[Congressional Record Volume 149, Number 169 (Thursday, November 20, 2003)]
[House]
[Pages H11722-H11757]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003
Mr. LEACH. Mr. Speaker, I move to suspend the rules and concur in the
Senate amendments to 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.
The Clerk read as follows:
Senate amendments:
Strike out all after the resolving clause and insert:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This joint resolution, together with the
table of contents in subsection (b) of this section, may be
cited as the ``Compact of Free Association Amendments Act of
2003''.
(b) Table of Contents.--The table of contents for this
joint resolution is as follows:
Sec. 1. Short title and table of contents.
[[Page H11723]]
TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT;
INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND
U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS
Sec. 101. Approval of U.S.-FSM Compact of Free Association and the
U.S.-RMI Compact of Free Association; references to
subsidiary agreements or separate agreements.
(a) Federated States of Micronesia.
(b) Republic of the Marshall Islands.
(c) References to the Compact, the U.S.-FSM Compact and the U.S.-RMI
Compact; References to Subsidiary Agreements or Separate
Agreements.
(d) Amendment, Change, or Termination in the U.S.-FSM Compact, the
U.S.-RMI Compact and Certain Agreements.
(e) Subsidiary Agreements Deemed Bilateral.
(f) Entry Into Force of Future Amendments to Subsidiary Agreements.
Sec. 102. Agreements With Federated States of Micronesia.
(a) Law Enforcement Assistance.
(b) Agreement on Audits.
Sec. 103. Agreements With and Other Provisions Related to the Republic
of the Marshall Islands.
(a) Law Enforcement Assistance.
(b) EJIT.
(c) Section 177 Agreement.
(d) Nuclear Test Effects.
(e) Espousal Provisions.
(f) DOE Radiological Health Care Program; USDA Agricultural and Food
Programs.
(g) Rongelap.
(h) Four Atoll Health Care Program.
(i) Enjebi Community Trust Fund.
(j) Bikini Atoll Cleanup.
(k) Agreement on Audits.
(l) Kwajalein.
Sec. 104. Interpretation of and United States Policy Regarding U.S.-FSM
Compact and U.S.-RMI Compact.
(a) Human Rights.
(b) Immigration and Passport Security.
(c) Nonalienation of Lands.
(d) Nuclear Waste Disposal.
(e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact on the
State of Hawaii, Guam, the Commonwealth of the Northern
Mariana Islands and American Samoa; Related Authorization
and Continuing Appropriation.
(f) Foreign Loans.
(g) Sense of Congress Concerning Funding of Public Infrastructure.
(h) Reports and Reviews.
(i) Construction of Section 141(f).
(j) Inflation adjustment.
(k) Participation by secondary schools in the Armed Services
Vocational Aptitude Battery (ASVAB) Student Testing
Program.
Sec. 105. Supplemental Provisions.
(a) Domestic Program Requirements.
(b) Relations With the Federated States of Micronesia and the
Republic of the Marshall Islands.
(c) Continuing Trust Territory Authorization.
(d) Survivability.
(e) Noncompliance Sanctions; Actions Incompatible With United States
Authority.
(f) Continuing Programs and Laws.
(g) College of Micronesia.
(h) Trust Territory Debts to U.S. Federal Agencies.
(i) Judicial Training.
(j) Technical Assistance.
(k) Prior Service Benefits Program.
(l) Indefinite Land Use Payments.
(m) Communicable Disease Control Program.
(n) User Fees.
(o) Treatment of Judgments of Courts of the Federated States of
Micronesia, the Republic of the Marshall Islands, and the
Republic of Palau.
(p) Establishment of Trust Funds; Expedition of Process.
Sec. 106. Construction Contract Assistance.
(a) Assistance to U.S. Firms.
(b) Authorization of Appropriations.
Sec. 107. Prohibition.
Sec. 108. Compensatory Adjustments.
(a) Additional Programs and Services.
(b) Further Amounts.
Sec. 109. Authorization and Continuing Appropriation.
Sec. 110. Payment of Citizens of the Federated States of Micronesia,
the Republic of the Marshall Islands, and the Republic of
Palau Employed by the Government of the United States in
the Continental United States.
TITLE II--COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED STATES OF
MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS
Sec. 201. Compacts of Free Association, as Amended Between the
Government of the United States of America and the
Government of the Federated States of Micronesia and
Between the Government of the United States of America
and the Government of the Republic of the Marshall
Islands.
(a) Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the
Federated States of Micronesia.
Title One--Governmental Relations
Article I--Self-Government.
Article II--Foreign Affairs.
Article III--Communications.
Article IV--Immigration.
Article V--Representation.
Article VI--Environmental Protection.
Article VII--General Legal Provisions.
Title Two--Economic Relations
Article I--Grant Assistance.
Article II--Services and Program Assistance.
Article III--Administrative Provisions.
Article IV--Trade.
Article V--Finance and Taxation.
Title Three--Security and Defense Relations
Article I--Authority and Responsibility.
Article II--Defense Facilities and Operating Rights.
Article III--Defense Treaties and International Security Agreements.
Article IV--Service in Armed Forces of the United States.
Article V--General Provisions.
Title Four--General Provisions
Article I--Approval and Effective Date.
Article II--Conference and Dispute Resolution.
Article III--Amendment.
Article IV--Termination.
Article V--Survivability.
Article VI--Definition of Terms.
Article VII--Concluding Provisions.
(b) Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the
Republic of the Marshall Islands.
Title One--Governmental Relations
Article I--Self-Government.
Article II--Foreign Affairs.
Article III--Communications.
Article IV--Immigration.
Article V--Representation.
Article VI--Environmental Protection.
Article VII--General Legal Provisions.
Title Two--Economic Relations
Article I--Grant Assistance.
Article II--Services and Program Assistance.
Article III--Administrative Provisions.
Article IV--Trade.
Article V--Finance and Taxation.
Title Three--Security and Defense Relations
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
[[Page H11724]]
States of Micronesia and set forth in Title II (section
201(a)) of this joint resolution. Any reference in this joint
resolution to the ``U.S.-RMI Compact'' shall be treated as a
reference to the Compact of Free Association, as amended
between the Government of the United States of America and
the Government of the Republic of the Marshall Islands and
set forth in Title II (section 201(b)) of this joint
resolution.
(2) Any reference to the term ``subsidiary agreements'' or
``separate agreements'' in this joint resolution shall be
treated as a reference to agreements listed in section 462 of
the U.S.-FSM Compact and the U.S.-RMI Compact, and any other
agreements that the United States may from time to time enter
into with either the Government of the Federated States of
Micronesia or the Government of the Republic of the Marshall
Islands, or with both such governments in accordance with the
provisions of the U.S.-FSM Compact and the U.S.-RMI Compact.
(d) Amendment, Change, or Termination in the U.S.-FSM
Compact and U.S.-RMI Compact and Certain Agreements.--
(1) Any amendment, change, or termination by mutual
agreement or by unilateral action of the Government of the
United States of all or any part of the U.S.-FSM Compact or
U.S.-RMI Compact shall not enter into force until after
Congress has incorporated it in an Act of Congress.
(2) The provisions of paragraph (1) shall apply--
(A) to all actions of the Government of the United States
under the U.S.-FSM Compact or U.S.-RMI Compact including, but
not limited to, actions taken pursuant to sections 431, 441,
or 442;
(B) to any amendment, change, or termination in the
Agreement Between the Government of the United States and the
Government of the Federated States of Micronesia Regarding
Friendship, Cooperation and Mutual Security Concluded
Pursuant to Sections 321 and 323 of the Compact of Free
Association referred to in section 462(a)(2) of the U.S.-FSM
Compact and the Agreement Between the Government of the
United States and the Government of the Marshall Islands
Regarding Mutual Security Concluded Pursuant to Sections 321
and 323 of the Compact of Free Association referred to in
section 462(a)(5) of the U.S.-RMI Compact;
(C) to any amendment, change, or termination of the
agreements concluded pursuant to Compact section 177, and
section 215(a) of the U.S.-FSM Compact and section 216(a) of
the U.S.-RMI Compact, the terms of which are incorporated by
reference into the U.S.-FSM Compact and the U.S.-RMI Compact;
and
(D) to the following subsidiary agreements, or portions
thereof:
(i) Articles III, IV, and X of the agreement referred to in
section 462(b)(6) of the U.S.-RMI Compact:
(ii) Article III and IV of the agreement referred to in
section 462(b)(6) of the U.S.-FSM Compact.
(iii) Articles VI, XV, and XVII of the agreement referred
to in section 462(b)(7) of the U.S.-FSM Compact and U.S.-RMI
Compact.
(e) Subsidiary Agreements Deemed Bilateral.--For purposes
of implementation of the U.S.-FSM Compact and the U.S.-RMI
Compact and this joint resolution, the Agreement Concluded
Pursuant to Section 234 of the Compact of Free Association
and referred to in section 462(a)(1) of the U.S.-FSM Compact
and section 462(a)(4) of the U.S.-RMI Compact shall be deemed
to be a bilateral agreement between the United States and
each other party to such subsidiary agreement. The consent or
concurrence of any other party shall not be required for the
effectiveness of any actions taken by the United States in
conjunction with either the Federated States of Micronesia or
the Republic of the Marshall Islands which are intended to
affect the implementation, modification, suspension, or
termination of such subsidiary agreement (or any provision
thereof) as regards the mutual responsibilities of the United
States and the party in conjunction with whom the actions are
taken.
(f) Entry Into Force of Future Amendments to Subsidiary
Agreements.--No agreement between the United States and the
government of either the Federated States of Micronesia or
the Republic of the Marshall Islands which would amend,
change, or terminate any subsidiary agreement or portion
thereof, other than those set forth in subsection (d) of this
section shall enter into force until 90 days after the
President has transmitted such agreement to the President of
the Senate and the Speaker of the House of Representatives
together with an explanation of the agreement and the reasons
therefor. In the case of the agreement referred to in section
462(b)(3) of the U.S.-FSM Compact and the U.S.-RMI Compact,
such transmittal shall include a specific statement by the
Secretary of Labor as to the necessity of such amendment,
change, or termination, and the impact thereof.
SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MICRONESIA.
(a) Law Enforcement Assistance.--Pursuant to sections 222
and 224 of the U.S.-FSM Compact, the United States shall
provide non-reimbursable technical and training assistance as
appropriate, including training and equipment for postal
inspection of illicit drugs and other contraband, to enable
the Government of the Federated States of Micronesia to
develop and adequately enforce laws of the Federated States
of Micronesia and to cooperate with the United States in the
enforcement of criminal laws of the United States. Funds
appropriated pursuant to section 105(j) of this title may be
used to reimburse State or local agencies providing such
assistance.
(b) Agreement on Audits.--The Comptroller General (and his
duly authorized representatives) shall have the authorities
necessary to carry out his responsibilities under section 232
of the U.S.-FSM Compact and the agreement referred to in
section 462(b)(4) of the U.S.-FSM Compact, including the
following authorities:
(1) General authority of the comptroller general to
audit.--
(A) The Comptroller General of the United States (and his
duly authorized representatives) shall have the authority to
audit--
(i) all grants, program assistance, and other assistance
provided to the Government of the Federated States of
Micronesia under Articles I and II of Title Two of the U.S.-
FSM Compact; and
(ii) any other assistance provided by the Government of the
United States to the Government of the Federated States of
Micronesia.
Such authority shall include authority for the Comptroller
General to conduct or cause to be conducted any of the audits
provided for in section 232 of the U.S.-FSM Compact. The
authority provided in this paragraph shall continue for at
least three years after the last such grant has been made or
assistance has been provided.
(B) The Comptroller General (and his duly authorized
representatives) shall also have authority to review any
audit conducted by or on behalf of the Government of the
United States. In this connection, the Comptroller General
shall have access to such personnel and to such records,
documents, working papers, automated data and files, and
other information relevant to such review.
(2) Comptroller general access to records.--
(A) In carrying out paragraph (1), the Comptroller General
(and his duly authorized representatives) shall have such
access to the personnel and (without cost) to records,
documents, working papers, automated data and files, and
other information relevant to such audits. The Comptroller
General may duplicate any such records, documents, working
papers, automated data and files, or other information
relevant to such audits.
(B) Such records, documents, working papers, automated data
and files, and other information regarding each such grant or
other assistance shall be maintained for at least five years
after the date such grant or assistance was provided and in a
manner that permits such grants, assistance, and payments to
be accounted for distinct from any other funds of the
Government of the Federated States of Micronesia.
(3) Status of comptroller general representatives.--The
Comptroller General and his duly authorized representatives
shall be immune from civil and criminal process relating to
words spoken or written and all acts performed by them in
their official capacity and falling within their functions,
except insofar as such immunity may be expressly waived by
the Government of the United States. The Comptroller General
and his duly authorized representatives shall not be liable
to arrest or detention pending trial, except in the case of a
grave crime and pursuant to a decision by a competent
judicial authority, and such persons shall enjoy immunity
from seizure of personal property, immigration restrictions,
and laws relating to alien registration, fingerprinting, and
the registration of foreign agents. Such persons shall enjoy
the same taxation exemptions as are set forth in Article 34
of the Vienna Convention on Diplomatic Relations. The
privileges, exemptions and immunities accorded under this
paragraph are not for the personal benefit of the individuals
concerned but are to safeguard the independent exercise of
their official functions. Without prejudice to those
privileges, exemptions and immunities, it is the duty of all
such persons to respect the laws and regulations of the
Government of the Federated States of Micronesia.
(4) Audits defined.--As used in this subsection, the term
``audits'' includes financial, program, and management
audits, including determining--
(A) whether the Government of the Federated States of
Micronesia has met the requirements set forth in the U.S.-FSM
Compact, or any related agreement entered into under the
U.S.-FSM Compact, regarding the purposes for which such
grants and other assistance are to be used; and
(B) the propriety of the financial transactions of the
Government of the Federated States of Micronesia pursuant to
such grants or assistance.
(5) Cooperation by federated states of micronesia.--The
Government of the Federated States of Micronesia will
cooperate fully with the Comptroller General of the United
States in the conduct of such audits as the Comptroller
General determines necessary to enable the Comptroller
General to fully discharge his responsibilities under this
joint resolution.
SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RELATED TO THE
REPUBLIC OF THE MARSHALL ISLANDS.
(a) Law Enforcement Assistance.--Pursuant to sections 222
and 224 of the U.S.-RMI Compact, the United States shall
provide non-reimbursable technical and training assistance as
appropriate, including training and equipment for postal
inspection of illicit drugs and other contraband, to enable
the Government of the Marshall Islands to develop and
adequately enforce laws of the Marshall Islands and to
cooperate with the United States in the enforcement of
criminal laws of the United States. Funds appropriated
pursuant to section 105(j) of this title may be used to
reimburse State or local agencies providing such assistance.
(b) Ejit.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that the President of the United
States shall negotiate with the Government of the Marshall
Islands an agreement whereby, without prejudice as to any
claims which have been or may be asserted by any party as to
rightful title and ownership of
[[Page H11725]]
any lands on Ejit, the Government of the Marshall Islands
shall assure that lands on Ejit used as of January 1, 1985,
by the people of Bikini, will continue to be available
without charge for their use, until such time as Bikini is
restored and inhabitable and the continued use of Ejit is no
longer necessary, unless a Marshall Islands court of
competent jurisdiction finally determines that there are
legal impediments to continued use of Ejit by the people of
Bikini.
(2) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that if the impediments described
in paragraph (1) do arise, the United States will cooperate
with the Government of the Marshall Islands in assisting any
person adversely affected by such judicial determination to
remain on Ejit, or in locating suitable and acceptable
alternative lands for such person's use.
(3) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that paragraph (1) shall not be
applied in a manner which would prevent the Government of the
Marshall Islands from acting in accordance with its
constitutional processes to resolve title and ownership
claims with respect to such lands or from taking substitute
or additional measures to meet the needs of the people of
Bikini with their democratically expressed consent and
approval.
(c) Section 177 Agreement.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that in furtherance of the purposes
of Article I of the Subsidiary Agreement for Implementation
of Section 177 of the Compact, the payment of the amount
specified therein shall be made by the United States under
Article I of the Agreement between the Government of the
United States and the Government of the Marshall Islands for
the Implementation of section 177 of the Compact (hereafter
in this subsection referred to as the ``Section 177
Agreement'') only after the Government of the Marshall
Islands has notified the President of the United States as to
which investment management firm has been selected by such
Government to act as Fund Manager under Article I of the
Section 177 Agreement.
(2) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that in the event that the
President determines that an investment management firm
selected by the Government of the Marshall Islands does not
meet the requirements specified in Article I of the Section
177 Agreement, the United States shall invoke the conference
and dispute resolution procedures of Article II of Title Four
of the Compact. Pending the resolution of such a dispute and
until a qualified Fund Manager has been designated, the
Government of the Marshall Islands shall place the funds paid
by the United States pursuant to Article I of the Section 177
Agreement into an interest-bearing escrow account. Upon
designation of a qualified Fund Manager, all funds in the
escrow account shall be transferred to the control of such
Fund Manager for management pursuant to the Section 177
Agreement.
(3) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that if the Government of the
Marshall Islands determines that some other investment firm
should act as Fund Manager in place of the firm first (or
subsequently) selected by such Government, the Government of
the Marshall Islands shall so notify the President of the
United States, identifying the firm selected by such
Government to become Fund Manager, and the President shall
proceed to evaluate the qualifications of such identified
firm.
(4) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that at the end of 15 years after
the effective date of the Compact, the firm then acting as
Fund Manager shall transfer to the Government of the Marshall
Islands, or to such account as such Government shall so
notify the Fund Manager, all remaining funds and assets being
managed by the Fund Manager under the Section 177 Agreement.
(d) Nuclear Test Effects.--In the joint resolution of
January 14, 1986 (Public Law 99-239) Congress provided that
in approving the Compact, the Congress understands and
intends that the peoples of Bikini, Enewetak, Rongelap, and
Utrik, who were affected by the United States nuclear weapons
testing program in the Marshall Islands, will receive the
amounts of $75,000,000 (Bikini); $48,750,000 (Enewetak);
$37,500,000 (Rongelap); and $22,500,000 (Utrik),
respectively, which amounts shall be paid out of proceeds
from the fund established under Article I, section 1 of the
subsidiary agreement for the implementation of section 177 of
the Compact. The amounts specified in this subsection shall
be in addition to any amounts which may be awarded to
claimants pursuant to Article IV of the subsidiary agreement
for the implementation of Section 177 of the Compact.
(e) Espousal Provisions.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that it is the intention of the
Congress of the United States that the provisions of section
177 of the Compact of Free Association and the Agreement
between the Government of the United States and the
Government of the Marshall Islands for the Implementation of
Section 177 of the Compact (hereafter in this subsection
referred to as the ``Section 177 Agreement'') constitute a
full and final settlement of all claims described in Articles
X and XI of the Section 177 Agreement, and that any such
claims be terminated and barred except insofar as provided
for in the Section 177 Agreement.
(2) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that in furtherance of the
intention of Congress as stated in paragraph (1) of this
subsection, the Section 177 Agreement is hereby ratified and
approved. It is the explicit understanding and intent of
Congress that the jurisdictional limitations set forth in
Article XII of such Agreement are enacted solely and
exclusively to accomplish the objective of Article X of such
Agreement and only as a clarification of the effect of
Article X, and are not to be construed or implemented
separately from Article X.
(f) DOE Radiological Health Care Program; USDA Agricultural
and Food Programs.--
(1) Marshall islands program.--Notwithstanding any other
provision of law, upon the request of the Government of the
Republic of the Marshall Islands, the President (either
through an appropriate department or agency of the United
States or by contract with a United States firm) shall
continue to provide special medical care and logistical
support thereto for the remaining members of the population
of Rongelap and Utrik who were exposed to radiation resulting
from the 1954 United States thermo-nuclear ``Bravo'' test,
pursuant to Public Laws 95-134 and 96-205.
(2) Agricultural and food programs.--
(A) In general.--In the joint resolution of January 14,
1986 (Public Law 99-239) Congress provided that
notwithstanding any other provision of law, upon the request
of the Government of the Marshall Islands, for the first
fifteen years after the effective date of the Compact, the
President (either through an appropriate department or agency
of the United States or by contract with a United States firm
or by a grant to the Government of the Republic of the
Marshall Islands which may further contract only with a
United States firm or a Republic of the Marshall Islands
firm, the owners, officers and majority of the employees of
which are citizens of the United States or the Republic of
the Marshall Islands) shall provide technical and other
assistance--
(i) without reimbursement, to continue the planting and
agricultural maintenance program on Enewetak, as provided in
subparagraph (C); and
(ii) without reimbursement, to continue the food programs
of the Bikini and Enewetak people described in section 1(d)
of Article II of the Subsidiary Agreement for the
Implementation of Section 177 of the Compact and for
continued waterborne transportation of agricultural products
to Enewetak including operations and maintenance of the
vessel used for such purposes.
(B) Population changes.--The President shall ensure the
assistance provided under these programs reflects the changes
in the population since the inception of such programs.
(C) Planting and agricultural maintenance program.--
(i) In general.--The planting and agricultural maintenance
program on Enewetak shall be funded at a level of not less
than $1,300,000 per year, as adjusted for inflation under
section 218 of the U.S.-RMI Compact.
(ii) Authorization and continuing appropriation.--There is
hereby authorized and appropriated to the Secretary of the
Interior, out of any funds in the Treasury not otherwise
appropriated, to remain available until expended, for each
fiscal year from 2004 through 2023, $1,300,000, as adjusted
for inflation under section 218 of the U.S.-RMI Compact, for
grants to carry out the planting and agricultural maintenance
program.
(3) Payments.--In the joint resolution of January 14, 1986
(Public Law 99-239) Congress provided that payments under
this subsection shall be provided to such extent or in such
amounts as are necessary for services and other assistance
provided pursuant to this subsection. It is the sense of
Congress that after the periods of time specified in
paragraphs (1) and (2) of this subsection, consideration will
be given to such additional funding for these programs as may
be necessary.
(g) Rongelap.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that because Rongelap was directly
affected by fallout from a 1954 United States thermonuclear
test and because the Rongelap people remain unconvinced that
it is safe to continue to live on Rongelap Island, it is the
intent of Congress to take such steps (if any) as may be
necessary to overcome the effects of such fallout on the
habitability of Rongelap Island, and to restore Rongelap
Island, if necessary, so that it can be safely inhabited.
Accordingly, it is the expectation of the Congress that the
Government of the Marshall Islands shall use such portion of
the funds specified in Article II, section 1(e) of the
subsidiary agreement for the implementation of section 177 of
the Compact as are necessary for the purpose of contracting
with a qualified scientist or group of scientists to review
the data collected by the Department of Energy relating to
radiation levels and other conditions on Rongelap Island
resulting from the thermonuclear test. It is the expectation
of the Congress that the Government of the Marshall Islands,
after consultation with the people of Rongelap, shall select
the party to review such data, and shall contract for such
review and for submission of a report to the President of the
United States and the Congress as to the results thereof.
(2) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that the purpose of the review
referred to in paragraph (1) of this subsection shall be to
establish whether the data cited in support of the
conclusions as to the habitability of Rongelap Island, as set
forth in the Department of Energy report entitled: ``The
Meaning of Radiation for Those Atolls in the Northern Part of
the Marshall Islands That Were Surveyed in 1978'', dated
November 1982, are adequate and whether such conclusions are
fully supported by the data. If the party reviewing the data
concludes that such conclusions as to habitability are fully
supported by adequate data, the report to the President of
the United States and the Congress
[[Page H11726]]
shall so state. If the party reviewing the data concludes
that the data are inadequate to support such conclusions as
to habitability or that such conclusions as to habitability
are not fully supported by the data, the Government of the
Marshall Islands shall contract with an appropriate scientist
or group of scientists to undertake a complete survey of
radiation and other effects of the nuclear testing program
relating to the habitability of Rongelap Island. Such sums as
are necessary for such survey and report concerning the
results thereof and as to steps needed to restore the
habitability of Rongelap Island are authorized to be made
available to the Government of the Marshall Islands.
(3) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that it is the intent of Congress
that such steps (if any) as are necessary to restore the
habitability of Rongelap Island and return the Rongelap
people to their homeland will be taken by the United States
in consultation with the Government of the Marshall Islands
and, in accordance with its authority under the Constitution
of the Marshall Islands, the Rongelap local government
council.
(4) There are hereby authorized and appropriated to the
Secretary of the Interior, out of any funds in the Treasury
not otherwise appropriated, to remain available until
expended, for fiscal year 2005, $1,780,000; for fiscal year
2006, $1,760,000; and for fiscal year 2007, $1,760,000, as
the final contributions of the United States to the Rongelap
Resettlement Trust Fund as established pursuant to Public Law
102-154 (105 Stat. 1009), for the purposes of establishing a
food importation program as a part of the overall
resettlement program of Rongelap Island.
(h) Four Atoll Health Care Program.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that services provided by the
United States Public Health Service or any other United
States agency pursuant to section 1(a) of Article II of the
Agreement for the Implementation of Section 177 of the
Compact (hereafter in this subsection referred to as the
``Section 177 Agreement'') shall be only for services to the
people of the Atolls of Bikini, Enewetak, Rongelap, and Utrik
who were affected by the consequences of the United States
nuclear testing program, pursuant to the program described in
Public Law 95-134 (91 Stat. 1159) and Public Law 96-205 (94
Stat. 84) and their descendants (and any other persons
identified as having been so affected if such identification
occurs in the manner described in such public laws). Nothing
in this subsection shall be construed as prejudicial to the
views or policies of the Government of the Marshall Islands
as to the persons affected by the consequences of the United
States nuclear testing program.
(2) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that at the end of the first year
after the effective date of the Compact and at the end of
each year thereafter, the providing agency or agencies shall
return to the Government of the Marshall Islands any
unexpended funds to be returned to the Fund Manager (as
described in Article I of the Section 177 Agreement) to be
covered into the Fund to be available for future use.
(3) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that the Fund Manager shall retain
the funds returned by the Government of the Marshall Islands
pursuant to paragraph (2) of this subsection, shall invest
and manage such funds, and at the end of 15 years after the
effective date of the Compact, shall make from the total
amount so retained and the proceeds thereof annual
disbursements sufficient to continue to make payments for the
provision of health services as specified in paragraph (1) of
this subsection to such extent as may be provided in
contracts between the Government of the Marshall Islands and
appropriate United States providers of such health services.
(i) Enjebi Community Trust Fund.--In the joint resolution
of January 14, 1986 (Public Law 99-239) Congress provided
that notwithstanding any other provision of law, the
Secretary of the Treasury shall establish on the books of the
Treasury of the United States a fund having the status
specified in Article V of the subsidiary agreement for the
implementation of Section 177 of the Compact, to be known as
the ``Enjebi Community Trust Fund'' (hereafter in this
subsection referred to as the ``Fund''), and shall credit to
the Fund the amount of $7,500,000. Such amount, which shall
be ex gratia, shall be in addition to and not charged against
any other funds provided for in the Compact and its
subsidiary agreements, this joint resolution, or any other
Act. Upon receipt by the President of the United States of
the agreement described in this subsection, the Secretary of
the Treasury, upon request of the Government of the Marshall
Islands, shall transfer the Fund to the Government of the
Marshall Islands, provided that the Government of the
Marshall Islands agrees as follows:
(1) Enjebi trust agreement.--In the joint resolution of
January 14, 1986 (Public Law 99-239) Congress provided that
the Government of the Marshall Islands and the Enewetak Local
Government Council, in consultation with the people of
Enjebi, shall provide for the creation of the Enjebi
Community Trust Fund and the employment of the manager of the
Enewetak Fund established pursuant to the Section 177
Agreement as trustee and manager of the Enjebi Community
Trust Fund, or, should the manager of the Enewetak Fund not
be acceptable to the people of Enjebi, another United States
investment manager with substantial experience in the
administration of trusts and with funds under management in
excess of $250,000,000.
(2) Monitor conditions.--In the joint resolution of January
14, 1986 (Public Law 99-239) Congress provided that upon the
request of the Government of the Marshall Islands, the United
States shall monitor the radiation and other conditions on
Enjebi and within one year of receiving such a request shall
report to the Government of the Marshall Islands when the
people of Enjebi may resettle Enjebi under circumstances
where the radioactive contamination at Enjebi, including
contamination derived from consumption of locally grown food
products, can be reduced or otherwise controlled to meet
whole body Federal radiation protection standards for the
general population, including mean annual dose and mean 30-
year cumulative dose standards.
(3) Resettlement of enjebi.--In the joint resolution of
January 14, 1986 (Public Law 99-239) Congress provided that
in the event that the United States determines that the
people of Enjebi can within 25 years of January 14, 1986,
resettle Enjebi under the conditions set forth in paragraph
(2) of this subsection, then upon such determination there
shall be available to the people of Enjebi from the Fund such
amounts as are necessary for the people of Enjebi to do the
following, in accordance with a plan developed by the
Enewetak Local Government Council and the people of Enjebi,
and concurred with by the Government of the Marshall Islands
to assure consistency with the government's overall economic
development plan:
(A) Establish a community on Enjebi Island for the use of
the people of Enjebi.
(B) Replant Enjebi with appropriate food-bearing and other
vegetation.
(4) Resettlement of other location.--In the joint
resolution of January 14, 1986 (Public Law 99-239) Congress
provided that in the event that the United States determines
that within 25 years of January 14, 1986, the people of
Enjebi cannot resettle Enjebi without exceeding the radiation
standards set forth in paragraph (2) of this subsection, then
the fund manager shall be directed by the trust instrument to
distribute the Fund to the people of Enjebi for their
resettlement at some other location in accordance with a
plan, developed by the Enewetak Local Government Council and
the people of Enjebi and concurred with by the Government of
the Marshall Islands, to assure consistency with the
government's overall economic development plan.
(5) Interest from fund.--In the joint resolution of January
14, 1986 (Public Law 99-239) Congress provided that prior to
and during the distribution of the corpus of the Fund
pursuant to paragraphs (3) and (4) of this subsection, the
people of Enjebi may, if they so request, receive the
interest earned by the Fund on no less frequent a basis than
quarterly.
(6) Disclaimer of liability.--In the joint resolution of
January 14, 1986 (Public Law 99-239) Congress provided that
neither under the laws of the Marshall Islands nor under the
laws of the United States, shall the Government of the United
States be liable for any loss or damage to person or property
in respect to the resettlement of Enjebi by the people of
Enjebi, pursuant to the provision of this subsection or
otherwise.
(j) Bikini Atoll Cleanup.--
(1) Declaration of policy.--In the joint resolution of
January 14, 1986 (Public Law 99-239), the Congress determined
and declared that it is the policy of the United States, to
be supported by the full faith and credit of the United
States, that because the United States, through its nuclear
testing and other activities, rendered Bikini Atoll unsafe
for habitation by the people of Bikini, the United States
will fulfill its responsibility for restoring Bikini Atoll to
habitability, as set forth in paragraph (2) and (3) of this
subsection.
(2) Cleanup funds.--The joint resolution of January 14,
1986 (Public Law 99-239) authorized to be appropriated such
sums as necessary to implement the settlement agreement of
March 15, 1985, in The People of Bikini, et al. against
United States of America, et al., Civ. No. 84-0425 (D. Ha.).
(3) Conditions of funding.--In the joint resolution of
January 14, 1986 (Public Law 99-239) the Congress provided
that the funds referred to in paragraph (2) were to be made
available pursuant to Article VI, Section 1 of the Compact
Section 177 Agreement upon completion of the events set forth
in the settlement agreement referred to in paragraph (2) of
this subsection.
(k) Agreement on Audits.--The Comptroller General (and his
duly authorized representatives) shall have the authorities
necessary to carry out his responsibilities under section 232
of the U.S.-RMI Compact and the agreement referred to in
section 462(b)(4) of the U.S.-RMI Compact, including the
following authorities:
(1) General authority of the comptroller general to
audit.--
(A) The Comptroller General of the United States (and his
duly authorized representatives) shall have the authority to
audit--
(i) all grants, program assistance, and other assistance
provided to the Government of the Republic of the Marshall
Islands under Articles I and II of Title Two of the U.S.-RMI
Compact; and
(ii) any other assistance provided by the Government of the
United States to the Government of the Republic of the
Marshall Islands.
Such authority shall include authority for the Comptroller
General to conduct or cause to be conducted any of the audits
provided for in section 232 of the U.S.-RMI Compact. The
authority provided in this paragraph shall continue for at
least three years after the last such grant has been made or
assistance has been provided.
(B) The Comptroller General (and his duly authorized
representatives) shall also have authority to review any
audit conducted by or on behalf of the Government of the
United States. In this connection, the Comptroller General
shall have access to such personnel and to such records,
documents, working papers, automated data and files, and
other information relevant to such review.
[[Page H11727]]
(2) Comptroller general access to records.--
(A) In carrying out paragraph (1), the Comptroller General
(and his duly authorized representatives) shall have such
access to the personnel and (without cost) to records,
documents, working papers, automated data and files, and
other information relevant to such audits. The Comptroller
General may duplicate any such records, documents, working
papers, automated data and files, or other information
relevant to such audits.
(B) Such records, documents, working papers, automated data
and files, and other information regarding each such grant or
other assistance shall be maintained for at least five years
after the date such grant or assistance was provided and in a
manner that permits such grants, assistance and payments to
be accounted for distinct from any other funds of the
Government of the Republic of the Marshall Islands.
(3) Status of comptroller general representatives.--The
Comptroller General and his duly authorized representatives
shall be immune from civil and criminal process relating to
words spoken or written and all acts performed by them in
their official capacity and falling within their functions,
except insofar as such immunity may be expressly waived by
the Government of the United States. The Comptroller General
and his duly authorized representatives shall not be liable
to arrest or detention pending trial, except in the case of a
grave crime and pursuant to a decision by a competent
judicial authority, and such persons shall enjoy immunity
from seizure of personal property, immigration restrictions,
and laws relating to alien registration, fingerprinting, and
the registration of foreign agents. Such persons shall enjoy
the same taxation exemptions as are set forth in Article 34
of the Vienna Convention on Diplomatic Relations. The
privileges, exemptions and immunities accorded under this
paragraph are not for the personal benefit of the individuals
concerned but are to safeguard the independent exercise of
their official functions. Without prejudice to those
privileges, exemptions and immunities, it is the duty of all
such persons to respect the laws and regulations of the
Government of the Republic of the Marshall Islands.
(4) Audits defined.--As used in this subsection, the term
``audits'' includes financial, program, and management
audits, including determining--
(A) whether the Government of the Republic of the Marshall
Islands has met the requirements set forth in the U.S.-RMI
Compact, or any related agreement entered into under the
U.S.-RMI Compact, regarding the purposes for which such
grants and other assistance are to be used; and
(B) the propriety of the financial transactions of the
Government of the Republic of the Marshall Islands pursuant
to such grants or assistance.
(5) Cooperation by the republic of the marshall islands.--
The Government of the Republic of the Marshall Islands will
cooperate fully with the Comptroller General of the United
States in the conduct of such audits as the Comptroller
General determines necessary to enable the Comptroller
General to fully discharge his responsibilities under this
joint resolution.
(l) Kwajalein.--
(1) Statement of policy.--It is the policy of the United
States that payment of funds by the Government of the
Marshall Islands to the landowners of Kwajalein Atoll in
accordance with the land use agreement dated October 19,
1982, or as amended or superseded, and any related allocation
agreements, is required in order to ensure that the
Government of the United States will be able to fulfill its
obligation and responsibilities under Title Three of the
U.S.-RMI Compact and the subsidiary agreements concluded
pursuant to the U.S.-RMI Compact.
(2) Failure to pay.--
(A) In general.--If the Government of the Marshall Islands
fails to make payments in accordance with paragraph (1), the
Government of the United States shall initiate procedures
under section 313 of the U.S.-RMI Compact and consult with
the Government of the Marshall Islands with respect to the
basis for the nonpayment of funds.
(B) Resolution.--The United States shall expeditiously
resolve the matter of any nonpayment of funds required under
paragraph (1) pursuant to section 313 of the U.S.-RMI Compact
and the authority and responsibility of the Government of the
United States for security and defense matters in or relating
to the Marshall Islands. This paragraph shall be enforced, as
may be necessary, in accordance with section 105(e).
(3) Disposition of Increased Payments Pending New Land Use
Agreement.--Until such time as the Government of the Marshall
Islands and the landowners of Kwajalein Atoll have concluded
an agreement amending or superseding the land use agreement
reflecting the terms of and consistent with the Military Use
Operating Rights Agreement dated October 19, 1982, any
amounts paid by the United States to the Government of the
Marshall Islands in excess of the amounts required to be paid
pursuant to the land use agreement dated October 19, 1982,
shall be paid into, and held in, an interest bearing escrow
account in a United States financial institution by the
Government of the Republic of the Marshall Islands. At such
time, the funds and interest held in escrow shall be paid to
the landowners of Kwajalein in accordance with the new land
use agreement. If no such agreement is concluded by the date
which is five years after the date of enactment of this
resolution, then such funds and interest shall, unless
otherwise mutually agreed between the Government of the
United States of America and the Government of the Republic
of the Marshall Islands, be returned to the U.S. Treasury.
(4) Notifications and report.--
(A) The Government of the Republic of the Marshall Islands
shall notify the Government of the United States of America
when an agreement amending or superseding the land use
agreement dated October 19, 1982, is concluded.
(B) If no agreement amending or superseding the land use
agreement dated October 19, 1982 is concluded by the date
five years after the date of enactment of this resolution,
then the President shall report to Congress on the intentions
of the United States with respect to the use of Kwajalein
Atoll after 2016, on any plans to relocate activities carried
out on Kwajalein Atoll, and on the disposition of the funds
and interest held in escrow under paragraph (3).
(5) Assistance.--The President is authorized to make loans
and grants to the Government of the Marshall Islands to
address the special needs of the community at Ebeye,
Kwajalein Atoll, and other Marshallese communities within the
Kwajalein Atoll, pursuant to development plans adopted in
accordance with applicable laws of the Marshall Islands. The
loans and grants shall be subject to such other terms and
conditions as the President, in the discretion of the
President, may determine are appropriate.
SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY
REGARDING U.S.-FSM COMPACT AND U.S.-RMI
COMPACT.
(a) Human Rights.--In approving the U.S.-FSM Compact and
the U.S.-RMI Compact, Congress notes the conclusion in the
Statement of Intent of the Report of The Future Political
Status Commission of the Congress of Micronesia in July,
1969, that ``our recommendation of a free associated state is
indissolubly linked to our desire for such a democratic,
representative, constitutional government'' and notes that
such desire and intention are reaffirmed and embodied in the
Constitutions of the Federated States of Micronesia and the
Republic of the Marshall Islands. Congress also notes and
specifically endorses the preamble to the U.S.-FSM Compact
and the U.S.-RMI Compact, which affirms that the governments
of the parties to the U.S.-FSM Compact and the U.S.-RMI
Compact are founded upon respect for human rights and
fundamental freedoms for all. The Secretary of State shall
include in the annual reports on the status of
internationally recognized human rights in foreign countries,
which are submitted to Congress pursuant to sections 116 and
502B of the Foreign Assistance Act of 1961, ``22 U.S.C.
2151n, 2304'' a full and complete report regarding the status
of internationally recognized human rights in the Federated
States of Micronesia and the Republic of the Marshall
Islands.
(b) Immigration and Passport Security.--
(1) Naturalized citizens.--The rights of a bona fide
naturalized citizen of the Federated States of Micronesia or
the Republic of the Marshall Islands to enter the United
States, to lawfully engage therein in occupations, and to
establish residence therein as a nonimmigrant, to the extent
such rights are provided under section 141 of the U.S.-FSM
Compact and U.S.-RMI Compact, shall not be deemed to extend
to any such naturalized citizen with respect to whom
circumstances associated with the acquisition of the status
of a naturalized citizen are such as to allow a reasonable
inference, on the part of appropriate officials of the United
States and subject to United States procedural requirements,
that such naturalized status was acquired primarily in order
to obtain such rights.
(2) Passports.--It is the sense of Congress that up to
$250,000 of the grant assistance provided to the Federated
States of Micronesia pursuant to section 211(a)(4) of the
U.S.-FSM Compact, and up to $250,000 of the grant assistance
provided to the Republic of the Marshall Islands pursuant to
section 211(a)(4) of the U.S.-RMI Compact (or a greater
amount of the section 211(a)(4) grant, if mutually agreed
between the Government of the United States and the
government of the Federated States of Micronesia or the
government of the Republic of the Marshall Islands), be used
for the purpose of increasing the machine-readability and
security of passports issued by such jurisdictions. It is
further the sense of Congress that such funds be obligated by
September 30, 2004 and in the amount and manner specified by
the Secretary of State in consultation with the Secretary of
Homeland Security and, respectively, with the government of
the Federated States of Micronesia and the government of the
Republic of the Marshall Islands. The United States
Government is authorized to require that passports used for
the purpose of seeking admission under section 141 of the
U.S.-FSM Compact and the U.S.-RMI Compact contain the
security enhancements funded by such assistance.
(3) Information-sharing.--It is the sense of Congress that
the governments of the Federated States of Micronesia and the
Republic of the Marshall Islands develop, prior to October 1,
2004, the capability to provide reliable and timely
information as may reasonably be required by the Government
of the United States in enforcing criminal and security-
related grounds of inadmissibility and deportability under
the Immigration and Nationality Act, as amended, and shall
provide such information to the Government of the United
States.
(4) Transition; construction of sections 141(a)(3) and
141(a)(4) of the u.s.-fsm compact and u.s.-rmi compact.--The
words ``the effective date of this Compact, as amended'' in
sections 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact and
the U.S.-RMI Compact shall be construed to read, ``on the day
prior to the enactment by the United States Congress of the
Compact of Free Association Amendments Act of 2003.''.
(c) Nonalienation of Lands.--Congress endorses and
encourages the maintenance of the policies of the Government
of the Federated States of Micronesia and the Government of
the Republic of the Marshall Islands to regulate, in
accordance with their Constitutions and laws, the alienation
of permanent interests in real
[[Page H11728]]
property so as to restrict the acquisition of such interests
to persons of Federated States of Micronesia citizenship and
the Republic of the Marshall Islands citizenship,
respectively.
(d) Nuclear Waste Disposal.--In approving the U.S.-FSM
Compact and the U.S.-RMI Compact, Congress understands that
the Government of the Federated States of Micronesia and the
Government of the Republic of the Marshall Islands will not
permit any other government or any nongovernmental party to
conduct, in the Republic of the Marshall Islands or in the
Federated States of Micronesia, any of the activities
specified in subsection (a) of section 314 of the U.S.-FSM
Compact and the U.S.-RMI Compact.
(e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact
on the State of Hawaii, Guam, the Commonwealth of the
Northern Mariana Islands and American Samoa; Related
Authorization and Continuing Appropriation.--
(1) Statement of congressional intent.--In reauthorizing
the U.S.-FSM Compact and the U.S.-RMI Compact, it is not the
intent of Congress to cause any adverse consequences for an
affected jurisdiction.
(2) Definitions.--For the purposes of this title--
(A) the term ``affected jurisdiction'' means American
Samoa, Guam, the Commonwealth of the Northern Mariana
Islands, or the State of Hawaii; and
(B) the term ``qualified nonimmigrant'' means a person, or
their children under the age of 18, admitted or resident
pursuant to section 141 of the U.S.-RMI or U.S.-FSM Compact,
or section 141 of the Palau Compact who, as of a date
referenced in the most recently published enumeration is a
resident of an affected jurisdiction. As used in this
subsection, the term ``resident'' shall be a person who has a
``residence,'' as that term is defined in section 101(a)(33)
of the Immigration and Nationality Act, as amended.
(3) Authorization and continuing appropriation.--There is
hereby authorized and appropriated to the Secretary of the
Interior, out of any funds in the Treasury not otherwise
appropriated, to remain available until expended, for each
fiscal year from 2004 through 2023, $30,000,000 for grants to
affected jurisdictions to aid in defraying costs incurred by
affected jurisdictions as a result of increased demands
placed on health, educational, social, or public safety
services or infrastructure related to such services due to
the residence in affected jurisdictions of qualified
nonimmigrants from the Republic of the Marshall Islands, the
Federated States of Micronesia, or the Republic of Palau. The
grants shall be--
(A) awarded and administered by the Department of the
Interior, Office of Insular Affairs, or any successor
thereto, in accordance with regulations, policies and
procedures applicable to grants so awarded and administered,
and
(B) used only for health, educational, social, or public
safety services, or infrastructure related to such services,
specifically affected by qualified nonimmigrants.
(4) Enumeration.--The Secretary of the Interior shall
conduct periodic enumerations of qualified nonimmigrants in
each affected jurisdiction. The enumerations--
(A) shall be conducted at such intervals as the Secretary
of the Interior shall determine, but no less frequently than
every five years, beginning in fiscal year 2003;
(B) shall be supervised by the United States Bureau of the
Census or such other organization as the Secretary of the
Interior may select; and
(C) after fiscal year 2003, shall be funded by the
Secretary of the Interior by deducting such sums as are
necessary, but not to exceed $300,000 as adjusted for
inflation pursuant to section 217 of the U.S. FSM Compact
with fiscal year 2003 as the base year, per enumeration, from
funds appropriated pursuant to the authorization contained in
paragraph (3) of this subsection.
(5) Allocation.--The Secretary of the Interior shall
allocate to the government of each affected jurisdiction, on
the basis of the results of the most recent enumeration,
grants in an aggregate amount equal to the total amount of
funds appropriated under paragraph (3) of this subsection, as
reduced by any deductions authorized by subparagraph (C) of
paragraph (4) of this subsection, multiplied by a ratio
derived by dividing the number of qualified nonimmigrants in
such affected jurisdiction by the total number of qualified
nonimmigrants in all affected jurisdictions.
(6) Authorization for health care reimbursement.--There are
hereby authorized to be appropriated to the Secretary of the
Interior such sums as may be necessary to reimburse health
care institutions in the affected jurisdictions for costs
resulting from the migration of citizens of the Republic of
the Marshall Islands, the Federated States of Micronesia and
the Republic of Palau to the affected jurisdictions as a
result of the implementation of the Compact of Free
Association, approved by Public Law 99-239, or the approval
of the U.S.-FSM Compact and the U.S.-RMI Compact by this
resolution.
(7) Use of dod medical facilities and national health
service corps.--
(A) DOD medical facilities.--The Secretary of Defense shall
make available, on a space available and reimbursable basis,
the medical facilities of the Department of Defense for use
by citizens of the Federated States of Micronesia and the
Republic of the Marshall Islands who are properly referred to
the facilities by government authorities responsible for
provision of medical services in the Federated States of
Micronesia, the Republic of the Marshall Islands, the
Republic of Palau and the affected jurisdictions.
(B) National health service corps.--The Secretary of Health
and Human Services shall continue to make the services of the
National Health Service Corps available to the residents of
the Federated States of Micronesia and the Republic of the
Marshall Islands to the same extent and for so long as such
services are authorized to be provided to persons residing in
any other areas within or outside the United States.
(C) Authorization of appropriations.--There are authorized
to be appropriated to carry out this paragraph such sums as
are necessary for each fiscal year.
(8) Reporting requirement.--Not later than one year after
the date of enactment of this joint resolution, and at one
year intervals thereafter, the Governors of Guam, the State
of Hawaii, the Commonwealth of the Northern Mariana Islands,
and American Samoa may provide to the Secretary of the
Interior by February 1 of each year their comments with
respect to the impacts of the Compacts on their respective
jurisdiction. The Secretary of the Interior, upon receipt of
any such comments, shall report to the Congress not later
than May 1 of each year to include the following:
(A) The Governor's comments on the impacts of the Compacts
as well as the Administration's analysis of such impact.
(B) The Administration views on any recommendations for
corrective action to eliminate those consequences as proposed
by such Governors.
(C) With regard to immigration, statistics concerning the
number of persons availing themselves of the rights described
in section 141(a) of the Compact during the year covered by
each report.
(D) With regard to trade, an analysis of the impact on the
economy of American Samoa resulting from imports of canned
tuna into the United States from the Federated States of
Micronesia, and the Republic of the Marshall Islands.
(9) Reconciliation of unreimbursed impact expenses.--
(A) In general.--Notwithstanding any other provision of
law, the President, to address previously accrued and
unreimbursed impact expenses, may at the request of the
Governor of Guam or the Governor of the Commonwealth of the
Northern Mariana Islands, reduce, release, or waive all or
part of any amounts owed by the Government of Guam or the
Government of the Commonwealth of the Northern Mariana
Islands (or either government's autonomous agencies or
instrumentalities), respectively, to any department, agency,
independent agency, office, or instrumentality of the United
States.
(B) Terms and conditions.--
(i) Substantiation of impact costs.--Not later than 120
days after the date of the enactment of this resolution, the
Governor of Guam and the Governor of the Commonwealth of the
Northern Mariana Islands shall each submit to the Secretary
of the Interior a report, prepared in consultation with an
independent accounting firm, substantiating unreimbursed
impact expenses claimed for the period from January 14, 1986,
through September 30, 2003. Upon request of the Secretary of
the Interior, the Governor of Guam and the Governor of the
Commonwealth of the Northern Mariana Islands shall submit to
the Secretary of the Interior copies of all documents upon
which the report submitted by that Governor under this clause
was based.
(ii) Congressional notification.--The President shall
notify Congress of his intent to exercise the authority
granted in subparagraph (A).
(iii) Congressional review and comment.--Any reduction,
release, or waiver under this Act shall not take effect until
60 days after the President notifies Congress of his intent
to approve a request of the Governor of Guam or the Governor
of the Commonwealth of the Northern Mariana Islands. In
exercising his authority under this section and in
determining whether to give final approval to a request, the
President shall take into consideration comments he may
receive after Congressional review.
(iv) Expiration.--The authority granted in subparagraph (A)
shall expire on February 28, 2005.
(10) Authorization of appropriations for grants.--There are
hereby authorized to the Secretary of the Interior for each
of fiscal years 2004 through 2023 such sums as may be
necessary for grants to the governments of Guam, the State of
Hawaii, the Commonwealth of the Northern Mariana Islands, and
American Samoa, as a result of increased demands placed on
educational, social, or public safety services or
infrastructure related to service due to the presence in
Guam, Hawaii, the Commonwealth of the Northern Mariana
Islands, and American Samoa of qualified nonimmigrants from
the Federated States of Micronesia, the Republic of the
Marshall Islands, and the Republic of Palau.
(f) Foreign Loans.--Congress hereby reaffirms the United
States position that the United States Government is not
responsible for foreign loans or debt obtained by the
Governments of the Federated States of Micronesia and the
Republic of the Marshall Islands.
(g) Sense of Congress Concerning Funding of Public
Infrastructure.--It is the sense of Congress that not less
than 30 percent of the United States annual grant assistance
provided under section 211 of the Compact of Free
Association, as amended, between the Government of the United
States of America and the Government of the Federated States
of Micronesia, and not less than 30 percent of the total
amount of section 211 funds allocated to each of the States
of the Federated States of Micronesia, shall be invested in
infrastructure improvements and maintenance in accordance
with section 211(a)(6). It is further the sense of Congress
that not less than 30 percent of the United States annual
grant assistance provided under section 211 of the Compact of
Free Association, as amended, between the Government of the
United States of America and the Government of the Republic
of the Marshall Islands, shall be invested in infrastructure
improvements and maintenance in accordance with section
211(d).
[[Page H11729]]
(h) Reports and Reviews.--
(1) Report by the president.--Not later than the end of the
first full calendar year following enactment of this
resolution, and not later than December 31 of each year
thereafter, the President shall report to Congress regarding
the Federated States of Micronesia and the Republic of the
Marshall Islands, including but not limited to--
(A) general social, political, and economic conditions,
including estimates of economic growth, per capita income,
and migration rates;
(B) the use and effectiveness of United States financial,
program, and technical assistance;
(C) the status of economic policy reforms including but not
limited to progress toward establishing self-sufficient tax
rates;
(D) the status of the efforts to increase investment
including: the rate of infrastructure investment of U.S.
financial assistance under the U.S.-FSM Compact and the U.S.-
RMI Compact; non-U.S. contributions to the trust funds, and
the level of private investment; and
(E) recommendations on ways to increase the effectiveness
of United States assistance and to meet overall economic
performance objectives, including, if appropriate,
recommendations to Congress to adjust the inflation rate or
to adjust the contributions to the Trust Funds based on non-
U.S. contributions.
(2) Review.--During the year of the fifth, tenth, and
fifteenth anniversaries of the date of enactment of this
resolution, the Government of the United States shall review
the terms of the respective Compacts and consider the overall
nature and development of the U.S.-FSM and U.S.-RMI
relationships including the topics set forth in subparagraphs
(A) through (E) of paragraph (1). In conducting the reviews,
the Government of the United States shall consider the
operating requirements of the Government of the Federated
States of Micronesia and the Government of the Republic of
the Marshall Islands and their progress in meeting the
development objectives set forth in their respective
development plans. The President shall include in the annual
reports to Congress for the years following the reviews the
comments of the Government of the Federated States of
Micronesia and the Government of the Republic of the Marshall
Islands on the topics described in this paragraph, the
President's response to the comments, the findings resulting
from the reviews, and any recommendations for actions to
respond to such findings.
(3) By the comptroller general.--Not later than the date
that is three years after the date of enactment of this joint
resolution, and every 5 years thereafter, the Comptroller
General of the United States shall submit to Congress a
report on the Federated States of Micronesia and the Republic
of the Marshall Islands including the topics set forth in
paragraphs (1) (A) through (E) above, and on the
effectiveness of administrative oversight by the United
States.
(i) Construction of Section 141(f).--Section 141(f)(2) of
the Compact of Free Association, as amended, between the
Government of the United States of America and the Government
of the Federated States of Micronesia and of the Compact of
Free Association, as amended, between the Government of the
United States of America and the Government of the Republic
of the Marshall Islands, shall be construed as though, after
``may by regulations prescribe'', there were included the
following: ``, except that any such regulations that would
have a significant effect on the admission, stay and
employment privileges provided under this section shall not
become effective until 90 days after the date of transmission
of the regulations to the Committee on Energy and Natural
Resources and the Committee on the Judiciary of the Senate
and the Committee on Resources, the Committee on
International Relations, and the Committee on the Judiciary
of the House of Representatives''.
(j) Inflation Adjustment.--As of Fiscal Year 2015, if the
United States Gross Domestic Product Implicit Price Deflator
average for Fiscal Years 2009 through 2013 is greater than
United States Gross Domestic Product Implicit Price Deflator
average for Fiscal Years 2004 through 2008 (as reported in
the Survey of Current Business or subsequent publication and
compiled by the Department of Interior), then section 217 of
the U.S.-FSM Compact, paragraph 5 of Article II of the U.S.-
FSM Fiscal Procedures Agreement, section 218 of the U.S.-RMI
Compact, and paragraph 5 of Article II of the U.S.-RMI Fiscal
Procedures Agreement shall be construed as if ``the full''
appeared in place of ``two-thirds of the'' each place those
words appear. If an inflation adjustment is made under this
subsection, the base year for calculating the inflation
adjustment shall be fiscal year 2014.
(k) Participation by Secondary Schools in the Armed
Services Vocational Aptitude Battery (ASVAB) Student Testing
Program.--In furtherance of the provisions of Title Three,
Article IV, Section 341 of the U.S.-FSM and the U.S.-RMI
Compacts, the purpose of which is to establish the privilege
to volunteer for service in the U.S. Armed Forces, it is the
sense of Congress that, to facilitate eligibility of FSM and
RMI secondary school students to qualify for such service,
the Department of Defense may extend the Armed Services
Vocational Aptitude Battery (ASVAB) Student Testing Program
(STP) and the ASVAB Career Exploration Program to selected
secondary Schools in the FSM and the RMI to the extent such
programs are available to Department of Defense Dependent
Schools located in foreign jurisdictions.
SEC. 105. SUPPLEMENTAL PROVISIONS.
(a) Domestic Program Requirements.--Except as may otherwise
be provided in this joint resolution, all United States
Federal programs and services extended to or operated in the
Federated States of Micronesia or the Republic of the
Marshall Islands are and shall remain subject to all
applicable criteria, standards, reporting requirements,
auditing procedures, and other rules and regulations
applicable to such programs when operating in the United
States (including its territories and commonwealths).
(b) Relations With the Federated States of Micronesia and
the Republic of the Marshall Islands.--
(1) Appropriations made pursuant to Article I of Title Two
and subsection (a)(2) of section 221 of article II of Title
Two of the U.S.-FSM Compact and the U.S.-RMI Compact shall be
made to the Secretary of the Interior, who shall have the
authority necessary to fulfill his responsibilities for
monitoring and managing the funds so appropriated consistent
with the U.S.-FSM Compact and the U.S.-RMI Compact, including
the agreements referred to in section 462(b)(4) of the U.S.-
FSM Compact and U.S.-RMI Compact (relating to Fiscal
Procedures) and the agreements referred to in section
462(b)(5) of the U.S.-FSM Compact and the U.S.-RMI Compact
(regarding the Trust Fund).
(2) Appropriations made pursuant to subsections (a)(1) and
(a)(3) through (6) of section 221 of Article II of Title Two
of the U.S.-FSM Compact and subsection (a)(1) and (a)(3)
through (5) of the U.S.-RMI Compact shall be made directly to
the agencies named in those subsections.
(3) Appropriations for services and programs referred to in
subsection (b) of section 221 of Article II of Title Two of
the U.S.-FSM Compact or U.S.-RMI Compact and appropriations
for services and programs referred to in sections 105(f) and
108(a) of this joint resolution shall be made to the relevant
agencies in accordance with the terms of the appropriations
for such services and programs.
(4) Federal agencies providing programs and services to the
Federated States of Micronesia and the Republic of the
Marshall Islands shall coordinate with the Secretaries of the
Interior and State regarding provision of such programs and
services. The Secretaries of the Interior and State shall
consult with appropriate officials of the Asian Development
Bank and with the Secretary of the Treasury regarding overall
economic conditions in the Federated States of Micronesia and
the Republic of the Marshall Islands and regarding the
activities of other donors of assistance to the Federated
States of Micronesia and the Republic of the Marshall
Islands.
(5) United States Government employees in either the
Federated States of Micronesia or the Republic of the
Marshall Islands are subject to the authority of the United
States Chief of Mission, including as elaborated in section
207 of the Foreign Service Act and the President's Letter of
Instruction to the United States Chief of Mission and any
order or directive of the President in effect from time to
time.
(6) Interagency group on freely associated states'
affairs.--
(A) In general.--The President is hereby authorized to
appoint an Interagency Group on Freely Associated States'
Affairs to provide policy guidance and recommendations on
implementation of the U.S.-FSM Compact and the U.S.-RMI
Compact to Federal departments and agencies.
(B) Secretaries.--It is the sense of Congress that the
Secretary of State and the Secretary of the Interior shall be
represented on the Interagency Group.
(7) United states appointees to joint committees.--
(A) Joint economic management committee.--
(i) In general.--The three United States appointees (United
States chair plus two members) to the Joint Economic
Management Committee provided for in section 213 of the U.S.-
FSM Compact and Article III of the U.S.-FSM Fiscal Procedures
Agreement referred to in section 462(b)(4) of the U.S.-FSM
Compact shall be United States Government officers or
employees.
(ii) Departments.--It is the sense of Congress that 2 of
the 3 appointees should be designated from the Department of
State and the Department of the Interior, and that U.S.
officials of the Asian Development Bank shall be consulted in
order to properly coordinate U.S. and Asian Development Bank
financial, program, and technical assistance.
(iii) Additional scope.--Section 213 of the U.S.-FSM
Compact shall be construed to read as though the phrase,
``the implementation of economic policy reforms to encourage
investment and to achieve self-sufficient tax rates,'' were
inserted after ``with particular focus on those parts of the
plan dealing with the sectors identified in subsection (a) of
section 211''.
(B) Joint economic management and financial accountability
committee.--
(i) In general.--The three United States appointees (United
States chair plus two members) to the Joint Economic
Management and Financial Accountability Committee provided
for in section 214 of the U.S.-RMI Compact and Article III of
the U.S.-RMI Fiscal Procedures Agreement referred to in
section 462(b)(4) of the U.S.-RMI Compact shall be United
States Government officers or employees.
(ii) Departments.--It is the sense of Congress that 2 of
the 3 appointees should be designated from the Department of
State and the Department of the Interior, and that U.S.
officials of the Asian Development Bank shall be consulted in
order to properly coordinate U.S. and Asian Development Bank
financial, program, and technical assistance.
(iii) Additional scope.--Section 214 of the U.S.-RMI
Compact shall be construed to read as though the phrase,
``the implementation of economic policy reforms to encourage
investment and to achieve self-sufficient tax rates,'' were
inserted after ``with particular focus on those parts of the
framework dealing with the sectors and areas identified in
subsection (a) of section 211''.
(8) Oversight and coordination.--It is the sense of
Congress that the Secretary of State
[[Page H11730]]
and the Secretary of the Interior shall ensure that there are
personnel resources committed in the appropriate numbers and
locations to ensure effective oversight of United States
assistance, and effective coordination of assistance among
United States agencies and with other international donors
such as the Asian Development Bank.
(9) The United States voting members (United States chair
plus two or more members) of the Trust Fund Committee
appointed by the Government of the United States pursuant to
Article 7 of the Trust Fund Agreement implementing section
215 of the U.S.-FSM Compact and referred to in section
462(b)(5) of the U.S.-FSM Compact and any alternates
designated by the Government of the United States shall be
United States Government officers or employees. The United
States voting members (United States chair plus two or more
members) of the Trust Fund Committee appointed by the
Government of the United States pursuant to Article 7 of the
Trust Fund Agreement implementing section 216 of the U.S.-RMI
Compact and referred to in section 462(b)(5) of the U.S.-RMI
Compact and any alternates designated by the Government of
the United States shall be United States Government officers
or employees. It is the sense of Congress that the appointees
should be designated from the Department of State, the
Department of the Interior, and the Department of the
Treasury.
(10) The Trust Fund Committee provided for in Article 7 of
the U.S.-FSM Trust Fund Agreement implementing section 215 of
the U.S.-FSM Compact shall be a nonprofit corporation
incorporated under the laws of the District of Columbia. To
the extent that any law, rule, regulation or ordinance of the
District of Columbia, or of any State or political
subdivision thereof in which the Trust Fund Committee is
incorporated or doing business, impedes or otherwise
interferes with the performance of the functions of the Trust
Fund Committee pursuant to this joint resolution, such law,
rule, regulation, or ordinance shall be deemed to be
preempted by this joint resolution. The Trust Fund Committee
provided for in Article 7 of the U.S.-RMI Trust Fund
Agreement implementing section 216 of the U.S.-RMI Compact
shall be a non-profit corporation incorporated under the laws
of the District of Columbia. To the extent that any law,
rule, regulation or ordinance of the District of Columbia, or
of any State or political subdivision thereof in which the
Trust Fund Committee is incorporated or doing business,
impedes or otherwise interferes with the performance of the
functions of the Trust Fund Committee pursuant to this joint
resolution, such law, rule, regulation, or ordinance shall be
deemed to be preempted by this joint resolution.
(c) Continuing Trust Territory Authorization.--The
authorization provided by the Act of June 30, 1954, as
amended (68 Stat. 330) shall remain available after the
effective date of the Compact with respect to the Federated
States of Micronesia and the Republic of the Marshall Islands
for the following purposes:
(1) Prior to October 1, 1986, for any purpose authorized by
the Compact or the joint resolution of January 14, 1986
(Public Law 99-239).
(2) Transition purposes, including but not limited to,
completion of projects and fulfillment of commitments or
obligations; termination of the Trust Territory Government
and termination of the High Court; health and education as a
result of exceptional circumstances; ex gratia contributions
for the populations of Bikini, Enewetak, Rongelap, and Utrik;
and technical assistance and training in financial
management, program administration, and maintenance of
infrastructure.
(d) Survivability.--In furtherance of the provisions of
Title Four, Article V, sections 452 and 453 of the U.S.-FSM
Compact and the U.S.-RMI Compact, any provisions of the U.S.-
FSM Compact or the U.S.-RMI Compact which remain effective
after the termination of the U.S.-FSM Compact or U.S.-RMI
Compact by the act of any party thereto and which are
affected in any manner by provisions of this title shall
remain subject to such provisions.
(e) Noncompliance Sanctions; Actions Incompatible With
United States Authority.--Congress expresses its
understanding that the Governments of the Federated States of
Micronesia and the Republic of the Marshall Islands will not
act in a manner incompatible with the authority and
responsibility of the United States for security and defense
matters in or related to the Federated States of Micronesia
or the Republic of the Marshall Islands pursuant to the U.S.-
FSM Compact or the U.S.-RMI Compact, including the agreements
referred to in sections 462(a)(2) of the U.S.-FSM Compact and
462(a)(5) of the U.S.-RMI Compact. Congress further expresses
its intention that any such act on the part of either such
Government will be viewed by the United States as a material
breach of the U.S.-FSM Compact or U.S.-RMI Compact. The
Government of the United States reserves the right in the
event of such a material breach of the U.S.-FSM Compact by
the Government of the Federated States of Micronesia or the
U.S.-RMI Compact by the Government of the Republic of the
Marshall Islands to take action, including (but not limited
to) the suspension in whole or in part of the obligations of
the Government of the United States to that Government.
(f) Continuing Programs and Laws.--
(1) Federated states of micronesia and republic of the
marshall islands.--In addition to the programs and services
set forth in section 221 of the Compact, and pursuant to
section 222 of the Compact, the programs and services of the
following agencies shall be made available to the Federated
States of Micronesia and to the Republic of the Marshall
Islands:
(A) Continuation of the Programs and Services of the
Federal Emergency management Agency.--Except as provided in
clauses (ii) and (iii), the programs and services of the
Department of Homeland Security, Federal Emergency Management
Agency shall continue to be available to the Federated States
of Micronesia and the Republic of the Marshall Islands to the
same extent as such programs and services were available in
fiscal year 2003.
(i) Paragraph (a)(6) of section 221 of the U.S.-FSM Compact
and paragraph (a)(5) of the U.S.-RMI Compact shall each be
construed as though the paragraph reads as follows: ``the
Department of Homeland Security, United States Federal
Emergency Management Agency.''
(ii) Subsection (d) of section 211 of the U.S.-FSM Compact
and subsection (e) of section 211 of the U.S.-RMI Compact
shall each be construed as though the subsection reads as
follows: ``Not more than $200,000 (as adjusted for inflation
pursuant to section 217 of the U.S.-FSM Compact and section
218 of the U.S.-RMI Compact) shall be made available by the
Secretary of the Interior to the Department of Homeland
Security, Federal Emergency Management Agency to facilitate
the activities of the Federal Emergency Management Agency in
accordance with and to the extent provided in the Federal
Programs and Services Agreement.''
(iii) The Secretary of State, in consultation with the
Department of Homeland Security and the Federal Emergency
Management Agency, shall immediately undertake negotiations
with the Government of the Federated States of Micronesia and
the Government of the Republic of the Marshall Islands
regarding disaster assistance and shall report to the
appropriate committees of Congress no later than June 30,
2004, on the outcome of such negotiations, including
recommendations for changes to law regarding disaster
assistance under the U.S.-FSM Compact and the U.S.-RMI
Compact, and including subsidiary agreements as needed to
implement such changes to law. If an agreement is not
concluded, and legislation enacted which reflects such
agreement, before the date which is five years after the date
of enactment of this Joint Resolution, the following
provisions shall apply:
``Paragraph (a)(6) of section 221 of the U.S.- FSM Compact
and paragraph (a)(5) of section 221 of the U.S.-RMI Compact
shall each be construed and applied as if each provision
reads as follows:
``The U.S. Agency for International Development shall be
responsible for the provision of emergency and disaster
relief assistance in accordance with its statutory
authorities, regulations and policies. The Republic of the
Marshall Islands and the Federated States of Micronesia may
additionally request that the President make an emergency or
major disaster declaration. If the President declares an
emergency or major disaster, the Department of Homeland
Security (DHS), the Federal Emergency Management Agency
(FEMA) and the U.S. Agency for International Development
shall jointly (a) assess the damage caused by the emergency
or disaster and (b) prepare a reconstruction plan including
an estimate of the total amount of Federal resources that are
needed for reconstruction. Pursuant to an interagency
agreement, FEMA shall transfer funds from the Disaster Relief
Fund in the amount of the estimate, together with an amount
to be determined for administrative expenses, to the U.S.
Agency for International Development, which shall carry out
reconstruction activities in the Republic of the Marshall
Islands and the Federated States of Micronesia in accordance
with the reconstruction plan. For purposes of Disaster Relief
Fund appropriations, the funding of the activities to be
carried out pursuant to this paragraph shall be deemed to be
necessary expenses in carrying out the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq).
``DHS may provide to the Republic of the Marshall Islands
and the Federated States of Micronesia preparedness grants to
the extent that such assistance is available to the States of
the United States. Funding for this assistance may be made
available from appropriations made to DHS for preparedness
activities.''.
(B) Treatment of additional programs.--
(i) Consultation.--The United States appointees to the
committees established pursuant to section 213 of the U.S.-
FSM Compact and section 214 of the U.S.-RMI Compact shall
consult with the Secretary of Education regarding the
objectives, use, and monitoring of United States financial,
program, and technical assistance made available for
educational purposes.
(ii) Continuing programs.--The Government of the United
States--
(I) shall continue to make available to the Federated
States of Micronesia and the Republic of the Marshall Islands
for fiscal years 2004 through 2023, the services to
individuals eligible for such services under the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et seq.) to
the extent that such services continue to be available to
individuals in the United States; and
(II) shall continue to make available to eligible
institutions in the Federated States of Micronesia and the
Republic of the Marshall Islands, and to students enrolled in
such institutions, and in institutions in the United States
and its territories, for fiscal years 2004 through 2023,
grants under subpart 1 of part A of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070a et seq.) to the extent
that such grants continue to be available to institutions and
students in the United States.
(iii) Supplemental education grants.--In lieu of
eligibility for appropriations under part A of title I of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.), title I of the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.), other than subtitle C of that
Act (29 U.S.C. 2881 et seq.) (Job Corps), title II of the
Workforce Investment Act of 1998 (20 U.S.C. 9201 et seq.;
commonly known as the Adult Education and Family Literacy
Act), title
[[Page H11731]]
I of the Carl D. Perkins Vocational and Technical Education
Act of 1998 (20 U.S.C. 2321 et seq.), the Head Start Act (42
U.S.C. 9831 et seq.), and subpart 3 of part A, and part C, of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070b
et seq., 42 U.S.C. 2751 et seq.), there are authorized to be
appropriated to the Secretary of Education to supplement the
education grants under section 211(a)(1) of the U.S.-FSM
Compact and section 211(a)(1) of the U.S.-RMI Compact,
respectively, the following amounts:
(I) $12,230,000 for the Federated States of Micronesia for
fiscal year 2005 and an equivalent amount, as adjusted for
inflation under section 217 of the U.S.-FSM Compact, for each
of fiscal years 2005 through 2023; and
(II) $6,100,000 for the Republic of the Marshall Islands
for fiscal year 2005 and an equivalent amount, as adjusted
for inflation under section 218 of the U.S.-RMI Compact, for
each of fiscal years 2005 through 2023,
except that citizens of the Federated States of Micronesia
and the Republic of the Marshall Islands who attend an
institution of higher education in the United States or its
territories, the Federated States of Micronesia, or the
Republic of the Marshall Islands on the date of enactment of
this joint resolution may continue to receive assistance
under such subpart 3 of part A or part C, for not more than 4
academic years after such date to enable such citizens to
complete their program of study.
(iv) Fiscal procedures.--Appropriations made pursuant to
clause (iii) shall be used and monitored in accordance with
an agreement between the Secretary of Education, the
Secretary of Labor, the Secretary of Health and Human
Services, and the Secretary of the Interior, and in
accordance with the respective Fiscal Procedures Agreements
referred to in section 462(b)(4) of the U.S.-FSM Compact and
section 462(b)(4) of the U.S.-RMI Compact. The agreement
between the Secretary of Education, the Secretary of Labor,
the Secretary of Health and Human Services, and the Secretary
of the Interior shall provide for the transfer, not later
than 60 days after the appropriations made pursuant to clause
(iii) become available to the Secretary of Education, the
Secretary of Labor, and the Secretary of Health and Human
Services, from the Secretary of Education, the Secretary of
Labor, and the Secretary of Health and Human Services, to the
Secretary of the Interior for disbursement.
(v) Formula education grants.--For fiscal years 2005
through 2023, except as provided in clause (ii) and the
exception provided under clause (iii), the Governments of the
Federated States of Micronesia and the Republic of the
Marshall Islands shall not receive any grant under any
formula-grant program administered by the Secretary of
Education or the Secretary of Labor, nor any grant provided
through the Head Start Act (42 U.S.C. 9831 et seq.)
administered by the Secretary of Health and Human Services.
(vi) Transition.--For fiscal year 2004, the Governments of
the Federated States of Micronesia and the Republic of the
Marshall Islands shall continue to be eligible for
appropriations and to receive grants under the provisions of
law specified in clauses (ii) and (iii).
(vii) Technical assistance.--The Federated States of
Micronesia and the Republic of the Marshall Islands may
request technical assistance from the Secretary of Education,
the Secretary of Health and Human Services, or the Secretary
of Labor the terms of which, including reimbursement, shall
be negotiated with the participation of the appropriate
cabinet officer for inclusion in the Federal Programs and
Services Agreement.
(viii) Continued eligibility for competitive grants.--The
Governments of the Federated States of Micronesia and the
Republic of the Marshall Islands shall continue to be
eligible for competitive grants administered by the Secretary
of Education, the Secretary of Health and Human Services, and
the Secretary of Labor to the extent that such grants
continue to be available to State and local governments in
the United States.
(ix) Applicability.--The Republic of Palau shall remain
eligible for appropriations and to receive grants under the
provisions of law specified in clauses (ii) and (iii) until
the end of fiscal year 2007, to the extent the Republic of
Palau was so eligible under such provisions in fiscal year
2003.
(C) The Legal Services Corporation.
(D) The Public Health Service.
(E) The Rural Housing Service (formerly, the Farmers Home
Administration) in the Marshall Islands and each of the four
States of the Federated States of Micronesia: Provided, That
in lieu of continuation of the program in the Federated
States of Micronesia, the President may agree to transfer to
the Government of the Federated States of Micronesia without
cost, the portfolio of the Rural Housing Service applicable
to the Federated States of Micronesia and provide such
technical assistance in management of the portfolio as may be
requested by the Federated States of Micronesia).
(2) Tort claims.--The provisions of section 178 of the
U.S.-FSM Compact and the U.S.-RMI Compact regarding
settlement and payment of tort claims shall apply to
employees of any Federal agency of the Government of the
United States (and to any other person employed on behalf of
any Federal agency of the Government of the United States on
the basis of a contractual, cooperative, or similar
agreement) which provides any service or carries out any
other function pursuant to or in furtherance of any
provisions of the U.S.-FSM Compact or the U.S.-RMI Compact or
this joint resolution, except for provisions of Title Three
of the Compact and of the subsidiary agreements related to
such Title, in such area to which such Agreement formerly
applied.
(3) PCB cleanup.--The programs and services of the
Environmental Protection Agency regarding PCBs shall, to the
extent applicable, as appropriate, and in accordance with
applicable law, be construed to be made available to such
islands for the cleanup of PCBs imported prior to 1987. The
Secretary of the Interior and the Secretary of Defense shall
cooperate and assist in any such cleanup activities.
(g) College of Micronesia.--Until otherwise provided by Act
of Congress, or until termination of the U.S.-FSM Compact and
the U.S.-RMI Compact, the College of Micronesia shall retain
its status as a land-grant institution and its eligibility
for all benefits and programs available to such land-grant
institutions.
(h) Trust Territory Debts to U.S. Federal Agencies.--
Neither the Government of the Federated States of Micronesia
nor the Government of the Marshall Islands shall be required
to pay to any department, agency, independent agency, office,
or instrumentality of the United States any amounts owed to
such department, agency, independent agency, office, or
instrumentality by the Government of the Trust Territory of
the Pacific Islands as of the effective date of the Compact.
There is authorized to be appropriated such sums as may be
necessary to carry out the purposes of this subsection.
(i) Judicial Training.--
(1) In general.--In addition to amounts provided under
section 211(a)(4) of the U.S.-FSM Compact and the U.S.-RMI
Compact, the Secretary of the Interior shall annually provide
$300,000 for the training of judges and officials of the
judiciary in the Federated States of Micronesia and the
Republic of the Marshall Islands in cooperation with the
Pacific Islands Committee of the Ninth Circuit Judicial
Council and in accordance with and to the extent provided in
the Federal Programs and Services Agreement and the Fiscal
Procedure Agreement, as appropriate.
(2) Authorization and continuing appropriation.--There is
hereby authorized and appropriated to the Secretary of the
Interior, out of any funds in the Treasury not otherwise
appropriated, to remain available until expended, for each
fiscal year from 2004 through 2023, $300,000, as adjusted for
inflation under section 218 of the U.S.-FSM Compact and the
U.S.-RMI Compact, to carry out the purposes of this section.
(j) Technical Assistance.--Technical assistance may be
provided pursuant to section 224 of the U.S.-FSM Compact or
the U.S.-RMI Compact by Federal agencies and institutions of
the Government of the United States to the extent such
assistance may be provided to States, territories, or units
of local government. Such assistance by the Forest Service,
the Natural Resources Conservation Service, the Fish and
Wildlife Service, the National Marine Fisheries Service, the
United States Coast Guard, and the Advisory Council on
Historic Preservation, the Department of the Interior, and
other agencies providing assistance under the National
Historic Preservation Act (80 Stat. 915; 16 U.S.C. 470-470t),
shall be on a nonreimbursable basis. During the period the
U.S.-FSM Compact and the U.S.-RMI Compact are in effect, the
grant programs under the National Historic Preservation Act
shall continue to apply to the Federated States of Micronesia
and the Republic of the Marshall Islands in the same manner
and to the same extent as prior to the approval of the
Compact. Any funds provided pursuant to sections 102(a),
103(a), 103(b), 103(f), 103(g), 103(h), 103(j), 105(c),
105(g), 105(h), 105(i), 105(j), 105(k), 105(l), and 105(m) of
this joint resolution shall be in addition to and not charged
against any amounts to be paid to either the Federated States
of Micronesia or the Republic of the Marshall Islands
pursuant to the U.S.-FSM Compact, the U.S.-RMI Compact, or
their related subsidiary agreements.
(k) Prior Service Benefits Program.--Notwithstanding any
other provision of law, persons who on January 1, 1985, were
eligible to receive payment under the Prior Service Benefits
Program established within the Social Security System of the
Trust Territory of the Pacific Islands because of their
services performed for the United States Navy or the
Government of the Trust Territory of the Pacific Islands
prior to July 1, 1968, shall continue to receive such
payments on and after the effective date of the Compact.
(l) Indefinite Land Use Payments.--There are authorized to
be appropriated such sums as may be necessary to complete
repayment by the United States of any debts owed for the use
of various lands in the Federated States of Micronesia and
the Marshall Islands prior to January 1, 1985.
(m) Communicable Disease Control Program.--There are
authorized to be appropriated for grants to the Government of
the Federated States of Micronesia, the Government of the
Republic of the Marshall Islands, and the governments of the
affected jurisdictions, such sums as may be necessary for
purposes of establishing or continuing programs for the
control and prevention of communicable diseases, including
(but not limited to) cholera, tuberculosis, and Hansen's
Disease. The Secretary of the Interior shall assist the
Government of the Federated States of Micronesia, the
Government of the Republic of the Marshall Islands and the
governments of the affected jurisdictions in designing and
implementing such a program.
(n) User Fees.--Any person in the Federated States of
Micronesia or the Republic of the Marshall Islands shall be
liable for user fees, if any, for services provided in the
Federated States of Micronesia or the Republic of the
Marshall Islands by the Government of the United States to
the same extent as any person in the United States would be
liable for fees, if any, for such services in the United
States.
(o) Treatment of Judgments of Courts of the Federated
States of Micronesia, the Republic of the Marshall Islands,
and the
[[Page H11732]]
Republic of Palau.--No judgment, whenever issued, of a court
of the Federated States of Micronesia, the Republic of the
Marshall Islands, or the Republic of Palau, against the
United States, its departments and agencies, or officials of
the United States or any other individuals acting on behalf
of the United States within the scope of their official duty,
shall be honored by the United States, or be subject to
recognition or enforcement in a court in the United States,
unless the judgment is consistent with the interpretation by
the United States of international agreements relevant to the
judgment. In determining the consistency of a judgment with
an international agreement, due regard shall be given to
assurances made by the Executive Branch to Congress of the
United States regarding the proper interpretation of the
international agreement.
(p) Establishment of Trust Funds; Expedition of Process.--
(1) In general.--The Trust Fund Agreement executed pursuant
to the U.S.-FSM Compact and the Trust Fund Agreement executed
pursuant to the U.S.-RMI Compact each provides for the
establishment of a trust fund.
(2) Method of establishment.--The trust fund may be
established by--
(A) creating a new legal entity to constitute the trust
fund; or
(B) assuming control of an existing legal entity including,
without limitation, a trust fund or other legal entity that
was established by or at the direction of the Government of
the United States, the Government of the Federated States of
Micronesia, the Government of the Republic of the Marshall
Islands, or otherwise for the purpose of facilitating or
expediting the establishment of the trust fund pursuant to
the applicable Trust Fund Agreement.
(3) Obligations.--For the purpose of expediting the
commencement of operations of a trust fund under either Trust
Fund Agreement, the trust fund may, but shall not be
obligated to, assume any obligations of an existing legal
entity and take assignment of any contract or other agreement
to which the existing legal entity is party.
(4) Assistance.--Without limiting the authority that the
United States Government may otherwise have under applicable
law, the United States Government may, but shall not be
obligated to, provide financial, technical, or other
assistance directly or indirectly to the Government of the
Federated States of Micronesia or the Government of the
Republic of the Marshall Islands for the purpose of
establishing and operating a trust fund or other legal entity
that will solicit bids from, and enter into contracts with,
parties willing to serve in such capacities as trustee,
depositary, money manager, or investment advisor, with the
intention that the contracts will ultimately be assumed by
and assigned to a trust fund established pursuant to a Trust
Fund Agreement.
SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.
(a) Assistance to U.S. Firms.--In order to assist the
Governments of the Federated States of Micronesia and of the
Republic of the Marshall Islands through private sector firms
which may be awarded contracts for construction or major
repair of capital infrastructure within the Federated States
of Micronesia or the Republic of the Marshall Islands, the
United States shall consult with the Governments of the
Federated States of Micronesia and the Republic of the
Marshall Islands with respect to any such contracts, and the
United States shall enter into agreements with such firms
whereby such firms will, consistent with applicable
requirements of such Governments--
(1) to the maximum extent possible, employ citizens of the
Federated States of Micronesia and the Republic of the
Marshall Islands;
(2) to the extent that necessary skills are not possessed
by citizens of the Federated States of Micronesia and the
Republic of the Marshall Islands, provide on the job
training, with particular emphasis on the development of
skills relating to operation of machinery and routine and
preventative maintenance of machinery and other facilities;
and
(3) provide specific training or other assistance in order
to enable the Government to engage in long-term maintenance
of infrastructure.
Assistance by such firms pursuant to this section may not
exceed 20 percent of the amount of the contract and shall be
made available only to such firms which meet the definition
of United States firm under the nationality rule for
suppliers of services of the Agency for International
Development (hereafter in this section referred to as
``United States firms''). There are authorized to be
appropriated such sums as may be necessary for the purposes
of this subsection.
(b) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to cover any
additional costs incurred by the Government of the Federated
States of Micronesia or the Republic of the Marshall Islands
if such Governments, pursuant to an agreement entered into
with the United States, apply a preference on the award of
contracts to United States firms, provided that the amount of
such preference does not exceed 10 percent of the amount of
the lowest qualified bid from a non-United States firm for
such contract.
SEC. 107. PROHIBITION.
All laws governing conflicts of interest and post-
employment of Federal employees shall apply to the
implementation of this Act.
SEC. 108. COMPENSATORY ADJUSTMENTS.
(a) Additional Programs and Services.--In addition to the
programs and services set forth in section 221 of the U.S.-
FSM Compact and the U.S.-RMI Compact, and pursuant to section
222 of the U.S.-FSM Compact and the U.S.-RMI Compact, the
services and programs of the following United States agencies
shall be made available to the Federated States of Micronesia
and the Republic of the Marshall Islands: the Small Business
Administration, Economic Development Administration, the
Rural Utilities Services (formerly Rural Electrification
Administration); the programs and services of the Department
of Labor under subtitle C of title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2881 et seq.; relating to
Job Corps); and the programs and services of the Department
of Commerce relating to tourism and to marine resource
development.
(b) Further Amounts.--
(1) The joint resolution of January 14, 1986 (Public Law
99-239) provided that the governments of the Federated States
of Micronesia and the Marshall Islands may submit to Congress
reports concerning the overall financial and economic impacts
on such areas resulting from the effect of title IV of that
joint resolution upon Title Two of the Compact. There were
authorized to be appropriated for fiscal years beginning
after September 30, 1990, such amounts as necessary, but not
to exceed $40,000,000 for the Federated States of Micronesia
and $20,000,000 for the Marshall Islands, as provided in
appropriation acts, to further compensate the governments of
such islands (in addition to the compensation provided in
subsections (a) and (b) of section 111 of the joint
resolution of January 14, 1986 (Public Law 99-239) for
adverse impacts, if any, on the finances and economies of
such areas resulting from the effect of title IV of that
joint resolution upon Title Two of the Compact. The joint
resolution of January 14, 1986 (Public Law 99-239) further
provided that at the end of the initial fifteen-year term of
the Compact, should any portion of the total amount of funds
authorized in section 111 of that resolution not have been
appropriated, such amount not yet appropriated may be
appropriated, without regard to divisions between amounts
authorized in section 111 for the Federated States of
Micronesia and for the Marshall Islands, based on either or
both such government's showing of such adverse impact, if
any, as provided in that subsection.
(2) The governments of the Federated States of Micronesia
and the Republic of the Marshall Islands may each submit no
more than one report or request for further compensation
under section 111 of the joint resolution of January 14, 1986
(Public Law 99-239) and any such report or request must be
submitted by September 30, 2009. Only adverse economic
effects occurring during the initial 15-year term of the
Compact may be considered for compensation under section 111
of the joint resolution of January 14, 1986 (Public Law 99-
239).
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION.
(a) There are authorized and appropriated to the Department
of the Interior, out of any funds in the Treasury not
otherwise appropriated, to remain available until expended,
such sums as are necessary to carry out the purposes of
sections 105(f)(1) and 105(i) of this Act, sections 211,
212(b), 215, and 217 of the U.S.-FSM Compact, and sections
211, 212, 213(b), 216, and 218 of the U.S.-RMI Compact, in
this and subsequent years.
(b) There are authorized to be appropriated to the
Departments, agencies, and instrumentalities named in
paragraphs (1) and (3) through (6) of section 221(a) of the
U.S.-FSM Compact and paragraphs (1) and (3) through (5) of
section 221(a) of the U.S.-RMI Compact, such sums as are
necessary to carry out the purposes of sections 221(a) of the
U.S.-FSM Compact and the U.S.-RMI Compact, to remain
available until expended.
SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED STATES OF
MICRONESIA, THE REPUBLIC OF THE MARSHALL
ISLANDS, AND THE REPUBLIC OF PALAU EMPLOYED BY
THE GOVERNMENT OF THE UNITED STATES IN THE
CONTINENTAL UNITED STATES.
Section 605 of Public Law 107-67 (the Treasury and General
Government Appropriations Act, 2002) is amended by striking
``or the Republic of the Philippines,'' in the last sentence
and inserting the following: ``the Republic of the
Philippines, the Federated States of Micronesia, the Republic
of the Marshall Islands, or the Republic of Palau,''.
TITLE II--COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED STATES OF
MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS
SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE FEDERATED STATES OF
MICRONESIA AND BETWEEN THE GOVERNMENT OF THE
UNITED STATES OF AMERICA AND THE GOVERNMENT OF
THE REPUBLIC OF THE MARSHALL ISLANDS.
(a) Compact of Free Association, as Amended, Between the
Government of the United States of America and the Government
of the Federated States of Micronesia.--The Compact of Free
Association, as amended, between the Government of the United
States of America and the Government of the Federated States
of Micronesia is as follows:
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF
THE FEDERATED STATES OF MICRONESIA
Affirming that their Governments and their relationship as
Governments are founded upon respect for human rights and
fundamental freedoms for all, and that the people of the
Federated States of Micronesia have the right to enjoy self-
government; and
Affirming the common interests of the United States of
America and the Federated States of
[[Page H11733]]
Micronesia in creating and maintaining their close and
mutually beneficial relationship through the free and
voluntary association of their respective Governments; and
Affirming the interest of the Government of the United
States in promoting the economic advancement and budgetary
self-reliance of the Federated States of Micronesia; and
Recognizing that their relationship until the entry into
force on November 3, 1986 of the Compact was based upon the
International Trusteeship System of the United Nations
Charter, and in particular Article 76 of the Charter; and
that pursuant to Article 76 of the Charter, the people of the
Federated States of Micronesia have progressively developed
their institutions of self-government, and that in the
exercise of their sovereign right to self-determination they,
through their freely-expressed wishes, have adopted a
Constitution appropriate to their particular circumstances;
and
Recognizing that the Compact reflected their common desire
to terminate the Trusteeship and establish a government-to-
government relationship which was in accordance with the new
political status based on the freely expressed wishes of the
people of the Federated States of Micronesia and appropriate
to their particular circumstances; and
Recognizing that the people of the Federated States of
Micronesia have and retain their sovereignty and their
sovereign right to self-determination and the inherent right
to adopt and amend their own Constitution and form of
government and that the approval of the entry of the
Government of the Federated States of Micronesia into the
Compact by the people of the Federated States of Micronesia
constituted an exercise of their sovereign right to self-
determination; and
Recognizing the common desire of the people of the United
States and the people of the Federated States of Micronesia
to maintain their close government-to-government
relationship, the United States and the Federated States of
Micronesia:
NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen
their relationship of free association by amending the
Compact, which continues to provide a full measure of self-
government for the people of the Federated States of
Micronesia; and
FURTHER AGREE that the relationship of free association
derives from and is as set forth in this Compact, as amended,
by the Governments of the United States and the Federated
States of Micronesia; and that, during such relationship of
free association, the respective rights and responsibilities
of the Government of the United States and the Government of
the Federated States of Micronesia in regard to this
relationship of free association derive from and are as set
forth in this Compact, as amended.
TITLE ONE
GOVERNMENTAL RELATIONS
Article I
Self-Government
Section 111
The people of the Federated States of Micronesia, acting
through the Government established under their Constitution,
are self-governing.
Article II
Foreign Affairs
Section 121
(a) The Government of the Federated States of Micronesia
has the capacity to conduct foreign affairs and shall do so
in its own name and right, except as otherwise provided in
this Compact, as amended.
(b) The foreign affairs capacity of the Government of the
Federated States of Micronesia includes:
(1) the conduct of foreign affairs relating to law of the
sea and marine resources matters, including the harvesting,
conservation, exploration or exploitation of living and non-
living resources from the sea, seabed or subsoil to the full
extent recognized under international law;
(2) the conduct of its commercial, diplomatic, consular,
economic, trade, banking, postal, civil aviation,
communications, and cultural relations, including
negotiations for the receipt of developmental loans and
grants and the conclusion of arrangements with other
governments and international and intergovernmental
organizations, including any matters specially benefiting its
individual citizens.
(c) The Government of the United States recognizes that the
Government of the Federated States of Micronesia has the
capacity to enter into, in its own name and right, treaties
and other international agreements with governments and
regional and international organizations.
(d) In the conduct of its foreign affairs, the Government
of the Federated States of Micronesia confirms that it shall
act in accordance with principles of international law and
shall settle its international disputes by peaceful means.
Section 122
The Government of the United States shall support
applications by the Government of the Federated States of
Micronesia for membership or other participation in regional
or international organizations as may be mutually agreed.
Section 123
(a) In recognition of the authority and responsibility of
the Government of the United States under Title Three, the
Government of the Federated States of Micronesia shall
consult, in the conduct of its foreign affairs, with the
Government of the United States.
(b) In recognition of the foreign affairs capacity of the
Government of the Federated States of Micronesia, the
Government of the United States, in the conduct of its
foreign affairs, shall consult with the Government of the
Federated States of Micronesia on matters that the Government
of the United States regards as relating to or affecting the
Government of the Federated States of Micronesia.
Section 124
The Government of the United States may assist or act on
behalf of the Government of the Federated States of
Micronesia in the area of foreign affairs as may be requested
and mutually agreed from time to time. The Government of the
United States shall not be responsible to third parties for
the actions of the Government of the Federated States of
Micronesia undertaken with the assistance or through the
agency of the Government of the United States pursuant to
this section unless expressly agreed.
Section 125
The Government of the United States shall not be
responsible for nor obligated by any actions taken by the
Government of the Federated States of Micronesia in the area
of foreign affairs, except as may from time to time be
expressly agreed.
Section 126
At the request of the Government of the Federated States of
Micronesia and subject to the consent of the receiving state,
the Government of the United States shall extend consular
assistance on the same basis as for citizens of the United
States to citizens of the Federated States of Micronesia for
travel outside the Federated States of Micronesia, the United
States and its territories and possessions.
Section 127
Except as otherwise provided in this Compact, as amended,
or its related agreements, all obligations, responsibilities,
rights and benefits of the Government of the United States as
Administering Authority which resulted from the application
pursuant to the Trusteeship Agreement of any treaty or other
international agreement to the Trust Territory of the Pacific
Islands on November 2, 1986, are, as of that date, no longer
assumed and enjoyed by the Government of the United States.
Article III
Communications
Section 131
(a) The Government of the Federated States of Micronesia
has full authority and responsibility to regulate its
domestic and foreign communications, and the Government of
the United States shall provide communications assistance as
mutually agreed.
(b) On May 24, 1993, the Government of the Federated States
of Micronesia elected to undertake all functions previously
performed by the Government of the United States with respect
to domestic and foreign communications, except for those
functions set forth in a separate agreement entered into
pursuant to this section of the Compact, as amended.
Section 132
The Government of the Federated States of Micronesia shall
permit the Government of the United States to operate
telecommunications services in the Federated States of
Micronesia to the extent necessary to fulfill the obligations
of the Government of the United States under this Compact, as
amended, in accordance with the terms of separate agreements
entered into pursuant to this section of the Compact, as
amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relationship
that exists between the United States and the Federated
States of Micronesia, under the Compact, as amended, any
person in the following categories may be admitted to,
lawfully engage in occupations, and establish residence as a
nonimmigrant in the United States and its territories and
possessions (the ``United States'') without regard to
paragraph (5) or (7)(B)(i)(II) of section 212(a) of the
Immigration and Nationality Act, as amended, 8 U.S.C.
1182(a)(5) or (7)(B)(i)(II):
(1) a person who, on November 2, 1986, was a citizen of the
Trust Territory of the Pacific Islands, as defined in Title
53 of the Trust Territory Code in force on January 1, 1979,
and has become and remains a citizen of the Federated States
of Micronesia;
(2) a person who acquires the citizenship of the Federated
States of Micronesia at birth, on or after the effective date
of the Constitution of the Federated States of Micronesia;
(3) an immediate relative of a person referred to in
paragraphs (1) or (2) of this section, provided that such
immediate relative is a naturalized citizen of the Federated
States of Micronesia who has been an actual resident there
for not less than five years after attaining such
naturalization and who holds a certificate of actual
residence, and further provided, that, in the case of a
spouse, such spouse has been married to the person referred
to in paragraph (1) or (2) of this section for at least five
years, and further provided, that the Government of the
United States is satisfied that such naturalized citizen
meets the requirement of subsection (b) of section 104 of
Public Law 99-239 as it was in effect on the day prior to the
effective date of this Compact, as amended;
(4) a naturalized citizen of the Federated States of
Micronesia who was an actual resident there for not less than
five years after attaining such naturalization and who
satisfied these requirements as of April 30, 2003, who
continues to be an actual resident and holds a certificate of
actual residence, and whose name is included in a list
furnished by the Government of the Federated States of
Micronesia to the Government of the United States no later
than the effective date of the Compact, as amended, in form
and content acceptable to the Government of the United
States, provided, that the Government of the United States is
satisfied that such naturalized citizen meets the requirement
of subsection (b) of section 104 of Public Law 99-239 as it
was in effect on the day prior to the effective date of this
Compact, as amended; or
[[Page H11734]]
(5) an immediate relative of a citizen of the Federated
States of Micronesia, regardless of the immediate relative's
country of citizenship or period of residence in the
Federated States of Micronesia, if the citizen of the
Federated States of Micronesia is serving on active duty in
any branch of the United States Armed Forces, or in the
active reserves.
(b) Notwithstanding subsection (a) of this section, a
person who is coming to the United States pursuant to an
adoption outside the United States, or for the purpose of
adoption in the United States, is ineligible for admission
under the Compact and the Compact, as amended. This
subsection shall apply to any person who is or was an
applicant for admission to the United States on or after
March 1, 2003, including any applicant for admission in
removal proceedings (including appellate proceedings) on or
after March 1, 2003, regardless of the date such proceedings
were commenced. This subsection shall have no effect on the
ability of the Government of the United States or any United
States State or local government to commence or otherwise
take any action against any person or entity who has violated
any law relating to the adoption of any person.
(c) Notwithstanding subsection (a) of this section, no
person who has been or is granted citizenship in the
Federated States of Micronesia, or has been or is issued a
Federated States of Micronesia passport pursuant to any
investment, passport sale, or similar program has been or
shall be eligible for admission to the United States under
the Compact or the Compact, as amended.
(d) A person admitted to the United States under the
Compact, or the Compact, as amended, shall be considered to
have the permission of the Government of the United States to
accept employment in the United States. An unexpired
Federated States of Micronesia passport with unexpired
documentation issued by the Government of the United States
evidencing admission under the Compact or the Compact, as
amended, shall be considered to be documentation establishing
identity and employment authorization under section
274A(b)(1)(B) of the Immigration and Nationality Act, as
amended, 8 U.S.C. 1324a(b)(1)(B). The Government of the
United States will take reasonable and appropriate steps to
implement and publicize this provision, and the Government of
the Federated States of Micronesia will also take reasonable
and appropriate steps to publicize this provision.
(e) For purposes of the Compact and the Compact, as
amended:
(1) the term ``residence'' with respect to a person means
the person's principal, actual dwelling place in fact,
without regard to intent, as provided in section 101(a)(33)
of the Immigration and Nationality Act, as amended, 8 U.S.C.
1101(a)(33), and variations of the term ``residence,''
including ``resident'' and ``reside,'' shall be similarly
construed;
(2) the term ``actual residence'' means physical presence
in the Federated States of Micronesia during eighty-five
percent of the five-year period of residency required by
section 141(a)(3) and (4);
(3) the term ``certificate of actual residence'' means a
certificate issued to a naturalized citizen by the Government
of the Federated States of Micronesia stating that the
citizen has complied with the actual residence requirement of
section 141(a)(3) or (4);
(4) the term ``nonimmigrant'' means an alien who is not an
``immigrant'' as defined in section 101(a)(15) of such Act, 8
U.S.C. 1101(a)(15); and
(5) the term ``immediate relative'' means a spouse, or
unmarried son or unmarried daughter less than 21 years of
age.
(f) The Immigration and Nationality Act, as amended, shall
apply to any person admitted or seeking admission to the
United States (other than a United States possession or
territory where such Act does not apply) under the Compact or
the Compact, as amended, and nothing in the Compact or the
Compact, as amended, shall be construed to limit, preclude,
or modify the applicability of, with respect to such person:
(1) any ground of inadmissibility or deportability under
such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II)
of such Act, as provided in subsection (a) of this section),
and any defense thereto, provided that, section 237(a)(5) of
such Act shall be construed and applied as if it reads as
follows: ``any alien who has been admitted under the Compact,
or the Compact, as amended, who cannot show that he or she
has sufficient means of support in the United States, is
deportable'';
(2) the authority of the Government of the United States
under section 214(a)(1) of such Act to provide that admission
as a nonimmigrant shall be for such time and under such
conditions as the Government of the United States may by
regulations prescribe;
(3) Except for the treatment of certain documentation for
purposes of section 274A(b)(1)(B) of such Act as provided by
subsection (d) of this section of the Compact, as amended,
any requirement under section 274A, including but not limited
to section 274A(b)(1)(E);
(4) Section 643 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996, Public Law 104-208, and
actions taken pursuant to section 643; and
(5) the authority of the Government of the United States
otherwise to administer and enforce the Immigration and
Nationality Act, as amended, or other United States law.
(g) Any authority possessed by the Government of the United
States under this section of the Compact or the Compact, as
amended, may also be exercised by the Government of a
territory or possession of the United States where the
Immigration and Nationality Act, as amended, does not apply,
to the extent such exercise of authority is lawful under a
statute or regulation of such territory or possession that is
authorized by the laws of the United States.
(h) Subsection (a) of this section does not confer on a
citizen of the Federated States of Micronesia the right to
establish the residence necessary for naturalization under
the Immigration and Nationality Act, as amended, or to
petition for benefits for alien relatives under that Act.
Subsection (a) of this section, however, shall not prevent a
citizen of the Federated States of Micronesia from otherwise
acquiring such rights or lawful permanent resident alien
status in the United States.
Section 142
(a) Any citizen or national of the United States may be
admitted, to lawfully engage in occupations, and reside in
the Federated States of Micronesia, subject to the rights of
the Government of the Federated States of Micronesia to deny
entry to or deport any such citizen or national as an
undesirable alien. Any determination of inadmissibility or
deportability shall be based on reasonable statutory grounds
and shall be subject to appropriate administrative and
judicial review within the Federated States of Micronesia. If
a citizen or national of the United States is a spouse of a
citizen of the Federated States of Micronesia, the Government
of the Federated States of Micronesia shall allow the United
States citizen spouse to establish residence. Should the
Federated States of Micronesia citizen spouse predecease the
United States citizen spouse during the marriage, the
Government of the Federated States of Micronesia shall allow
the United States citizen spouse to continue to reside in the
Federated States of Micronesia.
(b) In enacting any laws or imposing any requirements with
respect to citizens and nationals of the United States
entering the Federated States of Micronesia under subsection
(a) of this section, including any grounds of inadmissibility
or deportability, the Government of the Federated States of
Micronesia shall accord to such citizens and nationals of the
United States treatment no less favorable than that accorded
to citizens of other countries.
(c) Consistent with subsection (a) of this section, with
respect to citizens and nationals of the United States
seeking to engage in employment or invest in the Federated
States of Micronesia, the Government of the Federated States
of Micronesia shall adopt immigration-related procedures no
less favorable than those adopted by the Government of the
United States with respect to citizens of the Federated
States of Micronesia seeking employment in the United States.
Section 143
Any person who relinquishes, or otherwise loses, his United
States nationality or citizenship, or his Federated States of
Micronesia citizenship, shall be ineligible to receive the
privileges set forth in sections 141 and 142. Any such person
may apply for admission to the United States or the Federated
States of Micronesia, as the case may be, in accordance with
any other applicable laws of the United States or the
Federated States of Micronesia relating to immigration of
aliens from other countries. The laws of the Federated States
of Micronesia or the United States, as the case may be, shall
dictate the terms and conditions of any such person's stay.
Article V
Representation
Section 151
Relations between the Government of the United States and
the Government of the Federated States of Micronesia shall be
conducted in accordance with the Vienna Convention on
Diplomatic Relations. In addition to diplomatic missions and
representation, the Governments may establish and maintain
other offices and designate other representatives on terms
and in locations as may be mutually agreed.
Section 152
(a) Any citizen or national of the United States who,
without authority of the United States, acts as the agent of
the Government of the Federated States of Micronesia with
regard to matters specified in the provisions of the Foreign
Agents Registration Act of 1938, as amended (22 U.S.C. 611 et
seq.), that apply with respect to an agent of a foreign
principal shall be subject to the requirements of such Act.
Failure to comply with such requirements shall subject such
citizen or national to the same penalties and provisions of
law as apply in the case of the failure of such an agent of a
foreign principal to comply with such requirements. For
purposes of the Foreign Agents Registration Act of 1938, the
Federated States of Micronesia shall be considered to be a
foreign country.
(b) Subsection (a) of this section shall not apply to a
citizen or national of the United States employed by the
Government of the Federated States of Micronesia with respect
to whom the Government of the Federated States of Micronesia
from time to time certifies to the Government of the United
States that such citizen or national is an employee of the
Federated States of Micronesia whose principal duties are
other than those matters specified in the Foreign Agents
Registration Act of 1938, as amended, that apply with respect
to an agent of a foreign principal. The agency or officer of
the United States receiving such certifications shall cause
them to be filed with the Attorney General, who shall
maintain a publicly available list of the persons so
certified.
Article VI
Environmental Protection
Section 161
The Governments of the United States and the Federated
States of Micronesia declare that it is their policy to
promote efforts to prevent or eliminate damage to the
environment and biosphere and to enrich understanding of the
natural resources of the Federated States of Micronesia. In
order to carry out this policy, the Government of the United
States and the Government of the Federated States of
Micronesia
[[Page H11735]]
agree to the following mutual and reciprocal undertakings.
(a) The Government of the United States:
(1) shall continue to apply the environmental controls in
effect on November 2, 1986 to those of its continuing
activities subject to section 161(a)(2), unless and until
those controls are modified under sections 161(a)(3) and
161(a)(4);
(2) shall apply the National Environmental Policy Act of
1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities
under the Compact, as amended, and its related agreements as
if the Federated States of Micronesia were the United States;
(3) shall comply also, in the conduct of any activity
requiring the preparation of an Environmental Impact
Statement under section 161(a)(2), with standards
substantively similar to those required by the following laws
of the United States, taking into account the particular
environment of the Federated States of Micronesia: the
Endangered Species Act of 1973, as amended, 87 Stat. 884, 16
U.S.C. 1531 et seq.; the Clean Air Act, as amended, 77 Stat.
392, 42 U.S.C. Supp. 7401 et seq.; the Clean Water Act
(Federal Water Pollution Control Act), as amended, 86 Stat.
896, 33 U.S.C. 1251 et seq.; Title I of the Marine
Protection, Research and Sanctuaries Act of 1972 (the Ocean
Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic Substances
Control Act, as amended, 15 U.S.C. 2601 et seq.; the Solid
Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and
such other environmental protection laws of the United States
and of the Federated States of Micronesia, as may be mutually
agreed from time to time with the Government of the Federated
States of Micronesia; and
(4) shall develop, prior to conducting any activity
requiring the preparation of an Environmental Impact
Statement under section 161(a)(2), written standards and
procedures, as agreed with the Government of the Federated
States of Micronesia, to implement the substantive provisions
of the laws made applicable to U.S. Government activities in
the Federated States of Micronesia, pursuant to section
161(a)(3).
(b) The Government of the Federated States of Micronesia
shall continue to develop and implement standards and
procedures to protect its environment. As a reciprocal
obligation to the undertakings of the Government of the
United States under this Article, the Federated States of
Micronesia, taking into account its particular environment,
shall continue to develop and implement standards for
environmental protection substantively similar to those
required of the Government of the United States by section
161(a)(3) prior to its conducting activities in the Federated
States of Micronesia, substantively equivalent to activities
conducted there by the Government of the United States and,
as a further reciprocal obligation, shall enforce those
standards.
(c) Section 161(a), including any standard or procedure
applicable thereunder, and section 161(b) may be modified or
superseded in whole or in part by agreement of the Government
of the United States and the Government of the Federated
States of Micronesia.
(d) In the event that an Environmental Impact Statement is
no longer required under the laws of the United States for
major Federal actions significantly affecting the quality of
the human environment, the regulatory regime established
under sections 161(a)(3) and 161(a)(4) shall continue to
apply to such activities of the Government of the United
States until amended by mutual agreement.
(e) The President of the United States may exempt any of
the activities of the Government of the United States under
this Compact, as amended, and its related agreements from any
environmental standard or procedure which may be applicable
under sections 161(a)(3) and 161(a)(4) if the President
determines it to be in the paramount interest of the
Government of the United States to do so, consistent with
Title Three of this Compact, as amended, and the obligations
of the Government of the United States under international
law. Prior to any decision pursuant to this subsection, the
views of the Government of the Federated States of Micronesia
shall be sought and considered to the extent practicable. If
the President grants such an exemption, to the extent
practicable, a report with his reasons for granting such
exemption shall be given promptly to the Government of the
Federated States of Micronesia.
(f) The laws of the United States referred to in section
161(a)(3) shall apply to the activities of the Government of
the United States under this Compact, as amended, and its
related agreements only to the extent provided for in this
section.
Section 162
The Government of the Federated States of Micronesia may
bring an action for judicial review of any administrative
agency action or any activity of the Government of the United
States pursuant to section 161(a) for enforcement of the
obligations of the Government of the United States arising
thereunder. The United States District Court for the District
of Hawaii and the United States District Court for the
District of Columbia shall have jurisdiction over such action
or activity, and over actions brought under section 172(b)
which relate to the activities of the Government of the
United States and its officers and employees, governed by
section 161, provided that:
(a) Such actions may only be civil actions for any
appropriate civil relief other than punitive damages against
the Government of the United States or, where required by
law, its officers in their official capacity; no criminal
actions may arise under this section.
(b) Actions brought pursuant to this section may be
initiated only by the Government of the Federated States of
Micronesia.
(c) Administrative agency actions arising under section 161
shall be reviewed pursuant to the standard of judicial review
set forth in 5 U.S.C. 706.
(d) The United States District Court for the District of
Hawaii and the United States District Court for the District
of Columbia shall have jurisdiction to issue all necessary
processes, and the Government of the United States agrees to
submit itself to the jurisdiction of the court; decisions of
the United States District Court shall be reviewable in the
United States Court of Appeals for the Ninth Circuit or the
United States Court of Appeals for the District of Columbia,
respectively, or in the United States Supreme Court as
provided by the laws of the United States.
(e) The judicial remedy provided for in this section shall
be the exclusive remedy for the judicial review or
enforcement of the obligations of the Government of the
United States under this Article and actions brought under
section 172(b) which relate to the activities of the
Government of the United States and its officers and
employees governed by section 161.
(f) In actions pursuant to this section, the Government of
the Federated States of Micronesia shall be treated as if it
were a United States citizen.
Section 163
(a) For the purpose of gathering data necessary to study
the environmental effects of activities of the Government of
the United States subject to the requirements of this
Article, the Government of the Federated States of Micronesia
shall be granted access to facilities operated by the
Government of the United States in the Federated States of
Micronesia, to the extent necessary for this purpose, except
to the extent such access would unreasonably interfere with
the exercise of the authority and responsibility of the
Government of the United States under Title Three.
(b) The Government of the United States, in turn, shall be
granted access to the Federated States of Micronesia for the
purpose of gathering data necessary to discharge its
obligations under this Article, except to the extent such
access would unreasonably interfere with the exercise of the
authority and responsibility of the Government of the
Federated States of Micronesia under Title One, and to the
extent necessary for this purpose shall be granted access to
documents and other information to the same extent similar
access is provided the Government of the Federated States of
Micronesia under the Freedom of Information Act, 5 U.S.C.
552.
(c) The Government of the Federated States of Micronesia
shall not impede efforts by the Government of the United
States to comply with applicable standards and procedures.
Article VII
General Legal Provisions
Section 171
Except as provided in this Compact, as amended, or its
related agreements, the application of the laws of the United
States to the Trust Territory of the Pacific Islands by
virtue of the Trusteeship Agreement ceased with respect to
the Federated States of Micronesia on November 3, 1986, the
date the Compact went into effect.
Section 172
(a) Every citizen of the Federated States of Micronesia who
is not a resident of the United States shall enjoy the rights
and remedies under the laws of the United States enjoyed by
any non-resident alien.
(b) The Government of the Federated States of Micronesia
and every citizen of the Federated States of Micronesia shall
be considered to be a ``person'' within the meaning of the
Freedom of Information Act, 5 U.S.C. 552, and of the judicial
review provisions of the Administrative Procedure Act, 5
U.S.C. 701-706, except that only the Government of the
Federated States of Micronesia may seek judicial review under
the Administrative Procedure Act or judicial enforcement
under the Freedom of Information Act when such judicial
review or enforcement relates to the activities of the
Government of the United States governed by sections 161 and
162.
Section 173
The Governments of the United States and the Federated
States of Micronesia agree to adopt and enforce such
measures, consistent with this Compact, as amended, and its
related agreements, as may be necessary to protect the
personnel, property, installations, services, programs and
official archives and documents maintained by the Government
of the United States in the Federated States of Micronesia
pursuant to this Compact, as amended, and its related
agreements and by the Government of the Federated States of
Micronesia in the United States pursuant to this Compact, as
amended, and its related agreements.
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Federated States of Micronesia,
and its agencies and officials, shall be immune from the
jurisdiction of the court of the United States, and the
Government of the United States, and its agencies and
officials, shall be immune from the jurisdiction of the
courts of the Federated States of Micronesia.
(b) The Government of the United States accepts
responsibility for and shall pay:
(1) any unpaid money judgment rendered by the High Court of
the Trust Territory of the Pacific Islands against the
Government of the United States with regard to any cause of
action arising as a result of acts or omissions of the
Government of the Trust Territory of the Pacific Islands or
the Government of the United States prior to November 3,
1986;
(2) any claim settled by the claimant and the Government of
the Trust Territory of the Pacific Islands but not paid as of
the November 3, 1986; and
(3) settlement of any administrative claim or of any action
before a court of the Trust Territory of the Pacific Islands
or the Government of
[[Page H11736]]
the United States, arising as a result of acts or omissions
of the Government of the Trust Territory of the Pacific
Islands or the Government of the United States.
(c) Any claim not referred to in section 174(b) and arising
from an act or omission of the Government of the Trust
Territory of the Pacific Islands or the Government of the
United States prior to the effective date of the Compact
shall be adjudicated in the same manner as a claim
adjudicated according to section 174(d). In any claim against
the Government of the Trust Territory of the Pacific Islands,
the Government of the United States shall stand in the place
of the Government of the Trust Territory of the Pacific
Islands. A judgment on any claim referred to in section
174(b) or this subsection, not otherwise satisfied by the
Government of the United States, may be presented for
certification to the United States Court of Appeals for the
Federal Circuit, or its successor courts, which shall have
jurisdiction therefore, notwithstanding the provisions of 28
U.S.C. 1502, and which court's decisions shall be reviewable
as provided by the laws of the United States. The United
States Court of Appeals for the Federal Circuit shall certify
such judgment, and order payment thereof, unless it finds,
after a hearing, that such judgment is manifestly erroneous
as to law or fact, or manifestly excessive. In either of such
cases the United States Court of Appeals for the Federal
Circuit shall have jurisdiction to modify such judgment.
(d) The Government of the Federated States of Micronesia
shall not be immune from the jurisdiction of the courts of
the United States, and the Government of the United States
shall not be immune from the jurisdiction of the courts of
the Federated States of Micronesia in any civil case in which
an exception to foreign state immunity is set forth in the
Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.) or
its successor statutes.
Section 175
(a) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall have
the force of law, shall govern mutual assistance and
cooperation in law enforcement matters, including the
pursuit, capture, imprisonment and extradition of fugitives
from justice and the transfer of prisoners, as well as other
law enforcement matters. In the United States, the laws of
the United States governing international extradition,
including 18 U.S.C. 3184, 3186 and 3188-95, shall be
applicable to the extradition of fugitives under the separate
agreement, and the laws of the United States governing the
transfer of prisoners, including 18 U.S.C. 4100-15, shall be
applicable to the transfer of prisoners under the separate
agreement; and
(b) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall have
the force of law, shall govern requirements relating to labor
recruitment practices, including registration, reporting,
suspension or revocation of authorization to recruit persons
for employment in the United States, and enforcement for
violations of such requirements.
Section 176
The Government of the Federated States of Micronesia
confirms that final judgments in civil cases rendered by any
court of the Trust Territory of the Pacific Islands shall
continue in full force and effect, subject to the
constitutional power of the courts of the Federated States of
Micronesia to grant relief from judgments in appropriate
cases.
Section 177
Section 177 of the Compact entered into force with respect
to the Federated States of Micronesia on November 3, 1986 as
follows:
``(a) The Government of the United States accepts the
responsibility for compensation owing to citizens of the
Marshall Islands, or the Federated States of Micronesia, or
Palau for loss or damage to property and person of the
citizens of the Marshall Islands, or the Federated States of
Micronesia, resulting from the nuclear testing program which
the Government of the United States conducted in the Northern
Marshall Islands between June 30, 1946, and August 18, 1958.
``(b) The Government of the United States and the
Government of the Marshall Islands shall set forth in a
separate agreement provisions for the just and adequate
settlement of all such claims which have arisen in regard to
the Marshall Islands and its citizens and which have not as
yet been compensated or which in the future may arise, for
the continued administration by the Government of the United
States of direct radiation related medical surveillance and
treatment programs and radiological monitoring activities and
for such additional programs and activities as may be
mutually agreed, and for the assumption by the Government of
the Marshall Islands of responsibility for enforcement of
limitations on the utilization of affected areas developed in
cooperation with the Government of the United States and for
the assistance by the Government of the United States in the
exercise of such responsibility as may be mutually agreed.
This separate agreement shall come into effect simultaneously
with this Compact and shall remain in effect in accordance
with its own terms.
``(c) The Government of the United States shall provide to
the Government of the Marshall Islands, on a grant basis, the
amount of $150 million to be paid and distributed in
accordance with the separate agreement referred to in this
Section, and shall provide the services and programs set
forth in this separate agreement, the language of which is
incorporated into this Compact.''
The Compact, as amended, makes no changes to, and has no
effect upon, Section 177 of the Compact, nor does the
Compact, as amended, change or affect the separate agreement
referred to in Section 177 of the Compact including Articles
IX and X of that separate agreement, and measures taken by
the parties thereunder.
Section 178
(a) The Federal agencies of the Government of the United
States that provide the services and related programs in the
Federated States of Micronesia pursuant to Title Two are
authorized to settle and pay tort claims arising in the
Federated States of Micronesia from the activities of such
agencies or from the acts or omissions of the employees of
such agencies. Except as provided in section 178(b), the
provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply
exclusively to such administrative settlements and payments.
(b) Claims under section 178(a) that cannot be settled
under section 178(a) shall be disposed of exclusively in
accordance with Article II of Title Four. Arbitration awards
rendered pursuant to this subsection shall be paid out of
funds under 31 U.S.C. 1304.
(c) The Government of the United States and the Government
of the Federated States of Micronesia shall, in the separate
agreement referred to in section 231, provide for:
(1) the administrative settlement of claims referred to in
section 178(a), including designation of local agents in each
State of the Federated States of Micronesia; such agents to
be empowered to accept, investigate and settle such claims,
in a timely manner, as provided in such separate agreements;
and
(2) arbitration, referred to in section 178(b), in a timely
manner, at a site convenient to the claimant, in the event a
claim is not otherwise settled pursuant to section 178(a).
(d) The provisions of section 174(d) shall not apply to
claims covered by this section.
(e) Except as otherwise explicitly provided by law of the
United States, neither the Government of the United States,
its instrumentalities, nor any person acting on behalf of the
Government of the United States, shall be named a party in
any action based on, or arising out of, the activity or
activities of a recipient of any grant or other assistance
provided by the Government of the United States (or the
activity or activities of the recipient's agency or any other
person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Federated States of Micronesia shall
not exercise criminal jurisdiction over the Government of the
United States, or its instrumentalities.
(b) The courts of the Federated States of Micronesia shall
not exercise criminal jurisdiction over any person if the
Government of the United States provides notification to the
Government of the Federated States of Micronesia that such
person was acting on behalf of the Government of the United
States, for actions taken in furtherance of section 221 or
224 of this amended Compact, or any other provision of law
authorizing financial, program, or service assistance to the
Federated States of Micronesia.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Sector Grants
(a) In order to assist the Government of the Federated
States of Micronesia in its efforts to promote the economic
advancement, budgetary self-reliance, and economic self-
sufficiency of its people, and in recognition of the special
relationship that exists between the Federated States of
Micronesia and the United States, the Government of the
United States shall provide assistance on a sector grant
basis for a period of twenty years in the amounts set forth
in section 216, commencing on the effective date of this
Compact, as amended. Such grants shall be used for assistance
in the sectors of education, health care, private sector
development, the environment, public sector capacity
building, and public infrastructure, or for other sectors as
mutually agreed, with priorities in the education and health
care sectors. For each year such sector grant assistance is
made available, the proposed division of this amount among
these sectors shall be certified to the Government of the
United States by the Government of the Federated States of
Micronesia and shall be subject to the concurrence of the
Government of the United States. In such case, the Government
of the United States shall disburse the agreed upon amounts
and monitor the use of such sector grants in accordance with
the provisions of this Article and the Agreement Concerning
Procedures for the Implementation of United States Economic
Assistance Provided in the Compact, as Amended, of Free
Association Between the Government of the United States of
America and the Government of the Federated States of
Micronesia (``Fiscal Procedures Agreement'') which shall come
into effect simultaneously with this Compact, as amended. The
provision of any United States assistance under the Compact,
as amended, the Fiscal Procedures Agreement, the Trust Fund
Agreement, or any other subsidiary agreement to the Compact,
as amended, shall constitute ``a particular distribution . .
. required by the terms or special nature of the assistance''
for purposes of Article XII, section 1(b) of the Constitution
of the Federated States of Micronesia.
(1) Education.--United States grant assistance shall be
made available in accordance with the plan described in
subsection (c) of this section to support and improve the
educational system of the Federated States of Micronesia and
develop the human, financial, and material resources
necessary for the Government of the Federated States of
Micronesia to perform these services. Emphasis should be
placed on advancing a quality basic education system.
(2) Health.--United States grant assistance shall be made
available in accordance with the plan described in subsection
(c) of this section to
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support and improve the delivery of preventive, curative and
environmental care and develop the human, financial, and
material resources necessary for the Government of the
Federated States of Micronesia to perform these services.
(3) Private sector development.--United States grant
assistance shall be made available in accordance with the
plan described in subsection (c) of this section to support
the efforts of the Government of the Federated States of
Micronesia to attract foreign investment and increase
indigenous business activity by vitalizing the commercial
environment, ensuring fair and equitable application of the
law, promoting adherence to core labor standards, and
maintaining progress toward privatization of state-owned and
partially state-owned enterprises, and engaging in other
reforms.
(4) Capacity building in the public sector.--United States
grant assistance shall be made available in accordance with
the plan described in subsection (c) of this section to
support the efforts of the Government of the Federated States
of Micronesia to build effective, accountable and transparent
national, state, and local government and other public sector
institutions and systems.
(5) Environment.--United States grant assistance shall be
made available in accordance with the plan described in
subsection (c) of this section to increase environmental
protection; conserve and achieve sustainable use of natural
resources; and engage in environmental infrastructure
planning, design construction and operation.
(6) Public infrastructure.--
(i) U.S. annual grant assistance shall be made available in
accordance with a list of specific projects included in the
plan described in subsection (c) of this section to assist
the Government of the Federated States of Micronesia in its
efforts to provide adequate public infrastructure.
(ii) Infrastructure and maintenance Fund.--Five percent of
the annual public infrastructure grant made available under
paragraph (i) of this subsection shall be set aside, with an
equal contribution from the Government of the Federated
States of Micronesia, as a contribution to an Infrastructure
Maintenance Fund (IMF). Administration of the Infrastructure
Maintenance Fund shall be governed by the Fiscal Procedures
Agreement.
(b) Humanitarian Assistance.--Federated States of
Micronesia Program. In recognition of the special development
needs of the Federated States of Micronesia, the Government
of the United States shall make available to the Government
of the Federated States of Micronesia, on its request and to
be deducted from the grant amount made available under
subsection (a) of this section, a Humanitarian Assistance -
Federated States of Micronesia (``HAFSM'') Program with
emphasis on health, education, and infrastructure (including
transportation), projects. The terms and conditions of the
HAFSM shall be set forth in the Agreement Regarding the
Military Use and Operating Rights of the Government of the
United States in the Government of the Federated States of
Micronesia Concluded Pursuant to Sections 321 and 323 of the
Compact of Free Association, as Amended which shall come into
effect simultaneously with the amendments to this Compact.
(c) Development Plan.--The Government of the Federated
States of Micronesia shall prepare and maintain an official
overall development plan. The plan shall be strategic in
nature, shall be continuously reviewed and updated through
the annual budget process, and shall make projections on a
multi-year rolling basis. Each of the sectors named in
subsection (a) of this section, or other sectors as mutually
agreed, shall be accorded specific treatment in the plan.
Insofar as grants funds are involved, the plan shall be
subject to the concurrence of the Government of the United
States.
(d) Disaster Assistance Emergency Fund.--An amount of two
hundred thousand dollars ($200,000) shall be provided
annually, with an equal contribution from the Government of
the Federated States of Micronesia, as a contribution to a
``Disaster Assistance Emergency Fund (DAEF).'' Any funds from
the DAEF may be used only for assistance and rehabilitation
resulting from disasters and emergencies. The funds will be
accessed upon declaration by the Government of the Federated
States of Micronesia, with the concurrence of the United
States Chief of Mission to the Federated States of
Micronesia. The Administration of the DAEF shall be governed
by the Fiscal Procedures Agreement.
Section 212 - Accountability.
(a) Regulations and policies normally applicable to United
States financial assistance to its state and local
governments, as reflected in the Fiscal Procedures Agreement,
shall apply to each sector grant described in section 211,
and to grants administered under section 221 below, except as
modified in the separate agreements referred to in section
231 of this Compact, as amended, or by United States law. The
Government of the United States, after annual consultations
with the Federated States of Micronesia, may attach
reasonable terms and conditions, including annual performance
indicators that are necessary to ensure effective use of
United States assistance and reasonable progress toward
achieving program objectives. The Government of the United
States may seek appropriate remedies for noncompliance with
the terms and conditions attached to the assistance, or for
failure to comply with section 234, including withholding
assistance.
(b) The Government of the United States shall, for each
fiscal year of the twenty years during which assistance is to
be provided on a sector grant basis under section 211, grant
the Government of the Federated States of Micronesia an
amount equal to the lesser of (i) one half of the reasonable,
properly documented cost incurred during each fiscal year to
conduct the annual audit required under Article VIII (2) of
the Fiscal Procedures Agreement or (ii) $500,000. Such amount
will not be adjusted for inflation under section 217 or
otherwise.
Section 213--Joint Economic Management Committee
The Governments of the United States and the Federated
States of Micronesia shall establish a Joint Economic
Management Committee, composed of a U.S. chair, two other
members from the Government of the United States and two
members from the Government of the Federated States of
Micronesia. The Joint Economic Management Committee shall
meet at least once each year to review the audits and reports
required under this Title, evaluate the progress made by the
Federated States of Micronesia in meeting the objectives
identified in its plan described in subsection (c) of section
211, with particular focus on those parts of the plan dealing
with the sectors identified in subsection (a) of section 211,
identify problems encountered, and recommend ways to increase
the effectiveness of U.S. assistance made available under
this Title. The establishment and operations of the Joint
Economic Management Committee shall be governed by the Fiscal
Procedures Agreement.
Section 214 - Annual Report
The Government of the Federated States of Micronesia shall
report annually to the President of the United States on the
use of United States sector grant assistance and other
assistance and progress in meeting mutually agreed program
and economic goals. The Joint Economic Management Committee
shall review and comment on the report and make appropriate
recommendations based thereon.
Section 215 - Trust Fund
(a) The United States shall contribute annually for twenty
years from the effective date of this Compact, as amended, in
the amounts set forth in section 216 into a Trust Fund
established in accordance with the Agreement Between the
Government of the United States of America and the Government
of the Federated States of Micronesia Implementing Section
215 and Section 216 of the Compact, as Amended, Regarding a
Trust Fund (``Trust Fund Agreement''). Upon termination of
the annual financial assistance under section 211, the
proceeds of the fund shall thereafter be used for the
purposes described in section 211 or as otherwise mutually
agreed.
(b) The United States contribution into the Trust Fund
described in subsection(a) of this section is conditioned on
the Government of the Federated States of Micronesia
contributing to the Trust Fund at least $30 million, prior to
September 30, 2004. Any funds received by the Federated
States of Micronesia under section 111 (d) of Public Law 99-
239 (January 14, 1986), or successor provisions, would be
contributed to the Trust Fund as a Federated States of
Micronesia contribution.
(c) The terms regarding the investment and management of
funds and use of the income of the Trust Fund shall be set
forth in the separate Trust Fund Agreement described in
subsection (a) of this section. Funds derived from United
States investment shall not be subject to Federal or state
taxes in the United States or the Federated States of
Micronesia. The Trust Fund Agreement shall also provide for
annual reports to the Government of the United States and to
the Government of the Federated States of Micronesia. The
Trust Fund Agreement shall provide for appropriate
distributions of trust fund proceeds to the Federated States
of Micronesia and for appropriate remedies for the failure of
the Federated States of Micronesia to use income of the Trust
Fund for the annual grant purposes set forth in section 211.
These remedies may include the return to the United States of
the present market value of its contributions to the Trust
Fund and the present market value of any undistributed income
on the contributions of the United States. If this Compact,
as amended, is terminated, the provisions of sections 451
through 453 of this Compact, as amended, shall govern
treatment of any U.S. contributions to the Trust Fund or
accrued interest thereon.
Section 216 - Sector Grant Funding and Trust Fund
Contributions
The funds described in sections 211, 212(b) and 215 shall
be made available as follows:
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Audit Grant
Fiscal year Annual Grants Section 212(b) Trust Fund Total
Section 211 (amount up to) Section 215
----------------------------------------------------------------------------------------------------------------
2004................................................ 76.2 .5 16 92.7
2005................................................ 76.2 .5 16 92.7
2006................................................ 76.2 .5 16 92.7
2007................................................ 75.4 .5 16.8 92.7
2008................................................ 74.6 .5 17.6 92.7
[[Page H11738]]
2009................................................ 73.8 .5 18.4 92.7
2010................................................ 73 .5 19.2 92.7
2011................................................ 72.2 .5 20 92.7
2012................................................ 71.4 .5 20.8 92.7
2013................................................ 70.6 .5 21.6 92.7
2014................................................ 69.8 .5 22.4 92.7
2015................................................ 69 .5 23.2 92.7
2016................................................ 68.2 .5 24 92.7
2017................................................ 67.4 .5 24.8 92.7
2018................................................ 66.6 .5 25.6 92.7
2019................................................ 65.8 .5 26.4 92.7
2020................................................ 65 .5 27.2 92.7
2021................................................ 64.2 .5 28 92.7
2022................................................ 63.4 .5 28.8 92.7
2023................................................ 62.6 .5 29.6 92.7
----------------------------------------------------------------------------------------------------------------
Section 217 - Inflation Adjustment
Except for the amounts provided for audits under section
212(b), the amounts stated in this Title shall be adjusted
for each United States Fiscal Year by the percent that equals
two-thirds of the percent change in the United States Gross
Domestic Product Implicit Price Deflator, or 5 percent,
whichever is less in any one year, using the beginning of
Fiscal Year 2004 as a base.
Section 218 - Carry-Over of Unused Funds
If in any year the funds made available by the Government
of the United States for that year pursuant to this Article
are not completely obligated by the Government of the
Federated States of Micronesia, the unobligated balances
shall remain available in addition to the funds to be
provided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) Services.--The Government of the United States shall
make available to the Federated States of Micronesia, in
accordance with and to the extent provided in the Federal
Programs and Services Agreement referred to in section 231,
the services and related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
(3) the United States Federal Aviation Administration;
(4) the United States Department of Transportation;
(5) the Federal Deposit Insurance Corporation (for the
benefit only of the Bank of the Federated States of
Micronesia), and
(6) the Department of Homeland Security, and the United
States Agency for International Development, Office of
Foreign Disaster Assistance.
Upon the effective date of this Compact, as amended, the
United States Departments and Agencies named or having
responsibility to provide these services and related programs
shall have the authority to implement the relevant provisions
of the Federal Programs and Services Agreement referred to in
section 231.
(b) Programs.--
(1) With the exception of the services and programs covered
by subsection (a) of this section, and unless the Congress of
the United States provides otherwise, the Government of the
United States shall make available to the Federated States of
Micronesia the services and programs that were available to
the Federated States of Micronesia on the effective date of
this Compact, as amended, to the extent that such services
and programs continue to be available to State and local
governments of the United States. As set forth in the Fiscal
Procedures Agreement, funds provided under subsection (a) of
section 211 will be considered to be local revenues of the
Government of the Federated States of Micronesia when used as
the local share required to obtain Federal programs and
services.
(2) Unless provided otherwise by U.S. law, the services and
programs described in paragraph (1) of this subsection shall
be extended in accordance with the terms of the Federal
Programs and Services Agreement referred to in section 231.
(c) The Government of the United States shall have and
exercise such authority as is necessary to carry out its
responsibilities under this Title and the separate agreements
referred to in amended section 231, including the authority
to monitor and administer all service and program assistance
provided by the United States to the Federated States of
Micronesia. The Federal Programs and Services Agreement
referred to in amended section 231 shall also set forth the
extent to which services and programs shall be provided to
the Federated States of Micronesia.
(d) Except as provided elsewhere in this Compact, as
amended, under any separate agreement entered into under this
Compact, as amended, or otherwise under U.S. law, all Federal
domestic programs extended to or operating in the Federated
States of Micronesia shall be subject to all applicable
criteria, standards, reporting requirements, auditing
procedures, and other rules and regulations applicable to
such programs and services when operating in the United
States.
(e) The Government of the United States shall make
available to the Federated States of Micronesia alternate
energy development projects, studies, and conservation
measures to the extent provided for the Freely Associated
States in the laws of the United States.
Section 222
The Government of the United States and the Government of
the Federated States of Micronesia may agree from time to
time to extend to the Federated States of Micronesia
additional United States grant assistance, services and
programs, as provided under the laws of the United States.
Unless inconsistent with such laws, or otherwise specifically
precluded by the Government of the United States at the time
such additional grant assistance, services, or programs are
extended, the Federal Programs and Services Agreement
referred to section 231 shall apply to any such assistance,
services or programs.
Section 223
The Government of the Federated States of Micronesia shall
make available to the Government of the United States at no
cost such land as may be necessary for the operations of the
services and programs provided pursuant to this Article, and
such facilities as are provided by the Government of the
Federated States of Micronesia at no cost to the Government
of the United States as of the effective date of this
Compact, as amended, or as may be mutually agreed thereafter.
Section 224
The Government of the Federated States of Micronesia may
request, from time to time, technical assistance from the
Federal agencies and institutions of the Government of the
United States, which are authorized to grant such technical
assistance in accordance with its laws. If technical
assistance is granted pursuant to such a request, the
Government of the United States shall provide the technical
assistance in a manner which gives priority consideration to
the Federated States of Micronesia over other recipients not
a part of the United States, its territories or possessions,
and equivalent consideration to the Federated States of
Micronesia with respect to other states in Free Association
with the United States. Such assistance shall be made
available on a reimbursable or non-reimbursable basis to the
extent provided by United States law.
Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrangements of
the services and programs provided for in section 221 of this
Compact, as amended, as well as the legal status of agencies
of the Government of the United States, their civilian
employees and contractors, and the dependents of such
personnel while present in the Federated States of
Micronesia, and other arrangements in connection with the
assistance, services, or programs furnished by the Government
of the United States, are set forth in a Federal Programs and
Services Agreement which shall come into effect
simultaneously with this Compact, as amended.
Section 232
The Government of the United States, in consultation with
the Government of the Federated States of Micronesia, shall
determine and implement procedures for the periodic audit of
all grants and other assistance made under Article I of this
Title and of all funds expended for the services and programs
provided under Article II of this Title. Further, in
accordance with the Fiscal Procedures Agreement described in
subsection (a) of section 211, the Comptroller General of the
United States shall have such powers and authorities as
described in sections 102 (c) and 110 (c) of Public Law 99-
239, 99 Stat. 1777-78, and 99 Stat. 1799 (January 14, 1986).
Section 233
Approval of this Compact, as amended, by the Government of
the United States, in accordance with its constitutional
processes, shall constitute a pledge by the United States
that the sums and amounts specified as sector grants in
section 211 of this Compact, as amended, shall be
appropriated and paid to the Federated States of Micronesia
for such period as those provisions of this Compact, as
amended, remain in force, subject to the terms and conditions
of this Title and related subsidiary agreements.
Section 234
The Government of the Federated States of Micronesia
pledges to cooperate with, permit, and assist if reasonably
requested, designated and authorized representatives of the
Government of the United States charged with investigating
whether Compact funds, or any other
[[Page H11739]]
assistance authorized under this Compact, as amended, have,
or are being, used for purposes other than those set forth in
this Compact, as amended, or its subsidiary agreements. In
carrying out this investigative authority, such United States
Government representatives may request that the Government of
the Federated States of Micronesia subpoena documents and
records and compel testimony in accordance with the laws and
Constitution of the Federated States of Micronesia. Such
assistance by the Government of the Federated States of
Micronesia to the Government of the United States shall not
be unreasonably withheld. The obligation of the Government of
the Federated States of Micronesia to fulfill its pledge
herein is a condition to its receiving payment of such funds
or other assistance authorized under this Compact, as
amended. The Government of the United States shall pay any
reasonable costs for extraordinary services executed by the
Government of the Federated States of Micronesia in carrying
out the provisions of this section.
Article IV
Trade
Section 241
The Federated States of Micronesia is not included in the
customs territory of the United States.
Section 242
The President shall proclaim the following tariff treatment
for articles imported from the Federated States of Micronesia
which shall apply during the period of effectiveness of this
title:
(a) Unless otherwise excluded, articles imported from the
Federated States of Micronesia, subject to the limitations
imposed under section 503(b) of title V of the Trade Act of
1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
(b) Only tuna in airtight containers provided for in
heading 1604.14.22 of the Harmonized Tariff Schedule of the
United States that is imported from the Federated States of
Micronesia and the Republic of the Marshall Islands during
any calendar year not to exceed 10 percent of apparent United
States consumption of tuna in airtight containers during the
immediately preceding calendar year, as reported by the
National Marine Fisheries Service, shall be exempt from duty;
but the quantity of tuna given duty-free treatment under this
paragraph for any calendar year shall be counted against the
aggregated quantity of tuna in airtight containers that is
dutiable under rate column numbered 1 of such heading
1604.14.22 for that calendar year.
(c) The duty-free treatment provided under subsection (a)
shall not apply to--
(1) watches, clocks, and timing apparatus provided for in
Chapter 91, excluding heading 9113, of the Harmonized Tariff
Schedule of the United States;
(2) buttons (whether finished or not finished) provided for
in items 9606.21.40 and 9606.29.20 of such Schedule;
(3) textile and apparel articles which are subject to
textile agreements; and
(4) footwear, handbags, luggage, flat goods, work gloves,
and leather wearing apparel which were not eligible articles
for purposes of title V of the Trade Act of 1974 (19 U.S.C.
2461, et seq.) on April 1, 1984.
(d) If the cost or value of materials produced in the
customs territory of the United States is included with
respect to an eligible article which is a product of the
Federated States of Micronesia, an amount not to exceed 15
percent of the appraised value of the article at the time it
is entered that is attributable to such United States cost or
value may be applied for duty assessment purposes toward
determining the percentage referred to in section 503(a)(2)
of title V of the Trade Act of 1974.
Section 243
Articles imported from the Federated States of Micronesia
which are not exempt from duty under subsections (a), (b),
(c), and (d) of section 242 shall be subject to the rates of
duty set forth in column numbered 1-general of the Harmonized
Tariff Schedule of the United States (HTSUS).
Section 244
(a) All products of the United States imported into the
Federated States of Micronesia shall receive treatment no
less favorable than that accorded like products of any
foreign country with respect to customs duties or charges of
a similar nature and with respect to laws and regulations
relating to importation, exportation, taxation, sale,
distribution, storage or use.
(b) The provisions of subsection (a) shall not apply to
advantages accorded by the Federated States of Micronesia by
virtue of their full membership in the Pacific Island
Countries Trade Agreement (PICTA), done on August 18, 2001,
to those governments listed in Article 26 of PICTA, as of the
date the Compact, as amended, is signed.
(c) Prior to entering into consultations on, or concluding,
a free trade agreement with governments not listed in Article
26 of PICTA, the Federated States of Micronesia shall consult
with the United States regarding whether or how subsection
(a) of section 244 shall be applied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official
circulating legal tender of the Federated States of
Micronesia. Should the Government of the Federated States of
Micronesia act to institute another currency, the terms of an
appropriate currency transitional period shall be as agreed
with the Government of the United States.
Section 252
The Government of the Federated States of Micronesia may,
with respect to United States persons, tax income derived
from sources within its respective jurisdiction, property
situated therein, including transfers of such property by
gift or at death, and products consumed therein, in such
manner as the Government of the Federated States of
Micronesia deems appropriate. The determination of the source
of any income, or the situs of any property, shall for
purposes of this Compact be made according to the United
States Internal Revenue Code.
Section 253
A citizen of the Federated States of Micronesia, domiciled
therein, shall be exempt from estate, gift, and generation-
skipping transfer taxes imposed by the Government of the
United States, provided that such citizen of the Federated
States of Micronesia is neither a citizen nor a resident of
the United States.
Section 254
(a) In determining any income tax imposed by the Government
of the Federated States of Micronesia, the Government of the
Federated States of Micronesia shall have authority to impose
tax upon income derived by a resident of the Federated States
of Micronesia from sources without the Federated States of
Micronesia, in the same manner and to the same extent as the
Government of the Federated States of Micronesia imposes tax
upon income derived from within its own jurisdiction. If the
Government of the Federated States of Micronesia exercises
such authority as provided in this subsection, any individual
resident of the Federated States of Micronesia who is subject
to tax by the Government of the United States on income which
is also taxed by the Government of the Federated States of
Micronesia shall be relieved of liability to the Government
of the United States for the tax which, but for this
subsection, would otherwise be imposed by the Government of
the United States on such income. However, the relief from
liability to the United States Government referred to in the
preceding sentence means only relief in the form of the
foreign tax credit (or deduction in lieu thereof) available
with respect to the income taxes of a possession of the
United States, and relief in the form of the exclusion under
section 911 of the Internal Revenue Code of 1986. For
purposes of this section, the term ``resident of the
Federated States of Micronesia'' shall be deemed to include
any person who was physically present in the Federated States
of Micronesia for a period of 183 or more days during any
taxable year.
(b) If the Government of the Federated States of Micronesia
subjects income to taxation substantially similar to that
imposed by the Trust Territory Code in effect on January 1,
1980, such Government shall be deemed to have exercised the
authority described in section 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the United States
Internal Revenue Code of 1986, the term ``North American
Area'' shall include the Federated States of Micronesia.
TITLE THREE
SECURITY AND DEFENSE RELATIONS
Article I
Authority and Responsibility
Section 311
(a) The Government of the United States has full authority
and responsibility for security and defense matters in or
relating to the Federated States of Micronesia.
(b) This authority and responsibility includes:
(1) the obligation to defend the Federated States of
Micronesia and its people from attack or threats thereof as
the United States and its citizens are defended;
(2) the option to foreclose access to or use of the
Federated States of Micronesia by military personnel or for
the military purposes of any third country; and
(3) the option to establish and use military areas and
facilities in the Federated States of Micronesia, subject to
the terms of the separate agreements referred to in sections
321 and 323.
(c) The Government of the United States confirms that it
shall act in accordance with the principles of international
law and the Charter of the United Nations in the exercise of
this authority and responsibility.
Section 312
Subject to the terms of any agreements negotiated in
accordance with sections 321 and 323, the Government of the
United States may conduct within the lands, waters and
airspace of the Federated States of Micronesia the activities
and operations necessary for the exercise of its authority
and responsibility under this Title.
Section 313
(a) The Government of the Federated States of Micronesia
shall refrain from actions that the Government of the United
States determines, after appropriate consultation with that
Government, to be incompatible with its authority and
responsibility for security and defense matters in or
relating to the Federated States of Micronesia.
(b) The consultations referred to in this section shall be
conducted expeditiously at senior levels of the two
Governments, and the subsequent determination by the
Government of the United States referred to in this section
shall be made only at senior interagency levels of the
Government of the United States.
(c) The Government of the Federated States of Micronesia
shall be afforded, on an expeditious basis, an opportunity to
raise its concerns with the United States Secretary of State
personally and the United States Secretary of Defense
personally regarding any determination made in accordance
with this section.
Section 314
(a) Unless otherwise agreed, the Government of the United
States shall not, in the Federated States of Micronesia:
(1) test by detonation or dispose of any nuclear weapon,
nor test, dispose of, or discharge any toxic chemical or
biological weapon; or
(2) test, dispose of, or discharge any other radioactive,
toxic chemical or biological materials
[[Page H11740]]
in an amount or manner which would be hazardous to public
health or safety.
(b) Unless otherwise agreed, other than for transit or
overflight purposes or during time of a national emergency
declared by the President of the United States, a state of
war declared by the Congress of the United States or as
necessary to defend against an actual or impending armed
attack on the United States, the Federated States of
Micronesia or the Republic of the Marshall Islands, the
Government of the United States shall not store in the
Federated States of Micronesia or the Republic of the
Marshall Islands any toxic chemical weapon, nor any
radioactive materials nor any toxic chemical materials
intended for weapons use.
(c) Radioactive, toxic chemical, or biological materials
not intended for weapons use shall not be affected by section
314(b).
(d) No material or substance referred to in this section
shall be stored in the Federated States of Micronesia except
in an amount and manner which would not be hazardous to
public health or safety. In determining what shall be an
amount or manner which would be hazardous to public health or
safety under this section, the Government of the United
States shall comply with any applicable mutual agreement,
international guidelines accepted by the Government of the
United States, and the laws of the United States and their
implementing regulations.
(e) Any exercise of the exemption authority set forth in
section 161(e) shall have no effect on the obligations of the
Government of the United States under this section or on the
application of this subsection.
(f) The provisions of this section shall apply in the areas
in which the Government of the Federated States of Micronesia
exercises jurisdiction over the living resources of the
seabed, subsoil or water column adjacent to its coasts.
Section 315
The Government of the United States may invite members of
the armed forces of other countries to use military areas and
facilities in the Federated States of Micronesia, in
conjunction with and under the control of United States Armed
Forces. Use by units of the armed forces of other countries
of such military areas and facilities, other than for transit
and overflight purposes, shall be subject to consultation
with and, in the case of major units, approval of the
Government of the Federated States of Micronesia.
Section 316
The authority and responsibility of the Government of the
United States under this Title may not be transferred or
otherwise assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by
the Government of the United States of military areas and
facilities in the Federated States of Micronesia are set
forth in separate agreements, which shall remain in effect in
accordance with the terms of such agreements.
(b) If, in the exercise of its authority and responsibility
under this Title, the Government of the United States
requires the use of areas within the Federated States of
Micronesia in addition to those for which specific
arrangements are concluded pursuant to section 321(a), it may
request the Government of the Federated States of Micronesia
to satisfy those requirements through leases or other
arrangements. The Government of the Federated States of
Micronesia shall sympathetically consider any such request
and shall establish suitable procedures to discuss it with
and provide a prompt response to the Government of the United
States.
(c) The Government of the United States recognizes and
respects the scarcity and special importance of land in the
Federated States of Micronesia. In making any requests
pursuant to section 321(b), the Government of the United
States shall follow the policy of requesting the minimum area
necessary to accomplish the required security and defense
purpose, of requesting only the minimum interest in real
property necessary to support such purpose, and of requesting
first to satisfy its requirement through public real
property, where available, rather than through private real
property.
Section 322
The Government of the United States shall provide and
maintain fixed and floating aids to navigation in the
Federated States of Micronesia at least to the extent
necessary for the exercise of its authority and
responsibility under this Title.
Section 323
The military operating rights of the Government of the
United States and the legal status and contractual
arrangements of the United States Armed Forces, their
members, and associated civilians, while present in the
Federated States of Micronesia are set forth in separate
agreements, which shall remain in effect in accordance with
the terms of such agreements.
Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended, and its
related agreements, the Government of the United States,
exclusively, has assumed and enjoys, as to the Federated
States of Micronesia, all obligations, responsibilities,
rights and benefits of:
(a) Any defense treaty or other international security
agreement applied by the Government of the United States as
Administering Authority of the Trust Territory of the Pacific
Islands as of November 2, 1986.
(b) Any defense treaty or other international security
agreement to which the Government of the United States is or
may become a party which it determines to be applicable in
the Federated States of Micronesia. Such a determination by
the Government of the United States shall be preceded by
appropriate consultation with the Government of the Federated
States of Micronesia.
Article IV
Service in Armed Forces of the United States
Section 341
Any person entitled to the privileges set forth in Section
141 (with the exception of any person described in section
141(a)(5) who is not a citizen of the Federated States of
Micronesia) shall be eligible to volunteer for service in the
Armed Forces of the United States, but shall not be subject
to involuntary induction into military service of the United
States as long as such person has resided in the United
States for a period of less than one year, provided that no
time shall count towards this one year while a person
admitted to the United States under the Compact, or the
Compact, as amended, is engaged in full-time study in the
United States. Any person described in section 141(a)(5) who
is not a citizen of the Federated States of Micronesia shall
be subject to United States laws relating to selective
service.
Section 342
The Government of the United States shall have enrolled, at
any one time, at least one qualified student from the
Federated States of Micronesia, as may be nominated by the
Government of the Federated States of Micronesia, in each of:
(a) The United States Coast Guard Academy pursuant to 14
U.S.C. 195.
(b) The United States Merchant Marine Academy pursuant to
46 U.S.C. 1295(b)(6), provided that the provisions of 46
U.S.C. 1295b(b)(6)(C) shall not apply to the enrollment of
students pursuant to section 342(b) of this Compact, as
amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Government
of the Federated States of Micronesia shall continue to
maintain a Joint Committee empowered to consider disputes
arising under the implementation of this Title and its
related agreements.
(b) The membership of the Joint Committee shall comprise
selected senior officials of the two Governments. The senior
United States military commander in the Pacific area shall be
the senior United States member of the Joint Committee. For
the meetings of the Joint Committee, each of the two
Governments may designate additional or alternate
representatives as appropriate for the subject matter under
consideration.
(c) Unless otherwise mutually agreed, the Joint Committee
shall meet annually at a time and place to be designated,
after appropriate consultation, by the Government of the
United States. The Joint Committee also shall meet promptly
upon request of either of its members. The Joint Committee
shall follow such procedures, including the establishment of
functional subcommittees, as the members may from time to
time agree. Upon notification by the Government of the United
States, the Joint Committee of the United States and the
Federated States of Micronesia shall meet promptly in a
combined session with the Joint Committee established and
maintained by the Government of the United States and the
Republic of the Marshall Islands to consider matters within
the jurisdiction of the two Joint Committees.
(d) Unresolved issues in the Joint Committee shall be
referred to the Governments for resolution, and the
Government of the Federated States of Micronesia shall be
afforded, on an expeditious basis, an opportunity to raise
its concerns with the United States Secretary of Defense
personally regarding any unresolved issue which threatens its
continued association with the Government of the United
States.
Section 352
In the exercise of its authority and responsibility under
Title Three, the Government of the United States shall accord
due respect to the authority and responsibility of the
Government of the Federated States of Micronesia under Titles
One, Two and Four and to the responsibility of the Government
of the Federated States of Micronesia to assure the well-
being of its people.
Section 353
(a) The Government of the United States shall not include
the Government of the Federated States of Micronesia as a
named party to a formal declaration of war, without that
Government's consent.
(b) Absent such consent, this Compact, as amended, is
without prejudice, on the ground of belligerence or the
existence of a state of war, to any claims for damages which
are advanced by the citizens, nationals or Government of the
Federated States of Micronesia, which arise out of armed
conflict subsequent to November 3, 1986, and which are:
(1) petitions to the Government of the United States for
redress; or
(2) claims in any manner against the government, citizens,
nationals or entities of any third country.
(c) Petitions under section 353(b)(1) shall be treated as
if they were made by citizens of the United States.
Section 354
(a) The Government of the United States and the Government
of the Federated States of Micronesia are jointly committed
to continue their security and defense relations, as set
forth in this Title. Accordingly, it is the intention of the
two countries that the provisions of this Title shall remain
binding as long as this Compact, as amended, remains in
effect, and thereafter as mutually agreed, unless earlier
terminated by mutual agreement pursuant to section 441, or
amended pursuant to Article III of Title Four. If at any time
the Government of the United States, or the Government of the
Federated
[[Page H11741]]
States of Micronesia, acting unilaterally, terminates this
Title, such unilateral termination shall be considered to be
termination of the entire Compact, in which case the
provisions of section 442 and 452 (in the case of termination
by the Government of the United States) or sections 443 and
453 (in the case of termination by the Government of the
Federated States of Micronesia), with the exception of
paragraph (3) of subsection (a) of section 452 or paragraph
(3) of subsection (a) of section 453, as the case may be,
shall apply.
(b) The Government of the United States recognizes, in view
of the special relationship between the Government of the
United States and the Government of the Federated States of
Micronesia, and in view of the existence of the separate
agreement regarding mutual security concluded with the
Government of the Federated States of Micronesia pursuant to
sections 321 and 323, that, even if this Title should
terminate, any attack on the Federated States of Micronesia
during the period in which such separate agreement is in
effect, would constitute a threat to the peace and security
of the entire region and a danger to the United States. In
the event of such an attack, the Government of the United
States would take action to meet the danger to the United
States and to the Federated States of Micronesia in
accordance with its constitutional processes.
(c) As reflected in Article 21(1)(b) of the Trust Fund
Agreement, the Government of the United States and the
Government of the Federated States of Micronesia further
recognize, in view of the special relationship between their
countries, that even if this Title should terminate, the
Government of the Federated States of Micronesia shall
refrain from actions which the Government of the United
States determines, after appropriate consultation with that
Government, to be incompatible with its authority and
responsibility for security and defense matters in or
relating to the Federated States of Micronesia or the
Republic of the Marshall Islands.
TITLE FOUR
GENERAL PROVISIONS
Article I
Approval and Effective Date
Section 411
Pursuant to section 432 of the Compact and subject to
subsection (e) of section 461 of the Compact, as amended, the
Compact, as amended, shall come into effect upon mutual
agreement between the Government of the United States and the
Government of the Federated States of Micronesia subsequent
to completion of the following:
(a) Approval by the Government of the Federated States of
Micronesia in accordance with its constitutional processes.
(b) Approval by the Government of the United States in
accordance with its constitutional processes.
Article II
Conference and Dispute Resolution
Section 421
The Government of the United States shall confer promptly
at the request of the Government of the Federated States of
Micronesia and that Government shall confer promptly at the
request of the Government of the United States on matters
relating to the provisions of this Compact, as amended, or of
its related agreements.
Section 422
In the event the Government of the United States or the
Government of the Federated States of Micronesia, after
conferring pursuant to section 421, determines that there is
a dispute and gives written notice thereof, the two
Governments shall make a good faith effort to resolve the
dispute between themselves.
Section 423
If a dispute between the Government of the United States
and the Government of the Federated States of Micronesia
cannot be resolved within 90 days of written notification in
the manner provided in section 422, either party to the
dispute may refer it to arbitration in accordance with
section 424.
Section 424
Should a dispute be referred to arbitration as provided for
in section 423, an Arbitration Board shall be established for
the purpose of hearing the dispute and rendering a decision
which shall be binding upon the two parties to the dispute
unless the two parties mutually agree that the decision shall
be advisory. Arbitration shall occur according to the
following terms:
(a) An Arbitration Board shall consist of a Chairman and
two other members, each of whom shall be a citizen of a party
to the dispute. Each of the two Governments which is a party
to the dispute shall appoint one member to the Arbitration
Board. If either party to the dispute does not fulfill the
appointment requirements of this section within 30 days of
referral of the dispute to arbitration pursuant to section
423, its member on the Arbitration Board shall be selected
from its own standing list by the other party to the dispute.
Each Government shall maintain a standing list of 10
candidates. The parties to the dispute shall jointly appoint
a Chairman within 15 days after selection of the other
members of the Arbitration Board. Failing agreement on a
Chairman, the Chairman shall be chosen by lot from the
standing lists of the parties to the dispute within 5 days
after such failure.
(b) Unless otherwise provided in this Compact, as amended,
or its related agreements, the Arbitration Board shall have
jurisdiction to hear and render its final determination on
all disputes arising exclusively under Articles I, II, III,
IV and V of Title One, Title Two, Title Four, and their
related agreements.
(c) Each member of the Arbitration Board shall have one
vote. Each decision of the Arbitration Board shall be reached
by majority vote.
(d) In determining any legal issue, the Arbitration Board
may have reference to international law and, in such
reference, shall apply as guidelines the provisions set forth
in Article 38 of the Statute of the International Court of
Justice.
(e) The Arbitration Board shall adopt such rules for its
proceedings as it may deem appropriate and necessary, but
such rules shall not contravene the provisions of this
Compact, as amended. Unless the parties provide otherwise by
mutual agreement, the Arbitration Board shall endeavor to
render its decision within 30 days after the conclusion of
arguments. The Arbitration Board shall make findings of fact
and conclusions of law and its members may issue dissenting
or individual opinions. Except as may be otherwise decided by
the Arbitration Board, one-half of all costs of the
arbitration shall be borne by the Government of the United
States and the remainder shall be borne by the Government of
the Federated States of Micronesia.
Article III
Amendment
Section 431
The provisions of this Compact, as amended, may be further
amended by mutual agreement of the Government of the United
States and the Government of the Federated States of
Micronesia, in accordance with their respective
constitutional processes.
Article IV
Termination
Section 441
This Compact, as amended, may be terminated by mutual
agreement of the Government of the Federated States of
Micronesia and the Government of the United States, in
accordance with their respective constitutional processes.
Such mutual termination of this Compact, as amended, shall be
without prejudice to the continued application of section 451
of this Compact, as amended, and the provisions of the
Compact, as amended, set forth therein.
Section 442
Subject to section 452, this Compact, as amended, may be
terminated by the Government of the United States in
accordance with its constitutional processes. Such
termination shall be effective on the date specified in the
notice of termination by the Government of the United States
but not earlier than six months following delivery of such
notice. The time specified in the notice of termination may
be extended. Such termination of this Compact, as amended,
shall be without prejudice to the continued application of
section 452 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
Section 443
This Compact, as amended, shall be terminated by the
Government of the Federated States of Micronesia, pursuant to
its constitutional processes, subject to section 453 if the
people represented by that Government vote in a plebiscite to
terminate the Compact, as amended, or by another process
permitted by the FSM constitution and mutually agreed between
the Governments of the United States and the Federated States
of Micronesia. The Government of the Federated States of
Micronesia shall notify the Government of the United States
of its intention to call such a plebiscite, or to pursue
another mutually agreed and constitutional process, which
plebiscite or process shall take place not earlier than three
months after delivery of such notice. The plebiscite or other
process shall be administered by the Government of the
Federated States of Micronesia in accordance with its
constitutional and legislative processes. If a majority of
the valid ballots cast in the plebiscite or other process
favors termination, the Government of the Federated States of
Micronesia shall, upon certification of the results of the
plebiscite or other process, give notice of termination to
the Government of the United States, such termination to be
effective on the date specified in such notice but not
earlier than three months following the date of delivery of
such notice. The time specified in the notice of termination
may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441,
economic and other assistance by the Government of the United
States shall continue only if and as mutually agreed by the
Governments of the United States and the Federated States of
Micronesia, and in accordance with the parties' respective
constitutional processes.
(b) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections (b) and (c) of section 354 of this Compact, as
amended, and the separate agreement entered into consistent
with those subsections, if termination occurs pursuant to
section 441 prior to the twentieth anniversary of the
effective date of this Compact, as amended, the United States
shall continue to make contributions to the Trust Fund
described in section 215 of this Compact, as amended.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia described in
subsection (b) of this section, if termination occurs
pursuant to section 441 following the twentieth anniversary
of the effective date of this Compact, as amended, the
Federated States of Micronesia shall be entitled to receive
proceeds from the Trust Fund described in section 215 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement governing the
distribution of such proceeds.
Section 452
(a) Should termination occur pursuant to section 442 prior
to the twentieth anniversary of
[[Page H11742]]
the effective date of this Compact, as amended, the following
provisions of this Compact, as amended, shall remain in full
force and effect until the twentieth anniversary of the
effective date of this Compact, as amended, and thereafter as
mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Should termination occur pursuant to section 442 before
the twentieth anniversary of the effective date of the
Compact, as amended:
(1) Except as provided in paragraph (2) of this subsection
and subsection (c) of this section, economic and other
assistance by the United States shall continue only if and as
mutually agreed by the Governments of the United States and
the Federated States of Micronesia.
(2) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections (b) and (c) of section 354 of this Compact, as
amended, and the separate agreement regarding mutual
security, and the Trust Fund Agreement, the United States
shall continue to make contributions to the Trust Fund
described in section 215 of this Compact, as amended, in the
manner described in the Trust Fund Agreement.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and the
Trust Fund Agreement, if termination occurs pursuant to
section 442 following the twentieth anniversary of the
effective date of this Compact, as amended, the Federated
States of Micronesia shall continue to be eligible to receive
proceeds from the Trust Fund described in section 215 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 453
(a) Should termination occur pursuant to section 443 prior
to the twentieth anniversary of the effective date of this
Compact, as amended, the following provisions of this
Compact, as amended, shall remain in full force and effect
until the twentieth anniversary of the effective date of this
Compact, as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Upon receipt of notice of termination pursuant to
section 443, the Government of the United States and the
Government of the Federated States of Micronesia shall
promptly consult with regard to their future relationship.
Except as provided in subsection (c) and (d) of this section,
these consultations shall determine the level of economic and
other assistance, if any, which the Government of the United
States shall provide to the Government of the Federated
States of Micronesia for the period ending on the twentieth
anniversary of the effective date of this Compact, as
amended, and for any period thereafter, if mutually agreed.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and the
Trust Fund Agreement, if termination occurs pursuant to
section 443 prior to the twentieth anniversary of the
effective date of this Compact, as amended, the United States
shall continue to make contributions to the Trust Fund
described in section 215 of this Compact, as amended, in the
manner described in the Trust Fund Agreement.
(d) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and the
Trust Fund Agreement, if termination occurs pursuant to
section 443 following the twentieth anniversary of the
effective date of this Compact, as amended, the Federated
States of Micronesia shall continue to be eligible to receive
proceeds from the Trust Fund described in section 215 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact, as
amended:
(a) The Government of the United States reaffirms its
continuing interest in promoting the economic advancement and
budgetary self-reliance of the people of the Federated States
of Micronesia.
(b) The separate agreements referred to in Article II of
Title Three shall remain in effect in accordance with their
terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only, and
without prejudice to the views of the Government of the
United States or the Government of the Federated States of
Micronesia as to the nature and extent of the jurisdiction of
either of them under international law, the following terms
shall have the following meanings:
(a) ``Trust Territory of the Pacific Islands'' means the
area established in the Trusteeship Agreement consisting of
the former administrative districts of Kosrae, Yap, Ponape,
the Marshall Islands and Truk as described in Title One,
Trust Territory Code, section 1, in force on January 1, 1979.
This term does not include the area of Palau or the Northern
Mariana Islands.
(b) ``Trusteeship Agreement'' means the agreement setting
forth the terms of trusteeship for the Trust Territory of the
Pacific Islands, approved by the Security Council of the
United Nations April 2, 1947, and by the United States July
18, 1947, entered into force July 18, 1947, 61 Stat. 3301,
T.I.A.S. 1665, 8 U.N.T.S. 189.
(c) ``The Federated States of Micronesia'' and ``the
Republic of the Marshall Islands'' are used in a geographic
sense and include the land and water areas to the outer
limits of the territorial sea and the air space above such
areas as now or hereafter recognized by the Government of the
United States.
(d) ``Compact'' means the Compact of Free Association
Between the United States and the Federated States of
Micronesia and the Marshall Islands, that was approved by the
United States Congress in section 201 of Public Law 99-239
(Jan. 14, 1986) and went into effect with respect to the
Federated States of Micronesia on November 3, 1986.
(e) ``Compact, as amended'' means the Compact of Free
Association Between the United States and the Federated
States of Micronesia, as amended. The effective date of the
Compact, as amended, shall be on a date to be determined by
the President of the United States, and agreed to by the
Government of the Federated States of Micronesia, following
formal approval of the Compact, as amended, in accordance
with section 411 of this Compact, as amended.
(f) ``Government of the Federated States of Micronesia''
means the Government established and organized by the
Constitution of the Federated States of Micronesia including
all the political subdivisions and entities comprising that
Government.
(g) ``Government of the Republic of the Marshall Islands''
means the Government established and organized by the
Constitution of the Republic of the Marshall Islands
including all the political subdivisions and entities
comprising that Government.
(h) The following terms shall be defined consistent with
the 1998 Edition of the Radio Regulations of the
International Telecommunications Union as follows:
(1) ``Radiocommunication'' means telecommunication by means
of radio waves.
(2) ``Station'' means one or more transmitters or receivers
or a combination of transmitters and receivers, including the
accessory equipment, necessary at one location for carrying
on a radiocommunication service, or the radio astronomy
service.
(3) ``Broadcasting Service'' means a radiocommunication
service in which the transmissions are intended for direct
reception by the general public. This service may include
sound transmissions, television transmissions or other types
of transmission.
(4) ``Broadcasting Station'' means a station in the
broadcasting service.
(5) ``Assignment (of a radio frequency or radio frequency
channel)'' means an authorization given by an administration
for a radio station to use a radio frequency or radio
frequency channel under specified conditions.
(6) ``Telecommunication'' means any transmission, emission
or reception of signs, signals, writings, images and sounds
or intelligence of any nature by wire, radio, optical or
other electromagnetic systems.
(i) ``Military Areas and Facilities'' means those areas and
facilities in the Federated States of Micronesia reserved or
acquired by the Government of the Federated States of
Micronesia for use by the Government of the United States, as
set forth in the separate agreements referred to in section
321.
(j) ``Tariff Schedules of the United States'' means the
Tariff Schedules of the United States as amended from time to
time and as promulgated pursuant to United States law and
includes the Tariff Schedules of the United States Annotated
(TSUSA), as amended.
(k) ``Vienna Convention on Diplomatic Relations'' means the
Vienna Convention on Diplomatic Relations, done April 18,
1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
(a) The Government of the United States and the Government
of the Federated States of Micronesia previously have
concluded agreements pursuant to the Compact, which shall
remain in effect and shall survive in accordance with their
terms, as follows:
(1) Agreement Concluded Pursuant to Section 234 of the
Compact;
(2) Agreement Between the Government of the United States
and the Government of the Federated States of Micronesia
Regarding Friendship, Cooperation and Mutual Security
Concluded Pursuant to Sections 321 and 323 of the Compact of
Free Association; and
(3) Agreement between the Government of the United States
of America and the Federated States of Micronesia Regarding
Aspects of the Marine Sovereignty and Jurisdiction of the
Federated States of Micronesia.
(b) The Government of the United States and the Government
of the Federated States of Micronesia shall conclude prior to
the date of submission of this Compact, as amended, to the
legislatures of the two countries, the following related
agreements which shall come into effect on the effective date
of this Compact, as amended, and shall survive in accordance
with their terms, as follows:
(1) Federal Programs and Services Agreement Between the
Government of the United States of America and the Government
of the Federated States of Micronesia Concluded Pursuant to
Article III of Title One, Article II of Title Two (including
Section 222), and Section 231 of the Compact of Free
Association, as amended which includes:
(i) Postal Services and Related Programs;
(ii) Weather Services and Related Programs;
(iii) Civil Aviation Safety Service and Related Programs;
(iv) Civil Aviation Economic Services and Related Programs;
(v) United States Disaster Preparedness and Response
Services and Related Programs;
[[Page H11743]]
(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
America: Signed (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.--The Compact of Free
Association, as amended, between the Government of the United
States of America and the Government of the Republic of the
Marshall Islands is as follows:
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF
THE REPUBLIC OF THE MARSHALL ISLANDS
Affirming that their Governments and their relationship as
Governments are founded upon respect for human rights and
fundamental freedoms for all, and that the people of the
Republic of the Marshall Islands have the right to enjoy
self-government; and
Affirming the common interests of the United States of
America and the Republic of the Marshall Islands in creating
and maintaining their close and mutually beneficial
relationship through the free and voluntary association of
their respective Governments; and
Affirming the interest of the Government of the United
States in promoting the economic advancement and budgetary
self-reliance of the Republic of the Marshall Islands; and
Recognizing that their relationship until the entry into
force on October 21, 1986 of the Compact was based upon the
International Trusteeship System of the United Nations
Charter, and in particular Article 76 of the Charter; and
that pursuant to Article 76 of the Charter, the people of the
Republic of the Marshall Islands have progressively developed
their institutions of self-government, and that in the
exercise of their sovereign right to self-determination they,
through their freely-expressed wishes, have adopted a
Constitution appropriate to their particular circumstances;
and
Recognizing that the Compact reflected their common desire
to terminate the Trusteeship and establish a government-to-
government relationship which was in accordance with the new
political status based on the freely expressed wishes of the
people of the Republic of the Marshall Islands and
appropriate to their particular circumstances; and
Recognizing that the people of the Republic of the Marshall
Islands have and retain their sovereignty and their sovereign
right to self-determination and the inherent right to adopt
and amend their own Constitution and form of government and
that the approval of the entry of the Government of the
Republic of the Marshall Islands into the Compact by the
people of the Republic of the Marshall Islands constituted an
exercise of their sovereign right to self-determination; and
Recognizing the common desire of the people of the United
States and the people of the Republic of the Marshall Islands
to maintain their close government-to-government
relationship, the United States and the Republic of the
Marshall Islands:
NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen
their relationship of free association by amending the
Compact, which continues to provide a full measure of self-
government for the people of the Republic of the Marshall
Islands; and
FURTHER AGREE that the relationship of free association
derives from and is as set forth in this Compact, as amended,
by the Governments of the United States and the Republic of
the Marshall Islands; and that, during such relationship of
free association, the respective rights and responsibilities
of the Government of the United States and the Government of
the Republic of the Marshall Islands in regard to this
relationship of free association derive from and are as set
forth in this Compact, as amended.
TITLE ONE
GOVERNMENTAL RELATIONS
Article I
Self-Government
Section 111
The people of the Republic of the Marshall Islands, acting
through the Government established under their Constitution,
are self-governing.
Article II
Foreign Affairs
Section 121
(a) The Government of the Republic of the Marshall Islands
has the capacity to conduct foreign affairs and shall do so
in its own name and right, except as otherwise provided in
this Compact, as amended.
(b) The foreign affairs capacity of the Government of the
Republic of the Marshall Islands includes:
(1) the conduct of foreign affairs relating to law of the
sea and marine resources matters, including the harvesting,
conservation, exploration or exploitation of living and non-
living resources from the sea, seabed or subsoil to the full
extent recognized under international law;
(2) the conduct of its commercial, diplomatic, consular,
economic, trade, banking, postal, civil aviation,
communications, and cultural relations, including
negotiations for the receipt of developmental loans and
grants and the conclusion of arrangements with other
governments and international and intergovernmental
organizations, including any matters specially benefiting its
individual citizens.
(c) The Government of the United States recognizes that the
Government of the Republic of the Marshall Islands has the
capacity to enter into, in its own name and right, treaties
and other international agreements with governments and
regional and international organizations.
(d) In the conduct of its foreign affairs, the Government
of the Republic of the Marshall Islands confirms that it
shall act in accordance with principles of international law
and shall settle its international disputes by peaceful
means.
Section 122
The Government of the United States shall support
applications by the Government of the Republic of the
Marshall Islands for membership or other participation in
regional or international organizations as may be mutually
agreed.
Section 123
(a) In recognition of the authority and responsibility of
the Government of the United States under Title Three, the
Government of the Republic of the Marshall Islands shall
consult, in the conduct of its foreign affairs, with the
Government of the United States.
(b) In recognition of the foreign affairs capacity of the
Government of the Republic of the Marshall Islands, the
Government of the United States, in the conduct of its
foreign affairs, shall consult with the Government of the
Republic of the Marshall Islands on matters that the
Government of the United States regards as relating to or
affecting the Government of the Republic of the Marshall
Islands.
Section 124
The Government of the United States may assist or act on
behalf of the Government of the Republic of the Marshall
Islands in the area of foreign affairs as may be requested
and mutually agreed from time to time. The Government
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of the United States shall not be responsible to third
parties for the actions of the Government of the Republic of
the Marshall Islands undertaken with the assistance or
through the agency of the Government of the United States
pursuant to this section unless expressly agreed.
Section 125
The Government of the United States shall not be
responsible for nor obligated by any actions taken by the
Government of the Republic of the Marshall Islands in the
area of foreign affairs, except as may from time to time be
expressly agreed.
Section 126
At the request of the Government of the Republic of the
Marshall Islands and subject to the consent of the receiving
state, the Government of the United States shall extend
consular assistance on the same basis as for citizens of the
United States to citizens of the Republic of the Marshall
Islands for travel outside the Republic of the Marshall
Islands, the United States and its territories and
possessions.
Section 127
Except as otherwise provided in this Compact, as amended,
or its related agreements, all obligations, responsibilities,
rights and benefits of the Government of the United States as
Administering Authority which resulted from the application
pursuant to the Trusteeship Agreement of any treaty or other
international agreement to the Trust Territory of the Pacific
Islands on October 20, 1986, are, as of that date, no longer
assumed and enjoyed by the Government of the United States.
Article III
Communications
Section 131
(a) The Government of the Republic of the Marshall Islands
has full authority and responsibility to regulate its
domestic and foreign communications, and the Government of
the United States shall provide communications assistance as
mutually agreed.
(b) The Government of the Republic of the Marshall Islands
has elected to undertake all functions previously performed
by the Government of the United States with respect to
domestic and foreign communications, except for those
functions set forth in a separate agreement entered into
pursuant to this section of the Compact, as amended.
Section 132
The Government of the Republic of the Marshall Islands
shall permit the Government of the United States to operate
telecommunications services in the Republic of the Marshall
Islands to the extent necessary to fulfill the obligations of
the Government of the United States under this Compact, as
amended, in accordance with the terms of separate agreements
entered into pursuant to this section of the Compact, as
amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relationship
that exists between the United States and the Republic of the
Marshall Islands, under the Compact, as amended, any person
in the following categories may be admitted to lawfully
engage in occupations, and establish residence as a
nonimmigrant in the United States and its territories and
possessions (the ``United States'') without regard to
paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the
Immigration and Nationality Act, as amended, 8 U.S.C.
1182(a)(5) or (7)(B)(i)(II):
(1) a person who, on October 21, 1986, was a citizen of the
Trust Territory of the Pacific Islands, as defined in Title
53 of the Trust Territory Code in force on January 1, 1979,
and has become and remains a citizen of the Republic of the
Marshall Islands;
(2) a person who acquires the citizenship of the Republic
of the Marshall Islands at birth, on or after the effective
date of the Constitution of the Republic of the Marshall
Islands;
(3) an immediate relative of a person referred to in
paragraphs (1) or (2) of this section, provided that such
immediate relative is a naturalized citizen of the Republic
of the Marshall Islands who has been an actual resident there
for not less than five years after attaining such
naturalization and who holds a certificate of actual
residence, and further provided, that, in the case of a
spouse, such spouse has been married to the person referred
to in paragraph (1) or (2) of this section for at least five
years, and further provided, that the Government of the
United States is satisfied that such naturalized citizen
meets the requirement of subsection (b) of section 104 of
Public Law 99-239 as it was in effect on the day prior to the
effective date of this Compact, as amended;
(4) a naturalized citizen of the Republic of the Marshall
Islands who was an actual resident there for not less than
five years after attaining such naturalization and who
satisfied these requirements as of April 30, 2003, who
continues to be an actual resident and holds a certificate of
actual residence, and whose name is included in a list
furnished by the Government of the Republic of the Marshall
Islands to the Government of the United States no later than
the effective date of the Compact, as amended, in form and
content acceptable to the Government of the United States,
provided, that the Government of the United States is
satisfied that such naturalized citizen meets the requirement
of subsection (b) of section 104 of Public Law 99-239 as it
was in effect on the day prior to the effective date of this
Compact, as amended; or
(5) an immediate relative of a citizen of the Republic of
the Marshall Islands, regardless of the immediate relative's
country of citizenship or period of residence in the Republic
of the Marshall Islands, if the citizen of the Republic of
the Marshall Islands is serving on active duty in any branch
of the United States Armed Forces, or in the active reserves.
(b) Notwithstanding subsection (a) of this section, a
person who is coming to the United States pursuant to an
adoption outside the United States, or for the purpose of
adoption in the United States, is ineligible for admission
under the Compact and the Compact, as amended. This
subsection shall apply to any person who is or was an
applicant for admission to the United States on or after
March 1, 2003, including any applicant for admission in
removal proceedings (including appellate proceedings) on or
after March 1, 2003, regardless of the date such proceedings
were commenced. This subsection shall have no effect on the
ability of the Government of the United States or any United
States State or local government to commence or otherwise
take any action against any person or entity who has violated
any law relating to the adoption of any person.
(c) Notwithstanding subsection (a) of this section, no
person who has been or is granted citizenship in the Republic
of the Marshall Islands, or has been or is issued a Republic
of the Marshall Islands passport pursuant to any investment,
passport sale, or similar program has been or shall be
eligible for admission to the United States under the Compact
or the Compact, as amended.
(d) A person admitted to the United States under the
Compact, or the Compact, as amended, shall be considered to
have the permission of the Government of the United States to
accept employment in the United States. An unexpired Republic
of the Marshall Islands passport with unexpired documentation
issued by the Government of the United States evidencing
admission under the Compact or the Compact, as amended, shall
be considered to be documentation establishing identity and
employment authorization under section 274A(b)(1)(B) of the
Immigration and Nationality Act, as amended, 8 U.S.C.
1324a(b)(1)(B). The Government of the United States will take
reasonable and appropriate steps to implement and publicize
this provision, and the Government of the Republic of the
Marshall Islands will also take reasonable and appropriate
steps to publicize this provision.
(e) For purposes of the Compact and the Compact, as
amended:
(1) the term ``residence'' with respect to a person means
the person's principal, actual dwelling place in fact,
without regard to intent, as provided in section 101(a)(33)
of the Immigration and Nationality Act, as amended, 8 U.S.C.
1101(a)(33), and variations of the term ``residence,''
including ``resident'' and ``reside,'' shall be similarly
construed;
(2) the term ``actual residence'' means physical presence
in the Republic of the Marshall Islands during eighty-five
percent of the five-year period of residency required by
section 141(a)(3) and (4);
(3) the term ``certificate of actual residence'' means a
certificate issued to a naturalized citizen by the Government
of the Republic of the Marshall Islands stating that the
citizen has complied with the actual residence requirement of
section 141(a)(3) or (4);
(4) the term ``nonimmigrant'' means an alien who is not an
``immigrant'' as defined in section 101(a)(15) of such Act, 8
U.S.C. 1101(a)(15); and
(5) the term ``immediate relative'' means a spouse, or
unmarried son or unmarried daughter less than 21 years of
age.
(f) The Immigration and Nationality Act, as amended, shall
apply to any person admitted or seeking admission to the
United States (other than a United States possession or
territory where such Act does not apply) under the Compact or
the Compact, as amended, and nothing in the Compact or the
Compact, as amended, shall be construed to limit, preclude,
or modify the applicability of, with respect to such person:
(1) any ground of inadmissibility or deportability under
such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II)
of such Act, as provided in subsection (a) of this section),
and any defense thereto, provided that, section 237(a)(5) of
such Act shall be construed and applied as if it reads as
follows: ``any alien who has been admitted under the Compact,
or the Compact, as amended, who cannot show that he or she
has sufficient means of support in the United States, is
deportable;''
(2) the authority of the Government of the United States
under section 214(a)(1) of such Act to provide that admission
as a nonimmigrant shall be for such time and under such
conditions as the Government of the United States may by
regulations prescribe;
(3) except for the treatment of certain documentation for
purposes of section 274A(b)(1)(B) of such Act as provided by
subsection (d) of this section of the Compact, as amended,
any requirement under section 274A, including but not limited
to section 274A(b)(1)(E);
(4) section 643 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996, Public Law 104-208, and
actions taken pursuant to section 643; and
(5) the authority of the Government of the United States
otherwise to administer and enforce the Immigration and
Nationality Act, as amended, or other United States law.
(g) Any authority possessed by the Government of the United
States under this section of the Compact or the Compact, as
amended, may also be exercised by the Government of a
territory or possession of the United States where the
Immigration and Nationality Act, as amended, does not apply,
to the extent such exercise of authority is lawful under a
statute or regulation of such territory or possession that is
authorized by the laws of the United States.
(h) Subsection (a) of this section does not confer on a
citizen of the Republic of the Marshall Islands the right to
establish the residence necessary for naturalization under
the Immigration and Nationality Act, as amended, or to
petition for benefits for alien relatives under that Act.
Subsection (a) of this section, however, shall not
[[Page H11745]]
prevent a citizen of the Republic of the Marshall Islands
from otherwise acquiring such rights or lawful permanent
resident alien status in the United States.
Section 142
(a) Any citizen or national of the United States may be
admitted to lawfully engage in occupations, and reside in the
Republic of the Marshall Islands, subject to the rights of
the Government of the Republic of the Marshall Islands to
deny entry to or deport any such citizen or national as an
undesirable alien. Any determination of inadmissibility or
deportability shall be based on reasonable statutory grounds
and shall be subject to appropriate administrative and
judicial review within the Republic of the Marshall Islands.
If a citizen or national of the United States is a spouse of
a citizen of the Republic of the Marshall Islands, the
Government of the Republic of the Marshall Islands shall
allow the United States citizen spouse to establish
residence. Should the Republic of the Marshall Islands
citizen spouse predecease the United States citizen spouse
during the marriage, the Government of the Republic of the
Marshall Islands shall allow the United States citizen spouse
to continue to reside in the Republic of the Marshall
Islands.
(b) In enacting any laws or imposing any requirements with
respect to citizens and nationals of the United States
entering the Republic of the Marshall Islands under
subsection (a) of this section, including any grounds of
inadmissibility or deportability, the Government of the
Republic of the Marshall Islands shall accord to such
citizens and nationals of the United States treatment no less
favorable than that accorded to citizens of other countries.
(c) Consistent with subsection (a) of this section, with
respect to citizens and nationals of the United States
seeking to engage in employment or invest in the Republic of
the Marshall Islands, the Government of the Republic of the
Marshall Islands shall adopt immigration-related procedures
no less favorable than those adopted by the Government of the
United States with respect to citizens of the Republic of the
Marshall Islands seeking employment in the United States.
Section 143
Any person who relinquishes, or otherwise loses, his United
States nationality or citizenship, or his Republic of the
Marshall Islands citizenship, shall be ineligible to receive
the privileges set forth in sections 141 and 142. Any such
person may apply for admission to the United States or the
Republic of the Marshall Islands, as the case may be, in
accordance with any other applicable laws of the United
States or the Republic of the Marshall Islands relating to
immigration of aliens from other countries. The laws of the
Republic of the Marshall Islands or the United States, as the
case may be, shall dictate the terms and conditions of any
such person's stay.
Article V
Representation
Section 151
Relations between the Government of the United States and
the Government of the Republic of the Marshall Islands shall
be conducted in accordance with the Vienna Convention on
Diplomatic Relations. In addition to diplomatic missions and
representation, the Governments may establish and maintain
other offices and designate other representatives on terms
and in locations as may be mutually agreed.
Section 152
(a) Any citizen or national of the United States who,
without authority of the United States, acts as the agent of
the Government of the Republic of the Marshall Islands with
regard to matters specified in the provisions of the Foreign
Agents Registration Act of 1938, as amended (22 U.S.C. 611 et
seq.), that apply with respect to an agent of a foreign
principal shall be subject to the requirements of such Act.
Failure to comply with such requirements shall subject such
citizen or national to the same penalties and provisions of
law as apply in the case of the failure of such an agent of a
foreign principal to comply with such requirements. For
purposes of the Foreign Agents Registration Act of 1938, the
Republic of the Marshall Islands shall be considered to be a
foreign country.
(b) Subsection (a) of this section shall not apply to a
citizen or national of the United States employed by the
Government of the Republic of the Marshall Islands with
respect to whom the Government of the Republic of the
Marshall Islands from time to time certifies to the
Government of the United States that such citizen or national
is an employee of the Republic of the Marshall Islands whose
principal duties are other than those matters specified in
the Foreign Agents Registration Act of 1938, as amended, that
apply with respect to an agent of a foreign principal. The
agency or officer of the United States receiving such
certifications shall cause them to be filed with the Attorney
General, who shall maintain a publicly available list of the
persons so certified.
Article VI
Environmental Protection
Section 161
The Governments of the United States and the Republic of
the Marshall Islands declare that it is their policy to
promote efforts to prevent or eliminate damage to the
environment and biosphere and to enrich understanding of the
natural resources of the Republic of the Marshall Islands. In
order to carry out this policy, the Government of the United
States and the Government of the Republic of the Marshall
Islands agree to the following mutual and reciprocal
undertakings:
(a) The Government of the United States:
(1) shall, for its activities controlled by the U.S. Army
at Kwajalein Atoll and in the Mid-Atoll Corridor and for U.S.
Army Kwajalein Atoll activities in the Republic of the
Marshall Islands, continue to apply the Environmental
Standards and Procedures for United States Army Kwajalein
Atoll Activities in the Republic of the Marshall Islands,
unless and until those Standards or Procedures are modified
by mutual agreement of the Governments of the United States
and the Republic of the Marshall Islands;
(2) shall apply the National Environmental Policy Act of
1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities
under the Compact, as amended, and its related agreements as
if the Republic of the Marshall Islands were the United
States;
(3) in the conduct of any activity not described in section
161(a)(1) requiring the preparation of an Environmental
Impact Statement under section 161(a)(2), shall comply with
standards substantively similar to those required by the
following laws of the United States, taking into account the
particular environment of the Republic of the Marshall
Islands; the Endangered Species Act of 1973, as amended, 16
U.S.C. 1531 et seq.; the Clean Air Act, as amended, 42 U.S.C.
7401 et seq.; the Clean Water Act (Federal Water Pollution
Control Act), as amended, 33 U.S.C. 1251 et seq.; Title I of
the Marine Protection, Research and Sanctuaries Act of 1972
(the Ocean Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic
Substances Control Act, as amended, 15 U.S.C. 2601 et seq.;
the Solid Waste Disposal Act, as amended, 42 U.S.C. 6901 et
seq.; and such other environmental protection laws of the
United States and the Republic of the Marshall Islands as may
be agreed from time to time with the Government of the
Republic of the Marshall Islands;
(4) shall, prior to conducting any activity not described
in section 161(a)(1) requiring the preparation of an
Environmental Impact Statement under section 161(a)(2),
develop, as agreed with the Government of the Republic of the
Marshall Islands, written environmental standards and
procedures to implement the substantive provisions of the
laws made applicable to U.S. Government activities in the
Republic of the Marshall Islands, pursuant to section
161(a)(3).
(b) The Government of the Republic of the Marshall Islands
shall continue to develop and implement standards and
procedures to protect its environment. As a reciprocal
obligation to the undertakings of the Government of the
United States under this Article, the Republic of the
Marshall Islands, taking into account its particular
environment, shall continue to develop and implement
standards for environmental protection substantively similar
to those required of the Government of the United States by
section 161(a)(3) prior to its conducting activities in the
Republic of the Marshall Islands, substantively equivalent to
activities conducted there by the Government of the United
States and, as a further reciprocal obligation, shall enforce
those standards.
(c) Section 161(a), including any standard or procedure
applicable thereunder, and section 161(b) may be modified or
superseded in whole or in part by agreement of the Government
of the United States and the Government of the Republic of
the Marshall Islands.
(d) In the event that an Environmental Impact Statement is
no longer required under the laws of the United States for
major Federal actions significantly affecting the quality of
the human environment, the regulatory regime established
under sections 161(a)(3) and 161(a)(4) shall continue to
apply to such activities of the Government of the United
States until amended by mutual agreement.
(e) The President of the United States may exempt any of
the activities of the Government of the United States under
this Compact, as amended, and its related agreements from any
environmental standard or procedure which may be applicable
under sections 161(a)(3) and 161(a)(4) if the President
determines it to be in the paramount interest of the
Government of the United States to do so, consistent with
Title Three of this Compact, as amended, and the obligations
of the Government of the United States under international
law. Prior to any decision pursuant to this subsection, the
views of the Government of the Republic of the Marshall
Islands shall be sought and considered to the extent
practicable. If the President grants such an exemption, to
the extent practicable, a report with his reasons for
granting such exemption shall be given promptly to the
Government of the Republic of the Marshall Islands.
(f) The laws of the United States referred to in section
161(a)(3) shall apply to the activities of the Government of
the United States under this Compact, as amended, and its
related agreements only to the extent provided for in this
section.
Section 162
The Government of the Republic of the Marshall Islands may
bring an action for judicial review of any administrative
agency action or any activity of the Government of the United
States pursuant to section 161(a) for enforcement of the
obligations of the Government of the United States arising
thereunder. The United States District Court for the District
of Hawaii and the United States District Court for the
District of Columbia shall have jurisdiction over such action
or activity, and over actions brought under section 172(b)
which relate to the activities of the Government of the
United States and its officers and employees, governed by
section 161, provided that:
(a) Such actions may only be civil actions for any
appropriate civil relief other than punitive damages against
the Government of the United States or, where required by
law, its officers in their official capacity; no criminal
actions may arise under this section.
(b) Actions brought pursuant to this section may be
initiated only by the Government of the Republic of the
Marshall Islands.
(c) Administrative agency actions arising under section 161
shall be reviewed pursuant to
[[Page H11746]]
the standard of judicial review set forth in 5 U.S.C. 706.
(d) The United States District Court for the District of
Hawaii and the United States District Court for the District
of Columbia shall have jurisdiction to issue all necessary
processes, and the Government of the United States agrees to
submit itself to the jurisdiction of the court; decisions of
the United States District Court shall be reviewable in the
United States Court of Appeals for the Ninth Circuit or the
United States Court of Appeals for the District of Columbia,
respectively, or in the United States Supreme Court as
provided by the laws of the United States.
(e) The judicial remedy provided for in this section shall
be the exclusive remedy for the judicial review or
enforcement of the obligations of the Government of the
United States under this Article and actions brought under
section 172(b), which relate to the activities of the
Government of the United States and its officers and
employees governed by section 161.
(f) In actions pursuant to this section, the Government of
the Republic of the Marshall Islands shall be treated as if
it were a United States citizen.
Section 163
(a) For the purpose of gathering data necessary to study
the environmental effects of activities of the Government of
the United States subject to the requirements of this
Article, the Government of the Republic of the Marshall
Islands shall be granted access to facilities operated by the
Government of the United States in the Republic of the
Marshall Islands, to the extent necessary for this purpose,
except to the extent such access would unreasonably interfere
with the exercise of the authority and responsibility of the
Government of the United States under Title Three.
(b) The Government of the United States, in turn, shall be
granted access to the Republic of the Marshall Islands for
the purpose of gathering data necessary to discharge its
obligations under this Article, except to the extent such
access would unreasonably interfere with the exercise of the
authority and responsibility of the Government of the
Republic of the Marshall Islands under Title One, and to the
extent necessary for this purpose shall be granted access to
documents and other information to the same extent similar
access is provided the Government of the Republic of the
Marshall Islands under the Freedom of Information Act, 5
U.S.C. 552.
(c) The Government of the Republic of the Marshall Islands
shall not impede efforts by the Government of the United
States to comply with applicable standards and procedures.
Article VII
General Legal Provisions
Section 171
Except as provided in this Compact, as amended, or its
related agreements, the application of the laws of the United
States to the Trust Territory of the Pacific Islands by
virtue of the Trusteeship Agreement ceased with respect to
the Marshall Islands on October 21, 1986, the date the
Compact went into effect.
Section 172
(a) Every citizen of the Republic of the Marshall Islands
who is not a resident of the United States shall enjoy the
rights and remedies under the laws of the United States
enjoyed by any non-resident alien.
(b) The Government of the Republic of the Marshall Islands
and every citizen of the Republic of the Marshall Islands
shall be considered to be a ``person'' within the meaning of
the Freedom of Information Act, 5 U.S.C. 552, and of the
judicial review provisions of the Administrative Procedure
Act, 5 U.S.C. 701-706, except that only the Government of the
Republic of the Marshall Islands may seek judicial review
under the Administrative Procedure Act or judicial
enforcement under the Freedom of Information Act when such
judicial review or enforcement relates to the activities of
the Government of the United States governed by sections 161
and 162.
Section 173
The Governments of the United States and the Republic of
the Marshall Islands agree to adopt and enforce such
measures, consistent with this Compact, as amended, and its
related agreements, as may be necessary to protect the
personnel, property, installations, services, programs and
official archives and documents maintained by the Government
of the United States in the Republic of the Marshall Islands
pursuant to this Compact, as amended, and its related
agreements and by the Government of the Republic of the
Marshall Islands in the United States pursuant to this
Compact, Compact, as amended, and its related agreements.
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Republic of the Marshall Islands,
and its agencies and officials, shall be immune from the
jurisdiction of the court of the United States, and the
Government of the United States, and its agencies and
officials, shall be immune from the jurisdiction of the
courts of the Republic of the Marshall Islands.
(b) The Government of the United States accepts
responsibility for and shall pay:
(1) any unpaid money judgment rendered by the High Court of
the Trust Territory of the Pacific Islands against the
Government of the United States with regard to any cause of
action arising as a result of acts or omissions of the
Government of the Trust Territory of the Pacific Islands or
the Government of the United States prior to October 21,
1986;
(2) any claim settled by the claimant and the Government of
the Trust Territory of the Pacific Islands but not paid as of
October 21, 1986; and
(3) settlement of any administrative claim or of any action
before a court of the Trust Territory of the Pacific Islands
or the Government of the United States, arising as a result
of acts or omissions of the Government of the Trust Territory
of the Pacific Islands or the Government of the United
States.
(c) Any claim not referred to in section 174(b) and arising
from an act or omission of the Government of the Trust
Territory of the Pacific Islands or the Government of the
United States prior to the effective date of the Compact
shall be adjudicated in the same manner as a claim
adjudicated according to section 174(d). In any claim against
the Government of the Trust Territory of the Pacific Islands,
the Government of the United States shall stand in the place
of the Government of the Trust Territory of the Pacific
Islands. A judgment on any claim referred to in section
174(b) or this subsection, not otherwise satisfied by the
Government of the United States, may be presented for
certification to the United States Court of Appeals for the
Federal Circuit, or its successor courts, which shall have
jurisdiction therefore, notwithstanding the provisions of 28
U.S.C. 1502, and which court's decisions shall be reviewable
as provided by the laws of the United States. The United
States Court of Appeals for the Federal Circuit shall certify
such judgment, and order payment thereof, unless it finds,
after a hearing, that such judgment is manifestly erroneous
as to law or fact, or manifestly excessive. In either of such
cases the United States Court of Appeals for the Federal
Circuit shall have jurisdiction to modify such judgment.
(d) The Government of the Republic of the Marshall Islands
shall not be immune from the jurisdiction of the courts of
the United States, and the Government of the United States
shall not be immune from the jurisdiction of the courts of
the Republic of the Marshall Islands in any civil case in
which an exception to foreign state immunity is set forth in
the Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.)
or its successor statutes.
Section 175
(a) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall have
the force of law, shall govern mutual assistance and
cooperation in law enforcement matters, including the
pursuit, capture, imprisonment and extradition of fugitives
from justice and the transfer of prisoners, as well as other
law enforcement matters. In the United States, the laws of
the United States governing international extradition,
including 18 U.S.C. 3184, 3186, and 3188-95, shall be
applicable to the extradition of fugitives under the separate
agreement, and the laws of the United States governing the
transfer of prisoners, including 18 U.S.C. 4100-15, shall be
applicable to the transfer of prisoners under the separate
agreement; and
(b) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall have
the force of law, shall govern requirements relating to labor
recruitment practices, including registration, reporting,
suspension or revocation of authorization to recruit persons
for employment in the United States, and enforcement for
violations of such requirements.
Section 176
The Government of the Republic of the Marshall Islands
confirms that final judgments in civil cases rendered by any
court of the Trust Territory of the Pacific Islands shall
continue in full force and effect, subject to the
constitutional power of the courts of the Republic of the
Marshall Islands to grant relief from judgments in
appropriate cases.
Section 177
Section 177 of the Compact entered into force with respect
to the Marshall Islands on October 21, 1986 as follows:
``(a) The Government of the United States accepts the
responsibility for compensation owing to citizens of the
Marshall Islands, or the Federated States of Micronesia, (or
Palau) for loss or damage to property and person of the
citizens of the Marshall Islands, or the Federated States of
Micronesia, resulting from the nuclear testing program which
the Government of the United States conducted in the Northern
Marshall Islands between June 30, 1946, and August 18, 1958.
``(b) The Government of the United States and the
Government of the Marshall Islands shall set forth in a
separate agreement provisions for the just and adequate
settlement of all such claims which have arisen in regard to
the Marshall Islands and its citizens and which have not as
yet been compensated or which in the future may arise, for
the continued administration by the Government of the United
States of direct radiation related medical surveillance and
treatment programs and radiological monitoring activities and
for such additional programs and activities as may be
mutually agreed, and for the assumption by the Government of
the Marshall Islands of responsibility for enforcement of
limitations on the utilization of affected areas developed in
cooperation with the Government of the United States and for
the assistance by the Government of the United States in the
exercise of such responsibility as may be mutually agreed.
This separate agreement shall come into effect simultaneously
with this Compact and shall remain in effect in accordance
with its own terms.
``(c) The Government of the United States shall provide to
the Government of the Marshall Islands, on a grant basis, the
amount of $150 million to be paid and distributed in
accordance with the separate agreement referred to in this
Section, and shall provide the services and programs set
forth in this separate agreement, the language of which is
incorporated into this Compact.''
The Compact, as amended, makes no changes to, and has no
effect upon, Section 177 of the Compact, nor does the
Compact, as amended, change or affect the separate agreement
referred
[[Page H11747]]
to in Section 177 of the Compact including Articles IX and X
of that separate agreement, and measures taken by the parties
thereunder.
Section 178
(a) The Federal agencies of the Government of the United
States that provide services and related programs in the
Republic of the Marshall Islands pursuant to Title Two are
authorized to settle and pay tort claims arising in the
Republic of the Marshall Islands from the activities of such
agencies or from the acts or omissions of the employees of
such agencies. Except as provided in section 178(b), the
provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply
exclusively to such administrative settlements and payments.
(b) Claims under section 178(a) that cannot be settled
under section 178(a) shall be disposed of exclusively in
accordance with Article II of Title Four. Arbitration awards
rendered pursuant to this subsection shall be paid out of
funds under 31 U.S.C. 1304.
(c) The Government of the United States and the Government
of the Republic of the Marshall Islands shall, in the
separate agreement referred to in section 231, provide for:
(1) the administrative settlement of claims referred to in
section 178(a), including designation of local agents in each
State of the Republic of the Marshall Islands; such agents to
be empowered to accept, investigate and settle such claims,
in a timely manner, as provided in such separate agreements;
and
(2) arbitration, referred to in section 178(b), in a timely
manner, at a site convenient to the claimant, in the event a
claim is not otherwise settled pursuant to section 178(a).
(d) The provisions of section 174(d) shall not apply to
claims covered by this section.
(e) Except as otherwise explicitly provided by law of the
United States, this Compact, as amended, or its related
agreements, neither the Government of the United States, its
instrumentalities, nor any person acting on behalf of the
Government of the United States, shall be named a party in
any action based on, or arising out of, the activity or
activities of a recipient of any grant or other assistance
provided by the Government of the United States (or the
activity or activities of the recipient's agency or any other
person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Republic of the Marshall Islands
shall not exercise criminal jurisdiction over the Government
of the United States, or its instrumentalities.
(b) The courts of the Republic of the Marshall Islands
shall not exercise criminal jurisdiction over any person if
the Government of the United States provides notification to
the Government of the Republic of the Marshall Islands that
such person was acting on behalf of the Government of the
United States, for actions taken in furtherance of section
221 or 224 of this amended Compact, or any other provision of
law authorizing financial, program, or service assistance to
the Republic of the Marshall Islands.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Annual Grant Assistance
(a) In order to assist the Government of the Republic of
the Marshall Islands in its efforts to promote the economic
advancement and budgetary self-reliance of its people, and in
recognition of the special relationship that exists between
the Republic of the Marshall Islands and the United States,
the Government of the United States shall provide assistance
on a grant basis for a period of twenty years in the amounts
set forth in section 217, commencing on the effective date of
this Compact, as amended. Such grants shall be used for
assistance in education, health care, the environment, public
sector capacity building, and private sector development, or
for other areas as mutually agreed, with priorities in the
education and health care sectors. Consistent with the
medium-term budget and investment framework described in
subsection (f) of this section, the proposed division of this
amount among the identified areas shall require the
concurrence of both the Government of the United States and
the Government of the Republic of the Marshall Islands,
through the Joint Economic Management and Financial
Accountability Committee described in section 214. The
Government of the United States shall disburse the grant
assistance and monitor the use of such grant assistance in
accordance with the provisions of this Article and an
Agreement Concerning Procedures for the Implementation of
United States Economic Assistance Provided in the Compact, as
Amended, of Free Association Between the Government of the
United States of America and the Government of the Republic
of the Marshall Islands (``Fiscal Procedures Agreement'')
which shall come into effect simultaneously with this
Compact, as amended.
(1) Education.--United States grant assistance shall be
made available in accordance with the strategic framework
described in subsection (f) of this section to support and
improve the educational system of the Republic of the
Marshall Islands and develop the human, financial, and
material resources necessary for the Republic of the Marshall
Islands to perform these services. Emphasis should be placed
on advancing a quality basic education system.
(2) Health.--United States grant assistance shall be made
available in accordance with the strategic framework
described in subsection (f) of this section to support and
improve the delivery of preventive, curative and
environmental care and develop the human, financial, and
material resources necessary for the Republic of the Marshall
Islands to perform these services.
(3) Private sector development.--United States grant
assistance shall be made available in accordance with the
strategic framework described in subsection (f) of this
section to support the efforts of the Republic of the
Marshall Islands to attract foreign investment and increase
indigenous business activity by vitalizing the commercial
environment, ensuring fair and equitable application of the
law, promoting adherence to core labor standards, maintaining
progress toward privatization of state-owned and partially
state-owned enterprises, and engaging in other reforms.
(4) Capacity building in the public sector.--United States
grant assistance shall be made available in accordance with
the strategic framework described in subsection (f) of this
section to support the efforts of the Republic of the
Marshall Islands to build effective, accountable and
transparent national and local government and other public
sector institutions and systems.
(5) Environment.--United States grant assistance shall be
made available in accordance with the strategic framework
described in subsection (f) of this section to increase
environmental protection; establish and manage conservation
areas; engage in environmental infrastructure planning,
design construction and operation; and to involve the
citizens of the Republic of the Marshall Islands in the
process of conserving their country's natural resources.
(b) Kwajalein Atoll.--
(1) Of the total grant assistance made available under
subsection (a) of this section, the amount specified herein
shall be allocated annually from fiscal year 2004 through
fiscal year 2023 (and thereafter in accordance with the
Agreement between the Government of the United States and the
Government of the Republic of the Marshall Islands Regarding
Military Use and Operating Rights) to advance the objectives
and specific priorities set forth in subsections (a) and (d)
of this section and the Fiscal Procedures Agreement, to
address the special needs of the community at Ebeye,
Kwajalein Atoll and other Marshallese communities within
Kwajalein Atoll. This United States grant assistance shall be
made available, in accordance with the medium-term budget and
investment framework described in subsection (f) of this
section, to support and improve the infrastructure and
delivery of services and develop the human and material
resources necessary for the Republic of the Marshall Islands
to carry out its responsibility to maintain such
infrastructure and deliver such services. The amount of this
assistance shall be $3,100,000, with an inflation adjustment
as provided in section 218, from fiscal year 2004 through
fiscal year 2013 and the fiscal year 2013 level of funding,
with an inflation adjustment as provided in section 218, will
be increased by $2 million for fiscal year 2014. The fiscal
year 2014 level of funding, with an inflation adjustment as
provided in section 218, will be made available from fiscal
year 2015 through fiscal year 2023 (and thereafter as noted
above).
(2) The Government of the United States shall also provide
to the Government of the Republic of the Marshall Islands, in
conjunction with section 321(a) of this Compact, as amended,
an annual payment from fiscal year 2004 through fiscal year
2023 (and thereafter in accordance with the Agreement between
the Government of the United States and the Government of the
Republic of the Marshall Islands Regarding Military Use and
Operating Rights) of $1.9 million. This grant assistance will
be subject to the Fiscal Procedures Agreement and will be
adjusted for inflation under section 218 and used to address
the special needs of the community at Ebeye, Kwajalein Atoll
and other Marshallese communities within Kwajalein Atoll with
emphasis on the Kwajalein landowners, as described in the
Fiscal Procedures Agreement.
(3) Of the total grant assistance made available under
subsection (a) of this section, and in conjunction with
section 321(a) of the Compact, as amended, $200,000, with an
inflation adjustment as provided in section 218, shall be
allocated annually from fiscal year 2004 through fiscal year
2023 (and thereafter as provided in the Agreement between the
Government of the United States and the Government of the
Republic of the Marshall Islands Regarding Military Use and
Operating Rights) for a grant to support increased
participation of the Government of the Republic of the
Marshall Islands Environmental Protection Authority in the
annual U.S. Army Kwajalein Atoll Environmental Standards
Survey and to promote a greater Government of the Republic of
the Marshall Islands capacity for independent analysis of the
Survey's findings and conclusions.
(c) Humanitarian Assistance--Republic of the Marshall
Islands Program.--In recognition of the special development
needs of the Republic of the Marshall Islands, the Government
of the United States shall make available to the Government
of the Republic of the Marshall Islands, on its request and
to be deducted from the grant amount made available under
subsection (a) of this section, a Humanitarian Assistance--
Republic of the Marshall Islands (``HARMI'') Program with
emphasis on health, education, and infrastructure (including
transportation), projects and such other projects as mutually
agreed. The terms and conditions of the HARMI shall be set
forth in the Agreement Regarding the Military Use and
Operating Rights of the Government of the United States in
the Republic of the Marshall Islands Concluded Pursuant to
Sections 321 and 323 of the Compact of Free Association, as
Amended, which shall come into effect simultaneously with the
amendments to this Compact.
(d) Public Infrastructure.--
(1) Unless otherwise agreed, not less than 30 percent and
not more than 50 percent of U.S. annual grant assistance
provided under this section shall be made available in
accordance with a list of specific projects included in the
infrastructure improvement and maintenance plan prepared by
the Government of the Republic of the Marshall Islands as
part of the strategic
[[Page H11748]]
framework described in subsection (f) of this section.
(2) Infrastructure maintenance fund.--Five percent of the
annual public infrastructure grant made available under
paragraph (1) of this subsection shall be set aside, with an
equal contribution from the Government of the Republic of the
Marshall Islands, as a contribution to an Infrastructure
Maintenance Fund. Administration of the Infrastructure
Maintenance Fund shall be governed by the Fiscal Procedures
Agreement.
(e) Disaster Assistance Emergency Fund.--Of the total grant
assistance made available under subsection (a) of this
section, an amount of two hundred thousand dollars ($200,000)
shall be provided annually, with an equal contribution from
the Government of the Republic of the Marshall Islands, as a
contribution to a Disaster Assistance Emergency Fund
(``DAEF''). Any funds from the DAEF may be used only for
assistance and rehabilitation resulting from disasters and
emergencies. The funds will be accessed upon declaration of a
State of Emergency by the Government of the Republic of the
Marshall Islands, with the concurrence of the United States
Chief of Mission to the Republic of the Marshall Islands.
Administration of the DAEF shall be governed by the Fiscal
Procedures Agreement.
(f) Budget and Investment Framework.--The Government of the
Republic of the Marshall Islands shall prepare and maintain
an official medium-term budget and investment framework. The
framework shall be strategic in nature, shall be continuously
reviewed and updated through the annual budget process, and
shall make projections on a multi-year rolling basis. Each of
the sectors and areas named in subsections (a), (b), and (d)
of this section, or other sectors and areas as mutually
agreed, shall be accorded specific treatment in the
framework. Those portions of the framework that contemplate
the use of United States grant funds shall require the
concurrence of both the Government of the United States and
the Government of the Republic of the Marshall Islands.
Section 212--Kwajalein Impact and Use
The Government of the United States shall provide to the
Government of the Republic of the Marshall Islands in
conjunction with section 321(a) of the Compact, as amended,
and the agreement between the Government of the United States
and the Government of the Republic of the Marshall Islands
regarding military use and operating rights, a payment in
fiscal year 2004 of $15,000,000, with no adjustment for
inflation. In fiscal year 2005 and through fiscal year 2013,
the annual payment will be the fiscal year 2004 amount
($15,000,000) with an inflation adjustment as provided under
section 218. In fiscal year 2014, the annual payment will be
$18,000,000 (with no adjustment for inflation) or the fiscal
year 2013 amount with an inflation adjustment under section
218, whichever is greater. For fiscal year 2015 through
fiscal year 2023 (and thereafter in accordance with the
Agreement between the Government of the United States and the
Government of the Republic of the Marshall Islands Regarding
Military Use and Operating Rights) the annual payment will be
the fiscal year 2014 amount, with an inflation adjustment as
provided under section 218.
Section 213 - Accountability
(a) Regulations and policies normally applicable to United
States financial assistance to its state and local
governments, as set forth in the Fiscal Procedures Agreement,
shall apply to each grant described in section 211, and to
grants administered under section 221 below, except as
modified in the separate agreements referred to in section
231 of this Compact, as amended, or by U.S. law. As set forth
in the Fiscal Procedures Agreement, reasonable terms and
conditions, including annual performance indicators that are
necessary to ensure effective use of United States assistance
and reasonable progress toward achieving program objectives
may be attached. In addition, the United States may seek
appropriate remedies for noncompliance with the terms and
conditions attached to the assistance, or for failure to
comply with section 234, including withholding assistance.
(b) The Government of the United States shall, for each
fiscal year of the twenty years during which assistance is to
be provided on a sector grant basis under section 211 (a),
grant the Government of the Republic of the Marshall Islands
an amount equal to the lesser of (i) one half of the
reasonable, properly documented cost incurred during such
fiscal year to conduct the annual audit required under
Article VIII (2) of the Fiscal Procedures Agreement or (ii)
$500,000. Such amount will not be adjusted for inflation
under section 218 or otherwise.
Section 214 - Joint Economic Management and Financial
Accountability Committee
The Governments of the United States and the Republic of
the Marshall Islands shall establish a Joint Economic
Management and Financial Accountability Committee, composed
of a U.S. chair, two other members from the Government of the
United States and two members from the Government of the
Republic of the Marshall Islands. The Joint Economic
Management and Financial Accountability Committee shall meet
at least once each year to review the audits and reports
required under this Title and the Fiscal Procedures
Agreement, evaluate the progress made by the Republic of the
Marshall Islands in meeting the objectives identified in its
framework described in subsection (f) of section 211, with
particular focus on those parts of the framework dealing with
the sectors and areas identified in subsection (a) of section
211, identify problems encountered, and recommend ways to
increase the effectiveness of U.S. assistance made available
under this Title. The establishment and operations of the
Joint Economic Management and Financial Accountability
Committee shall be governed by the Fiscal Procedures
Agreement.
Section 215 - Annual Report
The Government of the Republic of the Marshall Islands
shall report annually to the President of the United States
on the use of United States sector grant assistance and other
assistance and progress in meeting mutually agreed program
and economic goals. The Joint Economic Management and
Financial Accountability Committee shall review and comment
on the report and make appropriate recommendations based
thereon.
Section 216 - Trust Fund
(a) The United States shall contribute annually for twenty
years from the effective date of the Compact, as amended, in
the amounts set forth in section 217 into a trust fund
established in accordance with the Agreement Between the
Government of the United States of America and the Government
of the Republic of the Marshall Islands Implementing Section
216 and Section 217 of the Compact, as Amended, Regarding a
Trust Fund (``Trust Fund Agreement''), which shall come into
effect simultaneously with this Compact, as amended. Upon
termination of the annual grant assistance under section 211
(a), (d) and (e), the earnings of the fund shall thereafter
be used for the purposes described in section 211 or as
otherwise mutually agreed.
(b) The United States contribution into the Trust Fund
described in subsection (a) of this section is conditioned on
the Government of the Republic of the Marshall Islands
contributing to the Trust Fund at least $25,000,000, on the
effective date of the Trust Fund Agreement or on October 1,
2003, whichever is later, $2,500,000 prior to October 1,
2004, and $2,500,000 prior to October 1, 2005. Any funds
received by the Republic of the Marshall Islands under
section 111(d) of Public Law 99-239 (January 14, 1986), or
successor provisions, would be contributed to the Trust Fund
as a Republic of the Marshall Islands' contribution.
(c) The terms regarding the investment and management of
funds and use of the income of the Trust Fund shall be
governed by the Trust Fund Agreement. Funds derived from
United States investment shall not be subject to Federal or
state taxes in the United States or any taxes in the Republic
of the Marshall Islands. The Trust Fund Agreement shall also
provide for annual reports to the Government of the United
States and to the Government of the Republic of the Marshall
Islands. The Trust Fund Agreement shall provide for
appropriate distributions of trust fund proceeds to the
Republic of the Marshall Islands and for appropriate remedies
for the failure of the Republic of the Marshall Islands to
use income of the Trust Fund for the annual grant purposes
set forth in section 211. These remedies may include the
return to the United States of the present market value of
its contributions to the Trust Fund and the present market
value of any undistributed income on the contributions of the
United States. If this Compact, as amended, is terminated,
the provisions of sections 451-453 of the Compact, as
amended, and the Trust Fund Agreement shall govern treatment
of any U.S. contributions to the Trust Fund or accrued income
thereon.
Section 217 - Annual Grant Funding and Trust Fund
Contributions
The funds described in sections 211, 212, 213(b), and 216
shall be made available as follows:
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Trust Fund Kwajalein
Fiscal year Annual Grants Audit Grant Section 216 Impact Section Total
Section 211 Section 213(b) (a&c) 212
----------------------------------------------------------------------------------------------------------------
2004............................... 35.2 .5 7 15.0 57.7
2005............................... 34.7 .5 7.5 15.0 57.7
2006............................... 34.2 .5 8 15.0 57.7
2007............................... 33.7 .5 8.5 15.0 57.7
2008............................... 33.2 .5 9 15.0 57.7
2009............................... 32.7 .5 9.5 15.0 57.7
2010............................... 32.2 .5 10 15.0 57.7
2011............................... 31.7 .5 10.5 15.0 57.7
2012............................... 31.2 .5 11 15.0 57.7
2013............................... 30.7 .5 11.5 15.0 57.7
2014............................... 32.2 .5 12 18.0 62.7
2015............................... 31.7 .5 12.5 18.0 62.7
[[Page H11749]]
2016............................... 31.2 .5 13 18.0 62.7
2017............................... 30.7 .5 13.5 18.0 62.7
2018............................... 30.2 .5 14 18.0 62.7
2019............................... 29.7 .5 14.5 18.0 62.7
2020............................... 29.2 .5 15 18.0 62.7
2021............................... 28.7 .5 15.5 18.0 62.7
2022............................... 28.2 .5 16 18.0 62.7
2023............................... 27.7 .5 16.5 18.0 62.7
----------------------------------------------------------------------------------------------------------------
Section 218 - Inflation Adjustment
Except as otherwise provided, the amounts stated in this
Title shall be adjusted for each United States Fiscal Year by
the percent that equals two-thirds of the percent change in
the United States Gross Domestic Product Implicit Price
Deflator, or 5 percent, whichever is less in any one year,
using the beginning of Fiscal Year 2004 as a base.
Section 219 - Carry-Over of Unused Funds
If in any year the funds made available by the Government
of the United States for that year pursuant to this Article
are not completely obligated by the Government of the
Republic of the Marshall Islands, the unobligated balances
shall remain available in addition to the funds to be
provided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) Services.--The Government of the United States shall
make available to the Republic of the Marshall Islands, in
accordance with and to the extent provided in the Federal
Programs and Services Agreement referred to in Section 231,
the services and related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
(3) the United States Federal Aviation Administration;
(4) the United States Department of Transportation; and
(5) the Department of Homeland Security, and the United
States Agency for International Development, Office of
Foreign Disaster Assistance.
Upon the effective date of this Compact, as amended, the
United States Departments and Agencies named or having
responsibility to provide these services and related programs
shall have the authority to implement the relevant provisions
of the Federal Programs and Services Agreement referred to in
section 231.
(b) Programs.--
(1) Other than the services and programs covered by
subsection (a) of this section, and to the extent authorized
by the Congress of the United States, the Government of the
United States shall make available to the Republic of the
Marshall Islands the services and programs that were
available to the Republic of the Marshall Islands on the
effective date of this Compact, as amended, to the extent
that such services and programs continue to be available to
State and local governments of the United States. As set
forth in the Fiscal Procedures Agreement, funds provided
under subsection (a) of section 211 shall be considered to be
local revenues of the Government of the Republic of the
Marshall Islands when used as the local share required to
obtain Federal programs and services.
(2) Unless provided otherwise by U.S. law, the services and
programs described in paragraph (1) of this subsection shall
be extended in accordance with the terms of the Federal
Programs and Services Agreement.
(c) The Government of the United States shall have and
exercise such authority as is necessary to carry out its
responsibilities under this Title and the Federal Programs
and Services Agreement, including the authority to monitor
and administer all service and program assistance provided by
the United States to the Republic of the Marshall Islands.
The Federal Programs and Services Agreement shall also set
forth the extent to which services and programs shall be
provided to the Republic of the Marshall Islands.
(d) Except as provided elsewhere in this Compact, as
amended, under any separate agreement entered into under this
Compact, as amended, or otherwise under U.S. law, all Federal
domestic programs extended to or operating in the Republic of
the Marshall Islands shall be subject to all applicable
criteria, standards, reporting requirements, auditing
procedures, and other rules and regulations applicable to
such programs and services when operating in the United
States.
(e) The Government of the United States shall make
available to the Republic of the Marshall Islands alternate
energy development projects, studies, and conservation
measures to the extent provided for the Freely Associated
States in the laws of the United States.
Section 222
The Government of the United States and the Government of
the Republic of the Marshall Islands may agree from time to
time to extend to the Republic of the Marshall Islands
additional United States grant assistance, services and
programs, as provided under the laws of the United States.
Unless inconsistent with such laws, or otherwise specifically
precluded by the Government of the United States at the time
such additional grant assistance, services, or programs are
extended, the Federal Programs and Services Agreement shall
apply to any such assistance, services or programs.
Section 223
The Government of the Republic of the Marshall Islands
shall make available to the Government of the United States
at no cost such land as may be necessary for the operations
of the services and programs provided pursuant to this
Article, and such facilities as are provided by the
Government of the Republic of the Marshall Islands at no cost
to the Government of the United States as of the effective
date of this Compact, as amended, or as may be mutually
agreed thereafter.
Section 224
The Government of the Republic of the Marshall Islands may
request, from the time to time, technical assistance from the
Federal agencies and institutions of the Government of the
United States, which are authorized to grant such technical
assistance in accordance with its laws. If technical
assistance is granted pursuant to such a request, the
Government of the United States shall provide the technical
assistance in a manner which gives priority consideration to
the Republic of the Marshall Islands over other recipients
not a part of the United States, its territories or
possessions, and equivalent consideration to the Republic of
the Marshall Islands with respect to other states in Free
Association with the United States. Such assistance shall be
made available on a reimbursable or non-reimbursable basis to
the extent provided by United States law.
Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrangements of
the services and programs provided for in section 221 of this
Compact, as amended, as well as the legal status of agencies
of the Government of the United States, their civilian
employees and contractors, and the dependents of such
personnel while present in the Republic of the Marshall
Islands, and other arrangements in connection with the
assistance, services, or programs furnished by the Government
of the United States, are set forth in a Federal Programs and
Services Agreement which shall come into effect
simultaneously with this Compact, as amended.
Section 232
The Government of the United States, in consultation with
the Government of the Republic of the Marshall Islands, shall
determine and implement procedures for the periodic audit of
all grants and other assistance made under Article I of this
Title and of all funds expended for the services and programs
provided under Article II of this Title. Further, in
accordance with the Fiscal Procedures Agreement described in
subsection (a) of section 211, the Comptroller General of the
United States shall have such powers and authorities as
described in sections 103(m) and 110(c) of Public Law 99-239,
99 Stat. 1777-78, and 99 Stat. 1799 (January 14, 1986).
Section 233
Approval of this Compact, as amended, by the Government of
the United States, in accordance with its constitutional
processes, shall constitute a pledge by the United States
that the sums and amounts specified as grants in section 211
of this Compact, as amended, shall be appropriated and paid
to the Republic of the Marshall Islands for such period as
those provisions of this Compact, as amended, remain in
force, provided that the Republic of the Marshall Islands
complies with the terms and conditions of this Title and
related subsidiary agreements.
Section 234
The Government of the Republic of the Marshall Islands
pledges to cooperate with, permit, and assist if reasonably
requested, designated and authorized representatives of the
Government of the United States charged with investigating
whether Compact funds, or any other assistance authorized
under this Compact, as amended, have, or are being, used for
purposes other than those set forth in this Compact, as
amended, or its subsidiary agreements. In carrying out this
investigative authority, such United States Government
representatives may request that the Government of the
Republic of the Marshall Islands subpoena documents and
records and compel testimony in accordance with the laws and
Constitution of the Republic of the Marshall Islands. Such
assistance by the Government of the Republic of the Marshall
Islands to the Government of the United States shall not be
unreasonably withheld. The obligation of the Government of
the Marshall Islands to fulfill its pledge herein is a
condition to its receiving payment of such funds or other
assistance authorized under this Compact, as amended. The
Government of the United States shall pay any reasonable
costs for extraordinary services executed by the Government
of the Marshall Islands in carrying out the provisions of
this section.
[[Page H11750]]
Article IV
Trade
Section 241
The Republic of the Marshall Islands is not included in the
customs territory of the United States.
Section 242
The President shall proclaim the following tariff treatment
for articles imported from the Republic of the Marshall
Islands which shall apply during the period of effectiveness
of this title:
(a) Unless otherwise excluded, articles imported from the
Republic of the Marshall Islands, subject to the limitations
imposed under section 503(b) of title V of the Trade Act of
1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
(b) Only tuna in airtight containers provided for in
heading 1604.14.22 of the Harmonized Tariff Schedule of the
United States that is imported from the Republic of the
Marshall Islands and the Federated States of Micronesia
during any calendar year not to exceed 10 percent of apparent
United States consumption of tuna in airtight containers
during the immediately preceding calendar year, as reported
by the National Marine Fisheries Service, shall be exempt
from duty; but the quantity of tuna given duty-free treatment
under this paragraph for any calendar year shall be counted
against the aggregated quantity of tuna in airtight
containers that is dutiable under rate column numbered 1 of
such heading 1604.14.22 for that calendar year.
(c) The duty-free treatment provided under subsection (a)
shall not apply to:
(1) watches, clocks, and timing apparatus provided for in
Chapter 91, excluding heading 9113, of the Harmonized Tariff
Schedule of the United States;
(2) buttons (whether finished or not finished) provided for
in items 9606.21.40 and 9606.29.20 of such Schedule;
(3) textile and apparel articles which are subject to
textile agreements; and
(4) footwear, handbags, luggage, flat goods, work gloves,
and leather wearing apparel which were not eligible articles
for purposes of title V of the Trade Act of 1974 (19 U.S.C.
2461, et seq.) on April 1, 1984.
(d) If the cost or value of materials produced in the
customs territory of the United States is included with
respect to an eligible article which is a product of the
Republic of the Marshall Islands, an amount not to exceed 15
percent of the appraised value of the article at the time it
is entered that is attributable to such United States cost or
value may be applied for duty assessment purposes toward
determining the percentage referred to in section 503(a)(2)
of title V of the Trade Act of 1974.
Section 243
Articles imported from the Republic of the Marshall Islands
which are not exempt from duty under subsections (a), (b),
(c), and (d) of section 242 shall be subject to the rates of
duty set forth in column numbered 1-general of the Harmonized
Tariff Schedule of the United States (HTSUS).
Section 244
(a) All products of the United States imported into the
Republic of the Marshall Islands shall receive treatment no
less favorable than that accorded like products of any
foreign country with respect to customs duties or charges of
a similar nature and with respect to laws and regulations
relating to importation, exportation, taxation, sale,
distribution, storage or use.
(b) The provisions of subsection (a) shall not apply to
advantages accorded by the Republic of the Marshall Islands
by virtue of their full membership in the Pacific Island
Countries Trade Agreement (PICTA), done on August 18, 2001,
to those governments listed in Article 26 of PICTA, as of the
date the Compact, as amended, is signed.
(c) Prior to entering into consultations on, or concluding,
a free trade agreement with governments not listed in Article
26 of PICTA, the Republic of the Marshall Islands shall
consult with the United States regarding whether or how
subsection (a) of section 244 shall be applied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official
circulating legal tender of the Republic of the Marshall
Islands. Should the Government of the Republic of the
Marshall Islands act to institute another currency, the terms
of an appropriate currency transitional period shall be as
agreed with the Government of the United States.
Section 252
The Government of the Republic of the Marshall Islands may,
with respect to United States persons, tax income derived
from sources within its respective jurisdiction, property
situated therein, including transfers of such property by
gift or at death, and products consumed therein, in such
manner as the Government of the Republic of the Marshall
Islands deems appropriate. The determination of the source of
any income, or the situs of any property, shall for purposes
of this Compact, as amended, be made according to the United
States Internal Revenue Code.
Section 253
A citizen of the Republic of the Marshall Islands,
domiciled therein, shall be exempt from estate, gift, and
generation-skipping transfer taxes imposed by the Government
of the United States, provided that such citizen of the
Republic of the Marshall Islands is neither a citizen nor a
resident of the United States.
Section 254
(a) In determining any income tax imposed by the Government
of the Republic of the Marshall Islands, the Government of
the Republic of the Marshall Islands shall have authority to
impose tax upon income derived by a resident of the Republic
of the Marshall Islands from sources without the Republic of
the Marshall Islands, in the same manner and to the same
extent as the Government of the Republic of the Marshall
Islands imposes tax upon income derived from within its own
jurisdiction. If the Government of the Republic of the
Marshall Islands exercises such authority as provided in this
subsection, any individual resident of the Republic of the
Marshall Islands who is subject to tax by the Government of
the United States on income which is also taxed by the
Government of the Republic of the Marshall Islands shall be
relieved of liability to the Government of the United States
for the tax which, but for this subsection, would otherwise
be imposed by the Government of the United States on such
income. However, the relief from liability to the United
States Government referred to in the preceding sentence means
only relief in the form of the foreign tax credit (or
deduction in lieu thereof) available with respect to the
income taxes of a possession of the United States, and relief
in the form of the exclusion under section 911 of the
Internal Revenue Code of 1986. For purposes of this section,
the term ``resident of the Republic of the Marshall Islands''
shall be deemed to include any person who was physically
present in the Republic of the Marshall Islands for a period
of 183 or more days during any taxable year.
(b) If the Government of the Republic of the Marshall
Islands subjects income to taxation substantially similar to
that which was imposed by the Trust Territory Code in effect
on January 1, 1980, such Government shall be deemed to have
exercised the authority described in section 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the U.S. Internal
Revenue Code of 1986, the term ``North American Area'' shall
include the Republic of the Marshall Islands.
TITLE THREE
SECURITY AND DEFENSE RELATIONS
Article I
Authority and Responsibility
Section 311
(a) The Government of the United States has full authority
and responsibility for security and defense matters in or
relating to the Republic of the Marshall Islands.
(b) This authority and responsibility includes:
(1) the obligation to defend the Republic of the Marshall
Islands and its people from attack or threats thereof as the
United States and its citizens are defended;
(2) the option to foreclose access to or use of the
Republic of the Marshall Islands by military personnel or for
the military purposes of any third country; and
(3) the option to establish and use military areas and
facilities in the Republic of the Marshall Islands, subject
to the terms of the separate agreements referred to in
sections 321 and 323.
(c) The Government of the United States confirms that it
shall act in accordance with the principles of international
law and the Charter of the United Nations in the exercise of
this authority and responsibility.
Section 312
Subject to the terms of any agreements negotiated in
accordance with sections 321 and 323, the Government of the
United States may conduct within the lands, waters and
airspace of the Republic of the Marshall Islands the
activities and operations necessary for the exercise of its
authority and responsibility under this Title.
Section 313
(a) The Government of the Republic of the Marshall Islands
shall refrain from actions that the Government of the United
States determines, after appropriate consultation with that
Government, to be incompatible with its authority and
responsibility for security and defense matters in or
relating to the Republic of the Marshall Islands.
(b) The consultations referred to in this section shall be
conducted expeditiously at senior levels of the two
Governments, and the subsequent determination by the
Government of the United States referred to in this section
shall be made only at senior interagency levels of the
Government of the United States.
(c) The Government of the Republic of the Marshall Islands
shall be afforded, on an expeditious basis, an opportunity to
raise its concerns with the United States Secretary of State
personally and the United States Secretary of Defense
personally regarding any determination made in accordance
with this section.
Section 314
(a) Unless otherwise agreed, the Government of the United
States shall not, in the Republic of the Marshall Islands:
(1) test by detonation or dispose of any nuclear weapon,
nor test, dispose of, or discharge any toxic chemical or
biological weapon; or
(2) test, dispose of, or discharge any other radioactive,
toxic chemical or biological materials in an amount or manner
that would be hazardous to public health or safety.
(b) Unless otherwise agreed, other than for transit or
overflight purposes or during time of a national emergency
declared by the President of the United States, a state of
war declared by the Congress of the United States or as
necessary to defend against an actual or impending armed
attack on the United States, the Republic of the Marshall
Islands or the Federated States of Micronesia, the Government
of the United States shall not store in the Republic of the
Marshall Islands or the Federated States of Micronesia any
toxic chemical weapon, nor any radioactive materials nor any
toxic chemical materials intended for weapons use.
(c) Radioactive, toxic chemical, or biological materials
not intended for weapons use shall not be affected by section
314(b).
[[Page H11751]]
(d) No material or substance referred to in this section
shall be stored in the Republic of the Marshall Islands
except in an amount and manner which would not be hazardous
to public health or safety. In determining what shall be an
amount or manner which would be hazardous to public health or
safety under this section, the Government of the United
States shall comply with any applicable mutual agreement,
international guidelines accepted by the Government of the
United States, and the laws of the United States and their
implementing regulations.
(e) Any exercise of the exemption authority set forth in
section 161(e) shall have no effect on the obligations of the
Government of the United States under this section or on the
application of this subsection.
(f) The provisions of this section shall apply in the areas
in which the Government of the Republic of the Marshall
Islands exercises jurisdiction over the living resources of
the seabed, subsoil or water column adjacent to its coasts.
Section 315
The Government of the United States may invite members of
the armed forces of other countries to use military areas and
facilities in the Republic of the Marshall Islands, in
conjunction with and under the control of United States Armed
Forces. Use by units of the armed forces of other countries
of such military areas and facilities, other than for transit
and overflight purposes, shall be subject to consultation
with and, in the case of major units, approval of the
Government of the Republic of the Marshall Islands.
Section 316
The authority and responsibility of the Government of the
United States under this Title may not be transferred or
otherwise assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by
the Government of the United States of military areas and
facilities in the Republic of the Marshall Islands are set
forth in separate agreements, which shall remain in effect in
accordance with the terms of such agreements.
(b) If, in the exercise of its authority and responsibility
under this Title, the Government of the United States
requires the use of areas within the Republic of the Marshall
Islands in addition to those for which specific arrangements
are concluded pursuant to section 321(a), it may request the
Government of the Republic of the Marshall Islands to satisfy
those requirements through leases or other arrangements. The
Government of the Republic of the Marshall Islands shall
sympathetically consider any such request and shall establish
suitable procedures to discuss it with and provide a prompt
response to the Government of the United States.
(c) The Government of the United States recognizes and
respects the scarcity and special importance of land in the
Republic of the Marshall Islands. In making any requests
pursuant to section 321(b), the Government of the United
States shall follow the policy of requesting the minimum area
necessary to accomplish the required security and defense
purpose, of requesting only the minimum interest in real
property necessary to support such purpose, and of requesting
first to satisfy its requirement through public real
property, where available, rather than through private real
property.
Section 322
The Government of the United States shall provide and
maintain fixed and floating aids to navigation in the
Republic of the Marshall Islands at least to the extent
necessary for the exercise of its authority and
responsibility under this Title.
Section 323
The military operating rights of the Government of the
United States and the legal status and contractual
arrangements of the United States Armed Forces, their
members, and associated civilians, while present in the
Republic of the Marshall Islands are set forth in separate
agreements, which shall remain in effect in accordance with
the terms of such agreements.
Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended, and its
related agreements, the Government of the United States,
exclusively, has assumed and enjoys, as to the Republic of
the Marshall Islands, all obligations, responsibilities,
rights and benefits of:
(a) Any defense treaty or other international security
agreement applied by the Government of the United States as
Administering Authority of the Trust Territory of the Pacific
Islands as of October 20, 1986.
(b) Any defense treaty or other international security
agreement to which the Government of the United States is or
may become a party which it determines to be applicable in
the Republic of the Marshall Islands. Such a determination by
the Government of the United States shall be preceded by
appropriate consultation with the Government of the Republic
of the Marshall Islands.
Article IV
Service in Armed Forces of the United States
Section 341
Any person entitled to the privileges set forth in Section
141 (with the exception of any person described in section
141(a)(5) who is not a citizen of the Republic of the
Marshall Islands) shall be eligible to volunteer for service
in the Armed Forces of the United States, but shall not be
subject to involuntary induction into military service of the
United States as long as such person has resided in the
United States for a period of less than one year, provided
that no time shall count towards this one year while a person
admitted to the United States under the Compact, or the
Compact, as amended, is engaged in full-time study in the
United States. Any person described in section 141(a)(5) who
is not a citizen of the Republic of the Marshall Islands
shall be subject to United States laws relating to selective
service.
Section 342
The Government of the United States shall have enrolled, at
any one time, at least one qualified student from the
Republic of the Marshall Islands, as may be nominated by the
Government of the Republic of the Marshall Islands, in each
of:
(a) The United States Coast Guard Academy pursuant to 14
U.S.C. 195.
(b) The United States Merchant Marine Academy pursuant to
46 U.S.C. 1295(b)(6), provided that the provisions of 46
U.S.C. 1295b(b)(6)(C) shall not apply to the enrollment of
students pursuant to section 342(b) of this Compact, as
amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands shall continue to
maintain a Joint Committee empowered to consider disputes
arising under the implementation of this Title and its
related agreements.
(b) The membership of the Joint Committee shall comprise
selected senior officials of the two Governments. The senior
United States military commander in the Pacific area shall be
the senior United States member of the Joint Committee. For
the meetings of the Joint Committee, each of the two
Governments may designate additional or alternate
representatives as appropriate for the subject matter under
consideration.
(c) Unless otherwise mutually agreed, the Joint Committee
shall meet annually at a time and place to be designated,
after appropriate consultation, by the Government of the
United States. The Joint Committee also shall meet promptly
upon request of either of its members. The Joint Committee
shall follow such procedures, including the establishment of
functional subcommittees, as the members may from time to
time agree. Upon notification by the Government of the United
States, the Joint Committee of the United States and the
Republic of the Marshall Islands shall meet promptly in a
combined session with the Joint Committee established and
maintained by the Government of the United States and the
Government of the Federated States of Micronesia to consider
matters within the jurisdiction of the two Joint Committees.
(d) Unresolved issues in the Joint Committee shall be
referred to the Governments for resolution, and the
Government of the Republic of the Marshall Islands shall be
afforded, on an expeditious basis, an opportunity to raise
its concerns with the United States Secretary of Defense
personally regarding any unresolved issue which threatens its
continued association with the Government of the United
States.
Section 352
In the exercise of its authority and responsibility under
Title Three, the Government of the United States shall accord
due respect to the authority and responsibility of the
Government of the Republic of the Marshall Islands under
Titles One, Two and Four and to the responsibility of the
Government of the Republic of the Marshall Islands to assure
the well-being of its people.
Section 353
(a) The Government of the United States shall not include
the Government of the Republic of the Marshall Islands as a
named party to a formal declaration of war, without that
Government's consent.
(b) Absent such consent, this Compact, as amended, is
without prejudice, on the ground of belligerence or the
existence of a state of war, to any claims for damages which
are advanced by the citizens, nationals or Government of the
Republic of the Marshall Islands, which arise out of armed
conflict subsequent to October 21, 1986, and which are:
(1) petitions to the Government of the United States for
redress; or
(2) claims in any manner against the government, citizens,
nationals or entities of any third country.
(c) Petitions under section 353(b)(1) shall be treated as
if they were made by citizens of the United States.
Section 354
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands are jointly committed
to continue their security and defense relations, as set
forth in this Title. Accordingly, it is the intention of the
two countries that the provisions of this Title shall remain
binding as long as this Compact, as amended, remains in
effect, and thereafter as mutually agreed, unless earlier
terminated by mutual agreement pursuant to section 441, or
amended pursuant to Article III of Title Four. If at any time
the Government of the United States, or the Government of the
Republic of the Marshall Islands, acting unilaterally,
terminates this Title, such unilateral termination shall be
considered to be termination of the entire Compact, as
amended, in which case the provisions of section 442 and 452
(in the case of termination by the Government of the United
States) or sections 443 and 453 (in the case of termination
by the Government of the Republic of the Marshall Islands),
with the exception of paragraph (3) of subsection (a) of
section 452 or paragraph (3) of subsection (a) of section
453, as the case may be, shall apply.
(b) The Government of the United States recognizes, in view
of the special relationship between the Government of the
United States and
[[Page H11752]]
the Government of the Republic of the Marshall Islands, and
in view of the existence of the separate agreement regarding
mutual security concluded with the Government of the Republic
of the Marshall Islands pursuant to sections 321 and 323,
that, even if this Title should terminate, any attack on the
Republic of the Marshall Islands during the period in which
such separate agreement is in effect, would constitute a
threat to the peace and security of the entire region and a
danger to the United States. In the event of such an attack,
the Government of the United States would take action to meet
the danger to the United States and to the Republic of the
Marshall Islands in accordance with its constitutional
processes.
(c) As reflected in Article 21(1)(b) of the Trust Fund
Agreement, the Government of the United States and the
Government of the Republic of the Marshall Islands further
recognize, in view of the special relationship between their
countries, that even if this Title should terminate, the
Government of Republic of the Marshall Islands shall refrain
from actions which the Government of the United States
determines, after appropriate consultation with that
Government, to be incompatible with its authority and
responsibility for security and defense matters in or
relating to the Republic of the Marshall Islands or the
Federated States of Micronesia.
TITLE FOUR
GENERAL PROVISIONS
Article I
Approval and Effective Date
Section 411
Pursuant to section 432 of the Compact and subject to
subsection (e) of section 461 of the Compact, as amended, the
Compact, as amended, shall come into effect upon mutual
agreement between the Government of the United States and the
Government of the Republic of the Marshall Islands subsequent
to completion of the following:
(a) Approval by the Government of the Republic of the
Marshall Islands in accordance with its constitutional
processes.
(b) Approval by the Government of the United States in
accordance with its constitutional processes.
Article II
Conference and Dispute Resolution
Section 421
The Government of the United States shall confer promptly
at the request of the Government of the Republic of the
Marshall Islands and that Government shall confer promptly at
the request of the Government of the United States on matters
relating to the provisions of this Compact, as amended, or of
its related agreements.
Section 422
In the event the Government of the United States or the
Government of the Republic of the Marshall Islands, after
conferring pursuant to section 421, determines that there is
a dispute and gives written notice thereof, the two
Governments shall make a good faith effort to resolve the
dispute between themselves.
Section 423
If a dispute between the Government of the United States
and the Government of the Republic of the Marshall Islands
cannot be resolved within 90 days of written notification in
the manner provided in section 422, either party to the
dispute may refer it to arbitration in accordance with
section 424.
Section 424
Should a dispute be referred to arbitration as provided for
in section 423, an Arbitration Board shall be established for
the purpose of hearing the dispute and rendering a decision
which shall be binding upon the two parties to the dispute
unless the two parties mutually agree that the decision shall
be advisory. Arbitration shall occur according to the
following terms:
(a) An Arbitration Board shall consist of a Chairman and
two other members, each of whom shall be a citizen of a party
to the dispute. Each of the two Governments that is a party
to the dispute shall appoint one member to the Arbitration
Board. If either party to the dispute does not fulfill the
appointment requirements of this section within 30 days of
referral of the dispute to arbitration pursuant to section
423, its member on the Arbitration Board shall be selected
from its own standing list by the other party to the dispute.
Each Government shall maintain a standing list of 10
candidates. The parties to the dispute shall jointly appoint
a Chairman within 15 days after selection of the other
members of the Arbitration Board. Failing agreement on a
Chairman, the Chairman shall be chosen by lot from the
standing lists of the parties to the dispute within 5 days
after such failure.
(b) Unless otherwise provided in this Compact, as amended,
or its related agreements, the Arbitration Board shall have
jurisdiction to hear and render its final determination on
all disputes arising exclusively under Articles I, II, III,
IV and V of Title One, Title Two, Title Four, and their
related agreements.
(c) Each member of the Arbitration Board shall have one
vote. Each decision of the Arbitration Board shall be reached
by majority vote.
(d) In determining any legal issue, the Arbitration Board
may have reference to international law and, in such
reference, shall apply as guidelines the provisions set forth
in Article 38 of the Statute of the International Court of
Justice.
(e) The Arbitration Board shall adopt such rules for its
proceedings as it may deem appropriate and necessary, but
such rules shall not contravene the provisions of this
Compact, as amended. Unless the parties provide otherwise by
mutual agreement, the Arbitration Board shall endeavor to
render its decision within 30 days after the conclusion of
arguments. The Arbitration Board shall make findings of fact
and conclusions of law and its members may issue dissenting
or individual opinions. Except as may be otherwise decided by
the Arbitration Board, one-half of all costs of the
arbitration shall be borne by the Government of the United
States and the remainder shall be borne by the Government of
the Republic of the Marshall Islands.
Article III
Amendment
Section 431
The provisions of this Compact, as amended, may be further
amended by mutual agreement of the Government of the United
States and the Government of the Republic of the Marshall
Islands, in accordance with their respective constitutional
processes.
Article IV
Termination
Section 441
This Compact, as amended, may be terminated by mutual
agreement of the Government of the Republic of the Marshall
Islands and the Government of the United States, in
accordance with their respective constitutional processes.
Such mutual termination of this Compact, as amended, shall be
without prejudice to the continued application of section 451
of this Compact, as amended, and the provisions of the
Compact, as amended, set forth therein.
Section 442
Subject to section 452, this Compact, as amended, may be
terminated by the Government of the United States in
accordance with its constitutional processes. Such
termination shall be effective on the date specified in the
notice of termination by the Government of the United States
but not earlier than six months following delivery of such
notice. The time specified in the notice of termination may
be extended. Such termination of this Compact, as amended,
shall be without prejudice to the continued application of
section 452 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
Section 443
This Compact, as amended, shall be terminated by the
Government of the Republic of the Marshall Islands, pursuant
to its constitutional processes, subject to section 453 if
the people represented by that Government vote in a
plebiscite to terminate the Compact. The Government of the
Republic of the Marshall Islands shall notify the Government
of the United States of its intention to call such a
plebiscite, which shall take place not earlier than three
months after delivery of such notice. The plebiscite shall be
administered by the Government of the Republic of the
Marshall Islands in accordance with its constitutional and
legislative processes, but the Government of the United
States may send its own observers and invite observers from a
mutually agreed party. If a majority of the valid ballots
cast in the plebiscite favors termination, the Government of
the Republic of the Marshall Islands shall, upon
certification of the results of the plebiscite, give notice
of termination to the Government of the United States, such
termination to be effective on the date specified in such
notice but not earlier than three months following the date
of delivery of such notice. The time specified in the notice
of termination may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441,
economic and other assistance by the Government of the United
States shall continue only if and as mutually agreed by the
Governments of the United States and the Republic of the
Marshall Islands, and in accordance with the countries'
respective constitutional processes.
(b) In view of the special relationship of the United
States and the Republic of the Marshall Islands, as reflected
in subsections (b) and (c) of section 354 of this Compact, as
amended, and the separate agreement entered into consistent
with those subsections, if termination occurs pursuant to
section 441 prior to the twentieth anniversary of the
effective date of this Compact, as amended, the United States
shall continue to make contributions to the Trust Fund
described in section 216 of this Compact, as amended.
(c) In view of the special relationship of the United
States and the Republic of the Marshall Islands described in
subsection (b) of this section, if termination occurs
pursuant to section 441 following the twentieth anniversary
of the effective date of this Compact, as amended, the
Republic of the Marshall Islands shall be entitled to receive
proceeds from the Trust Fund described in section 216 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 452
(a) Should termination occur pursuant to section 442 prior
to the twentieth anniversary of the effective date of this
Compact, as amended, the following provisions of this amended
Compact shall remain in full force and effect until the
twentieth anniversary of the effective date of this Compact,
as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Article One and sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Should termination occur pursuant to section 442 before
the twentieth anniversary of the effective date of this
Compact, as amended:
(1) Except as provided in paragraph (2) of this subsection
and subsection (c) of this section, economic and other
assistance by the United States shall continue only if and as
mutually
[[Page H11753]]
agreed by the Governments of the United States and the
Republic of the Marshall Islands.
(2) In view of the special relationship of the United
States and the Republic of the Marshall Islands, as reflected
in subsections (b) and (c) of section 354 of this Compact, as
amended, and the separate agreement regarding mutual
security, and the Trust Fund Agreement, the United States
shall continue to make contributions to the Trust Fund
described in section 216 of this Compact, as amended, in the
manner described in the Trust Fund Agreement.
(c) In view of the special relationship of the United
States and the Republic of the Marshall Islands, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and the
Trust Fund Agreement, if termination occurs pursuant to
section 442 following the twentieth anniversary of the
effective date of this Compact, as amended, the Republic of
the Marshall Islands shall continue to be eligible to receive
proceeds from the Trust Fund described in section 216 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 453
(a) Should termination occur pursuant to section 443 prior
to the twentieth anniversary of the effective date of this
Compact, as amended, the following provisions of this
Compact, as amended, shall remain in full force and effect
until the twentieth anniversary of the effective date of this
Compact, as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Upon receipt of notice of termination pursuant to
section 443, the Government of the United States and the
Government of the Republic of the Marshall Islands shall
promptly consult with regard to their future relationship.
Except as provided in subsections (c) and (d) of this
section, these consultations shall determine the level of
economic and other assistance, if any, which the Government
of the United States shall provide to the Government of the
Republic of the Marshall Islands for the period ending on the
twentieth anniversary of the effective date of this Compact,
as amended, and for any period thereafter, if mutually
agreed.
(c) In view of the special relationship of the United
States and the Republic of the Marshall Islands, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and the
Trust Fund Agreement, if termination occurs pursuant to
section 443 prior to the twentieth anniversary of the
effective date of this Compact, as amended, the United States
shall continue to make contributions to the Trust Fund
described in section 216 of this Compact, as amended.
(d) In view of the special relationship of the United
States and the Republic of the Marshall Islands, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and the
Trust Fund Agreement, if termination occurs pursuant to
section 443 following the twentieth anniversary of the
effective date of this Compact, as amended, the Republic of
the Marshall Islands shall continue to be eligible to receive
proceeds from the Trust Fund described in section 216 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact, as
amended:
(a) The Government of the United States reaffirms its
continuing interest in promoting the economic advancement and
budgetary self-reliance of the people of the Republic of the
Marshall Islands.
(b) The separate agreements referred to in Article II of
Title Three shall remain in effect in accordance with their
terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only, and
without prejudice to the views of the Government of the
United States or the Government of the Republic of the
Marshall Islands as to the nature and extent of the
jurisdiction of either of them under international law, the
following terms shall have the following meanings:
(a) ``Trust Territory of the Pacific Islands'' means the
area established in the Trusteeship Agreement consisting of
the former administrative districts of Kosrae, Yap, Ponape,
the Marshall Islands and Truk as described in Title One,
Trust Territory Code, section 1, in force on January 1, 1979.
This term does not include the area of Palau or the Northern
Mariana Islands.
(b) ``Trusteeship Agreement'' means the agreement setting
forth the terms of trusteeship for the Trust Territory of the
Pacific Islands, approved by the Security Council of the
United Nations April 2, 1947, and by the United States July
18, 1947, entered into force July 18, 1947, 61 Stat. 3301,
T.I.A.S. 1665, 8 U.N.T.S. 189.
(c) ``The Republic of the Marshall Islands'' and ``the
Federated States of Micronesia'' are used in a geographic
sense and include the land and water areas to the outer
limits of the territorial sea and the air space above such
areas as now or hereafter recognized by the Government of the
United States.
(d) ``Compact'' means the Compact of Free Association
Between the United States and the Federated States of
Micronesia and the Marshall Islands, that was approved by the
United States Congress in section 201 of Public Law 99-239
(Jan. 14, 1986) and went into effect with respect to the
Republic of the Marshall Islands on October 21, 1986.
(e) ``Compact, as amended'' means the Compact of Free
Association Between the United States and the Republic of the
Marshall Islands, as amended. The effective date of the
Compact, as amended, shall be on a date to be determined by
the President of the United States, and agreed to by the
Government of the Republic of the Marshall Islands, following
formal approval of the Compact, as amended, in accordance
with section 411 of this Compact, as amended.
(f) ``Government of the Republic of the Marshall Islands''
means the Government established and organized by the
Constitution of the Republic of the Marshall Islands
including all the political subdivisions and entities
comprising that Government.
(g) ``Government of the Federated States of Micronesia''
means the Government established and organized by the
Constitution of the Federated States of Micronesia including
all the political subdivisions and entities comprising that
Government.
(h) The following terms shall be defined consistent with
the 1978 Edition of the Radio Regulations of the
International Telecommunications as follows:
(1) ``Radiocommunication'' means telecommunication by means
of radio waves.
(2) ``Station'' means one or more transmitters or receivers
or a combination of transmitters and receivers, including the
accessory equipment, necessary at one location for carrying
on a radiocommunication service, or the radio astronomy
service.
(3) ``Broadcasting Service'' means a radiocommunication
service in which the transmissions are intended for direct
reception by the general public. This service may include
sound transmissions, television transmissions or other types
of transmission.
(4) ``Broadcasting Station'' means a station in the
broadcasting service.
(5) ``Assignment (of a radio frequency or radio frequency
channel)'' means an authorization given by an administration
for a radio station to use a radio frequency or radio
frequency channel under specified conditions.
(6) ``Telecommunication'' means any transmission, emission
or reception of signs, signals, writings, images and sounds
or intelligence of any nature by wire, radio, optical or
other electromagnetic systems.
(i) ``Military Areas and Facilities'' means those areas and
facilities in the Republic of the Marshall Islands reserved
or acquired by the Government of the Republic of the Marshall
Islands for use by the Government of the United States, as
set forth in the separate agreements referred to in section
321.
(j) ``Tariff Schedules of the United States'' means the
Tariff Schedules of the United States as amended from time to
time and as promulgated pursuant to United States law and
includes the Tariff Schedules of the United States Annotated
(TSUSA), as amended.
(k) ``Vienna Convention on Diplomatic Relations'' means the
Vienna Convention on Diplomatic Relations, done April 18,
1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands previously have
concluded agreements, which shall remain in effect and shall
survive in accordance with their terms, as follows:
(1) Agreement Between the Government of the United States
and the Government of the Marshall Islands for the
Implementation of Section 177 of the Compact of Free
Association;
(2) Agreement Between the Government of the United States
and the Government of the Marshall Islands by Persons
Displaced as a Result of the United States Nuclear Testing
Program in the Marshall Islands;
(3) Agreement Between the Government of the United States
and the Government of the Marshall Islands Regarding the
Resettlement of Enjebi Island;
(4) Agreement Concluded Pursuant to Section 234 of the
Compact; and
(5) Agreement Between the Government of the United States
and the Government of the Marshall Islands Regarding Mutual
Security Concluded Pursuant to Sections 321 and 323 of the
Compact of Free Association.
(b) The Government of the United States and the Government
of the Republic of the Marshall Islands shall conclude prior
to the date of submission of this Compact to the legislatures
of the two countries, the following related agreements which
shall come into effect on the effective date of this Compact,
as amended, and shall survive in accordance with their terms,
as follows:
(1) Federal Programs and Services Agreement Between the
Government of the United States of America and the Government
of the Republic of the Marshall Islands Concluded Pursuant to
Article III of Title One, Article II of Title Two (including
Section 222), and Section 231 of the Compact of Free
Association, as Amended, which include:
(i) Postal Services and Related Programs;
(ii) Weather Services and Related Programs;
(iii) Civil Aviation Safety Service and Related Programs;
(iv) Civil Aviation Economic Services and Related Programs;
(v) United States Disaster Preparedness and Response
Services and Related Programs; and
(vi) Telecommunications Services and Related Programs.
(2) Agreement Between the Government of the United States
of America and the Government of the Republic of the Marshall
Islands on Extradition, Mutual Assistance in Law Enforcement
Matters and Penal Sanctions Concluded Pursuant to Section 175
(a) of the Compact of Free Association, as Amended;
(3) Agreement Between the Government of the United States
of America and the Government of the Republic of the Marshall
Islands on Labor
[[Page H11754]]
Recruitment Concluded Pursuant to Section 175 (b) of the
Compact of Free Association, as Amended;
(4) Agreement Concerning Procedures for the Implementation
of United States Economic Assistance Provided in the Compact,
as Amended, of Free Association Between the Government of the
United States of America and the Government of the Republic
of the Marshall Islands;
(5) Agreement Between the Government of the United States
of America and the Government of the Republic of the Marshall
Islands Implementing Section 216 and Section 217 of the
Compact, as Amended, Regarding a Trust Fund;
(6) Agreement Regarding the Military Use and Operating
Rights of the Government of the United States in the Republic
of the Marshall Islands Concluded Pursuant to Sections 321
and 323 of the Compact of Free Association, as Amended; and,
(7) Status of Forces Agreement Between the Government of
the United States of America and the Government of the
Republic of the Marshall Islands Concluded Pursuant to
Section 323 of the Compact of Free Association, as Amended.
Section 463
(a) Except as set forth in subsection (b) of this section,
any reference in this Compact, as amended, to a provision of
the United States Code or the Statutes at Large of the United
States constitutes the incorporation of the language of such
provision into this Compact, as amended, as such provision
was in force on the effective date of this Compact, as
amended.
(b) Any reference in Article IV and VI of Title One, and
Sections 174, 175, 178 and 342 to a provision of the United
States Code or the Statutes at Large of the United States or
to the Privacy Act, the Freedom of Information Act, the
Administrative Procedure Act or the Immigration and
Nationality Act constitutes the incorporation of the language
of such provision into this Compact, as amended, as such
provision was in force on the effective date of this Compact,
as amended, or as it may be amended thereafter on a non-
discriminatory basis according to the constitutional
processes of the United States.
Article VII
Concluding Provisions
Section 471
Both the Government of the United States and the Government
of the Republic of the Marshall Islands shall take all
necessary steps, of a general or particular character, to
ensure, no later than the entry into force date of this
Compact, as amended, the conformity of its laws, regulations
and administrative procedures with the provisions of this
Compact, as amended, or, in the case of subsection (d) of
section 141, as soon as reasonably possible thereafter.
Section 472
This Compact, as amended, may be accepted, by signature or
otherwise, by the Government of the United States and the
Government of the Republic of the Marshall Islands.
IN WITNESS WHEREOF, the undersigned, duly authorized, have
signed this Compact of Free Association, as amended, which
shall enter into force upon the exchange of diplomatic notes
by which the Government of the United States of America and
the Government of the Republic of the Marshall Islands inform
each other about the fulfillment of their respective
requirements for entry into force.
DONE at Majuro, Republic of the Marshall Islands, in
duplicate, this thirtieth (30) day of April, 2003, each text
being equally authentic.
Signed (May 14, 2003) For the Government of the United States of
ASigned (May 14, 2003) For the Government of the Federated States of
Micronesia:
Approved____, 2003.
Strike out the preamble and insert:
Whereas the United States (in accordance with the
Trusteeship Agreement for the Trust Territory of the Pacific
Islands, the United Nations Charter, and the objectives of
the international trusteeship system of the United Nations)
fulfilled its obligations to promote the development of the
people of the Trust Territory toward self-government or
independence as appropriate to the particular circumstances
of the Trust Territory and its peoples and the freely
expressed wishes of the peoples concerned;
Whereas the United States, the Federated States of
Micronesia, and the Republic of the Marshall Islands entered
into the Compact of Free Association set forth in title II of
Public Law 99-239, January 14, 1986, 99 Stat. 1770, to create
and maintain a close and mutually beneficial relationship;
Whereas the United States, in accordance with section 231
of the Compact of Free Association entered into negotiations
with the Governments of the Federated States of Micronesia
and the Republic of the Marshall Islands to provide continued
United States assistance and to reaffirm its commitment to
this close and beneficial relationship; and
Whereas these negotiations, in accordance with section 431
of the Compact, resulted in the ``Compact of Free
Association, as amended between the Government of the United
States of America and the Government of the Federated States
of Micronesia'', and the ``Compact of Free Association, as
amended between the Government of the United States of
America and the Government of the Republic of the Marshall
Islands'', which, together with their related agreements,
were signed by the Government of the United States and the
Governments of the Federated States of Micronesia and the
Republic of the Marshall Islands on May 14, and April 30,
2003, respectively: Now, therefore, be it
Amend the title so as to read: ``A joint resolution to
approve the Compact of Free Association, as amended, between
the Government of the United States of America and the
Government of the Federated States of Micronesia, and the
Compact of Free Association, as amended, between the
Government of the United States of America and the Government
of the Republic of the Marshall Islands, and to appropriate
funds to carry out the amended Compacts.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Iowa (Mr. Leach) and the gentleman from California (Mr. Lantos) each
will control 20 minutes.
The Chair recognizes the gentleman from Iowa (Mr. Leach).
General Leave
Mr. LEACH. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on the joint resolution under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Iowa?
There was no objection.
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of House Joint Resolution 63,
legislation that reauthorizes the Compact of Free Association of the
Federated States of Micronesia and the Republic of the Marshall
Islands.
Mr. Speaker, the text of H.J. Res. 63 which is before us is
substantially identical to the extensive bill passed by this body 3
weeks ago. The few changes it incorporates were the result of the
bipartisan, bicameral consultations prior to passage in the other body,
and in my judgment represent further improvements to this legislative
product.
Specifically, these include an amendment to the education section
which ensures retention within the islands of eligibility for
participation in U.S. special education programs; a modification of the
disaster assistance provisions based primarily on a recent proposal
from the administration which envisions continuing roles for both the
Federal Emergency Management Agency and the U.S. Agency for
International Development's Office of Foreign Disaster Assistance; and
the inclusion of $5.3 million for the final U.S. contribution to the
trust fund established to assist in the resettlement of Rongelap
Island, the locale for the U.S. thermonuclear tests in the 1940s and
1950s.
It would be my hope that we could finalize this noncontroversial
package today and send it to the President for signature before the end
of the session. 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 the island countries.
These negotiations were only completed this spring, leaving Congress
relatively little time to act on a host of difficult substantive and
jurisdictional issues before those authorities expired on September 30,
2003. Because Congress was not able to reauthorize the compacts prior
to the end of the fiscal year, the basic authorities for U.S.
assistance to the islands have been extended temporarily by continuing
resolution.
In closing, I would like to thank again the chairmen and ranking
members of the Committees on Resources, Education and the Work Force,
Budget, Ways and Means, and the Committee on International Relations,
particularly the gentleman from California (Mr. Lantos), for their
assistance and cooperation in developing and supporting this important
legislation which further advances relations with our stalwart friends
in the freely associated states and protects key U.S. interests in the
Western Pacific. I urge support for the resolution.
Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of this legislation. I am very
pleased that the House is taking final action today on renewal of the
Compact of Free Association with the Federated States of Micronesia and
the Republic of the Marshall Islands.
With final 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 our national
defense.
{time} 1530
To understand the importance of renewing the compacts, Mr. Speaker,
we
[[Page H11755]]
must remember our Nation's history in the region. During the Second
World War, American soldiers liberated the Pacific, island by island,
in brutal and bloody battles. After the war, the United States
administered Micronesia and the Marshalls, and we have maintained a
vitally important military base on Kwajalein Atoll.
In the 1940s and 1950s, the United States used the Marshall Islands
as a nuclear testing ground. The Marshallese people were dramatically
affected by these nuclear tests, and entire islands remain
uninhabitable, even today. 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 very good bargain. Funds would flow to the island
nations in return for strategic denial and a defense veto. The
Kwajalein Army Base is vitally important to American missile tests, and
as a listening post to the world. With approval of the compacts, the
United States advanced our national security interests. However, our
government inadequately monitored the expenditure of funds and ignored
the need to promote economic development in the islands.
The compacts before the House today ensure that funds will be well
spent in the future, will promote sound economic development, and will
focus on the all-important subjects of education and health care. They
also establish trust funds for both nations to ensure that they can
become self-sufficient in 20 years.
Mr. Speaker, H.J. Res. 63 promotes our Nation's national security
interests and furthers our already excellent relationship with the
Marshalls and Micronesia. I urge its approval.
Mr. Speaker, I reserve the balance of my time.
Mr. LEACH. Mr. Speaker, I reserve the balance of my time.
Mr. LANTOS. Mr. Speaker, it gives me extraordinary pleasure to yield
5 minutes to the gentlewoman from California (Ms. Watson), our former
distinguished Ambassador to Micronesia.
Ms. WATSON. Mr. Speaker, I would like to thank the gentleman from
California (Mr. Lantos), the gentleman from Iowa (Mr. Leach) and all
those who had a very active part in bringing this bill to the floor. I
was privileged and honored to represent the United States as the
Ambassador to the Federated States of Micronesia, and I have a deep and
abiding respect for the island nations who are struggling to build
their democracy following the American model. I am pleased that we have
advanced the new compact legislation out of Congress to this point.
Although most of the contentious issues in the compact have been
addressed, the funding allocated for education still continues to
concern me. I visited many of the schools, and I can tell my colleagues
that they need a lot of help. We have to take them from the past into
the present, and we have to see that they have the technology in their
classrooms to make them a part of our new global economy. The RMI and
FSM children have only just begun to benefit from the establishment of
an integrated education system, and I am very pleased to know that
authorization for educational programs is included in the bill.
In my former profession of teaching, I have witnessed the impact of
early structured education. Young children are much better equipped to
enter the educational system when they are exposed to education at an
early age. Our Head Start program over there is the Cadillac program of
the island. Everyone clamors to get their children in there whether
they qualify or not. The educational appropriations that Chairman
Regula has offered to support is critical to keep these effective
programs in place and give these children of these distant Pacific
islands an opportunity.
I also 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. If we were to eliminate the
Pell Grant assistance, we would have decimated the college system in
the Federated States of Micronesia. A large portion of the operating
funds for the college are obtained through Pell Grants. When you see
these young people able to do 2 years in their college and then come
here to the United States and then come back home and lend their
expertise to this new emerging government, it really fills your heart
with glee, and we should be so proud.
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. The FEMA assistance is absolutely critical because being
surrounded by water and spread out over a million miles of ocean, we
are always in line for some kind of natural catastrophe.
As we move forward with our unique relationship with the Freely
Associated States, I hope the United States Congress will continue to
be supportive and receptive of the needs of our new democratic friends.
I urge my colleagues to understand the importance of the FAS, and I
fully support this piece of legislation.
Mr. LANTOS. Mr. Speaker, I want to thank my friend for her eloquent
and powerful statement.
Mr. Speaker, I yield 5 minutes to the distinguished gentlewoman from
Guam (Mr. Bordallo).
Ms. BORDALLO. Mr. Speaker, I thank the gentleman from California (Mr.
Lantos) and the gentleman from Iowa (Mr. Leach) for this opportunity. I
want to take this time to thank the leadership for their work on the
Compact of Free Association Amendments Act. This piece of legislation
is vital to the Pacific region and so important to the people of Guam.
Guam is the closest American neighbor to the Freely Associated States.
We have witnessed the progress that the Federated States of Micronesia
and the Republic of the Marshall Islands have made under the original
compact since 1986. Today this House will approve a renewal of this
compact and recommit the United States of America to friendship with
steadfast allies in the Pacific. Over the past 2 years, a lot of work
has been exerted in renegotiating the terms of the original compact,
and today we consider this measure for the final time before it makes
its way to the White House. I am pleased that we are able to come to
agreement in a bipartisan effort on matters that are so important to
the Freely Associated States. Continuation of their eligibility for
Pell Grants, Job Corps and programs under the Individuals with
Disabilities Education Act is protected by H.J. Res. 63. This
legislation also provides for an improved process to address the impact
the immigration provisions have on affected U.S. jurisdictions. Annual
mandatory funding in the amount of $30 million is provided for by this
bill to be shared by Guam, Hawaii, the Commonwealth of the Northern
Mariana Islands and American Samoa to help defray costs associated with
immigration. The legislation includes my provision for compact-impact
reconciliation to address the unreimbursed compact costs over the past
17 years.
I want to recognize the work of the U.S. negotiating teams, most
particularly the contributions of the chief U.S. negotiators, Al
Stayman in the early phase and Colonel Al Short under the Bush
administration. I congratulate the leadership of the Federated States
of Micronesia and the Republic of the Marshall Islands for their
successful efforts. I want to acknowledge and thank the united efforts
of Guam's leaders on the provisions important to our island. Governor
Camacho and Speaker Pangelinan traveled thousands of miles to
Washington in July to testify before the House Committee on Resources.
Additionally, Mr. Speaker, I want to thank the gentlemen from Hawaii
(Mr. Abercrombie) and (Mr. Case) for their efforts. I also want to
thank the gentleman from Iowa (Mr. Leach), the gentleman from Illinois
(Mr. Hyde), the gentleman from California (Mr. Pombo), the gentleman
from Ohio (Mr. Boehner) and the gentleman from Wisconsin (Mr.
Sensenbrenner) for their leadership in crafting this legislation as
well as the gentleman from Iowa (Mr. Nussle), the gentleman from Ohio
(Mr. Regula) and the gentleman from California (Mr. Thomas) for their
input on matters under their committee's jurisdictions. I also want to
thank the gentleman from California (Mr. Lantos), the gentleman from
West Virginia (Mr. Rahall), the gentleman
[[Page H11756]]
from California (Mr. George Miller), the gentleman from Michigan (Mr.
Conyers), the gentleman from South Carolina (Mr. Spratt), the gentleman
from Wisconsin (Mr. Obey), and the gentleman from New York (Mr. Rangel)
for their help in addressing matters of concern as this bill moved
through the process, and to thank the staff serving on these
committees.
Lastly, Mr. Speaker, I want to make special mention of the work the
gentleman from American Samoa (Mr. Faleomavaega) has put into the
legislation. His service is invaluable to this institution and the
people of the Pacific islands hold him in high esteem. This is indeed,
Mr. Speaker, an historic day for the Pacific islands. I urge adoption
of H.J. Res. 63.
Mr. LANTOS. Mr. Speaker, I am very pleased to yield 2 minutes to the
distinguished gentleman from Hawaii (Mr. Abercrombie).
(Mr. ABERCROMBIE asked and eas given permission to revise and extend
his remarks.)
Mr. ABERCROMBIE. Mr. Speaker, our colleague and friend from Guam has
made manifest in her remarks the debt of gratitude that is owed to many
individuals, some of whom are here and are represented, I think, on the
whole by our colleagues who are in charge of the bill on the floor.
This is an issue of little note for many Members. It would be easy, I
expect, to say that the compact for Micronesia represents an area of
forgotten people, but that would be incorrect, Mr. Speaker, because in
many instances this is an area of the never noticed. It is something
that is difficult for many people in the United States, let alone in
the rest of the world, to comprehend that we have here a colonial
vestige, a post-World War II anachronism. We have a situation in which
responsibility exists for the United States which is scarcely
understood, let alone taken into account, not because of design but
rather by the default and omission of elementary understanding.
Those of us who live in the Pacific, those of us who are aware of the
human dimension that is involved here are particularly grateful to all
of the individuals and committee staff members that have been noted by
my good friend from Guam. I want to pay particular notice to my
chairman on the Committee on Resources, the gentleman from California
(Mr. Pombo) who has assumed these duties with this Congress. Some of
the other Members mentioned are long familiar with the compact. The
gentleman from California has exhibited a particular sensitivity and
quest for understanding that I think has aided immeasurably in the
accomplishment of dealing with what is, in fact, an unfunded mandate.
The compact requires us to meet certain standards and, as has been
mentioned by my good friend from Guam, Guam, Hawaii and the Marianas
bear the brunt of the financial side of this as well.
Free association means that people are able to travel freely and as a
result of this compact, Mr. Speaker, I think we have taken an enormous
step forward, and my gratitude and aloha to all those who helped to
provide it and get us to this step today. Mahalo to all.
Mr. LANTOS. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume. In
conclusion, let me thank each of the contributors to today's
discussion. Obviously, the gentleman from California (Mr. Lantos) has
played a seminal role in this process; so have the gentlewoman from
California (Ms. Watson), the gentleman from American Samoa (Mr.
Faleomavaega), the gentleman from Hawaii (Mr. Abercrombie), and I would
like to note with regard to the gentlewoman from Guam (Ms. Bordallo),
how appreciative we are of her help in this endeavor, and how
appreciative I am that she has referenced all the people from the
outside that have contributed to the development of this particular
agreement.
I might say that Congress has put a slightly modified stamp on what
was negotiated by the executive branch. This modified stamp is tilted
towards generosity.
{time} 1545
This is particularly appropriate because this is the people's body,
and we are in the fortunate position of having nothing but feelings of
enormous goodwill towards the people of the freely associated states.
This is a tangible agreement, but it is what is intangible that is so
much more important. So as we in this House pass this agreement, I
would just like to say that I am confident I speak for this entire body
when I suggest that we are proud of our friends in the Pacific and we
hope to maintain warm relationships for decades and decades to come.
Mr. ABERCROMBIE. Mr. Speaker, I would like to express my wholehearted
support for the final passage of H.J. Res. 63, the Compact of Free
Association Amendments Act of 2003. Years of negotiations and the
cooperative work of many people has brought us to this point, the
reauthorization of the Compact by Congress.
For the past 17 years, the United States has had a secure
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 not only allow this critical economic and military relationship to
continue, but will improve upon its successes and ensure that FAS
citizens get the maximum benefit possible from this agreement.
H.J. Res. 63 extends our military commitments in the Pacific by
retaining certain defense rights as well as providing for continued
access to Kwajalein Atoll, home of the Ronald Reagan Ballistic Missile
Defense Test Site.
This legislation also includes provisions affecting the health,
education, and welfare of FAS citizens. They will continue to be
eligible for funds from the Pell Grant Program and from the Individuals
with Disabilities Education Act, resources which are integral to their
development of a competent and effective education system. They will
also be eligible for funds to combat the spread of communicable
diseases such as tuberculosis, cholera and Hansen's disease. FAS
citizens can have complicated and severe health care needs and this
grant money will go a long way toward easing these health difficulties.
The Compact also allows FAS citizens to enter the United States and
its territories as nonimmigrants. These provisions are being enhanced
to include security measures and more dependable passports. In
addition, due to the ability to freely migrate, Compact migrants have
been entering the United States in ever increasing numbers. This
migration is having an enormous impact on the education, health, public
safety and social service systems of the areas receiving these compact
migrants. These costs have a very tangible impact and collectively, are
fast approaching the $100 million per year level. 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.
H.J. Res. 63 addresses this effect by creating a mandatory funding
stream of $30 million a year in compensation for Hawaii, Guam, the
Commonwealth of the Northern Mariana Islands, and American Samoa. These
areas have borne the brunt of this impact since 1986 and although these
funds will be divided among the four jurisdictions, it will be the
largest compensation any of these jurisdictions has received to date.
In addition, health care providers will also be eligible for the
reimbursement of expenses arising from the treatment of Compact
migrants. 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 and territorial departments and agencies that
have spent untold resources and labor in providing for the Compact
migrants.
The scope of this Compact assures that every FAS citizen will be
affected in some way and that is why I applaud the efforts to produce a
bipartisan compromise with the input of all affected parties. Chairman
Pombo of the House Resources Committee has been especially willing to
listen to the voices of people in the Pacific and has bent over
backwards to be fair and just. Chairman Hyde, Chairman Boehner and
Chairman Nussle have also accomplished tremendous 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. FALEOMAVAEGA. Mr. Speaker, I would like to extend my gratitude to
Chairman Hyde and Ranking Member Lantos of the International Relations
Committee, Chairman Pombo and Ranking Member Rahall of the Resources
Committee and my good friend, Chairman Jim Leach of the International
Relations Subcommittee on Asia and the Pacific for working so
diligently these past several months to address some of the very
important concerns raised by the RMI and FSM as it relates to the
Compact of Free Association.
[[Page H11757]]
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 RMI and in turn both agree to provide
the U.S. with certain defense rights now including use of eleven
defense sites on Kwajalein Atoll where the U.S. Department of Defense
has established a multi-billion dollar anti-ballistic missile testing
facility.
In October 2001, portions of the Compact expired and representatives
from the FSM, RMI and the Department of the Interior began negotiating
an extension of these provisions. Earlier this year, DOI sent Congress
the negotiated product to be considered as the re-authorization of the
Compacts of Free Association. However, key provisions, including
funding for 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.
Mr. Chairman, 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 and assistance in building local capacity. As you
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 Grants
assistance and also recognizes the importance of FEMA assistance to
these islands.
The truth is, 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
1,000 times more powerful than the bombs dropped on Hiroshima and
Nagasaki during World War II. The results were and continue to be
devastating.
As a Pacific Islander, I am pleased that H.J. Res 63 acknowledges the
contributions and sacrifices made by the FAS and also addresses the
needs and concerns of the people of the FSM and RMI. 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 twenty years and will
also affect American Samoa's tuna industry for generations to come.
I urge my colleagues to honor our pledge to the people of the FAS to
assist them in maintaining a democratic government and supporting the
principles that contribute to economic development and self-
sufficiency. I also urge my colleagues to support American Samoa's
interests by voting yes for H.J. Res 63.
Mr. LEACH. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Terry). The question is on the motion
offered by the gentleman from Iowa (Mr. Leach) that the House suspend
the rules and concur in the Senate amendments to the joint resolution,
H.J. Res. 63.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. LANTOS. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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