[Congressional Record (Bound Edition), Volume 149 (2003), Part 20]
[Senate]
[Pages 28073-28077]
[From the U.S. Government Publishing Office, www.gpo.gov]




           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003

  Mr. McCAIN. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 350, H.J. Res. 
63.
  The PRESIDING OFFICER. The clerk will report the joint resolution by 
title.
  The legislative clerk read as follows:

       A 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.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. DOMENICI. Mr. President, I rise today to support passage of H.J. 
Res. 63, legislation to approve and extend the Compacts of Free 
Association between the United States and the Federated States of 
Micronesia, FSM, and the United States and the Republic of the Marshall 
Islands, RMI. As chairman of the Senate Committee on Energy and Natural 
Resources with jurisdiction over these islands, I am pleased that we 
are ready to pass this legislative package. We have made great progress 
in a short amount of time. The administration did not transmit the 
joint resolution to the Senate until July 14, 2003, and the original 
Compact expired on September 30. Since that time, we have been on an 
extension. However, in just over 3 months, Congress has completed its 
work and is now poised to enact the agreements that will govern our 
mutually beneficial relationship for the next 20 years.
  The legislation now before the Senate encompasses a broad array of 
important policy issues, including funding, education, labor, disaster 
assistance, and immigration matters. Consequently, a number of 
committees have assisted the Energy and Natural Resources Committee in 
reaching this bipartisan agreement. For helping us resolve these 
numerous issues, I would like to thank Budget Committee Chairman 
Nickles and Ranking Member Senator Conrad; Health, Education, Labor and 
Pensions Committee Chairman Gregg and Ranking Member Senator Kennedy; 
Labor, Health and Human Services and Education Appropriations 
Subcommittee Chairman Specter and Ranking Member Senator Harkin; and 
Environment and Public Works Committee Chairman Inhofe and Ranking 
member Senator Jeffords. Thanks also to the staff from these committees 
for their assistance.
  I must of course express my appreciation to the members of the Senate 
Energy and Natural Resources Committee. In particular, I would like to 
commend the leadership, provided by Senator Bingaman, the ranking 
member of the committee and Senator Craig, chair of the Public Lands 
and Forests Subcommittee. A special thanks to Senator Akaka, a great 
friend and voice for the islands. The committee is grateful for his 
assistance in this effort. Finally, I would like to thank Kellie 
Donnelly and Allen Stayman of the committee staff for their hard work 
and dedication throughout this process.
  Enactment of the amended Compacts will continue a remarkable 
relationship first forged after World War II. It is important to 
remember that these islands were occupied by Japan and experienced some 
of the bloodiest fighting during World War II. After the war, the 
islands were placed under the United Nations' trusteeship system. The 
United States served as U.N. trustee and in that capacity, aided the 
islands' transition into self-governing nations, freely associated with 
the United States. With the ratification of the original Compact of 
Free Association in 1986, a unique relationship with these islands was 
formed.
  The Compact of Free Association has guided our Nation's relationship 
with the FSM and RMI for the past 17 years. Most would agree that the 
original Compact has been a success. Indeed, the Compact has achieved 
its goals of, 1, establishing full self-governance for the islands and 
ending the U.N. trusteeship; and 2, securing our mutual defense 
interests. One final goal remains, to assist Micronesia and the 
Marshall Islands in their efforts to advance economic self-sufficiency. 
The amended Compacts aim to achieve this goal.
  The amended Compacts also seek to improve upon the original. After 
nearly 20 years of free association, the United States has learned a 
great deal and has identified areas in need of improvement. The 
legislation now before us continues U.S. economic assistance and each 
nation, including the United States, has increased oversight and 
accountability responsibilities via the Joint Economic Management 
Committees that have been established.
  In order to realize the goal of economic self-reliance for the 
islands, the

[[Page 28074]]

amended Compacts establish and capitalize trust funds for the FSM and 
RMI, respectively. Properly managed, the trust funds will provide an 
ongoing source of revenue when annual payments by the United States end 
in 2023.
  H.J. Res. 63 further provides annual funding to address the migration 
impacts to neighboring Hawaii, Guam, the Northern Mariana Islands, and 
American Samoa. In the wake of September 11, the Compacts' immigration 
provisions have been strengthened. In addition, funding is provided for 
food importation programs and judicial training.
  Importantly, the amended Compacts maintain our Nation's defense 
rights in the western Pacific. It should be noted that the FSM and RMI 
have proven to be two of our country's most steadfast allies in this 
region of the world. The United States has a ``strategic denial 
right,'' that is, the right to deny access to the islands by the 
military forces of other nations. In addition, the United States has a 
``defense veto'' that allows our Government to veto local actions that 
are determined to be incompatible with our defense responsibilities. 
The amended Compacts also seek to continue access to the U.S. military 
facilities at Kwajalein for the next 50 to 70 years.
  The major policy issues of education and disaster assistance that are 
addressed in the amended Compacts have a very real impact on the daily 
lives of Micronesian and Marshallese citizens. Federal education 
programs have been available to the FSM and the RMI under the current 
Compact since 1986 and the administration testified that it assumed 
their continuation when it renegotiated the Compact. The Compact's goal 
of moving the islands to economic self-sufficiency will fail without 
these programs or funds to replace them.
  In response to concerns expressed by the House and Senate Education 
Committees, we have reached agreement on an alternative approach to the 
education issue. The amended Compacts maintain the vital education 
programs of Pell Grants and the Individuals with Disabilities and 
Education Act. The remaining Federal formula grant education programs 
are terminated. In their place, a straight authorization is provided, 
$12,230,000 for the FSM and $6,100,000 for the RMI. This authorization 
creates a new discretionary grant program for the islands. The intent 
is to shift funding for these island's programs from their formula 
allocation of the national appropriation for these programs, to a 
separate appropriation of equal value.
  In both chambers, the Labor, HHS, and Education Appropriations 
Subcommittees, which have funded the education programs for the islands 
for the past 17 years, have agreed to assist in funding this new 
approach. Once appropriated, the education funding would be disbursed 
and monitored in accordance with the Compact's fiscal procedures 
agreements with the FSM and RMI, respectively.
  Islands are prone to natural disasters such as typhoons and, 
surprisingly, droughts. Disaster assistance, then, is of the utmost 
importance. In approving the original Compact, Congress ensured FEMA 
assistance for both the FSM and RMI. Clearly, some form of disaster 
assistance is necessary for infrastructure repair, to promote the goal 
of economic self-sufficiency, and to protect our investments.
  As transmitted by the administration, the amended Compacts replaced 
FEMA with the U.S. AID's office of Foreign Disaster Assistance, OFDA. 
Because of the Energy Committee's concerns with OFDA's lack of 
reconstruction capability, the committee reinstated FEMA's services for 
the FSM and RMI. Only last week, the administration submitted an 
alternative proposal for disaster assistance that includes both FEMA 
and OFDA participation. While the proposal may be workable, it would be 
premature to adopt it at this time. The legislation now before the 
Senate maintains FEMA's services for a period of 5 years. During this 
time, the administration will negotiate disaster assistance that 
provisions with the Governments of the FSM and RMI. It is the 
Committee's expectation that an agreement will be concluded 
expeditiously and if progress is not made in a timely fashion, the 
committee may conduct an oversight hearing on the matter. At the end of 
5 years though, if a conclusion is not reached and enacted during that 
time period, the administration's hybrid proposal will be triggered.
  I am pleased that the amended Compacts will soon be signed by the 
President, and I thank my colleagues for their support of this 
significant legislative package.
  Mr. BINGAMAN. Mr. President, I am pleased to support passage of the 
Compact of Free Association Amendments Act of 2003, legislation that 
will extend and strengthen our Nation's special relationship with two 
young Pacific Island nations, the Federated States of Micronesia, FSM, 
and the Republic of the Marshall Islands, RMI.
  The special ties between these islands and the United States have a 
long history, from the 19th Century New England whaling industry, 
through the terrible years of World War II, to the period of United 
States administration under the United Nations Trusteeship system. From 
1947 to 1986, the U.S. governed these islands on behalf of the U.N. and 
was responsible for promoting the political, economic, and social 
development of the inhabitants. In 1986, the U.S. fulfilled its 
obligations to the U.N. with implementation of the Compact of Free 
Association, approved by Public Law 99-239. The Compact formally ended 
U.S. administration and allowed the FSM and RMI to achieve self-
government and international recognition. The Compact also allowed the 
U.S. to continue the special security relationship forged during the 
Trusteeship. Now 17 years later, the Compact continues to provide for 
mutual defense and for political and economic stability in a region of 
significant interest to the U.S.
  Prompt enactment of H.J. Res. 63 is needed to update and extend 
provisions of the Compact, particularly those economic assistance 
provisions which expired on September 30, 2003, but which have been 
temporarily extended.
  I would like to remind my colleagues of the scope and importance of 
his security relationship because it provides one of the compelling 
reasons to support this resolution. Our mutual security includes the 
obligation of the U.S. to defend these nations as if they are a part of 
the U.S., and it is based on a simple geographic reality--the FSM and 
RMI lie between the state of Hawaii, and our Territories of Guam and 
the Commonwealth of the Northern Mariana Islands in the western 
Pacific. During World War II, the islands of the FSM and RMI served as 
hard-fought stepping-stones in the Allied defeat of Imperial Japan. To 
help assure that such a struggle will never need to be repeated, the 
Compact grants the U.S. the right to deny access to the islands by the 
military forces of other nations, as well as the right to veto local 
actions that the U.S. determines are incompatible with its defense 
responsibilities. The Compact also provides that the FSM and RMI will 
sympathetically consider U.S. requests for military basing rights. In 
the past, U.S. nuclear weapons tests in the Marshall Islands played a 
central role in the development of our Nation's nuclear deterrent. 
Today, the missile test range at Kwajalein continues to play a vital 
role in maintaining the nation's ballistic missile capability and in 
developing missile defense systems. Enactment of this legislation could 
secure U.S. access to the missile test and space surveillance 
facilities at Kwajalein beyond 2016.
  A second major element in the special relationship established by the 
Compact is the mutual interest in promoting economic development. This 
goal has been approached by providing a combination of financial and 
program assistance. Significant economic development occurred from 1986 
to 2003, but the remote and resource-poor island economies continue to 
be based on the government-sector, and they are heavily dependent on 
U.S. assistance. Development has also been hindered by the Compact's 
weak accountability mechanisms and by the island governments' poor 
planning and management capabilities.

[[Page 28075]]

  A third element in this special relationship is the Compact's 
provision granting FSM and RMI citizens the opportunity to live, work, 
and study in the U.S. as resident aliens. This privilege provides an 
outlet for the islands' population growth, but it has also resulted in 
significant migration to Hawaii, Guam, and the Commonwealth of the 
Northern Mariana Islands, CNMI. Due to relatively poor health and 
education conditions in the FSM and RMI, these migrants pose a 
disproportionately high impact on social services in the jurisdictions 
to which they migrate.
  Finally, the Compact included a full and final settlement of all 
claims resulting from the U.S. nuclear weapons testing program that was 
conducted in the RMI from 1947 to 1958 and which significantly 
contaminated the islands of four atolls.
  I commend the representatives of Micronesia, the Marshall Islands, 
and the United States for their work over the past 4 years to extend 
and strengthen the Compact. The two new Compact agreements they 
concluded are nested within this joint resolution and will provide the 
assistance needed to assure continued economic development and mutual 
security in partnership with the United States. The administration 
transmitted the legislation on June 27, it was introduced as S.J. Res. 
16 on July 14, 2003, and ordered reported by the committee, with 
amendments, on September 17. It would provide about $4 billion in 
funding over the 20-year period from fiscal year 2004 to 2023 for 
grants, contributions to trust funds, payments to extend the lease at 
Kwajalein, the cost of certain domestic services and programs, and $30 
million annually to be allocated among Hawaii, Guam, the Northern 
Mariana Islands, and American Samoa to mitigate the impact of migration 
from the FSM and RMI. The package would also continue program 
assistance to the FSM and RMI through a range of domestic programs
  To improve the effectiveness of U.S. assistance in the future, the 
amended Compacts have enhanced accountability mechanisms. For example, 
instead of providing financial assistance in the form of direct cash 
payments, funds will be disbursed through sector grants targeted to 
priority areas such as health and education. A new ``Fiscal Procedures 
Agreement,'' will establish new planning and reporting requirements, 
including the establishment of a joint economic management committee 
with each nation. These committees will have a U.S. majority 
membership, and the power to impose grant conditions and withhold 
funds. Finally, the Compacts anticipate the end of annual U.S. 
financial assistance after 2023 and provide fro contributions to two 
trust funds that will become an alternate source of funding after that 
year.
  The U.S. currently has access to military sites at Kwajalein Atoll 
until 2016, but this legislation provides an opportunity to extend U.S. 
access until 2086. The new arrangement regarding Kwajalein was 
negotiated with the Marshall Islands national government which has not 
yet reached agreement with all of the landowners involved. Accordingly, 
a new land use agreement will need to be concluded between the 
landowners and the Government of the RMI in order to give effect to the 
new access agreement. Until that time, this legislation requires that 
the increased payments be held in an interest-bearing escrow account.
  Two issues that were not resolved during the Energy and Natural 
Resources Committee's consideration of this resolution are education 
and disaster assistance. As pointed out earlier, U.S. assistance under 
the Compact is provided through a combination of financial assistance 
and program assistance. In the case of education, U.S. domestic 
programs account for roughly 40 percent of education funding, with 
local and U.S. financial contributions making-up the balance. These 
U.S. programs were first made available to the FSM and the RMI as an 
initiative of President Kennedy during the Trusteeship period and were 
continued under the Compact as negotiated and approved under President 
Reagan. The administration testified on this resolution in July before 
the Energy Committee that continuation of these programs was assumed 
when it renegotiated the Compact. Unfortunately, as the legislation 
moved forward, the House and Senate HELP Committees opposed 
continuation.
  It was clear during the committee's consideration that the Compact's 
goal of promoting economic self-sufficiency would fail without 
maintaining current levels of support for education. This could be done 
by either continuing these programs, as assumed by the administration, 
or by providing an alternative source of funding.
  The Energy Committee recommended continuation of critical programs 
and the ``cash-out'' of the remainder. Three domestic education 
programs that would be very hard, if not impossible, for the island 
governments to duplicate would continue: Pell Grants, programs under 
the Individuals with Disabilities Education Act, IDEA, and Job Corps. 
Pell grants to students attending the two community colleges in the FSM 
and RMI rate vital to the survival of these two institutions and there 
is consensus to support their continuation. IDEA serves a special 
population in the islands that, without the extension of the U.S. 
program, is unlikely to be adequately served. Finally, an exception is 
made for Job Corps because of the role it plays in preparing young 
people to enter the workforce. This is particularly true at Kwajalein 
Atoll where the U.S. Army vigorously supports the continuation of Job 
Corps because it helps maximize local employment at the U.S. Army base 
there.
  For the remaining Federal formula-grant programs administered by the 
Departments of Education and Labor, and for the Head Start Program, the 
committee recommended termination of the islands' eligibility and 
providing the islands with mandatory funding to replace, or ``cash-
out'', the actual programs. However, the compromise agreed to with the 
House would provide an authorization for a discretionary, not mandatory 
``cash-out'' of the programs to be terminated. The replacement funding 
under this proposal would continue to be provided by the appropriations 
subcommittee for Labor, HHS, and Education, but instead of being 
allocated from the appropriation for each of the national programs, 
there would be a new, separate appropriation of equal value to 
supplement the education sector grants provided by the Secretary of the 
Interior under section 211(a) of the two Compacts.
  The initial authorization levels for these two new discretionary 
grants are based on estimates obtained from the Congressional Research 
Service and the Department of the Interior's Federal Program 
Coordinator, $12,230,000 for the FSM, and $6,100,000 for the RMI, and 
the authorization includes an inflation adjustment. Once appropriated, 
this supplemental funding would be used in accordance with an agreement 
between the appropriate cabinet officer and the Secretary of the 
Interior, and would be disbursed and monitored in accordance with the 
Compact's Fiscal Procedures Agreements with the FSM and RMI, 
respectively.
  I support this compromise reluctantly because I am uneasy with 
discretionary funding for such a critical element of the Compacts. 
Nevertheless, it appears to be the best that can be worked out under 
the circumstances and I look forward to working with my colleagues next 
year to make sure that the funding is shifted smoothly from the 
allocation for each of these national programs to a new FSM-RMI 
supplemental appropriation of the same amount. I thank Senator Gregg 
and Senator Kennedy for their cooperation in resolving these difficult 
education issues, and Stephanie Monroe and Jane Oates of the HELP staff 
for their time and effort in working out this compromise. I 
particularly want to thank Senator Akaka for his hard work and 
commitment to this legislation, and to recognize Noe Kalipi and Melissa 
Hampe of his staff for their contributions.
  A second item that was not resolved during the Energy Committee's 
deliberations was disaster assistance. The

[[Page 28076]]

administration proposed that the current eligibility of the islands to 
participate in the disaster assistance programs of FEMA be terminated 
and replaced with eligibility for assistance from the Office of Foreign 
Disaster Assistance, OFDA. This approach was clearly flawed because 
OFDA is not required to rebuild essential infrastructure following 
disasters.
  In response to this need, the administration transmitted a new 
proposal last week that would provide for assistance from both OFDA and 
FEMA. However, the details for implementing this new joint-program 
approach were not set forth in a subsidiary agreement, as has been done 
with other programs to be extended to the islands. Accordingly, a 
compromise has been developed that would continue FEMA assistance, as 
recommended by the Energy Committee, while the administration 
undertakes negotiations with the islands and FEMA on the new approach 
in which all parties seek to conclude subsidiary agreements that would 
clarify implementation of the new approach. To help assure that all 
parties will negotiate in good faith, the compromise further provides 
that the statutory language for the new approach, as submitted by the 
administration, would go into effect 5 years after the date of 
enactment of this joint resolution. It is my expectation that 
subsidiary agreements and any negotiated changes to the statutory 
language would be agreed to between the island governments and 
representatives of FEMA, OFDA, the State Department and the Interior 
Department long before that deadline. I thank Senators Inhofe and 
Jeffords for their help in resolving this matter and I look forward to 
working with them next year to assuring that the islands have the 
disaster assistance that is essential to the success of their 
economies, and to the success of the Compacts.
  I believe that we have taken two excellent agreements, as negotiated 
between the U.S. and the FSM, and between the U.S. and the RMI, and we 
have improved them so that they will serve as a solid foundation for 
future relations. I want to thank the chairman of the committee, 
Senator Domenici, for his leadership on this legislation and for his 
commitment to continuing the bipartisan approach that has characterized 
the committee's work on insular affairs. Finally, I wish to recognize 
the work of Al Stayman and Kellie Donnelly of the Energy Committee 
staff for their dedication and hard work in guiding this legislation 
through the process.
  In 1986, the United States fulfilled its obligations under the 
Trusteeship and established a successful partnership under the Compact 
of Free Association to advance the interests of the United States, the 
FSM, and RMI in mutual security, and to economic development. Today, I 
urge my colleagues to support passage of H.J. Res. 63 and to affirm our 
Nation's commitment to mutual security, economic development and to the 
continuing special relationship with the islands, and the people, of 
the Federated States of Micronesia and the Republic of the Marshall 
Islands.
  Mr. DOMENICI. Mr. President, I would like to take this opportunity to 
engage in a colloquy with Senator Specter, Senator Bingaman, and 
Senator Harkin regarding the education provisions of H.J. Res. 63, to 
approve and extend the Compacts of Free Association between the U.S. 
and the Federated States of Micronesia, FSM, and the U.S. and the 
Republic of the Marshall Islands, RMI.
  Mr. BINGAMAN. Of course.
  Mr. DOMENICI. U.S. assistance under the current compact is made 
available as both financial and program assistance. In the case of 
education, several U.S. domestic programs have been extended to the FSM 
and RMI since the compact was first approved in 1986. In July, the 
administration testified on this legislation and stated that ``funding 
in the compact was not structured to replace expiring Federal programs, 
or take the place of any program that is eliminated now, or could be 
eliminated in the future.'' In other words, continuation of the current 
program assistance was assumed. However, the House and Senate HELP 
committees have raised objections to this approach. Because these 
programs account for about 40 percent of the FSM and RMI education 
budgets, the success of the compacts depends upon either continuing the 
extension of these programs, or providing an alternate source of 
funding.
  The Domenici-Bingaman amendment in the nature of a substitute to H.J. 
Res. 63 includes language modeled on that passed in the House, that 
would create an authorization for alternate funding. The amendment 
would continue eligibility for certain essential programs, but 
eligibility would be ended for the remaining Department of Education 
and Department of Labor formula-grant programs, and for the Head Start 
program. In their place, an authorization is provided to fund two 
discretionary supplemental education grants: $12,230,000 for the FSM, 
and $6,100,000 for the RMI. Once appropriated, these supplemental 
education grants would be disbursed, used, and monitored in accordance 
with an agreement between the Secretary of Education and the Secretary 
of the Interior, and in accordance with the compact's fiscal procedures 
agreements with the FSM and RMI, respectively. This approach resolves 
the disagreement with the HELP committees while best assuring that the 
FSM and RMI will continue to have the resources needed to meet their 
education needs.
  Mr. BINGAMAN. I agree. These grants, if funded, would continue the 
level of assistance which the administration and the island 
representatives assumed would be available to meet the education goals 
which they jointly established in the new compacts.
  Mr. DOMENICI. I would like to ask the chairman and ranking member of 
the Appropriations Subcommittee on Labor, Health and Human Services, 
and Education, whether they support this approach and whether they will 
fund these alternate grants?
  Mr. SPECTER. Yes. I support this approach proposed by my colleagues 
from the Energy Committee and assure them that, given a sufficient 
allocation, I will support funding for education in the FSM and RMI 
through the new supplemental education grants authorized in their 
amendment to H.J. Res. 63.
  Mr. HARKIN. I concur in this approach and also assure my colleagues 
of my support for continued funding for education in the FSM and RMI 
under this new authorization.
  Mr. DOMENICI. I thank my colleagues for their support.
  Mr. DOMENICI. Mr. President, I would like to take this opportunity to 
engage in a colloquy with Senator Inhofe, Senator Bingaman, and Senator 
Jeffords regarding the disaster assistance provisions of H.J. Res. 63 
to approve and extend the Compacts of Free Association between the U.S. 
and the Federated States of Micronesia, FSM, and the U.S. and the 
Republic of the Marshall Islands, RMI.
  Mr. BINGAMAN. Certainly.
  Mr. DOMENICI. Under the current compact, the disaster assistance 
programs of the Federal Emergency Management Agency, FEMA, have been 
available to the FSM and RMI since 1986. Located in the western 
Pacific, the RMI and FSM are vulnerable to typhoons and experience 
periodic droughts in connection with the El Nino weather pattern. This 
vulnerability to disasters presents risks to public health and safety, 
jeopardizes the substantial investment made by the U.S. in the island's 
infrastructure, and it threatens achievements of the common goal of all 
three nations--promoting economic growth. Consequently, FEMA's presence 
in the islands has been shown to be an essential component of the 
assistance provided under the compact.
  Mr. BINGAMAN. Would my colleague yield for a brief point?
  Mr. DOMENICI. Yes.
  Mr. BINGAMAN. As transmitted by the administration, the joint 
resolution approving the amended compacts would have eliminated FEMA 
and replaced it with the U.S. AID's Office of Foreign Disaster 
Assistance, OFDA. However, during consideration of this joint 
resolution by the Senate Committee on Energy and Natural Resources, the 
Committee recommended reinstatement of FEMA's availability.

[[Page 28077]]


  Mr. DOMENICI. That is correct. In the final days before approval of 
the compacts, FEMA has transmitted a revised proposal regarding 
disaster assistance that would involve both FEMA and OFDA. This new 
proposal, coming at such a late stage in the process, has not been 
shared with the FSM and RMI. Indeed, it is my understanding that there 
are a number of questions about how the new proposal would work. 
Nevertheless, the concept appears sound and staff from the committee 
have worked with our colleagues on the Environment and Public Works 
Committee to craft a compromise.
  Mr. INHOFE. That is correct. Our staffs have been working for the 
past few months on this issue. The compromise we have reached would 
continue the FEMA program in the islands for the next 5 years, as 
recommended by the Energy Committee. In addition, the Secretary of 
State would be directed to immediately undertake negotiations, in 
consultation with FEMA, with the governments of the FSM and RMI 
regarding disaster assistance. Finally, if an agreement is not 
concluded and legislation is not enacted which reflects the new 
agreement within 5 years, then the administration's revised disaster 
assistance proposal would go into effect.
  Mr. JEFFORDS. That is correct. The compromise also directs the 
administration to report to Congress by June 30, 2004, on the outcome 
of such negotiations.
  Mr. BINGAMAN. Yes. We hope and expect that an agreement will be 
concluded and transmitted by next June 30 and do not believe it should 
take the full 5 years.
  Mr. DOMENICI. That is right. The Committees expect that FEMA, the 
administration, and the island governments will engage in such 
negotiations expeditiously and in good faith. Depending on the progress 
made by June 30, 2004, the Energy and Natural Resources Committee may 
hold an oversight hearing on the matter.
  Mr. INHOFE. I agree with this approach.
  Mr. JEFFORDS. As do I.
  Mr. DOMENICI. I thank my colleagues for their support and for their 
cooperation in reaching this agreement.
  Mr. McCAIN. Mr. President, I ask unanimous consent that the 
substitute amendment which is at the desk be agreed to, the joint 
resolution, as amended, be read the third time and passed, the 
amendment to the preamble which is at the desk be agreed to, the 
preamble, as amended, be agreed to, the amendment to the title which is 
at the desk be agreed to, the motions to reconsider be laid upon the 
table en bloc, and that any statements related to the resolution be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2137) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The amendment (No. 2138) was agreed to, as follows:


                           amendment no. 2138

       Strike the preamble and insert the following:
       Whereas the United States (in accordance with the 
     Trusteeship Agreement for the Trust Territory of the Pacific 
     Islands, the United Nations Charter, and the objectives of 
     the international trusteeship system of the United Nations) 
     fulfilled its obligations to promote the development of the 
     people of the Trust Territory toward self-government or 
     independence as appropriate to the particular circumstances 
     of the Trust Territory and its peoples and the freely 
     expressed wishes of the peoples concerned;
       Whereas the United States, the Federated States of 
     Micronesia, and the Republic of the Marshall Islands entered 
     into the Compact of Free Association set forth in title II of 
     Public Law 99-239, January 14, 1986, 99 Stat. 1770, to create 
     and maintain a close and mutually beneficial relationship;
       Whereas the United States, in accordance with section 231 
     of the Compact of Free Association entered into negotiations 
     with the Governments of the Federated States of Micronesia 
     and the Republic of the Marshall Islands to provide continued 
     United States assistance and to reaffirm its commitment to 
     this close and beneficial relationship; and
       Whereas these negotiations, in accordance with section 431 
     of the Compact, resulted in the ``Compact of Free 
     Association, as amended between the Government of the United 
     States of America and the Government of the Federated States 
     of Micronesia'', and the ``Compact of Free Association, as 
     amended between the Government of the United States of 
     America and the Government of the Republic of the Marshall 
     Islands'', which, together with their related agreements, 
     were signed by the Government of the United States and the 
     Governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands on May 14, and April 30, 
     2003, respectively: Now, therefore, be it

  The amendment (No. 2139) was agreed to, as follows:


                           amendment no. 2139

       Amend the title so as to read: ``A joint resolution to 
     approve the Compact of Free Association, as amended, between 
     the Government of the United States of America and the 
     Government of the Federated States of Micronesia, and the 
     Compact of Free Association, as amended, between the 
     Government of the United States of America and the Government 
     of the Republic of the Marshall Islands, and to appropriate 
     funds to carry out the amended Compacts.''.

  The resolution (H.J. Res. 63), as amended, was read for the third 
time and passed.
  The preamble, as amended, was agreed to.
  The title, as amended, was agreed to.

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