[Congressional Record (Bound Edition), Volume 149 (2003), Part 19]
[House]
[Pages 25876-25917]
[From the U.S. Government Publishing Office, www.gpo.gov]




           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003

  Mr. LEACH. Madam Speaker, I move to suspend the rules and pass the 
joint resolution (H.J. Res. 63) to approve the ``Compact of Free 
Association, as amended between the Government of the United States of 
America and the Government of the Federated States of Micronesia'', and 
the ``Compact of Free Association, as amended between the Government of 
the United States of America and the Government of the Republic of the 
Marshall Islands'', and otherwise to amend Public Law 99-239, and to 
appropriate for the purposes of amended Public Law 99-239 for fiscal 
years ending on or before September 30, 2023, and for other purposes, 
as amended.
  The Clerk read as follows:

                              H.J. Res. 63

       Whereas the United States, in accordance with section 231 
     of the Compact of Free Association set forth in Title II of 
     Public Law 99-239, January 14, 1986, 99 Stat. 1770, entered 
     into negotiations with the Governments of the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands; and
       Whereas these negotiations, in accordance with section 431 
     of the Compact, resulted in the ``Compact of Free 
     Association, as amended between the Government of the United 
     States of America and the Government of the Federated States 
     of Micronesia'', and the ``Compact of Free Association, as 
     amended between the Government of the United States of 
     America and the Government of the Republic of the Marshall 
     Islands'', which, together with their related agreements, 
     were signed by the Government of the United States and the 
     Governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands on May 14, and April 30, 
     2003, respectively: Now, therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled,

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

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

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

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

Sec. 201. Compacts of Free Association, as Amended Between the 
              Government of the United States and the Government of the 
              Federated States of Micronesia and Between the Government 
              of the United States and the Government of the Republic 
              of the Marshall Islands.
(a) Compact of Free Association as amended between the Government of 
              the United States of America and the Government of the 
              Federated States of Micronesia.

                   Title One--Governmental Relations

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

                     Title Two--Economic Relations

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

              Title Three--Security and Defense Relations

Article I--Authority and Responsibility.
Article II--Defense Facilities and Operating Rights.
Article III--Defense Treaties and International Security Agreements.

[[Page 25877]]

Article IV--Service in Armed Forces of the United States.
Article V--General Provisions.

                     Title Four--General Provisions

Article I--Approval and Effective Date.
Article II--Conference and Dispute Resolution.
Article III--Amendment.
Article IV--Termination.
Article V--Survivability.
Article VI--Definition of Terms.
Article VII--Concluding Provisions.
(b) Compact of Free Association, as Amended Between the Government of 
              the United States of America and the Government of the 
              Republic of the Marshall Islands.
  

                   Title One--Governmental Relations

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

                     Title Two--Economic Relations

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

              Title Three--Security and Defense Relations

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

                     Title Four--General Provisions

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

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

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

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

     SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MICRONESIA.

       (a) Law Enforcement Assistance.--Pursuant to sections 222 
     and 224 of the U.S.-FSM Compact, the United States shall 
     provide nonreimbursable technical and training assistance as 
     appropriate, including training and equipment for postal 
     inspection of illicit drugs and other contraband, to enable 
     the Government of the Federated States of Micronesia to 
     develop and adequately enforce laws of the Federated States 
     of Micronesia and to cooperate with the United States in the 
     enforcement of criminal laws of the United States. Funds 
     appropriated pursuant to section 105(j) of this title may be 
     used to reimburse State or local agencies providing such 
     assistance.
       (b) Agreement on Audits.--The Comptroller General (and his 
     duly authorized representatives) shall have the authorities 
     necessary to carry out his responsibilities under

[[Page 25878]]

     section 232 of the U.S.-FSM Compact and the agreement 
     referred to in section 462(b)(4) of the U.S.-FSM Compact, 
     including the following authorities:
       (1) General authority of the comptroller general to 
     audit.--
       (A) The Comptroller General of the United States (and his 
     duly authorized representatives) shall have the authority to 
     audit--
       (i) all grants, program assistance, and other assistance 
     provided to the Government of the Federated States of 
     Micronesia under Articles I and II of Title Two of the U.S.-
     FSM Compact; and
       (ii) any other assistance provided by the Government of the 
     United States to the Government of the Federated States of 
     Micronesia.

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

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

       (a) Law Enforcement Assistance.--Pursuant to sections 222 
     and 224 of the U.S.-RMI Compact, the United States shall 
     provide non-reimbursable technical and training assistance as 
     appropriate, including training and equipment for postal 
     inspection of illicit drugs and other contraband, to enable 
     the Government of the Marshall Islands to develop and 
     adequately enforce laws of the Marshall Islands and to 
     cooperate with the United States in the enforcement of 
     criminal laws of the United States. Funds appropriated 
     pursuant to section 105(j) of this title may be used to 
     reimburse State or local agencies providing such assistance.
       (b) Ejit.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that the President of the United 
     States shall negotiate with the Government of the Marshall 
     Islands an agreement whereby, without prejudice as to any 
     claims which have been or may be asserted by any party as to 
     rightful title and ownership of any lands on Ejit, the 
     Government of the Marshall Islands shall assure that lands on 
     Ejit used as of January 1, 1985, by the people of Bikini, 
     will continue to be available without charge for their use, 
     until such time as Bikini is restored and inhabitable and the 
     continued use of Ejit is no longer necessary, unless a 
     Marshall Islands court of competent jurisdiction finally 
     determines that there are legal impediments to continued use 
     of Ejit by the people of Bikini.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that if the impediments described 
     in paragraph (1) do arise, the United States will cooperate 
     with the Government of the Marshall Islands in assisting any 
     person adversely affected by such judicial determination to 
     remain on Ejit, or in locating suitable and acceptable 
     alternative lands for such person's use.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that paragraph (1) shall not be 
     applied in a manner which would prevent the Government of the 
     Marshall Islands from acting in accordance with its 
     constitutional processes to resolve title and ownership 
     claims with respect to such lands or from taking substitute 
     or additional measures to meet the needs of the people of 
     Bikini with their democratically expressed consent and 
     approval.
       (c) Kwajalein.--
       (1) It is the policy of the United States that payment of 
     funds by the Government of the Marshall Islands to the 
     landowners of Kwajalein Atoll in accordance with the land use 
     agreement dated October 19, 1982, or as amended or 
     superceded, and any related allocation agreements, is 
     required in order to ensure that the Government of the United 
     States will be able to fulfill its obligation and 
     responsibilities under Title Three of the Compact and the 
     subsidiary agreements concluded pursuant to the Compact.
       (2)(A) If the Government of the Marshall Islands fails to 
     make payments in accordance with paragraph (1), the 
     Government of the United States shall initiate procedures 
     under section 313 of the Compact and consult with the 
     Government of the Marshall Islands with respect to the basis 
     for the nonpayment of funds.
       (B) The United States shall expeditiously resolve the 
     matter of any nonpayment of funds required under paragraph 
     (1) pursuant to section 313 of the Compact and the authority 
     and responsibility of the Government of the United States for 
     security and defense matters in or relating to the Marshall 
     Islands.
       (C) This paragraph shall be enforced in accordance with 
     section 105(f)(2).
       (3) Until such time as the Government of the Marshall 
     Islands and the landowners of Kwajalein Atoll have concluded 
     an agreement amending or superceding the land use agreement 
     dated October 19, 1982, any amounts paid by the United States 
     to the Government of the Marshall Islands in excess of the 
     amounts required to be paid pursuant to the land use 
     agreement dated October 19, 1982, shall be paid into, and 
     held in, an interest bearing account in a United States 
     financial institution by the Government of the Republic of 
     the Marshall Islands.
       (4)(A) The Government of the Republic of the Marshall 
     Islands shall notify the Government of the United States when 
     an agreement amending or superceding the land use agreement 
     dated October 19, 1982, is concluded.
       (B) If no agreement amending or superceding the land use 
     agreement dated October 19, 1982, is concluded by the date 
     five years after the date of enactment of this resolution, 
     the President shall report to Congress on the intentions of 
     the United States with respect to the use of Kwajalein Atoll 
     after 2016, and on any plans to relocate activities carried 
     out at Kwajalein Atoll.
       (d) Section 177 Agreement.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that in furtherance of the purposes 
     of Article I of the Subsidiary Agreement for Implementation 
     of Section 177 of the Compact, the payment of the amount 
     specified therein shall be made by the United States under 
     Article I of the Agreement between the Government of the 
     United States and the Government of the Marshall Islands for 
     the Implementation of section 177 of the Compact (hereafter 
     in this subsection referred to as the ``Section 177 
     Agreement'') only after the Government of the Marshall 
     Islands has notified the President of the United States as to 
     which investment management firm has been selected by such 
     Government to act as Fund Manager under Article I of the 
     Section 177 Agreement.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided

[[Page 25879]]

     that in the event that the President determines that an 
     investment management firm selected by the Government of the 
     Marshall Islands does not meet the requirements specified in 
     Article I of the Section 177 Agreement, the United States 
     shall invoke the conference and dispute resolution procedures 
     of Article II of Title Four of the Compact. Pending the 
     resolution of such a dispute and until a qualified Fund 
     Manager has been designated, the Government of the Marshall 
     Islands shall place the funds paid by the United States 
     pursuant to Article I of the Section 177 Agreement into an 
     interest-bearing escrow account. Upon designation of a 
     qualified Fund Manager, all funds in the escrow account shall 
     be transferred to the control of such Fund Manager for 
     management pursuant to the Section 177 Agreement.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that if the Government of the 
     Marshall Islands determines that some other investment firm 
     should act as Fund Manager in place of the firm first (or 
     subsequently) selected by such Government, the Government of 
     the Marshall Islands shall so notify the President of the 
     United States, identifying the firm selected by such 
     Government to become Fund Manager, and the President shall 
     proceed to evaluate the qualifications of such identified 
     firm.
       (4) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that at the end of 15 years after 
     the effective date of the Compact, the firm then acting as 
     Fund Manager shall transfer to the Government of the Marshall 
     Islands, or to such account as such Government shall so 
     notify the Fund Manager, all remaining funds and assets being 
     managed by the Fund Manager under the Section 177 Agreement.
       (e) Nuclear Test Effects.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     in approving the Compact, the Congress understands and 
     intends that the peoples of Bikini, Enewetak, Rongelap, and 
     Utrik, who were affected by the United States nuclear weapons 
     testing program in the Marshall Islands, will receive the 
     amounts of $75,000,000 (Bikini); $48,750,000 (Enewetak); 
     $37,500,000 (Rongelap); and $22,500,000 (Utrik), 
     respectively, which amounts shall be paid out of proceeds 
     from the fund established under Article I, section 1 of the 
     subsidiary agreement for the implementation of section 177 of 
     the Compact. The amounts specified in this subsection shall 
     be in addition to any amounts which may be awarded to 
     claimants pursuant to Article IV of the subsidiary agreement 
     for the implementation of Section 177 of the Compact. Nothing 
     in this subsection creates any rights or obligations beyond 
     those provided for in the original enacted version of Public 
     Law 99-239.
       (f) Espousal Provisions.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that it is the intention of the 
     Congress of the United States that the provisions of section 
     177 of the Compact of Free Association and the Agreement 
     between the Government of the United States and the 
     Government of the Marshall Islands for the Implementation of 
     Section 177 of the Compact (hereafter in this subsection 
     referred to as the ``Section 177 Agreement'') constitute a 
     full and final settlement of all claims described in Articles 
     X and XI of the Section 177 Agreement, and that any such 
     claims be terminated and barred except insofar as provided 
     for in the Section 177 Agreement.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that in furtherance of the 
     intention of Congress as stated in paragraph (1) of this 
     subsection, the Section 177 Agreement is hereby ratified and 
     approved. It is the explicit understanding and intent of 
     Congress that the jurisdictional limitations set forth in 
     Article XII of such Agreement are enacted solely and 
     exclusively to accomplish the objective of Article X of such 
     Agreement and only as a clarification of the effect of 
     Article X, and are not to be construed or implemented 
     separately from Article X.
       (g) DOE Radiological Health Care Program; USDA Agricultural 
     and Food Programs.--
       (1) Notwithstanding any other provision of law, upon the 
     request of the Government of the Republic of the Marshall 
     Islands, the President (either through an appropriate 
     department or agency of the United States or by contract with 
     a United States firm) shall continue to provide special 
     medical care and logistical support thereto for the remaining 
     members of the population of Rongelap and Utrik who were 
     exposed to radiation resulting from the 1954 United States 
     thermo-nuclear ``Bravo'' test, pursuant to Public Laws 95-134 
     and 96-205.
       (2)(A) In the joint resolution of January 14, 1986 (Public 
     Law 99-239), Congress provided that notwithstanding any other 
     provision of law, upon the request of the Government of the 
     Marshall Islands, for the first fifteen years after the 
     effective date of the Compact, the President (either through 
     an appropriate department or agency of the United States or 
     by contract with a United States firm or by a grant to the 
     Government of the Republic of the Marshall Islands which may 
     further contract only with a United States firm or a Republic 
     of the Marshall Islands firm, the owners, officers and 
     majority of the employees of which are citizens of the United 
     States or the Republic of the Marshall Islands) shall provide 
     technical and other assistance--
       (i) without reimbursement, to continue the planting and 
     agricultural maintenance program on Enewetak, as provided in 
     subparagraph (C);
       (ii) without reimbursement, to continue the food programs 
     of the Bikini and Enewetak people described in section 1(d) 
     of Article II of the Subsidiary Agreement for the 
     Implementation of Section 177 of the Compact and for 
     continued waterborne transportation of agricultural products 
     to Enewetak including operations and maintenance of the 
     vessel used for such purposes.
       (B) The President shall ensure the assistance provided 
     under these programs reflects the changes in the population 
     since the inception of such programs.
       (C)(i) The planting and agricultural maintenance program on 
     Enewetak shall be funded at a level of not less than 
     $1,300,000 per year, as adjusted for inflation under section 
     218 of the U.S.-RMI Compact.
       (ii) There is hereby authorized and appropriated to the 
     Secretary of the Interior, out of any funds in the Treasury 
     not otherwise appropriated, to remain available until 
     expended, for each fiscal year from 2004 through 2023, 
     $1,300,000, as adjusted for inflation under section 218 of 
     the U.S.-RMI Compact, to carry out the planting and 
     agricultural maintenance program.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that payments under this subsection 
     shall be provided to such extent or in such amounts as are 
     necessary for services and other assistance provided pursuant 
     to this subsection. It is the sense of Congress that after 
     the periods of time specified in paragraphs (1) and (2) of 
     this subsection, consideration will be given to such 
     additional funding for these programs as may be necessary.
       (h) Rongelap.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that because Rongelap was directly 
     affected by fallout from a 1954 United States thermonuclear 
     test and because the Rongelap people remain unconvinced that 
     it is safe to continue to live on Rongelap Island, it is the 
     intent of Congress to take such steps (if any) as may be 
     necessary to overcome the effects of such fallout on the 
     habitability of Rongelap Island, and to restore Rongelap 
     Island, if necessary, so that it can be safely inhabited. 
     Accordingly, it is the expectation of the Congress that the 
     Government of the Marshall Islands shall use such portion of 
     the funds specified in Article II, section 1(e) of the 
     subsidiary agreement for the implementation of section 177 of 
     the Compact as are necessary for the purpose of contracting 
     with a qualified scientist or group of scientists to review 
     the data collected by the Department of Energy relating to 
     radiation levels and other conditions on Rongelap Island 
     resulting from the thermonuclear test. It is the expectation 
     of the Congress that the Government of the Marshall Islands, 
     after consultation with the people of Rongelap, shall select 
     the party to review such data, and shall contract for such 
     review and for submission of a report to the President of the 
     United States and the Congress as to the results thereof.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that the purpose of the review 
     referred to in paragraph (1) of this subsection shall be to 
     establish whether the data cited in support of the 
     conclusions as to the habitability of Rongelap Island, as set 
     forth in the Department of Energy report entitled: ``The 
     Meaning of Radiation for Those Atolls in the Northern Part of 
     the Marshall Islands That Were Surveyed in 1978'', dated 
     November 1982, are adequate and whether such conclusions are 
     fully supported by the data. If the party reviewing the data 
     concludes that such conclusions as to habitability are fully 
     supported by adequate data, the report to the President of 
     the United States and the Congress shall so state. If the 
     party reviewing the data concludes that the data are 
     inadequate to support such conclusions as to habitability or 
     that such conclusions as to habitability are not fully 
     supported by the data, the Government of the Marshall Islands 
     shall contract with an appropriate scientist or group of 
     scientists to undertake a complete survey of radiation and 
     other effects of the nuclear testing program relating to the 
     habitability of Rongelap Island. Such sums as are necessary 
     for such survey and report concerning the results thereof and 
     as to steps needed to restore the habitability of Rongelap 
     Island are authorized to be made available to the Government 
     of the Marshall Islands.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that it is the intent of Congress 
     that such steps (if any) as are necessary to restore the 
     habitability of Rongelap Island and return the Rongelap 
     people to their homeland will be taken by the United States 
     in consultation with the Government of the Marshall Islands 
     and, in accordance with its authority under the Constitution 
     of the Marshall Islands, the Rongelap local government 
     council.
       (i) Four Atoll Health Care Program.--

[[Page 25880]]

       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that services provided by the 
     United States Public Health Service or any other United 
     States agency pursuant to section 1(a) of Article II of the 
     Agreement for the Implementation of Section 177 of the 
     Compact (hereafter in this subsection referred to as the 
     ``Section 177 Agreement'') shall be only for services to the 
     people of the Atolls of Bikini, Enewetak, Rongelap, and Utrik 
     who were affected by the consequences of the United States 
     nuclear testing program, pursuant to the program described in 
     Public Law 95-134 (91 Stat. 1159) and Public Law 96-205 (94 
     Stat. 84) and their descendants (and any other persons 
     identified as having been so affected if such identification 
     occurs in the manner described in such public laws). Nothing 
     in this subsection shall be construed as prejudicial to the 
     views or policies of the Government of the Marshall Islands 
     as to the persons affected by the consequences of the United 
     States nuclear testing program.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that at the end of the first year 
     after the effective date of the Compact and at the end of 
     each year thereafter, the providing agency or agencies shall 
     return to the Government of the Marshall Islands any 
     unexpended funds to be returned to the Fund Manager (as 
     described in Article I of the Section 177 Agreement) to be 
     covered into the Fund to be available for future use.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that the Fund Manager shall retain 
     the funds returned by the Government of the Marshall Islands 
     pursuant to paragraph (2) of this subsection, shall invest 
     and manage such funds, and at the end of 15 years after the 
     effective date of the Compact, shall make from the total 
     amount so retained and the proceeds thereof annual 
     disbursements sufficient to continue to make payments for the 
     provision of health services as specified in paragraph (1) of 
     this subsection to such extent as may be provided in 
     contracts between the Government of the Marshall Islands and 
     appropriate United States providers of such health services.
       (j) Enjebi Community Trust Fund.--In the joint resolution 
     of January 14, 1986 (Public Law 99-239) Congress provided 
     that notwithstanding any other provision of law, the 
     Secretary of the Treasury shall establish on the books of the 
     Treasury of the United States a fund having the status 
     specified in Article V of the subsidiary agreement for the 
     implementation of Section 177 of the Compact, to be known as 
     the ``Enjebi Community Trust Fund'' (hereafter in this 
     subsection referred to as the ``Fund''), and shall credit to 
     the Fund the amount of $7,500,000. Such amount, which shall 
     be ex gratia, shall be in addition to and not charged against 
     any other funds provided for in the Compact and its 
     subsidiary agreements, this joint resolution, or any other 
     Act. Upon receipt by the President of the United States of 
     the agreement described in this subsection, the Secretary of 
     the Treasury, upon request of the Government of the Marshall 
     Islands, shall transfer the Fund to the Government of the 
     Marshall Islands, provided that the Government of the 
     Marshall Islands agrees as follows:
       (1) Enjebi trust agreement.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     the Government of the Marshall Islands and the Enewetak Local 
     Government Council, in consultation with the people of 
     Enjebi, shall provide for the creation of the Enjebi 
     Community Trust Fund and the employment of the manager of the 
     Enewetak Fund established pursuant to the Section 177 
     Agreement as trustee and manager of the Enjebi Community 
     Trust Fund, or, should the manager of the Enewetak Fund not 
     be acceptable to the people of Enjebi, another United States 
     investment manager with substantial experience in the 
     administration of trusts and with funds under management in 
     excess of 250 million dollars.
       (2) Monitor conditions.--In the joint resolution of January 
     14, 1986 (Public Law 99-239) Congress provided that upon the 
     request of the Government of the Marshall Islands, the United 
     States shall monitor the radiation and other conditions on 
     Enjebi and within one year of receiving such a request shall 
     report to the Government of the Marshall Islands when the 
     people of Enjebi may resettle Enjebi under circumstances 
     where the radioactive contamination at Enjebi, including 
     contamination derived from consumption of locally grown food 
     products, can be reduced or otherwise controlled to meet 
     whole body Federal radiation protection standards for the 
     general population, including mean annual dose and mean 30-
     year cumulative dose standards.
       (3) Resettlement of enjebi.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     in the event that the United States determines that the 
     people of Enjebi can within 25 years of January 14, 1986, 
     resettle Enjebi under the conditions set forth in paragraph 
     (2) of this subsection, then upon such determination there 
     shall be available to the people of Enjebi from the Fund such 
     amounts as are necessary for the people of Enjebi to do the 
     following, in accordance with a plan developed by the 
     Enewetak Local Government Council and the people of Enjebi, 
     and concurred with by the Government of the Marshall Islands 
     to assure consistency with the government's overall economic 
     development plan:
       (A) Establish a community on Enjebi Island for the use of 
     the people of Enjebi.
       (B) Replant Enjebi with appropriate food-bearing and other 
     vegetation.
       (4) Resettlement of other location.--In the joint 
     resolution of January 14, 1986 (Public Law 99-239) Congress 
     provided that in the event that the United States determines 
     that within 25 years of January 14, 1986, the people of 
     Enjebi cannot resettle Enjebi without exceeding the radiation 
     standards set forth in paragraph (2) of this subsection, then 
     the fund manager shall be directed by the trust instrument to 
     distribute the Fund to the people of Enjebi for their 
     resettlement at some other location in accordance with a 
     plan, developed by the Enewetak Local Government Council and 
     the people of Enjebi and concurred with by the Government of 
     the Marshall Islands, to assure consistency with the 
     government's overall economic development plan.
       (5) Interest from fund.--In the joint resolution of January 
     14, 1986 (Public Law 99-239) Congress provided that prior to 
     and during the distribution of the corpus of the Fund 
     pursuant to paragraphs (3) and (4) of this subsection, the 
     people of Enjebi may, if they so request, receive the 
     interest earned by the Fund on no less frequent a basis than 
     quarterly.
       (6) Disclaimer of liability.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     neither under the laws of the Marshall Islands nor under the 
     laws of the United States, shall the Government of the United 
     States be liable for any loss or damage to person or property 
     in respect to the resettlement of Enjebi by the people of 
     Enjebi, pursuant to the provision of this subsection or 
     otherwise.
       (k) Bikini Atoll Cleanup.--
       (1) Declaration of policy.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239), the Congress determined 
     and declared that it is the policy of the United States, to 
     be supported by the full faith and credit of the United 
     States, that because the United States, through its nuclear 
     testing and other activities, rendered Bikini Atoll unsafe 
     for habitation by the people of Bikini, the United States 
     will fulfill its responsibility for restoring Bikini Atoll to 
     habitability, as set forth in paragraph (2) and (3) of this 
     subsection.
       (2) Cleanup funds.--The joint resolution of January 14, 
     1986 (Public Law 99-239) authorized to be appropriated such 
     sums as necessary to implement the settlement agreement of 
     March 15, 1985, in The People of Bikini, et al. against 
     United States of America, et al., Civ. No. 84-0425 (D. Ha.).
       (3) Conditions of funding.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) the Congress provided 
     that the funds referred to in paragraph (2) were to be made 
     available pursuant to Article VI, Section 1 of the Compact 
     Section 177 Agreement upon completion of the events set forth 
     in the settlement agreement referred to in paragraph (2) of 
     this subsection.
       (l) Agreement on Audits.--The Comptroller General (and his 
     duly authorized representatives) shall have the authorities 
     necessary to carry out his responsibilities under section 232 
     of the U.S.-RMI Compact and the agreement referred to in 
     section 462(b)(4) of the U.S.-RMI Compact, including the 
     following authorities:
       (1) General authority of the comptroller general to 
     audit.--
       (A) The Comptroller General of the United States (and his 
     duly authorized representatives) shall have the authority to 
     audit--
       (i) all grants, program assistance, and other assistance 
     provided to the Government of the Republic of the Marshall 
     Islands under Articles I and II of Title Two of the U.S.-RMI 
     Compact; and
       (ii) any other assistance provided by the Government of the 
     United States to the Government of the Republic of the 
     Marshall Islands.

     Such authority shall include authority for the Comptroller 
     General to conduct or cause to be conducted any of the audits 
     provided for in section 232 of the U.S.-RMI Compact. The 
     authority provided in this paragraph shall continue for at 
     least three years after the last such grant has been made or 
     assistance has been provided.
       (B) The Comptroller General (and his duly authorized 
     representatives) shall also have authority to review any 
     audit conducted by or on behalf of the Government of the 
     United States. In this connection, the Comptroller General 
     shall have access to such personnel 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

[[Page 25881]]

     and files, or other information relevant to such audits.
       (B) Such records, documents, working papers, automated data 
     and files, and other information regarding each such grant or 
     other assistance shall be maintained for at least three years 
     after the date such grant or assistance was provided and in a 
     manner that permits such grants, assistance and payments to 
     be accounted for distinct from any other funds of the 
     Government of the Republic of the Marshall Islands.
       (3) Status of comptroller general representatives.--The 
     Comptroller General and his duly authorized representatives 
     shall be immune from civil and criminal process relating to 
     words spoken or written and all acts performed by them in 
     their official capacity and falling within their functions, 
     except insofar as such immunity may be expressly waived by 
     the Government of the United States. The Comptroller General 
     and his duly authorized representatives shall not be liable 
     to arrest or detention pending trial, except in the case of a 
     grave crime and pursuant to a decision by a competent 
     judicial authority, and such persons shall enjoy immunity 
     from seizure of personal property, immigration restrictions, 
     and laws relating to alien registration, fingerprinting, and 
     the registration of foreign agents. Such persons shall enjoy 
     the same taxation exemptions as are set forth in Article 34 
     of the Vienna Convention on Diplomatic Relations. The 
     privileges, exemptions and immunities accorded under this 
     paragraph are not for the personal benefit of the individuals 
     concerned but are to safeguard the independent exercise of 
     their official functions. Without prejudice to those 
     privileges, exemptions and immunities, it is the duty of all 
     such persons to respect the laws and regulations of the 
     Government of the Republic of the Marshall Islands.
       (4) Audits defined.--As used in this subsection, the term 
     ``audits'' includes financial, program, and management 
     audits, including determining--
       (A) whether the Government of the Republic of the Marshall 
     Islands has met the requirements set forth in the U.S.-RMI 
     Compact, or any related agreement entered into under the 
     U.S.-RMI Compact, regarding the purposes for which such 
     grants and other assistance are to be used; and
       (B) the propriety of the financial transactions of the 
     Government of the Republic of the Marshall Islands pursuant 
     to such grants or assistance.
       (5) Cooperation by the republic of the marshall islands.--
     The Government of the Republic of the Marshall Islands will 
     cooperate fully with the Comptroller General of the United 
     States in the conduct of such audits as the Comptroller 
     General determines necessary to enable the Comptroller 
     General to fully discharge his responsibilities under this 
     joint resolution.

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

       (a) Human Rights.--In approving the U.S.-FSM Compact and 
     the U.S.-RMI Compact, the Congress notes the conclusion in 
     the Statement of Intent of the Report of The Future Political 
     Status Commission of the Congress of Micronesia in July, 
     1969, that ``our recommendation of a free associated state is 
     indissolubly linked to our desire for such a democratic, 
     representative, constitutional government'' and notes that 
     such desire and intention are reaffirmed and embodied in the 
     Constitutions of the Federated States of Micronesia and the 
     Republic of the Marshall Islands. The Congress also notes and 
     specifically endorses the preamble to the U.S.-FSM Compact 
     and the U.S.-RMI Compact, which affirms that the governments 
     of the parties to the U.S.-FSM Compact and the U.S.-RMI 
     Compact are founded upon respect for human rights and 
     fundamental freedoms for all. The Secretary of State shall 
     include in the annual reports on the status of 
     internationally recognized human rights in foreign countries, 
     which are submitted to the Congress pursuant to sections 116 
     and 502B of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151n, 2304), a full and complete report regarding the status 
     of internationally recognized human rights in the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands.
       (b) Immigration and Passport Security.--
       (1) Naturalized citizens.--The rights of a bona fide 
     naturalized citizen of the Federated States of Micronesia or 
     the Republic of the Marshall Islands to enter the United 
     States, to lawfully engage therein in occupations, and to 
     establish residence therein as a nonimmigrant, to the extent 
     such rights are provided under section 141 of the U.S.-FSM 
     Compact and U.S.-RMI Compact, shall not be deemed to extend 
     to any such naturalized citizen with respect to whom 
     circumstances associated with the acquisition of the status 
     of a naturalized citizen are such as to allow a reasonable 
     inference, on the part of appropriate officials of the United 
     States and subject to United States procedural requirements, 
     that such naturalized status was acquired primarily in order 
     to obtain such rights.
       (2) Passports.--It is the intent of Congress that up to 
     $250,000 of the grant assistance provided to the Federated 
     States of Micronesia pursuant to section 211(a)(4) of the 
     U.S.-FSM Compact, and up to $250,000 of the grant assistance 
     provided to the Republic of the Marshall Islands pursuant to 
     section 211(a)(4) of the U.S.-RMI Compact (or a greater 
     amount of the section 211(a)(4) grant, if mutually agreed 
     between the Government of the United States and the 
     government of the Federated States of Micronesia or the 
     government of the Republic of the Marshall Islands), be used 
     for the purpose of increasing the machine-readability and 
     security of passports issued by such jurisdictions. It is the 
     intent of Congress that funds be obligated by September 30, 
     2004 and in the amount and manner specified by the Secretary 
     of State in consultation with the Secretary of Homeland 
     Security and, respectively, with the government of the 
     Federated States of Micronesia and the government of the 
     Republic of the Marshall Islands. The United States 
     Government is authorized to require that passports used for 
     the purpose of seeking admission under section 141 of the 
     U.S.-FSM Compact and the U.S.-RMI Compact contain appropriate 
     security enhancements.
       (3) Information-sharing.--It is the intent of Congress that 
     the governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands develop, prior to October 1, 
     2004, the capability to provide reliable and timely 
     information as may reasonably be required by the Government 
     of the United States in enforcing criminal and security-
     related grounds of inadmissibility and deportability under 
     the Immigration and Nationality Act, as amended, and shall 
     provide such information to the Government of the United 
     States.
       (4) Transition; construction of sections 141(a)(3) and 
     141(a)(4) of the u.s.-fsm compact and u.s.-rmi compact.--The 
     words ``the effective date of this Compact, as amended'' in 
     sections 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact and 
     the U.S.-RMI Compact shall be construed to read, ``on the day 
     prior to the enactment by the United States Congress of the 
     Amended Compact Act.''.
       (c) Nonalienation of Lands.--The Congress endorses and 
     encourages the maintenance of the policies of the Government 
     of the Federated States of Micronesia and the Government of 
     the Republic of the Marshall Islands to regulate, in 
     accordance with their Constitutions and laws, the alienation 
     of permanent interests in real property so as to restrict the 
     acquisition of such interests to persons of Federated States 
     of Micronesia citizenship and the Republic of the Marshall 
     Islands citizenship, respectively.
       (d) Nuclear Waste Disposal.--In approving the U.S.-FSM 
     Compact and the U.S.-RMI Compact, the Congress understands 
     that the Government of the Federated States of Micronesia and 
     the Government of the Republic of the Marshall Islands will 
     not permit any other government or any nongovernmental party 
     to conduct, in the Republic of the Marshall Islands or in the 
     Federated States of Micronesia, any of the activities 
     specified in subsection (a) of section 314 of the U.S.-FSM 
     Compact and the U.S.-RMI Compact.
       (e) Impact of Compacts on Guam, the State of Hawaii, the 
     Commonwealth of the Northern Mariana Islands, and American 
     Samoa; Related Authorization and Continuing Appropriation.--
       (1) Reconciliation of unreimbursed impact expenses.--
       (A) In general.--Notwithstanding any other provision of 
     law, the President, to address previously accrued and 
     unreimbursed impact expenses, may at the request of the 
     Governor of Guam or the Governor of the Commonwealth of the 
     Northern Mariana Islands, reduce, release, or waive all or 
     part of any amounts owed by the Government of Guam or the 
     Government of the Commonwealth of the Northern Mariana 
     Islands (or either government's autonomous agencies or 
     instrumentalities), respectively, to any department, agency, 
     independent agency, office, or instrumentality of the United 
     States.
       (B) Terms and conditions.--
       (i) Substantiation of impact costs.--Not later than 120 
     days after the date of the enactment of this resolution, the 
     Governor of Guam and the Governor of the Commonwealth of the 
     Northern Mariana Islands shall each submit to the Secretary 
     of the Interior a report, prepared in consultation with an 
     independent accounting firm, substantiating unreimbursed 
     impact expenses claimed for the period from January 14, 1986, 
     through September 30, 2003. Upon request of the Secretary of 
     the Interior, the Governor of Guam and the Governor of the 
     Commonwealth of the Northern Mariana Islands shall each 
     submit to the Secretary of the Interior copies of all 
     documents upon which the report submitted by that Governor 
     under this clause was based.
       (ii) Congressional notification.--The President shall 
     notify Congress of his intent to exercise the authority 
     granted in subparagraph (A).
       (iii) Congressional review and comment.-- Any reduction, 
     release, or waiver under this Act shall not take effect until 
     60 days after the President notifies Congress of his intent 
     to approve a request of the Governor of Guam or the Governor 
     of the Commonwealth of the Northern Mariana Islands. 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.

[[Page 25882]]

       (iv) Expiration.--The authority granted in subparagraph (A) 
     shall expire on February 28, 2005.
       (2) Statement of congressional intent.--In approving the 
     Compacts, it is not the intent of the Congress to cause any 
     adverse consequences for Guam, the State of Hawaii, the 
     Commonwealth of the Northern Mariana Islands, and American 
     Samoa.
       (3) Annual reports and recommendations.--One year after the 
     date of enactment of this joint resolution, and at one year 
     intervals thereafter, the Governors of Guam, the State of 
     Hawaii, the Commonwealth of the Northern Mariana Islands, and 
     American Samoa may provide to the Secretary of the Interior 
     by February 1 of each year their comments with respect to the 
     impacts of the Compacts on their respective jurisdiction. The 
     Secretary of the Interior, upon receipt of any such comments, 
     shall report to the Congress not later than May 1 of each 
     year to include the following:
       (A) The Governor's comments on the impacts of the Compacts 
     as well as the Administration's analysis of such impact.
       (B) Any adverse consequences resulting from the Compacts 
     and recommendations for corrective action to eliminate those 
     consequences.
       (C) Matters relating to trade, taxation, immigration, labor 
     laws, minimum wages, health, educational, social, and public 
     safety services and infrastructure, and environmental 
     regulation.
       (D) With regard to immigration, statistics concerning the 
     number of persons availing themselves of the rights described 
     in section 141(a) of the Compact during the year covered by 
     each report.
       (E) With regard to trade, the reports shall include an 
     analysis of the impact on the economy of American Samoa 
     resulting from imports of canned tuna into the United States 
     from the Federated States of Micronesia, and the Republic of 
     the Marshall Islands.
       (4) Commitment of congress to redress adverse 
     consequences.--The Congress hereby declares that, if any 
     adverse consequences to Guam, the State of Hawaii, the 
     Commonwealth of the Northern Mariana Islands, or American 
     Samoa result from implementation of the Compacts, the 
     Congress will act sympathetically and expeditiously to 
     redress those adverse consequences.
       (5) Qualified nonimmigrant.--For the purposes of this 
     section, the term ``qualified nonimmigrant'' means person 
     admitted to the United States pursuant to:
       (A) section 141 of the Compact of Free Association between 
     the United States and the Government of the Federated States 
     of Micronesia set forth in Title I;
       (B) section 141 of the Compact of Free Association between 
     the United States and the Government of the Republic of the 
     Marshall Islands set forth in Title I; or
       (C) section 141 of the Compact of Free Association between 
     the United States and the Government of the Republic of 
     Palau.
       (6) Authorization and continuing appropriation.--There are 
     hereby authorized and appropriated to the Secretary of the 
     Interior, for each fiscal year beginning after September 30, 
     2003 through 2023, $30,000,000 for grants to the governments 
     of Guam, the State of Hawaii, the Commonwealth of the 
     Northern Mariana Islands, and American Samoa as a result of 
     increased demands placed on educational, social, or public 
     safety services or infrastructure related to such services 
     due to the presence in Guam, the State of Hawaii, the 
     Commonwealth of the Northern Mariana Islands, or American 
     Samoa of qualified nonimmigrants from the Federated States of 
     Micronesia, the Republic of the Marshall Islands, or the 
     Republic of Palau.
       (A) Awarding.--The grants shall be--
       (i) awarded and administered by the Department of the 
     Interior, Office of Insular Affairs, or any successor 
     thereto, in accordance with regulations, policies and 
     procedures applicable to grants so awarded and administered; 
     and
       (ii) used only for health, educational, social, or public 
     safety services, or infrastructure related to such services, 
     specifically affected by qualified nonimmigrants.
       (B) Enumeration.--For purposes of carrying out this 
     section, the Secretary of the Interior shall provide for a 
     periodic census of qualified nonimmigrants in Guam, the State 
     of Hawaii, the Commonwealth of the Northern Mariana Islands, 
     and American Samoa. The enumeration--
       (i) shall be provided by the Secretary of the Interior 
     beginning in fiscal year 2004 and thereafter in calendar 
     years 2005, 2010, 2015, and 2020;
       (ii) shall be supervised by the United States Bureau of the 
     Census and any other supporting organization(s) as the 
     Secretary of the Interior may select; and
       (iii) after fiscal year 2003, shall be funded by the 
     Secretary of the Interior by deducting such sums as are 
     necessary from funds appropriated pursuant to the 
     authorization contained in paragraph (6) of this subsection.
       (C) Allocation.--The Secretary of the Interior shall 
     allocate to each of the governments of Guam, the State of 
     Hawaii, the Commonwealth of the Northern Mariana Islands, and 
     American Samoa, on the basis of the results of the most 
     recent enumeration, grants in an aggregate amount equal to 
     the total amount of funds appropriated under paragraph (6) of 
     this subsection, as reduced by any deductions authorized by 
     subparagraph (iii) of subparagraph (B) of paragraph (6) of 
     this subsection, multiplied by a ratio derived by dividing 
     the number of qualified nonimmigrants in such affected 
     jurisdiction by the total number of qualified nonimmigrants 
     in the governments of Guam, the Commonwealth of the Northern 
     Mariana Islands, and American Samoa.
       (7) Authorization of appropriations for grants.--There are 
     hereby authorized to the Secretary of the Interior for each 
     of fiscal years 2004 through 2023 such sums as may be 
     necessary for grants to the governments of Guam, the State of 
     Hawaii, the Commonwealth of the Northern Mariana Islands, and 
     American Samoa, as a result of increased demands placed on 
     educational, social, or public safety services or 
     infrastructure related to service due to the presence in 
     Guam, Hawaii, the Commonwealth of the Northern Mariana 
     Islands, and American Samoa of qualified nonimmigrants from 
     the Federated States of Micronesia, the Republic of the 
     Marshall Islands, and the Republic of Palau.
       (8) Authorization of appropriations for the reimbursement 
     of health care services.--
       (A) Authorization.--In addition to amounts appropriated 
     pursuant to the authorization provided in section 221(b) of 
     Article II of Title Two of the U.S.-FSM Compact and the U.S.-
     RMI Compact, there are hereby authorized to be appropriated 
     to the Secretary of the Interior such sums as may be 
     necessary to reimburse designated health care providers for 
     qualifying health care costs for medical debt referral claims 
     for health care services furnished before October 1, 2003.
       (B) Designated health care providers.--For purposes of 
     subparagraph (A), the term ``designated health care 
     provider'' means an institutional provider of health care 
     services (such as a public or private hospital) located in 
     Hawaii, Guam, the Commonwealth of the Northern Mariana 
     Islands, or American Samoa.
       (C) Qualifying health care costs.--For purposes of 
     subparagraph (A), the term ``qualifying health care costs'' 
     means costs that the Secretary determines are incurred by a 
     designated health care provider for health care services 
     furnished in Hawaii, Guam, the Commonwealth of the Northern 
     Mariana Islands, and American Samoa (as the case may be) to a 
     citizen of the Republic of the Marshall Islands, the 
     Federated States of Micronesia, or the Republic of Palau 
     pursuant to medical referral programs in the Federated States 
     of Micronesia and the Republic of the Marshall Islands.
       (9) Use of dod medical facilities and national health 
     service corps.--
       (A) DOD medical facilities.--The Secretary of Defense shall 
     make available, on a space available and reimbursable basis, 
     the medical facilities of the Department of Defense for use 
     by citizens of the Federated States of Micronesia, the 
     Republic of the Marshall Islands, and the Republic of Palau 
     who are properly referred to the facilities by government 
     authorities responsible for provision of medical services in 
     the Federated States of Micronesia, the Republic of the 
     Marshall Islands, and the Republic of Palau.
       (B) National health service corps.--The Secretary of Health 
     and Human Services shall continue to make the services of the 
     National Health Service Corps available to the residents of 
     the Federated States of Micronesia and the Republic of the 
     Marshall Islands to the same extent and for so long as such 
     services are authorized to be provided to persons residing in 
     any other areas within or outside the United States.
       (C) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this paragraph such sums as 
     are necessary for each fiscal year.
       (f) Sense of Congress Concerning Funding of Public 
     Infrastructure.--It is the sense of Congress that--
       (1) not less than 30 percent of the United States annual 
     grant assistance provided under section 211 of the Compact of 
     Free Association, as amended, between the Government of the 
     United States of America and the Government of the Federated 
     States of Micronesia, and not less than 30 percent of the 
     total amount of section 211 funds allocated to each of the 
     states of the Federated States of Micronesia, shall be 
     invested in infrastructure improvements in accordance with 
     the list of specific projects included in the plan described 
     in section 211(a)(6)(i) and for maintenance in accordance 
     with section 211(a)(6)(ii); and
       (2) not less than 30 percent of the United States annual 
     grant assistance provided under section 211 of the Compact of 
     Free Association, as amended, between the Government of the 
     United States of America and the Government of the Republic 
     of the Marshall Islands, shall be used for infrastructure 
     improvement and maintenance in accordance with section 
     211(d).
       (g) Foreign Loans.--The Congress hereby reaffirms the 
     United States position that the United States Government is 
     not responsible for foreign loans or debt obtained by the 
     Governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands.

[[Page 25883]]

       (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 submit a report to Congress 
     regarding the Federated States of Micronesia and the Republic 
     of the Marshall Islands. The report shall include, at a 
     minimum, the following with regard to:
       (A) General social, political, and economic conditions, 
     including estimates of economic growth, per capita income, 
     and migration rates.
       (B) The use and effectiveness of United States financial 
     and program assistance.
       (C) The status of economic policy reforms in the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands.
       (D) The status of the efforts by the Federated States of 
     Micronesia and the Republic of the Marshall Islands to 
     attract foreign investment and to increase indigenous 
     business activity.
       (E) Recommendations on ways to increase the effectiveness 
     of United States assistance.
       (2) Review.--During the year of the fifth and fifteenth 
     anniversaries of the date of enactment of this resolution, 
     the Government of the United States shall review the terms of 
     the respective Compacts and shall consider the overall nature 
     and development of the U.S.-FSM and U.S.-RMI relationships. 
     In these reviews, the Government of the United States shall 
     consider the operating requirements of the Government of the 
     Federated States of Micronesia and the Govermment of the 
     Republic of the Marshall Islands and their progress in 
     meeting the development objectives set forth in their 
     respective development plans. The President shall include the 
     findings resulting from the reviews, and any recommendations 
     for actions to respond to such findings, in the annual 
     reports to Congress for the years following the reviews.
       (3) By the comptroller general.--Not later than the date 
     that is 3 years after the date of enactment of this joint 
     resolution, and every 5 years thereafter, the Comptroller 
     General of the United States shall submit to Congress a 
     report on the Federated States of Micronesia and the Republic 
     of the Marshall Islands, including the topics set forth in 
     paragraph (1) and the effectiveness of administrative 
     oversight by the United States.
       (i) Construction of Section 141(f).--Section 141(f)(2) of 
     the Compact of Free Association between the Government of the 
     United States of America and the Government of the Federated 
     States of Micronesia and of the Compact of Free Association 
     between the Government of the United States of America and 
     the Government of the Republic of the Marshall Islands, shall 
     be construed as though ``, except that any such regulations 
     that would have a significant effect on the admission, stay 
     and employment privileges provided under this section shall 
     not become effective until 90 days after the date of 
     transmission of the regulations to the Committee on Energy 
     and Natural Resources and the Committee on the Judiciary of 
     the Senate and the Committee on Resources, the Committee on 
     International Relations, and the Committee on the Judiciary 
     of the House of Representatives'' was inserted after ``may by 
     regulations prescribe''.

     SEC. 105. SUPPLEMENTAL PROVISIONS.

       (a) Domestic Program Requirements.--Except as may otherwise 
     be provided in this joint resolution, all United States 
     Federal programs and services extended to or operated in the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands are and shall remain subject to all 
     applicable criteria, standards, reporting requirements, 
     auditing procedures, and other rules and regulations 
     applicable to such programs when operating in the United 
     States (including its territories and commonwealths).
       (b) Relations With the Federated States of Micronesia and 
     the Republic of the Marshall Islands.--
       (1) Appropriations made pursuant to Article I of Title Two 
     and subsection (a)(2) of section 221 of Article II of Title 
     Two of the U.S.-FSM Compact and the U.S.-RMI Compact shall be 
     made to the Secretary of the Interior, who shall have the 
     authority necessary to fulfill his responsibilities for 
     monitoring and managing the funds so appropriated consistent 
     with the U.S.-FSM Compact and the U.S.-RMI Compact, including 
     the agreements referred to in section 462(b)(4) of the U.S.-
     FSM Compact and U.S.-RMI Compact (relating to Fiscal 
     Procedures) and the agreements referred to in section 
     462(b)(5) of the U.S.-FSM Compact and the U.S.-RMI Compact 
     (regarding the Trust Fund).
       (2) Appropriations made pursuant to subsections (a)(1) and 
     (a)(3) through (6) of section 221 of Article II of Title Two 
     of the U.S.-FSM Compact and subsection (a)(1) and (a)(3) 
     through (5) of the U.S.-RMI Compact shall be made directly to 
     the agencies named in those subsections.
       (3) Appropriations for services and programs referred to in 
     subsection (b) of section 221 of Article II of Title Two of 
     the U.S.-FSM Compact or U.S.-RMI Compact and appropriations 
     for services and programs referred to in sections 105(f) and 
     108(a) of this joint resolution shall be made to the relevant 
     agencies in accordance with the terms of the appropriations 
     for such services and programs.
       (4) Federal agencies providing programs and services to the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands shall coordinate with the Secretaries of the 
     Interior and State regarding provision of such programs and 
     services. The Secretaries of the Interior and State shall 
     consult with appropriate officials of the Asian Development 
     Bank and with the Secretary of the Treasury regarding overall 
     economic conditions in the Federated States of Micronesia and 
     the Republic of the Marshall Islands and regarding the 
     activities of other donors of assistance to the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands.
       (5) United States Government employees in either the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands are subject to the authority of the United 
     States Chief of Mission, including as elaborated in section 
     207 of the Foreign Service Act and the President's Letter of 
     Instruction to the United States Chief of Mission and any 
     order or directive of the President in effect from time to 
     time.
       (6)(A) The President is hereby authorized to appoint an 
     Interagency Group on Freely Associated States' Affairs to 
     provide policy guidance and recommendations on implementation 
     of the U.S.-FSM Compact and the U.S.-RMI Compact to Federal 
     departments and agencies.
       (B) It is the sense of Congress that the Secretary of State 
     and the Secretary of the Interior should be represented on 
     the Interagency Group.
       (7)(A)(i) The three United States appointees (United States 
     chair plus two members) to the Joint Economic Management 
     Committee provided for in section 213 of the U.S.-FSM Compact 
     and Article III of the U.S.-FSM Fiscal Procedures Agreement 
     referred to in section 462(b)(4) of the U.S.-FSM Compact 
     shall be United States Government officers or employees.
       (ii) It is the sense of Congress that at least one 
     appointee each should be designated from both the Department 
     of State and the Department of the Interior.
       (iii) Section 213 of the U.S.-FSM Compact shall be 
     construed to read as though the phrase, ``and on the 
     implementation of economic policy reforms designed to 
     encourage private sector investment,'' were inserted after 
     ``with particular focus on those parts of the plan dealing 
     with the sectors identified in subsection (a) of section 
     211''.
       (B)(i) The three United States appointees (United States 
     chair plus two members) to the Joint Economic Management and 
     Financial Accountability Committee provided for in section 
     214 of the U.S.-RMI Compact and Article III of the U.S.-RMI 
     Fiscal Procedures Agreement referred to in section 462(b)(4) 
     of the U.S.-RMI Compact shall be United States Government 
     officers or employees.
       (ii) It is the sense of Congress that at least one 
     appointee each should be designated from both the Department 
     of State and the Department of the Interior.
       (iii) Section 214 of the U.S.-RMI Compact shall be 
     construed to read as though the phrase, ``and on the 
     implementation of economic policy reforms designed to 
     encourage private sector investment,'' were inserted after 
     ``with particular focus on those parts of the framework 
     dealing with the sectors and areas identified in subsection 
     (a) of section 211''.
       (8) It is the sense of Congress that the Secretary of State 
     and the Secretary of the Interior shall assure that there are 
     personnel resources committed in the appropriate numbers and 
     locations to ensure effective oversight of United States 
     financial and program assistance.
       (9) The United States voting members (United States chair 
     plus two or more members) of the Trust Fund Committee 
     appointed by the Government of the United States pursuant to 
     Article 7 of the Trust Fund Agreement implementing section 
     215 of the U.S.-FSM Compact and referred to in section 
     462(b)(5) of the U.S.-FSM Compact and any alternates 
     designated by the Government of the United States shall be 
     United States Government officers or employees. The United 
     States voting members (United States chair plus two or more 
     members) of the Trust Fund Committee appointed by the 
     Government of the United States pursuant to Article 7 of the 
     Trust Fund Agreement implementing section 216 of the U.S.-RMI 
     Compact and referred to in section 462(b)(5) of the U.S.-RMI 
     Compact and any alternates designated by the Government of 
     the United States shall be United States Government officers 
     or employees. It is the sense of Congress that at least one 
     appointee each should be designated from both the Department 
     of State and the Department of the Interior.
       (10) The Trust Fund Committee provided for in Article 7 of 
     the U.S.-FSM Trust Fund Agreement implementing section 215 of 
     the U.S.-FSM Compact shall be a non-profit corporation 
     incorporated under the laws of the District of Columbia. To 
     the extent that any law, rule, regulation or ordinance of the 
     District of Columbia, or of any State or political 
     subdivision thereof in which the Trust Fund Committee is 
     incorporated or doing business, impedes or otherwise 
     interferes with the performance of the functions of the Trust 
     Fund Committee pursuant to this joint resolution, such law, 
     rule, regulation,

[[Page 25884]]

     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) Judicial Training.--(1) In addition to amounts provided 
     under section 211(a)(4) of the U.S.-FSM Compact and the U.S.-
     RMI Compact, the President shall annually provide $200,000 to 
     the Government of the Federated States of Micronesia and 
     $100,000 to the Government of the Republic of the Marshall 
     Islands to provide training for judges and officials of the 
     judiciary.
       (2) There is hereby authorized and appropriated to the 
     Secretary of the Interior, out of any funds in the Treasury 
     not otherwise appropriated, to remain available until 
     expended, for each fiscal year from 2004 through 2023, 
     $300,000, as adjusted for inflation under section 217 of the 
     U.S.-FSM Compact and section 218 of the U.S.-RMI Compact, to 
     carry out the purposes of this section.
       (d) Continuing Trust Territory Authorization.--The 
     authorization provided by the Act of June 30, 1954, as 
     amended (68 Stat. 330) shall remain available after the 
     effective date of the Compact with respect to the Federated 
     States of Micronesia and the Republic of the Marshall Islands 
     for the following purposes:
       (1) Prior to October 1, 1986, for any purpose authorized by 
     the Compact or the joint resolution of January 14, 1986 
     (Public Law 99-239).
       (2) Transition purposes, including but not limited to, 
     completion of projects and fulfillment of commitments or 
     obligations; termination of the Trust Territory Government 
     and termination of the High Court; health and education as a 
     result of exceptional circumstances; ex gratia contributions 
     for the populations of Bikini, Enewetak, Rongelap, and Utrik; 
     and technical assistance and training in financial 
     management, program administration, and maintenance of 
     infrastructure, except that, for purposes of an orderly 
     reduction of United States programs and services in the 
     Federated States of Micronesia, the Marshall Islands, and the 
     Republic of Palau, United States programs or services not 
     specifically authorized by the Compact of Free Association or 
     by other provisions of law may continue but, unless 
     reimbursed by the respective freely associated state, not in 
     excess of the following amounts:
       (A) For fiscal year 1987, an amount not to exceed 75 per 
     centum of the total amount appropriated for such programs for 
     fiscal year 1986.
       (B) For fiscal year 1988, an amount not to exceed 50 per 
     centum of the total amount appropriated for such programs for 
     fiscal year 1986.
       (C) For fiscal year 1989, an amount not to exceed 25 per 
     centum of the total amount appropriated for such programs for 
     fiscal year 1986.
       (e) Survivability.--In furtherance of the provisions of 
     Title Four, Article V, sections 452 and 453 of the U.S.-FSM 
     Compact and the U.S.-RMI Compact, any provisions of the U.S.-
     FSM Compact or the U.S.-RMI Compact which remain effective 
     after the termination of the U.S.-FSM Compact or U.S.-RMI 
     Compact by the act of any party thereto and which are 
     affected in any manner by provisions of this title shall 
     remain subject to such provisions.
       (f) Noncompliance Sanctions; Actions Incompatible With 
     United States Authority.--The Congress expresses its 
     understanding that the Governments of the Federated States of 
     Micronesia and the Republic of the Marshall Islands will not 
     act in a manner incompatible with the authority and 
     responsibility of the United States for security and defense 
     matters in or related to the Federated States of Micronesia 
     or the Republic of the Marshall Islands pursuant to the U.S.-
     FSM Compact or the U.S.-RMI Compact, including the agreements 
     referred to in sections 462(a)(2) of the U.S.-FSM Compact and 
     462(a)(5) of the U.S.-RMI Compact. The Congress further 
     expresses its intention that any such act on the part of 
     either such Government will be viewed by the United States as 
     a material breach of the U.S.-FSM Compact or U.S.-RMI 
     Compact. The Government of the United States reserves the 
     right in the event of such a material breach of the U.S.-FSM 
     Compact by the Government of the Federated States of 
     Micronesia or the U.S.-RMI Compact by the Government of the 
     Republic of the Marshall Islands to take action, including 
     (but not limited to) the suspension in whole or in part of 
     the obligations of the Government of the United States to 
     that Government.
       (g) Continuing Programs and Laws.--
       (1) Federated states of micronesia and republic of the 
     marshall islands.--In addition to the programs and services 
     set forth in section 221 of the Compact, and pursuant to 
     section 222 of the Compact, the programs and services of the 
     following agencies shall be made available to the Federated 
     States of Micronesia and to the Republic of the Marshall 
     Islands:
       (A) The Government of the United States shall continue to 
     make available to eligible institutions in the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands, and to students enrolled in such eligible 
     institutions and in institutions in the United States and its 
     territories, for fiscal years 2004 through 2023, grants under 
     subpart 1 of part A of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a et seq.) on the same basis that such 
     grants continue to be available to institutions and students 
     in the United States.
       (B) Supplemental education grants.--
       (i) In general.--In lieu of eligibility for appropriations 
     under part A of title I of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 6311 et seq.), part B of the 
     Individuals with Disabilities Education Act (20 U.S.C. 1411 
     et seq.), title I of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801 et seq.), title II of the Workforce Investment 
     Act of 1998 (20 U.S.C. 9201 et seq.; commonly known as the 
     Adult Education and Family Literacy Act), title I of the Carl 
     D. Perkins Vocational and Technical Education Act of 1998 (20 
     U.S.C. 2321 et seq.), and the Head Start Act (42 U.S.C. 9831 
     et seq.), there are authorized to be appropriated to the 
     Secretary of Education for supplemental education grants to 
     the Federated States of Micronesia and the Republic of the 
     Marshall Islands the following amounts:

       (I) $13,994,592 for the Federated States of Micronesia for 
     fiscal year 2005 and an equivalent amount, as adjusted for 
     inflation under section 217 of the U.S.-FSM Compact, for each 
     of fiscal years 2006 through 2023.
       (II) $6,705,408 for the Republic of the Marshall Islands 
     for fiscal year 2005 and an equivalent amount, as adjusted 
     for inflation under section 218 of the U.S.-RMI Compact, for 
     each of fiscal years 2006 through 2023.

       (ii) Fiscal procedures.--Assistance pursuant to this 
     subparagraph shall be disbursed and monitored in accordance 
     with the respective Fiscal Procedures Agreement referred to 
     in section 462(b)(4) of the U.S.-FSM Compact and section 
     462(b)(4) of the U.S.-RMI Compact.
       (iii) Formula education grants.--For fiscal years 2005 
     through 2023, except as provided in clause (i), the 
     Governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands shall not receive any grant 
     under any formula-grant program administered by the Secretary 
     of Education or the Secretary of Labor, nor any grant 
     provided through the Head Start Act (42 U.S.C. 9831 et seq.) 
     administered by the Secretary of Health and Human Services.
       (iv) Transition.--For fiscal year 2004, the Governments of 
     the Federated States of Micronesia and the Republic of the 
     Marshall Islands shall continue to be eligible for 
     appropriations under the provisions of law specified in 
     clause (i) and to receive grants under the programs described 
     in clause (iii).
       (C) Competitive education grants.--The Governments of the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands shall continue to be eligible for 
     competitive grants administered by the Secretary of Education 
     to the extent that such grants continue to be available to 
     State and local governments in the United States.
       (D) The Federal Emergency Management Agency, in the 
     following manner: Paragraph (6) of section 221(a) of the 
     U.S.-FSM Compact and paragraph (5) of section 221(a) of the 
     U.S.-RMI Compact shall each be construed and applied as if 
     each provision reads as follows: ``The Department of Homeland 
     Security, Federal Emergency Management Agency disaster 
     assistance programs and public assistance programs for public 
     and private non-profit infrastructure and programs provided 
     by the United States Agency for International Development, 
     Office of Foreign Disaster Assistance, at levels equivalent 
     to those available on the day preceding the effective date of 
     the Compacts, to remain available until the later of--
       (i) the 10-year period beginning on the date of enactment 
     of the Compacts; or
       (ii) the date on which the Disaster Assistance Emergency 
     Fund referred to in section 211(d) of the U.S.-FSM Compact 
     and section 211(e) of the U.S.-RMI Compact attains a balance 
     of $4,000,000.
       (E) The Legal Services Corporation.
       (F) The Public Health Service.
       (G) The Rural Housing Service (formerly, the Farmers Home 
     Administration) in the Marshall Islands and each of the four 
     States of the Federated States of Micronesia. In lieu of 
     continuation of the program in the Federated States of 
     Micronesia, the President may agree to transfer to the 
     Government of the Federated States of Micronesia without 
     cost, the portfolio of the Rural Housing Service applicable 
     to the Federated States of Micronesia and provide such 
     technical assistance in management of the portfolio as may be 
     requested by the Federated States of Micronesia.
       (2) Tort claims.--The provisions of section 178 of the 
     U.S.-FSM Compact and the U.S.-RMI Compact regarding 
     settlement and payment of tort claims shall apply to 
     employees

[[Page 25885]]

     of any Federal agency of the Government of the United States 
     (and to any other person employed on behalf of any Federal 
     agency of the Government of the United States on the basis of 
     a contractual, cooperative, or similar agreement) which 
     provides any service or carries out any other function 
     pursuant to or in furtherance of any provisions of the U.S.-
     FSM Compact or the U.S.-RMI Compact or this joint resolution, 
     except for provisions of Title Three of the Compact and of 
     the subsidiary agreements related to such Title, in such area 
     to which such Agreement formerly applied.
       (3) PCB cleanup.--The programs and services of the 
     Environmental Protection Agency regarding PCBs shall, to the 
     extent applicable, as appropriate, and in accordance with 
     applicable law, be construed to be made available to such 
     islands.
       (h) College of Micronesia.--Until otherwise provided by Act 
     of Congress, or until termination of the U.S.-FSM Compact and 
     the U.S.-RMI Compact, the College of Micronesia shall retain 
     its status as a land-grant institution and its eligibility 
     for all benefits and programs available to such land-grant 
     institutions.
       (i) Trust Territory Debts to U.S. Federal Agencies.--
     Neither the Government of the Federated States of Micronesia 
     nor the Government of the Marshall Islands shall be required 
     to pay to any department, agency, independent agency, office, 
     or instrumentality of the United States any amounts owed to 
     such department, agency, independent agency, office, or 
     instrumentality by the Government of the Trust Territory of 
     the Pacific Islands as of the effective date of the Compact. 
     There is authorized to be appropriated such sums as may be 
     necessary to carry out the purposes of this subsection.
       (j) Technical Assistance.--Technical assistance may be 
     provided pursuant to section 224 of the U.S.-FSM Compact or 
     the U.S.-RMI Compact by Federal agencies and institutions of 
     the Government of the United States to the extent such 
     assistance may be provided to States, territories, or units 
     of local government. Such assistance by the Forest Service, 
     the Natural Resources Conservation Service, the USDA Resource 
     Conservation and Development Program, the Fish and Wildlife 
     Service, the National Marine Fisheries Service, the United 
     States Coast Guard, and the Advisory Council on Historic 
     Preservation, the Department of the Interior, and other 
     agencies providing assistance under the National Historic 
     Preservation Act (80 Stat. 915; 16 U.S.C. 470-470t), shall be 
     on a nonreimbursable basis. During the period the U.S.-FSM 
     Compact and the U.S.-RMI Compact are in effect, the grant 
     programs under the National Historic Preservation Act shall 
     continue to apply to the Federated States of Micronesia and 
     the Republic of the Marshall Islands in the same manner and 
     to the same extent as prior to the approval of the Compact. 
     Any funds provided pursuant to sections 102(a), 103(a), 
     103(b), 103(f), 103(g), 103(h), 103(j), 105(c), 105(g), 
     105(h), 105(i), 105(j), 105(k), 105(l), and 105(m) of this 
     joint resolution shall be in addition to and not charged 
     against any amounts to be paid to either the Federated States 
     of Micronesia or the Republic of the Marshall Islands 
     pursuant to the U.S.-FSM Compact, the U.S.-RMI Compact, or 
     their related subsidiary agreements.
       (k) Prior Service Benefits Program.--Notwithstanding any 
     other provision of law, persons who on January 1, 1985, were 
     eligible to receive payment under the Prior Service Benefits 
     Program established within the Social Security System of the 
     Trust Territory of the Pacific Islands because of their 
     services performed for the United States Navy or the 
     Government of the Trust Territory of the Pacific Islands 
     prior to July 1, 1968, shall continue to receive such 
     payments on and after the effective date of the Compact.
       (l) Indefinite Land Use Payments.--There are authorized to 
     be appropriated such sums as may be necessary to complete 
     repayment by the United States of any debts owed for the use 
     of various lands in the Federated States of Micronesia and 
     the Marshall Islands prior to January 1, 1985.
       (m) Communicable Disease Control Program.--There are 
     authorized to be appropriated for grants to the Government of 
     the Federated States of Micronesia and the Government of the 
     Republic of the Marshall Islands, such sums as may be 
     necessary for purposes of establishing or continuing programs 
     for the control and prevention of communicable diseases, 
     including (but not limited to) cholera and Hansen's Disease. 
     The Secretary of the Interior shall assist the Government of 
     the Federated States of Micronesia and the Government of the 
     Republic of the Marshall Islands in designing and 
     implementing such a program.
       (n) User Fees.--Any person in the Federated States of 
     Micronesia or the Republic of the Marshall Islands shall be 
     liable for user fees, if any, for services provided in the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands by the Government of the United States to 
     the same extent as any person in the United States would be 
     liable for fees, if any, for such services in the United 
     States.
       (o) Treatment of Judgments of Courts of the Federated 
     States of Micronesia, the Republic of the Marshall Islands, 
     and the Republic of Palau.--No judgment, whenever issued, of 
     a court of the Federated States of Micronesia, the Republic 
     of the Marshall Islands, or the Republic of Palau, against 
     the United States, its departments and agencies, or officials 
     of the United States or any other individuals acting on 
     behalf of the United States within the scope of their 
     official duty, shall be honored by the United States, or be 
     subject to recognition or enforcement in a court in the 
     United States, unless the judgment is consistent with the 
     interpretation by the United States of international 
     agreements relevant to the judgment. In determining the 
     consistency of a judgment with an international agreement, 
     due regard shall be given to assurances made by the Executive 
     Branch to the Congress of the United States regarding the 
     proper interpretation of the international agreement.
       (p) Inflation Adjustment.--As of Fiscal Year 2015, if 
     United States Gross Domestic Product Implicit Price Deflator 
     average for Fiscal Years 2009 through 2014 is greater than 
     the United States Gross Domestic Product Implicit Price 
     Deflator average for Fiscal Years 2004 through 2008 (as 
     reported in the Survey of Current Business or subsequent 
     publication and compiled by the Department of Interior), then 
     section 217 of the U.S.-FSM Compact and paragraph 5 of 
     Article II of the U.S.-FSM Fiscal Procedures Agreement and 
     section 218 of the U.S.-RMI Compact and paragraph 5 of 
     Article II of the U.S.-RMI Fiscal Procedures Agreement shall 
     be construed as if ``the full'' appeared in place of ``two-
     thirds of the'' each place those words appear.
       (q) Armed Services Vocational Aptitude Battery Testing.--In 
     furtherance of the provisions of Title Three, Article IV, 
     section 341 of the U.S.-FSM and the U.S.-RMI Compacts, the 
     purpose of which is to establish the privilege to volunteer 
     for service in the United States Armed Forces, it is the 
     sense of Congress that, to facilitate eligibility of 
     Federated States of Micronesia and Republic of the Marshall 
     Islands secondary school students to qualify for such 
     service, the Department of Defense may extend the Armed 
     Services Vocational Aptitude Battery (ASVAB) Student Testing 
     Program (STP) and the ASVAB Career Exploration Program to 
     selected secondary schools in the Federated States of 
     Micronesia and the Republic of the Marshall Islands to the 
     extent such programs are available to Department of Defense 
     Dependent Schools located in foreign jurisdictions.
       (r) Establishment of Trust Funds; Expedition of Process.--
     The Trust Fund Agreement executed pursuant to the U.S.-FSM 
     Compact and the Trust Fund Agreement executed pursuant to the 
     U.S.-RMI Compact each provide for the establishment of a 
     trust fund. Such trust fund may be established by (1) 
     creating a new legal entity to constitute the trust fund or 
     (2) assuming control of an existing legal entity including, 
     without limitation, a trust fund or other legal entity that 
     was established by or at the direction of the Government of 
     the United States, the Government of the Federated States of 
     Micronesia, the Government of the Republic of the Marshall 
     Islands, or otherwise, for the purpose of facilitating or 
     expediting the establishment of the trust fund pursuant to 
     the applicable Trust Fund Agreement. For the purpose of 
     expediting the commencement of operations of a trust fund 
     under either Trust Fund Agreement, such trust fund may, but 
     shall not be obligated to, assume any obligations of an 
     existing legal entity and take assignment of any contract or 
     other agreement to which such existing legal entity is party. 
     Without limiting the authority that the United States 
     Government may otherwise have under applicable law, the 
     United States Government may, but shall not be obligated to, 
     provide financial, technical, or other assistance directly or 
     indirectly to the Government of the Federated States of 
     Micronesia or the Government of the Republic of the Marshall 
     Islands for the purpose of establishing and operating trust 
     funds or other legal entities that will solicit bids from, 
     and enter into contracts with, parties willing to serve in 
     such capacities as trustee, depositary, money manager, or 
     investment advisor, with the intention that such contracts 
     will ultimately be assumed by and assigned to trust funds 
     established pursuant to a Trust Fund Agreement.

     SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.

       (a) Assistance to U.S. Firms.--In order to assist the 
     Governments of the Federated States of Micronesia and of the 
     Republic of the Marshall Islands through private sector firms 
     which may be awarded contracts for construction or major 
     repair of capital infrastructure within the Federated States 
     of Micronesia or the Republic of the Marshall Islands, the 
     United States shall consult with the Governments of the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands with respect to any such contracts, and the 
     United States shall enter into agreements with such firms 
     whereby such firms will, consistent with applicable 
     requirements of such Governments--
       (1) to the maximum extent possible, employ citizens of the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands;
       (2) to the extent that necessary skills are not possessed 
     by citizens of the Federated

[[Page 25886]]

     States of Micronesia and the Republic of the Marshall 
     Islands, provide on the job training, with particular 
     emphasis on the development of skills relating to operation 
     of machinery and routine and preventative maintenance of 
     machinery and other facilities; and
       (3) provide specific training or other assistance in order 
     to enable the Government to engage in long-term maintenance 
     of infrastructure.

     Assistance by such firms pursuant to this section may not 
     exceed 20 percent of the amount of the contract and shall be 
     made available only to such firms which meet the definition 
     of United States firm under the nationality rule for 
     suppliers of services of the Agency for International 
     Development (hereafter in this section referred to as 
     ``United States firms''). There are authorized to be 
     appropriated such sums as may be necessary for the purposes 
     of this subsection.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to cover any 
     additional costs incurred by the Government of the Federated 
     States of Micronesia or the Republic of the Marshall Islands 
     if such Governments, pursuant to an agreement entered into 
     with the United States, apply a preference on the award of 
     contracts to United States firms, provided that the amount of 
     such preference does not exceed 10 percent of the amount of 
     the lowest qualified bid from a non-United States firm for 
     such contract.

     SEC. 107. PROHIBITION.

       The provisions of chapter 11 of title 18, United States 
     Code, shall apply in full to any individual who has served as 
     the United States negotiator of amendments to the Compact or 
     its subsidiary agreements or of related agreements or who is 
     or was an officer or employee of the Office in the Department 
     of State responsible for negotiating amendments to the 
     Compact or its subsidiary agreements or who is or was 
     assigned or detailed to that Office or who served on the 
     interagency group coordinating United States policy on the 
     Compact negotiations.

     SEC. 108. COMPENSATORY ADJUSTMENTS.

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

     SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION.

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

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

       Section 605 of Public Law 107-67 (the Treasury and General 
     Government Appropriations Act, 2002; 5 U.S.C. 3101 note) is 
     amended by striking ``or the Republic of the Philippines,'' 
     in the last sentence and inserting the following: ``the 
     Republic of the Philippines, the Federated States of 
     Micronesia, the Republic of the Marshall Islands, or the 
     Republic of Palau,''.

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

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

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

                                PREAMBLE

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

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

[[Page 25887]]



                               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 in, and establish residence as 
     a nonimmigrant in the United States and its territories and 
     possessions (the ``United States'') without regard to 
     paragraph (5) or (7)(B)(i)(II) of section 212(a) of the 
     Immigration and Nationality Act, as amended, 8 U.S.C. 
     1182(a)(5) or (7)(B)(i)(II):
       (1) a person who, on November 2, 1986, was a citizen of the 
     Trust Territory of the Pacific Islands, as defined in Title 
     53 of the Trust Territory Code in force on January 1, 1979, 
     and has become and remains a citizen of the Federated States 
     of Micronesia;
       (2) a person who acquires the citizenship of the Federated 
     States of Micronesia at birth, on or after the effective date 
     of the Constitution of the Federated States of Micronesia;
       (3) an immediate relative of a person referred to in 
     paragraphs (1) or (2) of this section, provided that such 
     immediate relative is a naturalized citizen of the Federated 
     States of Micronesia who has been an actual resident there 
     for not less than five years after attaining such 
     naturalization and who holds a certificate of actual 
     residence, and further provided, that, in the case of a 
     spouse, such spouse has been married to the person referred 
     to in paragraph (1) or (2) of this section for at least five 
     years, and further provided, that the Government of the 
     United States is satisfied that such naturalized citizen 
     meets the requirement of subsection (b) of section 104 of 
     Public Law 99-239 as it was in effect on the day prior to the 
     effective date of this Compact, as amended;
       (4) a naturalized citizen of the Federated States of 
     Micronesia who was an actual resident there for not less than 
     five years after attaining such naturalization and who 
     satisfied these requirements as of April 30, 2003, who 
     continues to be an actual resident and holds a certificate of 
     actual residence, and whose name is included in a list 
     furnished by the Government of the Federated States of 
     Micronesia to the Government of the United States no later 
     than the effective date of the Compact, as amended, in form 
     and content acceptable to the Government of the United 
     States, provided, that the Government of the United States is 
     satisfied that such naturalized citizen meets the requirement 
     of subsection (b) of section 104 of Public Law 99-239 as it 
     was in effect on the day prior to the effective date of this 
     Compact, as amended; or
       (5) an immediate relative of a citizen of the Federated 
     States of Micronesia, regardless of the immediate relative's 
     country of citizenship or period of residence in the 
     Federated States of Micronesia, if the citizen of the 
     Federated States of Micronesia is serving on active duty in 
     any branch of the United States Armed Forces, or in the 
     active reserves.
       (b) Notwithstanding subsection (a) of this section, a 
     person who is coming to the United States pursuant to an 
     adoption outside the United States, or for the purpose of 
     adoption in the United States, is ineligible for admission 
     under the Compact and the Compact, as amended. This 
     subsection shall apply to any person who is or was an 
     applicant for admission to the United States on or after 
     March 1, 2003, including any applicant for admission in 
     removal proceedings (including appellate proceedings) on or 
     after March 1, 2003, regardless of the date such proceedings 
     were commenced. This subsection shall have no effect on the 
     ability of the Government of the United States or any United 
     States State or local government to commence or otherwise 
     take any action against any person or entity who has violated 
     any law relating to the adoption of any person.
       (c) Notwithstanding subsection (a) of this section, no 
     person who has been or is granted citizenship in the 
     Federated States of Micronesia, or has been or is issued a 
     Federated States of Micronesia passport pursuant to any 
     investment, passport sale, or similar program has been or 
     shall be eligible for admission to the United States under 
     the Compact or the Compact, as amended.

[[Page 25888]]

       (d) A person admitted to the United States under the 
     Compact, or the Compact, as amended, shall be considered to 
     have the permission of the Government of the United States to 
     accept employment in the United States. An unexpired 
     Federated States of Micronesia passport with unexpired 
     documentation issued by the Government of the United States 
     evidencing admission under the Compact or the Compact, as 
     amended, shall be considered to be documentation establishing 
     identity and employment authorization under section 
     274A(b)(1)(B) of the Immigration and Nationality Act, as 
     amended, 8 U.S.C. 1324a(b)(1)(B). The Government of the 
     United States will take reasonable and appropriate steps to 
     implement and publicize this provision, and the Government of 
     the Federated States of Micronesia will also take reasonable 
     and appropriate steps to publicize this provision.
       (e) For purposes of the Compact and the Compact, as 
     amended:
       (1) the term ``residence'' with respect to a person means 
     the person's principal, actual dwelling place in fact, 
     without regard to intent, as provided in section 101(a)(33) 
     of the Immigration and Nationality Act, as amended, 8 U.S.C. 
     1101(a)(33), and variations of the term ``residence,'' 
     including ``resident'' and ``reside,'' shall be similarly 
     construed;
       (2) the term ``actual residence'' means physical presence 
     in the Federated States of Micronesia during eighty-five 
     percent of the five-year period of residency required by 
     section 141(a)(3) and (4);
       (3) the term ``certificate of actual residence'' means a 
     certificate issued to a naturalized citizen by the Government 
     of the Federated States of Micronesia stating that the 
     citizen has complied with the actual residence requirement of 
     section 141(a)(3) or (4);
       (4) the term ``nonimmigrant'' means an alien who is not an 
     ``immigrant'' as defined in section 101(a)(15) of such Act, 8 
     U.S.C. 1101(a)(15); and
       (5) the term ``immediate relative'' means a spouse, or 
     unmarried son or unmarried daughter less than 21 years of 
     age.
       (f) The Immigration and Nationality Act, as amended, shall 
     apply to any person admitted or seeking admission to the 
     United States (other than a United States possession or 
     territory where such Act does not apply) under the Compact or 
     the Compact, as amended, and nothing in the Compact or the 
     Compact, as amended, shall be construed to limit, preclude, 
     or modify the applicability of, with respect to such person:
       (1) any ground of inadmissibility or deportability under 
     such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) 
     of such Act, as provided in subsection (a) of this section), 
     and any defense thereto, provided that, section 237(a)(5) of 
     such Act shall be construed and applied as if it reads as 
     follows: ``any alien who has been admitted under the Compact, 
     or the Compact, as amended, who cannot show that he or she 
     has sufficient means of support in the United States, is 
     deportable'';
       (2) the authority of the Government of the United States 
     under section 214(a)(1) of such Act to provide that admission 
     as a nonimmigrant shall be for such time and under such 
     conditions as the Government of the United States may by 
     regulations prescribe;
       (3) Except for the treatment of certain documentation for 
     purposes of section 274A(b)(1)(B) of such Act as provided by 
     subsection (d) of this section of the Compact, as amended, 
     any requirement under section 274A, including but not limited 
     to section 274A(b)(1)(E);
       (4) Section 643 of the Illegal Immigration Reform and 
     Immigrant Responsibility Act of 1996, Public Law 104-208, and 
     actions taken pursuant to section 643; and
       (5) the authority of the Government of the United States 
     otherwise to administer and enforce the Immigration and 
     Nationality Act, as amended, or other United States law.
       (g) Any authority possessed by the Government of the United 
     States under this section of the Compact or the Compact, as 
     amended, may also be exercised by the Government of a 
     territory or possession of the United States where the 
     Immigration and Nationality Act, as amended, does not apply, 
     to the extent such exercise of authority is lawful under a 
     statute or regulation of such territory or possession that is 
     authorized by the laws of the United States.
       (h) Subsection (a) of this section does not confer on a 
     citizen of the Federated States of Micronesia the right to 
     establish the residence necessary for naturalization under 
     the Immigration and Nationality Act, as amended, or to 
     petition for benefits for alien relatives under that Act. 
     Subsection (a) of this section, however, shall not prevent a 
     citizen of the Federated States of Micronesia from otherwise 
     acquiring such rights or lawful permanent resident alien 
     status in the United States.

     Section 142
       (a) Any citizen or national of the United States may be 
     admitted, to lawfully engage in occupations, and reside in 
     the Federated States of Micronesia, subject to the rights of 
     the Government of the Federated States of Micronesia to deny 
     entry to or deport any such citizen or national as an 
     undesirable alien. Any determination of inadmissibility or 
     deportability shall be based on reasonable statutory grounds 
     and shall be subject to appropriate administrative and 
     judicial review within the Federated States of Micronesia. If 
     a citizen or national of the United States is a spouse of a 
     citizen of the Federated States of Micronesia, the Government 
     of the Federated States of Micronesia shall allow the United 
     States citizen spouse to establish residence. Should the 
     Federated States of Micronesia citizen spouse predecease the 
     United States citizen spouse during the marriage, the 
     Government of the Federated States of Micronesia shall allow 
     the United States citizen spouse to continue to reside in the 
     Federated States of Micronesia.
       (b) In enacting any laws or imposing any requirements with 
     respect to citizens and nationals of the United States 
     entering the Federated States of Micronesia under subsection 
     (a) of this section, including any grounds of inadmissibility 
     or deportability, the Government of the Federated States of 
     Micronesia shall accord to such citizens and nationals of the 
     United States treatment no less favorable than that accorded 
     to citizens of other countries.
       (c) Consistent with subsection (a) of this section, with 
     respect to citizens and nationals of the United States 
     seeking to engage in employment or invest in the Federated 
     States of Micronesia, the Government of the Federated States 
     of Micronesia shall adopt immigration-related procedures no 
     less favorable than those adopted by the Government of the 
     United States with respect to citizens of the Federated 
     States of Micronesia seeking employment in the United States.

     Section 143
       Any person who relinquishes, or otherwise loses, his United 
     States nationality or citizenship, or his Federated States of 
     Micronesia citizenship, shall be ineligible to receive the 
     privileges set forth in sections 141 and 142. Any such person 
     may apply for admission to the United States or the Federated 
     States of Micronesia, as the case may be, in accordance with 
     any other applicable laws of the United States or the 
     Federated States of Micronesia relating to immigration of 
     aliens from other countries. The laws of the Federated States 
     of Micronesia or the United States, as the case may be, shall 
     dictate the terms and conditions of any such person's stay.

                               Article V

                             Representation

     Section 151
       Relations between the Government of the United States and 
     the Government of the Federated States of Micronesia shall be 
     conducted in accordance with the Vienna Convention on 
     Diplomatic Relations. In addition to diplomatic missions and 
     representation, the Governments may establish and maintain 
     other offices and designate other representatives on terms 
     and in locations as may be mutually agreed.

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

                               Article VI

                        Environmental Protection

     Section 161
       The Governments of the United States and the Federated 
     States of Micronesia declare that it is their policy to 
     promote efforts to prevent or eliminate damage to the 
     environment and biosphere and to enrich understanding of the 
     natural resources of the Federated States of Micronesia. In 
     order to carry out this policy, the Government of the United 
     States and the Government of the Federated States of 
     Micronesia agree to the following mutual and reciprocal 
     undertakings.
       (a) The Government of the United States:
       (1) shall continue to apply the environmental controls in 
     effect on November 2, 1986 to those of its continuing 
     activities subject to section 161(a)(2), unless and until 
     those controls are modified under sections 161(a)(3) and 
     161(a)(4);

[[Page 25889]]

       (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 courts of the United States, and

[[Page 25890]]

     the Government of the United States, and its agencies and 
     officials, shall be immune from the jurisdiction of the 
     courts of the Federated States of Micronesia.
       (b) The Government of the United States accepts 
     responsibility for and shall pay:
       (1) any unpaid money judgment rendered by the High Court of 
     the Trust Territory of the Pacific Islands against the 
     Government of the United States with regard to any cause of 
     action arising as a result of acts or omissions of the 
     Government of the Trust Territory of the Pacific Islands or 
     the Government of the United States prior to November 3, 
     1986;
       (2) any claim settled by the claimant and the Government of 
     the Trust Territory of the Pacific Islands but not paid as of 
     the November 3, 1986; and
       (3) settlement of any administrative claim or of any action 
     before a court of the Trust Territory of the Pacific Islands 
     or the Government of the United States, arising as a result 
     of acts or omissions of the Government of the Trust Territory 
     of the Pacific Islands or the Government of the United 
     States.
       (c) Any claim not referred to in section 174(b) and arising 
     from an act or omission of the Government of the Trust 
     Territory of the Pacific Islands or the Government of the 
     United States prior to the effective date of the Compact 
     shall be adjudicated in the same manner as a claim 
     adjudicated according to section 174(d). In any claim against 
     the Government of the Trust Territory of the Pacific Islands, 
     the Government of the United States shall stand in the place 
     of the Government of the Trust Territory of the Pacific 
     Islands. A judgment on any claim referred to in section 
     174(b) or this subsection, not otherwise satisfied by the 
     Government of the United States, may be presented for 
     certification to the United States Court of Appeals for the 
     Federal Circuit, or its successor courts, which shall have 
     jurisdiction therefore, notwithstanding the provisions of 28 
     U.S.C. 1502, and which court's decisions shall be reviewable 
     as provided by the laws of the United States. The United 
     States Court of Appeals for the Federal Circuit shall certify 
     such judgment, and order payment thereof, unless it finds, 
     after a hearing, that such judgment is manifestly erroneous 
     as to law or fact, or manifestly excessive. In either of such 
     cases the United States Court of Appeals for the Federal 
     Circuit shall have jurisdiction to modify such judgment.
       (d) The Government of the Federated States of Micronesia 
     shall not be immune from the jurisdiction of the courts of 
     the United States, and the Government of the United States 
     shall not be immune from the jurisdiction of the courts of 
     the Federated States of Micronesia in any civil case in which 
     an exception to foreign state immunity is set forth in the 
     Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.) or 
     its successor statutes.

     Section 175
       (a) A separate agreement, which shall come into effect 
     simultaneously with this Compact, as amended, and shall have 
     the force of law, shall govern mutual assistance and 
     cooperation in law enforcement matters, including the 
     pursuit, capture, imprisonment and extradition of fugitives 
     from justice and the transfer of prisoners, as well as other 
     law enforcement matters. In the United States, the laws of 
     the United States governing international extradition, 
     including 18 U.S.C. 3184, 3186 and 3188-95, shall be 
     applicable to the extradition of fugitives under the separate 
     agreement, and the laws of the United States governing the 
     transfer of prisoners, including 18 U.S.C. 4100-15, shall be 
     applicable to the transfer of prisoners under the separate 
     agreement; and
       (b) A separate agreement, which shall come into effect 
     simultaneously with this Compact, as amended, and shall have 
     the force of law, shall govern requirements relating to labor 
     recruitment practices, including registration, reporting, 
     suspension or revocation of authorization to recruit persons 
     for employment in the United States, and enforcement for 
     violations of such requirements.

     Section 176
       The Government of the Federated States of Micronesia 
     confirms that final judgments in civil cases rendered by any 
     court of the Trust Territory of the Pacific Islands shall 
     continue in full force and effect, subject to the 
     constitutional power of the courts of the Federated States of 
     Micronesia to grant relief from judgments in appropriate 
     cases.

     Section 177
       Section 177 of the Compact entered into force with respect 
     to the Federated States of Micronesia on November 3, 1986 as 
     follows:
       ``(a) The Government of the United States accepts the 
     responsibility for compensation owing to citizens of the 
     Marshall Islands, or the Federated States of Micronesia, or 
     Palau for loss or damage to property and person of the 
     citizens of the Marshall Islands, or the Federated States of 
     Micronesia, resulting from the nuclear testing program which 
     the Government of the United States conducted in the Northern 
     Marshall Islands between June 30, 1946, and August 18, 1958.
       ``(b) The Government of the United States and the 
     Government of the Marshall Islands shall set forth in a 
     separate agreement provisions for the just and adequate 
     settlement of all such claims which have arisen in regard to 
     the Marshall Islands and its citizens and which have not as 
     yet been compensated or which in the future may arise, for 
     the continued administration by the Government of the United 
     States of direct radiation related medical surveillance and 
     treatment programs and radiological monitoring activities and 
     for such additional programs and activities as may be 
     mutually agreed, and for the assumption by the Government of 
     the Marshall Islands of responsibility for enforcement of 
     limitations on the utilization of affected areas developed in 
     cooperation with the Government of the United States and for 
     the assistance by the Government of the United States in the 
     exercise of such responsibility as may be mutually agreed. 
     This separate agreement shall come into effect simultaneously 
     with this Compact and shall remain in effect in accordance 
     with its own terms.
       ``(c) The Government of the United States shall provide to 
     the Government of the Marshall Islands, on a grant basis, the 
     amount of $150 million to be paid and distributed in 
     accordance with the separate agreement referred to in this 
     Section, and shall provide the services and programs set 
     forth in this separate agreement, the language of which is 
     incorporated into this Compact.''
       The Compact, as amended, makes no changes to, and has no 
     effect upon, Section 177 of the Compact, nor does the 
     Compact, as amended, change or affect the separate agreement 
     referred to in Section 177 of the Compact including Articles 
     IX and X of that separate agreement, and measures taken by 
     the parties thereunder.

     Section 178
       (a) The Federal agencies of the Government of the United 
     States that provide the services and related programs in the 
     Federated States of Micronesia pursuant to Title Two are 
     authorized to settle and pay tort claims arising in the 
     Federated States of Micronesia from the activities of such 
     agencies or from the acts or omissions of the employees of 
     such agencies. Except as provided in section 178(b), the 
     provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply 
     exclusively to such administrative settlements and payments.
       (b) Claims under section 178(a) that cannot be settled 
     under section 178(a) shall be disposed of exclusively in 
     accordance with Article II of Title Four. Arbitration awards 
     rendered pursuant to this subsection shall be paid out of 
     funds under 31 U.S.C. 1304.
       (c) The Government of the United States and the Government 
     of the Federated States of Micronesia shall, in the separate 
     agreement referred to in section 231, provide for:
       (1) the administrative settlement of claims referred to in 
     section 178(a), including designation of local agents in each 
     State of the Federated States of Micronesia; such agents to 
     be empowered to accept, investigate and settle such claims, 
     in a timely manner, as provided in such separate agreements; 
     and
       (2) arbitration, referred to in section 178(b), in a timely 
     manner, at a site convenient to the claimant, in the event a 
     claim is not otherwise settled pursuant to section 178(a).
       (d) The provisions of section 174(d) shall not apply to 
     claims covered by this section.
       (e) Except as otherwise explicitly provided by law of the 
     United States, neither the Government of the United States, 
     its instrumentalities, nor any person acting on behalf of the 
     Government of the United States, shall be named a party in 
     any action based on, or arising out of, the activity or 
     activities of a recipient of any grant or other assistance 
     provided by the Government of the United States (or the 
     activity or activities of the recipient's agency or any other 
     person or entity acting on behalf of the recipient).

     Section 179
       (a) The courts of the Federated States of Micronesia shall 
     not exercise criminal jurisdiction over the Government of the 
     United States, or its instrumentalities.
       (b) The courts of the Federated States of Micronesia shall 
     not exercise criminal jurisdiction over any person if the 
     Government of the United States provides notification to the 
     Government of the Federated States of Micronesia that such 
     person was acting on behalf of the Government of the United 
     States, for actions taken in furtherance of section 221 or 
     224 of this amended Compact, or any other provision of law 
     authorizing financial, program, or service assistance to the 
     Federated States of Micronesia.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

     Section 211--Sector Grants
       (a) In order to assist the Government of the Federated 
     States of Micronesia in its efforts to promote the economic 
     advancement, budgetary self-reliance, and economic self-
     sufficiency of its people, and in recognition of the special 
     relationship that exists between the Federated States of 
     Micronesia and the United States, the Government of the 
     United States shall provide assistance on a sector grant 
     basis for a period of twenty years in the amounts set forth 
     in section 216, commencing on the effective date of this 
     Compact, as amended. Such grants shall be used for assistance 
     in the sectors of education, health care, private sector 
     development, the environment, public sector capacity 
     building, and public infrastructure, or for

[[Page 25891]]

     other sectors as mutually agreed, with priorities in the 
     education and health care sectors. For each year such sector 
     grant assistance is made available, the proposed division of 
     this amount among these sectors shall be certified to the 
     Government of the United States by the Government of the 
     Federated States of Micronesia and shall be subject to the 
     concurrence of the Government of the United States. In such 
     case, the Government of the United States shall disburse the 
     agreed upon amounts and monitor the use of such sector grants 
     in accordance with the provisions of this Article and the 
     Agreement Concerning Procedures for the Implementation of 
     United States Economic Assistance Provided in the Compact, as 
     Amended, of Free Association Between the Government of the 
     United States of America and the Government of the Federated 
     States of Micronesia (``Fiscal Procedures Agreement'') which 
     shall come into effect simultaneously with this Compact, as 
     amended. The provision of any United States assistance under 
     the Compact, as amended, the Fiscal Procedures Agreement, the 
     Trust Fund Agreement, or any other subsidiary agreement to 
     the Compact, as amended, shall constitute ``a particular 
     distribution . . . required by the terms or special nature of 
     the assistance'' for purposes of Article XII, section 1(b) of 
     the Constitution of the Federated States of Micronesia.
       (1) Education.--United States grant assistance shall be 
     made available in accordance with the plan described in 
     subsection (c) of this section to support and improve the 
     educational system of the Federated States of Micronesia and 
     develop the human, financial, and material resources 
     necessary for the Government of the Federated States of 
     Micronesia to perform these services. Emphasis should be 
     placed on advancing a quality basic education system.
       (2) Health.--United States grant assistance shall be made 
     available in accordance with the plan described in subsection 
     (c) of this section to support and improve the delivery of 
     preventive, curative and environmental care and develop the 
     human, financial, and material resources necessary for the 
     Government of the Federated States of Micronesia to perform 
     these services.
       (3) Private sector development.--United States grant 
     assistance shall be made available in accordance with the 
     plan described in subsection (c) of this section to support 
     the efforts of the Government of the Federated States of 
     Micronesia to attract foreign investment and increase 
     indigenous business activity by vitalizing the commercial 
     environment, ensuring fair and equitable application of the 
     law, promoting adherence to core labor standards, and 
     maintaining progress toward privatization of state-owned and 
     partially state-owned enterprises, and engaging in other 
     reforms.
       (4) Capacity building in the public sector.--United States 
     grant assistance shall be made available in accordance with 
     the plan described in subsection (c) of this section to 
     support the efforts of the Government of the Federated States 
     of Micronesia to build effective, accountable and transparent 
     national, state, and local government and other public sector 
     institutions and systems.
       (5) Environment.--United States grant assistance shall be 
     made available in accordance with the plan described in 
     subsection (c) of this section to increase environmental 
     protection; conserve and achieve sustainable use of natural 
     resources; and engage in environmental infrastructure 
     planning, design construction and operation.
       (6) Public infrastructure.--
       (i) U.S. annual grant assistance shall be made available in 
     accordance with a list of specific projects included in the 
     plan described in subsection (c) of this section to assist 
     the Government of the Federated States of Micronesia in its 
     efforts to provide adequate public infrastructure.
       (ii) Infrastructure and maintenance fund.--Five percent of 
     the annual public infrastructure grant made available under 
     paragraph (i) of this subsection shall be set aside, with an 
     equal contribution from the Government of the Federated 
     States of Micronesia, as a contribution to an Infrastructure 
     Maintenance Fund (IMF). Administration of the Infrastructure 
     Maintenance Fund shall be governed by the Fiscal Procedures 
     Agreement.
       (b) Humanitarian Assistance.--Federated States of 
     Micronesia Program. In recognition of the special development 
     needs of the Federated States of Micronesia, the Government 
     of the United States shall make available to the Government 
     of the Federated States of Micronesia, on its request and to 
     be deducted from the grant amount made available under 
     subsection (a) of this section, a Humanitarian Assistance - 
     Federated States of Micronesia (``HAFSM'') Program with 
     emphasis on health, education, and infrastructure (including 
     transportation), projects. The terms and conditions of the 
     HAFSM shall be set forth in the Agreement Regarding the 
     Military Use and Operating Rights of the Government of the 
     United States in the Government of the Federated States of 
     Micronesia Concluded Pursuant to Sections 321 and 323 of the 
     Compact of Free Association, as Amended which shall come into 
     effect simultaneously with the amendments to this Compact.
       (c) Development Plan.--The Government of the Federated 
     States of Micronesia shall prepare and maintain an official 
     overall development plan. The plan shall be strategic in 
     nature, shall be continuously reviewed and updated through 
     the annual budget process, and shall make projections on a 
     multi-year rolling basis. Each of the sectors named in 
     subsection (a) of this section, or other sectors as mutually 
     agreed, shall be accorded specific treatment in the plan. 
     Insofar as grants funds are involved, the plan shall be 
     subject to the concurrence of the Government of the United 
     States.
       (d) Disaster Assistance Emergency Fund.--An amount of two 
     hundred thousand dollars ($200,000) shall be provided 
     annually, with an equal contribution from the Government of 
     the Federated States of Micronesia, as a contribution to a 
     ``Disaster Assistance Emergency Fund (DAEF).'' Any funds from 
     the DAEF may be used only for assistance and rehabilitation 
     resulting from disasters and emergencies. The funds will be 
     accessed upon declaration by the Government of the Federated 
     States of Micronesia, with the concurrence of the United 
     States Chief of Mission to the Federated States of 
     Micronesia. The Administration of the DAEF shall be governed 
     by the Fiscal Procedures Agreement.

     Section 212--Accountability.
       (a) Regulations and policies normally applicable to United 
     States financial assistance to its state and local 
     governments, as reflected in the Fiscal Procedures Agreement, 
     shall apply to each sector grant described in section 211, 
     and to grants administered under section 221 below, except as 
     modified in the separate agreements referred to in section 
     231 of this Compact, as amended, or by United States law. The 
     Government of the United States, after annual consultations 
     with the Federated States of Micronesia, may attach 
     reasonable terms and conditions, including annual performance 
     indicators that are necessary to ensure effective use of 
     United States assistance and reasonable progress toward 
     achieving program objectives. The Government of the United 
     States may seek appropriate remedies for noncompliance with 
     the terms and conditions attached to the assistance, or for 
     failure to comply with section 234, including withholding 
     assistance.
       (b) The Government of the United States shall, for each 
     fiscal year of the twenty years during which assistance is to 
     be provided on a sector grant basis under section 211, grant 
     the Government of the Federated States of Micronesia an 
     amount equal to the lesser of (i) one half of the reasonable, 
     properly documented cost incurred during each fiscal year to 
     conduct the annual audit required under Article VIII (2) of 
     the Fiscal Procedures Agreement or (ii) $500,000. Such amount 
     will not be adjusted for inflation under section 217 or 
     otherwise.

     Section 213--Joint Economic Management Committee
       The Governments of the United States and the Federated 
     States of Micronesia shall establish a Joint Economic 
     Management Committee, composed of a U.S. chair, two other 
     members from the Government of the United States and two 
     members from the Government of the Federated States of 
     Micronesia. The Joint Economic Management Committee shall 
     meet at least once each year to review the audits and reports 
     required under this Title, evaluate the progress made by the 
     Federated States of Micronesia in meeting the objectives 
     identified in its plan described in subsection (c) of section 
     211, with particular focus on those parts of the plan dealing 
     with the sectors identified in subsection (a) of section 211, 
     identify problems encountered, and recommend ways to increase 
     the effectiveness of U.S. assistance made available under 
     this Title. The establishment and operations of the Joint 
     Economic Management Committee shall be governed by the Fiscal 
     Procedures Agreement.

     Section 214--Annual Report
       The Government of the Federated States of Micronesia shall 
     report annually to the President of the United States on the 
     use of United States sector grant assistance and other 
     assistance and progress in meeting mutually agreed program 
     and economic goals. The Joint Economic Management Committee 
     shall review and comment on the report and make appropriate 
     recommendations based thereon.

     Section 215--Trust Fund
       (a) The United States shall contribute annually for twenty 
     years from the effective date of this Compact, as amended, in 
     the amounts set forth in section 216 into a Trust Fund 
     established in accordance with the Agreement Between the 
     Government of the United States of America and the Government 
     of the Federated States of Micronesia Implementing Section 
     215 and Section 216 of the Compact, as Amended, Regarding a 
     Trust Fund (``Trust Fund Agreement''). Upon termination of 
     the annual financial assistance under section 211, the 
     proceeds of the fund shall thereafter be used for the 
     purposes described in section 211 or as otherwise mutually 
     agreed.
       (b) The United States contribution into the Trust Fund 
     described in subsection(a) of this section is conditioned on 
     the Government of the Federated States of Micronesia 
     contributing to the Trust Fund at least $30 million,

[[Page 25892]]

     prior to September 30, 2004. Any funds received by the 
     Federated States of Micronesia under section 111 (d) of 
     Public Law 99-239 (January 14, 1986), or successor 
     provisions, would be contributed to the Trust Fund as a 
     Federated States of Micronesia contribution.
       (c) The terms regarding the investment and management of 
     funds and use of the income of the Trust Fund shall be set 
     forth in the separate Trust Fund Agreement described in 
     subsection (a) of this section. Funds derived from United 
     States investment shall not be subject to Federal or state 
     taxes in the United States or the Federated States of 
     Micronesia. The Trust Fund Agreement shall also provide for 
     annual reports to the Government of the United States and to 
     the Government of the Federated States of Micronesia. The 
     Trust Fund Agreement shall provide for appropriate 
     distributions of trust fund proceeds to the Federated States 
     of Micronesia and for appropriate remedies for the failure of 
     the Federated States of Micronesia to use income of the Trust 
     Fund for the annual grant purposes set forth in section 211. 
     These remedies may include the return to the United States of 
     the present market value of its contributions to the Trust 
     Fund and the present market value of any undistributed income 
     on the contributions of the United States. If this Compact, 
     as amended, is terminated, the provisions of sections 451 
     through 453 of this Compact, as amended, shall govern 
     treatment of any U.S. contributions to the Trust Fund or 
     accrued interest thereon.
     Section 216--Sector Grant Funding and Trust Fund 
     Contributions
       The funds described in sections 211, 212(b) and 215 shall 
     be made available as follows:


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

     Section 217--Inflation Adjustment
       Except for the amounts provided for audits under section 
     212(b), the amounts stated in this Title shall be adjusted 
     for each United States Fiscal Year by the percent that equals 
     two-thirds of the percent change in the United States Gross 
     Domestic Product Implicit Price Deflator, or 5 percent, 
     whichever is less in any one year, using the beginning of 
     Fiscal Year 2004 as a base.

     Section 218--Carry-Over of Unused Funds
       If in any year the funds made available by the Government 
     of the United States for that year pursuant to this Article 
     are not completely obligated by the Government of the 
     Federated States of Micronesia, the unobligated balances 
     shall remain available in addition to the funds to be 
     provided in subsequent years.
       Article II
       Services and Program Assistance

     Section 221
       (a) Services.--The Government of the United States shall 
     make available to the Federated States of Micronesia, in 
     accordance with and to the extent provided in the Federal 
     Programs and Services Agreement referred to in section 231, 
     the services and related programs of:
       (1) the United States Weather Service;
       (2) the United States Postal Service;
       (3) the United States Federal Aviation Administration;
       (4) the United States Department of Transportation;
       (5) the Federal Deposit Insurance Corporation (for the 
     benefit only of the Bank of the Federated States of 
     Micronesia), and
       (6) the Department of Homeland Security, and the United 
     States Agency for International Development, Office of 
     Foreign Disaster Assistance.

     Upon the effective date of this Compact, as amended, the 
     United States Departments and Agencies named or having 
     responsibility to provide these services and related programs 
     shall have the authority to implement the relevant provisions 
     of the Federal Programs and Services Agreement referred to in 
     section 231.
       (b) Programs.--
       (1) With the exception of the services and programs covered 
     by subsection (a) of this section, and unless the Congress of 
     the United States provides otherwise, the Government of the 
     United States shall make available to the Federated States of 
     Micronesia the services and programs that were available to 
     the Federated States of Micronesia on the effective date of 
     this Compact, as amended, to the extent that such services 
     and programs continue to be available to State and local 
     governments of the United States. As set forth in the Fiscal 
     Procedures Agreement, funds provided under subsection (a) of 
     section 211 will be considered to be local revenues of the 
     Government of the Federated States of Micronesia when used as 
     the local share required to obtain Federal programs and 
     services.
       (2) Unless provided otherwise by U.S. law, the services and 
     programs described in paragraph (1) of this subsection shall 
     be extended in accordance with the terms of the Federal 
     Programs and Services Agreement referred to in section 231.
       (c) The Government of the United States shall have and 
     exercise such authority as is necessary to carry out its 
     responsibilities under this Title and the separate agreements 
     referred to in amended section 231, including the authority 
     to monitor and administer all service and program assistance 
     provided by the United States to the Federated States of 
     Micronesia. The Federal Programs and Services Agreement 
     referred to in amended section 231 shall also set forth the 
     extent to which services and programs shall be provided to 
     the Federated States of Micronesia.
       (d) Except as provided elsewhere in this Compact, as 
     amended, under any separate agreement entered into under this 
     Compact, as amended, or otherwise under U.S. law, all Federal 
     domestic programs extended to or operating in the Federated 
     States of Micronesia shall be subject to all applicable 
     criteria, standards, reporting requirements, auditing 
     procedures, and other rules and regulations applicable to 
     such programs and services when operating in the United 
     States.
       (e) The Government of the United States shall make 
     available to the Federated States of Micronesia alternate 
     energy development projects, studies, and conservation 
     measures to the extent provided for the Freely Associated 
     States in the laws of the United States.

     Section 222
       The Government of the United States and the Government of 
     the Federated States of Micronesia may agree from time to 
     time to extend to the Federated States of Micronesia 
     additional United States grant assistance, services and 
     programs, as provided under the laws of the United States. 
     Unless inconsistent with such laws, or otherwise specifically 
     precluded by the Government of the United States at the time 
     such additional grant assistance, services, or programs are 
     extended, the Federal Programs and Services Agreement 
     referred to section 231 shall apply to any such assistance, 
     services or programs.

     Section 223
       The Government of the Federated States of Micronesia shall 
     make available to the Government of the United States at no 
     cost such land as may be necessary for the operations of the 
     services and programs provided pursuant to this Article, and 
     such facilities as are provided by the Government of the 
     Federated States of Micronesia at no cost to the Government 
     of the United States as of the

[[Page 25893]]

     effective date of this Compact, as amended, or as may be 
     mutually agreed thereafter.

     Section 224
       The Government of the Federated States of Micronesia may 
     request, from time to time, technical assistance from the 
     Federal agencies and institutions of the Government of the 
     United States, which are authorized to grant such technical 
     assistance in accordance with its laws. If technical 
     assistance is granted pursuant to such a request, the 
     Government of the United States shall provide the technical 
     assistance in a manner which gives priority consideration to 
     the Federated States of Micronesia over other recipients not 
     a part of the United States, its territories or possessions, 
     and equivalent consideration to the Federated States of 
     Micronesia with respect to other states in Free Association 
     with the United States. Such assistance shall be made 
     available on a reimbursable or non-reimbursable basis to the 
     extent provided by United States law.

                              Article III

                       Administrative Provisions

     Section 231
       The specific nature, extent and contractual arrangements of 
     the services and programs provided for in section 221 of this 
     Compact, as amended, as well as the legal status of agencies 
     of the Government of the United States, their civilian 
     employees and contractors, and the dependents of such 
     personnel while present in the Federated States of 
     Micronesia, and other arrangements in connection with the 
     assistance, services, or programs furnished by the Government 
     of the United States, are set forth in a Federal Programs and 
     Services Agreement which shall come into effect 
     simultaneously with this Compact, as amended.

     Section 232
       The Government of the United States, in consultation with 
     the Government of the Federated States of Micronesia, shall 
     determine and implement procedures for the periodic audit of 
     all grants and other assistance made under Article I of this 
     Title and of all funds expended for the services and programs 
     provided under Article II of this Title. Further, in 
     accordance with the Fiscal Procedures Agreement described in 
     subsection (a) of section 211, the Comptroller General of the 
     United States shall have such powers and authorities as 
     described in sections 102 (c) and 110 (c) of Public Law 99-
     239, 99 Stat. 1777-78, and 99 Stat. 1799 (January 14, 1986).

     Section 233
       Approval of this Compact, as amended, by the Government of 
     the United States, in accordance with its constitutional 
     processes, shall constitute a pledge by the United States 
     that the sums and amounts specified as sector grants in 
     section 211 of this Compact, as amended, shall be 
     appropriated and paid to the Federated States of Micronesia 
     for such period as those provisions of this Compact, as 
     amended, remain in force, subject to the terms and conditions 
     of this Title and related subsidiary agreements.

     Section 234
       The Government of the Federated States of Micronesia 
     pledges to cooperate with, permit, and assist if reasonably 
     requested, designated and authorized representatives of the 
     Government of the United States charged with investigating 
     whether Compact funds, or any other assistance authorized 
     under this Compact, as amended, have, or are being, used for 
     purposes other than those set forth in this Compact, as 
     amended, or its subsidiary agreements. In carrying out this 
     investigative authority, such United States Government 
     representatives may request that the Government of the 
     Federated States of Micronesia subpoena documents and records 
     and compel testimony in accordance with the laws and 
     Constitution of the Federated States of Micronesia. Such 
     assistance by the Government of the Federated States of 
     Micronesia to the Government of the United States shall not 
     be unreasonably withheld. The obligation of the Government of 
     the Federated States of Micronesia to fulfill its pledge 
     herein is a condition to its receiving payment of such funds 
     or other assistance authorized under this Compact, as 
     amended. The Government of the United States shall pay any 
     reasonable costs for extraordinary services executed by the 
     Government of the Federated States of Micronesia in carrying 
     out the provisions of this section.

                               Article IV

                                 Trade

     Section 241
       The Federated States of Micronesia is not included in the 
     customs territory of the United States.

     Section 242
       The President shall proclaim the following tariff treatment 
     for articles imported from the Federated States of Micronesia 
     which shall apply during the period of effectiveness of this 
     title:
       (a) Unless otherwise excluded, articles imported from the 
     Federated States of Micronesia, subject to the limitations 
     imposed under section 503(b) of title V of the Trade Act of 
     1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
       (b) Only tuna in airtight containers provided for in 
     heading 1604.14.22 of the Harmonized Tariff Schedule of the 
     United States that is imported from the Federated States of 
     Micronesia and the Republic of the Marshall Islands during 
     any calendar year not to exceed 10 percent of apparent United 
     States consumption of tuna in airtight containers during the 
     immediately preceding calendar year, as reported by the 
     National Marine Fisheries Service, shall be exempt from duty; 
     but the quantity of tuna given duty-free treatment under this 
     paragraph for any calendar year shall be counted against the 
     aggregated quantity of tuna in airtight containers that is 
     dutiable under rate column numbered 1 of such heading 
     1604.14.22 for that calendar year.
       (c) The duty-free treatment provided under subsection (a) 
     shall not apply to--
       (1) watches, clocks, and timing apparatus provided for in 
     Chapter 91, excluding heading 9113, of the Harmonized Tariff 
     Schedule of the United States;
       (2) buttons (whether finished or not finished) provided for 
     in items 9606.21.40 and 9606.29.20 of such Schedule;
       (3) textile and apparel articles which are subject to 
     textile agreements; and
       (4) footwear, handbags, luggage, flat goods, work gloves, 
     and leather wearing apparel which were not eligible articles 
     for purposes of title V of the Trade Act of 1974 (19 U.S.C. 
     2461, et seq.) on April 1, 1984.
       (d) If the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to an eligible article which is a product of the 
     Federated States of Micronesia, an amount not to exceed 15 
     percent of the appraised value of the article at the time it 
     is entered that is attributable to such United States cost or 
     value may be applied for duty assessment purposes toward 
     determining the percentage referred to in section 503(a)(2) 
     of title V of the Trade Act of 1974.

     Section 243
       Articles imported from the Federated States of Micronesia 
     which are not exempt from duty under subsections (a), (b), 
     (c), and (d) of section 242 shall be subject to the rates of 
     duty set forth in column numbered 1-general of the Harmonized 
     Tariff Schedule of the United States (HTSUS).

     Section 244
       (a) All products of the United States imported into the 
     Federated States of Micronesia shall receive treatment no 
     less favorable than that accorded like products of any 
     foreign country with respect to customs duties or charges of 
     a similar nature and with respect to laws and regulations 
     relating to importation, exportation, taxation, sale, 
     distribution, storage or use.
       (b) The provisions of subsection (a) shall not apply to 
     advantages accorded by the Federated States of Micronesia by 
     virtue of their full membership in the Pacific Island 
     Countries Trade Agreement (PICTA), done on August 18, 2001, 
     to those governments listed in Article 26 of PICTA, as of the 
     date the Compact, as amended, is signed.
       (c) Prior to entering into consultations on, or concluding, 
     a free trade agreement with governments not listed in Article 
     26 of PICTA, the Federated States of Micronesia shall consult 
     with the United States regarding whether or how subsection 
     (a) of section 244 shall be applied.

                               Article V

                          Finance and Taxation

     Section 251
       The currency of the United States is the official 
     circulating legal tender of the Federated States of 
     Micronesia. Should the Government of the Federated States of 
     Micronesia act to institute another currency, the terms of an 
     appropriate currency transitional period shall be as agreed 
     with the Government of the United States.

     Section 252
       The Government of the Federated States of Micronesia may, 
     with respect to United States persons, tax income derived 
     from sources within its respective jurisdiction, property 
     situated therein, including transfers of such property by 
     gift or at death, and products consumed therein, in such 
     manner as the Government of the Federated States of 
     Micronesia deems appropriate. The determination of the source 
     of any income, or the situs of any property, shall for 
     purposes of this Compact be made according to the United 
     States Internal Revenue Code.

     Section 253
       A citizen of the Federated States of Micronesia, domiciled 
     therein, shall be exempt from estate, gift, and generation-
     skipping transfer taxes imposed by the Government of the 
     United States, provided that such citizen of the Federated 
     States of Micronesia is neither a citizen nor a resident of 
     the United States.

     Section 254
       (a) In determining any income tax imposed by the Government 
     of the Federated States of Micronesia, the Government of the 
     Federated States of Micronesia shall have authority to impose 
     tax upon income derived by a resident of the Federated States 
     of Micronesia from sources without the Federated States of 
     Micronesia, in the same manner and to the same extent as the 
     Government of the Federated States of Micronesia imposes tax 
     upon income derived from within its own jurisdiction. If the 
     Government of the Federated States of Micronesia exercises 
     such authority as provided in this subsection, any individual 
     resident of the Federated States

[[Page 25894]]

     of Micronesia who is subject to tax by the Government of the 
     United States on income which is also taxed by the Government 
     of the Federated States of Micronesia shall be relieved of 
     liability to the Government of the United States for the tax 
     which, but for this subsection, would otherwise be imposed by 
     the Government of the United States on such income. However, 
     the relief from liability to the United States Government 
     referred to in the preceding sentence means only relief in 
     the form of the foreign tax credit (or deduction in lieu 
     thereof) available with respect to the income taxes of a 
     possession of the United States, and relief in the form of 
     the exclusion under section 911 of the Internal Revenue Code 
     of 1986. For purposes of this section, the term ``resident of 
     the Federated States of Micronesia'' shall be deemed to 
     include any person who was physically present in the 
     Federated States of Micronesia for a period of 183 or more 
     days during any taxable year.
       (b) If the Government of the Federated States of Micronesia 
     subjects income to taxation substantially similar to that 
     imposed by the Trust Territory Code in effect on January 1, 
     1980, such Government shall be deemed to have exercised the 
     authority described in section 254(a).

     Section 255
       For purposes of section 274(h)(3)(A) of the United States 
     Internal Revenue Code of 1986, the term ``North American 
     Area'' shall include the Federated States of Micronesia.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

     Section 311
       (a) The Government of the United States has full authority 
     and responsibility for security and defense matters in or 
     relating to the Federated States of Micronesia.
       (b) This authority and responsibility includes:
       (1) the obligation to defend the Federated States of 
     Micronesia and its people from attack or threats thereof as 
     the United States and its citizens are defended;
       (2) the option to foreclose access to or use of the 
     Federated States of Micronesia by military personnel or for 
     the military purposes of any third country; and
       (3) the option to establish and use military areas and 
     facilities in the Federated States of Micronesia, subject to 
     the terms of the separate agreements referred to in sections 
     321 and 323.
       (c) The Government of the United States confirms that it 
     shall act in accordance with the principles of international 
     law and the Charter of the United Nations in the exercise of 
     this authority and responsibility.

     Section 312
       Subject to the terms of any agreements negotiated in 
     accordance with sections 321 and 323, the Government of the 
     United States may conduct within the lands, waters and 
     airspace of the Federated States of Micronesia the activities 
     and operations necessary for the exercise of its authority 
     and responsibility under this Title.

     Section 313
       (a) The Government of the Federated States of Micronesia 
     shall refrain from actions that the Government of the United 
     States determines, after appropriate consultation with that 
     Government, to be incompatible with its authority and 
     responsibility for security and defense matters in or 
     relating to the Federated States of Micronesia.
       (b) The consultations referred to in this section shall be 
     conducted expeditiously at senior levels of the two 
     Governments, and the subsequent determination by the 
     Government of the United States referred to in this section 
     shall be made only at senior interagency levels of the 
     Government of the United States.
       (c) The Government of the Federated States of Micronesia 
     shall be afforded, on an expeditious basis, an opportunity to 
     raise its concerns with the United States Secretary of State 
     personally and the United States Secretary of Defense 
     personally regarding any determination made in accordance 
     with this section.

     Section 314
       (a) Unless otherwise agreed, the Government of the United 
     States shall not, in the Federated States of Micronesia:
       (1) test by detonation or dispose of any nuclear weapon, 
     nor test, dispose of, or discharge any toxic chemical or 
     biological weapon; or
       (2) test, dispose of, or discharge any other radioactive, 
     toxic chemical or biological materials in an amount or manner 
     which would be hazardous to public health or safety.
       (b) Unless otherwise agreed, other than for transit or 
     overflight purposes or during time of a national emergency 
     declared by the President of the United States, a state of 
     war declared by the Congress of the United States or as 
     necessary to defend against an actual or impending armed 
     attack on the United States, the Federated States of 
     Micronesia or the Republic of the Marshall Islands, the 
     Government of the United States shall not store in the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands any toxic chemical weapon, nor any 
     radioactive materials nor any toxic chemical materials 
     intended for weapons use.
       (c) Radioactive, toxic chemical, or biological materials 
     not intended for weapons use shall not be affected by section 
     314(b).
       (d) No material or substance referred to in this section 
     shall be stored in the Federated States of Micronesia except 
     in an amount and manner which would not be hazardous to 
     public health or safety. In determining what shall be an 
     amount or manner which would be hazardous to public health or 
     safety under this section, the Government of the United 
     States shall comply with any applicable mutual agreement, 
     international guidelines accepted by the Government of the 
     United States, and the laws of the United States and their 
     implementing regulations.
       (e) Any exercise of the exemption authority set forth in 
     section 161(e) shall have no effect on the obligations of the 
     Government of the United States under this section or on the 
     application of this subsection.
       (f) The provisions of this section shall apply in the areas 
     in which the Government of the Federated States of Micronesia 
     exercises jurisdiction over the living resources of the 
     seabed, subsoil or water column adjacent to its coasts.

     Section 315
       The Government of the United States may invite members of 
     the armed forces of other countries to use military areas and 
     facilities in the Federated States of Micronesia, in 
     conjunction with and under the control of United States Armed 
     Forces. Use by units of the armed forces of other countries 
     of such military areas and facilities, other than for transit 
     and overflight purposes, shall be subject to consultation 
     with and, in the case of major units, approval of the 
     Government of the Federated States of Micronesia.

     Section 316
       The authority and responsibility of the Government of the 
     United States under this Title may not be transferred or 
     otherwise assigned.

                               Article II

                Defense Facilities and Operating Rights

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

     Section 322
       The Government of the United States shall provide and 
     maintain fixed and floating aids to navigation in the 
     Federated States of Micronesia at least to the extent 
     necessary for the exercise of its authority and 
     responsibility under this Title.

     Section 323
       The military operating rights of the Government of the 
     United States and the legal status and contractual 
     arrangements of the United States Armed Forces, their 
     members, and associated civilians, while present in the 
     Federated States of Micronesia are set forth in separate 
     agreements, which shall remain in effect in accordance with 
     the terms of such agreements.

                              Article III

         Defense Treaties and International Security Agreements

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

[[Page 25895]]

     by appropriate consultation with the Government of the 
     Federated States of Micronesia.

                               Article IV

              Service in Armed Forces of the United States

     Section 341
       Any person entitled to the privileges set forth in Section 
     141 (with the exception of any person described in section 
     141(a)(5) who is not a citizen of the Federated States of 
     Micronesia) shall be eligible to volunteer for service in the 
     Armed Forces of the United States, but shall not be subject 
     to involuntary induction into military service of the United 
     States as long as such person has resided in the United 
     States for a period of less than one year, provided that no 
     time shall count towards this one year while a person 
     admitted to the United States under the Compact, or the 
     Compact, as amended, is engaged in full-time study in the 
     United States. Any person described in section 141(a)(5) who 
     is not a citizen of the Federated States of Micronesia shall 
     be subject to United States laws relating to selective 
     service.

     Section 342
       The Government of the United States shall have enrolled, at 
     any one time, at least one qualified student from the 
     Federated States of Micronesia, as may be nominated by the 
     Government of the Federated States of Micronesia, in each of:
       (a) The United States Coast Guard Academy pursuant to 14 
     U.S.C. 195.
       (b) The United States Merchant Marine Academy pursuant to 
     46 U.S.C. 1295(b)(6), provided that the provisions of 46 
     U.S.C. 1295b(b)(6)(C) shall not apply to the enrollment of 
     students pursuant to section 342(b) of this Compact, as 
     amended.

                               Article V

                           General Provisions

     Section 351
       (a) The Government of the United States and the Government 
     of the Federated States of Micronesia shall continue to 
     maintain a Joint Committee empowered to consider disputes 
     arising under the implementation of this Title and its 
     related agreements.
       (b) The membership of the Joint Committee shall comprise 
     selected senior officials of the two Governments. The senior 
     United States military commander in the Pacific area shall be 
     the senior United States member of the Joint Committee. For 
     the meetings of the Joint Committee, each of the two 
     Governments may designate additional or alternate 
     representatives as appropriate for the subject matter under 
     consideration.
       (c) Unless otherwise mutually agreed, the Joint Committee 
     shall meet annually at a time and place to be designated, 
     after appropriate consultation, by the Government of the 
     United States. The Joint Committee also shall meet promptly 
     upon request of either of its members. The Joint Committee 
     shall follow such procedures, including the establishment of 
     functional subcommittees, as the members may from time to 
     time agree. Upon notification by the Government of the United 
     States, the Joint Committee of the United States and the 
     Federated States of Micronesia shall meet promptly in a 
     combined session with the Joint Committee established and 
     maintained by the Government of the United States and the 
     Republic of the Marshall Islands to consider matters within 
     the jurisdiction of the two Joint Committees.
       (d) Unresolved issues in the Joint Committee shall be 
     referred to the Governments for resolution, and the 
     Government of the Federated States of Micronesia shall be 
     afforded, on an expeditious basis, an opportunity to raise 
     its concerns with the United States Secretary of Defense 
     personally regarding any unresolved issue which threatens its 
     continued association with the Government of the United 
     States.

     Section 352
       In the exercise of its authority and responsibility under 
     Title Three, the Government of the United States shall accord 
     due respect to the authority and responsibility of the 
     Government of the Federated States of Micronesia under Titles 
     One, Two and Four and to the responsibility of the Government 
     of the Federated States of Micronesia to assure the well-
     being of its people.

     Section 353
       (a) The Government of the United States shall not include 
     the Government of the Federated States of Micronesia as a 
     named party to a formal declaration of war, without that 
     Government's consent.
       (b) Absent such consent, this Compact, as amended, is 
     without prejudice, on the ground of belligerence or the 
     existence of a state of war, to any claims for damages which 
     are advanced by the citizens, nationals or Government of the 
     Federated States of Micronesia, which arise out of armed 
     conflict subsequent to November 3, 1986, and which are:
       (1) petitions to the Government of the United States for 
     redress; or
       (2) claims in any manner against the government, citizens, 
     nationals or entities of any third country.
       (c) Petitions under section 353(b)(1) shall be treated as 
     if they were made by citizens of the United States.

     Section 354
       (a) The Government of the United States and the Government 
     of the Federated States of Micronesia are jointly committed 
     to continue their security and defense relations, as set 
     forth in this Title. Accordingly, it is the intention of the 
     two countries that the provisions of this Title shall remain 
     binding as long as this Compact, as amended, remains in 
     effect, and thereafter as mutually agreed, unless earlier 
     terminated by mutual agreement pursuant to section 441, or 
     amended pursuant to Article III of Title Four. If at any time 
     the Government of the United States, or the Government of the 
     Federated States of Micronesia, acting unilaterally, 
     terminates this Title, such unilateral termination shall be 
     considered to be termination of the entire Compact, in which 
     case the provisions of section 442 and 452 (in the case of 
     termination by the Government of the United States) or 
     sections 443 and 453 (in the case of termination by the 
     Government of the Federated States of Micronesia), with the 
     exception of paragraph (3) of subsection (a) of section 452 
     or paragraph (3) of subsection (a) of section 453, as the 
     case may be, shall apply.
       (b) The Government of the United States recognizes, in view 
     of the special relationship between the Government of the 
     United States and the Government of the Federated States of 
     Micronesia, and in view of the existence of the separate 
     agreement regarding mutual security concluded with the 
     Government of the Federated States of Micronesia pursuant to 
     sections 321 and 323, that, even if this Title should 
     terminate, any attack on the Federated States of Micronesia 
     during the period in which such separate agreement is in 
     effect, would constitute a threat to the peace and security 
     of the entire region and a danger to the United States. In 
     the event of such an attack, the Government of the United 
     States would take action to meet the danger to the United 
     States and to the Federated States of Micronesia in 
     accordance with its constitutional processes.
       (c) As reflected in Article 21(1)(b) of the Trust Fund 
     Agreement, the Government of the United States and the 
     Government of the Federated States of Micronesia further 
     recognize, in view of the special relationship between their 
     countries, that even if this Title should terminate, the 
     Government of the Federated States of Micronesia shall 
     refrain from actions which the Government of the United 
     States determines, after appropriate consultation with that 
     Government, to be incompatible with its authority and 
     responsibility for security and defense matters in or 
     relating to the Federated States of Micronesia or the 
     Republic of the Marshall Islands.

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

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

                               Article II

                   Conference and Dispute Resolution

     Section 421
       The Government of the United States shall confer promptly 
     at the request of the Government of the Federated States of 
     Micronesia and that Government shall confer promptly at the 
     request of the Government of the United States on matters 
     relating to the provisions of this Compact, as amended, or of 
     its related agreements.

     Section 422
       In the event the Government of the United States or the 
     Government of the Federated States of Micronesia, after 
     conferring pursuant to section 421, determines that there is 
     a dispute and gives written notice thereof, the two 
     Governments shall make a good faith effort to resolve the 
     dispute between themselves.

     Section 423
       If a dispute between the Government of the United States 
     and the Government of the Federated States of Micronesia 
     cannot be resolved within 90 days of written notification in 
     the manner provided in section 422, either party to the 
     dispute may refer it to arbitration in accordance with 
     section 424.

     Section 424
       Should a dispute be referred to arbitration as provided for 
     in section 423, an Arbitration Board shall be established for 
     the purpose of hearing the dispute and rendering a decision 
     which shall be binding upon the two parties to the dispute 
     unless the two parties mutually agree that the decision shall 
     be advisory. Arbitration shall occur according to the 
     following terms:
       (a) An Arbitration Board shall consist of a Chairman and 
     two other members, each of whom shall be a citizen of a party 
     to the dispute. Each of the two Governments which is a party 
     to the dispute shall appoint one

[[Page 25896]]

     member to the Arbitration Board. If either party to the 
     dispute does not fulfill the appointment requirements of this 
     section within 30 days of referral of the dispute to 
     arbitration pursuant to section 423, its member on the 
     Arbitration Board shall be selected from its own standing 
     list by the other party to the dispute. Each Government shall 
     maintain a standing list of 10 candidates. The parties to the 
     dispute shall jointly appoint a Chairman within 15 days after 
     selection of the other members of the Arbitration Board. 
     Failing agreement on a Chairman, the Chairman shall be chosen 
     by lot from the standing lists of the parties to the dispute 
     within 5 days after such failure.
       (b) Unless otherwise provided in this Compact, as amended, 
     or its related agreements, the Arbitration Board shall have 
     jurisdiction to hear and render its final determination on 
     all disputes arising exclusively under Articles I, II, III, 
     IV and V of Title One, Title Two, Title Four, and their 
     related agreements.
       (c) Each member of the Arbitration Board shall have one 
     vote. Each decision of the Arbitration Board shall be reached 
     by majority vote.
       (d) In determining any legal issue, the Arbitration Board 
     may have reference to international law and, in such 
     reference, shall apply as guidelines the provisions set forth 
     in Article 38 of the Statute of the International Court of 
     Justice.
       (e) The Arbitration Board shall adopt such rules for its 
     proceedings as it may deem appropriate and necessary, but 
     such rules shall not contravene the provisions of this 
     Compact, as amended. Unless the parties provide otherwise by 
     mutual agreement, the Arbitration Board shall endeavor to 
     render its decision within 30 days after the conclusion of 
     arguments. The Arbitration Board shall make findings of fact 
     and conclusions of law and its members may issue dissenting 
     or individual opinions. Except as may be otherwise decided by 
     the Arbitration Board, one-half of all costs of the 
     arbitration shall be borne by the Government of the United 
     States and the remainder shall be borne by the Government of 
     the Federated States of Micronesia.

                              Article III

                               Amendment

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

                               Article IV

                              Termination

     Section 441
       This Compact, as amended, may be terminated by mutual 
     agreement of the Government of the Federated States of 
     Micronesia and the Government of the United States, in 
     accordance with their respective constitutional processes. 
     Such mutual termination of this Compact, as amended, shall be 
     without prejudice to the continued application of section 451 
     of this Compact, as amended, and the provisions of the 
     Compact, as amended, set forth therein.

     Section 442
       Subject to section 452, this Compact, as amended, may be 
     terminated by the Government of the United States in 
     accordance with its constitutional processes. Such 
     termination shall be effective on the date specified in the 
     notice of termination by the Government of the United States 
     but not earlier than six months following delivery of such 
     notice. The time specified in the notice of termination may 
     be extended. Such termination of this Compact, as amended, 
     shall be without prejudice to the continued application of 
     section 452 of this Compact, as amended, and the provisions 
     of the Compact, as amended, set forth therein.

     Section 443
       This Compact, as amended, shall be terminated by the 
     Government of the Federated States of Micronesia, pursuant to 
     its constitutional processes, subject to section 453 if the 
     people represented by that Government vote in a plebiscite to 
     terminate the Compact, as amended, or by another process 
     permitted by the FSM constitution and mutually agreed between 
     the Governments of the United States and the Federated States 
     of Micronesia. The Government of the Federated States of 
     Micronesia shall notify the Government of the United States 
     of its intention to call such a plebiscite, or to pursue 
     another mutually agreed and constitutional process, which 
     plebiscite or process shall take place not earlier than three 
     months after delivery of such notice. The plebiscite or other 
     process shall be administered by the Government of the 
     Federated States of Micronesia in accordance with its 
     constitutional and legislative processes. If a majority of 
     the valid ballots cast in the plebiscite or other process 
     favors termination, the Government of the Federated States of 
     Micronesia shall, upon certification of the results of the 
     plebiscite or other process, give notice of termination to 
     the Government of the United States, such termination to be 
     effective on the date specified in such notice but not 
     earlier than three months following the date of delivery of 
     such notice. The time specified in the notice of termination 
     may be extended.

                               Article V

                             Survivability

     Section 451
       (a) Should termination occur pursuant to section 441, 
     economic and other assistance by the Government of the United 
     States shall continue only if and as mutually agreed by the 
     Governments of the United States and the Federated States of 
     Micronesia, and in accordance with the parties' respective 
     constitutional processes.
       (b) In view of the special relationship of the United 
     States and the Federated States of Micronesia, as reflected 
     in subsections (b) and (c) of section 354 of this Compact, as 
     amended, and the separate agreement entered into consistent 
     with those subsections, if termination occurs pursuant to 
     section 441 prior to the twentieth anniversary of the 
     effective date of this Compact, as amended, the United States 
     shall continue to make contributions to the Trust Fund 
     described in section 215 of this Compact, as amended.
       (c) In view of the special relationship of the United 
     States and the Federated States of Micronesia described in 
     subsection (b) of this section, if termination occurs 
     pursuant to section 441 following the twentieth anniversary 
     of the effective date of this Compact, as amended, the 
     Federated States of Micronesia shall be entitled to receive 
     proceeds from the Trust Fund described in section 215 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement governing the 
     distribution of such proceeds.

     Section 452
       (a) Should termination occur pursuant to section 442 prior 
     to the twentieth anniversary of the effective date of this 
     Compact, as amended, the following provisions of this 
     Compact, as amended, shall remain in full force and effect 
     until the twentieth anniversary of the effective date of this 
     Compact, as amended, and thereafter as mutually agreed:
       (1) Article VI and sections 172, 173, 176 and 177 of Title 
     One;
       (2) Sections 232 and 234 of Title Two;
       (3) Title Three; and
       (4) Articles II, III, V and VI of Title Four.
       (b) Should termination occur pursuant to section 442 before 
     the twentieth anniversary of the effective date of the 
     Compact, as amended:
       (1) Except as provided in paragraph (2) of this subsection 
     and subsection (c) of this section, economic and other 
     assistance by the United States shall continue only if and as 
     mutually agreed by the Governments of the United States and 
     the Federated States of Micronesia.
       (2) In view of the special relationship of the United 
     States and the Federated States of Micronesia, as reflected 
     in subsections (b) and (c) of section 354 of this Compact, as 
     amended, and the separate agreement regarding mutual 
     security, and the Trust Fund Agreement, the United States 
     shall continue to make contributions to the Trust Fund 
     described in section 215 of this Compact, as amended, in the 
     manner described in the Trust Fund Agreement.
       (c) In view of the special relationship of the United 
     States and the Federated States of Micronesia, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and the 
     Trust Fund Agreement, if termination occurs pursuant to 
     section 442 following the twentieth anniversary of the 
     effective date of this Compact, as amended, the Federated 
     States of Micronesia shall continue to be eligible to receive 
     proceeds from the Trust Fund described in section 215 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement.

     Section 453
       (a) Should termination occur pursuant to section 443 prior 
     to the twentieth anniversary of the effective date of this 
     Compact, as amended, the following provisions of this 
     Compact, as amended, shall remain in full force and effect 
     until the twentieth anniversary of the effective date of this 
     Compact, as amended, and thereafter as mutually agreed:
       (1) Article VI and sections 172, 173, 176 and 177 of Title 
     One;
       (2) Sections 232 and 234 of Title Two;
       (3) Title Three; and
       (4) Articles II, III, V and VI of Title Four.
       (b) Upon receipt of notice of termination pursuant to 
     section 443, the Government of the United States and the 
     Government of the Federated States of Micronesia shall 
     promptly consult with regard to their future relationship. 
     Except as provided in subsection (c) and (d) of this section, 
     these consultations shall determine the level of economic and 
     other assistance, if any, which the Government of the United 
     States shall provide to the Government of the Federated 
     States of Micronesia for the period ending on the twentieth 
     anniversary of the effective date of this Compact, as 
     amended, and for any period thereafter, if mutually agreed.
       (c) In view of the special relationship of the United 
     States and the Federated States of Micronesia, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and the 
     Trust Fund Agreement, if termination occurs pursuant to 
     section 443 prior to the twentieth anniversary of

[[Page 25897]]

     the effective date of this Compact, as amended, the United 
     States shall continue to make contributions to the Trust Fund 
     described in section 215 of this Compact, as amended, in the 
     manner described in the Trust Fund Agreement.
       (d) In view of the special relationship of the United 
     States and the Federated States of Micronesia, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and the 
     Trust Fund Agreement, if termination occurs pursuant to 
     section 443 following the twentieth anniversary of the 
     effective date of this Compact, as amended, the Federated 
     States of Micronesia shall continue to be eligible to receive 
     proceeds from the Trust Fund described in section 215 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement.

     Section 454
       Notwithstanding any other provision of this Compact, as 
     amended:
       (a) The Government of the United States reaffirms its 
     continuing interest in promoting the economic advancement and 
     budgetary self-reliance of the people of the Federated States 
     of Micronesia.
       (b) The separate agreements referred to in Article II of 
     Title Three shall remain in effect in accordance with their 
     terms.

                               Article VI

                          Definition of Terms

     Section 461
       For the purpose of this Compact, as amended, only, and 
     without prejudice to the views of the Government of the 
     United States or the Government of the Federated States of 
     Micronesia as to the nature and extent of the jurisdiction of 
     either of them under international law, the following terms 
     shall have the following meanings:
       (a) ``Trust Territory of the Pacific Islands'' means the 
     area established in the Trusteeship Agreement consisting of 
     the former administrative districts of Kosrae, Yap, Ponape, 
     the Marshall Islands and Truk as described in Title One, 
     Trust Territory Code, section 1, in force on January 1, 1979. 
     This term does not include the area of Palau or the Northern 
     Mariana Islands.
       (b) ``Trusteeship Agreement'' means the agreement setting 
     forth the terms of trusteeship for the Trust Territory of the 
     Pacific Islands, approved by the Security Council of the 
     United Nations April 2, 1947, and by the United States July 
     18, 1947, entered into force July 18, 1947, 61 Stat. 3301, 
     T.I.A.S. 1665, 8 U.N.T.S. 189.
        (c) ``The Federated States of Micronesia'' and ``the 
     Republic of the Marshall Islands'' are used in a geographic 
     sense and include the land and water areas to the outer 
     limits of the territorial sea and the air space above such 
     areas as now or hereafter recognized by the Government of the 
     United States.
       (d) ``Compact'' means the Compact of Free Association 
     Between the United States and the Federated States of 
     Micronesia and the Marshall Islands, that was approved by the 
     United States Congress in section 201 of Public Law 99-239 
     (Jan. 14, 1986) and went into effect with respect to the 
     Federated States of Micronesia on November 3, 1986.
       (e) ``Compact, as amended'' means the Compact of Free 
     Association Between the United States and the Federated 
     States of Micronesia, as amended. The effective date of the 
     Compact, as amended, shall be on a date to be determined by 
     the President of the United States, and agreed to by the 
     Government of the Federated States of Micronesia, following 
     formal approval of the Compact, as amended, in accordance 
     with section 411 of this Compact, as amended.
       (f) ``Government of the Federated States of Micronesia'' 
     means the Government established and organized by the 
     Constitution of the Federated States of Micronesia including 
     all the political subdivisions and entities comprising that 
     Government.
       (g) ``Government of the Republic of the Marshall Islands'' 
     means the Government established and organized by the 
     Constitution of the Republic of the Marshall Islands 
     including all the political subdivisions and entities 
     comprising that Government.
       (h) The following terms shall be defined consistent with 
     the 1998 Edition of the Radio Regulations of the 
     International Telecommunications Union as follows:
       (1) ``Radiocommunication'' means telecommunication by means 
     of radio waves.
       (2) ``Station'' means one or more transmitters or receivers 
     or a combination of transmitters and receivers, including the 
     accessory equipment, necessary at one location for carrying 
     on a radiocommunication service, or the radio astronomy 
     service.
       (3) ``Broadcasting Service'' means a radiocommunication 
     service in which the transmissions are intended for direct 
     reception by the general public. This service may include 
     sound transmissions, television transmissions or other types 
     of transmission.
       (4) ``Broadcasting Station'' means a station in the 
     broadcasting service.
       (5) ``Assignment (of a radio frequency or radio frequency 
     channel)'' means an authorization given by an administration 
     for a radio station to use a radio frequency or radio 
     frequency channel under specified conditions.
       (6) ``Telecommunication'' means any transmission, emission 
     or reception of signs, signals, writings, images and sounds 
     or intelligence of any nature by wire, radio, optical or 
     other electromagnetic systems.
       (i) ``Military Areas and Facilities'' means those areas and 
     facilities in the Federated States of Micronesia reserved or 
     acquired by the Government of the Federated States of 
     Micronesia for use by the Government of the United States, as 
     set forth in the separate agreements referred to in section 
     321.
       (j) ``Tariff Schedules of the United States'' means the 
     Tariff Schedules of the United States as amended from time to 
     time and as promulgated pursuant to United States law and 
     includes the Tariff Schedules of the United States Annotated 
     (TSUSA), as amended.
       (k) ``Vienna Convention on Diplomatic Relations'' means the 
     Vienna Convention on Diplomatic Relations, done April 18, 
     1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.

     Section 462
       (a) The Government of the United States and the Government 
     of the Federated States of Micronesia previously have 
     concluded agreements pursuant to the Compact, which shall 
     remain in effect and shall survive in accordance with their 
     terms, as follows:
       (1) Agreement Concluded Pursuant to Section 234 of the 
     Compact;
       (2) Agreement Between the Government of the United States 
     and the Government of the Federated States of Micronesia 
     Regarding Friendship, Cooperation and Mutual Security 
     Concluded Pursuant to Sections 321 and 323 of the Compact of 
     Free Association; and
       (3) Agreement between the Government of the United States 
     of America and the Federated States of Micronesia Regarding 
     Aspects of the Marine Sovereignty and Jurisdiction of the 
     Federated States of Micronesia.
       (b) The Government of the United States and the Government 
     of the Federated States of Micronesia shall conclude prior to 
     the date of submission of this Compact, as amended, to the 
     legislatures of the two countries, the following related 
     agreements which shall come into effect on the effective date 
     of this Compact, as amended, and shall survive in accordance 
     with their terms, as follows:
       (1) Federal Programs and Services Agreement Between the 
     Government of the United States of America and the Government 
     of the Federated States of Micronesia Concluded Pursuant to 
     Article III of Title One, Article II of Title Two (including 
     Section 222), and Section 231 of the Compact of Free 
     Association, as amended which includes:
       (i) Postal Services and Related Programs;
       (ii) Weather Services and Related Programs;
       (iii) Civil Aviation Safety Service and Related Programs;
       (iv) Civil Aviation Economic Services and Related Programs;
       (v) United States Disaster Preparedness and Response 
     Services and Related Programs;
       (vi) Federal Deposit Insurance Corporation Services and 
     Related Programs; and
       (vii) Telecommunications Services and Related Programs.
       (2) Agreement Between the Government of the United States 
     of America and the Government of the Federated States of 
     Micronesia on Extradition, Mutual Assistance in Law 
     Enforcement Matters and Penal Sanctions Concluded Pursuant to 
     Section 175(a) of the Compact of Free Association, as 
     amended;
       (3) Agreement Between the Government of the United States 
     of America and the Government of the Federated States of 
     Micronesia on Labor Recruitment Concluded Pursuant to Section 
     175(b) of the Compact of Free Association, as amended;
       (4) Agreement Concerning Procedures for the Implementation 
     of United States Economic Assistance Provided in the Compact 
     of Free Association, as Amended, of Free Association Between 
     the Government of the United States of America and Government 
     of the Federated States of Micronesia;
       (5) Agreement Between the Government of the United States 
     of America and the Government of the Federated States of 
     Micronesia Implementing Section 215 and Section 216 of the 
     Compact, as Amended, Regarding a Trust Fund;
       (6) Agreement Regarding the Military Use and Operating 
     Rights of the Government of the United States in the 
     Federated States of Micronesia Concluded Pursuant to Sections 
     211(b), 321 and 323 of the Compact of Free Association, as 
     Amended; and the
       (7) Status of Forces Agreement Between the Government of 
     the United States of America and the Government of the 
     Federated States of Micronesia Concluded Pursuant to Section 
     323 of the Compact of Free Association, as Amended.

     Section 463
       (a) Except as set forth in subsection (b) of this section, 
     any reference in this Compact, as amended, to a provision of 
     the United States Code or the Statutes at Large of the United 
     States constitutes the incorporation of the language of such 
     provision into this Compact, as amended, as such provision 
     was in force on the effective date of this Compact, as 
     amended.
       (b) Any reference in Articles IV and Article VI of Title 
     One and Sections 174, 175, 178 and

[[Page 25898]]

     342 to a provision of the United States Code or the Statutes 
     at Large of the United States or to the Privacy Act, the 
     Freedom of Information Act, the Administrative Procedure Act 
     or the Immigration and Nationality Act constitutes the 
     incorporation of the language of such provision into this 
     Compact, as amended, as such provision was in force on the 
     effective date of this Compact, as amended, or as it may be 
     amended thereafter on a non-discriminatory basis according to 
     the constitutional processes of the United States.

                              Article VII

                         Concluding Provisions

     Section 471
       Both the Government of the United States and the Government 
     of the Federated States of Micronesia shall take all 
     necessary steps, of a general or particular character, to 
     ensure, no later than the entry into force date of this 
     Compact, as amended, the conformity of its laws, regulations 
     and administrative procedures with the provisions of this 
     Compact, as amended, or in the case of subsection (d) of 
     section 141, as soon as reasonably possible thereafter.

     Section 472
       This Compact, as amended, may be accepted, by signature or 
     otherwise, by the Government of the United States and the 
     Government of the Federated States of Micronesia.
       IN WITNESS WHEREOF, the undersigned, duly authorized, have 
     signed this Compact of Free Association, as amended, which 
     shall enter into force upon the exchange of diplomatic notes 
     by which the Government of the United States of America and 
     the Government of the Federated States of Micronesia inform 
     each other about the fulfillment of their respective 
     requirements for entry into force.
       DONE at Pohnpei, Federated States of Micronesia, in 
     duplicate, this fourteenth (14) day of May, 2003, each text 
     being equally authentic.

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

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

                                PREAMBLE

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

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

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

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

                               Article II

                            Foreign Affairs

     Section 121
       (a) The Government of the Republic of the Marshall Islands 
     has the capacity to conduct foreign affairs and shall do so 
     in its own name and right, except as otherwise provided in 
     this Compact, as amended.
       (b) The foreign affairs capacity of the Government of the 
     Republic of the Marshall Islands includes:
       (1) the conduct of foreign affairs relating to law of the 
     sea and marine resources matters, including the harvesting, 
     conservation, exploration or exploitation of living and non-
     living resources from the sea, seabed or subsoil to the full 
     extent recognized under international law;
       (2) the conduct of its commercial, diplomatic, consular, 
     economic, trade, banking, postal, civil aviation, 
     communications, and cultural relations, including 
     negotiations for the receipt of developmental loans and 
     grants and the conclusion of arrangements with other 
     governments and international and intergovernmental 
     organizations, including any matters specially benefiting its 
     individual citizens.
       (c) The Government of the United States recognizes that the 
     Government of the Republic of the Marshall Islands has the 
     capacity to enter into, in its own name and right, treaties 
     and other international agreements with governments and 
     regional and international organizations.
       (d) In the conduct of its foreign affairs, the Government 
     of the Republic of the Marshall Islands confirms that it 
     shall act in accordance with principles of international law 
     and shall settle its international disputes by peaceful 
     means.

     Section 122
       The Government of the United States shall support 
     applications by the Government of the Republic of the 
     Marshall Islands for membership or other participation in 
     regional or international organizations as may be mutually 
     agreed.

     Section 123
       (a) In recognition of the authority and responsibility of 
     the Government of the United States under Title Three, the 
     Government of the Republic of the Marshall Islands shall 
     consult, in the conduct of its foreign affairs, with the 
     Government of the United States.
       (b) In recognition of the foreign affairs capacity of the 
     Government of the Republic of the Marshall Islands, the 
     Government of the United States, in the conduct of its 
     foreign affairs, shall consult with the Government of the 
     Republic of the Marshall Islands on matters that the 
     Government of the United States regards as relating to or 
     affecting the Government of the Republic of the Marshall 
     Islands.

     Section 124
       The Government of the United States may assist or act on 
     behalf of the Government of the Republic of the Marshall 
     Islands in the area of foreign affairs as may be requested 
     and mutually agreed from time to time. The Government of the 
     United States shall not be responsible to third parties for 
     the actions of the Government of the Republic of the Marshall 
     Islands undertaken with the assistance or through the agency 
     of the Government of the United States pursuant to this 
     section unless expressly agreed.

     Section 125
       The Government of the United States shall not be 
     responsible for nor obligated by any actions taken by the 
     Government of the Republic of the Marshall Islands in the 
     area of foreign affairs, except as may from time to time be 
     expressly agreed.

     Section 126
       At the request of the Government of the Republic of the 
     Marshall Islands and subject to the consent of the receiving 
     state, the Government of the United States shall extend 
     consular assistance on the same basis as for citizens of the 
     United States to citizens of the Republic of the Marshall 
     Islands for travel outside the Republic of the Marshall 
     Islands, the United States and its territories and 
     possessions.

     Section 127
       Except as otherwise provided in this Compact, as amended, 
     or its related agreements, all obligations, responsibilities, 
     rights and benefits of the Government of the United

[[Page 25899]]

     States as Administering Authority which resulted from the 
     application pursuant to the Trusteeship Agreement of any 
     treaty or other international agreement to the Trust 
     Territory of the Pacific Islands on October 20, 1986, are, as 
     of that date, no longer assumed and enjoyed by the Government 
     of the United States.

                              Article III

                             Communications

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

     Section 132
       The Government of the Republic of the Marshall Islands 
     shall permit the Government of the United States to operate 
     telecommunications services in the Republic of the Marshall 
     Islands to the extent necessary to fulfill the obligations of 
     the Government of the United States under this Compact, as 
     amended, in accordance with the terms of separate agreements 
     entered into pursuant to this section of the Compact, as 
     amended.

                               Article IV

                              Immigration

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

[[Page 25900]]

     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

[[Page 25901]]

     action or any activity of the Government of the United States 
     pursuant to section 161(a) for enforcement of the obligations 
     of the Government of the United States arising thereunder. 
     The United States District Court for the District of Hawaii 
     and the United States District Court for the District of 
     Columbia shall have jurisdiction over such action or 
     activity, and over actions brought under section 172(b) which 
     relate to the activities of the Government of the United 
     States and its officers and employees, governed by section 
     161, provided that:
       (a) Such actions may only be civil actions for any 
     appropriate civil relief other than punitive damages against 
     the Government of the United States or, where required by 
     law, its officers in their official capacity; no criminal 
     actions may arise under this section.
       (b) Actions brought pursuant to this section may be 
     initiated only by the Government of the Republic of the 
     Marshall Islands.
       (c) Administrative agency actions arising under section 161 
     shall be reviewed pursuant to the standard of judicial review 
     set forth in 5 U.S.C. 706.
       (d) The United States District Court for the District of 
     Hawaii and the United States District Court for the District 
     of Columbia shall have jurisdiction to issue all necessary 
     processes, and the Government of the United States agrees to 
     submit itself to the jurisdiction of the court; decisions of 
     the United States District Court shall be reviewable in the 
     United States Court of Appeals for the Ninth Circuit or the 
     United States Court of Appeals for the District of Columbia, 
     respectively, or in the United States Supreme Court as 
     provided by the laws of the United States.
       (e) The judicial remedy provided for in this section shall 
     be the exclusive remedy for the judicial review or 
     enforcement of the obligations of the Government of the 
     United States under this Article and actions brought under 
     section 172(b), which relate to the activities of the 
     Government of the United States and its officers and 
     employees governed by section 161.
       (f) In actions pursuant to this section, the Government of 
     the Republic of the Marshall Islands shall be treated as if 
     it were a United States citizen.
     Section 163
       (a) For the purpose of gathering data necessary to study 
     the environmental effects of activities of the Government of 
     the United States subject to the requirements of this 
     Article, the Government of the Republic of the Marshall 
     Islands shall be granted access to facilities operated by the 
     Government of the United States in the Republic of the 
     Marshall Islands, to the extent necessary for this purpose, 
     except to the extent such access would unreasonably interfere 
     with the exercise of the authority and responsibility of the 
     Government of the United States under Title Three.
       (b) The Government of the United States, in turn, shall be 
     granted access to the Republic of the Marshall Islands for 
     the purpose of gathering data necessary to discharge its 
     obligations under this Article, except to the extent such 
     access would unreasonably interfere with the exercise of the 
     authority and responsibility of the Government of the 
     Republic of the Marshall Islands under Title One, and to the 
     extent necessary for this purpose shall be granted access to 
     documents and other information to the same extent similar 
     access is provided the Government of the Republic of the 
     Marshall Islands under the Freedom of Information Act, 5 
     U.S.C. 552.
       (c) The Government of the Republic of the Marshall Islands 
     shall not impede efforts by the Government of the United 
     States to comply with applicable standards and procedures.

                              Article VII

                        General Legal Provisions

     Section 171
       Except as provided in this Compact, as amended, or its 
     related agreements, the application of the laws of the United 
     States to the Trust Territory of the Pacific Islands by 
     virtue of the Trusteeship Agreement ceased with respect to 
     the Marshall Islands on October 21, 1986, the date the 
     Compact went into effect.

     Section 172
       (a) Every citizen of the Republic of the Marshall Islands 
     who is not a resident of the United States shall enjoy the 
     rights and remedies under the laws of the United States 
     enjoyed by any non-resident alien.
       (b) The Government of the Republic of the Marshall Islands 
     and every citizen of the Republic of the Marshall Islands 
     shall be considered to be a ``person'' within the meaning of 
     the Freedom of Information Act, 5 U.S.C. 552, and of the 
     judicial review provisions of the Administrative Procedure 
     Act, 5 U.S.C. 701-706, except that only the Government of the 
     Republic of the Marshall Islands may seek judicial review 
     under the Administrative Procedure Act or judicial 
     enforcement under the Freedom of Information Act when such 
     judicial review or enforcement relates to the activities of 
     the Government of the United States governed by sections 161 
     and 162.

     Section 173
       The Governments of the United States and the Republic of 
     the Marshall Islands agree to adopt and enforce such 
     measures, consistent with this Compact, as amended, and its 
     related agreements, as may be necessary to protect the 
     personnel, property, installations, services, programs and 
     official archives and documents maintained by the Government 
     of the United States in the Republic of the Marshall Islands 
     pursuant to this Compact, as amended, and its related 
     agreements and by the Government of the Republic of the 
     Marshall Islands in the United States pursuant to this 
     Compact, Compact, as amended, and its related agreements.

     Section 174
       Except as otherwise provided in this Compact, as amended, 
     and its related agreements:
       (a) The Government of the Republic of the Marshall Islands, 
     and its agencies and officials, shall be immune from the 
     jurisdiction of the courts of the United States, and the 
     Government of the United States, and its agencies and 
     officials, shall be immune from the jurisdiction of the 
     courts of the Republic of the Marshall Islands.
       (b) The Government of the United States accepts 
     responsibility for and shall pay:
       (1) any unpaid money judgment rendered by the High Court of 
     the Trust Territory of the Pacific Islands against the 
     Government of the United States with regard to any cause of 
     action arising as a result of acts or omissions of the 
     Government of the Trust Territory of the Pacific Islands or 
     the Government of the United States prior to October 21, 
     1986;
       (2) any claim settled by the claimant and the Government of 
     the Trust Territory of the Pacific Islands but not paid as of 
     the October 21, 1986; and
       (3) settlement of any administrative claim or of any action 
     before a court of the Trust Territory of the Pacific Islands 
     or the Government of the United States, arising as a 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

[[Page 25902]]

     of the Republic of the Marshall Islands to grant relief from 
     judgments in appropriate cases.

     Section 177
       Section 177 of the Compact entered into force with respect 
     to the Marshall Islands on October 21, 1986 as follows:
       ``(a) The Government of the United States accepts the 
     responsibility for compensation owing to citizens of the 
     Marshall Islands, or the Federated States of Micronesia, (or 
     Palau) for loss or damage to property and person of the 
     citizens of the Marshall Islands, or the Federated States of 
     Micronesia, resulting from the nuclear testing program which 
     the Government of the United States conducted in the Northern 
     Marshall Islands between June 30, 1946, and August 18, 1958.
       (b) The Government of the United States and the Government 
     of the Marshall Islands shall set forth in a separate 
     agreement provisions for the just and adequate settlement of 
     all such claims which have arisen in regard to the Marshall 
     Islands and its citizens and which have not as yet been 
     compensated or which in the future may arise, for the 
     continued administration by the Government of the United 
     States of direct radiation related medical surveillance and 
     treatment programs and radiological monitoring activities and 
     for such additional programs and activities as may be 
     mutually agreed, and for the assumption by the Government of 
     the Marshall Islands of responsibility for enforcement of 
     limitations on the utilization of affected areas developed in 
     cooperation with the Government of the United States and for 
     the assistance by the Government of the United States in the 
     exercise of such responsibility as may be mutually agreed. 
     This separate agreement shall come into effect simultaneously 
     with this Compact and shall remain in effect in accordance 
     with its own terms.
       (c) The Government of the United States shall provide to 
     the Government of the Marshall Islands, on a grant basis, the 
     amount of $150 million to be paid and distributed in 
     accordance with the separate agreement referred to in this 
     Section, and shall provide the services and programs set 
     forth in this separate agreement, the language of which is 
     incorporated into this Compact.''

     The Compact, as amended, makes no changes to, and has no 
     effect upon, Section 177 of the Compact, nor does the 
     Compact, as amended, change or affect the separate agreement 
     referred to in Section 177 of the Compact including Articles 
     IX and X of that separate agreement, and measures taken by 
     the parties thereunder.

     Section 178
       (a) The Federal agencies of the Government of the United 
     States that provide services and related programs in the 
     Republic of the Marshall Islands pursuant to Title Two are 
     authorized to settle and pay tort claims arising in the 
     Republic of the Marshall Islands from the activities of such 
     agencies or from the acts or omissions of the employees of 
     such agencies. Except as provided in section 178(b), the 
     provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply 
     exclusively to such administrative settlements and payments.
       (b) Claims under section 178(a) that cannot be settled 
     under section 178(a) shall be disposed of exclusively in 
     accordance with Article II of Title Four. Arbitration awards 
     rendered pursuant to this subsection shall be paid out of 
     funds under 31 U.S.C. 1304.
       (c) The Government of the United States and the Government 
     of the Republic of the Marshall Islands shall, in the 
     separate agreement referred to in section 231, provide for:
       (1) the administrative settlement of claims referred to in 
     section 178(a), including designation of local agents in each 
     State of the Republic of the Marshall Islands; such agents to 
     be empowered to accept, investigate and settle such claims, 
     in a timely manner, as provided in such separate agreements; 
     and
       (2) arbitration, referred to in section 178(b), in a timely 
     manner, at a site convenient to the claimant, in the event a 
     claim is not otherwise settled pursuant to section 178(a).
       (d) The provisions of section 174(d) shall not apply to 
     claims covered by this section.
       (e) Except as otherwise explicitly provided by law of the 
     United States, this Compact, as amended, or its related 
     agreements, neither the Government of the United States, its 
     instrumentalities, nor any person acting on behalf of the 
     Government of the United States, shall be named a party in 
     any action based on, or arising out of, the activity or 
     activities of a recipient of any grant or other assistance 
     provided by the Government of the United States (or the 
     activity or activities of the recipient's agency or any other 
     person or entity acting on behalf of the recipient).

     Section 179
       (a) The courts of the Republic of the Marshall Islands 
     shall not exercise criminal jurisdiction over the Government 
     of the United States, or its instrumentalities.
       (b) The courts of the Republic of the Marshall Islands 
     shall not exercise criminal jurisdiction over any person if 
     the Government of the United States provides notification to 
     the Government of the Republic of the Marshall Islands that 
     such person was acting on behalf of the Government of the 
     United States, for actions taken in furtherance of section 
     221 or 224 of this amended Compact, or any other provision of 
     law authorizing financial, program, or service assistance to 
     the Republic of the Marshall Islands.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

     Section 211--Annual Grant Assistance
       (a) In order to assist the Government of the Republic of 
     the Marshall Islands in its efforts to promote the economic 
     advancement and budgetary self-reliance of its people, and in 
     recognition of the special relationship that exists between 
     the Republic of the Marshall Islands and the United States, 
     the Government of the United States shall provide assistance 
     on a grant basis for a period of twenty years in the amounts 
     set forth in section 217, commencing on the effective date of 
     this Compact, as amended. Such grants shall be used for 
     assistance in education, health care, the environment, public 
     sector capacity building, and private sector development, or 
     for other areas as mutually agreed, with priorities in the 
     education and health care sectors. Consistent with the 
     medium-term budget and investment framework described in 
     subsection (f) of this section, the proposed division of this 
     amount among the identified areas shall require the 
     concurrence of both the Government of the United States and 
     the Government of the Republic of the Marshall Islands, 
     through the Joint Economic Management and Financial 
     Accountability Committee described in section 214. The 
     Government of the United States shall disburse the grant 
     assistance and monitor the use of such grant assistance in 
     accordance with the provisions of this Article and an 
     Agreement Concerning Procedures for the Implementation of 
     United States Economic Assistance Provided in the Compact, as 
     Amended, of Free Association Between the Government of the 
     United States of America and the Government of the Republic 
     of the Marshall Islands (``Fiscal Procedures Agreement'') 
     which shall come into effect simultaneously with this 
     Compact, as amended.
       (1) Education.--United States grant assistance shall be 
     made available in accordance with the strategic framework 
     described in subsection (f) of this section to support and 
     improve the educational system of the Republic of the 
     Marshall Islands and develop the human, financial, and 
     material resources necessary for the Republic of the Marshall 
     Islands to perform these services. Emphasis should be placed 
     on advancing a quality basic education system.
       (2) Health.--United States grant assistance shall be made 
     available in accordance with the strategic framework 
     described in subsection (f) of this section to support and 
     improve the delivery of preventive, curative and 
     environmental care and develop the human, financial, and 
     material resources necessary for the Republic of the Marshall 
     Islands to perform these services.
       (3) Private sector development.--United States grant 
     assistance shall be made available in accordance with the 
     strategic framework described in subsection (f) of this 
     section to support the efforts of the Republic of the 
     Marshall Islands to attract foreign investment and increase 
     indigenous business activity by vitalizing the commercial 
     environment, ensuring fair and equitable application of the 
     law, promoting adherence to core labor standards, maintaining 
     progress toward privatization of state-owned and partially 
     state-owned enterprises, and engaging in other reforms.
       (4) Capacity building in the public sector.--United States 
     grant assistance shall be made available in accordance with 
     the strategic framework described in subsection (f) of this 
     section to support the efforts of the Republic of the 
     Marshall Islands to build effective, accountable and 
     transparent national and local government and other public 
     sector institutions and systems.
       (5) Environment.--United States grant assistance shall be 
     made available in accordance with the strategic framework 
     described in subsection (f) of this section to increase 
     environmental protection; establish and manage conservation 
     areas; engage in environmental infrastructure planning, 
     design construction and operation; and to involve the 
     citizens of the Republic of the Marshall Islands in the 
     process of conserving their country's natural resources.
       (b) Kwajalein Atoll.--
       (1) Of the total grant assistance made available under 
     subsection (a) of this section, the amount specified herein 
     shall be allocated annually from fiscal year 2004 through 
     fiscal year 2023 (and thereafter in accordance with the 
     Agreement between the Government of the United States and the 
     Government of the Republic of the Marshall Islands Regarding 
     Military Use and Operating Rights) to advance the objectives 
     and specific priorities set forth in subsections (a) and (d) 
     of this section and the Fiscal Procedures Agreement, to 
     address the special needs of the community at Ebeye, 
     Kwajalein Atoll and other Marshallese communities within 
     Kwajalein Atoll. This United States grant assistance shall be 
     made available, in accordance with the medium-term budget and 
     investment framework described in subsection (f) of this 
     section, to support and improve the infrastructure and 
     delivery of services and develop the human and material 
     resources necessary for the Republic of the Marshall Islands 
     to carry out its responsibility to maintain such 
     infrastructure and

[[Page 25903]]

     deliver such services. The amount of this assistance shall be 
     $3,100,000, with an inflation adjustment as provided in 
     section 218, from fiscal year 2004 through fiscal year 2013 
     and the fiscal year 2013 level of funding, with an inflation 
     adjustment as provided in section 218, will be increased by 
     $2 million for fiscal year 2014. The fiscal year 2014 level 
     of funding, with an inflation adjustment as provided in 
     section 218, will be made available from fiscal year 2015 
     through fiscal year 2023 (and thereafter as noted above).
       (2) The Government of the United States shall also provide 
     to the Government of the Republic of the Marshall Islands, in 
     conjunction with section 321(a) of this Compact, as amended, 
     an annual payment from fiscal year 2004 through fiscal year 
     2023 (and thereafter in accordance with the Agreement between 
     the Government of the United States and the Government of the 
     Republic of the Marshall Islands Regarding Military Use and 
     Operating Rights) of $1.9 million. This grant assistance will 
     be subject to the Fiscal Procedures Agreement and will be 
     adjusted for inflation under section 218 and used to address 
     the special needs of the community at Ebeye, Kwajalein Atoll 
     and other Marshallese communities within Kwajalein Atoll with 
     emphasis on the Kwajalein landowners, as described in the 
     Fiscal Procedures Agreement.
       (3) Of the total grant assistance made available under 
     subsection (a) of this section, and in conjunction with 
     section 321(a) of the Compact, as amended, $200,000, with an 
     inflation adjustment as provided in section 218, shall be 
     allocated annually from fiscal year 2004 through fiscal year 
     2023 (and thereafter as provided in the Agreement between the 
     Government of the United States and the Government of the 
     Republic of the Marshall Islands Regarding Military Use and 
     Operating Rights) for a grant to support increased 
     participation of the Government of the Republic of the 
     Marshall Islands Environmental Protection Authority in the 
     annual U.S. Army Kwajalein Atoll Environmental Standards 
     Survey and to promote a greater Government of the Republic of 
     the Marshall Islands capacity for independent analysis of the 
     Survey's findings and conclusions.
       (c) Humanitarian Assistance-Republic of the Marshall 
     Islands Program.--In recognition of the special development 
     needs of the Republic of the Marshall Islands, the Government 
     of the United States shall make available to the Government 
     of the Republic of the Marshall Islands, on its request and 
     to be deducted from the grant amount made available under 
     subsection (a) of this section, a Humanitarian Assistance - 
     Republic of the Marshall Islands (``HARMI'') Program with 
     emphasis on health, education, and infrastructure (including 
     transportation), projects and such other projects as mutually 
     agreed. The terms and conditions of the HARMI shall be set 
     forth in the Agreement Regarding the Military Use and 
     Operating Rights of the Government of the United States in 
     the Republic of the Marshall Islands Concluded Pursuant to 
     Sections 321 and 323 of the Compact of Free Association, as 
     Amended, which shall come into effect simultaneously with the 
     amendments to this Compact.
       (d) Public Infrastructure.--
       (1) Unless otherwise agreed, not less than 30 percent and 
     not more than 50 percent of U.S. annual grant assistance 
     provided under this section shall be made available in 
     accordance with a list of specific projects included in the 
     infrastructure improvement and maintenance plan prepared by 
     the Government of the Republic of the Marshall Islands as 
     part of the strategic framework described in subsection (f) 
     of this section.
       (2) Infrastructure Maintenance Fund.--Five percent of the 
     annual public infrastructure grant made available under 
     paragraph (1) of this subsection shall be set aside, with an 
     equal contribution from the Government of the Republic of the 
     Marshall Islands, as a contribution to an Infrastructure 
     Maintenance Fund. Administration of the Infrastructure 
     Maintenance Fund shall be governed by the Fiscal Procedures 
     Agreement.
       (e) Disaster Assistance Emergency Fund.--Of the total grant 
     assistance made available under subsection (a) of this 
     section, an amount of two hundred thousand dollars ($200,000) 
     shall be provided annually, with an equal contribution from 
     the Government of the Republic of the Marshall Islands, as a 
     contribution to a Disaster Assistance Emergency Fund 
     (``DAEF''). Any funds from the DAEF may be used only for 
     assistance and rehabilitation resulting from disasters and 
     emergencies. The funds will be accessed upon declaration of a 
     State of Emergency by the Government of the Republic of the 
     Marshall Islands, with the concurrence of the United States 
     Chief of Mission to the Republic of the Marshall Islands. 
     Administration of the DAEF shall be governed by the Fiscal 
     Procedures Agreement.
       (f) Budget and Investment Framework.--The Government of the 
     Republic of the Marshall Islands shall prepare and maintain 
     an official medium-term budget and investment framework. The 
     framework shall be strategic in nature, shall be continuously 
     reviewed and updated through the annual budget process, and 
     shall make projections on a multi-year rolling basis. Each of 
     the sectors and areas named in subsections (a), (b), and (d) 
     of this section, or other sectors and areas as mutually 
     agreed, shall be accorded specific treatment in the 
     framework. Those portions of the framework that contemplate 
     the use of United States grant funds shall require the 
     concurrence of both the Government of the United States and 
     the Government of the Republic of the Marshall Islands.

     Section 212--Kwajalein Impact and Use
       The Government of the United States shall provide to the 
     Government of the Republic of the Marshall Islands in 
     conjunction with section 321(a) of the Compact, as amended, 
     and the agreement between the Government of the United States 
     and the Government of the Republic of the Marshall Islands 
     regarding military use and operating rights, a payment in 
     fiscal year 2004 of $15,000,000, with no adjustment for 
     inflation. In fiscal year 2005 and through fiscal year 2013, 
     the annual payment will be the fiscal year 2004 amount 
     ($15,000,000) with an inflation adjustment as provided under 
     section 218. In fiscal year 2014, the annual payment will be 
     $18,000,000 (with no adjustment for inflation) or the fiscal 
     year 2013 amount with an inflation adjustment under section 
     218, whichever is greater. For fiscal year 2015 through 
     fiscal year 2023 (and thereafter in accordance with the 
     Agreement between the Government of the United States and the 
     Government of the Republic of the Marshall Islands Regarding 
     Military Use and Operating Rights) the annual payment will be 
     the fiscal year 2014 amount, with an inflation adjustment as 
     provided under section 218.

     Section 213--Accountability
       (a) Regulations and policies normally applicable to United 
     States financial assistance to its state and local 
     governments, as set forth in the Fiscal Procedures Agreement, 
     shall apply to each grant described in section 211, and to 
     grants administered under section 221 below, except as 
     modified in the separate agreements referred to in section 
     231 of this Compact, as amended, or by U.S. law. As set forth 
     in the Fiscal Procedures Agreement, reasonable terms and 
     conditions, including annual performance indicators that are 
     necessary to ensure effective use of United States assistance 
     and reasonable progress toward achieving program objectives 
     may be attached. In addition, the United States may seek 
     appropriate remedies for noncompliance with the terms and 
     conditions attached to the assistance, or for failure to 
     comply with section 234, including withholding assistance.
       (b) The Government of the United States shall, for each 
     fiscal year of the twenty years during which assistance is to 
     be provided on a sector grant basis under section 211 (a), 
     grant the Government of the Republic of the Marshall Islands 
     an amount equal to the lesser of (i) one half of the 
     reasonable, properly documented cost incurred during such 
     fiscal year to conduct the annual audit required under 
     Article VIII (2) of the Fiscal Procedures Agreement or (ii) 
     $500,000. Such amount will not be adjusted for inflation 
     under section 218 or otherwise.

     Section 214--Joint Economic Management and Financial 
     Accountability Committee
       The Governments of the United States and the Republic of 
     the Marshall Islands shall establish a Joint Economic 
     Management and Financial Accountability Committee, composed 
     of a U.S. chair, two other members from the Government of the 
     United States and two members from the Government of the 
     Republic of the Marshall Islands. The Joint Economic 
     Management and Financial Accountability Committee shall meet 
     at least once each year to review the audits and reports 
     required under this Title and the Fiscal Procedures 
     Agreement, evaluate the progress made by the Republic of the 
     Marshall Islands in meeting the objectives identified in its 
     framework described in subsection (f) of section 211, with 
     particular focus on those parts of the framework dealing with 
     the sectors and areas identified in subsection (a) of section 
     211, identify problems encountered, and recommend ways to 
     increase the effectiveness of U.S. assistance made available 
     under this Title. The establishment and operations of the 
     Joint Economic Management and Financial Accountability 
     Committee shall be governed by the Fiscal Procedures 
     Agreement.

     Section 215--Annual Report
       The Government of the Republic of the Marshall Islands 
     shall report annually to the President of the United States 
     on the use of United States sector grant assistance and other 
     assistance and progress in meeting mutually agreed program 
     and economic goals. The Joint Economic Management and 
     Financial Accountability Committee shall review and comment 
     on the report and make appropriate recommendations based 
     thereon.

     Section 216--Trust Fund
       (a) The United States shall contribute annually for twenty 
     years from the effective date of the Compact, as amended, in 
     the amounts set forth in section 217 into a trust fund 
     established in accordance with the Agreement Between the 
     Government of the United States of America and the Government 
     of the Republic of the Marshall Islands Implementing Section 
     216 and Section 217 of the Compact, as Amended, Regarding a 
     Trust Fund (``Trust Fund Agreement''), which shall come into 
     effect simultaneously with

[[Page 25904]]

     this Compact, as amended. Upon termination of the annual 
     grant assistance under section 211 (a), (d) and (e), the 
     earnings of the fund shall thereafter be used for the 
     purposes described in section 211 or as otherwise mutually 
     agreed.
       (b) The United States contribution into the Trust Fund 
     described in subsection (a) of this section is conditioned on 
     the Government of the Republic of the Marshall Islands 
     contributing to the Trust Fund at least $25,000,000, on the 
     effective date of the Trust Fund Agreement or on October 1, 
     2003, whichever is later, $2,500,000 prior to October 1, 
     2004, and $2,500,000 prior to October 1, 2005. Any funds 
     received by the Republic of the Marshall Islands under 
     section 111(d) of Public Law 99-239 (January 14, 1986), or 
     successor provisions, would be contributed to the Trust Fund 
     as a Republic of the Marshall Islands' contribution.
       (c) The terms regarding the investment and management of 
     funds and use of the income of the Trust Fund shall be 
     governed by the Trust Fund Agreement. Funds derived from 
     United States investment shall not be subject to Federal or 
     state taxes in the United States or any taxes in the Republic 
     of the Marshall Islands. The Trust Fund Agreement shall also 
     provide for annual reports to the Government of the United 
     States and to the Government of the Republic of the Marshall 
     Islands. The Trust Fund Agreement shall provide for 
     appropriate distributions of trust fund proceeds to the 
     Republic of the Marshall Islands and for appropriate remedies 
     for the failure of the Republic of the Marshall Islands to 
     use income of the Trust Fund for the annual grant purposes 
     set forth in section 211. These remedies may include the 
     return to the United States of the present market value of 
     its contributions to the Trust Fund and the present market 
     value of any undistributed income on the contributions of the 
     United States. If this Compact, as amended, is terminated, 
     the provisions of sections 451-453 of the Compact, as 
     amended, and the Trust Fund Agreement shall govern treatment 
     of any U.S. contributions to the Trust Fund or accrued income 
     thereon.

     Section 217--Annual Grant Funding and Trust Fund 
     Contributions
       The funds described in sections 211, 212, 213(b), and 216 
     shall be made available as follows:


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

     Section 218--Inflation Adjustment
       Except as otherwise provided, the amounts stated in this 
     Title shall be adjusted for each United States Fiscal Year by 
     the percent that equals two-thirds of the percent change in 
     the United States Gross Domestic Product Implicit Price 
     Deflator, or 5 percent, whichever is less in any one year, 
     using the beginning of Fiscal Year 2004 as a base.

     Section 219--Carry-Over of Unused Funds
       If in any year the funds made available by the Government 
     of the United States for that year pursuant to this Article 
     are not completely obligated by the Government of the 
     Republic of the Marshall Islands, the unobligated balances 
     shall remain available in addition to the funds to be 
     provided in subsequent years.

                               Article II

                    Services and Program Assistance

     Section 221
       (a) Services.--The Government of the United States shall 
     make available to the Republic of the Marshall Islands, in 
     accordance with and to the extent provided in the Federal 
     Programs and Services Agreement referred to in Section 231, 
     the services and related programs of:
       (1) the United States Weather Service;
       (2) the United States Postal Service;
       (3) the United States Federal Aviation Administration;
       (4) the United States Department of Transportation; and
       (5) the Department of Homeland Security, and the United 
     States Agency for International Development, Office of 
     Foreign Disaster Assistance.

     Upon the effective date of this Compact, as amended, the 
     United States Departments and Agencies named or having 
     responsibility to provide these services and related programs 
     shall have the authority to implement the relevant provisions 
     of the Federal Programs and Services Agreement referred to in 
     section 231.
       (b) Programs.--
       (1) Other than the services and programs covered by 
     subsection (a) of this section, and to the extent authorized 
     by the Congress of the United States, the Government of the 
     United States shall make available to the Republic of the 
     Marshall Islands the services and programs that were 
     available to the Republic of the Marshall Islands on the 
     effective date of this Compact, as amended, to the extent 
     that such services and programs continue to be available to 
     State and local governments of the United States. As set 
     forth in the Fiscal Procedures Agreement, funds provided 
     under subsection (a) of section 211 shall be considered to be 
     local revenues of the Government of the Republic of the 
     Marshall Islands when used as the local share required to 
     obtain Federal programs and services.
       (2) Unless provided otherwise by U.S. law, the services and 
     programs described in paragraph (1) of this subsection shall 
     be extended in accordance with the terms of the Federal 
     Programs and Services Agreement.
       (c) The Government of the United States shall have and 
     exercise such authority as is necessary to carry out its 
     responsibilities under this Title and the Federal Programs 
     and Services Agreement, including the authority to monitor 
     and administer all service and program assistance provided by 
     the United States to the Republic of the Marshall Islands. 
     The Federal Programs and Services Agreement shall also set 
     forth the extent to which services and programs shall be 
     provided to the Republic of the Marshall Islands.
       (d) Except as provided elsewhere in this Compact, as 
     amended, under any separate agreement entered into under this 
     Compact, as amended, or otherwise under U.S. law, all Federal 
     domestic programs extended to or operating in the Republic of 
     the Marshall Islands shall be subject to all applicable 
     criteria, standards, reporting requirements, auditing 
     procedures, and other rules and regulations applicable to 
     such programs and services when operating in the United 
     States.
       (e) The Government of the United States shall make 
     available to the Republic of the Marshall Islands alternate 
     energy development projects, studies, and conservation 
     measures to the extent provided for the Freely Associated 
     States in the laws of the United States.

     Section 222
       The Government of the United States and the Government of 
     the Republic of the Marshall Islands may agree from time to 
     time to extend to the Republic of the Marshall Islands 
     additional United States grant assistance, services and 
     programs, as provided under the laws of the United States. 
     Unless inconsistent with such laws, or otherwise specifically 
     precluded by the Government of the United States at the time 
     such additional grant assistance, services, or programs are 
     extended, the Federal Programs and Services Agreement shall 
     apply to any such assistance, services or programs.

     Section 223

[[Page 25905]]

       The Government of the Republic of the Marshall Islands 
     shall make available to the Government of the United States 
     at no cost such land as may be necessary for the operations 
     of the services and programs provided pursuant to this 
     Article, and such facilities as are provided by the 
     Government of the Republic of the Marshall Islands at no cost 
     to the Government of the United States as of the effective 
     date of this Compact, as amended, or as may be mutually 
     agreed thereafter.

     Section 224
       The Government of the Republic of the Marshall Islands may 
     request, from the time to time, technical assistance from the 
     Federal agencies and institutions of the Government of the 
     United States, which are authorized to grant such technical 
     assistance in accordance with its laws. If technical 
     assistance is granted pursuant to such a request, the 
     Government of the United States shall provide the technical 
     assistance in a manner which gives priority consideration to 
     the Republic of the Marshall Islands over other recipients 
     not a part of the United States, its territories or 
     possessions, and equivalent consideration to the Republic of 
     the Marshall Islands with respect to other states in Free 
     Association with the United States. Such assistance shall be 
     made available on a reimbursable or non-reimbursable basis to 
     the extent provided by United States law.

                              Article III

                       Administrative Provisions

     Section 231
       The specific nature, extent and contractual arrangements of 
     the services and programs provided for in section 221 of this 
     Compact, as amended, as well as the legal status of agencies 
     of the Government of the United States, their civilian 
     employees and contractors, and the dependents of such 
     personnel while present in the Republic of the Marshall 
     Islands, and other arrangements in connection with the 
     assistance, services, or programs furnished by the Government 
     of the United States, are set forth in a Federal Programs and 
     Services Agreement which shall come into effect 
     simultaneously with this Compact, as amended.

     Section 232
       The Government of the United States, in consultation with 
     the Government of the Republic of the Marshall Islands, shall 
     determine and implement procedures for the periodic audit of 
     all grants and other assistance made under Article I of this 
     Title and of all funds expended for the services and programs 
     provided under Article II of this Title. Further, in 
     accordance with the Fiscal Procedures Agreement described in 
     subsection (a) of section 211, the Comptroller General of the 
     United States shall have such powers and authorities as 
     described in sections 103(m) and 110(c) of Public Law 99-239, 
     99 Stat. 1777-78, and 99 Stat. 1799 (January 14, 1986).

     Section 233
       Approval of this Compact, as amended, by the Government of 
     the United States, in accordance with its constitutional 
     processes, shall constitute a pledge by the United States 
     that the sums and amounts specified as grants in section 211 
     of this Compact, as amended, shall be appropriated and paid 
     to the Republic of the Marshall Islands for such period as 
     those provisions of this Compact, as amended, remain in 
     force, provided that the Republic of the Marshall Islands 
     complies with the terms and conditions of this Title and 
     related subsidiary agreements.

     Section 234
       The Government of the Republic of the Marshall Islands 
     pledges to cooperate with, permit, and assist if reasonably 
     requested, designated and authorized representatives of the 
     Government of the United States charged with investigating 
     whether Compact funds, or any other assistance authorized 
     under this Compact, as amended, have, or are being, used for 
     purposes other than those set forth in this Compact, as 
     amended, or its subsidiary agreements. In carrying out this 
     investigative authority, such United States Government 
     representatives may request that the Government of the 
     Republic of the Marshall Islands subpoena documents and 
     records and compel testimony in accordance with the laws and 
     Constitution of the Republic of the Marshall Islands. Such 
     assistance by the Government of the Republic of the Marshall 
     Islands to the Government of the United States shall not be 
     unreasonably withheld. The obligation of the Government of 
     the Marshall Islands to fulfill its pledge herein is a 
     condition to its receiving payment of such funds or other 
     assistance authorized under this Compact, as amended. The 
     Government of the United States shall pay any reasonable 
     costs for extraordinary services executed by the Government 
     of the Marshall Islands in carrying out the provisions of 
     this section.

                               Article IV

                                 Trade

     Section 241
       The Republic of the Marshall Islands is not included in the 
     customs territory of the United States.

     Section 242
       The President shall proclaim the following tariff treatment 
     for articles imported from the Republic of the Marshall 
     Islands which shall apply during the period of effectiveness 
     of this title:
       (a) Unless otherwise excluded, articles imported from the 
     Republic of the Marshall Islands, subject to the limitations 
     imposed under section 503(b) of title V of the Trade Act of 
     1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
       (b) Only tuna in airtight containers provided for in 
     heading 1604.14.22 of the Harmonized Tariff Schedule of the 
     United States that is imported from the Republic of the 
     Marshall Islands and the Federated States of Micronesia 
     during any calendar year not to exceed 10 percent of apparent 
     United States consumption of tuna in airtight containers 
     during the immediately preceding calendar year, as reported 
     by the National Marine Fisheries Service, shall be exempt 
     from duty; but the quantity of tuna given duty-free treatment 
     under this paragraph for any calendar year shall be counted 
     against the aggregated quantity of tuna in airtight 
     containers that is dutiable under rate column numbered 1 of 
     such heading 1604.14.22 for that calendar year.
       (c) The duty-free treatment provided under subsection (a) 
     shall not apply to:
       (1) watches, clocks, and timing apparatus provided for in 
     Chapter 91, excluding heading 9113, of the Harmonized Tariff 
     Schedule of the United States;
       (2) buttons (whether finished or not finished) provided for 
     in items 9606.21.40 and 9606.29.20 of such Schedule;
       (3) textile and apparel articles which are subject to 
     textile agreements; and
       (4) footwear, handbags, luggage, flat goods, work gloves, 
     and leather wearing apparel which were not eligible articles 
     for purposes of title V of the Trade Act of 1974 (19 U.S.C. 
     2461, et seq.) on April 1, 1984.
       (d) If the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to an eligible article which is a product of the 
     Republic of the Marshall Islands, an amount not to exceed 15 
     percent of the appraised value of the article at the time it 
     is entered that is attributable to such United States cost or 
     value may be applied for duty assessment purposes toward 
     determining the percentage referred to in section 503(a)(2) 
     of title V of the Trade Act of 1974.

     Section 243
       Articles imported from the Republic of the Marshall Islands 
     which are not exempt from duty under subsections (a), (b), 
     (c), and
       (d) of section 242 shall be subject to the rates of duty 
     set forth in column numbered 1-general of the Harmonized 
     Tariff Schedule of the United States (HTSUS).

     Section 244
       (a) All products of the United States imported into the 
     Republic of the Marshall Islands shall receive treatment no 
     less favorable than that accorded like products of any 
     foreign country with respect to customs duties or charges of 
     a similar nature and with respect to laws and regulations 
     relating to importation, exportation, taxation, sale, 
     distribution, storage or use.
       (b) The provisions of subsection (a) shall not apply to 
     advantages accorded by the Republic of the Marshall Islands 
     by virtue of their full membership in the Pacific Island 
     Countries Trade Agreement (PICTA), done on August, 18, 2001, 
     to those governments listed in Article 26 of PICTA, as of the 
     date the Compact, as amended, is signed.
       (c) Prior to entering into consultations on, or concluding, 
     a free trade agreement with governments not listed in Article 
     26 of PICTA, the Republic of the Marshall Islands shall 
     consult with the United States regarding whether or how 
     subsection (a) of section 244 shall be applied.

                               Article V

                          Finance and Taxation

     Section 251
       The currency of the United States is the official 
     circulating legal tender of the Republic of the Marshall 
     Islands. Should the Government of the Republic of the 
     Marshall Islands act to institute another currency, the terms 
     of an appropriate currency transitional period shall be as 
     agreed with the Government of the United States.

     Section 252
       The Government of the Republic of the Marshall Islands may, 
     with respect to United States persons, tax income derived 
     from sources within its respective jurisdiction, property 
     situated therein, including transfers of such property by 
     gift or at death, and products consumed therein, in such 
     manner as the Government of the Republic of the Marshall 
     Islands deems appropriate. The determination of the source of 
     any income, or the situs of any property, shall for purposes 
     of this Compact, as amended, be made according to the United 
     States Internal Revenue Code.

     Section 253
       A citizen of the Republic of the Marshall Islands, 
     domiciled therein, shall be exempt from estate, gift, and 
     generation-skipping transfer taxes imposed by the Government 
     of the United States, provided that such citizen of the 
     Republic of the Marshall Islands is neither a citizen nor a 
     resident of the United States.

     Section 254
       (a) In determining any income tax imposed by the Government 
     of the Republic of the Marshall Islands, the Government of 
     the Republic of the Marshall Islands shall have authority to 
     impose tax upon income derived

[[Page 25906]]

     by a resident of the Republic of the Marshall Islands from 
     sources without the Republic of the Marshall Islands, in the 
     same manner and to the same extent as the Government of the 
     Republic of the Marshall Islands imposes tax upon income 
     derived from within its own jurisdiction. If the Government 
     of the Republic of the Marshall Islands exercises such 
     authority as provided in this subsection, any individual 
     resident of the Republic of the Marshall Islands who is 
     subject to tax by the Government of the United States on 
     income which is also taxed by the Government of the Republic 
     of the Marshall Islands shall be relieved of liability to the 
     Government of the United States for the tax which, but for 
     this subsection, would otherwise be imposed by the Government 
     of the United States on such income. However, the relief from 
     liability to the United States Government referred to in the 
     preceding sentence means only relief in the form of the 
     foreign tax credit (or deduction in lieu thereof) available 
     with respect to the income taxes of a possession of the 
     United States, and relief in the form of the exclusion under 
     section 911 of the Internal Revenue Code of 1986. For 
     purposes of this section, the term ``resident of the Republic 
     of the Marshall Islands'' shall be deemed to include any 
     person who was physically present in the Republic of the 
     Marshall Islands for a period of 183 or more days during any 
     taxable year.
       (b) If the Government of the Republic of the Marshall 
     Islands subjects income to taxation substantially similar to 
     that which was imposed by the Trust Territory Code in effect 
     on January 1, 1980, such Government shall be deemed to have 
     exercised the authority described in section 254(a).

     Section 255
       For purposes of section 274(h)(3)(A) of the U.S. Internal 
     Revenue Code of 1986, the term ``North American Area'' shall 
     include the Republic of the Marshall Islands.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

     Section 311
       (a) The Government of the United States has full authority 
     and responsibility for security and defense matters in or 
     relating to the Republic of the Marshall Islands.
       (b) This authority and responsibility includes:
       (1) the obligation to defend the Republic of the Marshall 
     Islands and its people from attack or threats thereof as the 
     United States and its citizens are defended;
       (2) the option to foreclose access to or use of the 
     Republic of the Marshall Islands by military personnel or for 
     the military purposes of any third country; and
       (3) the option to establish and use military areas and 
     facilities in the Republic of the Marshall Islands, subject 
     to the terms of the separate agreements referred to in 
     sections 321 and 323.
       (c) The Government of the United States confirms that it 
     shall act in accordance with the principles of international 
     law and the Charter of the United Nations in the exercise of 
     this authority and responsibility.

     Section 312
       Subject to the terms of any agreements negotiated in 
     accordance with sections 321 and 323, the Government of the 
     United States may conduct within the lands, waters and 
     airspace of the Republic of the Marshall Islands the 
     activities and operations necessary for the exercise of its 
     authority and responsibility under this Title.

     Section 313
       (a) The Government of the Republic of the Marshall Islands 
     shall refrain from actions that the Government of the United 
     States determines, after appropriate consultation with that 
     Government, to be incompatible with its authority and 
     responsibility for security and defense matters in or 
     relating to the Republic of the Marshall Islands.
       (b) The consultations referred to in this section shall be 
     conducted expeditiously at senior levels of the two 
     Governments, and the subsequent determination by the 
     Government of the United States referred to in this section 
     shall be made only at senior interagency levels of the 
     Government of the United States.
       (c) The Government of the Republic of the Marshall Islands 
     shall be afforded, on an expeditious basis, an opportunity to 
     raise its concerns with the United States Secretary of State 
     personally and the United States Secretary of Defense 
     personally regarding any determination made in accordance 
     with this section.

     Section 314
       (a) Unless otherwise agreed, the Government of the United 
     States shall not, in the Republic of the Marshall Islands:
       (1) test by detonation or dispose of any nuclear weapon, 
     nor test, dispose of, or discharge any toxic chemical or 
     biological weapon; or
       (2) test, dispose of, or discharge any other radioactive, 
     toxic chemical or biological materials in an amount or manner 
     that would be hazardous to public health or safety.
       (b) Unless otherwise agreed, other than for transit or 
     overflight purposes or during time of a national emergency 
     declared by the President of the United States, a state of 
     war declared by the Congress of the United States or as 
     necessary to defend against an actual or impending armed 
     attack on the United States, the Republic of the Marshall 
     Islands or the Federated States of Micronesia, the Government 
     of the United States shall not store in the Republic of the 
     Marshall Islands or the Federated States of Micronesia any 
     toxic chemical weapon, nor any radioactive materials nor any 
     toxic chemical materials intended for weapons use.
       (c) Radioactive, toxic chemical, or biological materials 
     not intended for weapons use shall not be affected by section 
     314(b).
       (d) No material or substance referred to in this section 
     shall be stored in the Republic of the Marshall Islands 
     except in an amount and manner which would not be hazardous 
     to public health or safety. In determining what shall be an 
     amount or manner which would be hazardous to public health or 
     safety under this section, the Government of the United 
     States shall comply with any applicable mutual agreement, 
     international guidelines accepted by the Government of the 
     United States, and the laws of the United States and their 
     implementing regulations.
       (e) Any exercise of the exemption authority set forth in 
     section 161(e) shall have no effect on the obligations of the 
     Government of the United States under this section or on the 
     application of this subsection.
       (f) The provisions of this section shall apply in the areas 
     in which the Government of the Republic of the Marshall 
     Islands exercises jurisdiction over the living resources of 
     the seabed, subsoil or water column adjacent to its coasts.

     Section 315
       The Government of the United States may invite members of 
     the armed forces of other countries to use military areas and 
     facilities in the Republic of the Marshall Islands, in 
     conjunction with and under the control of United States Armed 
     Forces. Use by units of the armed forces of other countries 
     of such military areas and facilities, other than for transit 
     and overflight purposes, shall be subject to consultation 
     with and, in the case of major units, approval of the 
     Government of the Republic of the Marshall Islands.

     Section 316
       The authority and responsibility of the Government of the 
     United States under this Title may not be transferred or 
     otherwise assigned.

                               Article II

                Defense Facilities and Operating Rights

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

     Section 322
       The Government of the United States shall provide and 
     maintain fixed and floating aids to navigation in the 
     Republic of the Marshall Islands at least to the extent 
     necessary for the exercise of its authority and 
     responsibility under this Title.

     Section 323
       The military operating rights of the Government of the 
     United States and the legal status and contractual 
     arrangements of the United States Armed Forces, their 
     members, and associated civilians, while present in the 
     Republic of the Marshall Islands are set forth in separate 
     agreements, which shall remain in effect in accordance with 
     the terms of such agreements.

                              Article III

         Defense Treaties and International Security Agreements

     Section 331
       Subject to the terms of this Compact, as amended, and its 
     related agreements, the Government of the United States, 
     exclusively, has assumed and enjoys, as to the Republic of 
     the Marshall Islands, all obligations, responsibilities, 
     rights and benefits of:
       (a) Any defense treaty or other international security 
     agreement applied by the Government of the United States as 
     Administering Authority of the Trust Territory of the Pacific 
     Islands as of October 20, 1986.

[[Page 25907]]

       (b) Any defense treaty or other international security 
     agreement to which the Government of the United States is or 
     may become a party which it determines to be applicable in 
     the Republic of the Marshall Islands. Such a determination by 
     the Government of the United States shall be preceded by 
     appropriate consultation with the Government of the Republic 
     of the Marshall Islands.

                               Article IV

              Service in Armed Forces of the United States

     Section 341
       Any person entitled to the privileges set forth in Section 
     141 (with the exception of any person described in section 
     141(a)(5) who is not a citizen of the Republic of the 
     Marshall Islands) shall be eligible to volunteer for service 
     in the Armed Forces of the United States, but shall not be 
     subject to involuntary induction into military service of the 
     United States as long as such person has resided in the 
     United States for a period of less than one year, provided 
     that no time shall count towards this one year while a person 
     admitted to the United States under the Compact, or the 
     Compact, as amended, is engaged in full-time study in the 
     United States. Any person described in section 141(a)(5) who 
     is not a citizen of the Republic of the Marshall Islands 
     shall be subject to United States laws relating to selective 
     service.

     Section 342
       The Government of the United States shall have enrolled, at 
     any one time, at least one qualified student from the 
     Republic of the Marshall Islands, as may be nominated by the 
     Government of the Republic of the Marshall Islands, in each 
     of:
       (a) The United States Coast Guard Academy pursuant to 14 
     U.S.C. 195.
       (b) The United States Merchant Marine Academy pursuant to 
     46 U.S.C. 1295(b)(6), provided that the provisions of 46 
     U.S.C. 1295b(b)(6)(C) shall not apply to the enrollment of 
     students pursuant to section 342(b) of this Compact, as 
     amended.

                               Article V

                           General Provisions

     Section 351
       (a) The Government of the United States and the Government 
     of the Republic of the Marshall Islands shall continue to 
     maintain a Joint Committee empowered to consider disputes 
     arising under the implementation of this Title and its 
     related agreements.
       (b) The membership of the Joint Committee shall comprise 
     selected senior officials of the two Governments. The senior 
     United States military commander in the Pacific area shall be 
     the senior United States member of the Joint Committee. For 
     the meetings of the Joint Committee, each of the two 
     Governments may designate additional or alternate 
     representatives as appropriate for the subject matter under 
     consideration.
       (c) Unless otherwise mutually agreed, the Joint Committee 
     shall meet annually at a time and place to be designated, 
     after appropriate consultation, by the Government of the 
     United States. The Joint Committee also shall meet promptly 
     upon request of either of its members. The Joint Committee 
     shall follow such procedures, including the establishment of 
     functional subcommittees, as the members may from time to 
     time agree. Upon notification by the Government of the United 
     States, the Joint Committee of the United States and the 
     Republic of the Marshall Islands shall meet promptly in a 
     combined session with the Joint Committee established and 
     maintained by the Government of the United States and the 
     Government of the Federated States of Micronesia to consider 
     matters within the jurisdiction of the two Joint Committees.
       (d) Unresolved issues in the Joint Committee shall be 
     referred to the Governments for resolution, and the 
     Government of the Republic of the Marshall Islands shall be 
     afforded, on an expeditious basis, an opportunity to raise 
     its concerns with the United States Secretary of Defense 
     personally regarding any unresolved issue which threatens its 
     continued association with the Government of the United 
     States.

     Section 352
       In the exercise of its authority and responsibility under 
     Title Three, the Government of the United States shall accord 
     due respect to the authority and responsibility of the 
     Government of the Republic of the Marshall Islands under 
     Titles One, Two and Four and to the responsibility of the 
     Government of the Republic of the Marshall Islands to assure 
     the well-being of its people.

     Section 353
       (a) The Government of the United States shall not include 
     the Government of the Republic of the Marshall Islands as a 
     named party to a formal declaration of war, without that 
     Government's consent.
       (b) Absent such consent, this Compact, as amended, is 
     without prejudice, on the ground of belligerence or the 
     existence of a state of war, to any claims for damages which 
     are advanced by the citizens, nationals or Government of the 
     Republic of the Marshall Islands, which arise out of armed 
     conflict subsequent to October 21, 1986, and which are:
       (5) petitions to the Government of the United States for 
     redress; or
       (6) claims in any manner against the government, citizens, 
     nationals or entities of any third country.
       (c) Petitions under section 353(b)(1) shall be treated as 
     if they were made by citizens of the United States.

     Section 354
       (a) The Government of the United States and the Government 
     of the Republic of the Marshall Islands are jointly committed 
     to continue their security and defense relations, as set 
     forth in this Title. Accordingly, it is the intention of the 
     two countries that the provisions of this Title shall remain 
     binding as long as this Compact, as amended, remains in 
     effect, and thereafter as mutually agreed, unless earlier 
     terminated by mutual agreement pursuant to section 441, or 
     amended pursuant to Article III of Title Four. If at any time 
     the Government of the United States, or the Government of the 
     Republic of the Marshall Islands, acting unilaterally, 
     terminates this Title, such unilateral termination shall be 
     considered to be termination of the entire Compact, as 
     amended, in which case the provisions of section 442 and 452 
     (in the case of termination by the Government of the United 
     States) or sections 443 and 453 (in the case of termination 
     by the Government of the Republic of the Marshall Islands), 
     with the exception of paragraph (3) of subsection (a) of 
     section 452 or paragraph (3) of subsection (a) of section 
     453, as the case may be, shall apply.
       (b) The Government of the United States recognizes, in view 
     of the special relationship between the Government of the 
     United States and the Government of the Republic of the 
     Marshall Islands, and in view of the existence of the 
     separate agreement regarding mutual security concluded with 
     the Government of the Republic of the Marshall Islands 
     pursuant to sections 321 and 323, that, even if this Title 
     should terminate, any attack on the Republic of the Marshall 
     Islands during the period in which such separate agreement is 
     in effect, would constitute a threat to the peace and 
     security of the entire region and a danger to the United 
     States. In the event of such an attack, the Government of the 
     United States would take action to meet the danger to the 
     United States and to the Republic of the Marshall Islands in 
     accordance with its constitutional processes.
       (c) As reflected in Article 21(1)(b) of the Trust Fund 
     Agreement, the Government of the United States and the 
     Government of the Republic of the Marshall Islands further 
     recognize, in view of the special relationship between their 
     countries, that even if this Title should terminate, the 
     Government of Republic of the Marshall Islands shall refrain 
     from actions which the Government of the United States 
     determines, after appropriate consultation with that 
     Government, to be incompatible with its authority and 
     responsibility for security and defense matters in or 
     relating to the Republic of the Marshall Islands or the 
     Federated States of Micronesia.

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

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

                               Article II

                   Conference and Dispute Resolution

     Section 421
       The Government of the United States shall confer promptly 
     at the request of the Government of the Republic of the 
     Marshall Islands and that Government shall confer promptly at 
     the request of the Government of the United States on matters 
     relating to the provisions of this Compact, as amended, or of 
     its related agreements.

     Section 422
       In the event the Government of the United States or the 
     Government of the Republic of 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:

[[Page 25908]]

       (a) An Arbitration Board shall consist of a Chairman and 
     two other members, each of whom shall be a citizen of a party 
     to the dispute. Each of the two Governments that is a party 
     to the dispute shall appoint one member to the Arbitration 
     Board. If either party to the dispute does not fulfill the 
     appointment requirements of this section within 30 days of 
     referral of the dispute to arbitration pursuant to section 
     423, its member on the Arbitration Board shall be selected 
     from its own standing list by the other party to the dispute. 
     Each Government shall maintain a standing list of 10 
     candidates. The parties to the dispute shall jointly appoint 
     a Chairman within 15 days after selection of the other 
     members of the Arbitration Board. Failing agreement on a 
     Chairman, the Chairman shall be chosen by lot from the 
     standing lists of the parties to the dispute within 5 days 
     after such failure.
       (b) Unless otherwise provided in this Compact, as amended, 
     or its related agreements, the Arbitration Board shall have 
     jurisdiction to hear and render its final determination on 
     all disputes arising exclusively under Articles I, II, III, 
     IV and V of Title One, Title Two, Title Four, and their 
     related agreements.
       (c) Each member of the Arbitration Board shall have one 
     vote. Each decision of the Arbitration Board shall be reached 
     by majority vote.
       (d) In determining any legal issue, the Arbitration Board 
     may have reference to international law and, in such 
     reference, shall apply as guidelines the provisions set forth 
     in Article 38 of the Statute of the International Court of 
     Justice.
       (e) The Arbitration Board shall adopt such rules for its 
     proceedings as it may deem appropriate and necessary, but 
     such rules shall not contravene the provisions of this 
     Compact, as amended. Unless the parties provide otherwise by 
     mutual agreement, the Arbitration Board shall endeavor to 
     render its decision within 30 days after the conclusion of 
     arguments. The Arbitration Board shall make findings of fact 
     and conclusions of law and its members may issue dissenting 
     or individual opinions. Except as may be otherwise decided by 
     the Arbitration Board, one-half of all costs of the 
     arbitration shall be borne by the Government of the United 
     States and the remainder shall be borne by the Government of 
     the Republic of the Marshall Islands.

                              Article III

                               Amendment

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

                               Article IV

                              Termination

     Section 441
       This Compact, as amended, may be terminated by mutual 
     agreement of the Government of the Republic of the Marshall 
     Islands and the Government of the United States, in 
     accordance with their respective constitutional processes. 
     Such mutual termination of this Compact, as amended, shall be 
     without prejudice to the continued application of section 451 
     of this Compact, as amended, and the provisions of the 
     Compact, as amended, set forth therein.

     Section 442
       Subject to section 452, this Compact, as amended, may be 
     terminated by the Government of the United States in 
     accordance with its constitutional processes. Such 
     termination shall be effective on the date specified in the 
     notice of termination by the Government of the United States 
     but not earlier than six months following delivery of such 
     notice. The time specified in the notice of termination may 
     be extended. Such termination of this Compact, as amended, 
     shall be without prejudice to the continued application of 
     section 452 of this Compact, as amended, and the provisions 
     of the Compact, as amended, set forth therein.

     Section 443
       This Compact, as amended, shall be terminated by the 
     Government of the Republic of the Marshall Islands, pursuant 
     to its constitutional processes, subject to section 453 if 
     the people represented by that Government vote in a 
     plebiscite to terminate the Compact. The Government of the 
     Republic of the Marshall Islands shall notify the Government 
     of the United States of its intention to call such a 
     plebiscite, which shall take place not earlier than three 
     months after delivery of such notice. The plebiscite shall be 
     administered by the Government of the Republic of the 
     Marshall Islands in accordance with its constitutional and 
     legislative processes, but the Government of the United 
     States may send its own observers and invite observers from a 
     mutually agreed party. If a majority of the valid ballots 
     cast in the plebiscite favors termination, the Government of 
     the Republic of the Marshall Islands shall, upon 
     certification of the results of the plebiscite, give notice 
     of termination to the Government of the United States, such 
     termination to be effective on the date specified in such 
     notice but not earlier than three months following the date 
     of delivery of such notice. The time specified in the notice 
     of termination may be extended.

                               Article V

                             Survivability

     Section 451
       (a) Should termination occur pursuant to section 441, 
     economic and other assistance by the Government of the United 
     States shall continue only if and as mutually agreed by the 
     Governments of the United States and the Republic of the 
     Marshall Islands, and in accordance with the countries' 
     respective constitutional processes.
       (b) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections (b) and (c) of section 354 of this Compact, as 
     amended, and the separate agreement entered into consistent 
     with those subsections, if termination occurs pursuant to 
     section 441 prior to the twentieth anniversary of the 
     effective date of this Compact, as amended, the United States 
     shall continue to make contributions to the Trust Fund 
     described in section 216 of this Compact, as amended.
       (c) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands described in 
     subsection (b) of this section, if termination occurs 
     pursuant to section 441 following the twentieth anniversary 
     of the effective date of this Compact, as amended, the 
     Republic of the Marshall Islands shall be entitled to receive 
     proceeds from the Trust Fund described in section 216 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement.

     Section 452
       (a) Should termination occur pursuant to section 442 prior 
     to the twentieth anniversary of the effective date of this 
     Compact, as amended, the following provisions of this amended 
     Compact shall remain in full force and effect until the 
     twentieth anniversary of the effective date of this Compact, 
     as amended, and thereafter as mutually agreed:
       (1) Article VI and sections 172, 173, 176 and 177 of Title 
     One;
       (2) Article One and sections 232 and 234 of Title Two;
       (3) Title Three; and
       (4) Articles II, III, V and VI of Title Four.
       (b) Should termination occur pursuant to section 442 before 
     the twentieth anniversary of the effective date of this 
     Compact, as amended:
       (1) Except as provided in paragraph (2) of this subsection 
     and subsection (c) of this section, economic and other 
     assistance by the United States shall continue only if and as 
     mutually agreed by the Governments of the United States and 
     the Republic of the Marshall Islands.
       (2) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections (b) and (c) of section 354 of this Compact, as 
     amended, and the separate agreement regarding mutual 
     security, and the Trust Fund Agreement, the United States 
     shall continue to make contributions to the Trust Fund 
     described in section 216 of this Compact, as amended, in the 
     manner described in the Trust Fund Agreement.
       (c) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and the 
     Trust Fund Agreement, if termination occurs pursuant to 
     section 442 following the twentieth anniversary of the 
     effective date of this Compact, as amended, the Republic of 
     the Marshall Islands shall continue to be eligible to receive 
     proceeds from the Trust Fund described in section 216 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement.

     Section 453
       (a) Should termination occur pursuant to section 443 prior 
     to the twentieth anniversary of the effective date of this 
     Compact, as amended, the following provisions of this 
     Compact, as amended, shall remain in full force and effect 
     until the twentieth anniversary of the effective date of this 
     Compact, as amended, and thereafter as mutually agreed:
       (1) Article VI and sections 172, 173, 176 and 177 of Title 
     One;
       (2) Sections 232 and 234 of Title Two;
       (3) Title Three; and
       (4) Articles II, III, V and VI of Title Four.
       (b) Upon receipt of notice of termination pursuant to 
     section 443, the Government of the United States and the 
     Government of the Republic of the Marshall Islands shall 
     promptly consult with regard to their future relationship. 
     Except as provided in subsections (c) and (d) of this 
     section, these consultations shall determine the level of 
     economic and other assistance, if any, which the Government 
     of the United States shall provide to the Government of the 
     Republic of the Marshall Islands for the period ending on the 
     twentieth anniversary of the effective date of this Compact, 
     as amended, and for any period thereafter, if mutually 
     agreed.
       (c) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and the 
     Trust Fund Agreement, if termination occurs pursuant to 
     section 443 prior to the twentieth anniversary of

[[Page 25909]]

     the effective date of this Compact, as amended, the United 
     States shall continue to make contributions to the Trust Fund 
     described in section 216 of this Compact, as amended.
       (d) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and the 
     Trust Fund Agreement, if termination occurs pursuant to 
     section 443 following the twentieth anniversary of the 
     effective date of this Compact, as amended, the Republic of 
     the Marshall Islands shall continue to be eligible to receive 
     proceeds from the Trust Fund described in section 216 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement.

     Section 454
       Notwithstanding any other provision of this Compact, as 
     amended:
       (a) The Government of the United States reaffirms its 
     continuing interest in promoting the economic advancement and 
     budgetary self-reliance of the people of the Republic of the 
     Marshall Islands.
       (b) The separate agreements referred to in Article II of 
     Title Three shall remain in effect in accordance with their 
     terms.

                               Article VI

                          Definition of Terms

     Section 461
       For the purpose of this Compact, as amended, only, and 
     without prejudice to the views of the Government of the 
     United States or the Government of the Republic of the 
     Marshall Islands as to the nature and extent of the 
     jurisdiction of either of them under international law, the 
     following terms shall have the following meanings:
       (a) ``Trust Territory of the Pacific Islands'' means the 
     area established in the Trusteeship Agreement consisting of 
     the former administrative districts of Kosrae, Yap, Ponape, 
     the Marshall Islands and Truk as described in Title One, 
     Trust Territory Code, section 1, in force on January 1, 1979. 
     This term does not include the area of Palau or the Northern 
     Mariana Islands.
       (b) ``Trusteeship Agreement'' means the agreement setting 
     forth the terms of trusteeship for the Trust Territory of the 
     Pacific Islands, approved by the Security Council of the 
     United Nations April 2, 1947, and by the United States July 
     18, 1947, entered into force July 18, 1947, 61 Stat. 3301, 
     T.I.A.S. 1665, 8 U.N.T.S. 189.
       (c) ``The Republic of the Marshall Islands'' and ``the 
     Federated States of Micronesia'' are used in a geographic 
     sense and include the land and water areas to the outer 
     limits of the territorial sea and the air space above such 
     areas as now or hereafter recognized by the Government of the 
     United States.
       (d) ``Compact'' means the Compact of Free Association 
     Between the United States and the Federated States of 
     Micronesia and the Marshall Islands, that was approved by the 
     United States Congress in section 201 of Public Law 99-239 
     (Jan. 14, 1986) and went into effect with respect to the 
     Republic of the Marshall Islands on October 21, 1986.
       (e) ``Compact, as amended'' means the Compact of Free 
     Association Between the United States and the Republic of the 
     Marshall Islands, as amended. The effective date of the 
     Compact, as amended, shall be on a date to be determined by 
     the President of the United States, and agreed to by the 
     Government of the Republic of the Marshall Islands, following 
     formal approval of the Compact, as amended, in accordance 
     with section 411 of this Compact, as amended.
       (f) ``Government of the Republic of the Marshall Islands'' 
     means the Government established and organized by the 
     Constitution of the Republic of the Marshall Islands 
     including all the political subdivisions and entities 
     comprising that Government.
       (g) ``Government of the Federated States of Micronesia'' 
     means the Government established and organized by the 
     Constitution of the Federated States of Micronesia including 
     all the political subdivisions and entities comprising that 
     Government.
       (h) The following terms shall be defined consistent with 
     the 1978 Edition of the Radio Regulations of the 
     International Telecommunications as follows:
       (1) ``Radiocommunication'' means telecommunication by means 
     of radio waves.
       (2) ``Station'' means one or more transmitters or receivers 
     or a combination of transmitters and receivers, including the 
     accessory equipment, necessary at one location for carrying 
     on a radiocommunication service, or the radio astronomy 
     service.
       (3) ``Broadcasting Service'' means a radiocommunication 
     service in which the transmissions are intended for direct 
     reception by the general public. This service may include 
     sound transmissions, television transmissions or other types 
     of transmission.
       (4) ``Broadcasting Station'' means a station in the 
     broadcasting service.
       (5) ``Assignment (of a radio frequency or radio frequency 
     channel)'' means an authorization given by an administration 
     for a radio station to use a radio frequency or radio 
     frequency channel under specified conditions.
       (6) ``Telecommunication'' means any transmission, emission 
     or reception of signs, signals, writings, images and sounds 
     or intelligence of any nature by wire, radio, optical or 
     other electromagnetic systems.
       (i) ``Military Areas and Facilities'' means those areas and 
     facilities in the Republic of the Marshall Islands reserved 
     or acquired by the Government of the Republic of the Marshall 
     Islands for use by the Government of the United States, as 
     set forth in the separate agreements referred to in section 
     321.
       (j) ``Tariff Schedules of the United States'' means the 
     Tariff Schedules of the United States as amended from time to 
     time and as promulgated pursuant to United States law and 
     includes the Tariff Schedules of the United States Annotated 
     (TSUSA), as amended.
       (k) ``Vienna Convention on Diplomatic Relations'' means the 
     Vienna Convention on Diplomatic Relations, done April 18, 
     1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.

     Section 462
       (a) The Government of the United States and the Government 
     of the Republic of the Marshall Islands previously have 
     concluded agreements, which shall remain in effect and shall 
     survive in accordance with their terms, as follows:
       (1) Agreement Between the Government of the United States 
     and the Government of the Marshall Islands for the 
     Implementation of Section 177 of the Compact of Free 
     Association;
       (2) Agreement Between the Government of the United States 
     and the Government of the Marshall Islands by Persons 
     Displaced as a Result of the United States Nuclear Testing 
     Program in the Marshall Islands;
       (3) Agreement Between the Government of the United States 
     and the Government of the Marshall Islands Regarding the 
     Resettlement of Enjebi Island;
       (4) Agreement Concluded Pursuant to Section 234 of the 
     Compact; and
       (5) Agreement Between the Government of the United States 
     and the Government of the Marshall Islands Regarding Mutual 
     Security Concluded Pursuant to Sections 321 and 323 of the 
     Compact of Free Association.
       (b) The Government of the United States and the Government 
     of the Republic of the Marshall Islands shall conclude prior 
     to the date of submission of this Compact to the legislatures 
     of the two countries, the following related agreements which 
     shall come into effect on the effective date of this Compact, 
     as amended, and shall survive in accordance with their terms, 
     as follows:
       (1) Federal Programs and Services Agreement Between the 
     Government of the United States of America and the Government 
     of the Republic of the Marshall Islands Concluded Pursuant to 
     Article III of Title One, Article II of Title Two (including 
     Section 222), and Section 231 of the Compact of Free 
     Association, as Amended, which include:
       (i) Postal Services and Related Programs;
       (ii) Weather Services and Related Programs;
       (iii) Civil Aviation Safety Service and Related Programs;
       (iv) Civil Aviation Economic Services and Related Programs;
       (v) United States Disaster Preparedness and Response 
     Services and Related Programs; and
       (vi) Telecommunications Services and Related Programs.
       (2) Agreement Between the Government of the United States 
     of America and the Government of the Republic of the Marshall 
     Islands on Extradition, Mutual Assistance in Law Enforcement 
     Matters and Penal Sanctions Concluded Pursuant to Section 175 
     (a) of the Compact of Free Association, as Amended;
       (3) Agreement Between the Government of the United States 
     of America and the Government of the Republic of the Marshall 
     Islands on Labor Recruitment Concluded Pursuant to Section 
     175 (b) of the Compact of Free Association, as Amended;
       (4) Agreement Concerning Procedures for the Implementation 
     of United States Economic Assistance Provided in the Compact, 
     as Amended, of Free Association Between the Government of the 
     United States of America and the Government of the Republic 
     of the Marshall Islands;
       (5) Agreement Between the Government of the United States 
     of America and the Government of the Republic of the Marshall 
     Islands Implementing Section 216 and Section 217 of the 
     Compact, as Amended, Regarding a Trust Fund;
       (6) Agreement Regarding the Military Use and Operating 
     Rights of the Government of the United States in the Republic 
     of the Marshall Islands Concluded Pursuant to Sections 321 
     and 323 of the Compact of Free Association, as Amended; and,
       (7) Status of Forces Agreement Between the Government of 
     the United States of America and the Government of the 
     Republic of the Marshall Islands Concluded Pursuant to 
     Section 323 of the Compact of Free Association, as Amended.

     Section 463
       (a) Except as set forth in subsection (b) of this section, 
     any reference in this Compact, as amended, to a provision of 
     the United States Code or the Statutes at Large of the United 
     States constitutes the incorporation of the language of such 
     provision into this Compact, as amended, as such provision 
     was in force on the effective date of this Compact, as 
     amended.
       (b) Any reference in Article IV and VI of Title One, and 
     Sections 174, 175, 178 and 342

[[Page 25910]]

     to a provision of the United States Code or the Statutes at 
     Large of the United States or to the Privacy Act, the Freedom 
     of Information Act, the Administrative Procedure Act or the 
     Immigration and Nationality Act constitutes the incorporation 
     of the language of such provision into this Compact, as 
     amended, as such provision was in force on the effective date 
     of this Compact, as amended, or as it may be amended 
     thereafter on a non-discriminatory basis according to the 
     constitutional processes of the United States.

                              Article VII

                         Concluding Provisions

     Section 471
       Both the Government of the United States and the Government 
     of the Republic of the Marshall Islands shall take all 
     necessary steps, of a general or particular character, to 
     ensure, no later than the entry into force date of this 
     Compact, as amended, the conformity of its laws, regulations 
     and administrative procedures with the provisions of this 
     Compact, as amended, or, in the case of subsection (d) of 
     section 141, as soon as reasonably possible thereafter.

     Section 472
       This Compact, as amended, may be accepted, by signature or 
     otherwise, by the Government of the United States and the 
     Government of the Republic of the Marshall Islands.
       IN WITNESS WHEREOF, the undersigned, duly authorized, have 
     signed this Compact of Free Association, as amended, which 
     shall enter into force upon the exchange of diplomatic notes 
     by which the Government of the United States of America and 
     the Government of the Republic of the Marshall Islands inform 
     each other about the fulfillment of their respective 
     requirements for entry into force.
       DONE at Majuro, Republic of the Marshall Islands, in 
     duplicate, this thirtieth (30) day of April, 2003, each text 
     being equally authentic.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Iowa (Mr. Leach) and the gentleman from American Samoa (Mr. 
Faleomavaega) each will control 20 minutes.
  The Chair recognizes the gentleman from Iowa (Mr. Leach).


                             General Leave

  Mr. LEACH. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on this joint resolution.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Iowa?
  There was no objection.
  Mr. LEACH. Madam Speaker, I yield myself such time as I may consume.
  I rise today to present to the House joint resolution 63, legislation 
that reauthorizes the Compacts of Free Association with the Federated 
States of Micronesia and the Republic of the Marshall Islands.
  Because of the unique relationship between the United States and the 
Freely Associated States, the legislation before us today involves an 
extraordinary array of Federal programs, agencies, and policies.

                              {time}  1700

  As a consequence, this joint resolution is the product of intensive 
bipartisan consultations between a panoply of different committees of 
jurisdictions, all of which have contributed to making this a 
compelling legislative product.
  In this regard, I would like to thank, in particular, the leadership 
of the chairman of the Committee on International Relations, the 
gentleman from Illinois (Mr. Hyde) and our ranking member, the 
gentleman from California (Mr. Lantos), as well as the distinguished 
ranking member of the Committee on International Relations Subcommittee 
on Asia and the Pacific, the gentleman from American Samoa (Mr. 
Faleomavaega) whose expertise in island affairs has been invaluable to 
this Member and to our entire committee.
  Let me also acknowledge the exceptional leadership of the Committee 
on Resources, specifically the chairman, the gentleman from California 
(Mr. Pombo) and the ranking member, the gentleman from West Virginia 
(Mr. Rahall) and their staff for working so closely with us to ensure 
that the amended compacts would not only be considered on an 
expeditious basis, but enjoy the support of Members as well as the 
administration and the Freely Associated States.
  We also are appreciative of the prompt consideration of this bill by 
the Committee on the Judiciary, as well as the input of the Committee 
on Ways and Means.
  In addition, we are most appreciative of the cooperation of the 
Committee on Education and the Workforce, as well as the Committee on 
Appropriations working closely with us on education funding issues of 
keen interest and concern to many Members as well as the people of the 
FSM and RMI.
  Madam Speaker, here I note that under general leave, the gentleman 
from Illinois (Mr. Hyde) intends to insert into the record a letter to 
the Committee on International Relations from the Subcommittee on 
Appropriations for Labor, Health, and Human Services regarding funding 
for certain supplemental education programs as well as an exchange of 
letters confirming certain understandings on this joint resolution with 
the Committee on Ways and Means.
  Madam Speaker, as my colleagues may be aware, the economic assistance 
provisions of the current Compact with Micronesia and the Marshall 
Islands expired in 2001, but were extended for 2 years while the United 
States renegotiated the expiring provisions with these island 
countries, also known as the Freely Associated States.
  H.J. Res. 63, which is before us, is the authorizing and implementing 
legislation for the Amended Compacts of Free Association. Unless this 
resolution becomes law, critical portions of the original Compact of 
Free Association will expire with serious consequences for those 
nations and for United States' interests in the Pacific.
  By background, the United States has shared a uniquely close and 
mutually beneficial relationship with the people of the Marshall 
Islands, as well as Micronesia, for the past half-century. For nearly 
40 years after the Second World War, the United States administered 
both islands as United Nations Trust Territories. In 1986, Micronesia 
and the Marshall Islands chose to become sovereign states and entered 
into a Compact of Free Association with the United States. The Compact 
was intended to ensure self-government for the new island nations, to 
assist them in their economic development towards self-sufficiency, and 
to advance mutual security objectives.
  It is my strong view that the interests of the people of the U.S. and 
these specific islands have been well-served by the Compact. Our former 
Trust Territories have emerged as sovereign democracies; America's 
strategic interest in the Western Pacific has been protected; and the 
bonds of friendship forged during World War II have only strengthened 
with the passage of time. Indeed, a significant number of Compact 
citizens have served honorably in the United States Armed Forces, 
including in the war on Iraq.
  Among other things H.J. Res. 63: one, secures expiring U.S. defense 
interests and extends U.S. access to the geographically unique 
Kwajalein Atoll Range, the key U.S. missile and missile defense testing 
site for up to an additional 70 years; two, it continues U.S. 
assistance to the FSM and RMI for 20 years, but fundamentally 
restructures the way it is provided to increase fiscal accountability 
and move it towards budgetary self-sufficiency; three, it prepares for 
the end of U.S. grant assistance in 2023 by capitalizing a U.S.-
controlled trust fund for each nation; and, four, it modifies the 
unique U.S. immigration status enjoyed by FSM and RMI citizens, to 
address concerns primarily related to the United States homeland 
security.
  With respect to FEMA, the bill before us provides Compact countries 
continued access to FEMA programs through 2013, including essential 
public infrastructure rehabilitation programs. The Office of Foreign 
Disaster Assistance, which is part of U.S. Agency for International 
Development, is also authorized to provide emergency assistance to the 
FAS.
  In an agreement reached with the Committee on Education and the 
Workforce H.J. Res. 63 would continue student eligibility under the 
Pell Grant program of the Higher Education Act, continue institution 
eligibility for certain competitive grant programs administered by the 
Secretary of Education, and create a new discretionary

[[Page 25911]]

grant program for education in lieu of receipt of several current 
discretionary domestic education programs.
  This amount of roughly $20 million annually is in addition to the 
grant assistance otherwise provided through the Compact and would 
replace current Federal programs such as Head Start, Special Education, 
and others.
  Finally, let me just conclude by thanking Jamie McCormick and Douglas 
Anderson, counsels to the Subcommittee on Asia and Pacific for their 
exceptional assistance to me and the committee in helping to shepherd 
this complex measure through the legislative process.
  Again, before yielding to my distinguished friend, the gentleman from 
American Samoa (Mr. Faleomavaega), let me stress to the House what an 
honor it has been to serve with him and what a great addition his 
judgment has made to the committee and to the Congress on this 
particular issue, as well as so many others.
  Madam Speaker, I reserve the balance of my time.
  Mr. FALEOMAVAEGA. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I would like to extend my gratitude to the chairman of 
the Committee on International Relations, the gentleman from Illinois 
(Mr. Hyde), and the senior ranking member of the Committee on 
International Relations, the gentleman from California (Mr. Lantos), my 
good friend, the chairman of the Committee on Resources, the gentleman 
from California (Mr. Pombo), and our senior ranking member of the 
Committee on Resources, the gentleman from West Virginia (Mr. Rahall), 
and the chairman of Committee on International Relations Subcommittee 
on Asia and the Pacific, the gentleman from Iowa (Mr. Leach), my good 
friend, for working so diligently these past several months to address 
some of the very important concerns raised by the leaders of the 
Republic of the Marshall Islands and the Federated States of Micronesia 
as it relates to the proposed Compact of Free Association or H.J. Res. 
63.
  Madam Speaker, the Compacts of Free Association commenced in 1986 
between the Federated States of Micronesia and the Republic of the 
Marshall Islands and the United States. In brief, the United States 
agrees to provide Federal funding to the FSM and the RMI and, in turn, 
both agree to provide the United States with certain defense rights, 
now including use of 11 defense sites on Kwajalein Atoll, where the 
U.S. Department of Defense has established a multibillion dollar 
antiballistic missile testing facility.
  In October 2001, portions of the Compact expired and representatives 
from the FSM, the RMI, and the Department of the Interior began 
negotiating an extension of these provisions, including also the 
Department of State. Earlier this year, the Department of the Interior 
sent Congress a negotiated product to be considered as a 
reauthorization of the Compact of Free Association. However, key 
provisions, including the funding of the Pell Grants and FEMA 
assistance, were excluded from the agreement. And over the last several 
months, my colleagues and I have been working closely with 
representatives from both the FSM and RMI to address these concerns.
  Madam Speaker, the good people of the Federated States of Micronesia 
and the Republic of the Marshall Islands are in need of, and indeed 
deserve, U.S. support in assistance in building local capacity. As my 
colleagues know, education is invaluable to building self-sufficiency 
and local capacity, and, ultimately, will contribute to bolstering the 
economy of these developing nations. This is why I am pleased that the 
bill before us today now provides the Freely Associated States with 
Pell Grant assistance, hopefully, and also to recognize the importance 
of FEMA assistance to these islands.
  The truth is, Madam Speaker, the Freely Associated States have made 
many sacrifices and contributions on behalf of the United States. In 
fact, the U.S. used the Marshall Islands as a nuclear testing ground 
and detonated more than 67 nuclear bombs, including the first hydrogen 
bomb which was one thousand times more powerful than the bombs dropped 
in Hiroshima and Nagasaki during World War II. The results were, and 
continue to be, devastating to the residents of the Marshall Islands.
  As a Pacific Islander, I am pleased that H.J. Res. 63 acknowledges 
the contributions and sacrifices made by the Federated Associated 
States and also addresses the needs and concerns of the people of 
Federated States of Micronesia and the Republic of the Marshall 
Islands. I am also pleased that my colleagues have worked closely with 
me to make sure that American Samoa's tuna industry was protected in 
the process of these negotiations.
  The outcome of H.J. Res. 63 will determine our relationship with the 
FSM and RMI for the next 20 years and will also affect American Samoa's 
tuna industry for generations to come.
  With the approval of these Compacts, the United States will further 
solidify our relationship with these Western Pacific nations, both of 
which are close allies, and make an ongoing contribution to America's 
national defense.
  To understand the importance of renewing the Compacts we must 
remember our Nation's history in the region. During World War II, 
American soldiers liberated the Pacific island by island in brutal and 
bloody battles. After the war, the United States administered 
Micronesia, and we have maintained a vitally important military 
installation on Kwajalein Atoll.
  In the 1940s and 1950s, the United States conducted both underwater 
and atmospheric nuclear tests in the Marshalls. And as I indicated 
earlier, some 67 nuclear detonations were held during that period. I 
remember distinctly, in 1954, when we detonated the first hydrogen 
bomb, I indicated earlier that that nuclear detonation was a thousand 
times more powerful than the nuclear bombs that we dropped in Hiroshima 
and Nagasaki.
  One of the serious issues that we still have not properly addressed, 
and, hopefully, in the coming months, that we will address seriously, 
the needs of some several hundred Marshallese men, women, and children 
who were directly exposed to nuclear contamination at the time of 
detonation of this hydrogen bomb in the 1950s.
  Madam Speaker, since the independence of the Marshalls and Micronesia 
in 1986, the ties between our nations have grown even stronger. When 
Congress approved the Compact of Free Association in 1986, we received 
a good bargain. Funds would flow to the island nations in return for a 
``strategic denial'' and a ``defense veto.'' The Kwajalein Army Base is 
vitally important to America's missile tests and as a listening post to 
the world.
  Hundreds of Marshallese and Micronesians are currently defending 
American interests even in Iraq. I believe approximately 1,000 of our 
fellow Micronesians are in the military. Several have sacrificed their 
lives in the war in Iraq, even at this point in time as I speak. Just 
the other day Mr. Hilario Bermanis, a Micronesian, became an American 
citizen after losing a left arm and both legs while serving in the Army 
in Iraq.
  While we undoubtedly furthered our national security interests with 
approval of the Compact, the United States insufficiently monitored 
expenditure of funds and did little to promote economic development in 
the islands.
  The Compacts before the House today ensure that funds will be better 
spent in the future, will promote sound economic development and will 
focus on education and health care. They also establish trust funds for 
both nations to ensure that they can become self-sufficient in 20 
years.
  Madam Speaker, H.J. Res. 63 promotes our Nation's national security 
interests and furthers our relationship with the Marshalls and 
Micronesia. This is a bipartisan effort. And, again, I extend my 
gratitude and appreciation to the gentleman from Iowa (Mr. Leach), my 
good friend, for his tremendous support and leadership in bringing this 
piece of legislation to the floor.
  Madam Speaker, I yield such time she might consume to the gentlewoman 
from Guam (Ms. Bordallo), my good friend.
  Ms. BORDALLO. Madam Speaker, 56 years ago the United States assumed

[[Page 25912]]

an international obligation to protect and promote the development of 
two island groups that straddle much of the vast Pacific Ocean: The 
Federated States of Micronesia and the Republic of the Marshall 
Islands.

                              {time}  1715

  As strategic battle grounds in World War II, these islands were 
liberated from enemy occupation by U.S. forces. In the aftermath of 
that pivotal period in world history, they emerged from a League of 
Nations mandate administered by Japan to become a United Nations' Trust 
Territory with the United States as trustee. Over the next 40 years 
their socio-economic status improved and their developing economies 
would begin to take root.
  Then, in 1986, Congress passed, and President Reagan signed, a 
Compact of Free Association with them. The compact allowed for a new 
relationship to be cultivated, and it afforded the FSM and the RMI the 
ability to become sovereign nation states in their own right. In the 
years since, they have been welcome to the international table in their 
own name and their alliance with the United States today could not be 
stronger.
  While other nations who receive foreign aid consistently oppose us in 
the United Nations, the FSM and the RMI have been among our most 
steadfast of allies. Seventeen years after the original agreement, we 
are here today, Madam Speaker, to renew the compact. It is in the 
spirit of friendship that we renew an agreement that seeks to honor and 
build upon the benefits our respective countries have derived from the 
original compact.
  So I rise today to support H.J. Res. 63 for four principal reasons: 
first, because it advances U.S. defense interests by providing a 50-
year lease extension for U.S. access to Kwajalein Atoll in the RMI, 
home of the Ronald Reagan Missile Testing Facility and grants the U.S. 
the right of strategic denial.
  Second, because it reaffirms the right of FSM and RMI citizens to 
migrate freely to the United States for work, education, and residence 
and improves the means by which the Federal Government addresses the 
impact of migration in affected U.S. jurisdictions, including Guam, the 
Commonwealth of the Northern Mariana Islands, and the State of Hawaii.
  Third, because it continues for the next 20 years critical financial 
assistance to facilitate capacity-building and self-sufficiency in the 
FSM and the RMI while ensuring greater accountability oversight and 
effectiveness, as well as it be continuous Pell grant eligibility.
  Finally, and most importantly, because it fulfills our moral 
obligation to the people of Micronesia and the Marshalls.
  Guam is the closest American neighbor to the FSM and RMI, and we have 
seen the progress that they have made under the original compact. Guam 
has welcomed and embraced those FSM and RMI citizens who have availed 
themselves of their compact-provided right to migrate freely to the 
United States for the pursuit out of educational and other 
opportunities. This migration has come at a financial cost to the 
Government of Guam. As in many cases, migrating FSM and RMI citizens do 
not directly contribute to the local revenue base that sustains the 
education, the health, housing and other social services which they 
have sought.
  Guam has been impacted significantly more than any other 
jurisdictions by this federally negotiated and internationally 
implemented agreement. As impact costs have increased, Guam has sought 
greater and improved assistance from the Federal Government. And that 
is why I am pleased that H.J. Res. 63 includes provisions based upon 
legislation that I introduced, namely H.R. 2522, and H.R. 2716 to 
address compact impact needs.
  Madam Speaker, I want to go on record this afternoon to commend the 
gentleman from Illinois (Mr. Hyde), the gentleman from Iowa (Mr. 
Leach), the gentleman from California (Mr. Lantos), and my friend, the 
gentleman from American Samoa (Mr. Faleomavaega), for shepherding this 
legislation through this challenging process. I also want to express my 
gratitude to our chairman of the Committee on Resources, the gentleman 
from California (Mr. Pombo), and the ranking member, the gentleman from 
West Virginia (Mr. Rahall), for their bipartisan leadership in 
addressing those matters important to myself and other members of the 
Committee on Resources. I also want to thank all of the staff in all 
the different offices who worked so hard so that we could realize this 
day today.
  Madam Speaker, I urge my colleagues to vote for H.J. Res. 63, vote 
``yes'' for our national defense, vote ``yes'' to fulfill our moral 
obligations to the people of the Pacific, vote ``yes'' to help develop 
their economies, and vote ``yes'' to advance our relationship in this 
new century.
  Guam is the closest American neighbor to the FSM and the RMI, and we 
have seen the progress that they have made under the original Compact. 
Guam has welcomed and embraced those FSM and RMI citizens who have 
availed themselves of their Compact-provided right to migrate freely to 
the United States for the pursuit of educational and other 
opportunities. This migration has come at a financial cost to the 
Government of Guam, as in many cases, migrating FSM and RMI citizens do 
not directly contribute to the local revenue base that sustains the 
educational, health, and other social services on Guam. Guam has been 
impacted more significantly than any other jurisdiction by this 
Federally-negotiated and internationally-implemented agreement. As 
impact costs have increased, Guam has sought greater and improved 
assistance from the Federal Government. Congress has responded with 
some assistance, termed Compact-impact aid, and appropriated such aid 
from time to time over the past seventeen years in varying amounts, but 
never at levels to cover the costs actually realized or with the 
consistency to adequately help shoulder the adverse financial 
consequences. This is why I strongly advocated for amending the Compact 
law (Public Law 99-239) during this reauthorization process to ensure 
the immigration policy goes hand-in-hand with an adequate reimbursement 
policy for Compact-impact costs.
  Among the first pieces of legislation I introduced as a new Member of 
Congress was H.R. 2522, a bill that would authorize the reduction, 
release, or waiving of amounts owed by the Government of Guam to the 
United States to offset past unreimbursed Compact-impact expenses, and 
H.R. 2716, a bill that proposes new methods and more reliable means to 
provide for adequate Compact-impact aid in the future. H.R. 2522 was 
heard in the Resources Committee in July, and the Governor of Guam, 
Felix Camacho, and the Speaker of the Guam Legislature, Ben Pangelinan, 
traveled to Washington, D.C. to testify about the Compact-impact costs 
in Guam.
  In enacting the original Compact law in 1986, Congress stated that 
these adverse consequences would be reimbursed by Compact-impact aid. 
The General Accounting Office and a previous report by Ernst and Young 
indicate that the unreimbursed costs accrued to date in Guam are 
approximately $187 million. I am pleased that H.R. 2522, in a modified 
form, has been agreed to by the Resources Committee and has been 
incorporated into H.J. Res. 63. Section 104(e)(1) of this legislation 
would provide for a process by which the President could use debt 
relief as a means to reconcile past unreimbursed impact expenses for 
Guam and the Commonwealth of the Northern Mariana Islands.
  I believe that such authority could be exercised by the President in 
the public interest. One of the examples of debts owed by Guam which 
was brought to my attention is the amounts owed by the Guam Telephone 
Authority (GTA) for infrastructure improvements to Guam's telephone 
system in the 1970s and 1980s. GTA currently owes $105 million to the 
Rural Utilities Service. This debt has been an impediment to recent 
efforts by Guam to privatize the telephone authority, which now has the 
distinction of being the last government-owned telephone utility in the 
nation. The existing debt has caused potential buyers to avoid GTA due 
to its debt service ratio of 0.70 to 1, a ratio well below the 1 to 1 
ratio preferred by investors. Furthermore, the annual debt service 
costs for GTA's loans make it difficult to attract buyers.
  The reforms passed by Congress in the 1996 Telecommunications Reform 
Act eroded GTA's ability to compete in the marketplace. Telephone 
deregulation opened up the industry to competition, and in Guam, GTA 
was constrained by local and federal laws from competing while losing 
its own advantages as a local monopoly.
  Debt relief for GTA to offset unreimbursed impact expenses would make 
it possible to

[[Page 25913]]

privatize the utility and to end further Federal subsidies. The Federal 
investment in infrastructure has already paid off in debt service 
payments by Guam and in minimal Federal reconstruction costs for GTA 
after typhoons in the past two decades. Moreover, without the debt 
relief that Guam seeks, it may be more difficult to privatize the 
utility because the net return from the sale of GTA may not be 
substantial enough to make it an attractive option. Due to the economic 
recession in Guam, some opponents of privatization have already likened 
this effort to unloading GTA at fire sale prices and have argued that 
the Guam taxpayers have invested too much in this utility to let it go 
for too little, irrespective of the actual market value of this 
depreciated telephone utility.
  The authority for debt relief contained within H.J. Res. 63 may be 
prudently exercised by the President to set appropriate conditions for 
the relief in order to make the previous Federal investment and the 
Federal relief sought worthwhile. In this regard, the relief for GTA's 
debts could be made contingent on the Government of Guam's commitment 
to privatize the utility and use the proceeds from the sale of GTA for 
other capital improvement needs on Guam such as schools, water and 
power infrastructure, and health facilities. The debt relief 
contemplated by this provision is not intended to exacerbate the 
economic situation of Guam rather it is intended to promote good public 
policy and stimulate the economy.
  Guam has suffered from a series of typhoons dating back to 1997. Any 
amounts owed by the Government of Guam to the Federal Government for 
Federal Emergency Management Agency (FEMA) assistance can be considered 
an offset for unreimbursed Compact-impact costs. In addition, the 
Government of Guam continues to request a reconciliation of FEMA 
assistance for Supertyphoon Paka, which struck Guam in December 1997, 
and for which the Government of Guam believes a significant amount of 
money is owed to cover debris collection, removal and disposal work in 
the aftermath of the storm.
  Examples of other debts that could be retired or reduced to offset 
unreimbursed impact expenses for Guam are the $9 million owed by the 
Guam Waterworks Authority to the Department of the Navy for water 
consumption and $3 million owed by the Guam Community College to the 
Department of Education for construction of a student housing facility.
  Beyond this reconciliation provision, I am also pleased that the 
Resources Committee agreed to provisions contained within H.R. 2716, 
and incorporated them into H.J. Res. 63, so that for the next twenty 
years we avoid the great disparity between impact costs and realized 
reimbursement. Providing for $30 million in annual mandatory Compact-
impact aid for the affected jurisdictions is a significant improvement 
over the current mechanism for Compact-impact reimbursement. Although I 
continue to question the Federal obligation to the affected 
jurisdictions, I am pleased that H.J. Res. 63 includes authorizing 
language that would allow for additional Compact-impact aid, above and 
beyond the $30 million, in future years to address reimbursement needs. 
Further, to help Congress accurately assess actual Compact-impact 
costs, I am pleased the Resources Committee restored a reporting 
requirement. I am equally pleased the Resources Committee retained 
referral authority for medical facilities of the Department of Defense. 
Together, these provisions should set us on the right course for the 
next twenty years.
  My colleagues, Mr. Abercrombie, Mr. Case, Mr. Gallegly, Mr. Rehberg, 
Mr. Acevedo-Vila, Mr. Grijalva, and Mr. Pallone, along with Mr. 
Faleomavaega, were also there for Guam throughout this process and 
helped me to ensure the Guam Compact-impact reconciliation provision 
was included. I thank them as well for their support.
  Mr. FALEOMAVAEGA. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, as I do not have any further speakers, I would like to 
express a few sentiments. It is very easy for those of us managing 
pieces of legislation and somewhat proclaiming our own sense of 
expertise by commenting or making speeches. As my good friend, the 
gentleman from Iowa (Mr. Leach), had given an indication earlier, there 
has been tremendous support from members of the professional staff of 
the two committees who have done an outstanding job in helping putting 
this piece of legislation together. Again, I would be remiss if I do 
not express my sense of appreciation to Mr. Doug Anderson and also Mr. 
Jamie McCormick on the majority side on the Committee on International 
Relations, as well as Mr. Peter Yeo and Dr. Lisa Williams, and also Dr. 
Bob King. Also on the Committee on Resources we have Mr. Tony Babauta 
and Mr. Chris Fluhr of the Committee on Resources, and also Mr. Chris 
Foster from the gentleman from California's (Mr. Pombo) office, and the 
outstanding contributions they have made as professional members of 
both committees in putting this legislation and certainly giving us 
positive advice now that we find ourselves agreeing to some of the 
important elements of this bill that is now before us.
  We sincerely hope that our colleagues will lend their support to this 
important legislation.
  Madam Speaker, I yield back the balance of my time.
  Mr. LEACH. Madam Speaker, I yield myself such time as I may consume.
  First, I want to concur in the sentiments of my good friend, the 
gentleman from American Samoa (Mr. Faleomavaega) with regard to the 
professionalism of the staff on Capitol Hill.
  Prior to yielding back my time, I would like to specifically 
recognize the exceptional contribution of the chairman of the Committee 
on Resources, the gentleman from California (Mr. Pombo). The 
cooperation of his committee was crucial to our putting together this 
resolution.
  Madam Speaker, finally, consideration of this resolution is 
historically significant for the Pacific region. It provides a moment 
for the people of the United States and the Freely Associated States to 
celebrate our warm friendship and look to an enhanced and mutually 
respectful relationship.
  Mr. FALEOMAVAEGA. Madam Speaker, will the gentleman yield?
  Mr. LEACH. I yield to the gentleman from American Samoa.
  Mr. FALEOMAVAEGA. Madam Speaker, I also want to note to the benefit 
of our colleagues that just this last weekend our President visited the 
State of Hawaii and he had an opportunity to meet with the leaders of 
these island nations at the East-West Center and the concerns expressed 
collectively by these leaders regarding homeland security. The security 
issues now of terrorism and issues of this nature are vitally important 
to this region of the world; and, again, this is all in concert with 
the efforts that we are making to make sure that we continue to 
establish good relations with our friends from Micronesia. I again 
thank my good friend, the gentleman from Iowa (Mr. Leach), for his 
tremendous support and leadership in bringing this legislation to the 
floor, again, sincerely hoping our colleagues will support this 
legislation.
  Mr. LEACH. Reclaiming my time, Madam Speaker, let me stress again the 
importance of this resolution. It has strong bipartisan support, I urge 
our colleagues to give this their unanimous support. This renewed 
compact is critical to the region.
  Ms. WATSON. Madam Speaker, President Clinton gave me the privilege to 
represent the American people as Ambassador to the Federated States of 
Micronesia. I have a deep respect for the Island nations, and I am 
pleased that we have passed the new compact legislation out of the 
House.
  Although most of the contentious issues in the compact have been 
addressed, the funding allocated for education concerns me. The RMI and 
FSM children have only just begun to benefit from the establishment of 
an integrated education system. I urge Congress to monitor education 
appropriations for the compact and stay intent on our obligations.
  In my former profession of teaching I have witnessed the impact of 
early structured education. Young students are much better equipped to 
enter the educational system when they are exposed to education at an 
early age. The educational funding that Chairman Regula has offered to 
support is critical to keep effective programs in place.
  I strongly support those provisions in this compact that provide for 
continued Pell Grant eligibility for the FAS. It will bolster the 
ability of the FAS to cultivate education. The elimination of Pell 
Grant assistance would have decimated the college system in the FAS 
altogether. A large portion of the operating funds for the College of 
Micronesia are obtained through Pell Grants.
  One other important area that I would like to point out is the 
reinstatement of FEMA assistance. It has been placed back into the 
Compact for infrastructure purposes and major catastrophes. USAID is 
not equipped to deal

[[Page 25914]]

with all of the problems that arise on small islands nor do they have 
the ready response to help in a timely fashion. As we move forward with 
our unique relationship with the FAS I hope the United States Congress 
will be supportive and receptive to the needs of our friends.
  In conclusion, with a few minor adjustments, this Congress will 
produce long lasting legislation to be proud of. I urge my colleagues 
to understand the importance of the FAS. I support this bill and look 
to endorse the final product as the other body considers the Compact.
  Mr. BEREUTER. Madam Speaker, this Member rises in strong support for 
H.J. Res. 63, the Compacts of Free Association Amendments Act of 2003. 
Additionally, this Member would like to extend thanks to the very 
distinguished gentleman from Iowa, the Chairman of the International 
Relations Subcommittee on Asia and the Pacific, (Mr. Leach) for his 
efforts to conduct oversight of the Compact negotiations and ultimately 
to bring this measure to the Floor today. Both the gentleman and his 
staff on the Subcommittee are to be commended for their vigilance. 
Furthermore, this Member would like to thank the distinguished 
gentleman from California (Mr. Pombo), the Chairman of the Resources 
Committee, which also has jurisdiction over the Compacts of Free 
Association for his efforts in guiding this resolution through the 
legislative process.
  When this Member served as Chairman of the International Relations 
Subcommittee on Asia and the Pacific, he requested a Government 
Accounting Office (GAO) investigation into the use of Compact of Free 
Association funds. Indeed, this Member traveled to the Republic of the 
Marshall Islands (RMI) and the Federated States of Micronesia (FSM) 
many years ago and was disturbed by the conditions of schools, roads, 
and public buildings despite the infusion of U.S. aid. Unfortunately, 
the GAO reports certainly corroborated this Member's grave concerns 
about pervasive fraud, corruption, and waste of funds by the RMI 
Government and the poor planning and construction of infrastructure in 
both the RMI and the FSM.
  This resolution would approve the amended Compact of Free 
Association, the agreement through which the United States provides 
assistance to the people of the RMI and the FSM. Overall, the revised 
Compact addresses many of the concerns which this Member has expressed 
for many years about this assistance and development programs for these 
two island groups which are two of the four Trust Territories for which 
the United States assumed responsibility after World War II. Of course, 
Congress must continue its oversight role to ensure that the people of 
RMI and FSM get the aid and services which they deserve and that the 
funds are not diverted for misuse by government officials in those 
countries.
  In closing, Madam Speaker, this Member encourages his colleagues to 
vote for H.J. Res. 63.
  Mr. BOEHNER. Madam Speaker, I rise in support of H.J. Res. 63 which 
will renew the Compact of Free Association with both the Federated 
States of Micronesia (FSM) and the Republic of the Marshall Islands 
(RMI). I am pleased that Chairman Hyde and Chairman Pombo worked with 
me to find a solution to continue funding for education programs in the 
Federated States of Micronesia and the Republic of the Marshall 
Islands.
  H.J. Res. 63 provides a new supplemental education discretionary 
grant for the FSM and the RMI to receive funding from one source. This 
supplemental education grant provides funds for the FSM and RMI to use 
for education programs under Title 1 of the Elementary and Secondary 
Education Act, part B of IDEA, Title 1 of the Workforce Investment Act, 
the Adult Education and Family Literacy Act, Title 1 of the Carl D. 
Perkins Vocational and Technical Education Act and the Head Start Act. 
These funds will be subject to the Fiscal Procedures Act negotiated by 
the U.S. government and the FSM and the RMI. Specifically, the U.S. 
Department of Education, as a member of the Joint Economic Management 
Team, will ensure that academic performance measures are developed for 
standards and assessments appropriate for the FSM and RMI in order to 
increase academic achievement for the children receiving educational 
services under this grant. H.J. Res. 63 also continues eligibility for 
the FSM and RMI under the Pell Grant program and continues to allow the 
FSM and RMI to compete for competitive grants at the U.S. Department of 
Education.
  Madam Speaker, I want to be clear. This new discretionary 
supplemental education grant is the source, and only source, for funds 
for education programs for the FSM and RMI. They are no longer eligible 
to receive separate funding from any formula grant run by the 
Department of Education, the Department of Labor or the Head Start Act 
administered by the Department of Health and Human Services. In my 
view, this new supplemental education grant is a signal that funds for 
the FSM and RMI should be addressed within the Compact, rather than 
through a disjointed system of domestic formula grants. The United 
States owes an enormous debt to these nations and efforts to improve 
their educational system should be a top priority.
  I urge my colleagues to support this Compact.
  Mr. SENSENBRENNER. Madam Speaker, H.J. Res. 63 amends the Compacts of 
Free Association between the United States and the Federated States of 
Micronesia and the Marshall Islands. The Compacts, agreed to in the 
1980s, provide that the United States will support the new island 
nations economically and that we can establish, by agreement, military 
bases in their territories and foreclose access to the nations by 
military personnel of third countries. As to the Marshall Islands, a 
major subsidiary agreement allows the United States continued use of 
the Kwajalein missile test range. Deputy Assistant Secretary of Defense 
for Asian and Pacific Affairs Peter Brookes testified last year that 
``it is in our best interest to maintain the full range of military 
access, use, and security cooperation options and rights that the 
Compact[s] provide[].''
  The Compacts grant citizens of the Federated States of Micronesia and 
the Marshall Islands the right to enter the U.S. without passports or 
visas, as nonimmigrants and lawfully engage in occupations. In recent 
years, the U.S. government has expressed a number of concerns regarding 
these immigration provisions.
  First, the ability of aliens claiming to be citizens of the two 
nations without having to have passports is an open invitation for 
abuse by terrorists. In addition, the government of the Marshall 
Islands has in the past been found to have sold passports.
  Second, some Americans have taken advantage of the ability of 
islanders to enter the U.S. to bring in adopted children without having 
to meet the requirements of the Immigration and Nationality Act 
regarding foreign adoptions that are designed to safeguard the 
interests of the adopted children and their biological parents.
  Finally, labor recruiters who arrange jobs in the United States for 
islanders have been abusing these unsophisticated workers, such as by 
not revealing the real nature of the jobs to be performed and charging 
prohibitive liquidated damages should the workers leave employment 
prematurely.
  The State Department utilized the looming expiration of the economic 
assistance provisions of the Compacts to persuade the nations to agree 
to needed modifications to the Compacts addressing these immigration 
concerns and other matters. These changes are contained in H.J. Res. 
63.
  In order to address our security concerns, a number of changes have 
been made including barring entry to the U.S. under the Compacts of 
persons who were sold passports, limiting those naturalized citizens 
who can enter the U.S. pursuant to the Compacts, and requiring 
passports for entry to the U.S.
  As to adoptions, any child who is coming to the U.S. pursuant to an 
adoption outside the country or for the purpose of adoption in the 
United States, is ineligible for admission as a nonimmigrant under the 
Compacts. The child must be brought to the U.S. pursuant to the 
applicable provisions of the Immigration and Nationality Act.
  Separate agreements, which shall come into effect simultaneously with 
the Compacts, shall incorporate minimum obligations that labor 
recruiters will have to meet in order to protect Micronesians and 
Marshall Islanders who are recruited for work in the U.S.
  H.J. Res. 63 also includes a number of provisions within the claims, 
courts, criminal law and administrative law jurisdiction of the 
Committee. For instance, the Compacts are amended to provide that the 
governments of the nations are immune from the jurisdiction of U.S. 
courts and that the U.S. shall not be liable in their courts, and 
federal agencies are authorized to settle and pay tort claims arising 
from acts or omissions of their employees within the two nations.
  As to criminal law jurisdiction, provisions of the amended Compacts 
allow the United States to provide technical and training assistance to 
the governments of the Federated States of Micronesia and the Republic 
of the Marshall Islands. This assistance will facilitate the 
development and enforcement of their respective laws and allow for 
cooperation with the United States in the enforcement of U.S. laws. The 
postal inspection of contraband, extradition of fugitives, and the 
transfer of prisoners are among the mutual assistance in law 
enforcement matters addressed by the Compact. These issues are 
important not only in

[[Page 25915]]

addressing the reality of the increased translational nature of general 
crime, but also are vitally important when confronting the issue of 
global terrorism.
  H.J. Res. 63 contains numerous beneficial changes to the Compacts of 
Free Association. I urge my colleagues to support this legislation.
  Mr. RAHALL. Madam Speaker, I rise in support of H.J. Res. 63, the 
Compacts of Free Association Amendments Act of 2003. These amendments 
to the existing Compact, extends and refines the official relationship 
between the United States and our friends and allies, the Republic of 
the Marshall Islands (RMI) and the Federated States of Micronesia 
(FSM).
  For the next 20 years, we can only hope that these changes will 
result in continuing economic opportunity, social development, and 
improvements to the quality of life of these island nations as well as 
serve the interests of the United States.
  The RMI and FSM's contribution to our Nation's history is unique. 
Beginning in the mid-1940s, after World War II, their people sacrificed 
both land and culture to help preserve peace.
  Then under U.S. Trusteeship, atolls in the RMI were used as sites to 
test the effectiveness and power of U.S. nuclear weaponry. Islands 
comprising the FSM and also the Republic of Palau became our ``line in 
the sand'' in the middle of the Pacific Ocean from which we staved off 
the spread of communism.
  Though their role has largely gone unnoticed by the American public, 
the relationship we have since established with them to become emerging 
self-governing and self-sufficient democracies reflects how important 
we view their contributions to our Nation.
  Seventeen years have passed since the RMI and FSM became freely 
associated with the United States. The relationship has been successful 
and yet imperfect.
  The Compact amendments we are considering today will not make the 
relationship perfect, or guarantee success. There is no clear 
legislative path to accomplish such goals. However, all the tools are 
within this legislation for both the RMI and FSM to continue 
developing, as well as for the United States to continue to foster 
their growth.
  H.J. Res. 63 preserves education opportunities, advances economic 
activity, safeguards infrastructure investments, and adequately 
addressed the consequences of immigration to Hawaii, Guam and the 
Northern Marianas from the freely associated states.
  In that regard, I want to make note of the great amount of work Neil 
Abercrombie and Madeleine Bordallo put into this issue. With 
justification, they should be proud of their work on behalf of Hawaii 
and Guam as it relates to the matter of impact aid.
  Let me state that this legislation is the product of bipartisan 
support and multiple Committee collaboration. Bringing this legislation 
to the floor would not have been possible without the leadership of 
International Relations Chairman Henry Hyde and the Ranking Democrat 
Tom Lantos, as well as Chairman Leach and our colleague from American 
Samoa, from the Subcommittee on East Asia and the Pacific.
  Finally, I also want to thank Resources Chairman Richard Pombo for 
the bipartisan manner to which he worked with us on the Committee. His 
willingness to address important Compact issues in a meaningful and 
responsive manner gave us the opportunity to move this legislation 
expeditiously.
  I urge my colleagues to favorably pass H.J. Res. 63.
  Mr. ABERCROMBIE. Madam Speaker, I would like to express my 
wholehearted support for this legislation being considered today. For 
the past 17 years, the United States has had a successful relationship 
with the Freely Associated States (FAS). The Federated States of 
Micronesia (FSM) and the Republic of the Marshall Islands (RMI) have 
been able to transition from a United Nations trusteeship to sovereign 
governments. At the same time, the United States has had its security 
and defense interests in the Pacific fulfilled. H.J. Res. 63 will 
improve this vital economic and military relationship by allowing our 
nations to continue the successes in our agreement while helping to 
resolve some of our differences.
  One of the issues which required a resolution is the impact that the 
Compacts of Free Association has had on U.S. areas in the Pacific. The 
Compacts allow FSM and RMI citizens to freely enter the U.S. and its 
territories to live, seek an education, obtain healthcare and find 
employment. For the State of Hawaii alone, more than $32 million was 
expended in 2002 in order to support Compact migrants and help ensure 
their health and well-being. These costs have been borne by Hawaii 
since the Compacts were first implemented in 1986. For the past 
seventeen years, the state has provided Compact migrants with the care 
and benefits that were promised to them by the first Compact, expending 
more than $140 million. In that time, the federal government has 
reimbursed a mere five percent of that amount. As a signatory to the 
Compacts of Free Association, I believe it is the United States, not 
the State of Hawaii that should bear its costs.
  For the first time ever, the Administration recognized this hardship 
and proposed a mandatory funding stream of $15 million a year for 
Hawaii, Guam, the Commonwealth of the Northern Mariana Islands, and 
American Samoa. H.J. Res. 63 has been amended to go even further to 
address this vast shortcoming by increasing the mandatory 
appropriations to $30 million a year. Although these funds will be 
divided among the four jurisdictions, it will be the largest 
compensation any of these jurisdictions has received to date. While 
these funds will surely cover only a portion of the total impact cost, 
its yearly distribution will undoubtedly have a great effect on the 
state departments and agencies that have spent untold resources and 
labor in providing for the compact migrants.
  The legislation has also been amended to include many other 
improvements. The inclusion of language authorizing discretionary 
appropriations, the extension of Pell Grant eligibility, the inclusion 
of a trigger for full inflation adjustment, and the restoration of 
language authorizing compensation for health institutions are a few of 
these changes. I am also gratified to see these provisions, as they 
will help the Federated States of Micronesia and the Republic of the 
Marshall Islands in their quest to become fully independent countries.
  At this time I would also like to thank Chairman Richard Pombo, 
Chairman Henry Hyde, Chairman Jim Nussle, and Chairman John Boehner for 
all of their hard work in bringing this bill to the floor. Thanks to 
their efforts, I have no doubt that our relationship with these Pacific 
nations will continue to be productive and mutually beneficial. I urge 
my colleagues to support this important measure.
  Mr. HYDE. Madam Speaker, I submit for printing in the Congressional 
Record the following correspondence concerning H.J. Res. 63: (1) an 
exchange of letters between Chairman Thomas and myself; (2) a letter 
from Chairman Regula to me; (3) a letter from Chairman Pombo to 
Chairman Nussle; and (4) a letter from me to Chairman Nussle.

                                         House of Representatives,


                                  Committee on Ways and Means,

                               Washington, DC, September 24, 2003.
     Hon. Henry J. Hyde,
     Chairman, Committee on International Relations, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairman Hyde: I am writing concerning H.J. Res. 63, 
     the ``Compact of Free Association Amendments Act of 2003,'' 
     which was referred to the Committees on International 
     Relations, Resources and Judiciary. I understand that a 
     short-term extension of the compacts may be included in a 
     Continuing Resolution to be considered by the House.
       As you know, the Committee on Ways and Means has 
     jurisdiction over matters concerning trade. H.J. Res. 63, 
     which incorporates Article IV of the agreements with the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands, contains several provisions involving 
     tariffs and imports, which fall squarely within the 
     jurisdiction of the Committee on Ways and Means.
       However, in order to expedite this legislation for floor 
     consideration, the Committee will forgo action on this bill. 
     This is being done with the understanding that it does not in 
     any way prejudice the Committee with respect to the 
     appointment of conferees or its jurisdictional prerogatives 
     on this or similar legislation.
       I would appreciate your response to this letter, confirming 
     this understanding with respect to H.J. Res. 63, and would 
     ask that a copy of our exchange of letters on this matter be 
     included in the Congressional Record during floor 
     consideration.
           Best regards,
                                                      Bill Thomas,
                                                         Chairman.
                                  ____
                                  
         House of Representatives, Committee on International 
           Relations,
                               Washington, DC, September 24, 2003.
     Hon. William M. Thomas,
     Chairman, Committee on Ways and Means, House of 
         Representatives, Longworth House Office Building, 
         Washington, DC.
       Dear Bill: Thank you for your letter concerning H.J. Res. 
     63, the ``Compact of Free Association Amendments Act of 
     2003'' which was referred to this Committee among others.
       I concur with your statements concerning the jurisdiction 
     of the Ways and Means Committee over certain matters 
     contained in this legislation. H.J. Res. 63, which 
     incorporates Article IV of the agreements with the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands, contains

[[Page 25916]]

     several provisions involving tariffs and imports, which fall 
     squarely within the jurisdiction of the Committee on Ways and 
     Means. I appreciate your willingness to forgo consideration 
     of the bill.
       I also understand that this action on your part does not in 
     any way prejudice your Committee with respect to the 
     appointment of conferees or its jurisdictional prerogatives 
     on this or similar legislation.
           Sincerely,
                                                    Henry J. Hyde,
     Chairman.
                                  ____



                                     House of Representatives,

                                 Washington, DC, October 27, 2003.
     Hon. Henry Hyde,
     Chairman, Committee on International Relations, House of 
         Representatives, Rayburn House Office Building, 
         Washington, DC.
       Dear Chairman Hyde: This letter is to confirm the agreement 
     regarding H.J. Res. 63, ``Compact of Free Association 
     Amendments Act of 2003.'' I thank you for working with me on 
     amendments affecting education programs for the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands, specifically Section 105(g), Supplemental Education 
     Grants, as you have currently proposed to be included in your 
     Substitute during Floor consideration. In addition to you, I 
     very much appreciate the work and cooperation of Chairman 
     John Boehner, Chairman Jim Nussle, and Chairman Richard Pombo 
     in finding an excellent solution.
       While eligibility under most domestic education programs 
     will terminate with ratification of this Compact Agreement, 
     your Substitute to H.J. Res. 63 would continue student 
     eligibility under the Pell Grant program of the Higher 
     Education Act of 1965, continue institutional eligibility for 
     certain competitive grant programs administered by the 
     Secretary of Education, and create a new discretionary grant 
     program for education in lieu of receipt of certain 
     discretionary domestic education programs.
       As you know, the Subcommittee on Appropriations for Labor, 
     Health and Human Services, Education and Related Agencies has 
     consistently funded education programs for the Federated 
     States of Micronesia and the Republic of the Marshall Islands 
     under Title I of the Elementary and Secondary Education Act, 
     part B of the Individuals with Disabilities Education Act, 
     Titles I and II of the Workforce Investment Act of 1998, 
     Title I of the Carl D. Perkins Vocational and Technical 
     Education Act and the Head Start Act. I assure you that I 
     will continue to fund these programs through the newly 
     created supplemental education grants authorized in your 
     substitute to H.J. Res. 63.
       I do have concerns that these provisions remain intact 
     throughout the legislative process and will work with you to 
     ensure that this new discretionary authority for supplemental 
     education grants is maintained through a conference 
     agreement.
       I thank you for working with me regarding this matter. If 
     you have questions regarding this matter, please do not 
     hesitate to call me.
           Sincerely,
     Ralph Regula,
       Chairman, House Appropriations Subcommittee on Labor, 
     Health and Human Services, Education and Related Agencies.
                                  ____

                                         House of Representatives,


                                       Committee on Resources,

                               Washington, DC, September 29, 2003.
     Hon. Jim Nussle,
     Chairman, Committee on the Budget, Cannon House Office 
         Building, Washington, DC.
       Dear Mr. Chairman: I understand that the Committee on the 
     Budget objected to consideration of H.J. Res. 63 on the Floor 
     of the House of Representatives last week due to funding 
     levels that were inconsistent with the most recent budget 
     resolution. H.J. Res. 63 was referred primarily to the 
     Committee on International Relations and additionally to the 
     Committee on Resources. The bill was also sequentially 
     referred to the Committee on the Judiciary. After extensive 
     negotiations with the Department of State, the Department of 
     the Interior, other committees of jurisdiction and our 
     Members, the Committee on Resources reported an amended bill 
     on September 15, 2003 (H. Rept. 108-262, Part II). It is this 
     amended text, with modifications, that Chairman Henry Hyde of 
     the International Relations Committee desires to schedule for 
     Floor consideration.
       H.J. Res. 63 approves the ``Compact of Free Association, as 
     amended between the Government of the United States of 
     America and the Government of the Federated States of 
     Micronesia,'' and the ``Compact of Free Association, as 
     amended between the Government of the United States of 
     America and the Government of the Republic of the Marshall 
     Islands,'' and otherwise to amend Public Law 99-239, and to 
     appropriate for the purposes of amended Public Law 99-239 for 
     fiscal years ending on or before September 30, 2023. The 
     version reported from the Committee on Resources authorizes 
     funding for various assistance programs to the Marshall 
     Islands and Micronesia. It also provides ``impact aid'' to 
     the U.S. Pacific territories and the State of Hawaii 
     associated with the two Freely Associated States.
       I acknowledge that the Committee on Resources has slightly 
     exceeded its budget allocation attributed to the approval and 
     implementation of the Compacts of Free Association with the 
     Marshall Islands and Micronesia. For example, for those 
     programs within the Committee on Resources' jurisdiction 
     contained in the bill, the budget resolution provided $19M 
     for Fiscal Year (FY) 2004, but H.J. Res. 63 authorizes $28M. 
     For FY 2004 through FY 2008, the budget resolution provided 
     $105M; the bill has a $159M cost for that same period.
       To expedite consideration of the resolution, the Committee 
     on Resources will agree to absorb the additional budget 
     authority and outlays contained in H.J. Res. 63 as reported 
     within the overall Committee allocation under the budget 
     resolution. This represents a total of $54M in both budget 
     authority and outlays for FY 2004 through FY 2008.
       Obviously, this decision will affect other programs within 
     the Committee on Resource's jurisdiction, but I believe that 
     enactment of the compact bill and the aid it provides to the 
     two freely associated states, as well to the U.S. pacific 
     territories and the State of Hawaii, justifies this shift in 
     our priorities. However, as you know, the Committee on 
     Resources has only limited outlay and budget authority under 
     the current budget resolution. Given the time remaining in 
     the 108th Congress, we would not be unable to absorb any 
     additional funding associated with this bill or a Senate 
     counterpart given other legislative initiations expected to 
     be enacted.
       Thank you for this opportunity to clarify our position. I 
     hope it will enable Chairman Hyde and Congressman Leach, the 
     author of the measure, to move forward with this important 
     legislation.
           Sincerely,
                                                 Richard W. Pombo,
     Chairman.
                                  ____

         House of Representatives, Committee on International 
           Relations,
                                 Washington, DC, October 23, 2003.
     Hon. Jim Nussle,
     Chairman, Committee on the Budget, House of Representatives, 
         Cannon House House Office Building, Washington, DC.
       Dear Jim: I am writing to memorialize and confirm an 
     understanding regarding a new, proposed suspension version of 
     H.J. Res. 63, the Compact of Free Association Amendment Act 
     of 2003, which has been worked out between the Committee on 
     Resources, the Committee on Education and the Workforce, and 
     the Committee on International Relations.
       This new text is intended to address your Committee's cost-
     related objection to the originally proposed suspension 
     version of H.J. Res. 63 while also addressing the concerns of 
     numerous Members that adequate education assistance be 
     provided to the Republic of the Marshall Islands (RMI) and 
     the Federated States of Micronesia (FSM) under the new 
     Compacts of Free Association. The language in Section 
     105(g)(1)(B) of the original suspension text would have 
     created approximately $29 million in new, annual direct 
     spending for targeted education grants intended to replace 
     the benefits that those countries currently receive as 
     participants in certain U.S. formula-grant education 
     programs.
       The new, consensus text: (1) replaces that mandatory 
     spending language with language authorizing new, 
     discretionary grant assistance from the Department of 
     Education to the RMI and FSM, in lieu of (and in an amount 
     generally commensurate with) certain educational programs 
     that currently receive; and (2) is premised upon an explicit 
     assurance from the relevant appropriators that they will work 
     to fund those new authorities in the years ahead. I 
     understand that this change, together with the Resources 
     Committee's willingness to absorb the $54 million in five-
     year costs above what was allocated for Compact assistance in 
     the FY04 budget resolution, will satisfy your objections to 
     H.J. Res. 63 and allow this legislation to move forward on 
     the suspension calendar.
       I support this arrangement and will endeavor in good faith, 
     as we move it forward through the legislative process, to 
     actively work against any version of this bill (i.e., free-
     standing Senate legislation, attachment to an appropriations 
     bill, etc.) that may exceed a total cost of $28 million in 
     2004 and $159 million over five years. It is my hope that 
     this commitment will suffice to address your Committee's 
     understandable concerns. As you are likely aware, there are a 
     number of reasons why it is critical for the House to act 
     promptly on this important resolution. Please do not hesitate 
     to call if I or my staff can be of any assistance on this 
     matter.
           Sincerely,
                                                    Henry J. Hyde,
                                                         Chairman.

  Mr. POMBO. Madam Speaker, I rise in support of H.J. Res. 63, the 
``Compact of Free Association Amendments Act of 2003.'' The House 
Resources Committee has a unique understanding of the issues that 
affect the insular areas, and this legislation received strong support 
within our Committee.

[[Page 25917]]

  For over 50 years, the United States has enjoyed a very unique 
relationship with citizens of Micronesia and the Marshall Islands. In 
1984, President Ronald Reagan proposed a new status for the trust 
territories of the Pacific through negotiated Compacts of Free 
Association. After having status as a United Nations Trust Territory 
for many years, in 1986, these islands chose to become sovereign 
states.
  Starting in 1986, when Congress passed ``The Compact Act,'' we made 
the agreement to strive to continue to maintain both economic and 
political stability in this region, including working to advance 
economic self-reliance in these islands.
  With the passage of time and implementation of the original Compact, 
it is very encouraging to see the results achieved that were aided by 
this legislation. We can now consider the connection we have with the 
Federated States of Micronesia (FSM) and the Republic of the Marshall 
Islands (RMI) to be one of the United States' closest bilateral 
relationships.
  The administration submitted to Congress a large agreement that 
reflected many hours of hard work from individuals primarily within the 
U.S. State Department and the U.S. Department of the Interior. These 
individuals deserve recognition for the time which they dedicated to 
the people and governments of the Freely Associated States. Multiple 
Committees have an interest in this legislation, as the Compacts cover 
everything from immigration to health care and continuing education 
programs. It is encouraging to see how closely so many Members were 
able to work closely over the last few months to ensure bipartisan 
support and passage of this legislation.
  I wanted to thank the Members of the House Resources Committee for 
their thoughtful input throughout the process of amending this 
legislation. The openness with which our Committee was able to work 
with the Chairmen and Ranking Members of the House International 
Relations Committee, the House Education and Workforce Committee, and 
the House Judiciary Committee was also essential to bringing H.J. Res. 
63 to the floor today.
  Through the work of multiple Members, the House has been able to make 
numerous changes that should create more beneficial results for not 
only those living in the FSM and RMI, but also for those citizens from 
the Freely Associated States living in areas like American Samoa, the 
Commonwealth of the Northern Mariana Islands, Guam, and Hawaii.
  We were able to craft legislation that incorporates components such 
as the strong accountability reforms agreed upon by the Administration, 
the FSM, and the RMI, while pushing to empower these citizens to 
maintain strong health care advances, education programs and general 
infrastructure. Chairman Boehner was particularly helpful in working 
with multiple Committees to ensure we worked to address the issue of 
funding education programs in the FSM and the RMI to a necessary level, 
and it is important to note that Congress will now ensure that this 
funding can be provided within the Compact for the next 20 years.
  Further, through the direct input of Members from those areas 
affected by the migration of FAS citizens, we doubled the level of what 
is commonly referred to as ``Compact Impact'' funding. This will 
greatly assist areas in their ability to allow FAS citizens to continue 
to migrate to their islands while also fortifying the spending by their 
own respective governments on students and others that utilize the 
social resources of these areas.
  Finally, the hard work over numerous years put into what is now H.J. 
Res. 63 should not be ignored and this legislation needs to move 
forward as quickly as possible. The timing is critical for these 
islands, and important to maintaining a relationship that has brought 
us the strong U.S. defense and strategic interests that exist in this 
area of the Pacific Ocean.
  The ability for Congress to act thoughtfully and expeditiously is 
shown in the interest of multiple Members working to ensure we got this 
legislation to the Floor for a vote today. I appreciate again the 
leadership of Mr. Hyde and Mr. Leach,  as well as Mr. Lantos from the 
International Relations Committee. My colleague from West Virginia, Mr. 
Rahall, was also very engaged throughout the process of moving this 
legislation, which helped to allow the Resources Committee to move 
forward with a unified voice concerning this legislation.
  I thus strongly support the passage of H.J. Res. 63 and encourage the 
bipartisan support of this measure by my colleagues.
  Mr. LEACH. Madam Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion 
offered by the gentleman from Iowa (Mr. Leach) that the House suspend 
the rules and pass the joint resolution, H.J. Res. 63, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the joint resolution, as amended, 
was passed.
  A motion to reconsider was laid on the table.

                          ____________________