.-FSM 
            Compact shall be construed to read as though the phrase, 
            ``the implementation of economic policy reforms to 
            encourage investment and to achieve self-sufficient tax 
            rates,'' were inserted after ``with particular focus on 
            those parts of the plan dealing with the sectors identified 
            in subsection (a) of section 211''.
            (B) Joint economic management and financial accountability 
        committee.--
                (i) In general.--The three United States appointees 
            (United States chair plus two members) to the Joint 
            Economic Management and Financial Accountability Committee 
            provided for in section 214 of the U.S.-RMI Compact and 
            Article III of the U.S.-RMI Fiscal Procedures Agreement 
            referred to in section 462(b)(4) of the U.S.-RMI Compact 
            shall be United States Government officers or employees.
                (ii) Departments.--It is the sense of Congress that 2 
            of the 3 appointees should be designated from the 
            Department of State and the Department of the Interior, and 
            that U.S. officials of the Asian Development Bank shall be 
            consulted in order to properly coordinate U.S. and Asian 
            Development Bank financial, program, and technical 
            assistance.
                (iii) Additional scope.--Section 214 of the U.S.-RMI 
            Compact shall be construed to read as though the phrase, 
            ``the implementation of economic policy reforms to 
            encourage investment and to achieve self-sufficient tax 
            rates,'' were inserted after ``with particular focus on 
            those parts of the framework dealing with the sectors and 
            areas identified in subsection (a) of section 211''.
        (8) Oversight and coordination.--It is the sense of Congress 
    that the Secretary of State and the Secretary of the Interior shall 
    ensure that there are personnel resources committed in the 
    appropriate numbers and locations to ensure effective oversight of 
    United States assistance, and effective coordination of assistance 
    among United States agencies and with other international donors 
    such as the Asian Development Bank.
        (9) The United States voting members (United States chair plus 
    two or more members) of the Trust Fund Committee appointed by the 
    Government of the United States pursuant to Article 7 of the Trust 
    Fund Agreement implementing section 215 of the U.S.-FSM Compact and 
    referred to in section 462(b)(5) of the U.S.-FSM Compact and any 
    alternates designated by the Government of the United States shall 
    be United States Government officers or employees. The United 
    States voting members (United States chair plus two or more 
    members) of the Trust Fund Committee appointed by the Government of 
    the United States pursuant to Article 7 of the Trust Fund Agreement 
    implementing section 216 of the U.S.-RMI Compact and referred to in 
    section 462(b)(5) of the U.S.-RMI Compact and any alternates 
    designated by the Government of the United States shall be United 
    States Government officers or employees. It is the sense of 
    Congress that the appointees should be designated from the 
    Department of State, the Department of the Interior, and the 
    Department of the Treasury.
        (10) The Trust Fund Committee provided for in Article 7 of the 
    U.S.-FSM Trust Fund Agreement implementing section 215 of the U.S.-
    FSM Compact shall be a nonprofit corporation incorporated under the 
    laws of the District of Columbia. To the extent that any law, rule, 
    regulation or ordinance of the District of Columbia, or of any 
    State or political subdivision thereof in which the Trust Fund 
    Committee is incorporated or doing business, impedes or otherwise 
    interferes with the performance of the functions of the Trust Fund 
    Committee pursuant to this joint resolution, such law, rule, 
    regulation, or ordinance shall be deemed to be preempted by this 
    joint resolution. The Trust Fund Committee provided for in Article 
    7 of the U.S.-RMI Trust Fund Agreement implementing section 216 of 
    the U.S.-RMI Compact shall be a non-profit corporation incorporated 
    under the laws of the District of Columbia. To the extent that any 
    law, rule, regulation or ordinance of the District of Columbia, or 
    of any State or political subdivision thereof in which the Trust 
    Fund Committee is incorporated or doing business, impedes or 
    otherwise interferes with the performance of the functions of the 
    Trust Fund Committee pursuant to this joint resolution, such law, 
    rule, regulation, or ordinance shall be deemed to be preempted by 
    this joint resolution.
    (c) Continuing Trust Territory Authorization.--The authorization 
provided by the Act of June 30, 1954, as amended (68 Stat. 330) shall 
remain available after the effective date of the Compact with respect 
to the Federated States of Micronesia and the Republic of the Marshall 
Islands for the following purposes:
        (1) Prior to October 1, 1986, for any purpose authorized by the 
    Compact or the joint resolution of January 14, 1986 (Public Law 99-
    239).
        (2) Transition purposes, including but not limited to, 
    completion of projects and fulfillment of commitments or 
    obligations; termination of the Trust Territory Government and 
    termination of the High Court; health and education as a result of 
    exceptional circumstances; ex gratia contributions for the 
    populations of Bikini, Enewetak, Rongelap, and Utrik; and technical 
    assistance and training in financial management, program 
    administration, and maintenance of infrastructure.
    (d) Survivability.--In furtherance of the provisions of Title Four, 
Article V, sections 452 and 453 of the U.S.-FSM Compact and the U.S.-
RMI Compact, any provisions of the U.S.-FSM Compact or the U.S.-RMI 
Compact which remain effective after the termination of the U.S.-FSM 
Compact or U.S.-RMI Compact by the act of any party thereto and which 
are affected in any manner by provisions of this title shall remain 
subject to such provisions.
    (e) Noncompliance Sanctions; Actions Incompatible With United 
States Authority.--Congress expresses its understanding that the 
Governments of the Federated States of Micronesia and the Republic of 
the Marshall Islands will not act in a manner incompatible with the 
authority and responsibility of the United States for security and 
defense matters in or related to the Federated States of Micronesia or 
the Republic of the Marshall Islands pursuant to the U.S.-FSM Compact 
or the U.S.-RMI Compact, including the agreements referred to in 
sections 462(a)(2) of the U.S.-FSM Compact and 462(a)(5) of the U.S.-
RMI Compact. Congress further expresses its intention that any such act 
on the part of either such Government will be viewed by the United 
States as a material breach of the U.S.-FSM Compact or U.S.-RMI 
Compact. The Government of the United States reserves the right in the 
event of such a material breach of the U.S.-FSM Compact by the 
Government of the Federated States of Micronesia or the U.S.-RMI 
Compact by the Government of the Republic of the Marshall Islands to 
take action, including (but not limited to) the suspension in whole or 
in part of the obligations of the Government of the United States to 
that Government.
    (f) Continuing Programs and Laws.--
        (1) Federated states of micronesia and republic of the marshall 
    islands.--In addition to the programs and services set forth in 
    section 221 of the Compact, and pursuant to section 222 of the 
    Compact, the programs and services of the following agencies shall 
    be made available to the Federated States of Micronesia and to the 
    Republic of the Marshall Islands:
            (A) Continuation of the programs and services of the 
        federal emergency management agency.--Except as provided in 
        clauses (ii) and (iii), the programs and services of the 
        Department of Homeland Security, Federal Emergency Management 
        Agency shall continue to be available to the Federated States 
        of Micronesia and the Republic of the Marshall Islands to the 
        same extent as such programs and services were available in 
        fiscal year 2003.
                (i) Paragraph (a)(6) of section 221 of the U.S.-FSM 
            Compact and paragraph (a)(5) of the U.S.-RMI Compact shall 
            each be construed as though the paragraph reads as follows: 
            ``the Department of Homeland Security, United States 
            Federal Emergency Management Agency.''.
                (ii) Subsection (d) of section 211 of the U.S.-FSM 
            Compact and subsection (e) of section 211 of the U.S.-RMI 
            Compact shall each be construed as though the subsection 
            reads as follows: ``Not more than $200,000 (as adjusted for 
            inflation pursuant to section 217 of the U.S.-FSM Compact 
            and section 218 of the U.S.-RMI Compact) shall be made 
            available by the Secretary of the Interior to the 
            Department of Homeland Security, Federal Emergency 
            Management Agency to facilitate the activities of the 
            Federal Emergency Management Agency in accordance with and 
            to the extent provided in the Federal Programs and Services 
            Agreement.''.
                (iii) The Secretary of State, in consultation with the 
            Department of Homeland Security and the Federal Emergency 
            Management Agency, shall immediately undertake negotiations 
            with the Government of the Federated States of Micronesia 
            and the Government of the Republic of the Marshall Islands 
            regarding disaster assistance and shall report to the 
            appropriate committees of Congress no later than June 30, 
            2004, on the outcome of such negotiations, including 
            recommendations for changes to law regarding disaster 
            assistance under the U.S.-FSM Compact and the U.S.-RMI 
            Compact, and including subsidiary agreements as needed to 
            implement such changes to law. If an agreement is not 
            concluded, and legislation enacted which reflects such 
            agreement, before the date which is five years after the 
            date of enactment of this Joint Resolution, the following 
            provisions shall apply:
                ``Paragraph (a)(6) of section 221 of the U.S.-FSM 
            Compact and paragraph (a)(5) of section 221 of the U.S.-RMI 
            Compact shall each be construed and applied as if each 
            provision reads as follows:
                ``The U.S. Agency for International Development shall 
            be responsible for the provision of emergency and disaster 
            relief assistance in accordance with its statutory 
            authorities, regulations and policies. The Republic of the 
            Marshall Islands and the Federated States of Micronesia may 
            additionally request that the President make an emergency 
            or major disaster declaration. If the President declares an 
            emergency or major disaster, the Department of Homeland 
            Security (DHS), the Federal Emergency Management Agency 
            (FEMA) and the U.S. Agency for International Development 
            shall jointly (a) assess the damage caused by the emergency 
            or disaster and (b) prepare a reconstruction plan including 
            an estimate of the total amount of Federal resources that 
            are needed for reconstruction. Pursuant to an interagency 
            agreement, FEMA shall transfer funds from the Disaster 
            Relief Fund in the amount of the estimate, together with an 
            amount to be determined for administrative expenses, to the 
            U.S. Agency for International Development, which shall 
            carry out reconstruction activities in the Republic of the 
            Marshall Islands and the Federated States of Micronesia in 
            accordance with the reconstruction plan. For purposes of 
            Disaster Relief Fund appropriations, the funding of the 
            activities to be carried out pursuant to this paragraph 
            shall be deemed to be necessary expenses in carrying out 
            the Robert T. Stafford Disaster Relief and Emergency 
            Assistance Act (42 U.S.C. 5121 et seq.).
                ``DHS may provide to the Republic of the Marshall 
            Islands and the Federated States of Micronesia preparedness 
            grants to the extent that such assistance is available to 
            the States of the United States. Funding for this 
            assistance may be made available from appropriations made 
            to DHS for preparedness activities.''.
            (B) Treatment of additional programs.--
                (i) Consultation.--The United States appointees to the 
            committees established pursuant to section 213 of the U.S.-
            FSM Compact and section 214 of the U.S.-RMI Compact shall 
            consult with the Secretary of Education regarding the 
            objectives, use, and monitoring of United States financial, 
            program, and technical assistance made available for 
            educational purposes.
                (ii) Continuing programs.--The Government of the United 
            States--

                    (I) shall continue to make available to the 
                Federated States of Micronesia and the Republic of the 
                Marshall Islands for fiscal years 2004 through 2023, 
                the services to individuals eligible for such services 
                under the Individuals with Disabilities Education Act 
                (20 U.S.C. 1400 et seq.) to the extent that such 
                services continue to be available to individuals in the 
                United States; and
                    (II) shall continue to make available to eligible 
                institutions in the Federated States of Micronesia and 
                the Republic of the Marshall Islands, and to students 
                enrolled in such institutions, and in institutions in 
                the United States and its territories, for fiscal years 
                2004 through 2023, grants under subpart 1 of part A of 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070a et seq.) to the extent that such grants continue 
                to be available to institutions and students in the 
                United States.

                (iii) Supplemental education grants.--In lieu of 
            eligibility for appropriations under part A of title I of 
            the Elementary and Secondary Education Act of 1965 (20 
            U.S.C. 6311 et seq.), title I of the Workforce Investment 
            Act of 1998 (29 U.S.C. 2801 et seq.), other than subtitle C 
            of that Act (29 U.S.C. 2881 et seq.) (Job Corps), title II 
            of the Workforce Investment Act of 1998 (20 U.S.C. 9201 et 
            seq.; commonly known as the Adult Education and Family 
            Literacy Act), title I of the Carl D. Perkins Vocational 
            and Technical Education Act of 1998 (20 U.S.C. 2321 et 
            seq.), the Head Start Act (42 U.S.C. 9831 et seq.), and 
            subpart 3 of part A, and part C, of title IV of the Higher 
            Education Act of 1965 (20 U.S.C. 1070b et seq., 42 U.S.C. 
            2751 et seq.), there are authorized to be appropriated to 
            the Secretary of Education to supplement the education 
            grants under section 211(a)(1) of the U.S.-FSM Compact and 
            section 211(a)(1) of the U.S.-RMI Compact, respectively, 
            the following amounts:

                    (I) $12,230,000 for the Federated States of 
                Micronesia for fiscal year 2005 and an equivalent 
                amount, as adjusted for inflation under section 217 of 
                the U.S.-FSM Compact, for each of fiscal years 2005 
                through 2023; and
                    (II) $6,100,000 for the Republic of the Marshall 
                Islands for fiscal year 2005 and an equivalent amount, 
                as adjusted for inflation under section 218 of the 
                U.S.-RMI Compact, for each of fiscal years 2005 through 
                2023,

            except that citizens of the Federated States of Micronesia 
            and the Republic of the Marshall Islands who attend an 
            institution of higher education in the United States or its 
            territories, the Federated States of Micronesia, or the 
            Republic of the Marshall Islands on the date of enactment 
            of this joint resolution may continue to receive assistance 
            under such subpart 3 of part A or part C, for not more than 
            4 academic years after such date to enable such citizens to 
            complete their program of study.
                (iv) Fiscal procedures.--Appropriations made pursuant 
            to clause (iii) shall be used and monitored in accordance 
            with an agreement between the Secretary of Education, the 
            Secretary of Labor, the Secretary of Health and Human 
            Services, and the Secretary of the Interior, and in 
            accordance with the respective Fiscal Procedures Agreements 
            referred to in section 462(b)(4) of the U.S.-FSM Compact 
            and section 462(b)(4) of the U.S.-RMI Compact. The 
            agreement between the Secretary of Education, the Secretary 
            of Labor, the Secretary of Health and Human Services, and 
            the Secretary of the Interior shall provide for the 
            transfer, not later than 60 days after the appropriations 
            made pursuant to clause (iii) become available to the 
            Secretary of Education, the Secretary of Labor, and the 
            Secretary of Health and Human Services, from the Secretary 
            of Education, the Secretary of Labor, and the Secretary of 
            Health and Human Services, to the Secretary of the Interior 
            for disbursement.
                (v) Formula education grants.--For fiscal years 2005 
            through 2023, except as provided in clause (ii) and the 
            exception provided under clause (iii), the Governments of 
            the Federated States of Micronesia and the Republic of the 
            Marshall Islands shall not receive any grant under any 
            formula-grant program administered by the Secretary of 
            Education or the Secretary of Labor, nor any grant provided 
            through the Head Start Act (42 U.S.C. 9831 et seq.) 
            administered by the Secretary of Health and Human Services.
                (vi) Transition.--For fiscal year 2004, the Governments 
            of the Federated States of Micronesia and the Republic of 
            the Marshall Islands shall continue to be eligible for 
            appropriations and to receive grants under the provisions 
            of law specified in clauses (ii) and (iii).
                (vii) Technical assistance.--The Federated States of 
            Micronesia and the Republic of the Marshall Islands may 
            request technical assistance from the Secretary of 
            Education, the Secretary of Health and Human Services, or 
            the Secretary of Labor the terms of which, including 
            reimbursement, shall be negotiated with the participation 
            of the appropriate cabinet officer for inclusion in the 
            Federal Programs and Services Agreement.
                (viii) Continued eligibility for competitive grants.--
            The Governments of the Federated States of Micronesia and 
            the Republic of the Marshall Islands shall continue to be 
            eligible for competitive grants administered by the 
            Secretary of Education, the Secretary of Health and Human 
            Services, and the Secretary of Labor to the extent that 
            such grants continue to be available to State and local 
            governments in the United States.
                (ix) Applicability.--The Republic of Palau shall remain 
            eligible for appropriations and to receive grants under the 
            provisions of law specified in clauses (ii) and (iii) until 
            the end of fiscal year 2007, to the extent the Republic of 
            Palau was so eligible under such provisions in fiscal year 
            2003.
            (C) The Legal Services Corporation.
            (D) The Public Health Service.
            (E) The Rural Housing Service (formerly, the Farmers Home 
        Administration) in the Marshall Islands and each of the four 
        States of the Federated States of Micronesia: Provided, That in 
        lieu of continuation of the program in the Federated States of 
        Micronesia, the President may agree to transfer to the 
        Government of the Federated States of Micronesia without cost, 
        the portfolio of the Rural Housing Service applicable to the 
        Federated States of Micronesia and provide such technical 
        assistance in management of the portfolio as may be requested 
        by the Federated States of Micronesia.
        (2) Tort claims.--The provisions of section 178 of the U.S.-FSM 
    Compact and the U.S.-RMI Compact regarding settlement and payment 
    of tort claims shall apply to employees of any Federal agency of 
    the Government of the United States (and to any other person 
    employed on behalf of any Federal agency of the Government of the 
    United States on the basis of a contractual, cooperative, or 
    similar agreement) which provides any service or carries out any 
    other function pursuant to or in furtherance of any provisions of 
    the U.S.-FSM Compact or the U.S.-RMI Compact or this joint 
    resolution, except for provisions of Title Three of the Compact and 
    of the subsidiary agreements related to such Title, in such area to 
    which such Agreement formerly applied.
        (3) PCB cleanup.--The programs and services of the 
    Environmental Protection Agency regarding PCBs shall, to the extent 
    applicable, as appropriate, and in accordance with applicable law, 
    be construed to be made available to such islands for the cleanup 
    of PCBs imported prior to 1987. The Secretary of the Interior and 
    the Secretary of Defense shall cooperate and assist in any such 
    cleanup activities.
    (g) College of Micronesia.--Until otherwise provided by Act of 
Congress, or until termination of the U.S.-FSM Compact and the U.S.-RMI 
Compact, the College of Micronesia shall retain its status as a land-
grant institution and its eligibility for all benefits and programs 
available to such land-grant institutions.
    (h) Trust Territory Debts to U.S. Federal Agencies.--Neither the 
Government of the Federated States of Micronesia nor the Government of 
the Marshall Islands shall be required to pay to any department, 
agency, independent agency, office, or instrumentality of the United 
States any amounts owed to such department, agency, independent agency, 
office, or instrumentality by the Government of the Trust Territory of 
the Pacific Islands as of the effective date of the Compact. There is 
authorized to be appropriated such sums as may be necessary to carry 
out the purposes of this subsection.
    (i) Judicial Training.--
        (1) In general.--In addition to amounts provided under section 
    211(a)(4) of the U.S.-FSM Compact and the U.S.-RMI Compact, the 
    Secretary of the Interior shall annually provide $300,000 for the 
    training of judges and officials of the judiciary in the Federated 
    States of Micronesia and the Republic of the Marshall Islands in 
    cooperation with the Pacific Islands Committee of the Ninth Circuit 
    Judicial Council and in accordance with and to the extent provided 
    in the Federal Programs and Services Agreement and the Fiscal 
    Procedure Agreement, as appropriate.
        (2) Authorization and continuing appropriation.--There is 
    hereby authorized and appropriated to the Secretary of the 
    Interior, out of any funds in the Treasury not otherwise 
    appropriated, to remain available until expended, for each fiscal 
    year from 2004 through 2023, $300,000, as adjusted for inflation 
    under section 218 of the U.S.-FSM Compact and the U.S.-RMI Compact, 
    to carry out the purposes of this section.
    (j) Technical Assistance.--Technical assistance may be provided 
pursuant to section 224 of the U.S.-FSM Compact or the U.S.-RMI Compact 
by Federal agencies and institutions of the Government of the United 
States to the extent such assistance may be provided to States, 
territories, or units of local government. Such assistance by the 
Forest Service, the Natural Resources Conservation Service, the Fish 
and Wildlife Service, the National Marine Fisheries Service, the United 
States Coast Guard, and the Advisory Council on Historic Preservation, 
the Department of the Interior, and other agencies providing assistance 
under the National Historic Preservation Act (80 Stat. 915; 16 U.S.C. 
470-470t), shall be on a nonreimbursable basis. During the period the 
U.S.-FSM Compact and the U.S.-RMI Compact are in effect, the grant 
programs under the National Historic Preservation Act shall continue to 
apply to the Federated States of Micronesia and the Republic of the 
Marshall Islands in the same manner and to the same extent as prior to 
the approval of the Compact. Any funds provided pursuant to sections 
102(a), 103(a), 103(b), 103(f), 103(g), 103(h), 103(j), 105(c), 105(g), 
105(h), 105(i), 105(j), 105(k), 105(l), and 105(m) of this joint 
resolution shall be in addition to and not charged against any amounts 
to be paid to either the Federated States of Micronesia or the Republic 
of the Marshall Islands pursuant to the U.S.-FSM Compact, the U.S.-RMI 
Compact, or their related subsidiary agreements.
    (k) Prior Service Benefits Program.--Notwithstanding any other 
provision of law, persons who on January 1, 1985, were eligible to 
receive payment under the Prior Service Benefits Program established 
within the Social Security System of the Trust Territory of the Pacific 
Islands because of their services performed for the United States Navy 
or the Government of the Trust Territory of the Pacific Islands prior 
to July 1, 1968, shall continue to receive such payments on and after 
the effective date of the Compact.
    (l) Indefinite Land Use Payments.--There are authorized to be 
appropriated such sums as may be necessary to complete repayment by the 
United States of any debts owed for the use of various lands in the 
Federated States of Micronesia and the Marshall Islands prior to 
January 1, 1985.
    (m) Communicable Disease Control Program.--There are authorized to 
be appropriated for grants to the Government of the Federated States of 
Micronesia, the Government of the Republic of the Marshall Islands, and 
the governments of the affected jurisdictions, such sums as may be 
necessary for purposes of establishing or continuing programs for the 
control and prevention of communicable diseases, including (but not 
limited to) cholera, tuberculosis, and Hansen's Disease. The Secretary 
of the Interior shall assist the Government of the Federated States of 
Micronesia, the Government of the Republic of the Marshall Islands and 
the governments of the affected jurisdictions in designing and 
implementing such a program.
    (n) User Fees.--Any person in the Federated States of Micronesia or 
the Republic of the Marshall Islands shall be liable for user fees, if 
any, for services provided in the Federated States of Micronesia or the 
Republic of the Marshall Islands by the Government of the United States 
to the same extent as any person in the United States would be liable 
for fees, if any, for such services in the United States.
    (o) Treatment of Judgments of Courts of the Federated States of 
Micronesia, the Republic of the Marshall Islands, and the Republic of 
Palau.--No judgment, whenever issued, of a court of the Federated 
States of Micronesia, the Republic of the Marshall Islands, or the 
Republic of Palau, against the United States, its departments and 
agencies, or officials of the United States or any other individuals 
acting on behalf of the United States within the scope of their 
official duty, shall be honored by the United States, or be subject to 
recognition or enforcement in a court in the United States, unless the 
judgment is consistent with the interpretation by the United States of 
international agreements relevant to the judgment. In determining the 
consistency of a judgment with an international agreement, due regard 
shall be given to assurances made by the Executive Branch to Congress 
of the United States regarding the proper interpretation of the 
international agreement.
    (p) Establishment of Trust Funds; Expedition of Process.--
        (1) In general.--The Trust Fund Agreement executed pursuant to 
    the U.S.-FSM Compact and the Trust Fund Agreement executed pursuant 
    to the U.S.-RMI Compact each provides for the establishment of a 
    trust fund.
        (2) Method of establishment.--The trust fund may be established 
    by--
            (A) creating a new legal entity to constitute the trust 
        fund; or
            (B) assuming control of an existing legal entity including, 
        without limitation, a trust fund or other legal entity that was 
        established by or at the direction of the Government of the 
        United States, the Government of the Federated States of 
        Micronesia, the Government of the Republic of the Marshall 
        Islands, or otherwise for the purpose of facilitating or 
        expediting the establishment of the trust fund pursuant to the 
        applicable Trust Fund Agreement.
        (3) Obligations.--For the purpose of expediting the 
    commencement of operations of a trust fund under either Trust Fund 
    Agreement, the trust fund may, but shall not be obligated to, 
    assume any obligations of an existing legal entity and take 
    assignment of any contract or other agreement to which the existing 
    legal entity is party.
        (4) Assistance.--Without limiting the authority that the United 
    States Government may otherwise have under applicable law, the 
    United States Government may, but shall not be obligated to, 
    provide financial, technical, or other assistance directly or 
    indirectly to the Government of the Federated States of Micronesia 
    or the Government of the Republic of the Marshall Islands for the 
    purpose of establishing and operating a trust fund or other legal 
    entity that will solicit bids from, and enter into contracts with, 
    parties willing to serve in such capacities as trustee, depositary, 
    money manager, or investment advisor, with the intention that the 
    contracts will ultimately be assumed by and assigned to a trust 
    fund established pursuant to a Trust Fund Agreement.

SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.

    (a) Assistance to U.S. Firms.--In order to assist the Governments 
of the Federated States of Micronesia and of the Republic of the 
Marshall Islands through private sector firms which may be awarded 
contracts for construction or major repair of capital infrastructure 
within the Federated States of Micronesia or the Republic of the 
Marshall Islands, the United States shall consult with the Governments 
of the Federated States of Micronesia and the Republic of the Marshall 
Islands with respect to any such contracts, and the United States shall 
enter into agreements with such firms whereby such firms will, 
consistent with applicable requirements of such Governments--
        (1) to the maximum extent possible, employ citizens of the 
    Federated States of Micronesia and the Republic of the Marshall 
    Islands;
        (2) to the extent that necessary skills are not possessed by 
    citizens of the Federated States of Micronesia and the Republic of 
    the Marshall Islands, provide on the job training, with particular 
    emphasis on the development of skills relating to operation of 
    machinery and routine and preventative maintenance of machinery and 
    other facilities; and
        (3) provide specific training or other assistance in order to 
    enable the Government to engage in long-term maintenance of 
    infrastructure.
Assistance by such firms pursuant to this section may not exceed 20 
percent of the amount of the contract and shall be made available only 
to such firms which meet the definition of United States firm under the 
nationality rule for suppliers of services of the Agency for 
International Development (hereafter in this section referred to as 
``United States firms''). There are authorized to be appropriated such 
sums as may be necessary for the purposes of this subsection.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to cover any additional 
costs incurred by the Government of the Federated States of Micronesia 
or the Republic of the Marshall Islands if such Governments, pursuant 
to an agreement entered into with the United States, apply a preference 
on the award of contracts to United States firms, provided that the 
amount of such preference does not exceed 10 percent of the amount of 
the lowest qualified bid from a non-United States firm for such 
contract.

SEC. 107. PROHIBITION.

    All laws governing conflicts of interest and post-employment of 
Federal employees shall apply to the implementation of this Act.

SEC. 108. COMPENSATORY ADJUSTMENTS.

    (a) Additional Programs and Services.--In addition to the programs 
and services set forth in section 221 of the U.S.-FSM Compact and the 
U.S.-RMI Compact, and pursuant to section 222 of the U.S.-FSM Compact 
and the U.S.-RMI Compact, the services and programs of the following 
United States agencies shall be made available to the Federated States 
of Micronesia and the Republic of the Marshall Islands: the Small 
Business Administration, Economic Development Administration, the Rural 
Utilities Services (formerly Rural Electrification Administration); the 
programs and services of the Department of Labor under subtitle C of 
title I of the Workforce Investment Act of 1998 (29 U.S.C. 2881 et 
seq.; relating to Job Corps); and the programs and services of the 
Department of Commerce relating to tourism and to marine resource 
development.
    (b) Further Amounts.--
        (1) The joint resolution of January 14, 1986 (Public Law 99-
    239) provided that the governments of the Federated States of 
    Micronesia and the Marshall Islands may submit to Congress reports 
    concerning the overall financial and economic impacts on such areas 
    resulting from the effect of title IV of that joint resolution upon 
    Title Two of the Compact. There were authorized to be appropriated 
    for fiscal years beginning after September 30, 1990, such amounts 
    as necessary, but not to exceed $40,000,000 for the Federated 
    States of Micronesia and $20,000,000 for the Marshall Islands, as 
    provided in appropriation acts, to further compensate the 
    governments of such islands (in addition to the compensation 
    provided in subsections (a) and (b) of section 111 of the joint 
    resolution of January 14, 1986 (Public Law 99-239)) for adverse 
    impacts, if any, on the finances and economies of such areas 
    resulting from the effect of title IV of that joint resolution upon 
    Title Two of the Compact. The joint resolution of January 14, 1986 
    (Public Law 99-239) further provided that at the end of the initial 
    fifteen-year term of the Compact, should any portion of the total 
    amount of funds authorized in section 111 of that resolution not 
    have been appropriated, such amount not yet appropriated may be 
    appropriated, without regard to divisions between amounts 
    authorized in section 111 for the Federated States of Micronesia 
    and for the Marshall Islands, based on either or both such 
    government's showing of such adverse impact, if any, as provided in 
    that subsection.
        (2) The governments of the Federated States of Micronesia and 
    the Republic of the Marshall Islands may each submit no more than 
    one report or request for further compensation under section 111 of 
    the joint resolution of January 14, 1986 (Public Law 99-239) and 
    any such report or request must be submitted by September 30, 2009. 
    Only adverse economic effects occurring during the initial 15-year 
    term of the Compact may be considered for compensation under 
    section 111 of the joint resolution of January 14, 1986 (Public Law 
    99-239).

SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION.

    (a) There are authorized and appropriated to the Department of the 
Interior, out of any funds in the Treasury not otherwise appropriated, 
to remain available until expended, such sums as are necessary to carry 
out the purposes of sections 105(f)(1) and 105(i) of this Act, sections 
211, 212(b), 215, and 217 of the U.S.-FSM Compact, and sections 211, 
212, 213(b), 216, and 218 of the U.S.-RMI Compact, in this and 
subsequent years.
    (b) There are authorized to be appropriated to the Departments, 
agencies, and instrumentalities named in paragraphs (1) and (3) through 
(6) of section 221(a) of the U.S.-FSM Compact and paragraphs (1) and 
(3) through (5) of section 221(a) of the U.S.-RMI Compact, such sums as 
are necessary to carry out the purposes of sections 221(a) of the U.S.-
FSM Compact and the U.S.-RMI Compact, to remain available until 
expended.

SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED STATES OF MICRONESIA, 
              THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC OF 
              PALAU EMPLOYED BY THE GOVERNMENT OF THE UNITED STATES IN 
              THE CONTINENTAL UNITED STATES.

    Section 605 of Public Law 107-67 (the Treasury and General 
Government Appropriations Act, 2002) is amended by striking ``or the 
Republic of the Philippines,'' in the last sentence and inserting the 
following: ``the Republic of the Philippines, the Federated States of 
Micronesia, the Republic of the Marshall Islands, or the Republic of 
Palau,''.

  TITLE II--COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED STATES OF 
          MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS

SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED BETWEEN THE 
              GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 
              GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA AND 
              BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA 
              AND THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL 
              ISLANDS.

    (a) Compact of Free Association, as Amended, Between the Government 
of the United States of America and the Government of the Federated 
States of Micronesia.--The Compact of Free Association, as amended, 
between the Government of the United States of America and the 
Government of the Federated States of Micronesia is as follows:

                                PREAMBLE

 THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF 
                   THE FEDERATED STATES OF MICRONESIA

    Affirming that their Governments and their relationship as 
Governments are founded upon respect for human rights and fundamental 
freedoms for all, and that the people of the Federated States of 
Micronesia have the right to enjoy self-government; and
    Affirming the common interests of the United States of America and 
the Federated States of Micronesia in creating and maintaining their 
close and mutually beneficial relationship through the free and 
voluntary association of their respective Governments; and
    Affirming the interest of the Government of the United States in 
promoting the economic advancement and budgetary self-reliance of the 
Federated States of Micronesia; and
    Recognizing that their relationship until the entry into force on 
November 3, 1986 of the Compact was based upon the International 
Trusteeship System of the United Nations Charter, and in particular 
Article 76 of the Charter; and that pursuant to Article 76 of the 
Charter, the people of the Federated States of Micronesia have 
progressively developed their institutions of self-government, and that 
in the exercise of their sovereign right to self-determination they, 
through their freely-expressed wishes, have adopted a Constitution 
appropriate to their particular circumstances; and
    Recognizing that the Compact reflected their common desire to 
terminate the Trusteeship and establish a government-to-government 
relationship which was in accordance with the new political status 
based on the freely expressed wishes of the people of the Federated 
States of Micronesia and appropriate to their particular circumstances; 
and
    Recognizing that the people of the Federated States of Micronesia 
have and retain their sovereignty and their sovereign right to self-
determination and the inherent right to adopt and amend their own 
Constitution and form of government and that the approval of the entry 
of the Government of the Federated States of Micronesia into the 
Compact by the people of the Federated States of Micronesia constituted 
an exercise of their sovereign right to self-determination; and
    Recognizing the common desire of the people of the United States 
and the people of the Federated States of Micronesia to maintain their 
close government-to-government relationship, the United States and the 
Federated States of Micronesia:
    NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen their 
relationship of free association by amending the Compact, which 
continues to provide a full measure of self-government for the people 
of the Federated States of Micronesia; and
    FURTHER AGREE that the relationship of free association derives 
from and is as set forth in this Compact, as amended, by the 
Governments of the United States and the Federated States of 
Micronesia; and that, during such relationship of free association, the 
respective rights and responsibilities of the Government of the United 
States and the Government of the Federated States of Micronesia in 
regard to this relationship of free association derive from and are as 
set forth in this Compact, as amended.

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

Section 111
    The people of the Federated States of Micronesia, acting through 
the Government established under their Constitution, are self-
governing.

                               Article II

                            Foreign Affairs

Section 121
    (a) The Government of the Federated States of Micronesia has the 
capacity to conduct foreign affairs and shall do so in its own name and 
right, except as otherwise provided in this Compact, as amended.
    (b) The foreign affairs capacity of the Government of the Federated 
States of Micronesia includes:
        (1) the conduct of foreign affairs relating to law of the sea 
    and marine resources matters, including the harvesting, 
    conservation, exploration or exploitation of living and non-living 
    resources from the sea, seabed or subsoil to the full extent 
    recognized under international law;
        (2) the conduct of its commercial, diplomatic, consular, 
    economic, trade, banking, postal, civil aviation, communications, 
    and cultural relations, including negotiations for the receipt of 
    developmental loans and grants and the conclusion of arrangements 
    with other governments and international and intergovernmental 
    organizations, including any matters specially benefiting its 
    individual citizens.
    (c) The Government of the United States recognizes that the 
Government of the Federated States of Micronesia has the capacity to 
enter into, in its own name and right, treaties and other international 
agreements with governments and regional and international 
organizations.
    (d) In the conduct of its foreign affairs, the Government of the 
Federated States of Micronesia confirms that it shall act in accordance 
with principles of international law and shall settle its international 
disputes by peaceful means.
Section 122
    The Government of the United States shall support applications by 
the Government of the Federated States of Micronesia for membership or 
other participation in regional or international organizations as may 
be mutually agreed.
Section 123
    (a) In recognition of the authority and responsibility of the 
Government of the United States under Title Three, the Government of 
the Federated States of Micronesia shall consult, in the conduct of its 
foreign affairs, with the Government of the United States.
    (b) In recognition of the foreign affairs capacity of the 
Government of the Federated States of Micronesia, the Government of the 
United States, in the conduct of its foreign affairs, shall consult 
with the Government of the Federated States of Micronesia on matters 
that the Government of the United States regards as relating to or 
affecting the Government of the Federated States of Micronesia.
Section 124
    The Government of the United States may assist or act on behalf of 
the Government of the Federated States of Micronesia in the area of 
foreign affairs as may be requested and mutually agreed from time to 
time. The Government of the United States shall not be responsible to 
third parties for the actions of the Government of the Federated States 
of Micronesia undertaken with the assistance or through the agency of 
the Government of the United States pursuant to this section unless 
expressly agreed.
Section 125
    The Government of the United States shall not be responsible for 
nor obligated by any actions taken by the Government of the Federated 
States of Micronesia in the area of foreign affairs, except as may from 
time to time be expressly agreed.
Section 126
    At the request of the Government of the Federated States of 
Micronesia and subject to the consent of the receiving state, the 
Government of the United States shall extend consular assistance on the 
same basis as for citizens of the United States to citizens of the 
Federated States of Micronesia for travel outside the Federated States 
of Micronesia, the United States and its territories and possessions.
Section 127
    Except as otherwise provided in this Compact, as amended, or its 
related agreements, all obligations, responsibilities, rights and 
benefits of the Government of the United States as Administering 
Authority which resulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other international agreement to 
the Trust Territory of the Pacific Islands on November 2, 1986, are, as 
of that date, no longer assumed and enjoyed by the Government of the 
United States.

                              Article III

                             Communications

Section 131
    (a) The Government of the Federated States of Micronesia has full 
authority and responsibility to regulate its domestic and foreign 
communications, and the Government of the United States shall provide 
communications assistance as mutually agreed.
    (b) On May 24, 1993, the Government of the Federated States of 
Micronesia elected to undertake all functions previously performed by 
the Government of the United States with respect to domestic and 
foreign communications, except for those functions set forth in a 
separate agreement entered into pursuant to this section of the 
Compact, as amended.
Section 132
    The Government of the Federated States of Micronesia shall permit 
the Government of the United States to operate telecommunications 
services in the Federated States of Micronesia to the extent necessary 
to fulfill the obligations of the Government of the United States under 
this Compact, as amended, in accordance with the terms of separate 
agreements entered into pursuant to this section of the Compact, as 
amended.

                               Article IV

                              Immigration

Section 141
    (a) In furtherance of the special and unique relationship that 
exists between the United States and the Federated States of 
Micronesia, under the Compact, as amended, any person in the following 
categories may be admitted to, lawfully engage in occupations, and 
establish residence as a nonimmigrant in the United States and its 
territories and possessions (the ``United States'') without regard to 
paragraph (5) or (7)(B)(i)(II) of section 212(a) of the Immigration and 
Nationality Act, as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II):
        (1) a person who, on November 2, 1986, was a citizen of the 
    Trust Territory of the Pacific Islands, as defined in Title 53 of 
    the Trust Territory Code in force on January 1, 1979, and has 
    become and remains a citizen of the Federated States of Micronesia;
        (2) a person who acquires the citizenship of the Federated 
    States of Micronesia at birth, on or after the effective date of 
    the Constitution of the Federated States of Micronesia;
        (3) an immediate relative of a person referred to in paragraphs 
    (1) or (2) of this section, provided that such immediate relative 
    is a naturalized citizen of the Federated States of Micronesia who 
    has been an actual resident there for not less than five years 
    after attaining such naturalization and who holds a certificate of 
    actual residence, and further provided, that, in the case of a 
    spouse, such spouse has been married to the person referred to in 
    paragraph (1) or (2) of this section for at least five years, and 
    further provided, that the Government of the United States is 
    satisfied that such naturalized citizen meets the requirement of 
    subsection (b) of section 104 of Public Law 99-239 as it was in 
    effect on the day prior to the effective date of this Compact, as 
    amended;
        (4) a naturalized citizen of the Federated States of Micronesia 
    who was an actual resident there for not less than five years after 
    attaining such naturalization and who satisfied these requirements 
    as of April 30, 2003, who continues to be an actual resident and 
    holds a certificate of actual residence, and whose name is included 
    in a list furnished by the Government of the Federated States of 
    Micronesia to the Government of the United States no later than the 
    effective date of the Compact, as amended, in form and content 
    acceptable to the Government of the United States, provided, that 
    the Government of the United States is satisfied that such 
    naturalized citizen meets the requirement of subsection (b) of 
    section 104 of Public Law 99-239 as it was in effect on the day 
    prior to the effective date of this Compact, as amended; or
        (5) an immediate relative of a citizen of the Federated States 
    of Micronesia, regardless of the immediate relative's country of 
    citizenship or period of residence in the Federated States of 
    Micronesia, if the citizen of the Federated States of Micronesia is 
    serving on active duty in any branch of the United States Armed 
    Forces, or in the active reserves.
    (b) Notwithstanding subsection (a) of this section, a person who is 
coming to the United States pursuant to an adoption outside the United 
States, or for the purpose of adoption in the United States, is 
ineligible for admission under the Compact and the Compact, as amended. 
This subsection shall apply to any person who is or was an applicant 
for admission to the United States on or after March 1, 2003, including 
any applicant for admission in removal proceedings (including appellate 
proceedings) on or after March 1, 2003, regardless of the date such 
proceedings were commenced. This subsection shall have no effect on the 
ability of the Government of the United States or any United States 
State or local government to commence or otherwise take any action 
against any person or entity who has violated any law relating to the 
adoption of any person.
    (c) Notwithstanding subsection (a) of this section, no person who 
has been or is granted citizenship in the Federated States of 
Micronesia, or has been or is issued a Federated States of Micronesia 
passport pursuant to any investment, passport sale, or similar program 
has been or shall be eligible for admission to the United States under 
the Compact or the Compact, as amended.
    (d) A person admitted to the United States under the Compact, or 
the Compact, as amended, shall be considered to have the permission of 
the Government of the United States to accept employment in the United 
States. An unexpired Federated States of Micronesia passport with 
unexpired documentation issued by the Government of the United States 
evidencing admission under the Compact or the Compact, as amended, 
shall be considered to be documentation establishing identity and 
employment authorization under section 274A(b)(1)(B) of the Immigration 
and Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The 
Government of the United States will take reasonable and appropriate 
steps to implement and publicize this provision, and the Government of 
the Federated States of Micronesia will also take reasonable and 
appropriate steps to publicize this provision.
    (e) For purposes of the Compact and the Compact, as amended:
        (1) the term ``residence'' with respect to a person means the 
    person's principal, actual dwelling place in fact, without regard 
    to intent, as provided in section 101(a)(33) of the Immigration and 
    Nationality Act, as amended, 8 U.S.C. 1101(a)(33), and variations 
    of the term ``residence,'' including ``resident'' and ``reside,'' 
    shall be similarly construed;
        (2) the term ``actual residence'' means physical presence in 
    the Federated States of Micronesia during eighty-five percent of 
    the five-year period of residency required by section 141(a)(3) and 
    (4);
        (3) the term ``certificate of actual residence'' means a 
    certificate issued to a naturalized citizen by the Government of 
    the Federated States of Micronesia stating that the citizen has 
    complied with the actual residence requirement of section 141(a)(3) 
    or (4);
        (4) the term ``nonimmigrant'' means an alien who is not an 
    ``immigrant'' as defined in section 101(a)(15) of such Act, 8 
    U.S.C. 1101(a)(15); and
        (5) the term ``immediate relative'' means a spouse, or 
    unmarried son or unmarried daughter less than 21 years of age.
    (f) The Immigration and Nationality Act, as amended, shall apply to 
any person admitted or seeking admission to the United States (other 
than a United States possession or territory where such Act does not 
apply) under the Compact or the Compact, as amended, and nothing in the 
Compact or the Compact, as amended, shall be construed to limit, 
preclude, or modify the applicability of, with respect to such person:
        (1) any ground of inadmissibility or deportability under such 
    Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of such Act, 
    as provided in subsection (a) of this section), and any defense 
    thereto, provided that, section 237(a)(5) of such Act shall be 
    construed and applied as if it reads as follows: ``any alien who 
    has been admitted under the Compact, or the Compact, as amended, 
    who cannot show that he or she has sufficient means of support in 
    the United States, is deportable'';
        (2) the authority of the Government of the United States under 
    section 214(a)(1) of such Act to provide that admission as a 
    nonimmigrant shall be for such time and under such conditions as 
    the Government of the United States may by regulations prescribe;
        (3) except for the treatment of certain documentation for 
    purposes of section 274A(b)(1)(B) of such Act as provided by 
    subsection (d) of this section of the Compact, as amended, any 
    requirement under section 274A, including but not limited to 
    section 274A(b)(1)(E);
        (4) section 643 of the Illegal Immigration Reform and Immigrant 
    Responsibility Act of 1996, Public Law 104-208, and actions taken 
    pursuant to section 643; and
        (5) the authority of the Government of the United States 
    otherwise to administer and enforce the Immigration and Nationality 
    Act, as amended, or other United States law.
    (g) Any authority possessed by the Government of the United States 
under this section of the Compact or the Compact, as amended, may also 
be exercised by the Government of a territory or possession of the 
United States where the Immigration and Nationality Act, as amended, 
does not apply, to the extent such exercise of authority is lawful 
under a statute or regulation of such territory or possession that is 
authorized by the laws of the United States.
    (h) Subsection (a) of this section does not confer on a citizen of 
the Federated States of Micronesia the right to establish the residence 
necessary for naturalization under the Immigration and Nationality Act, 
as amended, or to petition for benefits for alien relatives under that 
Act. Subsection (a) of this section, however, shall not prevent a 
citizen of the Federated States of Micronesia from otherwise acquiring 
such rights or lawful permanent resident alien status in the United 
States.
Section 142
    (a) Any citizen or national of the United States may be admitted, 
to lawfully engage in occupations, and reside in the Federated States 
of Micronesia, subject to the rights of the Government of the Federated 
States of Micronesia to deny entry to or deport any such citizen or 
national as an undesirable alien. Any determination of inadmissibility 
or deportability shall be based on reasonable statutory grounds and 
shall be subject to appropriate administrative and judicial review 
within the Federated States of Micronesia. If a citizen or national of 
the United States is a spouse of a citizen of the Federated States of 
Micronesia, the Government of the Federated States of Micronesia shall 
allow the United States citizen spouse to establish residence. Should 
the Federated States of Micronesia citizen spouse predecease the United 
States citizen spouse during the marriage, the Government of the 
Federated States of Micronesia shall allow the United States citizen 
spouse to continue to reside in the Federated States of Micronesia.
    (b) In enacting any laws or imposing any requirements with respect 
to citizens and nationals of the United States entering the Federated 
States of Micronesia under subsection (a) of this section, including 
any grounds of inadmissibility or deportability, the Government of the 
Federated States of Micronesia shall accord to such citizens and 
nationals of the United States treatment no less favorable than that 
accorded to citizens of other countries.
    (c) Consistent with subsection (a) of this section, with respect to 
citizens and nationals of the United States seeking to engage in 
employment or invest in the Federated States of Micronesia, the 
Government of the Federated States of Micronesia shall adopt 
immigration-related procedures no less favorable than those adopted by 
the Government of the United States with respect to citizens of the 
Federated States of Micronesia seeking employment in the United States.
Section 143
    Any person who relinquishes, or otherwise loses, his United States 
nationality or citizenship, or his Federated States of Micronesia 
citizenship, shall be ineligible to receive the privileges set forth in 
sections 141 and 142. Any such person may apply for admission to the 
United States or the Federated States of Micronesia, as the case may 
be, in accordance with any other applicable laws of the United States 
or the Federated States of Micronesia relating to immigration of aliens 
from other countries. The laws of the Federated States of Micronesia or 
the United States, as the case may be, shall dictate the terms and 
conditions of any such person's stay.

                               Article V

                             Representation

Section 151
    Relations between the Government of the United States and the 
Government of the Federated States of Micronesia shall be conducted in 
accordance with the Vienna Convention on Diplomatic Relations. In 
addition to diplomatic missions and representation, the Governments may 
establish and maintain other offices and designate other 
representatives on terms and in locations as may be mutually agreed.
Section 152
    (a) Any citizen or national of the United States who, without 
authority of the United States, acts as the agent of the Government of 
the Federated States of Micronesia with regard to matters specified in 
the provisions of the Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 611 et seq.), that apply with respect to an agent of 
a foreign principal shall be subject to the requirements of such Act. 
Failure to comply with such requirements shall subject such citizen or 
national to the same penalties and provisions of law as apply in the 
case of the failure of such an agent of a foreign principal to comply 
with such requirements. For purposes of the Foreign Agents Registration 
Act of 1938, the Federated States of Micronesia shall be considered to 
be a foreign country.
    (b) Subsection (a) of this section shall not apply to a citizen or 
national of the United States employed by the Government of the 
Federated States of Micronesia with respect to whom the Government of 
the Federated States of Micronesia from time to time certifies to the 
Government of the United States that such citizen or national is an 
employee of the Federated States of Micronesia whose principal duties 
are other than those matters specified in the Foreign Agents 
Registration Act of 1938, as amended, that apply with respect to an 
agent of a foreign principal. The agency or officer of the United 
States receiving such certifications shall cause them to be filed with 
the Attorney General, who shall maintain a publicly available list of 
the persons so certified.

                               Article VI

                        Environmental Protection

Section 161
    The Governments of the United States and the Federated States of 
Micronesia declare that it is their policy to promote efforts to 
prevent or eliminate damage to the environment and biosphere and to 
enrich understanding of the natural resources of the Federated States 
of Micronesia. In order to carry out this policy, the Government of the 
United States and the Government of the Federated States of Micronesia 
agree to the following mutual and reciprocal undertakings.
    (a) The Government of the United States:
        (1) shall continue to apply the environmental controls in 
    effect on November 2, 1986 to those of its continuing activities 
    subject to section 161(a)(2), unless and until those controls are 
    modified under sections 161(a)(3) and 161(a)(4);
        (2) shall apply the National Environmental Policy Act of 1969, 
    83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities under the 
    Compact, as amended, and its related agreements as if the Federated 
    States of Micronesia were the United States;
        (3) shall comply also, in the conduct of any activity requiring 
    the preparation of an Environmental Impact Statement under section 
    161(a)(2), with standards substantively similar to those required 
    by the following laws of the United States, taking into account the 
    particular environment of the Federated States of Micronesia: the 
    Endangered Species Act of 1973, as amended, 87 Stat. 884, 16 U.S.C. 
    1531 et seq.; the Clean Air Act, as amended, 77 Stat. 392, 42 
    U.S.C. Supp. 7401 et seq.; the Clean Water Act (Federal Water 
    Pollution Control Act), as amended, 86 Stat. 896, 33 U.S.C. 1251 et 
    seq.; Title I of the Marine Protection, Research and Sanctuaries 
    Act of 1972 (the Ocean Dumping Act), 33 U.S.C. 1411 et seq.; the 
    Toxic Substances Control Act, as amended, 15 U.S.C. 2601 et seq.; 
    the Solid Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; 
    and such other environmental protection laws of the United States 
    and of the Federated States of Micronesia, as may be mutually 
    agreed from time to time with the Government of the Federated 
    States of Micronesia; and
        (4) shall develop, prior to conducting any activity requiring 
    the preparation of an Environmental Impact Statement under section 
    161(a)(2), written standards and procedures, as agreed with the 
    Government of the Federated States of Micronesia, to implement the 
    substantive provisions of the laws made applicable to U.S. 
    Government activities in the Federated States of Micronesia, 
    pursuant to section 161(a)(3).
    (b) The Government of the Federated States of Micronesia shall 
continue to develop and implement standards and procedures to protect 
its environment. As a reciprocal obligation to the undertakings of the 
Government of the United States under this Article, the Federated 
States of Micronesia, taking into account its particular environment, 
shall continue to develop and implement standards for environmental 
protection substantively similar to those required of the Government of 
the United States by section 161(a)(3) prior to its conducting 
activities in the Federated States of Micronesia, substantively 
equivalent to activities conducted there by the Government of the 
United States and, as a further reciprocal obligation, shall enforce 
those standards.
    (c) Section 161(a), including any standard or procedure applicable 
thereunder, and section 161(b) may be modified or superseded in whole 
or in part by agreement of the Government of the United States and the 
Government of the Federated States of Micronesia.
    (d) In the event that an Environmental Impact Statement is no 
longer required under the laws of the United States for major Federal 
actions significantly affecting the quality of the human environment, 
the regulatory regime established under sections 161(a)(3) and 
161(a)(4) shall continue to apply to such activities of the Government 
of the United States until amended by mutual agreement.
    (e) The President of the United States may exempt any of the 
activities of the Government of the United States under this Compact, 
as amended, and its related agreements from any environmental standard 
or procedure which may be applicable under sections 161(a)(3) and 
161(a)(4) if the President determines it to be in the paramount 
interest of the Government of the United States to do so, consistent 
with Title Three of this Compact, as amended, and the obligations of 
the Government of the United States under international law. Prior to 
any decision pursuant to this subsection, the views of the Government 
of the Federated States of Micronesia shall be sought and considered to 
the extent practicable. If the President grants such an exemption, to 
the extent practicable, a report with his reasons for granting such 
exemption shall be given promptly to the Government of the Federated 
States of Micronesia.
    (f) The laws of the United States referred to in section 161(a)(3) 
shall apply to the activities of the Government of the United States 
under this Compact, as amended, and its related agreements only to the 
extent provided for in this section.
Section 162
    The Government of the Federated States of Micronesia may bring an 
action for judicial review of any administrative agency action or any 
activity of the Government of the United States pursuant to section 
161(a) for enforcement of the obligations of the Government of the 
United States arising thereunder. The United States District Court for 
the District of Hawaii and the United States District Court for the 
District of Columbia shall have jurisdiction over such action or 
activity, and over actions brought under section 172(b) which relate to 
the activities of the Government of the United States and its officers 
and employees, governed by section 161, provided that:
        (a) Such actions may only be civil actions for any appropriate 
    civil relief other than punitive damages against the Government of 
    the United States or, where required by law, its officers in their 
    official capacity; no criminal actions may arise under this 
    section.
        (b) Actions brought pursuant to this section may be initiated 
    only by the Government of the Federated States of Micronesia.
        (c) Administrative agency actions arising under section 161 
    shall be reviewed pursuant to the standard of judicial review set 
    forth in 5 U.S.C. 706.
        (d) The United States District Court for the District of Hawaii 
    and the United States District Court for the District of Columbia 
    shall have jurisdiction to issue all necessary processes, and the 
    Government of the United States agrees to submit itself to the 
    jurisdiction of the court; decisions of the United States District 
    Court shall be reviewable in the United States Court of Appeals for 
    the Ninth Circuit or the United States Court of Appeals for the 
    District of Columbia, respectively, or in the United States Supreme 
    Court as provided by the laws of the United States.
        (e) The judicial remedy provided for in this section shall be 
    the exclusive remedy for the judicial review or enforcement of the 
    obligations of the Government of the United States under this 
    Article and actions brought under section 172(b) which relate to 
    the activities of the Government of the United States and its 
    officers and employees governed by section 161.
        (f) In actions pursuant to this section, the Government of the 
    Federated States of Micronesia shall be treated as if it were a 
    United States citizen.
Section 163
    (a) For the purpose of gathering data necessary to study the 
environmental effects of activities of the Government of the United 
States subject to the requirements of this Article, the Government of 
the Federated States of Micronesia shall be granted access to 
facilities operated by the Government of the United States in the 
Federated States of Micronesia, to the extent necessary for this 
purpose, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the United States under Title Three.
    (b) The Government of the United States, in turn, shall be granted 
access to the Federated States of Micronesia for the purpose of 
gathering data necessary to discharge its obligations under this 
Article, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the Federated States of Micronesia under Title One, and to the 
extent necessary for this purpose shall be granted access to documents 
and other information to the same extent similar access is provided the 
Government of the Federated States of Micronesia under the Freedom of 
Information Act, 5 U.S.C. 552.
    (c) The Government of the Federated States of Micronesia shall not 
impede efforts by the Government of the United States to comply with 
applicable standards and procedures.

                              Article VII

                        General Legal Provisions

Section 171
    Except as provided in this Compact, as amended, or its related 
agreements, the application of the laws of the United States to the 
Trust Territory of the Pacific Islands by virtue of the Trusteeship 
Agreement ceased with respect to the Federated States of Micronesia on 
November 3, 1986, the date the Compact went into effect.
Section 172
    (a) Every citizen of the Federated States of Micronesia who is not 
a resident of the United States shall enjoy the rights and remedies 
under the laws of the United States enjoyed by any non-resident alien.
    (b) The Government of the Federated States of Micronesia and every 
citizen of the Federated States of Micronesia shall be considered to be 
a ``person'' within the meaning of the Freedom of Information Act, 5 
U.S.C. 552, and of the judicial review provisions of the Administrative 
Procedure Act, 5 U.S.C. 701-706, except that only the Government of the 
Federated States of Micronesia may seek judicial review under the 
Administrative Procedure Act or judicial enforcement under the Freedom 
of Information Act when such judicial review or enforcement relates to 
the activities of the Government of the United States governed by 
sections 161 and 162.
Section 173
    The Governments of the United States and the Federated States of 
Micronesia agree to adopt and enforce such measures, consistent with 
this Compact, as amended, and its related agreements, as may be 
necessary to protect the personnel, property, installations, services, 
programs and official archives and documents maintained by the 
Government of the United States in the Federated States of Micronesia 
pursuant to this Compact, as amended, and its related agreements and by 
the Government of the Federated States of Micronesia in the United 
States pursuant to this Compact, as amended, and its related 
agreements.
Section 174
    Except as otherwise provided in this Compact, as amended, and its 
related agreements:
        (a) The Government of the Federated States of Micronesia, and 
    its agencies and officials, shall be immune from the jurisdiction 
    of the court of the United States, and the Government of the United 
    States, and its agencies and officials, shall be immune from the 
    jurisdiction of the courts of the Federated States of Micronesia.
        (b) The Government of the United States accepts responsibility 
    for and shall pay:
            (1) any unpaid money judgment rendered by the High Court of 
        the Trust Territory of the Pacific Islands against the 
        Government of the United States with regard to any cause of 
        action arising as a result of acts or omissions of the 
        Government of the Trust Territory of the Pacific Islands or the 
        Government of the United States prior to November 3, 1986;
            (2) any claim settled by the claimant and the Government of 
        the Trust Territory of the Pacific Islands but not paid as of 
        the November 3, 1986; and
            (3) settlement of any administrative claim or of any action 
        before a court of the Trust Territory of the Pacific Islands or 
        the Government of the United States, arising as a result of 
        acts or omissions of the Government of the Trust Territory of 
        the Pacific Islands or the Government of the United States.
        (c) Any claim not referred to in section 174(b) and arising 
    from an act or omission of the Government of the Trust Territory of 
    the Pacific Islands or the Government of the United States prior to 
    the effective date of the Compact shall be adjudicated in the same 
    manner as a claim adjudicated according to section 174(d). In any 
    claim against the Government of the Trust Territory of the Pacific 
    Islands, the Government of the United States shall stand in the 
    place of the Government of the Trust Territory of the Pacific 
    Islands. A judgment on any claim referred to in section 174(b) or 
    this subsection, not otherwise satisfied by the Government of the 
    United States, may be presented for certification to the United 
    States Court of Appeals for the Federal Circuit, or its successor 
    courts, which shall have jurisdiction therefore, notwithstanding 
    the provisions of 28 U.S.C. 1502, and which court's decisions shall 
    be reviewable as provided by the laws of the United States. The 
    United States Court of Appeals for the Federal Circuit shall 
    certify such judgment, and order payment thereof, unless it finds, 
    after a hearing, that such judgment is manifestly erroneous as to 
    law or fact, or manifestly excessive. In either of such cases the 
    United States Court of Appeals for the Federal Circuit shall have 
    jurisdiction to modify such judgment.
        (d) The Government of the Federated States of Micronesia shall 
    not be immune from the jurisdiction of the courts of the United 
    States, and the Government of the United States shall not be immune 
    from the jurisdiction of the courts of the Federated States of 
    Micronesia in any civil case in which an exception to foreign state 
    immunity is set forth in the Foreign Sovereign Immunities Act (28 
    U.S.C. 1602 et seq.) or its successor statutes.
Section 175
    (a) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern mutual assistance and cooperation in law 
enforcement matters, including the pursuit, capture, imprisonment and 
extradition of fugitives from justice and the transfer of prisoners, as 
well as other law enforcement matters. In the United States, the laws 
of the United States governing international extradition, including 18 
U.S.C. 3184, 3186 and 3188-95, shall be applicable to the extradition 
of fugitives under the separate agreement, and the laws of the United 
States governing the transfer of prisoners, including 18 U.S.C. 4100-
15, shall be applicable to the transfer of prisoners under the separate 
agreement; and
    (b) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern requirements relating to labor recruitment 
practices, including registration, reporting, suspension or revocation 
of authorization to recruit persons for employment in the United 
States, and enforcement for violations of such requirements.
Section 176
    The Government of the Federated States of Micronesia confirms that 
final judgments in civil cases rendered by any court of the Trust 
Territory of the Pacific Islands shall continue in full force and 
effect, subject to the constitutional power of the courts of the 
Federated States of Micronesia to grant relief from judgments in 
appropriate cases.
Section 177
    Section 177 of the Compact entered into force with respect to the 
Federated States of Micronesia on November 3, 1986 as follows:
        ``(a) The Government of the United States accepts the 
    responsibility for compensation owing to citizens of the Marshall 
    Islands, or the Federated States of Micronesia, or Palau for loss 
    or damage to property and person of the citizens of the Marshall 
    Islands, or the Federated States of Micronesia, resulting from the 
    nuclear testing program which the Government of the United States 
    conducted in the Northern Marshall Islands between June 30, 1946, 
    and August 18, 1958.
        ``(b) The Government of the United States and the Government of 
    the Marshall Islands shall set forth in a separate agreement 
    provisions for the just and adequate settlement of all such claims 
    which have arisen in regard to the Marshall Islands and its 
    citizens and which have not as yet been compensated or which in the 
    future may arise, for the continued administration by the 
    Government of the United States of direct radiation related medical 
    surveillance and treatment programs and radiological monitoring 
    activities and for such additional programs and activities as may 
    be mutually agreed, and for the assumption by the Government of the 
    Marshall Islands of responsibility for enforcement of limitations 
    on the utilization of affected areas developed in cooperation with 
    the Government of the United States and for the assistance by the 
    Government of the United States in the exercise of such 
    responsibility as may be mutually agreed. This separate agreement 
    shall come into effect simultaneously with this Compact and shall 
    remain in effect in accordance with its own terms.
        ``(c) The Government of the United States shall provide to the 
    Government of the Marshall Islands, on a grant basis, the amount of 
    $150 million to be paid and distributed in accordance with the 
    separate agreement referred to in this Section, and shall provide 
    the services and programs set forth in this separate agreement, the 
    language of which is incorporated into this Compact.''.
    The Compact, as amended, makes no changes to, and has no effect 
upon, Section 177 of the Compact, nor does the Compact, as amended, 
change or affect the separate agreement referred to in Section 177 of 
the Compact including Articles IX and X of that separate agreement, and 
measures taken by the parties thereunder.
Section 178
    (a) The Federal agencies of the Government of the United States 
that provide the services and related programs in the Federated States 
of Micronesia pursuant to Title Two are authorized to settle and pay 
tort claims arising in the Federated States of Micronesia from the 
activities of such agencies or from the acts or omissions of the 
employees of such agencies. Except as provided in section 178(b), the 
provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply exclusively 
to such administrative settlements and payments.
    (b) Claims under section 178(a) that cannot be settled under 
section 178(a) shall be disposed of exclusively in accordance with 
Article II of Title Four. Arbitration awards rendered pursuant to this 
subsection shall be paid out of funds under 31 U.S.C. 1304.
    (c) The Government of the United States and the Government of the 
Federated States of Micronesia shall, in the separate agreement 
referred to in section 231, provide for:
        (1) the administrative settlement of claims referred to in 
    section 178(a), including designation of local agents in each State 
    of the Federated States of Micronesia; such agents to be empowered 
    to accept, investigate and settle such claims, in a timely manner, 
    as provided in such separate agreements; and
        (2) arbitration, referred to in section 178(b), in a timely 
    manner, at a site convenient to the claimant, in the event a claim 
    is not otherwise settled pursuant to section 178(a).
    (d) The provisions of section 174(d) shall not apply to claims 
covered by this section.
    (e) Except as otherwise explicitly provided by law of the United 
States, neither the Government of the United States, its 
instrumentalities, nor any person acting on behalf of the Government of 
the United States, shall be named a party in any action based on, or 
arising out of, the activity or activities of a recipient of any grant 
or other assistance provided by the Government of the United States (or 
the activity or activities of the recipient's agency or any other 
person or entity acting on behalf of the recipient).
Section 179
    (a) The courts of the Federated States of Micronesia shall not 
exercise criminal jurisdiction over the Government of the United 
States, or its instrumentalities.
    (b) The courts of the Federated States of Micronesia shall not 
exercise criminal jurisdiction over any person if the Government of the 
United States provides notification to the Government of the Federated 
States of Micronesia that such person was acting on behalf of the 
Government of the United States, for actions taken in furtherance of 
section 221 or 224 of this amended Compact, or any other provision of 
law authorizing financial, program, or service assistance to the 
Federated States of Micronesia.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

Section 211 - Sector Grants
    (a) In order to assist the Government of the Federated States of 
Micronesia in its efforts to promote the economic advancement, 
budgetary self-reliance, and economic self-sufficiency of its people, 
and in recognition of the special relationship that exists between the 
Federated States of Micronesia and the United States, the Government of 
the United States shall provide assistance on a sector grant basis for 
a period of twenty years in the amounts set forth in section 216, 
commencing on the effective date of this Compact, as amended. Such 
grants shall be used for assistance in the sectors of education, health 
care, private sector development, the environment, public sector 
capacity building, and public infrastructure, or for other sectors as 
mutually agreed, with priorities in the education and health care 
sectors. For each year such sector grant assistance is made available, 
the proposed division of this amount among these sectors shall be 
certified to the Government of the United States by the Government of 
the Federated States of Micronesia and shall be subject to the 
concurrence of the Government of the United States. In such case, the 
Government of the United States shall disburse the agreed upon amounts 
and monitor the use of such sector grants in accordance with the 
provisions of this Article and the Agreement Concerning Procedures for 
the Implementation of United States Economic Assistance Provided in the 
Compact, as Amended, of Free Association Between the Government of the 
United States of America and the Government of the Federated States of 
Micronesia (``Fiscal Procedures Agreement'') which shall come into 
effect simultaneously with this Compact, as amended. The provision of 
any United States assistance under the Compact, as amended, the Fiscal 
Procedures Agreement, the Trust Fund Agreement, or any other subsidiary 
agreement to the Compact, as amended, shall constitute ``a particular 
distribution . . . required by the terms or special nature of the 
assistance'' for purposes of Article XII, section 1(b) of the 
Constitution of the Federated States of Micronesia.
        (1) Education.--United States grant assistance shall be made 
    available in accordance with the plan described in subsection (c) 
    of this section to support and improve the educational system of 
    the Federated States of Micronesia and develop the human, 
    financial, and material resources necessary for the Government of 
    the Federated States of Micronesia to perform these services. 
    Emphasis should be placed on advancing a quality basic education 
    system.
        (2) Health.--United States grant assistance shall be made 
    available in accordance with the plan described in subsection (c) 
    of this section to support and improve the delivery of preventive, 
    curative and environmental care and develop the human, financial, 
    and material resources necessary for the Government of the 
    Federated States of Micronesia to perform these services.
        (3) Private sector development.--United States grant assistance 
    shall be made available in accordance with the plan described in 
    subsection (c) of this section to support the efforts of the 
    Government of the Federated States of Micronesia to attract foreign 
    investment and increase indigenous business activity by vitalizing 
    the commercial environment, ensuring fair and equitable application 
    of the law, promoting adherence to core labor standards, and 
    maintaining progress toward privatization of state-owned and 
    partially state-owned enterprises, and engaging in other reforms.
        (4) Capacity building in the public sector.--United States 
    grant assistance shall be made available in accordance with the 
    plan described in subsection (c) of this section to support the 
    efforts of the Government of the Federated States of Micronesia to 
    build effective, accountable and transparent national, state, and 
    local government and other public sector institutions and systems.
        (5) Environment.--United States grant assistance shall be made 
    available in accordance with the plan described in subsection (c) 
    of this section to increase environmental protection; conserve and 
    achieve sustainable use of natural resources; and engage in 
    environmental infrastructure planning, design construction and 
    operation.
        (6) Public infrastructure.--
            (i) U.S. annual grant assistance shall be made available in 
        accordance with a list of specific projects included in the 
        plan described in subsection (c) of this section to assist the 
        Government of the Federated States of Micronesia in its efforts 
        to provide adequate public infrastructure.
            (ii) Infrastructure and maintenance Fund.--Five percent of 
        the annual public infrastructure grant made available under 
        paragraph (i) of this subsection shall be set aside, with an 
        equal contribution from the Government of the Federated States 
        of Micronesia, as a contribution to an Infrastructure 
        Maintenance Fund (IMF). Administration of the Infrastructure 
        Maintenance Fund shall be governed by the Fiscal Procedures 
        Agreement.
    (b) Humanitarian Assistance.--Federated States of Micronesia 
Program. In recognition of the special development needs of the 
Federated States of Micronesia, the Government of the United States 
shall make available to the Government of the Federated States of 
Micronesia, on its request and to be deducted from the grant amount 
made available under subsection (a) of this section, a Humanitarian 
Assistance - Federated States of Micronesia (``HAFSM'') Program with 
emphasis on health, education, and infrastructure (including 
transportation), projects. The terms and conditions of the HAFSM shall 
be set forth in the Agreement Regarding the Military Use and Operating 
Rights of the Government of the United States in the Government of the 
Federated States of Micronesia Concluded Pursuant to Sections 321 and 
323 of the Compact of Free Association, as Amended which shall come 
into effect simultaneously with the amendments to this Compact.
    (c) Development Plan.--The Government of the Federated States of 
Micronesia shall prepare and maintain an official overall development 
plan. The plan shall be strategic in nature, shall be continuously 
reviewed and updated through the annual budget process, and shall make 
projections on a multi-year rolling basis. Each of the sectors named in 
subsection (a) of this section, or other sectors as mutually agreed, 
shall be accorded specific treatment in the plan. Insofar as grants 
funds are involved, the plan shall be subject to the concurrence of the 
Government of the United States.
    (d) Disaster Assistance Emergency Fund.--An amount of two hundred 
thousand dollars ($200,000) shall be provided annually, with an equal 
contribution from the Government of the Federated States of Micronesia, 
as a contribution to a ``Disaster Assistance Emergency Fund (DAEF).'' 
Any funds from the DAEF may be used only for assistance and 
rehabilitation resulting from disasters and emergencies. The funds will 
be accessed upon declaration by the Government of the Federated States 
of Micronesia, with the concurrence of the United States Chief of 
Mission to the Federated States of Micronesia. The Administration of 
the DAEF shall be governed by the Fiscal Procedures Agreement.
Section 212 - Accountability
    (a) Regulations and policies normally applicable to United States 
financial assistance to its state and local governments, as reflected 
in the Fiscal Procedures Agreement, shall apply to each sector grant 
described in section 211, and to grants administered under section 221 
below, except as modified in the separate agreements referred to in 
section 231 of this Compact, as amended, or by United States law. The 
Government of the United States, after annual consultations with the 
Federated States of Micronesia, may attach reasonable terms and 
conditions, including annual performance indicators that are necessary 
to ensure effective use of United States assistance and reasonable 
progress toward achieving program objectives. The Government of the 
United States may seek appropriate remedies for noncompliance with the 
terms and conditions attached to the assistance, or for failure to 
comply with section 234, including withholding assistance.
    (b) The Government of the United States shall, for each fiscal year 
of the twenty years during which assistance is to be provided on a 
sector grant basis under section 211, grant the Government of the 
Federated States of Micronesia an amount equal to the lesser of (i) one 
half of the reasonable, properly documented cost incurred during each 
fiscal year to conduct the annual audit required under Article VIII (2) 
of the Fiscal Procedures Agreement or (ii) $500,000. Such amount will 
not be adjusted for inflation under section 217 or otherwise.
Section 213 - Joint Economic Management Committee
    The Governments of the United States and the Federated States of 
Micronesia shall establish a Joint Economic Management Committee, 
composed of a U.S. chair, two other members from the Government of the 
United States and two members from the Government of the Federated 
States of Micronesia. The Joint Economic Management Committee shall 
meet at least once each year to review the audits and reports required 
under this Title, evaluate the progress made by the Federated States of 
Micronesia in meeting the objectives identified in its plan described 
in subsection (c) of section 211, with particular focus on those parts 
of the plan dealing with the sectors identified in subsection (a) of 
section 211, identify problems encountered, and recommend ways to 
increase the effectiveness of U.S. assistance made available under this 
Title. The establishment and operations of the Joint Economic 
Management Committee shall be governed by the Fiscal Procedures 
Agreement.
Section 214 - Annual Report
    The Government of the Federated States of Micronesia shall report 
annually to the President of the United States on the use of United 
States sector grant assistance and other assistance and progress in 
meeting mutually agreed program and economic goals. The Joint Economic 
Management Committee shall review and comment on the report and make 
appropriate recommendations based thereon.
Section 215 - Trust Fund
    (a) The United States shall contribute annually for twenty years 
from the effective date of this Compact, as amended, in the amounts set 
forth in section 216 into a Trust Fund established in accordance with 
the Agreement Between the Government of the United States of America 
and the Government of the Federated States of Micronesia Implementing 
Section 215 and Section 216 of the Compact, as Amended, Regarding a 
Trust Fund (``Trust Fund Agreement''). Upon termination of the annual 
financial assistance under section 211, the proceeds of the fund shall 
thereafter be used for the purposes described in section 211 or as 
otherwise mutually agreed.
    (b) The United States contribution into the Trust Fund described in 
subsection(a) of this section is conditioned on the Government of the 
Federated States of Micronesia contributing to the Trust Fund at least 
$30 million, prior to September 30, 2004. Any funds received by the 
Federated States of Micronesia under section 111 (d) of Public Law 99-
239 (January 14, 1986), or successor provisions, would be contributed 
to the Trust Fund as a Federated States of Micronesia contribution.
    (c) The terms regarding the investment and management of funds and 
use of the income of the Trust Fund shall be set forth in the separate 
Trust Fund Agreement described in subsection (a) of this section. Funds 
derived from United States investment shall not be subject to Federal 
or state taxes in the United States or the Federated States of 
Micronesia. The Trust Fund Agreement shall also provide for annual 
reports to the Government of the United States and to the Government of 
the Federated States of Micronesia. The Trust Fund Agreement shall 
provide for appropriate distributions of trust fund proceeds to the 
Federated States of Micronesia and for appropriate remedies for the 
failure of the Federated States of Micronesia to use income of the 
Trust Fund for the annual grant purposes set forth in section 211. 
These remedies may include the return to the United States of the 
present market value of its contributions to the Trust Fund and the 
present market value of any undistributed income on the contributions 
of the United States. If this Compact, as amended, is terminated, the 
provisions of sections 451 through 453 of this Compact, as amended, 
shall govern treatment of any U.S. contributions to the Trust Fund or 
accrued interest thereon.
Section 216 - Sector Grant Funding and Trust Fund Contributions
    The funds described in sections 211, 212(b) and 215 shall be made 
available as follows:


                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Audit Grant
                     Fiscal year                       Annual Grants   Section 212(b)     Trust Fund      Total
                                                        Section 211    (amount up to)    Section 215
----------------------------------------------------------------------------------------------------------------
2004................................................       76.2              .5               16          92.7
2005................................................       76.2              .5               16          92.7
2006................................................       76.2              .5               16          92.7
2007................................................       75.4              .5              16.8         92.7
2008................................................       74.6              .5              17.6         92.7
2009................................................       73.8              .5              18.4         92.7
2010................................................        73               .5              19.2         92.7
2011................................................       72.2              .5               20          92.7
2012................................................       71.4              .5              20.8         92.7
2013................................................       70.6              .5              21.6         92.7
2014................................................       69.8              .5              22.4         92.7
2015................................................        69               .5              23.2         92.7
2016................................................       68.2              .5               24          92.7
2017................................................       67.4              .5              24.8         92.7
2018................................................       66.6              .5              25.6         92.7
2019................................................       65.8              .5              26.4         92.7
2020................................................        65               .5              27.2         92.7
2021................................................       64.2              .5               28          92.7
2022................................................       63.4              .5              28.8         92.7
2023................................................       62.6              .5              29.6         92.7
----------------------------------------------------------------------------------------------------------------

Section 217 - Inflation Adjustment
    Except for the amounts provided for audits under section 212(b), 
the amounts stated in this Title shall be adjusted for each United 
States Fiscal Year by the percent that equals two-thirds of the percent 
change in the United States Gross Domestic Product Implicit Price 
Deflator, or 5 percent, whichever is less in any one year, using the 
beginning of Fiscal Year 2004 as a base.
Section 218 - Carry-Over of Unused Funds
    If in any year the funds made available by the Government of the 
United States for that year pursuant to this Article are not completely 
obligated by the Government of the Federated States of Micronesia, the 
unobligated balances shall remain available in addition to the funds to 
be provided in subsequent years.

                               Article II

                    Services and Program Assistance

Section 221
    (a) Services.--The Government of the United States shall make 
available to the Federated States of Micronesia, in accordance with and 
to the extent provided in the Federal Programs and Services Agreement 
referred to in section 231, the services and related programs of:
        (1) the United States Weather Service;
        (2) the United States Postal Service;
        (3) the United States Federal Aviation Administration;
        (4) the United States Department of Transportation;
        (5) the Federal Deposit Insurance Corporation (for the benefit 
    only of the Bank of the Federated States of Micronesia); and
        (6) the Department of Homeland Security, and the United States 
    Agency for International Development, Office of Foreign Disaster 
    Assistance.
Upon the effective date of this Compact, as amended, the United States 
Departments and Agencies named or having responsibility to provide 
these services and related programs shall have the authority to 
implement the relevant provisions of the Federal Programs and Services 
Agreement referred to in section 231.
    (b) Programs.--
        (1) With the exception of the services and programs covered by 
    subsection (a) of this section, and unless the Congress of the 
    United States provides otherwise, the Government of the United 
    States shall make available to the Federated States of Micronesia 
    the services and programs that were available to the Federated 
    States of Micronesia on the effective date of this Compact, as 
    amended, to the extent that such services and programs continue to 
    be available to State and local governments of the United States. 
    As set forth in the Fiscal Procedures Agreement, funds provided 
    under subsection (a) of section 211 will be considered to be local 
    revenues of the Government of the Federated States of Micronesia 
    when used as the local share required to obtain Federal programs 
    and services.
        (2) Unless provided otherwise by U.S. law, the services and 
    programs described in paragraph (1) of this subsection shall be 
    extended in accordance with the terms of the Federal Programs and 
    Services Agreement referred to in section 231.
    (c) The Government of the United States shall have and exercise 
such authority as is necessary to carry out its responsibilities under 
this Title and the separate agreements referred to in amended section 
231, including the authority to monitor and administer all service and 
program assistance provided by the United States to the Federated 
States of Micronesia. The Federal Programs and Services Agreement 
referred to in amended section 231 shall also set forth the extent to 
which services and programs shall be provided to the Federated States 
of Micronesia.
    (d) Except as provided elsewhere in this Compact, as amended, under 
any separate agreement entered into under this Compact, as amended, or 
otherwise under U.S. law, all Federal domestic programs extended to or 
operating in the Federated States of Micronesia shall be subject to all 
applicable criteria, standards, reporting requirements, auditing 
procedures, and other rules and regulations applicable to such programs 
and services when operating in the United States.
    (e) The Government of the United States shall make available to the 
Federated States of Micronesia alternate energy development projects, 
studies, and conservation measures to the extent provided for the 
Freely Associated States in the laws of the United States.
Section 222
    The Government of the United States and the Government of the 
Federated States of Micronesia may agree from time to time to extend to 
the Federated States of Micronesia additional United States grant 
assistance, services and programs, as provided under the laws of the 
United States. Unless inconsistent with such laws, or otherwise 
specifically precluded by the Government of the United States at the 
time such additional grant assistance, services, or programs are 
extended, the Federal Programs and Services Agreement referred to 
section 231 shall apply to any such assistance, services or programs.
Section 223
    The Government of the Federated States of Micronesia shall make 
available to the Government of the United States at no cost such land 
as may be necessary for the operations of the services and programs 
provided pursuant to this Article, and such facilities as are provided 
by the Government of the Federated States of Micronesia at no cost to 
the Government of the United States as of the effective date of this 
Compact, as amended, or as may be mutually agreed thereafter.
Section 224
    The Government of the Federated States of Micronesia may request, 
from time to time, technical assistance from the Federal agencies and 
institutions of the Government of the United States, which are 
authorized to grant such technical assistance in accordance with its 
laws. If technical assistance is granted pursuant to such a request, 
the Government of the United States shall provide the technical 
assistance in a manner which gives priority consideration to the 
Federated States of Micronesia over other recipients not a part of the 
United States, its territories or possessions, and equivalent 
consideration to the Federated States of Micronesia with respect to 
other states in Free Association with the United States. Such 
assistance shall be made available on a reimbursable or non-
reimbursable basis to the extent provided by United States law.

                              Article III

                       Administrative Provisions

Section 231
    The specific nature, extent and contractual arrangements of the 
services and programs provided for in section 221 of this Compact, as 
amended, as well as the legal status of agencies of the Government of 
the United States, their civilian employees and contractors, and the 
dependents of such personnel while present in the Federated States of 
Micronesia, and other arrangements in connection with the assistance, 
services, or programs furnished by the Government of the United States, 
are set forth in a Federal Programs and Services Agreement which shall 
come into effect simultaneously with this Compact, as amended.
Section 232
    The Government of the United States, in consultation with the 
Government of the Federated States of Micronesia, shall determine and 
implement procedures for the periodic audit of all grants and other 
assistance made under Article I of this Title and of all funds expended 
for the services and programs provided under Article II of this Title. 
Further, in accordance with the Fiscal Procedures Agreement described 
in subsection (a) of section 211, the Comptroller General of the United 
States shall have such powers and authorities as described in sections 
102 (c) and 110 (c) of Public Law 99-239, 99 Stat. 1777-78, and 99 
Stat. 1799 (January 14, 1986).
Section 233
    Approval of this Compact, as amended, by the Government of the 
United States, in accordance with its constitutional processes, shall 
constitute a pledge by the United States that the sums and amounts 
specified as sector grants in section 211 of this Compact, as amended, 
shall be appropriated and paid to the Federated States of Micronesia 
for such period as those provisions of this Compact, as amended, remain 
in force, subject to the terms and conditions of this Title and related 
subsidiary agreements.
Section 234
    The Government of the Federated States of Micronesia pledges to 
cooperate with, permit, and assist if reasonably requested, designated 
and authorized representatives of the Government of the United States 
charged with investigating whether Compact funds, or any other 
assistance authorized under this Compact, as amended, have, or are 
being, used for purposes other than those set forth in this Compact, as 
amended, or its subsidiary agreements. In carrying out this 
investigative authority, such United States Government representatives 
may request that the Government of the Federated States of Micronesia 
subpoena documents and records and compel testimony in accordance with 
the laws and Constitution of the Federated States of Micronesia. Such 
assistance by the Government of the Federated States of Micronesia to 
the Government of the United States shall not be unreasonably withheld. 
The obligation of the Government of the Federated States of Micronesia 
to fulfill its pledge herein is a condition to its receiving payment of 
such funds or other assistance authorized under this Compact, as 
amended. The Government of the United States shall pay any reasonable 
costs for extraordinary services executed by the Government of the 
Federated States of Micronesia in carrying out the provisions of this 
section.

                               Article IV

                                 Trade

Section 241
    The Federated States of Micronesia is not included in the customs 
territory of the United States.
Section 242
    The President shall proclaim the following tariff treatment for 
articles imported from the Federated States of Micronesia which shall 
apply during the period of effectiveness of this title:
        (a) Unless otherwise excluded, articles imported from the 
    Federated States of Micronesia, subject to the limitations imposed 
    under section 503(b) of title V of the Trade Act of 1974 (19 U.S.C. 
    2463(b)), shall be exempt from duty.
        (b) Only tuna in airtight containers provided for in heading 
    1604.14.22 of the Harmonized Tariff Schedule of the United States 
    that is imported from the Federated States of Micronesia and the 
    Republic of the Marshall Islands during any calendar year not to 
    exceed 10 percent of apparent United States consumption of tuna in 
    airtight containers during the immediately preceding calendar year, 
    as reported by the National Marine Fisheries Service, shall be 
    exempt from duty; but the quantity of tuna given duty-free 
    treatment under this paragraph for any calendar year shall be 
    counted against the aggregated quantity of tuna in airtight 
    containers that is dutiable under rate column numbered 1 of such 
    heading 1604.14.22 for that calendar year.
        (c) The duty-free treatment provided under subsection (a) shall 
    not apply to--
            (1) watches, clocks, and timing apparatus provided for in 
        Chapter 91, excluding heading 9113, of the Harmonized Tariff 
        Schedule of the United States;
            (2) buttons (whether finished or not finished) provided for 
        in items 9606.21.40 and 9606.29.20 of such Schedule;
            (3) textile and apparel articles which are subject to 
        textile agreements; and
            (4) footwear, handbags, luggage, flat goods, work gloves, 
        and leather wearing apparel which were not eligible articles 
        for purposes of title V of the Trade Act of 1974 (19 U.S.C. 
        2461, et seq.) on April 1, 1984.
        (d) If the cost or value of materials produced in the customs 
    territory of the United States is included with respect to an 
    eligible article which is a product of the Federated States of 
    Micronesia, an amount not to exceed 15 percent of the appraised 
    value of the article at the time it is entered that is attributable 
    to such United States cost or value may be applied for duty 
    assessment purposes toward determining the percentage referred to 
    in section 503(a)(2) of title V of the Trade Act of 1974.
Section 243
    Articles imported from the Federated States of Micronesia which are 
not exempt from duty under subsections (a), (b), (c), and (d) of 
section 242 shall be subject to the rates of duty set forth in column 
numbered 1-general of the Harmonized Tariff Schedule of the United 
States (HTSUS).
Section 244
    (a) All products of the United States imported into the Federated 
States of Micronesia shall receive treatment no less favorable than 
that accorded like products of any foreign country with respect to 
customs duties or charges of a similar nature and with respect to laws 
and regulations relating to importation, exportation, taxation, sale, 
distribution, storage or use.
    (b) The provisions of subsection (a) shall not apply to advantages 
accorded by the Federated States of Micronesia by virtue of their full 
membership in the Pacific Island Countries Trade Agreement (PICTA), 
done on August 18, 2001, to those governments listed in Article 26 of 
PICTA, as of the date the Compact, as amended, is signed.
    (c) Prior to entering into consultations on, or concluding, a free 
trade agreement with governments not listed in Article 26 of PICTA, the 
Federated States of Micronesia shall consult with the United States 
regarding whether or how subsection (a) of section 244 shall be 
applied.

                               Article V

                          Finance and Taxation

Section 251
    The currency of the United States is the official circulating legal 
tender of the Federated States of Micronesia. Should the Government of 
the Federated States of Micronesia act to institute another currency, 
the terms of an appropriate currency transitional period shall be as 
agreed with the Government of the United States.
Section 252
    The Government of the Federated States of Micronesia may, with 
respect to United States persons, tax income derived from sources 
within its respective jurisdiction, property situated therein, 
including transfers of such property by gift or at death, and products 
consumed therein, in such manner as the Government of the Federated 
States of Micronesia deems appropriate. The determination of the source 
of any income, or the situs of any property, shall for purposes of this 
Compact be made according to the United States Internal Revenue Code.
Section 253
    A citizen of the Federated States of Micronesia, domiciled therein, 
shall be exempt from estate, gift, and generation-skipping transfer 
taxes imposed by the Government of the United States, provided that 
such citizen of the Federated States of Micronesia is neither a citizen 
nor a resident of the United States.
Section 254
    (a) In determining any income tax imposed by the Government of the 
Federated States of Micronesia, the Government of the Federated States 
of Micronesia shall have authority to impose tax upon income derived by 
a resident of the Federated States of Micronesia from sources without 
the Federated States of Micronesia, in the same manner and to the same 
extent as the Government of the Federated States of Micronesia imposes 
tax upon income derived from within its own jurisdiction. If the 
Government of the Federated States of Micronesia exercises such 
authority as provided in this subsection, any individual resident of 
the Federated States of Micronesia who is subject to tax by the 
Government of the United States on income which is also taxed by the 
Government of the Federated States of Micronesia shall be relieved of 
liability to the Government of the United States for the tax which, but 
for this subsection, would otherwise be imposed by the Government of 
the United States on such income. However, the relief from liability to 
the United States Government referred to in the preceding sentence 
means only relief in the form of the foreign tax credit (or deduction 
in lieu thereof) available with respect to the income taxes of a 
possession of the United States, and relief in the form of the 
exclusion under section 911 of the Internal Revenue Code of 1986. For 
purposes of this section, the term ``resident of the Federated States 
of Micronesia'' shall be deemed to include any person who was 
physically present in the Federated States of Micronesia for a period 
of 183 or more days during any taxable year.
    (b) If the Government of the Federated States of Micronesia 
subjects income to taxation substantially similar to that imposed by 
the Trust Territory Code in effect on January 1, 1980, such Government 
shall be deemed to have exercised the authority described in section 
254(a).
Section 255
    For purposes of section 274(h)(3)(A) of the United States Internal 
Revenue Code of 1986, the term ``North American Area'' shall include 
the Federated States of Micronesia.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

Section 311
    (a) The Government of the United States has full authority and 
responsibility for security and defense matters in or relating to the 
Federated States of Micronesia.
    (b) This authority and responsibility includes:
        (1) the obligation to defend the Federated States of Micronesia 
    and its people from attack or threats thereof as the United States 
    and its citizens are defended;
        (2) the option to foreclose access to or use of the Federated 
    States of Micronesia by military personnel or for the military 
    purposes of any third country; and
        (3) the option to establish and use military areas and 
    facilities in the Federated States of Micronesia, subject to the 
    terms of the separate agreements referred to in sections 321 and 
    323.
    (c) The Government of the United States confirms that it shall act 
in accordance with the principles of international law and the Charter 
of the United Nations in the exercise of this authority and 
responsibility.
Section 312
    Subject to the terms of any agreements negotiated in accordance 
with sections 321 and 323, the Government of the United States may 
conduct within the lands, waters and airspace of the Federated States 
of Micronesia the activities and operations necessary for the exercise 
of its authority and responsibility under this Title.
Section 313
    (a) The Government of the Federated States of Micronesia shall 
refrain from actions that the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Federated States of Micronesia.
    (b) The consultations referred to in this section shall be 
conducted expeditiously at senior levels of the two Governments, and 
the subsequent determination by the Government of the United States 
referred to in this section shall be made only at senior interagency 
levels of the Government of the United States.
    (c) The Government of the Federated States of Micronesia shall be 
afforded, on an expeditious basis, an opportunity to raise its concerns 
with the United States Secretary of State personally and the United 
States Secretary of Defense personally regarding any determination made 
in accordance with this section.
Section 314
    (a) Unless otherwise agreed, the Government of the United States 
shall not, in the Federated States of Micronesia:
        (1) test by detonation or dispose of any nuclear weapon, nor 
    test, dispose of, or discharge any toxic chemical or biological 
    weapon; or
        (2) test, dispose of, or discharge any other radioactive, toxic 
    chemical or biological materials in an amount or manner which would 
    be hazardous to public health or safety.
    (b) Unless otherwise agreed, other than for transit or overflight 
purposes or during time of a national emergency declared by the 
President of the United States, a state of war declared by the Congress 
of the United States or as necessary to defend against an actual or 
impending armed attack on the United States, the Federated States of 
Micronesia or the Republic of the Marshall Islands, the Government of 
the United States shall not store in the Federated States of Micronesia 
or the Republic of the Marshall Islands any toxic chemical weapon, nor 
any radioactive materials nor any toxic chemical materials intended for 
weapons use.
    (c) Radioactive, toxic chemical, or biological materials not 
intended for weapons use shall not be affected by section 314(b).
    (d) No material or substance referred to in this section shall be 
stored in the Federated States of Micronesia except in an amount and 
manner which would not be hazardous to public health or safety. In 
determining what shall be an amount or manner which would be hazardous 
to public health or safety under this section, the Government of the 
United States shall comply with any applicable mutual agreement, 
international guidelines accepted by the Government of the United 
States, and the laws of the United States and their implementing 
regulations.
    (e) Any exercise of the exemption authority set forth in section 
161(e) shall have no effect on the obligations of the Government of the 
United States under this section or on the application of this 
subsection.
    (f) The provisions of this section shall apply in the areas in 
which the Government of the Federated States of Micronesia exercises 
jurisdiction over the living resources of the seabed, subsoil or water 
column adjacent to its coasts.
Section 315
    The Government of the United States may invite members of the armed 
forces of other countries to use military areas and facilities in the 
Federated States of Micronesia, in conjunction with and under the 
control of United States Armed Forces. Use by units of the armed forces 
of other countries of such military areas and facilities, other than 
for transit and overflight purposes, shall be subject to consultation 
with and, in the case of major units, approval of the Government of the 
Federated States of Micronesia.
Section 316
    The authority and responsibility of the Government of the United 
States under this Title may not be transferred or otherwise assigned.

                               Article II

                Defense Facilities and Operating Rights

Section 321
    (a) Specific arrangements for the establishment and use by the 
Government of the United States of military areas and facilities in the 
Federated States of Micronesia are set forth in separate agreements, 
which shall remain in effect in accordance with the terms of such 
agreements.
    (b) If, in the exercise of its authority and responsibility under 
this Title, the Government of the United States requires the use of 
areas within the Federated States of Micronesia in addition to those 
for which specific arrangements are concluded pursuant to section 
321(a), it may request the Government of the Federated States of 
Micronesia to satisfy those requirements through leases or other 
arrangements. The Government of the Federated States of Micronesia 
shall sympathetically consider any such request and shall establish 
suitable procedures to discuss it with and provide a prompt response to 
the Government of the United States.
    (c) The Government of the United States recognizes and respects the 
scarcity and special importance of land in the Federated States of 
Micronesia. In making any requests pursuant to section 321(b), the 
Government of the United States shall follow the policy of requesting 
the minimum area necessary to accomplish the required security and 
defense purpose, of requesting only the minimum interest in real 
property necessary to support such purpose, and of requesting first to 
satisfy its requirement through public real property, where available, 
rather than through private real property.
Section 322
    The Government of the United States shall provide and maintain 
fixed and floating aids to navigation in the Federated States of 
Micronesia at least to the extent necessary for the exercise of its 
authority and responsibility under this Title.
Section 323
    The military operating rights of the Government of the United 
States and the legal status and contractual arrangements of the United 
States Armed Forces, their members, and associated civilians, while 
present in the Federated States of Micronesia are set forth in separate 
agreements, which shall remain in effect in accordance with the terms 
of such agreements.

                              Article III

         Defense Treaties and International Security Agreements

Section 331
    Subject to the terms of this Compact, as amended, and its related 
agreements, the Government of the United States, exclusively, has 
assumed and enjoys, as to the Federated States of Micronesia, all 
obligations, responsibilities, rights and benefits of:
    (a) Any defense treaty or other international security agreement 
applied by the Government of the United States as Administering 
Authority of the Trust Territory of the Pacific Islands as of November 
2, 1986.
    (b) Any defense treaty or other international security agreement to 
which the Government of the United States is or may become a party 
which it determines to be applicable in the Federated States of 
Micronesia. Such a determination by the Government of the United States 
shall be preceded by appropriate consultation with the Government of 
the Federated States of Micronesia.

                               Article IV

              Service in Armed Forces of the United States

Section 341
    Any person entitled to the privileges set forth in Section 141 
(with the exception of any person described in section 141(a)(5) who is 
not a citizen of the Federated States of Micronesia) shall be eligible 
to volunteer for service in the Armed Forces of the United States, but 
shall not be subject to involuntary induction into military service of 
the United States as long as such person has resided in the United 
States for a period of less than one year, provided that no time shall 
count towards this one year while a person admitted to the United 
States under the Compact, or the Compact, as amended, is engaged in 
full-time study in the United States. Any person described in section 
141(a)(5) who is not a citizen of the Federated States of Micronesia 
shall be subject to United States laws relating to selective service.
Section 342
    The Government of the United States shall have enrolled, at any one 
time, at least one qualified student from the Federated States of 
Micronesia, as may be nominated by the Government of the Federated 
States of Micronesia, in each of:
    (a) The United States Coast Guard Academy pursuant to 14 U.S.C. 
195.
    (b) The United States Merchant Marine Academy pursuant to 46 U.S.C. 
1295(b)(6), provided that the provisions of 46 U.S.C. 1295b(b)(6)(C) 
shall not apply to the enrollment of students pursuant to section 
342(b) of this Compact, as amended.

                               Article V

                           General Provisions

Section 351
    (a) The Government of the United States and the Government of the 
Federated States of Micronesia shall continue to maintain a Joint 
Committee empowered to consider disputes arising under the 
implementation of this Title and its related agreements.
    (b) The membership of the Joint Committee shall comprise selected 
senior officials of the two Governments. The senior United States 
military commander in the Pacific area shall be the senior United 
States member of the Joint Committee. For the meetings of the Joint 
Committee, each of the two Governments may designate additional or 
alternate representatives as appropriate for the subject matter under 
consideration.
    (c) Unless otherwise mutually agreed, the Joint Committee shall 
meet annually at a time and place to be designated, after appropriate 
consultation, by the Government of the United States. The Joint 
Committee also shall meet promptly upon request of either of its 
members. The Joint Committee shall follow such procedures, including 
the establishment of functional subcommittees, as the members may from 
time to time agree. Upon notification by the Government of the United 
States, the Joint Committee of the United States and the Federated 
States of Micronesia shall meet promptly in a combined session with the 
Joint Committee established and maintained by the Government of the 
United States and the Republic of the Marshall Islands to consider 
matters within the jurisdiction of the two Joint Committees.
    (d) Unresolved issues in the Joint Committee shall be referred to 
the Governments for resolution, and the Government of the Federated 
States of Micronesia shall be afforded, on an expeditious basis, an 
opportunity to raise its concerns with the United States Secretary of 
Defense personally regarding any unresolved issue which threatens its 
continued association with the Government of the United States.
Section 352
    In the exercise of its authority and responsibility under Title 
Three, the Government of the United States shall accord due respect to 
the authority and responsibility of the Government of the Federated 
States of Micronesia under Titles One, Two and Four and to the 
responsibility of the Government of the Federated States of Micronesia 
to assure the well-being of its people.
Section 353
    (a) The Government of the United States shall not include the 
Government of the Federated States of Micronesia as a named party to a 
formal declaration of war, without that Government's consent.
    (b) Absent such consent, this Compact, as amended, is without 
prejudice, on the ground of belligerence or the existence of a state of 
war, to any claims for damages which are advanced by the citizens, 
nationals or Government of the Federated States of Micronesia, which 
arise out of armed conflict subsequent to November 3, 1986, and which 
are:
        (1) petitions to the Government of the United States for 
    redress; or
        (2) claims in any manner against the government, citizens, 
    nationals or entities of any third country.
    (c) Petitions under section 353(b)(1) shall be treated as if they 
were made by citizens of the United States.
Section 354
    (a) The Government of the United States and the Government of the 
Federated States of Micronesia are jointly committed to continue their 
security and defense relations, as set forth in this Title. 
Accordingly, it is the intention of the two countries that the 
provisions of this Title shall remain binding as long as this Compact, 
as amended, remains in effect, and thereafter as mutually agreed, 
unless earlier terminated by mutual agreement pursuant to section 441, 
or amended pursuant to Article III of Title Four. If at any time the 
Government of the United States, or the Government of the Federated 
States of Micronesia, acting unilaterally, terminates this Title, such 
unilateral termination shall be considered to be termination of the 
entire Compact, in which case the provisions of section 442 and 452 (in 
the case of termination by the Government of the United States) or 
sections 443 and 453 (in the case of termination by the Government of 
the Federated States of Micronesia), with the exception of paragraph 
(3) of subsection (a) of section 452 or paragraph (3) of subsection (a) 
of section 453, as the case may be, shall apply.
    (b) The Government of the United States recognizes, in view of the 
special relationship between the Government of the United States and 
the Government of the Federated States of Micronesia, and in view of 
the existence of the separate agreement regarding mutual security 
concluded with the Government of the Federated States of Micronesia 
pursuant to sections 321 and 323, that, even if this Title should 
terminate, any attack on the Federated States of Micronesia during the 
period in which such separate agreement is in effect, would constitute 
a threat to the peace and security of the entire region and a danger to 
the United States. In the event of such an attack, the Government of 
the United States would take action to meet the danger to the United 
States and to the Federated States of Micronesia in accordance with its 
constitutional processes.
    (c) As reflected in Article 21(1)(b) of the Trust Fund Agreement, 
the Government of the United States and the Government of the Federated 
States of Micronesia further recognize, in view of the special 
relationship between their countries, that even if this Title should 
terminate, the Government of the Federated States of Micronesia shall 
refrain from actions which the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Federated States of Micronesia or 
the Republic of the Marshall Islands.

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

Section 411
    Pursuant to section 432 of the Compact and subject to subsection 
(e) of section 461 of the Compact, as amended, the Compact, as amended, 
shall come into effect upon mutual agreement between the Government of 
the United States and the Government of the Federated States of 
Micronesia subsequent to completion of the following:
        (a) Approval by the Government of the Federated States of 
    Micronesia in accordance with its constitutional processes.
        (b) Approval by the Government of the United States in 
    accordance with its constitutional processes.

                               Article II

                   Conference and Dispute Resolution

Section 421
    The Government of the United States shall confer promptly at the 
request of the Government of the Federated States of Micronesia and 
that Government shall confer promptly at the request of the Government 
of the United States on matters relating to the provisions of this 
Compact, as amended, or of its related agreements.
Section 422
    In the event the Government of the United States or the Government 
of the Federated States of Micronesia, after conferring pursuant to 
section 421, determines that there is a dispute and gives written 
notice thereof, the two Governments shall make a good faith effort to 
resolve the dispute between themselves.
Section 423
    If a dispute between the Government of the United States and the 
Government of the Federated States of Micronesia cannot be resolved 
within 90 days of written notification in the manner provided in 
section 422, either party to the dispute may refer it to arbitration in 
accordance with section 424.
Section 424
    Should a dispute be referred to arbitration as provided for in 
section 423, an Arbitration Board shall be established for the purpose 
of hearing the dispute and rendering a decision which shall be binding 
upon the two parties to the dispute unless the two parties mutually 
agree that the decision shall be advisory. Arbitration shall occur 
according to the following terms:
        (a) An Arbitration Board shall consist of a Chairman and two 
    other members, each of whom shall be a citizen of a party to the 
    dispute. Each of the two Governments which is a party to the 
    dispute shall appoint one member to the Arbitration Board. If 
    either party to the dispute does not fulfill the appointment 
    requirements of this section within 30 days of referral of the 
    dispute to arbitration pursuant to section 423, its member on the 
    Arbitration Board shall be selected from its own standing list by 
    the other party to the dispute. Each Government shall maintain a 
    standing list of 10 candidates. The parties to the dispute shall 
    jointly appoint a Chairman within 15 days after selection of the 
    other members of the Arbitration Board. Failing agreement on a 
    Chairman, the Chairman shall be chosen by lot from the standing 
    lists of the parties to the dispute within 5 days after such 
    failure.
        (b) Unless otherwise provided in this Compact, as amended, or 
    its related agreements, the Arbitration Board shall have 
    jurisdiction to hear and render its final determination on all 
    disputes arising exclusively under Articles I, II, III, IV and V of 
    Title One, Title Two, Title Four, and their related agreements.
        (c) Each member of the Arbitration Board shall have one vote. 
    Each decision of the Arbitration Board shall be reached by majority 
    vote.
        (d) In determining any legal issue, the Arbitration Board may 
    have reference to international law and, in such reference, shall 
    apply as guidelines the provisions set forth in Article 38 of the 
    Statute of the International Court of Justice.
        (e) The Arbitration Board shall adopt such rules for its 
    proceedings as it may deem appropriate and necessary, but such 
    rules shall not contravene the provisions of this Compact, as 
    amended. Unless the parties provide otherwise by mutual agreement, 
    the Arbitration Board shall endeavor to render its decision within 
    30 days after the conclusion of arguments. The Arbitration Board 
    shall make findings of fact and conclusions of law and its members 
    may issue dissenting or individual opinions. Except as may be 
    otherwise decided by the Arbitration Board, one-half of all costs 
    of the arbitration shall be borne by the Government of the United 
    States and the remainder shall be borne by the Government of the 
    Federated States of Micronesia.

                              Article III

                               Amendment

Section 431
    The provisions of this Compact, as amended, may be further amended 
by mutual agreement of the Government of the United States and the 
Government of the Federated States of Micronesia, in accordance with 
their respective constitutional processes.

                               Article IV

                              Termination

Section 441
    This Compact, as amended, may be terminated by mutual agreement of 
the Government of the Federated States of Micronesia and the Government 
of the United States, in accordance with their respective 
constitutional processes. Such mutual termination of this Compact, as 
amended, shall be without prejudice to the continued application of 
section 451 of this Compact, as amended, and the provisions of the 
Compact, as amended, set forth therein.
Section 442
    Subject to section 452, this Compact, as amended, may be terminated 
by the Government of the United States in accordance with its 
constitutional processes. Such termination shall be effective on the 
date specified in the notice of termination by the Government of the 
United States but not earlier than six months following delivery of 
such notice. The time specified in the notice of termination may be 
extended. Such termination of this Compact, as amended, shall be 
without prejudice to the continued application of section 452 of this 
Compact, as amended, and the provisions of the Compact, as amended, set 
forth therein.
Section 443
    This Compact, as amended, shall be terminated by the Government of 
the Federated States of Micronesia, pursuant to its constitutional 
processes, subject to section 453 if the people represented by that 
Government vote in a plebiscite to terminate the Compact, as amended, 
or by another process permitted by the FSM constitution and mutually 
agreed between the Governments of the United States and the Federated 
States of Micronesia. The Government of the Federated States of 
Micronesia shall notify the Government of the United States of its 
intention to call such a plebiscite, or to pursue another mutually 
agreed and constitutional process, which plebiscite or process shall 
take place not earlier than three months after delivery of such notice. 
The plebiscite or other process shall be administered by the Government 
of the Federated States of Micronesia in accordance with its 
constitutional and legislative processes. If a majority of the valid 
ballots cast in the plebiscite or other process favors termination, the 
Government of the Federated States of Micronesia shall, upon 
certification of the results of the plebiscite or other process, give 
notice of termination to the Government of the United States, such 
termination to be effective on the date specified in such notice but 
not earlier than three months following the date of delivery of such 
notice. The time specified in the notice of termination may be 
extended.

                               Article V

                             Survivability

Section 451
    (a) Should termination occur pursuant to section 441, economic and 
other assistance by the Government of the United States shall continue 
only if and as mutually agreed by the Governments of the United States 
and the Federated States of Micronesia, and in accordance with the 
parties' respective constitutional processes.
    (b) In view of the special relationship of the United States and 
the Federated States of Micronesia, as reflected in subsections (b) and 
(c) of section 354 of this Compact, as amended, and the separate 
agreement entered into consistent with those subsections, if 
termination occurs pursuant to section 441 prior to the twentieth 
anniversary of the effective date of this Compact, as amended, the 
United States shall continue to make contributions to the Trust Fund 
described in section 215 of this Compact, as amended.
    (c) In view of the special relationship of the United States and 
the Federated States of Micronesia described in subsection (b) of this 
section, if termination occurs pursuant to section 441 following the 
twentieth anniversary of the effective date of this Compact, as 
amended, the Federated States of Micronesia shall be entitled to 
receive proceeds from the Trust Fund described in section 215 of this 
Compact, as amended, in the manner described in those provisions and 
the Trust Fund Agreement governing the distribution of such proceeds.
Section 452
    (a) Should termination occur pursuant to section 442 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this Compact, as amended, shall 
remain in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
        (1) Article VI and sections 172, 173, 176 and 177 of Title One;
        (2) Sections 232 and 234 of Title Two;
        (3) Title Three; and
        (4) Articles II, III, V and VI of Title Four.
    (b) Should termination occur pursuant to section 442 before the 
twentieth anniversary of the effective date of the Compact, as amended:
        (1) Except as provided in paragraph (2) of this subsection and 
    subsection (c) of this section, economic and other assistance by 
    the United States shall continue only if and as mutually agreed by 
    the Governments of the United States and the Federated States of 
    Micronesia.
        (2) In view of the special relationship of the United States 
    and the Federated States of Micronesia, as reflected in subsections 
    (b) and (c) of section 354 of this Compact, as amended, and the 
    separate agreement regarding mutual security, and the Trust Fund 
    Agreement, the United States shall continue to make contributions 
    to the Trust Fund described in section 215 of this Compact, as 
    amended, in the manner described in the Trust Fund Agreement.
    (c) In view of the special relationship of the United States and 
the Federated States of Micronesia, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 442 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Federated States of 
Micronesia shall continue to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this Compact, as amended, in the 
manner described in those provisions and the Trust Fund Agreement.
Section 453
    (a) Should termination occur pursuant to section 443 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this Compact, as amended, shall 
remain in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
        (1) Article VI and sections 172, 173, 176 and 177 of Title One;
        (2) Sections 232 and 234 of Title Two;
        (3) Title Three; and
        (4) Articles II, III, V and VI of Title Four.
    (b) Upon receipt of notice of termination pursuant to section 443, 
the Government of the United States and the Government of the Federated 
States of Micronesia shall promptly consult with regard to their future 
relationship. Except as provided in subsection (c) and (d) of this 
section, these consultations shall determine the level of economic and 
other assistance, if any, which the Government of the United States 
shall provide to the Government of the Federated States of Micronesia 
for the period ending on the twentieth anniversary of the effective 
date of this Compact, as amended, and for any period thereafter, if 
mutually agreed.
    (c) In view of the special relationship of the United States and 
the Federated States of Micronesia, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 443 prior to the twentieth anniversary of 
the effective date of this Compact, as amended, the United States shall 
continue to make contributions to the Trust Fund described in section 
215 of this Compact, as amended, in the manner described in the Trust 
Fund Agreement.
    (d) In view of the special relationship of the United States and 
the Federated States of Micronesia, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 443 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Federated States of 
Micronesia shall continue to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this Compact, as amended, in the 
manner described in those provisions and the Trust Fund Agreement.
Section 454
    Notwithstanding any other provision of this Compact, as amended:
        (a) The Government of the United States reaffirms its 
    continuing interest in promoting the economic advancement and 
    budgetary self-reliance of the people of the Federated States of 
    Micronesia.
        (b) The separate agreements referred to in Article II of Title 
    Three shall remain in effect in accordance with their terms.

                               Article VI

                          Definition of Terms

Section 461
    For the purpose of this Compact, as amended, only, and without 
prejudice to the views of the Government of the United States or the 
Government of the Federated States of Micronesia as to the nature and 
extent of the jurisdiction of either of them under international law, 
the following terms shall have the following meanings:
        (a) ``Trust Territory of the Pacific Islands'' means the area 
    established in the Trusteeship Agreement consisting of the former 
    administrative districts of Kosrae, Yap, Ponape, the Marshall 
    Islands and Truk as described in Title One, Trust Territory Code, 
    section 1, in force on January 1, 1979. This term does not include 
    the area of Palau or the Northern Mariana Islands.
        (b) ``Trusteeship Agreement'' means the agreement setting forth 
    the terms of trusteeship for the Trust Territory of the Pacific 
    Islands, approved by the Security Council of the United Nations 
    April 2, 1947, and by the United States July 18, 1947, entered into 
    force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 8 U.N.T.S. 189.
         (c) ``The Federated States of Micronesia'' and ``the Republic 
    of the Marshall Islands'' are used in a geographic sense and 
    include the land and water areas to the outer limits of the 
    territorial sea and the air space above such areas as now or 
    hereafter recognized by the Government of the United States.
        (d) ``Compact'' means the Compact of Free Association Between 
    the United States and the Federated States of Micronesia and the 
    Marshall Islands, that was approved by the United States Congress 
    in section 201 of Public Law 99-239 (Jan. 14, 1986) and went into 
    effect with respect to the Federated States of Micronesia on 
    November 3, 1986.
        (e) ``Compact, as amended'' means the Compact of Free 
    Association Between the United States and the Federated States of 
    Micronesia, as amended. The effective date of the Compact, as 
    amended, shall be on a date to be determined by the President of 
    the United States, and agreed to by the Government of the Federated 
    States of Micronesia, following formal approval of the Compact, as 
    amended, in accordance with section 411 of this Compact, as 
    amended.
        (f) ``Government of the Federated States of Micronesia'' means 
    the Government established and organized by the Constitution of the 
    Federated States of Micronesia including all the political 
    subdivisions and entities comprising that Government.
        (g) ``Government of the Republic of the Marshall Islands'' 
    means the Government established and organized by the Constitution 
    of the Republic of the Marshall Islands including all the political 
    subdivisions and entities comprising that Government.
        (h) The following terms shall be defined consistent with the 
    1998 Edition of the Radio Regulations of the International 
    Telecommunications Union as follows:
            (1) ``Radiocommunication'' means telecommunication by means 
        of radio waves.
            (2) ``Station'' means one or more transmitters or receivers 
        or a combination of transmitters and receivers, including the 
        accessory equipment, necessary at one location for carrying on 
        a radiocommunication service, or the radio astronomy service.
            (3) ``Broadcasting Service'' means a radiocommunication 
        service in which the transmissions are intended for direct 
        reception by the general public. This service may include sound 
        transmissions, television transmissions or other types of 
        transmission.
            (4) ``Broadcasting Station'' means a station in the 
        broadcasting service.
            (5) ``Assignment (of a radio frequency or radio frequency 
        channel)'' means an authorization given by an administration 
        for a radio station to use a radio frequency or radio frequency 
        channel under specified conditions.
            (6) ``Telecommunication'' means any transmission, emission 
        or reception of signs, signals, writings, images and sounds or 
        intelligence of any nature by wire, radio, optical or other 
        electromagnetic systems.
        (i) ``Military Areas and Facilities'' means those areas and 
    facilities in the Federated States of Micronesia reserved or 
    acquired by the Government of the Federated States of Micronesia 
    for use by the Government of the United States, as set forth in the 
    separate agreements referred to in section 321.
        (j) ``Tariff Schedules of the United States'' means the Tariff 
    Schedules of the United States as amended from time to time and as 
    promulgated pursuant to United States law and includes the Tariff 
    Schedules of the United States Annotated (TSUSA), as amended.
        (k) ``Vienna Convention on Diplomatic Relations'' means the 
    Vienna Convention on Diplomatic Relations, done April 18, 1961, 23 
    U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
    (a) The Government of the United States and the Government of the 
Federated States of Micronesia previously have concluded agreements 
pursuant to the Compact, which shall remain in effect and shall survive 
in accordance with their terms, as follows:
        (1) Agreement Concluded Pursuant to Section 234 of the Compact;
        (2) Agreement Between the Government of the United States and 
    the Government of the Federated States of Micronesia Regarding 
    Friendship, Cooperation and Mutual Security Concluded Pursuant to 
    Sections 321 and 323 of the Compact of Free Association; and
        (3) Agreement Between the Government of the United States of 
    America and the Federated States of Micronesia Regarding Aspects of 
    the Marine Sovereignty and Jurisdiction of the Federated States of 
    Micronesia.
    (b) The Government of the United States and the Government of the 
Federated States of Micronesia shall conclude prior to the date of 
submission of this Compact, as amended, to the legislatures of the two 
countries, the following related agreements which shall come into 
effect on the effective date of this Compact, as amended, and shall 
survive in accordance with their terms, as follows:
        (1) Federal Programs and Services Agreement Between the 
    Government of the United States of America and the Government of 
    the Federated States of Micronesia Concluded Pursuant to Article 
    III of Title One, Article II of Title Two (including Section 222), 
    and Section 231 of the Compact of Free Association, as amended 
    which includes:
            (i) Postal Services and Related Programs;
            (ii) Weather Services and Related Programs;
            (iii) Civil Aviation Safety Service and Related Programs;
            (iv) Civil Aviation Economic Services and Related Programs;
            (v) United States Disaster Preparedness and Response 
        Services and Related Programs;
            (vi) Federal Deposit Insurance Corporation Services and 
        Related Programs; and
            (vii) Telecommunications Services and Related Programs.
        (2) Agreement Between the Government of the United States of 
    America and the Government of the Federated States of Micronesia on 
    Extradition, Mutual Assistance in Law Enforcement Matters and Penal 
    Sanctions Concluded Pursuant to Section 175(a) of the Compact of 
    Free Association, as amended;
        (3) Agreement Between the Government of the United States of 
    America and the Government of the Federated States of Micronesia on 
    Labor Recruitment Concluded Pursuant to Section 175(b) of the 
    Compact of Free Association, as amended;
        (4) Agreement Concerning Procedures for the Implementation of 
    United States Economic Assistance Provided in the Compact of Free 
    Association, as Amended, of Free Association Between the Government 
    of the United States of America and Government of the Federated 
    States of Micronesia;
        (5) Agreement Between the Government of the United States of 
    America and the Government of the Federated States of Micronesia 
    Implementing Section 215 and Section 216 of the Compact, as 
    Amended, Regarding a Trust Fund;
        (6) Agreement Regarding the Military Use and Operating Rights 
    of the Government of the United States in the Federated States of 
    Micronesia Concluded Pursuant to Sections 211(b), 321 and 323 of 
    the Compact of Free Association, as Amended; and the
        (7) Status of Forces Agreement Between the Government of the 
    United States of America and the Government of the Federated States 
    of Micronesia Concluded Pursuant to Section 323 of the Compact of 
    Free Association, as Amended.
Section 463
    (a) Except as set forth in subsection (b) of this section, any 
reference in this Compact, as amended, to a provision of the United 
States Code or the Statutes at Large of the United States constitutes 
the incorporation of the language of such provision into this Compact, 
as amended, as such provision was in force on the effective date of 
this Compact, as amended.
    (b) Any reference in Articles IV and Article VI of Title One and 
Sections 174, 175, 178 and 342 to a provision of the United States Code 
or the Statutes at Large of the United States or to the Privacy Act, 
the Freedom of Information Act, the Administrative Procedure Act or the 
Immigration and Nationality Act constitutes the incorporation of the 
language of such provision into this Compact, as amended, as such 
provision was in force on the effective date of this Compact, as 
amended, or as it may be amended thereafter on a non-discriminatory 
basis according to the constitutional processes of the United States.

                              Article VII

                         Concluding Provisions

Section 471
    Both the Government of the United States and the Government of the 
Federated States of Micronesia shall take all necessary steps, of a 
general or particular character, to ensure, no later than the entry 
into force date of this Compact, as amended, the conformity of its 
laws, regulations and administrative procedures with the provisions of 
this Compact, as amended, or in the case of subsection (d) of section 
141, as soon as reasonably possible thereafter.
Section 472
    This Compact, as amended, may be accepted, by signature or 
otherwise, by the Government of the United States and the Government of 
the Federated States of Micronesia.
    IN WITNESS WHEREOF, the undersigned, duly authorized, have signed 
this Compact of Free Association, as amended, which shall enter into 
force upon the exchange of diplomatic notes by which the Government of 
the United States of America and the Government of the Federated States 
of Micronesia inform each other about the fulfillment of their 
respective requirements for entry into force.
    DONE at Pohnpei, Federated States of Micronesia, in duplicate, this 
fourteenth (14) day of May, 2003, each text being equally authentic.

Signed (May 14, 2003)
Signed (May 14, 2003)
For the Government of the
For the Government of the
United States of America:
Federated States of Micronesia:

Ambassador Larry M. Dinger
His Excellency Jesse B. Marehalau
U.S. Ambassador to the
Ambassador Extraordinary and
Federated States of Micronesia
Plenipotentiary

    (b) Compact of Free Association, as Amended, Between the Government 
of the United States of America and the Government of the Republic of 
the Marshall Islands.--The Compact of Free Association, as amended, 
between the Government of the United States of America and the 
Government of the Republic of the Marshall Islands is as follows:

                                PREAMBLE

 THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF 
                  THE REPUBLIC OF THE MARSHALL ISLANDS

    Affirming that their Governments and their relationship as 
Governments are founded upon respect for human rights and fundamental 
freedoms for all, and that the people of the Republic of the Marshall 
Islands have the right to enjoy self-government; and
    Affirming the common interests of the United States of America and 
the Republic of the Marshall Islands in creating and maintaining their 
close and mutually beneficial relationship through the free and 
voluntary association of their respective Governments; and
    Affirming the interest of the Government of the United States in 
promoting the economic advancement and budgetary self-reliance of the 
Republic of the Marshall Islands; and
    Recognizing that their relationship until the entry into force on 
October 21, 1986 of the Compact was based upon the International 
Trusteeship System of the United Nations Charter, and in particular 
Article 76 of the Charter; and that pursuant to Article 76 of the 
Charter, the people of the Republic of the Marshall Islands have 
progressively developed their institutions of self-government, and that 
in the exercise of their sovereign right to self-determination they, 
through their freely-expressed wishes, have adopted a Constitution 
appropriate to their particular circumstances; and
    Recognizing that the Compact reflected their common desire to 
terminate the Trusteeship and establish a government-to-government 
relationship which was in accordance with the new political status 
based on the freely expressed wishes of the people of the Republic of 
the Marshall Islands and appropriate to their particular circumstances; 
and
    Recognizing that the people of the Republic of the Marshall Islands 
have and retain their sovereignty and their sovereign right to self-
determination and the inherent right to adopt and amend their own 
Constitution and form of government and that the approval of the entry 
of the Government of the Republic of the Marshall Islands into the 
Compact by the people of the Republic of the Marshall Islands 
constituted an exercise of their sovereign right to self-determination; 
and
    Recognizing the common desire of the people of the United States 
and the people of the Republic of the Marshall Islands to maintain 
their close government-to-government relationship, the United States 
and the Republic of the Marshall Islands:
    NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen their 
relationship of free association by amending the Compact, which 
continues to provide a full measure of self-government for the people 
of the Republic of the Marshall Islands; and
    FURTHER AGREE that the relationship of free association derives 
from and is as set forth in this Compact, as amended, by the 
Governments of the United States and the Republic of the Marshall 
Islands; and that, during such relationship of free association, the 
respective rights and responsibilities of the Government of the United 
States and the Government of the Republic of the Marshall Islands in 
regard to this relationship of free association derive from and are as 
set forth in this Compact, as amended.

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

Section 111
    The people of the Republic of the Marshall Islands, acting through 
the Government established under their Constitution, are self-
governing.

                               Article II

                            Foreign Affairs

Section 121
    (a) The Government of the Republic of the Marshall Islands has the 
capacity to conduct foreign affairs and shall do so in its own name and 
right, except as otherwise provided in this Compact, as amended.
    (b) The foreign affairs capacity of the Government of the Republic 
of the Marshall Islands includes:
        (1) the conduct of foreign affairs relating to law of the sea 
    and marine resources matters, including the harvesting, 
    conservation, exploration or exploitation of living and non-living 
    resources from the sea, seabed or subsoil to the full extent 
    recognized under international law;
        (2) the conduct of its commercial, diplomatic, consular, 
    economic, trade, banking, postal, civil aviation, communications, 
    and cultural relations, including negotiations for the receipt of 
    developmental loans and grants and the conclusion of arrangements 
    with other governments and international and intergovernmental 
    organizations, including any matters specially benefiting its 
    individual citizens.
    (c) The Government of the United States recognizes that the 
Government of the Republic of the Marshall Islands has the capacity to 
enter into, in its own name and right, treaties and other international 
agreements with governments and regional and international 
organizations.
    (d) In the conduct of its foreign affairs, the Government of the 
Republic of the Marshall Islands confirms that it shall act in 
accordance with principles of international law and shall settle its 
international disputes by peaceful means.
Section 122
    The Government of the United States shall support applications by 
the Government of the Republic of the Marshall Islands for membership 
or other participation in regional or international organizations as 
may be mutually agreed.
Section 123
    (a) In recognition of the authority and responsibility of the 
Government of the United States under Title Three, the Government of 
the Republic of the Marshall Islands shall consult, in the conduct of 
its foreign affairs, with the Government of the United States.
    (b) In recognition of the foreign affairs capacity of the 
Government of the Republic of the Marshall Islands, the Government of 
the United States, in the conduct of its foreign affairs, shall consult 
with the Government of the Republic of the Marshall Islands on matters 
that the Government of the United States regards as relating to or 
affecting the Government of the Republic of the Marshall Islands.
Section 124
    The Government of the United States may assist or act on behalf of 
the Government of the Republic of the Marshall Islands in the area of 
foreign affairs as may be requested and mutually agreed from time to 
time. The Government of the United States shall not be responsible to 
third parties for the actions of the Government of the Republic of the 
Marshall Islands undertaken with the assistance or through the agency 
of the Government of the United States pursuant to this section unless 
expressly agreed.
Section 125
    The Government of the United States shall not be responsible for 
nor obligated by any actions taken by the Government of the Republic of 
the Marshall Islands in the area of foreign affairs, except as may from 
time to time be expressly agreed.
Section 126
    At the request of the Government of the Republic of the Marshall 
Islands and subject to the consent of the receiving state, the 
Government of the United States shall extend consular assistance on the 
same basis as for citizens of the United States to citizens of the 
Republic of the Marshall Islands for travel outside the Republic of the 
Marshall Islands, the United States and its territories and 
possessions.
Section 127
    Except as otherwise provided in this Compact, as amended, or its 
related agreements, all obligations, responsibilities, rights and 
benefits of the Government of the United States as Administering 
Authority which resulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other international agreement to 
the Trust Territory of the Pacific Islands on October 20, 1986, are, as 
of that date, no longer assumed and enjoyed by the Government of the 
United States.

                              Article III

                             Communications

Section 131
    (a) The Government of the Republic of the Marshall Islands has full 
authority and responsibility to regulate its domestic and foreign 
communications, and the Government of the United States shall provide 
communications assistance as mutually agreed.
    (b) The Government of the Republic of the Marshall Islands has 
elected to undertake all functions previously performed by the 
Government of the United States with respect to domestic and foreign 
communications, except for those functions set forth in a separate 
agreement entered into pursuant to this section of the Compact, as 
amended.
Section 132
    The Government of the Republic of the Marshall Islands shall permit 
the Government of the United States to operate telecommunications 
services in the Republic of the Marshall Islands to the extent 
necessary to fulfill the obligations of the Government of the United 
States under this Compact, as amended, in accordance with the terms of 
separate agreements entered into pursuant to this section of the 
Compact, as amended.

                               Article IV

                              Immigration

Section 141
    (a) In furtherance of the special and unique relationship that 
exists between the United States and the Republic of the Marshall 
Islands, under the Compact, as amended, any person in the following 
categories may be admitted to lawfully engage in occupations, and 
establish residence as a nonimmigrant in the United States and its 
territories and possessions (the ``United States'') without regard to 
paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the Immigration 
and Nationality Act, as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II):
        (1) a person who, on October 21, 1986, was a citizen of the 
    Trust Territory of the Pacific Islands, as defined in Title 53 of 
    the Trust Territory Code in force on January 1, 1979, and has 
    become and remains a citizen of the Republic of the Marshall 
    Islands;
        (2) a person who acquires the citizenship of the Republic of 
    the Marshall Islands at birth, on or after the effective date of 
    the Constitution of the Republic of the Marshall Islands;
        (3) an immediate relative of a person referred to in paragraphs 
    (1) or (2) of this section, provided that such immediate relative 
    is a naturalized citizen of the Republic of the Marshall Islands 
    who has been an actual resident there for not less than five years 
    after attaining such naturalization and who holds a certificate of 
    actual residence, and further provided, that, in the case of a 
    spouse, such spouse has been married to the person referred to in 
    paragraph (1) or (2) of this section for at least five years, and 
    further provided, that the Government of the United States is 
    satisfied that such naturalized citizen meets the requirement of 
    subsection (b) of section 104 of Public Law 99-239 as it was in 
    effect on the day prior to the effective date of this Compact, as 
    amended;
        (4) a naturalized citizen of the Republic of the Marshall 
    Islands who was an actual resident there for not less than five 
    years after attaining such naturalization and who satisfied these 
    requirements as of April 30, 2003, who continues to be an actual 
    resident and holds a certificate of actual residence, and whose 
    name is included in a list furnished by the Government of the 
    Republic of the Marshall Islands to the Government of the United 
    States no later than the effective date of the Compact, as amended, 
    in form and content acceptable to the Government of the United 
    States, provided, that the Government of the United States is 
    satisfied that such naturalized citizen meets the requirement of 
    subsection (b) of section 104 of Public Law 99-239 as it was in 
    effect on the day prior to the effective date of this Compact, as 
    amended; or
        (5) an immediate relative of a citizen of the Republic of the 
    Marshall Islands, regardless of the immediate relative's country of 
    citizenship or period of residence in the Republic of the Marshall 
    Islands, if the citizen of the Republic of the Marshall Islands is 
    serving on active duty in any branch of the United States Armed 
    Forces, or in the active reserves.
    (b) Notwithstanding subsection (a) of this section, a person who is 
coming to the United States pursuant to an adoption outside the United 
States, or for the purpose of adoption in the United States, is 
ineligible for admission under the Compact and the Compact, as amended. 
This subsection shall apply to any person who is or was an applicant 
for admission to the United States on or after March 1, 2003, including 
any applicant for admission in removal proceedings (including appellate 
proceedings) on or after March 1, 2003, regardless of the date such 
proceedings were commenced. This subsection shall have no effect on the 
ability of the Government of the United States or any United States 
State or local government to commence or otherwise take any action 
against any person or entity who has violated any law relating to the 
adoption of any person.
    (c) Notwithstanding subsection (a) of this section, no person who 
has been or is granted citizenship in the Republic of the Marshall 
Islands, or has been or is issued a Republic of the Marshall Islands 
passport pursuant to any investment, passport sale, or similar program 
has been or shall be eligible for admission to the United States under 
the Compact or the Compact, as amended.
    (d) A person admitted to the United States under the Compact, or 
the Compact, as amended, shall be considered to have the permission of 
the Government of the United States to accept employment in the United 
States. An unexpired Republic of the Marshall Islands passport with 
unexpired documentation issued by the Government of the United States 
evidencing admission under the Compact or the Compact, as amended, 
shall be considered to be documentation establishing identity and 
employment authorization under section 274A(b)(1)(B) of the Immigration 
and Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The 
Government of the United States will take reasonable and appropriate 
steps to implement and publicize this provision, and the Government of 
the Republic of the Marshall Islands will also take reasonable and 
appropriate steps to publicize this provision.
    (e) For purposes of the Compact and the Compact, as amended:
        (1) the term ``residence'' with respect to a person means the 
    person's principal, actual dwelling place in fact, without regard 
    to intent, as provided in section 101(a)(33) of the Immigration and 
    Nationality Act, as amended, 8 U.S.C. 1101(a)(33), and variations 
    of the term ``residence,'' including ``resident'' and ``reside,'' 
    shall be similarly construed;
        (2) the term ``actual residence'' means physical presence in 
    the Republic of the Marshall Islands during eighty-five percent of 
    the five-year period of residency required by section 141(a)(3) and 
    (4);
        (3) the term ``certificate of actual residence'' means a 
    certificate issued to a naturalized citizen by the Government of 
    the Republic of the Marshall Islands stating that the citizen has 
    complied with the actual residence requirement of section 141(a)(3) 
    or (4);
        (4) the term ``nonimmigrant'' means an alien who is not an 
    ``immigrant'' as defined in section 101(a)(15) of such Act, 8 
    U.S.C. 1101(a)(15); and
        (5) the term ``immediate relative'' means a spouse, or 
    unmarried son or unmarried daughter less than 21 years of age.
    (f) The Immigration and Nationality Act, as amended, shall apply to 
any person admitted or seeking admission to the United States (other 
than a United States possession or territory where such Act does not 
apply) under the Compact or the Compact, as amended, and nothing in the 
Compact or the Compact, as amended, shall be construed to limit, 
preclude, or modify the applicability of, with respect to such person:
        (1) any ground of inadmissibility or deportability under such 
    Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of such Act, 
    as provided in subsection (a) of this section), and any defense 
    thereto, provided that, section 237(a)(5) of such Act shall be 
    construed and applied as if it reads as follows: ``any alien who 
    has been admitted under the Compact, or the Compact, as amended, 
    who cannot show that he or she has sufficient means of support in 
    the United States, is deportable;''
        (2) the authority of the Government of the United States under 
    section 214(a)(1) of such Act to provide that admission as a 
    nonimmigrant shall be for such time and under such conditions as 
    the Government of the United States may by regulations prescribe;
        (3) except for the treatment of certain documentation for 
    purposes of section 274A(b)(1)(B) of such Act as provided by 
    subsection (d) of this section of the Compact, as amended, any 
    requirement under section 274A, including but not limited to 
    section 274A(b)(1)(E);
        (4) section 643 of the Illegal Immigration Reform and Immigrant 
    Responsibility Act of 1996, Public Law 104-208, and actions taken 
    pursuant to section 643; and
        (5) the authority of the Government of the United States 
    otherwise to administer and enforce the Immigration and Nationality 
    Act, as amended, or other United States law.
    (g) Any authority possessed by the Government of the United States 
under this section of the Compact or the Compact, as amended, may also 
be exercised by the Government of a territory or possession of the 
United States where the Immigration and Nationality Act, as amended, 
does not apply, to the extent such exercise of authority is lawful 
under a statute or regulation of such territory or possession that is 
authorized by the laws of the United States.
    (h) Subsection (a) of this section does not confer on a citizen of 
the Republic of the Marshall Islands the right to establish the 
residence necessary for naturalization under the Immigration and 
Nationality Act, as amended, or to petition for benefits for alien 
relatives under that Act. Subsection (a) of this section, however, 
shall not prevent a citizen of the Republic of the Marshall Islands 
from otherwise acquiring such rights or lawful permanent resident alien 
status in the United States.
Section 142
    (a) Any citizen or national of the United States may be admitted to 
lawfully engage in occupations, and reside in the Republic of the 
Marshall Islands, subject to the rights of the Government of the 
Republic of the Marshall Islands to deny entry to or deport any such 
citizen or national as an undesirable alien. Any determination of 
inadmissibility or deportability shall be based on reasonable statutory 
grounds and shall be subject to appropriate administrative and judicial 
review within the Republic of the Marshall Islands. If a citizen or 
national of the United States is a spouse of a citizen of the Republic 
of the Marshall Islands, the Government of the Republic of the Marshall 
Islands shall allow the United States citizen spouse to establish 
residence. Should the Republic of the Marshall Islands citizen spouse 
predecease the United States citizen spouse during the marriage, the 
Government of the Republic of the Marshall Islands shall allow the 
United States citizen spouse to continue to reside in the Republic of 
the Marshall Islands.
    (b) In enacting any laws or imposing any requirements with respect 
to citizens and nationals of the United States entering the Republic of 
the Marshall Islands under subsection (a) of this section, including 
any grounds of inadmissibility or deportability, the Government of the 
Republic of the Marshall Islands shall accord to such citizens and 
nationals of the United States treatment no less favorable than that 
accorded to citizens of other countries.
    (c) Consistent with subsection (a) of this section, with respect to 
citizens and nationals of the United States seeking to engage in 
employment or invest in the Republic of the Marshall Islands, the 
Government of the Republic of the Marshall Islands shall adopt 
immigration-related procedures no less favorable than those adopted by 
the Government of the United States with respect to citizens of the 
Republic of the Marshall Islands seeking employment in the United 
States.
Section 143
    Any person who relinquishes, or otherwise loses, his United States 
nationality or citizenship, or his Republic of the Marshall Islands 
citizenship, shall be ineligible to receive the privileges set forth in 
sections 141 and 142. Any such person may apply for admission to the 
United States or the Republic of the Marshall Islands, as the case may 
be, in accordance with any other applicable laws of the United States 
or the Republic of the Marshall Islands relating to immigration of 
aliens from other countries. The laws of the Republic of the Marshall 
Islands or the United States, as the case may be, shall dictate the 
terms and conditions of any such person's stay.

                               Article V

                             Representation

Section 151
    Relations between the Government of the United States and the 
Government of the Republic of the Marshall Islands shall be conducted 
in accordance with the Vienna Convention on Diplomatic Relations. In 
addition to diplomatic missions and representation, the Governments may 
establish and maintain other offices and designate other 
representatives on terms and in locations as may be mutually agreed.
Section 152
    (a) Any citizen or national of the United States who, without 
authority of the United States, acts as the agent of the Government of 
the Republic of the Marshall Islands with regard to matters specified 
in the provisions of the Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 611 et seq.), that apply with respect to an agent of 
a foreign principal shall be subject to the requirements of such Act. 
Failure to comply with such requirements shall subject such citizen or 
national to the same penalties and provisions of law as apply in the 
case of the failure of such an agent of a foreign principal to comply 
with such requirements. For purposes of the Foreign Agents Registration 
Act of 1938, the Republic of the Marshall Islands shall be considered 
to be a foreign country.
    (b) Subsection (a) of this section shall not apply to a citizen or 
national of the United States employed by the Government of the 
Republic of the Marshall Islands with respect to whom the Government of 
the Republic of the Marshall Islands from time to time certifies to the 
Government of the United States that such citizen or national is an 
employee of the Republic of the Marshall Islands whose principal duties 
are other than those matters specified in the Foreign Agents 
Registration Act of 1938, as amended, that apply with respect to an 
agent of a foreign principal. The agency or officer of the United 
States receiving such certifications shall cause them to be filed with 
the Attorney General, who shall maintain a publicly available list of 
the persons so certified.

                               Article VI

                        Environmental Protection

Section 161
    The Governments of the United States and the Republic of the 
Marshall Islands declare that it is their policy to promote efforts to 
prevent or eliminate damage to the environment and biosphere and to 
enrich understanding of the natural resources of the Republic of the 
Marshall Islands. In order to carry out this policy, the Government of 
the United States and the Government of the Republic of the Marshall 
Islands agree to the following mutual and reciprocal undertakings:
        (a) The Government of the United States:
            (1) shall, for its activities controlled by the U.S. Army 
        at Kwajalein Atoll and in the Mid-Atoll Corridor and for U.S. 
        Army Kwajalein Atoll activities in the Republic of the Marshall 
        Islands, continue to apply the Environmental Standards and 
        Procedures for United States Army Kwajalein Atoll Activities in 
        the Republic of the Marshall Islands, unless and until those 
        Standards or Procedures are modified by mutual agreement of the 
        Governments of the United States and the Republic of the 
        Marshall Islands;
            (2) shall apply the National Environmental Policy Act of 
        1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities 
        under the Compact, as amended, and its related agreements as if 
        the Republic of the Marshall Islands were the United States;
            (3) in the conduct of any activity not described in section 
        161(a)(1) requiring the preparation of an Environmental Impact 
        Statement under section 161(a)(2), shall comply with standards 
        substantively similar to those required by the following laws 
        of the United States, taking into account the particular 
        environment of the Republic of the Marshall Islands; the 
        Endangered Species Act of 1973, as amended, 16 U.S.C. 1531 et 
        seq.; the Clean Air Act, as amended, 42 U.S.C. 7401 et seq.; 
        the Clean Water Act (Federal Water Pollution Control Act), as 
        amended, 33 U.S.C. 1251 et seq.; Title I of the Marine 
        Protection, Research and Sanctuaries Act of 1972 (the Ocean 
        Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic Substances 
        Control Act, as amended, 15 U.S.C. 2601 et seq.; the Solid 
        Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and 
        such other environmental protection laws of the United States 
        and the Republic of the Marshall Islands as may be agreed from 
        time to time with the Government of the Republic of the 
        Marshall Islands;
            (4) shall, prior to conducting any activity not described 
        in section 161(a)(1) requiring the preparation of an 
        Environmental Impact Statement under section 161(a)(2), 
        develop, as agreed with the Government of the Republic of the 
        Marshall Islands, written environmental standards and 
        procedures to implement the substantive provisions of the laws 
        made applicable to U.S. Government activities in the Republic 
        of the Marshall Islands, pursuant to section 161(a)(3).
        (b) The Government of the Republic of the Marshall Islands 
    shall continue to develop and implement standards and procedures to 
    protect its environment. As a reciprocal obligation to the 
    undertakings of the Government of the United States under this 
    Article, the Republic of the Marshall Islands, taking into account 
    its particular environment, shall continue to develop and implement 
    standards for environmental protection substantively similar to 
    those required of the Government of the United States by section 
    161(a)(3) prior to its conducting activities in the Republic of the 
    Marshall Islands, substantively equivalent to activities conducted 
    there by the Government of the United States and, as a further 
    reciprocal obligation, shall enforce those standards.
        (c) Section 161(a), including any standard or procedure 
    applicable thereunder, and section 161(b) may be modified or 
    superseded in whole or in part by agreement of the Government of 
    the United States and the Government of the Republic of the 
    Marshall Islands.
        (d) In the event that an Environmental Impact Statement is no 
    longer required under the laws of the United States for major 
    Federal actions significantly affecting the quality of the human 
    environment, the regulatory regime established under sections 
    161(a)(3) and 161(a)(4) shall continue to apply to such activities 
    of the Government of the United States until amended by mutual 
    agreement.
        (e) The President of the United States may exempt any of the 
    activities of the Government of the United States under this 
    Compact, as amended, and its related agreements from any 
    environmental standard or procedure which may be applicable under 
    sections 161(a)(3) and 161(a)(4) if the President determines it to 
    be in the paramount interest of the Government of the United States 
    to do so, consistent with Title Three of this Compact, as amended, 
    and the obligations of the Government of the United States under 
    international law. Prior to any decision pursuant to this 
    subsection, the views of the Government of the Republic of the 
    Marshall Islands shall be sought and considered to the extent 
    practicable. If the President grants such an exemption, to the 
    extent practicable, a report with his reasons for granting such 
    exemption shall be given promptly to the Government of the Republic 
    of the Marshall Islands.
        (f) The laws of the United States referred to in section 
    161(a)(3) shall apply to the activities of the Government of the 
    United States under this Compact, as amended, and its related 
    agreements only to the extent provided for in this section.
Section 162
    The Government of the Republic of the Marshall Islands may bring an 
action for judicial review of any administrative agency action or any 
activity of the Government of the United States pursuant to section 
161(a) for enforcement of the obligations of the Government of the 
United States arising thereunder. The United States District Court for 
the District of Hawaii and the United States District Court for the 
District of Columbia shall have jurisdiction over such action or 
activity, and over actions brought under section 172(b) which relate to 
the activities of the Government of the United States and its officers 
and employees, governed by section 161, provided that:
        (a) Such actions may only be civil actions for any appropriate 
    civil relief other than punitive damages against the Government of 
    the United States or, where required by law, its officers in their 
    official capacity; no criminal actions may arise under this 
    section.
        (b) Actions brought pursuant to this section may be initiated 
    only by the Government of the Republic of the Marshall Islands.
        (c) Administrative agency actions arising under section 161 
    shall be reviewed pursuant to the standard of judicial review set 
    forth in 5 U.S.C. 706.
        (d) The United States District Court for the District of Hawaii 
    and the United States District Court for the District of Columbia 
    shall have jurisdiction to issue all necessary processes, and the 
    Government of the United States agrees to submit itself to the 
    jurisdiction of the court; decisions of the United States District 
    Court shall be reviewable in the United States Court of Appeals for 
    the Ninth Circuit or the United States Court of Appeals for the 
    District of Columbia, respectively, or in the United States Supreme 
    Court as provided by the laws of the United States.
        (e) The judicial remedy provided for in this section shall be 
    the exclusive remedy for the judicial review or enforcement of the 
    obligations of the Government of the United States under this 
    Article and actions brought under section 172(b), which relate to 
    the activities of the Government of the United States and its 
    officers and employees governed by section 161.
        (f) In actions pursuant to this section, the Government of the 
    Republic of the Marshall Islands shall be treated as if it were a 
    United States citizen.
Section 163
    (a) For the purpose of gathering data necessary to study the 
environmental effects of activities of the Government of the United 
States subject to the requirements of this Article, the Government of 
the Republic of the Marshall Islands shall be granted access to 
facilities operated by the Government of the United States in the 
Republic of the Marshall Islands, to the extent necessary for this 
purpose, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the United States under Title Three.
    (b) The Government of the United States, in turn, shall be granted 
access to the Republic of the Marshall Islands for the purpose of 
gathering data necessary to discharge its obligations under this 
Article, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the Republic of the Marshall Islands under Title One, and to the 
extent necessary for this purpose shall be granted access to documents 
and other information to the same extent similar access is provided the 
Government of the Republic of the Marshall Islands under the Freedom of 
Information Act, 5 U.S.C. 552.
    (c) The Government of the Republic of the Marshall Islands shall 
not impede efforts by the Government of the United States to comply 
with applicable standards and procedures.

                              Article VII

                        General Legal Provisions

Section 171
    Except as provided in this Compact, as amended, or its related 
agreements, the application of the laws of the United States to the 
Trust Territory of the Pacific Islands by virtue of the Trusteeship 
Agreement ceased with respect to the Marshall Islands on October 21, 
1986, the date the Compact went into effect.
Section 172
    (a) Every citizen of the Republic of the Marshall Islands who is 
not a resident of the United States shall enjoy the rights and remedies 
under the laws of the United States enjoyed by any non-resident alien.
    (b) The Government of the Republic of the Marshall Islands and 
every citizen of the Republic of the Marshall Islands shall be 
considered to be a ``person'' within the meaning of the Freedom of 
Information Act, 5 U.S.C. 552, and of the judicial review provisions of 
the Administrative Procedure Act, 5 U.S.C. 701-706, except that only 
the Government of the Republic of the Marshall Islands may seek 
judicial review under the Administrative Procedure Act or judicial 
enforcement under the Freedom of Information Act when such judicial 
review or enforcement relates to the activities of the Government of 
the United States governed by sections 161 and 162.
Section 173
    The Governments of the United States and the Republic of the 
Marshall Islands agree to adopt and enforce such measures, consistent 
with this Compact, as amended, and its related agreements, as may be 
necessary to protect the personnel, property, installations, services, 
programs and official archives and documents maintained by the 
Government of the United States in the Republic of the Marshall Islands 
pursuant to this Compact, as amended, and its related agreements and by 
the Government of the Republic of the Marshall Islands in the United 
States pursuant to this Compact, Compact, as amended, and its related 
agreements.
Section 174
    Except as otherwise provided in this Compact, as amended, and its 
related agreements:
        (a) The Government of the Republic of the Marshall Islands, and 
    its agencies and officials, shall be immune from the jurisdiction 
    of the court of the United States, and the Government of the United 
    States, and its agencies and officials, shall be immune from the 
    jurisdiction of the courts of the Republic of the Marshall Islands.
        (b) The Government of the United States accepts responsibility 
    for and shall pay:
            (1) any unpaid money judgment rendered by the High Court of 
        the Trust Territory of the Pacific Islands against the 
        Government of the United States with regard to any cause of 
        action arising as a result of acts or omissions of the 
        Government of the Trust Territory of the Pacific Islands or the 
        Government of the United States prior to October 21, 1986;
            (2) any claim settled by the claimant and the Government of 
        the Trust Territory of the Pacific Islands but not paid as of 
        October 21, 1986; and
            (3) settlement of any administrative claim or of any action 
        before a court of the Trust Territory of the Pacific Islands or 
        the Government of the United States, arising as a result of 
        acts or omissions of the Government of the Trust Territory of 
        the Pacific Islands or the Government of the United States.
        (c) Any claim not referred to in section 174(b) and arising 
    from an act or omission of the Government of the Trust Territory of 
    the Pacific Islands or the Government of the United States prior to 
    the effective date of the Compact shall be adjudicated in the same 
    manner as a claim adjudicated according to section 174(d). In any 
    claim against the Government of the Trust Territory of the Pacific 
    Islands, the Government of the United States shall stand in the 
    place of the Government of the Trust Territory of the Pacific 
    Islands. A judgment on any claim referred to in section 174(b) or 
    this subsection, not otherwise satisfied by the Government of the 
    United States, may be presented for certification to the United 
    States Court of Appeals for the Federal Circuit, or its successor 
    courts, which shall have jurisdiction therefore, notwithstanding 
    the provisions of 28 U.S.C. 1502, and which court's decisions shall 
    be reviewable as provided by the laws of the United States. The 
    United States Court of Appeals for the Federal Circuit shall 
    certify such judgment, and order payment thereof, unless it finds, 
    after a hearing, that such judgment is manifestly erroneous as to 
    law or fact, or manifestly excessive. In either of such cases the 
    United States Court of Appeals for the Federal Circuit shall have 
    jurisdiction to modify such judgment.
        (d) The Government of the Republic of the Marshall Islands 
    shall not be immune from the jurisdiction of the courts of the 
    United States, and the Government of the United States shall not be 
    immune from the jurisdiction of the courts of the Republic of the 
    Marshall Islands in any civil case in which an exception to foreign 
    state immunity is set forth in the Foreign Sovereign Immunities Act 
    (28 U.S.C. 1602 et seq.) or its successor statutes.
Section 175
    (a) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern mutual assistance and cooperation in law 
enforcement matters, including the pursuit, capture, imprisonment and 
extradition of fugitives from justice and the transfer of prisoners, as 
well as other law enforcement matters. In the United States, the laws 
of the United States governing international extradition, including 18 
U.S.C. 3184, 3186, and 3188-95, shall be applicable to the extradition 
of fugitives under the separate agreement, and the laws of the United 
States governing the transfer of prisoners, including 18 U.S.C. 4100-
15, shall be applicable to the transfer of prisoners under the separate 
agreement; and
    (b) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern requirements relating to labor recruitment 
practices, including registration, reporting, suspension or revocation 
of authorization to recruit persons for employment in the United 
States, and enforcement for violations of such requirements.
Section 176
    The Government of the Republic of the Marshall Islands confirms 
that final judgments in civil cases rendered by any court of the Trust 
Territory of the Pacific Islands shall continue in full force and 
effect, subject to the constitutional power of the courts of the 
Republic of the Marshall Islands to grant relief from judgments in 
appropriate cases.
Section 177
    Section 177 of the Compact entered into force with respect to the 
Marshall Islands on October 21, 1986 as follows:
        ``(a) The Government of the United States accepts the 
    responsibility for compensation owing to citizens of the Marshall 
    Islands, or the Federated States of Micronesia, (or Palau) for loss 
    or damage to property and person of the citizens of the Marshall 
    Islands, or the Federated States of Micronesia, resulting from the 
    nuclear testing program which the Government of the United States 
    conducted in the Northern Marshall Islands between June 30, 1946, 
    and August 18, 1958.
        ``(b) The Government of the United States and the Government of 
    the Marshall Islands shall set forth in a separate agreement 
    provisions for the just and adequate settlement of all such claims 
    which have arisen in regard to the Marshall Islands and its 
    citizens and which have not as yet been compensated or which in the 
    future may arise, for the continued administration by the 
    Government of the United States of direct radiation related medical 
    surveillance and treatment programs and radiological monitoring 
    activities and for such additional programs and activities as may 
    be mutually agreed, and for the assumption by the Government of the 
    Marshall Islands of responsibility for enforcement of limitations 
    on the utilization of affected areas developed in cooperation with 
    the Government of the United States and for the assistance by the 
    Government of the United States in the exercise of such 
    responsibility as may be mutually agreed. This separate agreement 
    shall come into effect simultaneously with this Compact and shall 
    remain in effect in accordance with its own terms.
        ``(c) The Government of the United States shall provide to the 
    Government of the Marshall Islands, on a grant basis, the amount of 
    $150 million to be paid and distributed in accordance with the 
    separate agreement referred to in this Section, and shall provide 
    the services and programs set forth in this separate agreement, the 
    language of which is incorporated into this Compact.''.
The Compact, as amended, makes no changes to, and has no effect upon, 
Section 177 of the Compact, nor does the Compact, as amended, change or 
affect the separate agreement referred to in Section 177 of the Compact 
including Articles IX and X of that separate agreement, and measures 
taken by the parties thereunder.
Section 178
    (a) The Federal agencies of the Government of the United States 
that provide services and related programs in the Republic of the 
Marshall Islands pursuant to Title Two are authorized to settle and pay 
tort claims arising in the Republic of the Marshall Islands from the 
activities of such agencies or from the acts or omissions of the 
employees of such agencies. Except as provided in section 178(b), the 
provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply exclusively 
to such administrative settlements and payments.
    (b) Claims under section 178(a) that cannot be settled under 
section 178(a) shall be disposed of exclusively in accordance with 
Article II of Title Four. Arbitration awards rendered pursuant to this 
subsection shall be paid out of funds under 31 U.S.C. 1304.
    (c) The Government of the United States and the Government of the 
Republic of the Marshall Islands shall, in the separate agreement 
referred to in section 231, provide for:
        (1) the administrative settlement of claims referred to in 
    section 178(a), including designation of local agents in each State 
    of the Republic of the Marshall Islands; such agents to be 
    empowered to accept, investigate and settle such claims, in a 
    timely manner, as provided in such separate agreements; and
        (2) arbitration, referred to in section 178(b), in a timely 
    manner, at a site convenient to the claimant, in the event a claim 
    is not otherwise settled pursuant to section 178(a).
    (d) The provisions of section 174(d) shall not apply to claims 
covered by this section.
    (e) Except as otherwise explicitly provided by law of the United 
States, this Compact, as amended, or its related agreements, neither 
the Government of the United States, its instrumentalities, nor any 
person acting on behalf of the Government of the United States, shall 
be named a party in any action based on, or arising out of, the 
activity or activities of a recipient of any grant or other assistance 
provided by the Government of the United States (or the activity or 
activities of the recipient's agency or any other person or entity 
acting on behalf of the recipient).
Section 179
    (a) The courts of the Republic of the Marshall Islands shall not 
exercise criminal jurisdiction over the Government of the United 
States, or its instrumentalities.
    (b) The courts of the Republic of the Marshall Islands shall not 
exercise criminal jurisdiction over any person if the Government of the 
United States provides notification to the Government of the Republic 
of the Marshall Islands that such person was acting on behalf of the 
Government of the United States, for actions taken in furtherance of 
section 221 or 224 of this amended Compact, or any other provision of 
law authorizing financial, program, or service assistance to the 
Republic of the Marshall Islands.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

Section 211 - Annual Grant Assistance
    (a) In order to assist the Government of the Republic of the 
Marshall Islands in its efforts to promote the economic advancement and 
budgetary self-reliance of its people, and in recognition of the 
special relationship that exists between the Republic of the Marshall 
Islands and the United States, the Government of the United States 
shall provide assistance on a grant basis for a period of twenty years 
in the amounts set forth in section 217, commencing on the effective 
date of this Compact, as amended. Such grants shall be used for 
assistance in education, health care, the environment, public sector 
capacity building, and private sector development, or for other areas 
as mutually agreed, with priorities in the education and health care 
sectors. Consistent with the medium-term budget and investment 
framework described in subsection (f) of this section, the proposed 
division of this amount among the identified areas shall require the 
concurrence of both the Government of the United States and the 
Government of the Republic of the Marshall Islands, through the Joint 
Economic Management and Financial Accountability Committee described in 
section 214. The Government of the United States shall disburse the 
grant assistance and monitor the use of such grant assistance in 
accordance with the provisions of this Article and an Agreement 
Concerning Procedures for the Implementation of United States Economic 
Assistance Provided in the Compact, as Amended, of Free Association 
Between the Government of the United States of America and the 
Government of the Republic of the Marshall Islands (``Fiscal Procedures 
Agreement'') which shall come into effect simultaneously with this 
Compact, as amended.
        (1) Education.--United States grant assistance shall be made 
    available in accordance with the strategic framework described in 
    subsection (f) of this section to support and improve the 
    educational system of the Republic of the Marshall Islands and 
    develop the human, financial, and material resources necessary for 
    the Republic of the Marshall Islands to perform these services. 
    Emphasis should be placed on advancing a quality basic education 
    system.
        (2) Health.--United States grant assistance shall be made 
    available in accordance with the strategic framework described in 
    subsection (f) of this section to support and improve the delivery 
    of preventive, curative and environmental care and develop the 
    human, financial, and material resources necessary for the Republic 
    of the Marshall Islands to perform these services.
        (3) Private sector development.--United States grant assistance 
    shall be made available in accordance with the strategic framework 
    described in subsection (f) of this section to support the efforts 
    of the Republic of the Marshall Islands to attract foreign 
    investment and increase indigenous business activity by vitalizing 
    the commercial environment, ensuring fair and equitable application 
    of the law, promoting adherence to core labor standards, 
    maintaining progress toward privatization of state-owned and 
    partially state-owned enterprises, and engaging in other reforms.
        (4) Capacity building in the public sector.--United States 
    grant assistance shall be made available in accordance with the 
    strategic framework described in subsection (f) of this section to 
    support the efforts of the Republic of the Marshall Islands to 
    build effective, accountable and transparent national and local 
    government and other public sector institutions and systems.
        (5) Environment.--United States grant assistance shall be made 
    available in accordance with the strategic framework described in 
    subsection (f) of this section to increase environmental 
    protection; establish and manage conservation areas; engage in 
    environmental infrastructure planning, design construction and 
    operation; and to involve the citizens of the Republic of the 
    Marshall Islands in the process of conserving their country's 
    natural resources.
    (b) Kwajalein Atoll.--
        (1) Of the total grant assistance made available under 
    subsection (a) of this section, the amount specified herein shall 
    be allocated annually from fiscal year 2004 through fiscal year 
    2023 (and thereafter in accordance with the Agreement between the 
    Government of the United States and the Government of the Republic 
    of the Marshall Islands Regarding Military Use and Operating 
    Rights) to advance the objectives and specific priorities set forth 
    in subsections (a) and (d) of this section and the Fiscal 
    Procedures Agreement, to address the special needs of the community 
    at Ebeye, Kwajalein Atoll and other Marshallese communities within 
    Kwajalein Atoll. This United States grant assistance shall be made 
    available, in accordance with the medium-term budget and investment 
    framework described in subsection (f) of this section, to support 
    and improve the infrastructure and delivery of services and develop 
    the human and material resources necessary for the Republic of the 
    Marshall Islands to carry out its responsibility to maintain such 
    infrastructure and deliver such services. The amount of this 
    assistance shall be $3,100,000, with an inflation adjustment as 
    provided in section 218, from fiscal year 2004 through fiscal year 
    2013 and the fiscal year 2013 level of funding, with an inflation 
    adjustment as provided in section 218, will be increased by $2 
    million for fiscal year 2014. The fiscal year 2014 level of 
    funding, with an inflation adjustment as provided in section 218, 
    will be made available from fiscal year 2015 through fiscal year 
    2023 (and thereafter as noted above).
        (2) The Government of the United States shall also provide to 
    the Government of the Republic of the Marshall Islands, in 
    conjunction with section 321(a) of this Compact, as amended, an 
    annual payment from fiscal year 2004 through fiscal year 2023 (and 
    thereafter in accordance with the Agreement between the Government 
    of the United States and the Government of the Republic of the 
    Marshall Islands Regarding Military Use and Operating Rights) of 
    $1.9 million. This grant assistance will be subject to the Fiscal 
    Procedures Agreement and will be adjusted for inflation under 
    section 218 and used to address the special needs of the community 
    at Ebeye, Kwajalein Atoll and other Marshallese communities within 
    Kwajalein Atoll with emphasis on the Kwajalein landowners, as 
    described in the Fiscal Procedures Agreement.
        (3) Of the total grant assistance made available under 
    subsection (a) of this section, and in conjunction with section 
    321(a) of the Compact, as amended, $200,000, with an inflation 
    adjustment as provided in section 218, shall be allocated annually 
    from fiscal year 2004 through fiscal year 2023 (and thereafter as 
    provided in the Agreement between the Government of the United 
    States and the Government of the Republic of the Marshall Islands 
    Regarding Military Use and Operating Rights) for a grant to support 
    increased participation of the Government of the Republic of the 
    Marshall Islands Environmental Protection Authority in the annual 
    U.S. Army Kwajalein Atoll Environmental Standards Survey and to 
    promote a greater Government of the Republic of the Marshall 
    Islands capacity for independent analysis of the Survey's findings 
    and conclusions.
    (c) Humanitarian Assistance--Republic of the Marshall Islands 
Program.--In recognition of the special development needs of the 
Republic of the Marshall Islands, the Government of the United States 
shall make available to the Government of the Republic of the Marshall 
Islands, on its request and to be deducted from the grant amount made 
available under subsection (a) of this section, a Humanitarian 
Assistance--Republic of the Marshall Islands (``HARMI'') Program with 
emphasis on health, education, and infrastructure (including 
transportation), projects and such other projects as mutually agreed. 
The terms and conditions of the HARMI shall be set forth in the 
Agreement Regarding the Military Use and Operating Rights of the 
Government of the United States in the Republic of the Marshall Islands 
Concluded Pursuant to Sections 321 and 323 of the Compact of Free 
Association, as Amended, which shall come into effect simultaneously 
with the amendments to this Compact.
    (d) Public Infrastructure.--
        (1) Unless otherwise agreed, not less than 30 percent and not 
    more than 50 percent of U.S. annual grant assistance provided under 
    this section shall be made available in accordance with a list of 
    specific projects included in the infrastructure improvement and 
    maintenance plan prepared by the Government of the Republic of the 
    Marshall Islands as part of the strategic framework described in 
    subsection (f) of this section.
        (2) Infrastructure maintenance fund.--Five percent of the 
    annual public infrastructure grant made available under paragraph 
    (1) of this subsection shall be set aside, with an equal 
    contribution from the Government of the Republic of the Marshall 
    Islands, as a contribution to an Infrastructure Maintenance Fund. 
    Administration of the Infrastructure Maintenance Fund shall be 
    governed by the Fiscal Procedures Agreement.
    (e) Disaster Assistance Emergency Fund.--Of the total grant 
assistance made available under subsection (a) of this section, an 
amount of two hundred thousand dollars ($200,000) shall be provided 
annually, with an equal contribution from the Government of the 
Republic of the Marshall Islands, as a contribution to a Disaster 
Assistance Emergency Fund (``DAEF''). Any funds from the DAEF may be 
used only for assistance and rehabilitation resulting from disasters 
and emergencies. The funds will be accessed upon declaration of a State 
of Emergency by the Government of the Republic of the Marshall Islands, 
with the concurrence of the United States Chief of Mission to the 
Republic of the Marshall Islands. Administration of the DAEF shall be 
governed by the Fiscal Procedures Agreement.
    (f) Budget and Investment Framework.--The Government of the 
Republic of the Marshall Islands shall prepare and maintain an official 
medium-term budget and investment framework. The framework shall be 
strategic in nature, shall be continuously reviewed and updated through 
the annual budget process, and shall make projections on a multi-year 
rolling basis. Each of the sectors and areas named in subsections (a), 
(b), and (d) of this section, or other sectors and areas as mutually 
agreed, shall be accorded specific treatment in the framework. Those 
portions of the framework that contemplate the use of United States 
grant funds shall require the concurrence of both the Government of the 
United States and the Government of the Republic of the Marshall 
Islands.
Section 212 - Kwajalein Impact and Use
    The Government of the United States shall provide to the Government 
of the Republic of the Marshall Islands in conjunction with section 
321(a) of the Compact, as amended, and the agreement between the 
Government of the United States and the Government of the Republic of 
the Marshall Islands regarding military use and operating rights, a 
payment in fiscal year 2004 of $15,000,000, with no adjustment for 
inflation. In fiscal year 2005 and through fiscal year 2013, the annual 
payment will be the fiscal year 2004 amount ($15,000,000) with an 
inflation adjustment as provided under section 218. In fiscal year 
2014, the annual payment will be $18,000,000 (with no adjustment for 
inflation) or the fiscal year 2013 amount with an inflation adjustment 
under section 218, whichever is greater. For fiscal year 2015 through 
fiscal year 2023 (and thereafter in accordance with the Agreement 
between the Government of the United States and the Government of the 
Republic of the Marshall Islands Regarding Military Use and Operating 
Rights) the annual payment will be the fiscal year 2014 amount, with an 
inflation adjustment as provided under section 218.
Section 213 - Accountability
    (a) Regulations and policies normally applicable to United States 
financial assistance to its state and local governments, as set forth 
in the Fiscal Procedures Agreement, shall apply to each grant described 
in section 211, and to grants administered under section 221 below, 
except as modified in the separate agreements referred to in section 
231 of this Compact, as amended, or by U.S. law. As set forth in the 
Fiscal Procedures Agreement, reasonable terms and conditions, including 
annual performance indicators that are necessary to ensure effective 
use of United States assistance and reasonable progress toward 
achieving program objectives may be attached. In addition, the United 
States may seek appropriate remedies for noncompliance with the terms 
and conditions attached to the assistance, or for failure to comply 
with section 234, including withholding assistance.
    (b) The Government of the United States shall, for each fiscal year 
of the twenty years during which assistance is to be provided on a 
sector grant basis under section 211 (a), grant the Government of the 
Republic of the Marshall Islands an amount equal to the lesser of (i) 
one half of the reasonable, properly documented cost incurred during 
such fiscal year to conduct the annual audit required under Article 
VIII (2) of the Fiscal Procedures Agreement or (ii) $500,000. Such 
amount will not be adjusted for inflation under section 218 or 
otherwise.
Section 214 - Joint Economic Management and Financial Accountability 
Committee
    The Governments of the United States and the Republic of the 
Marshall Islands shall establish a Joint Economic Management and 
Financial Accountability Committee, composed of a U.S. chair, two other 
members from the Government of the United States and two members from 
the Government of the Republic of the Marshall Islands. The Joint 
Economic Management and Financial Accountability Committee shall meet 
at least once each year to review the audits and reports required under 
this Title and the Fiscal Procedures Agreement, evaluate the progress 
made by the Republic of the Marshall Islands in meeting the objectives 
identified in its framework described in subsection (f) of section 211, 
with particular focus on those parts of the framework dealing with the 
sectors and areas identified in subsection (a) of section 211, identify 
problems encountered, and recommend ways to increase the effectiveness 
of U.S. assistance made available under this Title. The establishment 
and operations of the Joint Economic Management and Financial 
Accountability Committee shall be governed by the Fiscal Procedures 
Agreement.
Section 215 - Annual Report
    The Government of the Republic of the Marshall Islands shall report 
annually to the President of the United States on the use of United 
States sector grant assistance and other assistance and progress in 
meeting mutually agreed program and economic goals. The Joint Economic 
Management and Financial Accountability Committee shall review and 
comment on the report and make appropriate recommendations based 
thereon.
Section 216 - Trust Fund
    (a) The United States shall contribute annually for twenty years 
from the effective date of the Compact, as amended, in the amounts set 
forth in section 217 into a trust fund established in accordance with 
the Agreement Between the Government of the United States of America 
and the Government of the Republic of the Marshall Islands Implementing 
Section 216 and Section 217 of the Compact, as Amended, Regarding a 
Trust Fund (``Trust Fund Agreement''), which shall come into effect 
simultaneously with this Compact, as amended. Upon termination of the 
annual grant assistance under section 211 (a), (d) and (e), the 
earnings of the fund shall thereafter be used for the purposes 
described in section 211 or as otherwise mutually agreed.
    (b) The United States contribution into the Trust Fund described in 
subsection (a) of this section is conditioned on the Government of the 
Republic of the Marshall Islands contributing to the Trust Fund at 
least $25,000,000, on the effective date of the Trust Fund Agreement or 
on October 1, 2003, whichever is later, $2,500,000 prior to October 1, 
2004, and $2,500,000 prior to October 1, 2005. Any funds received by 
the Republic of the Marshall Islands under section 111(d) of Public Law 
99-239 (January 14, 1986), or successor provisions, would be 
contributed to the Trust Fund as a Republic of the Marshall Islands' 
contribution.
    (c) The terms regarding the investment and management of funds and 
use of the income of the Trust Fund shall be governed by the Trust Fund 
Agreement. Funds derived from United States investment shall not be 
subject to Federal or state taxes in the United States or any taxes in 
the Republic of the Marshall Islands. The Trust Fund Agreement shall 
also provide for annual reports to the Government of the United States 
and to the Government of the Republic of the Marshall Islands. The 
Trust Fund Agreement shall provide for appropriate distributions of 
trust fund proceeds to the Republic of the Marshall Islands and for 
appropriate remedies for the failure of the Republic of the Marshall 
Islands to use income of the Trust Fund for the annual grant purposes 
set forth in section 211. These remedies may include the return to the 
United States of the present market value of its contributions to the 
Trust Fund and the present market value of any undistributed income on 
the contributions of the United States. If this Compact, as amended, is 
terminated, the provisions of sections 451-453 of the Compact, as 
amended, and the Trust Fund Agreement shall govern treatment of any 
U.S. contributions to the Trust Fund or accrued income thereon.
Section 217 - Annual Grant Funding and Trust Fund Contributions
    The funds described in sections 211, 212, 213(b), and 216 shall be 
made available as follows:


 
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                         Trust Fund       Kwajalein
            Fiscal year               Annual Grants     Audit Grant     Section 216     Impact Section    Total
                                       Section 211    Section 213(b)       (a&c)             212
----------------------------------------------------------------------------------------------------------------
2004...............................       35.2              .5               7               15.0         57.7
2005...............................       34.7              .5              7.5              15.0         57.7
2006...............................       34.2              .5               8               15.0         57.7
2007...............................       33.7              .5              8.5              15.0         57.7
2008...............................       33.2              .5               9               15.0         57.7
2009...............................       32.7              .5              9.5              15.0         57.7
2010...............................       32.2              .5               10              15.0         57.7
2011...............................       31.7              .5              10.5             15.0         57.7
2012...............................       31.2              .5               11              15.0         57.7
2013...............................       30.7              .5              11.5             15.0         57.7
2014...............................       32.2              .5               12              18.0         62.7
2015...............................       31.7              .5              12.5             18.0         62.7
2016...............................       31.2              .5               13              18.0         62.7
2017...............................       30.7              .5              13.5             18.0         62.7
2018...............................       30.2              .5               14              18.0         62.7
2019...............................       29.7              .5              14.5             18.0         62.7
2020...............................       29.2              .5               15              18.0         62.7
2021...............................       28.7              .5              15.5             18.0         62.7
2022...............................       28.2              .5               16              18.0         62.7
2023...............................       27.7              .5              16.5             18.0         62.7
----------------------------------------------------------------------------------------------------------------


Section 218 - Inflation Adjustment
    Except as otherwise provided, the amounts stated in this Title 
shall be adjusted for each United States Fiscal Year by the percent 
that equals two-thirds of the percent change in the United States Gross 
Domestic Product Implicit Price Deflator, or 5 percent, whichever is 
less in any one year, using the beginning of Fiscal Year 2004 as a 
base.
Section 219 - Carry-Over of Unused Funds
    If in any year the funds made available by the Government of the 
United States for that year pursuant to this Article are not completely 
obligated by the Government of the Republic of the Marshall Islands, 
the unobligated balances shall remain available in addition to the 
funds to be provided in subsequent years.

                               Article II

                    Services and Program Assistance

Section 221
    (a) Services.--The Government of the United States shall make 
available to the Republic of the Marshall Islands, in accordance with 
and to the extent provided in the Federal Programs and Services 
Agreement referred to in Section 231, the services and related programs 
of:
        (1) the United States Weather Service;
        (2) the United States Postal Service;
        (3) the United States Federal Aviation Administration;
        (4) the United States Department of Transportation; and
        (5) the Department of Homeland Security, and the United States 
    Agency for International Development, Office of Foreign Disaster 
    Assistance.
Upon the effective date of this Compact, as amended, the United States 
Departments and Agencies named or having responsibility to provide 
these services and related programs shall have the authority to 
implement the relevant provisions of the Federal Programs and Services 
Agreement referred to in section 231.
    (b) Programs.--
        (1) Other than the services and programs covered by subsection 
    (a) of this section, and to the extent authorized by the Congress 
    of the United States, the Government of the United States shall 
    make available to the Republic of the Marshall Islands the services 
    and programs that were available to the Republic of the Marshall 
    Islands on the effective date of this Compact, as amended, to the 
    extent that such services and programs continue to be available to 
    State and local governments of the United States. As set forth in 
    the Fiscal Procedures Agreement, funds provided under subsection 
    (a) of section 211 shall be considered to be local revenues of the 
    Government of the Republic of the Marshall Islands when used as the 
    local share required to obtain Federal programs and services.
        (2) Unless provided otherwise by U.S. law, the services and 
    programs described in paragraph (1) of this subsection shall be 
    extended in accordance with the terms of the Federal Programs and 
    Services Agreement.
    (c) The Government of the United States shall have and exercise 
such authority as is necessary to carry out its responsibilities under 
this Title and the Federal Programs and Services Agreement, including 
the authority to monitor and administer all service and program 
assistance provided by the United States to the Republic of the 
Marshall Islands. The Federal Programs and Services Agreement shall 
also set forth the extent to which services and programs shall be 
provided to the Republic of the Marshall Islands.
    (d) Except as provided elsewhere in this Compact, as amended, under 
any separate agreement entered into under this Compact, as amended, or 
otherwise under U.S. law, all Federal domestic programs extended to or 
operating in the Republic of the Marshall Islands shall be subject to 
all applicable criteria, standards, reporting requirements, auditing 
procedures, and other rules and regulations applicable to such programs 
and services when operating in the United States.
    (e) The Government of the United States shall make available to the 
Republic of the Marshall Islands alternate energy development projects, 
studies, and conservation measures to the extent provided for the 
Freely Associated States in the laws of the United States.
Section 222
    The Government of the United States and the Government of the 
Republic of the Marshall Islands may agree from time to time to extend 
to the Republic of the Marshall Islands additional United States grant 
assistance, services and programs, as provided under the laws of the 
United States. Unless inconsistent with such laws, or otherwise 
specifically precluded by the Government of the United States at the 
time such additional grant assistance, services, or programs are 
extended, the Federal Programs and Services Agreement shall apply to 
any such assistance, services or programs.
Section 223
    The Government of the Republic of the Marshall Islands shall make 
available to the Government of the United States at no cost such land 
as may be necessary for the operations of the services and programs 
provided pursuant to this Article, and such facilities as are provided 
by the Government of the Republic of the Marshall Islands at no cost to 
the Government of the United States as of the effective date of this 
Compact, as amended, or as may be mutually agreed thereafter.
Section 224
    The Government of the Republic of the Marshall Islands may request, 
from the time to time, technical assistance from the Federal agencies 
and institutions of the Government of the United States, which are 
authorized to grant such technical assistance in accordance with its 
laws. If technical assistance is granted pursuant to such a request, 
the Government of the United States shall provide the technical 
assistance in a manner which gives priority consideration to the 
Republic of the Marshall Islands over other recipients not a part of 
the United States, its territories or possessions, and equivalent 
consideration to the Republic of the Marshall Islands with respect to 
other states in Free Association with the United States. Such 
assistance shall be made available on a reimbursable or non-
reimbursable basis to the extent provided by United States law.

                              Article III

                       Administrative Provisions

Section 231
    The specific nature, extent and contractual arrangements of the 
services and programs provided for in section 221 of this Compact, as 
amended, as well as the legal status of agencies of the Government of 
the United States, their civilian employees and contractors, and the 
dependents of such personnel while present in the Republic of the 
Marshall Islands, and other arrangements in connection with the 
assistance, services, or programs furnished by the Government of the 
United States, are set forth in a Federal Programs and Services 
Agreement which shall come into effect simultaneously with this 
Compact, as amended.
Section 232
    The Government of the United States, in consultation with the 
Government of the Republic of the Marshall Islands, shall determine and 
implement procedures for the periodic audit of all grants and other 
assistance made under Article I of this Title and of all funds expended 
for the services and programs provided under Article II of this Title. 
Further, in accordance with the Fiscal Procedures Agreement described 
in subsection (a) of section 211, the Comptroller General of the United 
States shall have such powers and authorities as described in sections 
103(m) and 110(c) of Public Law 99-239, 99 Stat. 1777-78, and 99 Stat. 
1799 (January 14, 1986).
Section 233
    Approval of this Compact, as amended, by the Government of the 
United States, in accordance with its constitutional processes, shall 
constitute a pledge by the United States that the sums and amounts 
specified as grants in section 211 of this Compact, as amended, shall 
be appropriated and paid to the Republic of the Marshall Islands for 
such period as those provisions of this Compact, as amended, remain in 
force, provided that the Republic of the Marshall Islands complies with 
the terms and conditions of this Title and related subsidiary 
agreements.
Section 234
    The Government of the Republic of the Marshall Islands pledges to 
cooperate with, permit, and assist if reasonably requested, designated 
and authorized representatives of the Government of the United States 
charged with investigating whether Compact funds, or any other 
assistance authorized under this Compact, as amended, have, or are 
being, used for purposes other than those set forth in this Compact, as 
amended, or its subsidiary agreements. In carrying out this 
investigative authority, such United States Government representatives 
may request that the Government of the Republic of the Marshall Islands 
subpoena documents and records and compel testimony in accordance with 
the laws and Constitution of the Republic of the Marshall Islands. Such 
assistance by the Government of the Republic of the Marshall Islands to 
the Government of the United States shall not be unreasonably withheld. 
The obligation of the Government of the Marshall Islands to fulfill its 
pledge herein is a condition to its receiving payment of such funds or 
other assistance authorized under this Compact, as amended. The 
Government of the United States shall pay any reasonable costs for 
extraordinary services executed by the Government of the Marshall 
Islands in carrying out the provisions of this section.

                               Article IV

                                 Trade

Section 241
    The Republic of the Marshall Islands is not included in the customs 
territory of the United States.
Section 242
    The President shall proclaim the following tariff treatment for 
articles imported from the Republic of the Marshall Islands which shall 
apply during the period of effectiveness of this title:
        (a) Unless otherwise excluded, articles imported from the 
    Republic of the Marshall Islands, subject to the limitations 
    imposed under section 503(b) of title V of the Trade Act of 1974 
    (19 U.S.C. 2463(b)), shall be exempt from duty.
        (b) Only tuna in airtight containers provided for in heading 
    1604.14.22 of the Harmonized Tariff Schedule of the United States 
    that is imported from the Republic of the Marshall Islands and the 
    Federated States of Micronesia during any calendar year not to 
    exceed 10 percent of apparent United States consumption of tuna in 
    airtight containers during the immediately preceding calendar year, 
    as reported by the National Marine Fisheries Service, shall be 
    exempt from duty; but the quantity of tuna given duty-free 
    treatment under this paragraph for any calendar year shall be 
    counted against the aggregated quantity of tuna in airtight 
    containers that is dutiable under rate column numbered 1 of such 
    heading 1604.14.22 for that calendar year.
        (c) The duty-free treatment provided under subsection (a) shall 
    not apply to:
            (1) watches, clocks, and timing apparatus provided for in 
        Chapter 91, excluding heading 9113, of the Harmonized Tariff 
        Schedule of the United States;
            (2) buttons (whether finished or not finished) provided for 
        in items 9606.21.40 and 9606.29.20 of such Schedule;
            (3) textile and apparel articles which are subject to 
        textile agreements; and
            (4) footwear, handbags, luggage, flat goods, work gloves, 
        and leather wearing apparel which were not eligible articles 
        for purposes of title V of the Trade Act of 1974 (19 U.S.C. 
        2461, et seq.) on April 1, 1984.
        (d) If the cost or value of materials produced in the customs 
    territory of the United States is included with respect to an 
    eligible article which is a product of the Republic of the Marshall 
    Islands, an amount not to exceed 15 percent of the appraised value 
    of the article at the time it is entered that is attributable to 
    such United States cost or value may be applied for duty assessment 
    purposes toward determining the percentage referred to in section 
    503(a)(2) of title V of the Trade Act of 1974.
Section 243
    Articles imported from the Republic of the Marshall Islands which 
are not exempt from duty under subsections (a), (b), (c), and (d) of 
section 242 shall be subject to the rates of duty set forth in column 
numbered 1-general of the Harmonized Tariff Schedule of the United 
States (HTSUS).
Section 244
    (a) All products of the United States imported into the Republic of 
the Marshall Islands shall receive treatment no less favorable than 
that accorded like products of any foreign country with respect to 
customs duties or charges of a similar nature and with respect to laws 
and regulations relating to importation, exportation, taxation, sale, 
distribution, storage or use.
    (b) The provisions of subsection (a) shall not apply to advantages 
accorded by the Republic of the Marshall Islands by virtue of their 
full membership in the Pacific Island Countries Trade Agreement 
(PICTA), done on August 18, 2001, to those governments listed in 
Article 26 of PICTA, as of the date the Compact, as amended, is signed.
    (c) Prior to entering into consultations on, or concluding, a free 
trade agreement with governments not listed in Article 26 of PICTA, the 
Republic of the Marshall Islands shall consult with the United States 
regarding whether or how subsection (a) of section 244 shall be 
applied.

                               Article V

                          Finance and Taxation

Section 251
    The currency of the United States is the official circulating legal 
tender of the Republic of the Marshall Islands. Should the Government 
of the Republic of the Marshall Islands act to institute another 
currency, the terms of an appropriate currency transitional period 
shall be as agreed with the Government of the United States.
Section 252
    The Government of the Republic of the Marshall Islands may, with 
respect to United States persons, tax income derived from sources 
within its respective jurisdiction, property situated therein, 
including transfers of such property by gift or at death, and products 
consumed therein, in such manner as the Government of the Republic of 
the Marshall Islands deems appropriate. The determination of the source 
of any income, or the situs of any property, shall for purposes of this 
Compact, as amended, be made according to the United States Internal 
Revenue Code.
Section 253
    A citizen of the Republic of the Marshall Islands, domiciled 
therein, shall be exempt from estate, gift, and generation-skipping 
transfer taxes imposed by the Government of the United States, provided 
that such citizen of the Republic of the Marshall Islands is neither a 
citizen nor a resident of the United States.
Section 254
    (a) In determining any income tax imposed by the Government of the 
Republic of the Marshall Islands, the Government of the Republic of the 
Marshall Islands shall have authority to impose tax upon income derived 
by a resident of the Republic of the Marshall Islands from sources 
without the Republic of the Marshall Islands, in the same manner and to 
the same extent as the Government of the Republic of the Marshall 
Islands imposes tax upon income derived from within its own 
jurisdiction. If the Government of the Republic of the Marshall Islands 
exercises such authority as provided in this subsection, any individual 
resident of the Republic of the Marshall Islands who is subject to tax 
by the Government of the United States on income which is also taxed by 
the Government of the Republic of the Marshall Islands shall be 
relieved of liability to the Government of the United States for the 
tax which, but for this subsection, would otherwise be imposed by the 
Government of the United States on such income. However, the relief 
from liability to the United States Government referred to in the 
preceding sentence means only relief in the form of the foreign tax 
credit (or deduction in lieu thereof) available with respect to the 
income taxes of a possession of the United States, and relief in the 
form of the exclusion under section 911 of the Internal Revenue Code of 
1986. For purposes of this section, the term ``resident of the Republic 
of the Marshall Islands'' shall be deemed to include any person who was 
physically present in the Republic of the Marshall Islands for a period 
of 183 or more days during any taxable year.
    (b) If the Government of the Republic of the Marshall Islands 
subjects income to taxation substantially similar to that which was 
imposed by the Trust Territory Code in effect on January 1, 1980, such 
Government shall be deemed to have exercised the authority described in 
section 254(a).
Section 255
    For purposes of section 274(h)(3)(A) of the U.S. Internal Revenue 
Code of 1986, the term ``North American Area'' shall include the 
Republic of the Marshall Islands.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

Section 311
    (a) The Government of the United States has full authority and 
responsibility for security and defense matters in or relating to the 
Republic of the Marshall Islands.
    (b) This authority and responsibility includes:
        (1) the obligation to defend the Republic of the Marshall 
    Islands and its people from attack or threats thereof as the United 
    States and its citizens are defended;
        (2) the option to foreclose access to or use of the Republic of 
    the Marshall Islands by military personnel or for the military 
    purposes of any third country; and
        (3) the option to establish and use military areas and 
    facilities in the Republic of the Marshall Islands, subject to the 
    terms of the separate agreements referred to in sections 321 and 
    323.
    (c) The Government of the United States confirms that it shall act 
in accordance with the principles of international law and the Charter 
of the United Nations in the exercise of this authority and 
responsibility.
Section 312
    Subject to the terms of any agreements negotiated in accordance 
with sections 321 and 323, the Government of the United States may 
conduct within the lands, waters and airspace of the Republic of the 
Marshall Islands the activities and operations necessary for the 
exercise of its authority and responsibility under this Title.
Section 313
    (a) The Government of the Republic of the Marshall Islands shall 
refrain from actions that the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Republic of the Marshall Islands.
    (b) The consultations referred to in this section shall be 
conducted expeditiously at senior levels of the two Governments, and 
the subsequent determination by the Government of the United States 
referred to in this section shall be made only at senior interagency 
levels of the Government of the United States.
    (c) The Government of the Republic of the Marshall Islands shall be 
afforded, on an expeditious basis, an opportunity to raise its concerns 
with the United States Secretary of State personally and the United 
States Secretary of Defense personally regarding any determination made 
in accordance with this section.
Section 314
    (a) Unless otherwise agreed, the Government of the United States 
shall not, in the Republic of the Marshall Islands:
        (1) test by detonation or dispose of any nuclear weapon, nor 
    test, dispose of, or discharge any toxic chemical or biological 
    weapon; or
        (2) test, dispose of, or discharge any other radioactive, toxic 
    chemical or biological materials in an amount or manner that would 
    be hazardous to public health or safety.
    (b) Unless otherwise agreed, other than for transit or overflight 
purposes or during time of a national emergency declared by the 
President of the United States, a state of war declared by the Congress 
of the United States or as necessary to defend against an actual or 
impending armed attack on the United States, the Republic of the 
Marshall Islands or the Federated States of Micronesia, the Government 
of the United States shall not store in the Republic of the Marshall 
Islands or the Federated States of Micronesia any toxic chemical 
weapon, nor any radioactive materials nor any toxic chemical materials 
intended for weapons use.
    (c) Radioactive, toxic chemical, or biological materials not 
intended for weapons use shall not be affected by section 314(b).
    (d) No material or substance referred to in this section shall be 
stored in the Republic of the Marshall Islands except in an amount and 
manner which would not be hazardous to public health or safety. In 
determining what shall be an amount or manner which would be hazardous 
to public health or safety under this section, the Government of the 
United States shall comply with any applicable mutual agreement, 
international guidelines accepted by the Government of the United 
States, and the laws of the United States and their implementing 
regulations.
    (e) Any exercise of the exemption authority set forth in section 
161(e) shall have no effect on the obligations of the Government of the 
United States under this section or on the application of this 
subsection.
    (f) The provisions of this section shall apply in the areas in 
which the Government of the Republic of the Marshall Islands exercises 
jurisdiction over the living resources of the seabed, subsoil or water 
column adjacent to its coasts.
Section 315
    The Government of the United States may invite members of the armed 
forces of other countries to use military areas and facilities in the 
Republic of the Marshall Islands, in conjunction with and under the 
control of United States Armed Forces. Use by units of the armed forces 
of other countries of such military areas and facilities, other than 
for transit and overflight purposes, shall be subject to consultation 
with and, in the case of major units, approval of the Government of the 
Republic of the Marshall Islands.
Section 316
    The authority and responsibility of the Government of the United 
States under this Title may not be transferred or otherwise assigned.

                               Article II

                Defense Facilities and Operating Rights

Section 321
    (a) Specific arrangements for the establishment and use by the 
Government of the United States of military areas and facilities in the 
Republic of the Marshall Islands are set forth in separate agreements, 
which shall remain in effect in accordance with the terms of such 
agreements.
    (b) If, in the exercise of its authority and responsibility under 
this Title, the Government of the United States requires the use of 
areas within the Republic of the Marshall Islands in addition to those 
for which specific arrangements are concluded pursuant to section 
321(a), it may request the Government of the Republic of the Marshall 
Islands to satisfy those requirements through leases or other 
arrangements. The Government of the Republic of the Marshall Islands 
shall sympathetically consider any such request and shall establish 
suitable procedures to discuss it with and provide a prompt response to 
the Government of the United States.
    (c) The Government of the United States recognizes and respects the 
scarcity and special importance of land in the Republic of the Marshall 
Islands. In making any requests pursuant to section 321(b), the 
Government of the United States shall follow the policy of requesting 
the minimum area necessary to accomplish the required security and 
defense purpose, of requesting only the minimum interest in real 
property necessary to support such purpose, and of requesting first to 
satisfy its requirement through public real property, where available, 
rather than through private real property.
Section 322
    The Government of the United States shall provide and maintain 
fixed and floating aids to navigation in the Republic of the Marshall 
Islands at least to the extent necessary for the exercise of its 
authority and responsibility under this Title.
Section 323
    The military operating rights of the Government of the United 
States and the legal status and contractual arrangements of the United 
States Armed Forces, their members, and associated civilians, while 
present in the Republic of the Marshall Islands are set forth in 
separate agreements, which shall remain in effect in accordance with 
the terms of such agreements.

                              Article III

         Defense Treaties and International Security Agreements

Section 331
    Subject to the terms of this Compact, as amended, and its related 
agreements, the Government of the United States, exclusively, has 
assumed and enjoys, as to the Republic of the Marshall Islands, all 
obligations, responsibilities, rights and benefits of:
        (a) Any defense treaty or other international security 
    agreement applied by the Government of the United States as 
    Administering Authority of the Trust Territory of the Pacific 
    Islands as of October 20, 1986.
        (b) Any defense treaty or other international security 
    agreement to which the Government of the United States is or may 
    become a party which it determines to be applicable in the Republic 
    of the Marshall Islands. Such a determination by the Government of 
    the United States shall be preceded by appropriate consultation 
    with the Government of the Republic of the Marshall Islands.

                               Article IV

              Service in Armed Forces of the United States

Section 341
    Any person entitled to the privileges set forth in Section 141 
(with the exception of any person described in section 141(a)(5) who is 
not a citizen of the Republic of the Marshall Islands) shall be 
eligible to volunteer for service in the Armed Forces of the United 
States, but shall not be subject to involuntary induction into military 
service of the United States as long as such person has resided in the 
United States for a period of less than one year, provided that no time 
shall count towards this one year while a person admitted to the United 
States under the Compact, or the Compact, as amended, is engaged in 
full-time study in the United States. Any person described in section 
141(a)(5) who is not a citizen of the Republic of the Marshall Islands 
shall be subject to United States laws relating to selective service.
Section 342
    The Government of the United States shall have enrolled, at any one 
time, at least one qualified student from the Republic of the Marshall 
Islands, as may be nominated by the Government of the Republic of the 
Marshall Islands, in each of:
        (a) The United States Coast Guard Academy pursuant to 14 U.S.C. 
    195.
        (b) The United States Merchant Marine Academy pursuant to 46 
    U.S.C. 1295(b)(6), provided that the provisions of 46 U.S.C. 
    1295b(b)(6)(C) shall not apply to the enrollment of students 
    pursuant to section 342(b) of this Compact, as amended.

                               Article V

                           General Provisions

Section 351
    (a) The Government of the United States and the Government of the 
Republic of the Marshall Islands shall continue to maintain a Joint 
Committee empowered to consider disputes arising under the 
implementation of this Title and its related agreements.
    (b) The membership of the Joint Committee shall comprise selected 
senior officials of the two Governments. The senior United States 
military commander in the Pacific area shall be the senior United 
States member of the Joint Committee. For the meetings of the Joint 
Committee, each of the two Governments may designate additional or 
alternate representatives as appropriate for the subject matter under 
consideration.
    (c) Unless otherwise mutually agreed, the Joint Committee shall 
meet annually at a time and place to be designated, after appropriate 
consultation, by the Government of the United States. The Joint 
Committee also shall meet promptly upon request of either of its 
members. The Joint Committee shall follow such procedures, including 
the establishment of functional subcommittees, as the members may from 
time to time agree. Upon notification by the Government of the United 
States, the Joint Committee of the United States and the Republic of 
the Marshall Islands shall meet promptly in a combined session with the 
Joint Committee established and maintained by the Government of the 
United States and the Government of the Federated States of Micronesia 
to consider matters within the jurisdiction of the two Joint 
Committees.
    (d) Unresolved issues in the Joint Committee shall be referred to 
the Governments for resolution, and the Government of the Republic of 
the Marshall Islands shall be afforded, on an expeditious basis, an 
opportunity to raise its concerns with the United States Secretary of 
Defense personally regarding any unresolved issue which threatens its 
continued association with the Government of the United States.
Section 352
    In the exercise of its authority and responsibility under Title 
Three, the Government of the United States shall accord due respect to 
the authority and responsibility of the Government of the Republic of 
the Marshall Islands under Titles One, Two and Four and to the 
responsibility of the Government of the Republic of the Marshall 
Islands to assure the well-being of its people.
Section 353
    (a) The Government of the United States shall not include the 
Government of the Republic of the Marshall Islands as a named party to 
a formal declaration of war, without that Government's consent.
    (b) Absent such consent, this Compact, as amended, is without 
prejudice, on the ground of belligerence or the existence of a state of 
war, to any claims for damages which are advanced by the citizens, 
nationals or Government of the Republic of the Marshall Islands, which 
arise out of armed conflict subsequent to October 21, 1986, and which 
are:
        (1) petitions to the Government of the United States for 
    redress; or
        (2) claims in any manner against the government, citizens, 
    nationals or entities of any third country.
    (c) Petitions under section 353(b)(1) shall be treated as if they 
were made by citizens of the United States.
Section 354
    (a) The Government of the United States and the Government of the 
Republic of the Marshall Islands are jointly committed to continue 
their security and defense relations, as set forth in this Title. 
Accordingly, it is the intention of the two countries that the 
provisions of this Title shall remain binding as long as this Compact, 
as amended, remains in effect, and thereafter as mutually agreed, 
unless earlier terminated by mutual agreement pursuant to section 441, 
or amended pursuant to Article III of Title Four. If at any time the 
Government of the United States, or the Government of the Republic of 
the Marshall Islands, acting unilaterally, terminates this Title, such 
unilateral termination shall be considered to be termination of the 
entire Compact, as amended, in which case the provisions of section 442 
and 452 (in the case of termination by the Government of the United 
States) or sections 443 and 453 (in the case of termination by the 
Government of the Republic of the Marshall Islands), with the exception 
of paragraph (3) of subsection (a) of section 452 or paragraph (3) of 
subsection (a) of section 453, as the case may be, shall apply.
    (b) The Government of the United States recognizes, in view of the 
special relationship between the Government of the United States and 
the Government of the Republic of the Marshall Islands, and in view of 
the existence of the separate agreement regarding mutual security 
concluded with the Government of the Republic of the Marshall Islands 
pursuant to sections 321 and 323, that, even if this Title should 
terminate, any attack on the Republic of the Marshall Islands during 
the period in which such separate agreement is in effect, would 
constitute a threat to the peace and security of the entire region and 
a danger to the United States. In the event of such an attack, the 
Government of the United States would take action to meet the danger to 
the United States and to the Republic of the Marshall Islands in 
accordance with its constitutional processes.
    (c) As reflected in Article 21(1)(b) of the Trust Fund Agreement, 
the Government of the United States and the Government of the Republic 
of the Marshall Islands further recognize, in view of the special 
relationship between their countries, that even if this Title should 
terminate, the Government of Republic of the Marshall Islands shall 
refrain from actions which the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Republic of the Marshall Islands 
or the Federated States of Micronesia.

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

Section 411
    Pursuant to section 432 of the Compact and subject to subsection 
(e) of section 461 of the Compact, as amended, the Compact, as amended, 
shall come into effect upon mutual agreement between the Government of 
the United States and the Government of the Republic of the Marshall 
Islands subsequent to completion of the following:
        (a) Approval by the Government of the Republic of the Marshall 
    Islands in accordance with its constitutional processes.
        (b) Approval by the Government of the United States in 
    accordance with its constitutional processes.

                               Article II

                   Conference and Dispute Resolution

Section 421
    The Government of the United States shall confer promptly at the 
request of the Government of the Republic of the Marshall Islands and 
that Government shall confer promptly at the request of the Government 
of the United States on matters relating to the provisions of this 
Compact, as amended, or of its related agreements.
Section 422
    In the event the Government of the United States or the Government 
of the Republic of the Marshall Islands, after conferring pursuant to 
section 421, determines that there is a dispute and gives written 
notice thereof, the two Governments shall make a good faith effort to 
resolve the dispute between themselves.
Section 423
    If a dispute between the Government of the United States and the 
Government of the Republic of the Marshall Islands cannot be resolved 
within 90 days of written notification in the manner provided in 
section 422, either party to the dispute may refer it to arbitration in 
accordance with section 424.
Section 424
    Should a dispute be referred to arbitration as provided for in 
section 423, an Arbitration Board shall be established for the purpose 
of hearing the dispute and rendering a decision which shall be binding 
upon the two parties to the dispute unless the two parties mutually 
agree that the decision shall be advisory. Arbitration shall occur 
according to the following terms:
        (a) An Arbitration Board shall consist of a Chairman and two 
    other members, each of whom shall be a citizen of a party to the 
    dispute. Each of the two Governments that is a party to the dispute 
    shall appoint one member to the Arbitration Board. If either party 
    to the dispute does not fulfill the appointment requirements of 
    this section within 30 days of referral of the dispute to 
    arbitration pursuant to section 423, its member on the Arbitration 
    Board shall be selected from its own standing list by the other 
    party to the dispute. Each Government shall maintain a standing 
    list of 10 candidates. The parties to the dispute shall jointly 
    appoint a Chairman within 15 days after selection of the other 
    members of the Arbitration Board. Failing agreement on a Chairman, 
    the Chairman shall be chosen by lot from the standing lists of the 
    parties to the dispute within 5 days after such failure.
        (b) Unless otherwise provided in this Compact, as amended, or 
    its related agreements, the Arbitration Board shall have 
    jurisdiction to hear and render its final determination on all 
    disputes arising exclusively under Articles I, II, III, IV and V of 
    Title One, Title Two, Title Four, and their related agreements.
        (c) Each member of the Arbitration Board shall have one vote. 
    Each decision of the Arbitration Board shall be reached by majority 
    vote.
        (d) In determining any legal issue, the Arbitration Board may 
    have reference to international law and, in such reference, shall 
    apply as guidelines the provisions set forth in Article 38 of the 
    Statute of the International Court of Justice.
        (e) The Arbitration Board shall adopt such rules for its 
    proceedings as it may deem appropriate and necessary, but such 
    rules shall not contravene the provisions of this Compact, as 
    amended. Unless the parties provide otherwise by mutual agreement, 
    the Arbitration Board shall endeavor to render its decision within 
    30 days after the conclusion of arguments. The Arbitration Board 
    shall make findings of fact and conclusions of law and its members 
    may issue dissenting or individual opinions. Except as may be 
    otherwise decided by the Arbitration Board, one-half of all costs 
    of the arbitration shall be borne by the Government of the United 
    States and the remainder shall be borne by the Government of the 
    Republic of the Marshall Islands.

                              Article III

                               Amendment

Section 431
    The provisions of this Compact, as amended, may be further amended 
by mutual agreement of the Government of the United States and the 
Government of the Republic of the Marshall Islands, in accordance with 
their respective constitutional processes.

                               Article IV

                              Termination

Section 441
    This Compact, as amended, may be terminated by mutual agreement of 
the Government of the Republic of the Marshall Islands and the 
Government of the United States, in accordance with their respective 
constitutional processes. Such mutual termination of this Compact, as 
amended, shall be without prejudice to the continued application of 
section 451 of this Compact, as amended, and the provisions of the 
Compact, as amended, set forth therein.
Section 442
    Subject to section 452, this Compact, as amended, may be terminated 
by the Government of the United States in accordance with its 
constitutional processes. Such termination shall be effective on the 
date specified in the notice of termination by the Government of the 
United States but not earlier than six months following delivery of 
such notice. The time specified in the notice of termination may be 
extended. Such termination of this Compact, as amended, shall be 
without prejudice to the continued application of section 452 of this 
Compact, as amended, and the provisions of the Compact, as amended, set 
forth therein.
Section 443
    This Compact, as amended, shall be terminated by the Government of 
the Republic of the Marshall Islands, pursuant to its constitutional 
processes, subject to section 453 if the people represented by that 
Government vote in a plebiscite to terminate the Compact. The 
Government of the Republic of the Marshall Islands shall notify the 
Government of the United States of its intention to call such a 
plebiscite, which shall take place not earlier than three months after 
delivery of such notice. The plebiscite shall be administered by the 
Government of the Republic of the Marshall Islands in accordance with 
its constitutional and legislative processes, but the Government of the 
United States may send its own observers and invite observers from a 
mutually agreed party. If a majority of the valid ballots cast in the 
plebiscite favors termination, the Government of the Republic of the 
Marshall Islands shall, upon certification of the results of the 
plebiscite, give notice of termination to the Government of the United 
States, such termination to be effective on the date specified in such 
notice but not earlier than three months following the date of delivery 
of such notice. The time specified in the notice of termination may be 
extended.

                               Article V

                             Survivability

Section 451
    (a) Should termination occur pursuant to section 441, economic and 
other assistance by the Government of the United States shall continue 
only if and as mutually agreed by the Governments of the United States 
and the Republic of the Marshall Islands, and in accordance with the 
countries' respective constitutional processes.
    (b) In view of the special relationship of the United States and 
the Republic of the Marshall Islands, as reflected in subsections (b) 
and (c) of section 354 of this Compact, as amended, and the separate 
agreement entered into consistent with those subsections, if 
termination occurs pursuant to section 441 prior to the twentieth 
anniversary of the effective date of this Compact, as amended, the 
United States shall continue to make contributions to the Trust Fund 
described in section 216 of this Compact, as amended.
    (c) In view of the special relationship of the United States and 
the Republic of the Marshall Islands described in subsection (b) of 
this section, if termination occurs pursuant to section 441 following 
the twentieth anniversary of the effective date of this Compact, as 
amended, the Republic of the Marshall Islands shall be entitled to 
receive proceeds from the Trust Fund described in section 216 of this 
Compact, as amended, in the manner described in those provisions and 
the Trust Fund Agreement.
Section 452
    (a) Should termination occur pursuant to section 442 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this amended Compact shall remain 
in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
        (1) Article VI and sections 172, 173, 176 and 177 of Title One;
        (2) Article One and sections 232 and 234 of Title Two;
        (3) Title Three; and
        (4) Articles II, III, V and VI of Title Four.
    (b) Should termination occur pursuant to section 442 before the 
twentieth anniversary of the effective date of this Compact, as 
amended:
        (1) Except as provided in paragraph (2) of this subsection and 
    subsection (c) of this section, economic and other assistance by 
    the United States shall continue only if and as mutually agreed by 
    the Governments of the United States and the Republic of the 
    Marshall Islands.
        (2) In view of the special relationship of the United States 
    and the Republic of the Marshall Islands, as reflected in 
    subsections (b) and (c) of section 354 of this Compact, as amended, 
    and the separate agreement regarding mutual security, and the Trust 
    Fund Agreement, the United States shall continue to make 
    contributions to the Trust Fund described in section 216 of this 
    Compact, as amended, in the manner described in the Trust Fund 
    Agreement.
    (c) In view of the special relationship of the United States and 
the Republic of the Marshall Islands, as reflected in subsections 
354(b) and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 442 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Republic of the 
Marshall Islands shall continue to be eligible to receive proceeds from 
the Trust Fund described in section 216 of this Compact, as amended, in 
the manner described in those provisions and the Trust Fund Agreement.
Section 453
    (a) Should termination occur pursuant to section 443 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this Compact, as amended, shall 
remain in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
        (1) Article VI and sections 172, 173, 176 and 177 of Title One;
        (2) Sections 232 and 234 of Title Two;
        (3) Title Three; and
        (4) Articles II, III, V and VI of Title Four.
    (b) Upon receipt of notice of termination pursuant to section 443, 
the Government of the United States and the Government of the Republic 
of the Marshall Islands shall promptly consult with regard to their 
future relationship. Except as provided in subsections (c) and (d) of 
this section, these consultations shall determine the level of economic 
and other assistance, if any, which the Government of the United States 
shall provide to the Government of the Republic of the Marshall Islands 
for the period ending on the twentieth anniversary of the effective 
date of this Compact, as amended, and for any period thereafter, if 
mutually agreed.
    (c) In view of the special relationship of the United States and 
the Republic of the Marshall Islands, as reflected in subsections 
354(b) and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 443 prior to the twentieth anniversary of 
the effective date of this Compact, as amended, the United States shall 
continue to make contributions to the Trust Fund described in section 
216 of this Compact, as amended.
    (d) In view of the special relationship of the United States and 
the Republic of the Marshall Islands, as reflected in subsections 
354(b) and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 443 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Republic of the 
Marshall Islands shall continue to be eligible to receive proceeds from 
the Trust Fund described in section 216 of this Compact, as amended, in 
the manner described in those provisions and the Trust Fund Agreement.
Section 454
    Notwithstanding any other provision of this Compact, as amended:
        (a) The Government of the United States reaffirms its 
    continuing interest in promoting the economic advancement and 
    budgetary self-reliance of the people of the Republic of the 
    Marshall Islands.
        (b) The separate agreements referred to in Article II of Title 
    Three shall remain in effect in accordance with their terms.

                               Article VI

                          Definition of Terms

Section 461
    For the purpose of this Compact, as amended, only, and without 
prejudice to the views of the Government of the United States or the 
Government of the Republic of the Marshall Islands as to the nature and 
extent of the jurisdiction of either of them under international law, 
the following terms shall have the following meanings:
        (a) ``Trust Territory of the Pacific Islands'' means the area 
    established in the Trusteeship Agreement consisting of the former 
    administrative districts of Kosrae, Yap, Ponape, the Marshall 
    Islands and Truk as described in Title One, Trust Territory Code, 
    section 1, in force on January 1, 1979. This term does not include 
    the area of Palau or the Northern Mariana Islands.
        (b) ``Trusteeship Agreement'' means the agreement setting forth 
    the terms of trusteeship for the Trust Territory of the Pacific 
    Islands, approved by the Security Council of the United Nations 
    April 2, 1947, and by the United States July 18, 1947, entered into 
    force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 8 U.N.T.S. 189.
        (c) ``The Republic of the Marshall Islands'' and ``the 
    Federated States of Micronesia'' are used in a geographic sense and 
    include the land and water areas to the outer limits of the 
    territorial sea and the air space above such areas as now or 
    hereafter recognized by the Government of the United States.
        (d) ``Compact'' means the Compact of Free Association Between 
    the United States and the Federated States of Micronesia and the 
    Marshall Islands, that was approved by the United States Congress 
    in section 201 of Public Law 99-239 (Jan. 14, 1986) and went into 
    effect with respect to the Republic of the Marshall Islands on 
    October 21, 1986.
        (e) ``Compact, as amended'' means the Compact of Free 
    Association Between the United States and the Republic of the 
    Marshall Islands, as amended. The effective date of the Compact, as 
    amended, shall be on a date to be determined by the President of 
    the United States, and agreed to by the Government of the Republic 
    of the Marshall Islands, following formal approval of the Compact, 
    as amended, in accordance with section 411 of this Compact, as 
    amended.
        (f) ``Government of the Republic of the Marshall Islands'' 
    means the Government established and organized by the Constitution 
    of the Republic of the Marshall Islands including all the political 
    subdivisions and entities comprising that Government.
        (g) ``Government of the Federated States of Micronesia'' means 
    the Government established and organized by the Constitution of the 
    Federated States of Micronesia including all the political 
    subdivisions and entities comprising that Government.
        (h) The following terms shall be defined consistent with the 
    1978 Edition of the Radio Regulations of the International 
    Telecommunications as follows:
            (1) ``Radiocommunication'' means telecommunication by means 
        of radio waves.
            (2) ``Station'' means one or more transmitters or receivers 
        or a combination of transmitters and receivers, including the 
        accessory equipment, necessary at one location for carrying on 
        a radiocommunication service, or the radio astronomy service.
            (3) ``Broadcasting Service'' means a radiocommunication 
        service in which the transmissions are intended for direct 
        reception by the general public. This service may include sound 
        transmissions, television transmissions or other types of 
        transmission.
            (4) ``Broadcasting Station'' means a station in the 
        broadcasting service.
            (5) ``Assignment (of a radio frequency or radio frequency 
        channel)'' means an authorization given by an administration 
        for a radio station to use a radio frequency or radio frequency 
        channel under specified conditions.
            (6) ``Telecommunication'' means any transmission, emission 
        or reception of signs, signals, writings, images and sounds or 
        intelligence of any nature by wire, radio, optical or other 
        electromagnetic systems.
        (i) ``Military Areas and Facilities'' means those areas and 
    facilities in the Republic of the Marshall Islands reserved or 
    acquired by the Government of the Republic of the Marshall Islands 
    for use by the Government of the United States, as set forth in the 
    separate agreements referred to in section 321.
        (j) ``Tariff Schedules of the United States'' means the Tariff 
    Schedules of the United States as amended from time to time and as 
    promulgated pursuant to United States law and includes the Tariff 
    Schedules of the United States Annotated (TSUSA), as amended.
        (k) ``Vienna Convention on Diplomatic Relations'' means the 
    Vienna Convention on Diplomatic Relations, done April 18, 1961, 23 
    U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
    (a) The Government of the United States and the Government of the 
Republic of the Marshall Islands previously have concluded agreements, 
which shall remain in effect and shall survive in accordance with their 
terms, as follows:
        (1) Agreement Between the Government of the United States and 
    the Government of the Marshall Islands for the Implementation of 
    Section 177 of the Compact of Free Association;
        (2) Agreement Between the Government of the United States and 
    the Government of the Marshall Islands by Persons Displaced as a 
    Result of the United States Nuclear Testing Program in the Marshall 
    Islands;
        (3) Agreement Between the Government of the United States and 
    the Government of the Marshall Islands Regarding the Resettlement 
    of Enjebi Island;
        (4) Agreement Concluded Pursuant to Section 234 of the Compact; 
    and
        (5) Agreement Between the Government of the United States and 
    the Government of the Marshall Islands Regarding Mutual Security 
    Concluded Pursuant to Sections 321 and 323 of the Compact of Free 
    Association.
    (b) The Government of the United States and the Government of the 
Republic of the Marshall Islands shall conclude prior to the date of 
submission of this Compact to the legislatures of the two countries, 
the following related agreements which shall come into effect on the 
effective date of this Compact, as amended, and shall survive in 
accordance with their terms, as follows:
        (1) Federal Programs and Services Agreement Between the 
    Government of the United States of America and the Government of 
    the Republic of the Marshall Islands Concluded Pursuant to Article 
    III of Title One, Article II of Title Two (including Section 222), 
    and Section 231 of the Compact of Free Association, as Amended, 
    which include:
            (i) Postal Services and Related Programs;
            (ii) Weather Services and Related Programs;
            (iii) Civil Aviation Safety Service and Related Programs;
            (iv) Civil Aviation Economic Services and Related Programs;
            (v) United States Disaster Preparedness and Response 
        Services and Related Programs; and
            (vi) Telecommunications Services and Related Programs.
        (2) Agreement Between the Government of the United States of 
    America and the Government of the Republic of the Marshall Islands 
    on Extradition, Mutual Assistance in Law Enforcement Matters and 
    Penal Sanctions Concluded Pursuant to Section 175 (a) of the 
    Compact of Free Association, as Amended;
        (3) Agreement Between the Government of the United States of 
    America and the Government of the Republic of the Marshall Islands 
    on Labor Recruitment Concluded Pursuant to Section 175 (b) of the 
    Compact of Free Association, as Amended;
        (4) Agreement Concerning Procedures for the Implementation of 
    United States Economic Assistance Provided in the Compact, as 
    Amended, of Free Association Between the Government of the United 
    States of America and the Government of the Republic of the 
    Marshall Islands;
        (5) Agreement Between the Government of the United States of 
    America and the Government of the Republic of the Marshall Islands 
    Implementing Section 216 and Section 217 of the Compact, as 
    Amended, Regarding a Trust Fund;
        (6) Agreement Regarding the Military Use and Operating Rights 
    of the Government of the United States in the Republic of the 
    Marshall Islands Concluded Pursuant to Sections 321 and 323 of the 
    Compact of Free Association, as Amended; and
        (7) Status of Forces Agreement Between the Government of the 
    United States of America and the Government of the Republic of the 
    Marshall Islands Concluded Pursuant to Section 323 of the Compact 
    of Free Association, as Amended.
Section 463
    (a) Except as set forth in subsection (b) of this section, any 
reference in this Compact, as amended, to a provision of the United 
States Code or the Statutes at Large of the United States constitutes 
the incorporation of the language of such provision into this Compact, 
as amended, as such provision was in force on the effective date of 
this Compact, as amended.
    (b) Any reference in Article IV and VI of Title One, and Sections 
174, 175, 178 and 342 to a provision of the United States Code or the 
Statutes at Large of the United States or to the Privacy Act, the 
Freedom of Information Act, the Administrative Procedure Act or the 
Immigration and Nationality Act constitutes the incorporation of the 
language of such provision into this Compact, as amended, as such 
provision was in force on the effective date of this Compact, as 
amended, or as it may be amended thereafter on a non-discriminatory 
basis according to the constitutional processes of the United States.

                              Article VII

                         Concluding Provisions

Section 471
    Both the Government of the United States and the Government of the 
Republic of the Marshall Islands shall take all necessary steps, of a 
general or particular character, to ensure, no later than the entry 
into force date of this Compact, as amended, the conformity of its 
laws, regulations and administrative procedures with the provisions of 
this Compact, as amended, or, in the case of subsection (d) of section 
141, as soon as reasonably possible thereafter.
Section 472
    This Compact, as amended, may be accepted, by signature or 
otherwise, by the Government of the United States and the Government of 
the Republic of the Marshall Islands.
    IN WITNESS WHEREOF, the undersigned, duly authorized, have signed 
this Compact of Free Association, as amended, which shall enter into 
force upon the exchange of diplomatic notes by which the Government of 
the United States of America and the Government of the Republic of the 
Marshall Islands inform each other about the fulfillment of their 
respective requirements for entry into force.
    DONE at Majuro, Republic of the Marshall Islands, in duplicate, 
this thirtieth (30) day of April, 2003, each text being equally 
authentic.

Signed (April 30, 2003)
Signed (April 30, 2003)
For the Government of the
For the Government of the
United States of America:
Republic of the Marshall Islands:

Ambassador Michael J. Senko
His Excellency Banny deBrum
U.S. Ambassador to the
Ambassador Extraordinary and
Republic of the Marshall Islands
Plenipotentiary

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.