[Congressional Record Volume 149, Number 153 (Tuesday, October 28, 2003)]
[House]
[Pages H9848-H9888]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003
Mr. LEACH. Madam Speaker, I move to suspend the rules and pass the
joint resolution (H.J. Res. 63) 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 otherwise to amend Public Law 99-239, and to
appropriate for the purposes of amended Public Law 99-239 for fiscal
years ending on or before September 30, 2023, and for other purposes,
as amended.
The Clerk read as follows:
H.J. Res. 63
Whereas the United States, in accordance with section 231
of the Compact of Free Association set forth in Title II of
Public Law 99-239, January 14, 1986, 99 Stat. 1770, entered
into negotiations with the Governments of the Federated
States of Micronesia and the Republic of the Marshall
Islands; 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:
TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT;
INTERPRETATION OF, AND UNITED STATES 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 U.S.-RMI
Compact of Free Association.
(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 and the
U.S.-RMI Compact and Certain Agreements.
(e) Subsidiary Agreement 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) Kwajalein.
(d) Section 177 Agreement.
(e) Nuclear Test Effects.
(f) Espousal Provisions.
(g) DOE Radiological Health Care Program; USDA Agricultural and Food
Programs.
(h) Rongelap.
(i) Four Atoll Health Care Program.
(j) Enjebi Community Trust Fund.
(k) Bikini Atoll Cleanup.
(l) Agreement on Audits.
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 Compacts on Guam, the State of Hawaii, the Commonwealth
of the Northern Mariana Islands, and American Samoa;
Related Authorization and Continuing Appropriation.
(f) Sense of Congress Concerning Funding of Public Infrastructure.
(g) Foreign Loans.
(h) Reports and Reviews.
(i) Construction of Section 141(F).
Sec. 105. Supplemental Provisions.
(a) Domestic Program Requirements.
(b) Relations With the Federated States of Micronesia and the Republic
of the Marshall Islands.
(c) Judicial Training.
(d) Continuing Trust Territory Authorization.
(e) Survivability; Actions Incompatible with United States Authority.
(f) Noncompliance Sanctions.
(g) Continuing Programs and Laws.
(h) College of Micronesia.
(i) Trust Territory Debts to U.S. Federal Agencies.
(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) Inflation Adjustment.
(q) Armed Services Vocational Aptitude Battery Testing.
(r) Establishment of Trust Funds; Expedition of Process.
Sec. 106. Construction Contract Assistance.
(a) Assistance to U.S. Firms.
[[Page H9849]]
(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 and the Government of the
Federated States of Micronesia and Between the Government
of the United States 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
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.
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: Articles III, IV and X of the agreement referred to
in section 462(b)(6) of the U.S.-RMI Compact:
(i) Article III and IV of the agreement referred to in
section 462(b)(6) of the U.S.-FSM Compact.
(ii) 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
[[Page H9850]]
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 is subsection (d) of this
section shall enter into force until 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 nonreimbursable 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 ten 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 ten 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) Kwajalein.--
(1) 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
superceded, 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 Compact and the
subsidiary agreements concluded pursuant to the Compact.
(2)(A) 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 Compact and consult with the
Government of the Marshall Islands with respect to the basis
for the nonpayment of funds.
(B) The United States shall expeditiously resolve the
matter of any nonpayment of funds required under paragraph
(1) pursuant to section 313 of the 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.
(C) This paragraph shall be enforced in accordance with
section 105(f)(2).
(3) Until such time as the Government of the Marshall
Islands and the landowners of Kwajalein Atoll have concluded
an agreement amending or superceding the land use 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 account in a United States
financial institution by the Government of the Republic of
the Marshall Islands.
[[Page H9851]]
(4)(A) The Government of the Republic of the Marshall
Islands shall notify the Government of the United States when
an agreement amending or superceding the land use agreement
dated October 19, 1982, is concluded.
(B) If no agreement amending or superceding the land use
agreement dated October 19, 1982, is concluded by the date
five years after the date of enactment of this resolution,
the President shall report to Congress on the intentions of
the United States with respect to the use of Kwajalein Atoll
after 2016, and on any plans to relocate activities carried
out at Kwajalein Atoll.
(d) 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.
(e) 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. Nothing
in this subsection creates any rights or obligations beyond
those provided for in the original enacted version of Public
Law 99-239.
(f) 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.
(g) DOE Radiological Health Care Program; USDA Agricultural
and Food Programs.--
(1) 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)(A) 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);
(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) The President shall ensure the assistance provided
under these programs reflects the changes in the population
since the inception of such programs.
(C)(i) 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) 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, to carry out the planting and
agricultural maintenance program.
(3) 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.
(h) 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
[[Page H9852]]
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.
(i) 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.
(j) 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 million dollars.
(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.
(k) 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.
(l) 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
[[Page H9853]]
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 three 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.
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, the 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. The 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 the 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 intent 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 the
intent of Congress that 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 appropriate
security enhancements.
(3) Information-sharing.--It is the intent 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
Amended Compact Act.''.
(c) Nonalienation of Lands.--The 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, the 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 Compacts on Guam, the State of Hawaii, the
Commonwealth of the Northern Mariana Islands, and American
Samoa; Related Authorization and Continuing Appropriation.--
(1) 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 each
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.
[[Page H9854]]
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.
(2) Statement of congressional intent.--In approving the
Compacts, it is not the intent of the Congress to cause any
adverse consequences for Guam, the State of Hawaii, the
Commonwealth of the Northern Mariana Islands, and American
Samoa.
(3) Annual reports and recommendations.--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) Any adverse consequences resulting from the Compacts
and recommendations for corrective action to eliminate those
consequences.
(C) Matters relating to trade, taxation, immigration, labor
laws, minimum wages, health, educational, social, and public
safety services and infrastructure, and environmental
regulation.
(D) 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.
(E) With regard to trade, the reports shall include 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.
(4) Commitment of congress to redress adverse
consequences.--The Congress hereby declares that, if any
adverse consequences to Guam, the State of Hawaii, the
Commonwealth of the Northern Mariana Islands, or American
Samoa result from implementation of the Compacts, the
Congress will act sympathetically and expeditiously to
redress those adverse consequences.
(5) Qualified nonimmigrant.--For the purposes of this
section, the term ``qualified nonimmigrant'' means person
admitted to the United States pursuant to:
(A) section 141 of the Compact of Free Association between
the United States and the Government of the Federated States
of Micronesia set forth in Title I;
(B) section 141 of the Compact of Free Association between
the United States and the Government of the Republic of the
Marshall Islands set forth in Title I; or
(C) section 141 of the Compact of Free Association between
the United States and the Government of the Republic of
Palau.
(6) Authorization and continuing appropriation.--There are
hereby authorized and appropriated to the Secretary of the
Interior, for each fiscal year beginning after September 30,
2003 through 2023, $30,000,000 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 such services
due to the presence in Guam, the State of Hawaii, the
Commonwealth of the Northern Mariana Islands, or American
Samoa of qualified nonimmigrants from the Federated States of
Micronesia, the Republic of the Marshall Islands, or the
Republic of Palau.
(A) Awarding.--The grants shall be--
(i) 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
(ii) used only for health, educational, social, or public
safety services, or infrastructure related to such services,
specifically affected by qualified nonimmigrants.
(B) Enumeration.--For purposes of carrying out this
section, the Secretary of the Interior shall provide for a
periodic census of qualified nonimmigrants in Guam, the State
of Hawaii, the Commonwealth of the Northern Mariana Islands,
and American Samoa. The enumeration--
(i) shall be provided by the Secretary of the Interior
beginning in fiscal year 2004 and thereafter in calendar
years 2005, 2010, 2015, and 2020;
(ii) shall be supervised by the United States Bureau of the
Census and any other supporting organization(s) as the
Secretary of the Interior may select; and
(iii) after fiscal year 2003, shall be funded by the
Secretary of the Interior by deducting such sums as are
necessary from funds appropriated pursuant to the
authorization contained in paragraph (6) of this subsection.
(C) Allocation.--The Secretary of the Interior shall
allocate to each of the governments of Guam, the State of
Hawaii, the Commonwealth of the Northern Mariana Islands, and
American Samoa, 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 (6) of
this subsection, as reduced by any deductions authorized by
subparagraph (iii) of subparagraph (B) of paragraph (6) 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 the governments of Guam, the Commonwealth of the Northern
Mariana Islands, and American Samoa.
(7) 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.
(8) Authorization of appropriations for the reimbursement
of health care services.--
(A) Authorization.--In addition to amounts appropriated
pursuant to the authorization provided in section 221(b) of
Article II of Title Two of the U.S.-FSM Compact and the U.S.-
RMI Compact, there are hereby authorized to be appropriated
to the Secretary of the Interior such sums as may be
necessary to reimburse designated health care providers for
qualifying health care costs for medical debt referral claims
for health care services furnished before October 1, 2003.
(B) Designated health care providers.--For purposes of
subparagraph (A), the term ``designated health care
provider'' means an institutional provider of health care
services (such as a public or private hospital) located in
Hawaii, Guam, the Commonwealth of the Northern Mariana
Islands, or American Samoa.
(C) Qualifying health care costs.--For purposes of
subparagraph (A), the term ``qualifying health care costs''
means costs that the Secretary determines are incurred by a
designated health care provider for health care services
furnished in Hawaii, Guam, the Commonwealth of the Northern
Mariana Islands, and American Samoa (as the case may be) to a
citizen of the Republic of the Marshall Islands, the
Federated States of Micronesia, or the Republic of Palau
pursuant to medical referral programs in the Federated States
of Micronesia and the Republic of the Marshall Islands.
(9) 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, the
Republic of the Marshall Islands, and the Republic of Palau
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, and the Republic of Palau.
(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.
(f) Sense of Congress Concerning Funding of Public
Infrastructure.--It is the sense of Congress that--
(1) 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 in accordance with
the list of specific projects included in the plan described
in section 211(a)(6)(i) and for maintenance in accordance
with section 211(a)(6)(ii); and
(2) 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 used for infrastructure
improvement and maintenance in accordance with section
211(d).
(g) Foreign Loans.--The 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.
(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
[[Page H9855]]
thereafter, the President shall submit a report to Congress
regarding the Federated States of Micronesia and the Republic
of the Marshall Islands. The report shall include, at a
minimum, the following with regard 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
and program assistance.
(C) The status of economic policy reforms in the Federated
States of Micronesia and the Republic of the Marshall
Islands.
(D) The status of the efforts by the Federated States of
Micronesia and the Republic of the Marshall Islands to
attract foreign investment and to increase indigenous
business activity.
(E) Recommendations on ways to increase the effectiveness
of United States assistance.
(2) Review.--During the year of the fifth 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 shall consider the overall nature
and development of the U.S.-FSM and U.S.-RMI relationships.
In these reviews, the Government of the United States shall
consider the operating requirements of the Government of the
Federated States of Micronesia and the Govermment 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 the
findings resulting from the reviews, and any recommendations
for actions to respond to such findings, in the annual
reports to Congress for the years following the reviews.
(3) By the comptroller general.--Not later than the date
that is 3 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
paragraph (1) and 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 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
between the Government of the United States of America and
the Government of the Republic of the Marshall Islands, shall
be construed as though ``, 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'' was inserted after ``may by
regulations prescribe''.
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)(A) 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) It is the sense of Congress that the Secretary of State
and the Secretary of the Interior should be represented on
the Interagency Group.
(7)(A)(i) 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) It is the sense of Congress that at least one
appointee each should be designated from both the Department
of State and the Department of the Interior.
(iii) Section 213 of the U.S.-FSM Compact shall be
construed to read as though the phrase, ``and on the
implementation of economic policy reforms designed to
encourage private sector investment,'' were inserted after
``with particular focus on those parts of the plan dealing
with the sectors identified in subsection (a) of section
211''.
(B)(i) 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) It is the sense of Congress that at least one
appointee each should be designated from both the Department
of State and the Department of the Interior.
(iii) Section 214 of the U.S.-RMI Compact shall be
construed to read as though the phrase, ``and on the
implementation of economic policy reforms designed to
encourage private sector investment,'' 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) It is the sense of Congress that the Secretary of State
and the Secretary of the Interior shall assure that there are
personnel resources committed in the appropriate numbers and
locations to ensure effective oversight of United States
financial and program assistance.
(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 at least one
appointee each should be designated from both the Department
of State and the Department of the Interior.
(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 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. 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
[[Page H9856]]
be deemed to be preempted by this joint resolution.
(c) Judicial Training.--(1) In addition to amounts provided
under section 211(a)(4) of the U.S.-FSM Compact and the U.S.-
RMI Compact, the President shall annually provide $200,000 to
the Government of the Federated States of Micronesia and
$100,000 to the Government of the Republic of the Marshall
Islands to provide training for judges and officials of the
judiciary.
(2) 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 217 of the
U.S.-FSM Compact and section 218 of the U.S.-RMI Compact, to
carry out the purposes of this section.
(d) 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, except that, for purposes of an orderly
reduction of United States programs and services in the
Federated States of Micronesia, the Marshall Islands, and the
Republic of Palau, United States programs or services not
specifically authorized by the Compact of Free Association or
by other provisions of law may continue but, unless
reimbursed by the respective freely associated state, not in
excess of the following amounts:
(A) For fiscal year 1987, an amount not to exceed 75 per
centum of the total amount appropriated for such programs for
fiscal year 1986.
(B) For fiscal year 1988, an amount not to exceed 50 per
centum of the total amount appropriated for such programs for
fiscal year 1986.
(C) For fiscal year 1989, an amount not to exceed 25 per
centum of the total amount appropriated for such programs for
fiscal year 1986.
(e) 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.
(f) Noncompliance Sanctions; Actions Incompatible With
United States Authority.--The 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. The 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.
(g) 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) The Government of the United States 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 eligible
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.) on the same basis that such
grants continue to be available to institutions and students
in the United States.
(B) Supplemental education grants.--
(i) In general.--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.), part B of the
Individuals with Disabilities Education Act (20 U.S.C. 1411
et seq.), title I of the Workforce Investment Act of 1998 (29
U.S.C. 2801 et seq.), 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.), and the Head Start Act (42 U.S.C. 9831
et seq.), there are authorized to be appropriated to the
Secretary of Education for supplemental education grants to
the Federated States of Micronesia and the Republic of the
Marshall Islands the following amounts:
(I) $13,994,592 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 2006 through 2023.
(II) $6,705,408 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 2006 through 2023.
(ii) Fiscal procedures.--Assistance pursuant to this
subparagraph shall be disbursed and monitored in accordance
with the respective Fiscal Procedures Agreement referred to
in section 462(b)(4) of the U.S.-FSM Compact and section
462(b)(4) of the U.S.-RMI Compact.
(iii) Formula education grants.--For fiscal years 2005
through 2023, except as provided in clause (i), 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.
(iv) 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 under the provisions of law specified in
clause (i) and to receive grants under the programs described
in clause (iii).
(C) Competitive education 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
to the extent that such grants continue to be available to
State and local governments in the United States.
(D) The Federal Emergency Management Agency, in the
following manner: Paragraph (6) of section 221(a) of the
U.S.-FSM Compact and paragraph (5) of section 221(a) of the
U.S.-RMI Compact shall each be construed and applied as if
each provision reads as follows: ``The Department of Homeland
Security, Federal Emergency Management Agency disaster
assistance programs and public assistance programs for public
and private non-profit infrastructure and programs provided
by the United States Agency for International Development,
Office of Foreign Disaster Assistance, at levels equivalent
to those available on the day preceding the effective date of
the Compacts, to remain available until the later of--
(i) the 10-year period beginning on the date of enactment
of the Compacts; or
(ii) the date on which the Disaster Assistance Emergency
Fund referred to in section 211(d) of the U.S.-FSM Compact
and section 211(e) of the U.S.-RMI Compact attains a balance
of $4,000,000.
(E) The Legal Services Corporation.
(F) The Public Health Service.
(G) 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. 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.
(h) 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
[[Page H9857]]
and programs available to such land-grant institutions.
(i) 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.
(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 USDA Resource
Conservation and Development Program, 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 and the Government of the
Republic of the Marshall Islands, 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 and Hansen's Disease.
The Secretary of the Interior shall assist the Government of
the Federated States of Micronesia and the Government of the
Republic of the Marshall Islands 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 the Congress of the United States regarding the
proper interpretation of the international agreement.
(p) Inflation Adjustment.--As of Fiscal Year 2015, if
United States Gross Domestic Product Implicit Price Deflator
average for Fiscal Years 2009 through 2014 is greater than
the 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 and paragraph 5 of
Article II of the U.S.-FSM Fiscal Procedures Agreement and
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.
(q) Armed Services Vocational Aptitude Battery Testing.--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 United States Armed Forces, it is the
sense of Congress that, to facilitate eligibility of
Federated States of Micronesia and Republic of the Marshall
Islands 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 Federated States of
Micronesia and the Republic of the Marshall Islands to the
extent such programs are available to Department of Defense
Dependent Schools located in foreign jurisdictions.
(r) Establishment of Trust Funds; Expedition of Process.--
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 provide for the establishment of a
trust fund. Such trust fund may be established by (1)
creating a new legal entity to constitute the trust fund or
(2) 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. For the purpose of
expediting the commencement of operations of a trust fund
under either Trust Fund Agreement, such 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 such existing legal entity is party.
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 trust
funds or other legal entities 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 such contracts
will ultimately be assumed by and assigned to trust funds
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.
The provisions of chapter 11 of title 18, United States
Code, shall apply in full to any individual who has served as
the United
[[Page H9858]]
States negotiator of amendments to the Compact or its
subsidiary agreements or of related agreements or who is or
was an officer or employee of the Office in the Department of
State responsible for negotiating amendments to the Compact
or its subsidiary agreements or who is or was assigned or
detailed to that Office or who served on the interagency
group coordinating United States policy on the Compact
negotiations.
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, and the
Rural Utilities Services (formerly Rural Electrification
Administration) 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 million for the Federated States of Micronesia
and $20 million 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 subsection 111 of that resolution not have been
appropriated, such amount not yet appropriated may be
appropriated, without regard to divisions between amounts
authorized in subsection 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 effect
occurring during the initial fifteen-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 money in the Treasury not
otherwise appropriated, to remain available until expended,
such sums as are necessary to carry out the purposes of
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; 5 U.S.C. 3101 note) 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.--
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.
[[Page H9859]]
(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 in, 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:
[[Page H9860]]
(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
[[Page H9861]]
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 courts 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
[[Page H9862]]
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
[[Page H9863]]
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
[[Page H9864]]
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
[[Page H9865]]
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.
[[Page H9866]]
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
[[Page H9867]]
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
[[Page H9868]]
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
[[Page H9869]]
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) For the Government of the United States of
ASigned (May 14, 2003) For the Government of the Federated States of
Micronesia:
(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
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.
[[Page H9870]]
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 in, 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,
[[Page H9871]]
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
[[Page H9872]]
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 courts 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
the 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
[[Page H9873]]
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
[[Page H9874]]
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
[[Page H9875]]
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
[[Page H9876]]
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
[[Page H9877]]
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
[[Page H9878]]
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:
(5) petitions to the Government of the United States for
redress; or
(6) 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
[[Page H9879]]
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
[[Page H9880]]
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
[[Page H9881]]
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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Iowa (Mr. Leach) and the gentleman from American Samoa (Mr.
Faleomavaega) each will control 20 minutes.
The Chair recognizes the gentleman from Iowa (Mr. Leach).
General Leave
Mr. LEACH. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on this joint resolution.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Iowa?
There was no objection.
Mr. LEACH. Madam Speaker, I yield myself such time as I may consume.
I rise today to present to the House joint resolution 63, legislation
that reauthorizes the Compacts of Free Association with the Federated
States of Micronesia and the Republic of the Marshall Islands.
Because of the unique relationship between the United States and the
Freely Associated States, the legislation before us today involves an
extraordinary array of Federal programs, agencies, and policies.
{time} 1700
As a consequence, this joint resolution is the product of intensive
bipartisan consultations between a panoply of different committees of
jurisdictions, all of which have contributed to making this a
compelling legislative product.
In this regard, I would like to thank, in particular, the leadership
of the chairman of the Committee on International Relations, the
gentleman from Illinois (Mr. Hyde) and our ranking member, the
gentleman from California (Mr. Lantos), as well as the distinguished
ranking member of the Committee on International Relations Subcommittee
on Asia and the Pacific, the gentleman from American Samoa (Mr.
Faleomavaega) whose expertise in island affairs has been invaluable to
this Member and to our entire committee.
Let me also acknowledge the exceptional leadership of the Committee
on Resources, specifically the chairman, the gentleman from California
(Mr. Pombo) and the ranking member, the gentleman from West Virginia
(Mr. Rahall) and their staff for working so closely with us to ensure
that the amended compacts would not only be considered on an
expeditious basis, but enjoy the support of Members as well as the
administration and the Freely Associated States.
We also are appreciative of the prompt consideration of this bill by
the Committee on the Judiciary, as well as the input of the Committee
on Ways and Means.
In addition, we are most appreciative of the cooperation of the
Committee on Education and the Workforce, as well as the Committee on
Appropriations working closely with us on education funding issues of
keen interest and concern to many Members as well as the people of the
FSM and RMI.
Madam Speaker, here I note that under general leave, the gentleman
from Illinois (Mr. Hyde) intends to insert into the record a letter to
the Committee on International Relations from the Subcommittee on
Appropriations for Labor, Health, and Human Services regarding funding
for certain supplemental education programs as well as an exchange of
letters confirming certain understandings on this joint resolution with
the Committee on Ways and Means.
Madam Chairman, as my colleagues may be aware, the economic
assistance provisions of the current Compact with Micronesia and the
Marshall Islands expired in 2001, but were extended for 2 years while
the United States renegotiated the expiring provisions with these
island countries, also known as the Freely Associated States.
H.J. Res. 63, which is before us, is the authorizing and implementing
legislation for the Amended Compacts of Free Association. Unless this
resolution becomes law, critical portions of the original Compact of
Free Association will expire with serious consequences for those
nations and for United States' interests in the Pacific.
By background, the United States has shared a uniquely close and
mutually beneficial relationship with the people of the Marshall
Islands, as well as Micronesia, for the past half-century. For nearly
40 years after the Second World War, the United States administered
both islands as United Nations Trust Territories. In 1986, Micronesia
and the Marshall Islands chose to become sovereign states and entered
into a Compact of Free Association with the United States. The Compact
was intended to ensure self-government for the new island nations, to
assist them in their economic development towards self-sufficiency, and
to advance mutual security objectives.
It is my strong view that the interests of the people of the U.S. and
these specific islands have been well-served by the Compact. Our former
Trust Territories have emerged as sovereign democracies; America's
strategic interest in the Western Pacific has been protected; and the
bonds of friendship forged during World War II have only strengthened
with the passage of time. Indeed, a significant number of Compact
citizens have served honorably in the United States Armed Forces,
including in the war on Iraq.
Among other things H.J. Res. 63: one, secures expiring U.S. defense
interests and extends U.S. access to the geographically unique
Kwajalein Atoll Range, the key U.S. missile and missile defense testing
site for up to an additional 70 years; two, it continues U.S.
assistance to the FSM and RMI for 20 years, but fundamentally
restructures the way it is provided to increase fiscal accountability
and move it towards budgetary self-sufficiency; three, it prepares for
the end of U.S. grant assistance in 2023 by capitalizing a U.S.-
controlled trust fund for each nation; and, four, it modifies the
unique U.S. immigration status enjoyed by FSM and RMI citizens, to
address concerns primarily related to the United States homeland
security.
With respect to FEMA, the bill before us provides Compact countries
continued access to FEMA programs through 2013, including essential
public infrastructure rehabilitation programs. The Office of Foreign
Disaster Assistance, which is part of U.S. Agency for International
Development, is also authorized to provide emergency assistance to the
FAS.
In an agreement reached with the Committee on Education and the
Workforce H.J. Res. 63 would continue student eligibility under the
Pell Grant program of the Higher Education Act, continue institution
eligibility for certain competitive grant programs administered by the
Secretary of Education, and create a new discretionary grant program
for education in lieu of receipt of several current discretionary
domestic education programs.
This amount of roughly $20 million annually is in addition to the
grant assistance otherwise provided through
[[Page H9882]]
the Compact and would replace current Federal programs such as Head
Start, Special Education, and others.
Finally, let me just conclude by thanking Jamie McCormick and Douglas
Anderson, counsels to the Subcommittee on Asia and Pacific for their
exceptional assistance to me and the committee in helping to shepherd
this complex measure through the legislative process.
Again, before yielding to my distinguished friend, the gentleman from
American Samoa (Mr. Faleomavaega), let me stress to the House what an
honor it has been to serve with him and what a great addition his
judgment has made to the committee and to the Congress on this
particular issue, as well as so many others.
Madam Speaker, I reserve the balance of my time.
Mr. FALEOMAVAEGA. Madam Speaker, I yield myself such time as I may
consume.
(Mr. FALEOMAVAEGA asked and was given permission to revise and extend
his remarks.)
Mr. FALEOMAVAEGA. Madam Speaker, I would like to extend my gratitude
to the chairman of the Committee on International Relations, the
gentleman from Illinois (Mr. Hyde), and the senior ranking member of
the Committee on International Relations, the gentleman from California
(Mr. Lantos), my good friend, the chairman of the Committee on
Resources, the gentleman from California (Mr. Pombo), and our senior
ranking member of the Committee on Resources, the gentleman from West
Virginia (Mr. Rahall), and the chairman of Committee on International
Relations Subcommittee on Asia and the Pacific, the gentleman from Iowa
(Mr. Leach), my good friend, for working so diligently these past
several months to address some of the very important concerns raised by
the leaders of the Republic of the Marshall Islands and the Federated
States of Micronesia as it relates to the proposed Compact of Free
Association or H.J. Res. 63.
Madam Speaker, the Compacts of Free Association commenced in 1986
between the Federated States of Micronesia and the Republic of the
Marshall Islands and the United States. In brief, the United States
agrees to provide Federal funding to the FSM and the RMI and, in turn,
both agree to provide the United States with certain defense rights,
now including use of 11 defense sites on Kwajalein Atoll, where the
U.S. Department of Defense has established a multibillion dollar
antiballistic missile testing facility.
In October 2001, portions of the Compact expired and representatives
from the FSM, the RMI, and the Department of the Interior began
negotiating an extension of these provisions, including also the
Department of State. Earlier this year, the Department of the Interior
sent Congress a negotiated product to be considered as a
reauthorization of the Compact of Free Association. However, key
provisions, including the funding of the Pell Grants and FEMA
assistance, were excluded from the agreement. And over the last several
months, my colleagues and I have been working closely with
representatives from both the FSM and RMI to address these concerns.
Madam Speaker, the good people of the Federated States of Micronesia
and the Republic of the Marshall Islands are in need of, and indeed
deserve, U.S. support in assistance in building local capacity. As my
colleagues know, education is invaluable to building self-sufficiency
and local capacity, and, ultimately, will contribute to bolstering the
economy of these developing nations. This is why I am pleased that the
bill before us today now provides the Freely Associated States with
Pell Grant assistance, hopefully, and also to recognize the importance
of FEMA assistance to these islands.
The truth is, Madam Speaker, the Freely Associated States have made
many sacrifices and contributions on behalf of the United States. In
fact, the U.S. used the Marshall Islands as a nuclear testing ground
and detonated more than 67 nuclear bombs, including the first hydrogen
bomb which was one thousand times more powerful than the bombs dropped
in Hiroshima and Nagasaki during World War II. The results were, and
continue to be, devastating to the residents of the Marshall Islands.
As a Pacific Islander, I am pleased that H.J. Res. 63 acknowledges
the contributions and sacrifices made by the Federated Associated
States and also addresses the needs and concerns of the people of
Federated States of Micronesia and the Republic of the Marshall
Islands. I am also pleased that my colleagues have worked closely with
me to make sure that American Samoa's tuna industry was protected in
the process of these negotiations.
The outcome of H.J. Res. 63 will determine our relationship with the
FSM and RMI for the next 20 years and will also affect American Samoa's
tuna industry for generations to come.
With the approval of these Compacts, the United States will further
solidify our relationship with these Western Pacific nations, both of
which are close allies, and make an ongoing contribution to America's
national defense.
To understand the importance of renewing the Compacts we must
remember our Nation's history in the region. During World War II,
American soldiers liberated the Pacific island by island in brutal and
bloody battles. After the war, the United States administered
Micronesia, and we have maintained a vitally important military
installation on Kwajalein Atoll.
In the 1940s and 1950s, the United States conducted both underwater
and atmospheric nuclear tests in the Marshalls. And as I indicated
earlier, some 67 nuclear detonations were held during that period. I
remember distinctly, in 1954, when we detonated the first hydrogen
bomb, I indicated earlier that that nuclear detonation was a thousand
times more powerful than the nuclear bombs that we dropped in Hiroshima
and Nagasaki.
One of the serious issues that we still have not properly addressed,
and, hopefully, in the coming months, that we will address seriously,
the needs of some several hundred Marshallese men, women, and children
who were directly exposed to nuclear contamination at the time of
detonation of this hydrogen bomb in the 1950s.
Madam Speaker, since the independence of the Marshalls and Micronesia
in 1986, the ties between our nations have grown even stronger. When
Congress approved the Compact of Free Association in 1986, we received
a good bargain. Funds would flow to the island nations in return for a
``strategic denial'' and a ``defense veto.'' The Kwajalein Army Base is
vitally important to America's missile tests and as a listening post to
the world.
Hundreds of Marshallese and Micronesians are currently defending
American interests even in Iraq. I believe approximately 1,000 of our
fellow Micronesians are in the military. Several have sacrificed their
lives in the war in Iraq, even at this point in time as I speak. Just
the other day Mr. Hilario Bermanis, a Micronesian, became an American
citizen after losing a left arm and both legs while serving in the Army
in Iraq.
While we undoubtedly furthered our national security interests with
approval of the Compact, the United States insufficiently monitored
expenditure of funds and did little to promote economic development in
the islands.
The Compacts before the House today ensure that funds will be better
spent in the future, will promote sound economic development and will
focus on education and health care. They also establish trust funds for
both nations to ensure that they can become self-sufficient in 20
years.
Madam Speaker, H.J. Res. 63 promotes our Nation's national security
interests and furthers our relationship with the Marshalls and
Micronesia. This is a bipartisan effort. And, again, I extend my
gratitude and appreciation to the gentleman from Iowa (Mr. Leach), my
good friend, for his tremendous support and leadership in bringing this
piece of legislation to the floor.
Madam Speaker, I yield such time she might consume to the gentlewoman
from Guam (Ms. Bordallo), my good friend.
(Ms. BORDALLO asked and was given permission to revise and extend her
remarks.)
Ms. BORDALLO. Madam Speaker, 56 years ago the United States assumed
an international obligation to protect and promote the development of
two island groups that straddle much of the vast Pacific Ocean: The
Federated States of Micronesia and the Republic of the Marshall
Islands.
[[Page H9883]]
{time} 1715
As strategic battle grounds in World War II, these islands were
liberated from enemy occupation by U.S. forces. In the aftermath of
that pivotal period in world history, they emerged from a League of
Nations mandate administered by Japan to become a United Nations' Trust
Territory with the United States as trustee. Over the next 40 years
their socio-economic status improved and their developing economies
would begin to take root.
Then, in 1986, Congress passed, and President Reagan signed, a
Compact of Free Association with them. The compact allowed for a new
relationship to be cultivated, and it afforded the FSM and the RMI the
ability to become sovereign nation states in their own right. In the
years since, they have been welcome to the international table in their
own name and their alliance with the United States today could not be
stronger.
While other nations who receive foreign aid consistently oppose us in
the United Nations, the FSM and the RMI have been among our most
steadfast of allies. Seventeen years after the original agreement, we
are here today, Madam Speaker, to renew the compact. It is in the
spirit of friendship that we renew an agreement that seeks to honor and
build upon the benefits our respective countries have derived from the
original compact.
So I rise today to support H.J. Res. 63 for four principal reasons:
first, because it advances U.S. defense interests by providing a 50-
year lease extension for U.S. access to Kwajalein Atoll in the RMI,
home of the Ronald Reagan Missile Testing Facility and grants the U.S.
the right of strategic denial.
Second, because it reaffirms the right of FSM and RMI citizens to
migrate freely to the United States for work, education, and residence
and improves the means by which the Federal Government addresses the
impact of migration in affected U.S. jurisdictions, including Guam, the
Commonwealth of the Northern Mariana Islands, and the State of Hawaii.
Third, because it continues for the next 20 years critical financial
assistance to facilitate capacity-building and self-sufficiency in the
FSM and the RMI while ensuring greater accountability oversight and
effectiveness, as well as it be continuous Pell grant eligibility.
Finally, and most importantly, because it fulfills our moral
obligation to the people of Micronesia and the Marshalls.
Guam is the closest American neighbor to the FSM and RMI, and we have
seen the progress that they have made under the original compact. Guam
has welcomed and embraced those FSM and RMI citizens who have availed
themselves of their compact-provided right to migrate freely to the
United States for the pursuit out of educational and other
opportunities. This migration has come at a financial cost to the
Government of Guam. As in many cases, migrating FSM and RMI citizens do
not directly contribute to the local revenue base that sustains the
education, the health, housing and other social services which they
have sought.
Guam has been impacted significantly more than any other
jurisdictions by this federally negotiated and internationally
implemented agreement. As impact costs have increased, Guam has sought
greater and improved assistance from the Federal Government. And that
is why I am pleased that H.J. Res. 63 includes provisions based upon
legislation that I introduced, namely H.R. 2522, and H.R. 2716 to
address compact impact needs.
Madam Speaker, I want to go on record this afternoon to commend the
gentleman from Illinois (Mr. Hyde), the gentleman from Iowa (Mr.
Leach), the gentleman from California (Mr. Lantos), and my friend, the
gentleman from American Samoa (Mr. Faleomavaega), for shepherding this
legislation through this challenging process. I also want to express my
gratitude to our chairman of the Committee on Resources, the gentleman
from California (Mr. Pombo), and the ranking member, the gentleman from
West Virginia (Mr. Rahall), for their bipartisan leadership in
addressing those matters important to myself and other members of the
Committee on Resources. I also want to thank all of the staff in all
the different offices who worked so hard so that we could realize this
day today.
Madam Speaker, I urge my colleagues to vote for H.J. Res. 63, vote
``yes'' for our national defense, vote ``yes'' to fulfill our moral
obligations to the people of the Pacific, vote ``yes'' to help develop
their economies, and vote ``yes'' to advance our relationship in this
new century.
Guam is the closest American neighbor to the FSM and the RMI, and we
have seen the progress that they have made under the original Compact.
Guam has welcomed and embraced those FSM and RMI citizens who have
availed themselves of their Compact-provided right to migrate freely to
the United States for the pursuit of educational and other
opportunities. This migration has come at a financial cost to the
Government of Guam, as in many cases, migrating FSM and RMI citizens do
not directly contribute to the local revenue base that sustains the
educational, health, and other social services on Guam. Guam has been
impacted more significantly than any other jurisdiction by this
Federally-negotiated and internationally-implemented agreement. As
impact costs have increased, Guam has sought greater and improved
assistance from the Federal Government. Congress has responded with
some assistance, termed Compact-impact aid, and appropriated such aid
from time to time over the past seventeen years in varying amounts, but
never at levels to cover the costs actually realized or with the
consistency to adequately help shoulder the adverse financial
consequences. This is why I strongly advocated for amending the Compact
law (Public Law 99-239) during this reauthorization process to ensure
the immigration policy goes hand-in-hand with an adequate reimbursement
policy for Compact-impact costs.
Among the first pieces of legislation I introduced as a new Member of
Congress was H.R. 2522, a bill that would authorize the reduction,
release, or waiving of amounts owed by the Government of Guam to the
United States to offset past unreimbursed Compact-impact expenses, and
H.R. 2716, a bill that proposes new methods and more reliable means to
provide for adequate Compact-impact aid in the future. H.R. 2522 was
heard in the Resources Committee in July, and the Governor of Guam,
Felix Camacho, and the Speaker of the Guam Legislature, Ben Pangelinan,
traveled to Washington, D.C. to testify about the Compact-impact costs
in Guam.
In enacting the original Compact law in 1986, Congress stated that
these adverse consequences would be reimbursed by Compact-impact aid.
The General Accounting Office and a previous report by Ernst and Young
indicate that the unreimbursed costs accrued to date in Guam are
approximately $187 million. I am pleased that H.R. 2522, in a modified
form, has been agreed to by the Resources Committee and has been
incorporated into H.J. Res. 63. Section 104(e)(1) of this legislation
would provide for a process by which the President could use debt
relief as a means to reconcile past unreimbursed impact expenses for
Guam and the Commonwealth of the Northern Mariana Islands.
I believe that such authority could be exercised by the President in
the public interest. One of the examples of debts owed by Guam which
was brought to my attention is the amounts owed by the Guam Telephone
Authority (GTA) for infrastructure improvements to Guam's telephone
system in the 1970s and 1980s. GTA currently owes $105 million to the
Rural Utilities Service. This debt has been an impediment to recent
efforts by Guam to privatize the telephone authority, which now has the
distinction of being the last government-owned telephone utility in the
nation. The existing debt has caused potential buyers to avoid GTA due
to its debt service ratio of 0.70 to 1, a ratio well below the 1 to 1
ratio preferred by investors. Furthermore, the annual debt service
costs for GTA's loans make it difficult to attract buyers.
The reforms passed by Congress in the 1996 Telecommunications Reform
Act eroded GTA's ability to compete in the marketplace. Telephone
deregulation opened up the industry to competition, and in Guam, GTA
was constrained by local and federal laws from competing while losing
its own advantages as a local monopoly.
Debt relief for GTA to offset unreimbursed impact expenses would make
it possible to privatize the utility and to end further Federal
subsidies. The Federal investment in infrastructure has already paid
off in debt service payments by Guam and in minimal Federal
reconstruction costs for GTA after typhoons in the past two decades.
Moreover, without the debt relief that Guam seeks, it may be more
difficult to privatize the utility because the net return from the sale
of GTA may not be substantial enough to make it an attractive option.
Due to the economic recession in Guam, some opponents of privatization
have already likened this effort to unloading GTA at fire sale prices
and have argued that the Guam taxpayers have invested too much in this
utility to
[[Page H9884]]
let it go for too little, irrespective of the actual market value of
this depreciated telephone utility.
The authority for debt relief contained within H.J. Res. 63 may be
prudently exercised by the President to set appropriate conditions for
the relief in order to make the previous Federal investment and the
Federal relief sought worthwhile. In this regard, the relief for GTA's
debts could be made contingent on the Government of Guam's commitment
to privatize the utility and use the proceeds from the sale of GTA for
other capital improvement needs on Guam such as schools, water and
power infrastructure, and health facilities. The debt relief
contemplated by this provision is not intended to exacerbate the
economic situation of Guam rather it is intended to promote good public
policy and stimulate the economy.
Guam has suffered from a series of typhoons dating back to 1997. Any
amounts owed by the Government of Guam to the Federal Government for
Federal Emergency Management Agency (FEMA) assistance can be considered
an offset for unreimbursed Compact-impact costs. In addition, the
Government of Guam continues to request a reconciliation of FEMA
assistance for Supertyphoon Paka, which struck Guam in December 1997,
and for which the Government of Guam believes a significant amount of
money is owed to cover debris collection, removal and disposal work in
the aftermath of the storm.
Examples of other debts that could be retired or reduced to offset
unreimbursed impact expenses for Guam are the $9 million owed by the
Guam Waterworks Authority to the Department of the Navy for water
consumption and $3 million owed by the Guam Community College to the
Department of Education for construction of a student housing facility.
Beyond this reconciliation provision, I am also pleased that the
Resources Committee agreed to provisions contained within H.R. 2716,
and incorporated them into H.J. Res. 63, so that for the next twenty
years we avoid the great disparity between impact costs and realized
reimbursement. Providing for $30 million in annual mandatory Compact-
impact aid for the affected jurisdictions is a significant improvement
over the current mechanism for Compact-impact reimbursement. Although I
continue to question the Federal obligation to the affected
jurisdictions, I am pleased that H.J. Res. 63 includes authorizing
language that would allow for additional Compact-impact aid, above and
beyond the $30 million, in future years to address reimbursement needs.
Further, to help Congress accurately assess actual Compact-impact
costs, I am pleased the Resources Committee restored a reporting
requirement. I am equally pleased the Resources Committee retained
referral authority for medical facilities of the Department of Defense.
Together, these provisions should set us on the right course for the
next twenty years.
My colleagues, Mr. Abercrombie, Mr. Case, Mr. Gallegly, Mr. Rehberg,
Mr. Acevedo-Vila, Mr. Grijalva, and Mr. Pallone, along with Mr.
Faleomavaega, were also there for Guam throughout this process and
helped me to ensure the Guam Compact-impact reconciliation provision
was included. I thank them as well for their support.
Mr. FALEOMAVAEGA. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, as I do not have any further speakers, I would like to
express a few sentiments. It is very easy for those of us managing
pieces of legislation and somewhat proclaiming our own sense of
expertise by commenting or making speeches. As my good friend, the
gentleman from Iowa (Mr. Leach), had given an indication earlier, there
has been tremendous support from members of the professional staff of
the two committees who have done an outstanding job in helping putting
this piece of legislation together. Again, I would be remiss if I do
not express my sense of appreciation to Mr. Doug Anderson and also Mr.
Jamie McCormick on the majority side on the Committee on International
Relations, as well as Mr. Peter Yeo and Dr. Lisa Williams, and also Dr.
Bob King. Also on the Committee on Resources we have Mr. Tony Babauta
and Mr. Chris Fluhr of the Committee on Resources, and also Mr. Chris
Foster from the gentleman from California's (Mr. Pombo) office, and the
outstanding contributions they have made as professional members of
both committees in putting this legislation and certainly giving us
positive advice now that we find ourselves agreeing to some of the
important elements of this bill that is now before us.
We sincerely hope that our colleagues will lend their support to this
important legislation.
Madam Speaker, I yield back the balance of my time.
Mr. LEACH. Madam Speaker, I yield myself such time as I may consume.
First, I want to concur in the sentiments of my good friend, the
gentleman from American Samoa (Mr. Faleomavaega) with regard to the
professionalism of the staff on Capitol Hill.
Prior to yielding back my time, I would like to specifically
recognize the exceptional contribution of the chairman of the Committee
on Resources, the gentleman from California (Mr. Pombo). The
cooperation of his committee was crucial to our putting together this
resolution.
Madam Speaker, finally, consideration of this resolution is
historically significant for the Pacific region. It provides a moment
for the people of the United States and the Freely Associated States to
celebrate our warm friendship and look to an enhanced and mutually
respectful relationship.
Mr. FALEOMAVAEGA. Madam Speaker, will the gentleman yield?
Mr. LEACH. I yield to the gentleman from American Samoa.
Mr. FALEOMAVAEGA. Madam Speaker, I also want to note to the benefit
of our colleagues that just this last weekend our President visited the
State of Hawaii and he had an opportunity to meet with the leaders of
these island nations at the East-West Center and the concerns expressed
collectively by these leaders regarding homeland security. The security
issues now of terrorism and issues of this nature are vitally important
to this region of the world; and, again, this is all in concert with
the efforts that we are making to make sure that we continue to
establish good relations with our friends from Micronesia. I again
thank my good friend, the gentleman from Iowa (Mr. Leach), for his
tremendous support and leadership in bringing this legislation to the
floor, again, sincerely hoping our colleagues will support this
legislation.
Mr. LEACH. Reclaiming my time, Madam Speaker, let me stress again the
importance of this resolution. It has strong bipartisan support, I urge
our colleagues to give this their unanimous support. This renewed
compact is critical to the region.
Ms. WATSON. Madam Speaker, President Clinton gave me the privilege to
represent the American people as Ambassador to the Federated States of
Micronesia. I have a deep respect for the Island nations, and I am
pleased that we have passed the new compact legislation out of the
House.
Although most of the contentious issues in the compact have been
addressed, the funding allocated for education concerns me. The RMI and
FSM children have only just begun to benefit from the establishment of
an integrated education system. I urge Congress to monitor education
appropriations for the compact and stay intent on our obligations.
In my former profession of teaching I have witnessed the impact of
early structured education. Young students are much better equipped to
enter the educational system when they are exposed to education at an
early age. The educational funding that Chairman Regula has offered to
support is critical to keep effective programs in place.
I strongly support those provisions in this compact that provide for
continued Pell Grant eligibility for the FAS. It will bolster the
ability of the FAS to cultivate education. The elimination of Pell
Grant assistance would have decimated the college system in the FAS
altogether. A large portion of the operating funds for the College of
Micronesia are obtained through Pell Grants.
One other important area that I would like to point out is the
reinstatement of FEMA assistance. It has been placed back into the
Compact for infrastructure purposes and major catastrophes. USAID is
not equipped to deal with all of the problems that arise on small
islands nor do they have the ready response to help in a timely
fashion. As we move forward with our unique relationship with the FAS I
hope the United States Congress will be supportive and receptive to the
needs of our friends.
In conclusion, with a few minor adjustments, this Congress will
produce long lasting legislation to be proud of. I urge my colleagues
to understand the importance of the FAS. I support this bill and look
to endorse the final product as the other body considers the Compact.
Mr. BEREUTER. Madam Speaker, this Member rises in strong support for
H.J. Res. 63, the Compacts of Free Association Amendments Act of 2003.
Additionally, this Member would like to extend thanks to the very
distinguished gentleman from Iowa, the Chairman of the International
Relations Subcommittee on Asia and the Pacific, (Mr. Leach) for his
efforts to conduct oversight of the Compact negotiations and ultimately
to bring this measure
[[Page H9885]]
to the Floor today. Both the gentleman and his staff on the
Subcommittee are to be commended for their vigilance. Furthermore, this
Member would like to thank the distinguished gentleman from California
(Mr. Pombo), the Chairman of the Resources Committee, which also has
jurisdiction over the Compacts of Free Association for his efforts in
guiding this resolution through the legislative process.
When this Member served as Chairman of the International Relations
Subcommittee on Asia and the Pacific, he requested a Government
Accounting Office (GAO) investigation into the use of Compact of Free
Association funds. Indeed, this Member traveled to the Republic of the
Marshall Islands (RMI) and the Federated States of Micronesia (FSM)
many years ago and was disturbed by the conditions of schools, roads,
and public buildings despite the infusion of U.S. aid. Unfortunately,
the GAO reports certainly corroborated this Member's grave concerns
about pervasive fraud, corruption, and waste of funds by the RMI
Government and the poor planning and construction of infrastructure in
both the RMI and the FSM.
This resolution would approve the amended Compact of Free
Association, the agreement through which the United States provides
assistance to the people of the RMI and the FSM. Overall, the revised
Compact addresses many of the concerns which this Member has expressed
for many years about this assistance and development programs for these
two island groups which are two of the four Trust Territories for which
the United States assumed responsibility after World War II. Of course,
Congress must continue its oversight role to ensure that the people of
RMI and FSM get the aid and services which they deserve and that the
funds are not diverted for misuse by government officials in those
countries.
In closing, Madam Speaker, this Member encourages his colleagues to
vote for H.J. Res. 63.
Mr. BOEHNER. Madam Speaker, I rise in support of H.J. Res. 63 which
will renew the Compact of Free Association with both the Federated
States of Micronesia (FSM) and the Republic of the Marshall Islands
(RMI). I am pleased that Chairman Hyde and Chairman Pombo worked with
me to find a solution to continue funding for education programs in the
Federated States of Micronesia and the Republic of the Marshall
Islands.
H.J. Res. 63 provides a new supplemental education discretionary
grant for the FSM and the RMI to receive funding from one source. This
supplemental education grant provides funds for the FSM and RMI to use
for education programs under Title 1 of the Elementary and Secondary
Education Act, part B of IDEA, Title 1 of the Workforce Investment Act,
the Adult Education and Family Literacy Act, Title 1 of the Carl D.
Perkins Vocational and Technical Education Act and the Head Start Act.
These funds will be subject to the Fiscal Procedures Act negotiated by
the U.S. government and the FSM and the RMI. Specifically, the U.S.
Department of Education, as a member of the Joint Economic Management
Team, will ensure that academic performance measures are developed for
standards and assessments appropriate for the FSM and RMI in order to
increase academic achievement for the children receiving educational
services under this grant. H.J. Res. 63 also continues eligibility for
the FSM and RMI under the Pell Grant program and continues to allow the
FSM and RMI to compete for competitive grants at the U.S. Department of
Education.
Madam Speaker, I want to be clear. This new discretionary
supplemental education grant is the source, and only source, for funds
for education programs for the FSM and RMI. They are no longer eligible
to receive separate funding from any formula grant run by the
Department of Education, the Department of Labor or the Head Start Act
administered by the Department of Health and Human Services. In my
view, this new supplemental education grant is a signal that funds for
the FSM and RMI should be addressed within the Compact, rather than
through a disjointed system of domestic formula grants. The United
States owes an enormous debt to these nations and efforts to improve
their educational system should be a top priority.
I urge my colleagues to support this Compact.
Mr. SENSENBRENNER. Madam Speaker, H.J. Res. 63 amends the Compacts of
Free Association between the United States and the Federated States of
Micronesia and the Marshall Islands. The Compacts, agreed to in the
1980s, provide that the United States will support the new island
nations economically and that we can establish, by agreement, military
bases in their territories and foreclose access to the nations by
military personnel of third countries. As to the Marshall Islands, a
major subsidiary agreement allows the United States continued use of
the Kwajalein missile test range. Deputy Assistant Secretary of Defense
for Asian and Pacific Affairs Peter Brookes testified last year that
``it is in our best interest to maintain the full range of military
access, use, and security cooperation options and rights that the
Compact[s] provide[ ].''
The Compacts grant citizens of the Federated States of Micronesia and
the Marshall Islands the right to enter the U.S. without passports or
visas, as nonimmigrants and lawfully engage in occupations. In recent
years, the U.S. government has expressed a number of concerns regarding
these immigration provisions.
First, the ability of aliens claiming to be citizens of the two
nations without having to have passports is an open invitation for
abuse by terrorists. In addition, the government of the Marshall
Islands has in the past been found to have sold passports.
Second, some Americans have taken advantage of the ability of
islanders to enter the U.S. to bring in adopted children without having
to meet the requirements of the Immigration and Nationality Act
regarding foreign adoptions that are designed to safeguard the
interests of the adopted children and their biological parents.
Finally, labor recruiters who arrange jobs in the United States for
islanders have been abusing these unsophisticated workers, such as by
not revealing the real nature of the jobs to be performed and charging
prohibitive liquidated damages should the workers leave employment
prematurely.
The State Department utilized the looming expiration of the economic
assistance provisions of the Compacts to persuade the nations to agree
to needed modifications to the Compacts addressing these immigration
concerns and other matters. These changes are contained in H.J. Res.
63.
In order to address our security concerns, a number of changes have
been made including barring entry to the U.S. under the Compacts of
persons who were sold passports, limiting those naturalized citizens
who can enter the U.S. pursuant to the Compacts, and requiring
passports for entry to the U.S.
As to adoptions, any child who is coming to the U.S. pursuant to an
adoption outside the country or for the purpose of adoption in the
United States, is ineligible for admission as a nonimmigrant under the
Compacts. The child must be brought to the U.S. pursuant to the
applicable provisions of the Immigration and Nationality Act.
Separate agreements, which shall come into effect simultaneously with
the Compacts, shall incorporate minimum obligations that labor
recruiters will have to meet in order to protect Micronesians and
Marshall Islanders who are recruited for work in the U.S.
H.J. Res. 63 also includes a number of provisions within the claims,
courts, criminal law and administrative law jurisdiction of the
Committee. For instance, the Compacts are amended to provide that the
governments of the nations are immune from the jurisdiction of U.S.
courts and that the U.S. shall not be liable in their courts, and
federal agencies are authorized to settle and pay tort claims arising
from acts or omissions of their employees within the two nations.
As to criminal law jurisdiction, provisions of the amended Compacts
allow the United States to provide technical and training assistance to
the governments of the Federated States of Micronesia and the Republic
of the Marshall Islands. This assistance will facilitate the
development and enforcement of their respective laws and allow for
cooperation with the United States in the enforcement of U.S. laws. The
postal inspection of contraband, extradition of fugitives, and the
transfer of prisoners are among the mutual assistance in law
enforcement matters addressed by the Compact. These issues are
important not only in addressing the reality of the increased
translational nature of general crime, but also are vitally important
when confronting the issue of global terrorism.
H.J. Res. 63 contains numerous beneficial changes to the Compacts of
Free Association. I urge my colleagues to support this legislation.
Mr. RAHALL. Madam Speaker, I rise in support of H.J. Res. 63, the
Compacts of Free Association Amendments Act of 2003. These amendments
to the existing Compact, extends and refines the official relationship
between the United States and our friends and allies, the Republic of
the Marshall Islands (RMI) and the Federated States of Micronesia
(FSM).
For the next 20 years, we can only hope that these changes will
result in continuing economic opportunity, social development, and
improvements to the quality of life of these island nations as well as
serve the interests of the United States.
The RMI and FSM's contribution to our Nation's history is unique.
Beginning in the mid-1940s, after World War II, their people sacrificed
both land and culture to help preserve peace.
Then under U.S. Trusteeship, atolls in the RMI were used as sites to
test the effectiveness and power of U.S. nuclear weaponry. Islands
comprising the FSM and also the Republic of Palau became our ``line in
the sand''
[[Page H9886]]
in the middle of the Pacific Ocean from which we staved off the spread
of communism.
Though their role has largely gone unnoticed by the American public,
the relationship we have since established with them to become emerging
self-governing and self-sufficient democracies reflects how important
we view their contributions to our Nation.
Seventeen years have passed since the RMI and FSM became freely
associated with the United States. The relationship has been successful
and yet imperfect.
The Compact amendments we are considering today will not make the
relationship perfect, or guarantee success. There is no clear
legislative path to accomplish such goals. However, all the tools are
within this legislation for both the RMI and FSM to continue
developing, as well as for the United States to continue to foster
their growth.
H.J. Res. 63 preserves education opportunities, advances economic
activity, safeguards infrastructure investments, and adequately
addressed the consequences of immigration to Hawaii, Guam and the
Northern Marianas from the freely associated states.
In that regard, I want to make note of the great amount of work Neil
Abercrombie and Madeleine Bordallo put into this issue. With
justification, they should be proud of their work on behalf of Hawaii
and Guam as it relates to the matter of impact aid.
Let me state that this legislation is the product of bipartisan
support and multiple Committee collaboration. Bringing this legislation
to the floor would not have been possible without the leadership of
International Relations Chairman Henry Hyde and the Ranking Democrat
Tom Lantos, as well as Chairman Leach and our colleague from American
Samoa, from the Subcommittee on East Asia and the Pacific.
Finally, I also want to thank Resources Chairman Richard Pombo for
the bipartisan manner to which he worked with us on the Committee. His
willingness to address important Compact issues in a meaningful and
responsive manner gave us the opportunity to move this legislation
expeditiously.
I urge my colleagues to favorably pass H.J. Res. 63.
Mr. ABERCROMBIE. Madam Speaker, I would like to express my
wholehearted support for this legislation being considered today. For
the past 17 years, the United States has had a successful relationship
with the Freely Associated States (FAS). The Federated States of
Micronesia (FSM) and the Republic of the Marshall Islands (RMI) have
been able to transition from a United Nations trusteeship to sovereign
governments. At the same time, the United States has had its security
and defense interests in the Pacific fulfilled. H.J. Res. 63 will
improve this vital economic and military relationship by allowing our
nations to continue the successes in our agreement while helping to
resolve some of our differences.
One of the issues which required a resolution is the impact that the
Compacts of Free Association has had on U.S. areas in the Pacific. The
Compacts allow FSM and RMI citizens to freely enter the U.S. and its
territories to live, seek an education, obtain healthcare and find
employment. For the State of Hawaii alone, more than $32 million was
expended in 2002 in order to support Compact migrants and help ensure
their health and well-being. These costs have been borne by Hawaii
since the Compacts were first implemented in 1986. For the past
seventeen years, the state has provided Compact migrants with the care
and benefits that were promised to them by the first Compact, expending
more than $140 million. In that time, the federal government has
reimbursed a mere five percent of that amount. As a signatory to the
Compacts of Free Association, I believe it is the United States, not
the State of Hawaii that should bear its costs.
For the first time ever, the Administration recognized this hardship
and proposed a mandatory funding stream of $15 million a year for
Hawaii, Guam, the Commonwealth of the Northern Mariana Islands, and
American Samoa. H.J. Res. 63 has been amended to go even further to
address this vast shortcoming by increasing the mandatory
appropriations to $30 million a year. Although these funds will be
divided among the four jurisdictions, it will be the largest
compensation any of these jurisdictions has received to date. While
these funds will surely cover only a portion of the total impact cost,
its yearly distribution will undoubtedly have a great effect on the
state departments and agencies that have spent untold resources and
labor in providing for the compact migrants.
The legislation has also been amended to include many other
improvements. The inclusion of language authorizing discretionary
appropriations, the extension of Pell Grant eligibility, the inclusion
of a trigger for full inflation adjustment, and the restoration of
language authorizing compensation for health institutions are a few of
these changes. I am also gratified to see these provisions, as they
will help the Federated States of Micronesia and the Republic of the
Marshall Islands in their quest to become fully independent countries.
At this time I would also like to thank Chairman Richard Pombo,
Chairman Henry Hyde, Chairman Jim Nussle, and Chairman John Boehner for
all of their hard work in bringing this bill to the floor. Thanks to
their efforts, I have no doubt that our relationship with these Pacific
nations will continue to be productive and mutually beneficial. I urge
my colleagues to support this important measure.
Mr. HYDE. Madam Speaker, I submit for printing in the Congressional
Record the following correspondence concerning H.J. Res. 63: (1) an
exchange of letters between Chairman Thomas and myself; (2) a letter
from Chairman Regula to me; (3) a letter from Chairman Pombo to
Chairman Nussle; and (4) a letter from me to Chairman Nussle.
House of Representatives,
Committee on Ways and Means,
Washington, DC, September 24, 2003.
Hon. Henry J. Hyde,
Chairman, Committee on International Relations, Rayburn House
Office Building, Washington, DC.
Dear Chairman Hyde: I am writing concerning H.J. Res. 63,
the ``Compact of Free Association Amendments Act of 2003,''
which was referred to the Committees on International
Relations, Resources and Judiciary. I understand that a
short-term extension of the compacts may be included in a
Continuing Resolution to be considered by the House.
As you know, the Committee on Ways and Means has
jurisdiction over matters concerning trade. H.J. Res. 63,
which incorporates Article IV of the agreements with the
Federated States of Micronesia and the Republic of the
Marshall Islands, contains several provisions involving
tariffs and imports, which fall squarely within the
jurisdiction of the Committee on Ways and Means.
However, in order to expedite this legislation for floor
consideration, the Committee will forgo action on this bill.
This is being done with the understanding that it does not in
any way prejudice the Committee with respect to the
appointment of conferees or its jurisdictional prerogatives
on this or similar legislation.
I would appreciate your response to this letter, confirming
this understanding with respect to H.J. Res. 63, and would
ask that a copy of our exchange of letters on this matter be
included in the Congressional Record during floor
consideration.
Best regards,
Bill Thomas,
Chairman.
____
House of Representatives, Committee on International
Relations,
Washington, DC, September 24, 2003.
Hon. William M. Thomas,
Chairman, Committee on Ways and Means, House of
Representatives, Longworth House Office Building,
Washington, DC.
Dear Bill: Thank you for your letter concerning H.J. Res.
63, the ``Compact of Free Association Amendments Act of
2003'' which was referred to this Committee among others.
I concur with your statements concerning the jurisdiction
of the Ways and Means Committee over certain matters
contained in this legislation. H.J. Res. 63, which
incorporates Article IV of the agreements with the Federated
States of Micronesia and the Republic of the Marshall
Islands, contains several provisions involving tariffs and
imports, which fall squarely within the jurisdiction of the
Committee on Ways and Means. I appreciate your willingness to
forgo consideration of the bill.
I also understand that this action on your part does not in
any way prejudice your Committee with respect to the
appointment of conferees or its jurisdictional prerogatives
on this or similar legislation.
Sincerely,
Henry J. Hyde,
Chairman.
____
House of Representatives,
Washington, DC, October 27, 2003.
Hon. Henry Hyde,
Chairman, Committee on International Relations, House of
Representatives, Rayburn House Office Building,
Washington, DC.
Dear Chairman Hyde: This letter is to confirm the agreement
regarding H.J. Res. 63, ``Compact of Free Association
Amendments Act of 2003.'' I thank you for working with me on
amendments affecting education programs for the Federated
States of Micronesia and the Republic of the Marshall
Islands, specifically Section 105(g), Supplemental Education
Grants, as you have currently proposed to be included in your
Substitute during Floor consideration. In addition to you, I
very much appreciate the work and cooperation of Chairman
John Boehner, Chairman Jim Nussle, and Chairman Richard Pombo
in finding an excellent solution.
While eligibility under most domestic education programs
will terminate with ratification of this Compact Agreement,
your Substitute to H.J. Res. 63 would continue student
eligibility under the Pell Grant program of the Higher
Education Act of 1965, continue institutional eligibility for
certain competitive grant programs administered by the
Secretary of Education, and create a new discretionary grant
program for education in lieu of receipt of certain
discretionary domestic education programs.
[[Page H9887]]
As you know, the Subcommittee on Appropriations for Labor,
Health and Human Services, Education and Related Agencies has
consistently funded education programs for the Federated
States of Micronesia and the Republic of the Marshall Islands
under Title I of the Elementary and Secondary Education Act,
part B of the Individuals with Disabilities Education Act,
Titles I and II of the Workforce Investment Act of 1998,
Title I of the Carl D. Perkins Vocational and Technical
Education Act and the Head Start Act. I assure you that I
will continue to fund these programs through the newly
created supplemental education grants authorized in your
substitute to H.J. Res. 63.
I do have concerns that these provisions remain intact
throughout the legislative process and will work with you to
ensure that this new discretionary authority for supplemental
education grants is maintained through a conference
agreement.
I thank you for working with me regarding this matter. If
you have questions regarding this matter, please do not
hesitate to call me.
Sincerely,
Ralph Regula,
Chairman, House Appropriations Subcommittee on Labor,
Health and Human Services, Education and Related Agencies.
____
House of Representatives,
Committee on Resources,
Washington, DC, September 29, 2003.
Hon. Jim Nussle,
Chairman, Committee on the Budget, Cannon House Office
Building, Washington, DC.
Dear Mr. Chairman: I understand that the Committee on the
Budget objected to consideration of H.J. Res. 63 on the Floor
of the House of Representatives last week due to funding
levels that were inconsistent with the most recent budget
resolution. H.J. Res. 63 was referred primarily to the
Committee on International Relations and additionally to the
Committee on Resources. The bill was also sequentially
referred to the Committee on the Judiciary. After extensive
negotiations with the Department of State, the Department of
the Interior, other committees of jurisdiction and our
Members, the Committee on Resources reported an amended bill
on September 15, 2003 (H. Rept. 108-262, Part II). It is this
amended text, with modifications, that Chairman Henry Hyde of
the International Relations Committee desires to schedule for
Floor consideration.
H.J. Res. 63 approves 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 otherwise to amend Public Law 99-239, and to
appropriate for the purposes of amended Public Law 99-239 for
fiscal years ending on or before September 30, 2023. The
version reported from the Committee on Resources authorizes
funding for various assistance programs to the Marshall
Islands and Micronesia. It also provides ``impact aid'' to
the U.S. Pacific territories and the State of Hawaii
associated with the two Freely Associated States.
I acknowledge that the Committee on Resources has slightly
exceeded its budget allocation attributed to the approval and
implementation of the Compacts of Free Association with the
Marshall Islands and Micronesia. For example, for those
programs within the Committee on Resources' jurisdiction
contained in the bill, the budget resolution provided $19M
for Fiscal Year (FY) 2004, but H.J. Res. 63 authorizes $28M.
For FY 2004 through FY 2008, the budget resolution provided
$105M; the bill has a $159M cost for that same period.
To expedite consideration of the resolution, the Committee
on Resources will agree to absorb the additional budget
authority and outlays contained in H.J. Res. 63 as reported
within the overall Committee allocation under the budget
resolution. This represents a total of $54M in both budget
authority and outlays for FY 2004 through FY 2008.
Obviously, this decision will affect other programs within
the Committee on Resource's jurisdiction, but I believe that
enactment of the compact bill and the aid it provides to the
two freely associated states, as well to the U.S. pacific
territories and the State of Hawaii, justifies this shift in
our priorities. However, as you know, the Committee on
Resources has only limited outlay and budget authority under
the current budget resolution. Given the time remaining in
the 108th Congress, we would not be unable to absorb any
additional funding associated with this bill or a Senate
counterpart given other legislative initiations expected to
be enacted.
Thank you for this opportunity to clarify our position. I
hope it will enable Chairman Hyde and Congressman Leach, the
author of the measure, to move forward with this important
legislation.
Sincerely,
Richard W. Pombo,
Chairman.
____
House of Representatives, Committee on International
Relations,
Washington, DC, October 23, 2003.
Hon. Jim Nussle,
Chairman, Committee on the Budget, House of Representatives,
Cannon House House Office Building, Washington, DC.
Dear Jim: I am writing to memorialize and confirm an
understanding regarding a new, proposed suspension version of
H.J. Res. 63, the Compact of Free Association Amendment Act
of 2003, which has been worked out between the Committee on
Resources, the Committee on Education and the Workforce, and
the Committee on International Relations.
This new text is intended to address your Committee's cost-
related objection to the originally proposed suspension
version of H.J. Res. 63 while also addressing the concerns of
numerous Members that adequate education assistance be
provided to the Republic of the Marshall Islands (RMI) and
the Federated States of Micronesia (FSM) under the new
Compacts of Free Association. The language in Section
105(g)(1)(B) of the original suspension text would have
created approximately $29 million in new, annual direct
spending for targeted education grants intended to replace
the benefits that those countries currently receive as
participants in certain U.S. formula-grant education
programs.
The new, consensus text: (1) replaces that mandatory
spending language with language authorizing new,
discretionary grant assistance from the Department of
Education to the RMI and FSM, in lieu of (and in an amount
generally commensurate with) certain educational programs
that currently receive; and (2) is premised upon an explicit
assurance from the relevant appropriators that they will work
to fund those new authorities in the years ahead. I
understand that this change, together with the Resources
Committee's willingness to absorb the $54 million in five-
year costs above what was allocated for Compact assistance in
the FY04 budget resolution, will satisfy your objections to
H.J. Res. 63 and allow this legislation to move forward on
the suspension calendar.
I support this arrangement and will endeavor in good faith,
as we move it forward through the legislative process, to
actively work against any version of this bill (i.e., free-
standing Senate legislation, attachment to an appropriations
bill, etc.) that may exceed a total cost of $28 million in
2004 and $159 million over five years. It is my hope that
this commitment will suffice to address your Committee's
understandable concerns. As you are likely aware, there are a
number of reasons why it is critical for the House to act
promptly on this important resolution. Please do not hesitate
to call if I or my staff can be of any assistance on this
matter.
Sincerely,
Henry J. Hyde,
Chairman.
Mr. POMBO. Madam Speaker, I rise in support of H.J. Res. 63, the
``Compact of Free Association Amendments Act of 2003.'' The House
Resources Committee has a unique understanding of the issues that
affect the insular areas, and this legislation received strong support
within our Committee.
For over 50 years, the United States has enjoyed a very unique
relationship with citizens of Micronesia and the Marshall Islands. In
1984, President Ronald Reagan proposed a new status for the trust
territories of the Pacific through negotiated Compacts of Free
Association. After having status as a United Nations Trust Territory
for many years, in 1986, these islands chose to become sovereign
states.
Starting in 1986, when Congress passed ``The Compact Act,'' we made
the agreement to strive to continue to maintain both economic and
political stability in this region, including working to advance
economic self-reliance in these islands.
With the passage of time and implementation of the original Compact,
it is very encouraging to see the results achieved that were aided by
this legislation. We can now consider the connection we have with the
Federated States of Micronesia (FSM) and the Republic of the Marshall
Islands (RMI) to be one of the United States' closest bilateral
relationships.
The administration submitted to Congress a large agreement that
reflected many hours of hard work from individuals primarily within the
U.S. State Department and the U.S. Department of the Interior. These
individuals deserve recognition for the time which they dedicated to
the people and governments of the Freely Associated States. Multiple
Committees have an interest in this legislation, as the Compacts cover
everything from immigration to health care and continuing education
programs. It is encouraging to see how closely so many Members were
able to work closely over the last few months to ensure bipartisan
support and passage of this legislation.
I wanted to thank the Members of the House Resources Committee for
their thoughtful input throughout the process of amending this
legislation. The openness with which our Committee was able to work
with the Chairmen and Ranking Members of the House International
Relations Committee, the House Education and Workforce Committee, and
the House Judiciary Committee was also essential to bringing H.J. Res.
63 to the floor today.
Through the work of multiple Members, the House has been able to make
numerous changes that should create more beneficial results for not
only those living in the FSM and
[[Page H9888]]
RMI, but also for those citizens from the Freely Associated States
living in areas like American Samoa, the Commonwealth of the Northern
Mariana Islands, Guam, and Hawaii.
We were able to craft legislation that incorporates components such
as the strong accountability reforms agreed upon by the Administration,
the FSM, and the RMI, while pushing to empower these citizens to
maintain strong health care advances, education programs and general
infrastructure. Chairman Boehner was particularly helpful in working
with multiple Committees to ensure we worked to address the issue of
funding education programs in the FSM and the RMI to a necessary level,
and it is important to note that Congress will now ensure that this
funding can be provided within the Compact for the next 20 years.
Further, through the direct input of Members from those areas
affected by the migration of FAS citizens, we doubled the level of what
is commonly referred to as ``Compact Impact'' funding. This will
greatly assist areas in their ability to allow FAS citizens to continue
to migrate to their islands while also fortifying the spending by their
own respective governments on students and others that utilize the
social resources of these areas.
Finally, the hard work over numerous years put into what is now H.J.
Res. 63 should not be ignored and this legislation needs to move
forward as quickly as possible. The timing is critical for these
islands, and important to maintaining a relationship that has brought
us the strong U.S. defense and strategic interests that exist in this
area of the Pacific Ocean.
The ability for Congress to act thoughtfully and expeditiously is
shown in the interest of multiple Members working to ensure we got this
legislation to the Floor for a vote today. I appreciate again the
leadership of Mr. Hyde and Mr. Leach, as well as Mr. Lantos from the
International Relations Committee. My colleague from West Virginia, Mr.
Rahall, was also very engaged throughout the process of moving this
legislation, which helped to allow the Resources Committee to move
forward with a unified voice concerning this legislation.
I thus strongly support the passage of H.J. Res. 63 and encourage the
bipartisan support of this measure by my colleagues.
Mr. LEACH. Madam Speaker, I have no further requests for time, and I
yield back the balance of my time.
The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion
offered by the gentleman from Iowa (Mr. Leach) that the House suspend
the rules and pass the joint resolution, H.J. Res. 63, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the joint resolution, as amended,
was passed.
A motion to reconsider was laid on the table.
____________________