[Congressional Record (Bound Edition), Volume 149 (2003), Part 22]
[House]
[Pages 30026-30062]
[From the U.S. Government Publishing Office, www.gpo.gov]




           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.

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

Sec. 101. Approval of U.S.-FSM Compact of Free Association and the 
              U.S.-RMI Compact of Free Association; references to 
              subsidiary agreements or separate agreements.
  (a) Federated States of Micronesia.
  (b) Republic of the Marshall Islands.
  (c) References to the Compact, the U.S.-FSM Compact and the U.S.-RMI 
              Compact; References to Subsidiary Agreements or Separate 
              Agreements.
  (d) Amendment, Change, or Termination in the U.S.-FSM Compact, the 
              U.S.-RMI Compact and Certain Agreements.
  (e) Subsidiary Agreements Deemed Bilateral.
  (f) Entry Into Force of Future Amendments to Subsidiary Agreements.
Sec. 102. Agreements With Federated States of Micronesia.
  (a) Law Enforcement Assistance.
  (b) Agreement on Audits.
Sec. 103. Agreements With and Other Provisions Related to the Republic 
              of the Marshall Islands.
  (a) Law Enforcement Assistance.
  (b) EJIT.
  (c) Section 177 Agreement.
  (d) Nuclear Test Effects.
  (e) Espousal Provisions.
  (f) DOE Radiological Health Care Program; USDA Agricultural and Food 
              Programs.
  (g) Rongelap.
  (h) Four Atoll Health Care Program.
  (i) Enjebi Community Trust Fund.
  (j) Bikini Atoll Cleanup.
  (k) Agreement on Audits.
  (l) Kwajalein.
Sec. 104. Interpretation of and United States Policy Regarding U.S.-FSM 
              Compact and U.S.-RMI Compact.
  (a) Human Rights.
  (b) Immigration and Passport Security.
  (c) Nonalienation of Lands.
  (d) Nuclear Waste Disposal.
  (e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact on the 
              State of Hawaii, Guam, the Commonwealth of the Northern 
              Mariana Islands and American Samoa; Related Authorization 
              and Continuing Appropriation.

[[Page 30027]]

  (f) Foreign Loans.
  (g) Sense of Congress Concerning Funding of Public Infrastructure.
  (h) Reports and Reviews.
  (i) Construction of Section 141(f).
  (j) Inflation adjustment.
  (k) Participation by secondary schools in the Armed Services 
              Vocational Aptitude Battery (ASVAB) Student Testing 
              Program.
Sec. 105. Supplemental Provisions.
  (a) Domestic Program Requirements.
  (b) Relations With the Federated States of Micronesia and the 
              Republic of the Marshall Islands.
  (c) Continuing Trust Territory Authorization.
  (d) Survivability.
  (e) Noncompliance Sanctions; Actions Incompatible With United States 
              Authority.
  (f) Continuing Programs and Laws.
  (g) College of Micronesia.
  (h) Trust Territory Debts to U.S. Federal Agencies.
  (i) Judicial Training.
  (j) Technical Assistance.
  (k) Prior Service Benefits Program.
  (l) Indefinite Land Use Payments.
  (m) Communicable Disease Control Program.
  (n) User Fees.
  (o) Treatment of Judgments of Courts of the Federated States of 
              Micronesia, the Republic of the Marshall Islands, and the 
              Republic of Palau.
  (p) Establishment of Trust Funds; Expedition of Process.
Sec. 106. Construction Contract Assistance.
  (a) Assistance to U.S. Firms.
  (b) Authorization of Appropriations.
Sec. 107. Prohibition.
Sec. 108. Compensatory Adjustments.
  (a) Additional Programs and Services.
  (b) Further Amounts.
Sec. 109. Authorization and Continuing Appropriation.
Sec. 110. Payment of Citizens of the Federated States of Micronesia, 
              the Republic of the Marshall Islands, and the Republic of 
              Palau Employed by the Government of the United States in 
              the Continental United States.

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

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

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

                   Title One--Governmental Relations

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

                     Title Two--Economic Relations

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

              Title Three--Security and Defense Relations

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

                     Title Four--General Provisions

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

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

                   Title One--Governmental Relations

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

                     Title Two--Economic Relations

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

              Title Three--Security and Defense Relations

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

                     Title Four--General Provisions

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

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

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

       (a) Federated States of Micronesia.--The Compact of Free 
     Association, as amended with respect to the Federated States 
     of Micronesia and signed by the United States and the 
     Government of the Federated States of Micronesia and set 
     forth in Title II (section 201(a)) of this joint resolution, 
     is hereby approved, and Congress hereby consents to the 
     subsidiary agreements and amended subsidiary agreements 
     listed in section 462 of the U.S.-FSM Compact. Subject to the 
     provisions of this joint resolution, the President is 
     authorized to agree, in accordance with section 411 of the 
     U.S.-FSM Compact, to an effective date for and thereafter to 
     implement such U.S.-FSM Compact.
       (b) Republic of the Marshall Islands.--The Compact of Free 
     Association, as amended with respect to the Republic of the 
     Marshall Islands and signed by the United States and the 
     Government of the Republic of the Marshall Islands and set 
     forth in Title II (section 201(b)) of this joint resolution, 
     is hereby approved, and Congress hereby consents to the 
     subsidiary agreements and amended subsidiary agreements 
     listed in section 462 of the U.S.-RMI Compact. Subject to the 
     provisions of this joint resolution, the President is 
     authorized to agree, in accordance with section 411 of the 
     U.S.-RMI Compact, to an effective date for and thereafter to 
     implement such U.S.-RMI Compact.
       (c) References to the Compact, the U.S.-FSM Compact, and 
     the U.S.-RMI Compact; References to Subsidiary Agreements or 
     Separate Agreements.--
       (1) Any reference in this joint resolution (except 
     references in Title II) to ``the Compact'' shall be treated 
     as a reference to the Compact of Free Association set forth 
     in title II of Public Law 99-239, January 14, 1986, 99 Stat. 
     1770. Any reference in this joint resolution to the ``U.S.-
     FSM Compact'' shall be treated as a reference to the Compact 
     of Free Association, as amended between the Government of the 
     United States of America and the Government of the Federated 
     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;

[[Page 30028]]

       (C) to any amendment, change, or termination of the 
     agreements concluded pursuant to Compact section 177, and 
     section 215(a) of the U.S.-FSM Compact and section 216(a) of 
     the U.S.-RMI Compact, the terms of which are incorporated by 
     reference into the U.S.-FSM Compact and the U.S.-RMI Compact; 
     and
       (D) to the following subsidiary agreements, or portions 
     thereof:
       (i) Articles III, IV, and X of the agreement referred to in 
     section 462(b)(6) of the U.S.-RMI Compact:
       (ii) Article III and IV of the agreement referred to in 
     section 462(b)(6) of the U.S.-FSM Compact.
       (iii) Articles VI, XV, and XVII of the agreement referred 
     to in section 462(b)(7) of the U.S.-FSM Compact and U.S.-RMI 
     Compact.
       (e) Subsidiary Agreements Deemed Bilateral.--For purposes 
     of implementation of the U.S.-FSM Compact and the U.S.-RMI 
     Compact and this joint resolution, the Agreement Concluded 
     Pursuant to Section 234 of the Compact of Free Association 
     and referred to in section 462(a)(1) of the U.S.-FSM Compact 
     and section 462(a)(4) of the U.S.-RMI Compact shall be deemed 
     to be a bilateral agreement between the United States and 
     each other party to such subsidiary agreement. The consent or 
     concurrence of any other party shall not be required for the 
     effectiveness of any actions taken by the United States in 
     conjunction with either the Federated States of Micronesia or 
     the Republic of the Marshall Islands which are intended to 
     affect the implementation, modification, suspension, or 
     termination of such subsidiary agreement (or any provision 
     thereof) as regards the mutual responsibilities of the United 
     States and the party in conjunction with whom the actions are 
     taken.
       (f) Entry Into Force of Future Amendments to Subsidiary 
     Agreements.--No agreement between the United States and the 
     government of either the Federated States of Micronesia or 
     the Republic of the Marshall Islands which would amend, 
     change, or terminate any subsidiary agreement or portion 
     thereof, other than those set forth in subsection (d) of this 
     section shall enter into force until 90 days after the 
     President has transmitted such agreement to the President of 
     the Senate and the Speaker of the House of Representatives 
     together with an explanation of the agreement and the reasons 
     therefor. In the case of the agreement referred to in section 
     462(b)(3) of the U.S.-FSM Compact and the U.S.-RMI Compact, 
     such transmittal shall include a specific statement by the 
     Secretary of Labor as to the necessity of such amendment, 
     change, or termination, and the impact thereof.

     SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MICRONESIA.

       (a) Law Enforcement Assistance.--Pursuant to sections 222 
     and 224 of the U.S.-FSM Compact, the United States shall 
     provide non-reimbursable technical and training assistance as 
     appropriate, including training and equipment for postal 
     inspection of illicit drugs and other contraband, to enable 
     the Government of the Federated States of Micronesia to 
     develop and adequately enforce laws of the Federated States 
     of Micronesia and to cooperate with the United States in the 
     enforcement of criminal laws of the United States. Funds 
     appropriated pursuant to section 105(j) of this title may be 
     used to reimburse State or local agencies providing such 
     assistance.
       (b) Agreement on Audits.--The Comptroller General (and his 
     duly authorized representatives) shall have the authorities 
     necessary to carry out his responsibilities under section 232 
     of the U.S.-FSM Compact and the agreement referred to in 
     section 462(b)(4) of the U.S.-FSM Compact, including the 
     following authorities:
       (1) General authority of the comptroller general to 
     audit.--
       (A) The Comptroller General of the United States (and his 
     duly authorized representatives) shall have the authority to 
     audit--
       (i) all grants, program assistance, and other assistance 
     provided to the Government of the Federated States of 
     Micronesia under Articles I and II of Title Two of the U.S.-
     FSM Compact; and
       (ii) any other assistance provided by the Government of the 
     United States to the Government of the Federated States of 
     Micronesia.

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

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

       (a) Law Enforcement Assistance.--Pursuant to sections 222 
     and 224 of the U.S.-RMI Compact, the United States shall 
     provide non-reimbursable technical and training assistance as 
     appropriate, including training and equipment for postal 
     inspection of illicit drugs and other contraband, to enable 
     the Government of the Marshall Islands to develop and 
     adequately enforce laws of the Marshall Islands and to 
     cooperate with the United States in the enforcement of 
     criminal laws of the United States. Funds appropriated 
     pursuant to section 105(j) of this title may be used to 
     reimburse State or local agencies providing such assistance.
       (b) Ejit.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that the President of the United 
     States shall negotiate with the Government of the Marshall 
     Islands an agreement whereby, without prejudice as to any 
     claims which have been or may be asserted by any party as to 
     rightful title and ownership of any lands on Ejit, the 
     Government of the Marshall Islands shall assure that lands on 
     Ejit used as of January 1, 1985, by the people of Bikini, 
     will continue to be available without charge for their use, 
     until such time as Bikini is restored and inhabitable and the 
     continued use of Ejit is no longer necessary, unless a 
     Marshall Islands court of competent jurisdiction finally 
     determines that there are legal impediments to continued use 
     of Ejit by the people of Bikini.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that if the impediments described 
     in paragraph (1) do arise, the United States will cooperate 
     with the Government of the Marshall Islands in assisting any 
     person adversely affected by such judicial determination to 
     remain on Ejit, or in locating suitable and acceptable 
     alternative lands for such person's use.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that paragraph (1) shall not be 
     applied in a manner which would prevent the Government of the 
     Marshall Islands from acting in accordance with its 
     constitutional processes to resolve title and ownership 
     claims with respect to such lands or from taking substitute 
     or additional measures to meet the needs of the people of 
     Bikini with their democratically expressed consent and 
     approval.
       (c) Section 177 Agreement.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that in furtherance of the purposes 
     of Article I of the Subsidiary Agreement for Implementation 
     of Section 177 of the Compact, the payment of the amount 
     specified therein shall be made by the United States under 
     Article I of the Agreement between the Government of the 
     United States and the Government of the Marshall Islands for 
     the Implementation of section 177 of the Compact (hereafter 
     in this subsection referred to as

[[Page 30029]]

     the ``Section 177 Agreement'') only after the Government of 
     the Marshall Islands has notified the President of the United 
     States as to which investment management firm has been 
     selected by such Government to act as Fund Manager under 
     Article I of the Section 177 Agreement.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that in the event that the 
     President determines that an investment management firm 
     selected by the Government of the Marshall Islands does not 
     meet the requirements specified in Article I of the Section 
     177 Agreement, the United States shall invoke the conference 
     and dispute resolution procedures of Article II of Title Four 
     of the Compact. Pending the resolution of such a dispute and 
     until a qualified Fund Manager has been designated, the 
     Government of the Marshall Islands shall place the funds paid 
     by the United States pursuant to Article I of the Section 177 
     Agreement into an interest-bearing escrow account. Upon 
     designation of a qualified Fund Manager, all funds in the 
     escrow account shall be transferred to the control of such 
     Fund Manager for management pursuant to the Section 177 
     Agreement.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that if the Government of the 
     Marshall Islands determines that some other investment firm 
     should act as Fund Manager in place of the firm first (or 
     subsequently) selected by such Government, the Government of 
     the Marshall Islands shall so notify the President of the 
     United States, identifying the firm selected by such 
     Government to become Fund Manager, and the President shall 
     proceed to evaluate the qualifications of such identified 
     firm.
       (4) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that at the end of 15 years after 
     the effective date of the Compact, the firm then acting as 
     Fund Manager shall transfer to the Government of the Marshall 
     Islands, or to such account as such Government shall so 
     notify the Fund Manager, all remaining funds and assets being 
     managed by the Fund Manager under the Section 177 Agreement.
       (d) Nuclear Test Effects.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     in approving the Compact, the Congress understands and 
     intends that the peoples of Bikini, Enewetak, Rongelap, and 
     Utrik, who were affected by the United States nuclear weapons 
     testing program in the Marshall Islands, will receive the 
     amounts of $75,000,000 (Bikini); $48,750,000 (Enewetak); 
     $37,500,000 (Rongelap); and $22,500,000 (Utrik), 
     respectively, which amounts shall be paid out of proceeds 
     from the fund established under Article I, section 1 of the 
     subsidiary agreement for the implementation of section 177 of 
     the Compact. The amounts specified in this subsection shall 
     be in addition to any amounts which may be awarded to 
     claimants pursuant to Article IV of the subsidiary agreement 
     for the implementation of Section 177 of the Compact.
       (e) Espousal Provisions.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that it is the intention of the 
     Congress of the United States that the provisions of section 
     177 of the Compact of Free Association and the Agreement 
     between the Government of the United States and the 
     Government of the Marshall Islands for the Implementation of 
     Section 177 of the Compact (hereafter in this subsection 
     referred to as the ``Section 177 Agreement'') constitute a 
     full and final settlement of all claims described in Articles 
     X and XI of the Section 177 Agreement, and that any such 
     claims be terminated and barred except insofar as provided 
     for in the Section 177 Agreement.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that in furtherance of the 
     intention of Congress as stated in paragraph (1) of this 
     subsection, the Section 177 Agreement is hereby ratified and 
     approved. It is the explicit understanding and intent of 
     Congress that the jurisdictional limitations set forth in 
     Article XII of such Agreement are enacted solely and 
     exclusively to accomplish the objective of Article X of such 
     Agreement and only as a clarification of the effect of 
     Article X, and are not to be construed or implemented 
     separately from Article X.
       (f) DOE Radiological Health Care Program; USDA Agricultural 
     and Food Programs.--
       (1) Marshall islands program.--Notwithstanding any other 
     provision of law, upon the request of the Government of the 
     Republic of the Marshall Islands, the President (either 
     through an appropriate department or agency of the United 
     States or by contract with a United States firm) shall 
     continue to provide special medical care and logistical 
     support thereto for the remaining members of the population 
     of Rongelap and Utrik who were exposed to radiation resulting 
     from the 1954 United States thermo-nuclear ``Bravo'' test, 
     pursuant to Public Laws 95-134 and 96-205.
       (2) Agricultural and food programs.--
       (A) In general.--In the joint resolution of January 14, 
     1986 (Public Law 99-239) Congress provided that 
     notwithstanding any other provision of law, upon the request 
     of the Government of the Marshall Islands, for the first 
     fifteen years after the effective date of the Compact, the 
     President (either through an appropriate department or agency 
     of the United States or by contract with a United States firm 
     or by a grant to the Government of the Republic of the 
     Marshall Islands which may further contract only with a 
     United States firm or a Republic of the Marshall Islands 
     firm, the owners, officers and majority of the employees of 
     which are citizens of the United States or the Republic of 
     the Marshall Islands) shall provide technical and other 
     assistance--
       (i) without reimbursement, to continue the planting and 
     agricultural maintenance program on Enewetak, as provided in 
     subparagraph (C); and
       (ii) without reimbursement, to continue the food programs 
     of the Bikini and Enewetak people described in section 1(d) 
     of Article II of the Subsidiary Agreement for the 
     Implementation of Section 177 of the Compact and for 
     continued waterborne transportation of agricultural products 
     to Enewetak including operations and maintenance of the 
     vessel used for such purposes.
       (B) Population changes.--The President shall ensure the 
     assistance provided under these programs reflects the changes 
     in the population since the inception of such programs.
       (C) Planting and agricultural maintenance program.--
       (i) In general.--The planting and agricultural maintenance 
     program on Enewetak shall be funded at a level of not less 
     than $1,300,000 per year, as adjusted for inflation under 
     section 218 of the U.S.-RMI Compact.
       (ii) Authorization and continuing appropriation.--There is 
     hereby authorized and appropriated to the Secretary of the 
     Interior, out of any funds in the Treasury not otherwise 
     appropriated, to remain available until expended, for each 
     fiscal year from 2004 through 2023, $1,300,000, as adjusted 
     for inflation under section 218 of the U.S.-RMI Compact, for 
     grants to carry out the planting and agricultural maintenance 
     program.
       (3) Payments.--In the joint resolution of January 14, 1986 
     (Public Law 99-239) Congress provided that payments under 
     this subsection shall be provided to such extent or in such 
     amounts as are necessary for services and other assistance 
     provided pursuant to this subsection. It is the sense of 
     Congress that after the periods of time specified in 
     paragraphs (1) and (2) of this subsection, consideration will 
     be given to such additional funding for these programs as may 
     be necessary.
       (g) Rongelap.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that because Rongelap was directly 
     affected by fallout from a 1954 United States thermonuclear 
     test and because the Rongelap people remain unconvinced that 
     it is safe to continue to live on Rongelap Island, it is the 
     intent of Congress to take such steps (if any) as may be 
     necessary to overcome the effects of such fallout on the 
     habitability of Rongelap Island, and to restore Rongelap 
     Island, if necessary, so that it can be safely inhabited. 
     Accordingly, it is the expectation of the Congress that the 
     Government of the Marshall Islands shall use such portion of 
     the funds specified in Article II, section 1(e) of the 
     subsidiary agreement for the implementation of section 177 of 
     the Compact as are necessary for the purpose of contracting 
     with a qualified scientist or group of scientists to review 
     the data collected by the Department of Energy relating to 
     radiation levels and other conditions on Rongelap Island 
     resulting from the thermonuclear test. It is the expectation 
     of the Congress that the Government of the Marshall Islands, 
     after consultation with the people of Rongelap, shall select 
     the party to review such data, and shall contract for such 
     review and for submission of a report to the President of the 
     United States and the Congress as to the results thereof.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that the purpose of the review 
     referred to in paragraph (1) of this subsection shall be to 
     establish whether the data cited in support of the 
     conclusions as to the habitability of Rongelap Island, as set 
     forth in the Department of Energy report entitled: ``The 
     Meaning of Radiation for Those Atolls in the Northern Part of 
     the Marshall Islands That Were Surveyed in 1978'', dated 
     November 1982, are adequate and whether such conclusions are 
     fully supported by the data. If the party reviewing the data 
     concludes that such conclusions as to habitability are fully 
     supported by adequate data, the report to the President of 
     the United States and the Congress shall so state. If the 
     party reviewing the data concludes that the data are 
     inadequate to support such conclusions as to habitability or 
     that such conclusions as to habitability are not fully 
     supported by the data, the Government of the Marshall Islands 
     shall contract with an appropriate scientist or group of 
     scientists to undertake a complete survey of radiation and 
     other effects of the nuclear testing program relating to the 
     habitability of Rongelap Island. Such sums as are necessary 
     for such survey and report concerning the results thereof and 
     as to steps needed to restore the habitability of Rongelap 
     Island are authorized to be made available to the Government 
     of the Marshall Islands.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that it is the intent of Congress 
     that such steps (if any) as are necessary to restore the 
     habitability of Rongelap Island and return the Rongelap 
     people to their homeland will be taken by the United States 
     in consultation with the Government of the Marshall Islands 
     and, in accordance with its authority under the Constitution 
     of the Marshall Islands, the Rongelap local government 
     council.
       (4) There are hereby authorized and appropriated to the 
     Secretary of the Interior, out of any funds in the Treasury 
     not otherwise appropriated, to remain available until 
     expended, for fiscal year 2005, $1,780,000; for fiscal year 
     2006,

[[Page 30030]]

     $1,760,000; and for fiscal year 2007, $1,760,000, as the 
     final contributions of the United States to the Rongelap 
     Resettlement Trust Fund as established pursuant to Public Law 
     102-154 (105 Stat. 1009), for the purposes of establishing a 
     food importation program as a part of the overall 
     resettlement program of Rongelap Island.
       (h) Four Atoll Health Care Program.--
       (1) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that services provided by the 
     United States Public Health Service or any other United 
     States agency pursuant to section 1(a) of Article II of the 
     Agreement for the Implementation of Section 177 of the 
     Compact (hereafter in this subsection referred to as the 
     ``Section 177 Agreement'') shall be only for services to the 
     people of the Atolls of Bikini, Enewetak, Rongelap, and Utrik 
     who were affected by the consequences of the United States 
     nuclear testing program, pursuant to the program described in 
     Public Law 95-134 (91 Stat. 1159) and Public Law 96-205 (94 
     Stat. 84) and their descendants (and any other persons 
     identified as having been so affected if such identification 
     occurs in the manner described in such public laws). Nothing 
     in this subsection shall be construed as prejudicial to the 
     views or policies of the Government of the Marshall Islands 
     as to the persons affected by the consequences of the United 
     States nuclear testing program.
       (2) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that at the end of the first year 
     after the effective date of the Compact and at the end of 
     each year thereafter, the providing agency or agencies shall 
     return to the Government of the Marshall Islands any 
     unexpended funds to be returned to the Fund Manager (as 
     described in Article I of the Section 177 Agreement) to be 
     covered into the Fund to be available for future use.
       (3) In the joint resolution of January 14, 1986 (Public Law 
     99-239) Congress provided that the Fund Manager shall retain 
     the funds returned by the Government of the Marshall Islands 
     pursuant to paragraph (2) of this subsection, shall invest 
     and manage such funds, and at the end of 15 years after the 
     effective date of the Compact, shall make from the total 
     amount so retained and the proceeds thereof annual 
     disbursements sufficient to continue to make payments for the 
     provision of health services as specified in paragraph (1) of 
     this subsection to such extent as may be provided in 
     contracts between the Government of the Marshall Islands and 
     appropriate United States providers of such health services.
       (i) Enjebi Community Trust Fund.--In the joint resolution 
     of January 14, 1986 (Public Law 99-239) Congress provided 
     that notwithstanding any other provision of law, the 
     Secretary of the Treasury shall establish on the books of the 
     Treasury of the United States a fund having the status 
     specified in Article V of the subsidiary agreement for the 
     implementation of Section 177 of the Compact, to be known as 
     the ``Enjebi Community Trust Fund'' (hereafter in this 
     subsection referred to as the ``Fund''), and shall credit to 
     the Fund the amount of $7,500,000. Such amount, which shall 
     be ex gratia, shall be in addition to and not charged against 
     any other funds provided for in the Compact and its 
     subsidiary agreements, this joint resolution, or any other 
     Act. Upon receipt by the President of the United States of 
     the agreement described in this subsection, the Secretary of 
     the Treasury, upon request of the Government of the Marshall 
     Islands, shall transfer the Fund to the Government of the 
     Marshall Islands, provided that the Government of the 
     Marshall Islands agrees as follows:
       (1) Enjebi trust agreement.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     the Government of the Marshall Islands and the Enewetak Local 
     Government Council, in consultation with the people of 
     Enjebi, shall provide for the creation of the Enjebi 
     Community Trust Fund and the employment of the manager of the 
     Enewetak Fund established pursuant to the Section 177 
     Agreement as trustee and manager of the Enjebi Community 
     Trust Fund, or, should the manager of the Enewetak Fund not 
     be acceptable to the people of Enjebi, another United States 
     investment manager with substantial experience in the 
     administration of trusts and with funds under management in 
     excess of $250,000,000.
       (2) Monitor conditions.--In the joint resolution of January 
     14, 1986 (Public Law 99-239) Congress provided that upon the 
     request of the Government of the Marshall Islands, the United 
     States shall monitor the radiation and other conditions on 
     Enjebi and within one year of receiving such a request shall 
     report to the Government of the Marshall Islands when the 
     people of Enjebi may resettle Enjebi under circumstances 
     where the radioactive contamination at Enjebi, including 
     contamination derived from consumption of locally grown food 
     products, can be reduced or otherwise controlled to meet 
     whole body Federal radiation protection standards for the 
     general population, including mean annual dose and mean 30-
     year cumulative dose standards.
       (3) Resettlement of enjebi.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     in the event that the United States determines that the 
     people of Enjebi can within 25 years of January 14, 1986, 
     resettle Enjebi under the conditions set forth in paragraph 
     (2) of this subsection, then upon such determination there 
     shall be available to the people of Enjebi from the Fund such 
     amounts as are necessary for the people of Enjebi to do the 
     following, in accordance with a plan developed by the 
     Enewetak Local Government Council and the people of Enjebi, 
     and concurred with by the Government of the Marshall Islands 
     to assure consistency with the government's overall economic 
     development plan:
       (A) Establish a community on Enjebi Island for the use of 
     the people of Enjebi.
       (B) Replant Enjebi with appropriate food-bearing and other 
     vegetation.
       (4) Resettlement of other location.--In the joint 
     resolution of January 14, 1986 (Public Law 99-239) Congress 
     provided that in the event that the United States determines 
     that within 25 years of January 14, 1986, the people of 
     Enjebi cannot resettle Enjebi without exceeding the radiation 
     standards set forth in paragraph (2) of this subsection, then 
     the fund manager shall be directed by the trust instrument to 
     distribute the Fund to the people of Enjebi for their 
     resettlement at some other location in accordance with a 
     plan, developed by the Enewetak Local Government Council and 
     the people of Enjebi and concurred with by the Government of 
     the Marshall Islands, to assure consistency with the 
     government's overall economic development plan.
       (5) Interest from fund.--In the joint resolution of January 
     14, 1986 (Public Law 99-239) Congress provided that prior to 
     and during the distribution of the corpus of the Fund 
     pursuant to paragraphs (3) and (4) of this subsection, the 
     people of Enjebi may, if they so request, receive the 
     interest earned by the Fund on no less frequent a basis than 
     quarterly.
       (6) Disclaimer of liability.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) Congress provided that 
     neither under the laws of the Marshall Islands nor under the 
     laws of the United States, shall the Government of the United 
     States be liable for any loss or damage to person or property 
     in respect to the resettlement of Enjebi by the people of 
     Enjebi, pursuant to the provision of this subsection or 
     otherwise.
       (j) Bikini Atoll Cleanup.--
       (1) Declaration of policy.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239), the Congress determined 
     and declared that it is the policy of the United States, to 
     be supported by the full faith and credit of the United 
     States, that because the United States, through its nuclear 
     testing and other activities, rendered Bikini Atoll unsafe 
     for habitation by the people of Bikini, the United States 
     will fulfill its responsibility for restoring Bikini Atoll to 
     habitability, as set forth in paragraph (2) and (3) of this 
     subsection.
       (2) Cleanup funds.--The joint resolution of January 14, 
     1986 (Public Law 99-239) authorized to be appropriated such 
     sums as necessary to implement the settlement agreement of 
     March 15, 1985, in The People of Bikini, et al. against 
     United States of America, et al., Civ. No. 84-0425 (D. Ha.).
       (3) Conditions of funding.--In the joint resolution of 
     January 14, 1986 (Public Law 99-239) the Congress provided 
     that the funds referred to in paragraph (2) were to be made 
     available pursuant to Article VI, Section 1 of the Compact 
     Section 177 Agreement upon completion of the events set forth 
     in the settlement agreement referred to in paragraph (2) of 
     this subsection.
       (k) Agreement on Audits.--The Comptroller General (and his 
     duly authorized representatives) shall have the authorities 
     necessary to carry out his responsibilities under section 232 
     of the U.S.-RMI Compact and the agreement referred to in 
     section 462(b)(4) of the U.S.-RMI Compact, including the 
     following authorities:
       (1) General authority of the comptroller general to 
     audit.--
       (A) The Comptroller General of the United States (and his 
     duly authorized representatives) shall have the authority to 
     audit--
       (i) all grants, program assistance, and other assistance 
     provided to the Government of the Republic of the Marshall 
     Islands under Articles I and II of Title Two of the U.S.-RMI 
     Compact; and
       (ii) any other assistance provided by the Government of the 
     United States to the Government of the Republic of the 
     Marshall Islands.
     Such authority shall include authority for the Comptroller 
     General to conduct or cause to be conducted any of the audits 
     provided for in section 232 of the U.S.-RMI Compact. The 
     authority provided in this paragraph shall continue for at 
     least three years after the last such grant has been made or 
     assistance has been provided.
       (B) The Comptroller General (and his duly authorized 
     representatives) shall also have authority to review any 
     audit conducted by or on behalf of the Government of the 
     United States. In this connection, the Comptroller General 
     shall have access to such personnel and to such records, 
     documents, working papers, automated data and files, and 
     other information relevant to such review.
       (2) Comptroller general access to records.--
       (A) In carrying out paragraph (1), the Comptroller General 
     (and his duly authorized representatives) shall have such 
     access to the personnel and (without cost) to records, 
     documents, working papers, automated data and files, and 
     other information relevant to such audits. The Comptroller 
     General may duplicate any such records, documents, working 
     papers, automated data and files, or other information 
     relevant to such audits.
       (B) Such records, documents, working papers, automated data 
     and files, and other information regarding each such grant or 
     other assistance shall be maintained for at least five years 
     after the date such grant or assistance was provided and in a 
     manner that permits such grants, assistance and payments to 
     be accounted for distinct from any other funds of the 
     Government of the Republic of the Marshall Islands.

[[Page 30031]]

       (3) Status of comptroller general representatives.--The 
     Comptroller General and his duly authorized representatives 
     shall be immune from civil and criminal process relating to 
     words spoken or written and all acts performed by them in 
     their official capacity and falling within their functions, 
     except insofar as such immunity may be expressly waived by 
     the Government of the United States. The Comptroller General 
     and his duly authorized representatives shall not be liable 
     to arrest or detention pending trial, except in the case of a 
     grave crime and pursuant to a decision by a competent 
     judicial authority, and such persons shall enjoy immunity 
     from seizure of personal property, immigration restrictions, 
     and laws relating to alien registration, fingerprinting, and 
     the registration of foreign agents. Such persons shall enjoy 
     the same taxation exemptions as are set forth in Article 34 
     of the Vienna Convention on Diplomatic Relations. The 
     privileges, exemptions and immunities accorded under this 
     paragraph are not for the personal benefit of the individuals 
     concerned but are to safeguard the independent exercise of 
     their official functions. Without prejudice to those 
     privileges, exemptions and immunities, it is the duty of all 
     such persons to respect the laws and regulations of the 
     Government of the Republic of the Marshall Islands.
       (4) Audits defined.--As used in this subsection, the term 
     ``audits'' includes financial, program, and management 
     audits, including determining--
       (A) whether the Government of the Republic of the Marshall 
     Islands has met the requirements set forth in the U.S.-RMI 
     Compact, or any related agreement entered into under the 
     U.S.-RMI Compact, regarding the purposes for which such 
     grants and other assistance are to be used; and
       (B) the propriety of the financial transactions of the 
     Government of the Republic of the Marshall Islands pursuant 
     to such grants or assistance.
       (5) Cooperation by the republic of the marshall islands.--
     The Government of the Republic of the Marshall Islands will 
     cooperate fully with the Comptroller General of the United 
     States in the conduct of such audits as the Comptroller 
     General determines necessary to enable the Comptroller 
     General to fully discharge his responsibilities under this 
     joint resolution.
       (l) Kwajalein.--
       (1) Statement of policy.--It is the policy of the United 
     States that payment of funds by the Government of the 
     Marshall Islands to the landowners of Kwajalein Atoll in 
     accordance with the land use agreement dated October 19, 
     1982, or as amended or superseded, and any related allocation 
     agreements, is required in order to ensure that the 
     Government of the United States will be able to fulfill its 
     obligation and responsibilities under Title Three of the 
     U.S.-RMI Compact and the subsidiary agreements concluded 
     pursuant to the U.S.-RMI Compact.
       (2) Failure to pay.--
       (A) In general.--If the Government of the Marshall Islands 
     fails to make payments in accordance with paragraph (1), the 
     Government of the United States shall initiate procedures 
     under section 313 of the U.S.-RMI Compact and consult with 
     the Government of the Marshall Islands with respect to the 
     basis for the nonpayment of funds.
       (B) Resolution.--The United States shall expeditiously 
     resolve the matter of any nonpayment of funds required under 
     paragraph (1) pursuant to section 313 of the U.S.-RMI Compact 
     and the authority and responsibility of the Government of the 
     United States for security and defense matters in or relating 
     to the Marshall Islands. This paragraph shall be enforced, as 
     may be necessary, in accordance with section 105(e).
       (3) Disposition of increased payments pending new land use 
     agreement.--Until such time as the Government of the Marshall 
     Islands and the landowners of Kwajalein Atoll have concluded 
     an agreement amending or superseding the land use agreement 
     reflecting the terms of and consistent with the Military Use 
     Operating Rights Agreement dated October 19, 1982, any 
     amounts paid by the United States to the Government of the 
     Marshall Islands in excess of the amounts required to be paid 
     pursuant to the land use agreement dated October 19, 1982, 
     shall be paid into, and held in, an interest bearing escrow 
     account in a United States financial institution by the 
     Government of the Republic of the Marshall Islands. At such 
     time, the funds and interest held in escrow shall be paid to 
     the landowners of Kwajalein in accordance with the new land 
     use agreement. If no such agreement is concluded by the date 
     which is five years after the date of enactment of this 
     resolution, then such funds and interest shall, unless 
     otherwise mutually agreed between the Government of the 
     United States of America and the Government of the Republic 
     of the Marshall Islands, be returned to the U.S. Treasury.
       (4) Notifications and report.--
       (A) The Government of the Republic of the Marshall Islands 
     shall notify the Government of the United States of America 
     when an agreement amending or superseding the land use 
     agreement dated October 19, 1982, is concluded.
       (B) If no agreement amending or superseding the land use 
     agreement dated October 19, 1982 is concluded by the date 
     five years after the date of enactment of this resolution, 
     then the President shall report to Congress on the intentions 
     of the United States with respect to the use of Kwajalein 
     Atoll after 2016, on any plans to relocate activities carried 
     out on Kwajalein Atoll, and on the disposition of the funds 
     and interest held in escrow under paragraph (3).
       (5) Assistance.--The President is authorized to make loans 
     and grants to the Government of the Marshall Islands to 
     address the special needs of the community at Ebeye, 
     Kwajalein Atoll, and other Marshallese communities within the 
     Kwajalein Atoll, pursuant to development plans adopted in 
     accordance with applicable laws of the Marshall Islands. The 
     loans and grants shall be subject to such other terms and 
     conditions as the President, in the discretion of the 
     President, may determine are appropriate.

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

       (a) Human Rights.--In approving the U.S.-FSM Compact and 
     the U.S.-RMI Compact, Congress notes the conclusion in the 
     Statement of Intent of the Report of The Future Political 
     Status Commission of the Congress of Micronesia in July, 
     1969, that ``our recommendation of a free associated state is 
     indissolubly linked to our desire for such a democratic, 
     representative, constitutional government'' and notes that 
     such desire and intention are reaffirmed and embodied in the 
     Constitutions of the Federated States of Micronesia and the 
     Republic of the Marshall Islands. Congress also notes and 
     specifically endorses the preamble to the U.S.-FSM Compact 
     and the U.S.-RMI Compact, which affirms that the governments 
     of the parties to the U.S.-FSM Compact and the U.S.-RMI 
     Compact are founded upon respect for human rights and 
     fundamental freedoms for all. The Secretary of State shall 
     include in the annual reports on the status of 
     internationally recognized human rights in foreign countries, 
     which are submitted to Congress pursuant to sections 116 and 
     502B of the Foreign Assistance Act of 1961, ``22 U.S.C. 
     2151n, 2304'' a full and complete report regarding the status 
     of internationally recognized human rights in the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands.
       (b) Immigration and Passport Security.--
       (1) Naturalized citizens.--The rights of a bona fide 
     naturalized citizen of the Federated States of Micronesia or 
     the Republic of the Marshall Islands to enter the United 
     States, to lawfully engage therein in occupations, and to 
     establish residence therein as a nonimmigrant, to the extent 
     such rights are provided under section 141 of the U.S.-FSM 
     Compact and U.S.-RMI Compact, shall not be deemed to extend 
     to any such naturalized citizen with respect to whom 
     circumstances associated with the acquisition of the status 
     of a naturalized citizen are such as to allow a reasonable 
     inference, on the part of appropriate officials of the United 
     States and subject to United States procedural requirements, 
     that such naturalized status was acquired primarily in order 
     to obtain such rights.
       (2) Passports.--It is the sense of Congress that up to 
     $250,000 of the grant assistance provided to the Federated 
     States of Micronesia pursuant to section 211(a)(4) of the 
     U.S.-FSM Compact, and up to $250,000 of the grant assistance 
     provided to the Republic of the Marshall Islands pursuant to 
     section 211(a)(4) of the U.S.-RMI Compact (or a greater 
     amount of the section 211(a)(4) grant, if mutually agreed 
     between the Government of the United States and the 
     government of the Federated States of Micronesia or the 
     government of the Republic of the Marshall Islands), be used 
     for the purpose of increasing the machine-readability and 
     security of passports issued by such jurisdictions. It is 
     further the sense of Congress that such funds be obligated by 
     September 30, 2004 and in the amount and manner specified by 
     the Secretary of State in consultation with the Secretary of 
     Homeland Security and, respectively, with the government of 
     the Federated States of Micronesia and the government of the 
     Republic of the Marshall Islands. The United States 
     Government is authorized to require that passports used for 
     the purpose of seeking admission under section 141 of the 
     U.S.-FSM Compact and the U.S.-RMI Compact contain the 
     security enhancements funded by such assistance.
       (3) Information-sharing.--It is the sense of Congress that 
     the governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands develop, prior to October 1, 
     2004, the capability to provide reliable and timely 
     information as may reasonably be required by the Government 
     of the United States in enforcing criminal and security-
     related grounds of inadmissibility and deportability under 
     the Immigration and Nationality Act, as amended, and shall 
     provide such information to the Government of the United 
     States.
       (4) Transition; construction of sections 141(a)(3) and 
     141(a)(4) of the u.s.-fsm compact and u.s.-rmi compact.--The 
     words ``the effective date of this Compact, as amended'' in 
     sections 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact and 
     the U.S.-RMI Compact shall be construed to read, ``on the day 
     prior to the enactment by the United States Congress of the 
     Compact of Free Association Amendments Act of 2003.''.
       (c) Nonalienation of Lands.--Congress endorses and 
     encourages the maintenance of the policies of the Government 
     of the Federated States of Micronesia and the Government of 
     the Republic of the Marshall Islands to regulate, in 
     accordance with their Constitutions and laws, the alienation 
     of permanent interests in real property so as to restrict the 
     acquisition of such interests to persons of Federated States 
     of Micronesia citizenship and the Republic of the Marshall 
     Islands citizenship, respectively.
       (d) Nuclear Waste Disposal.--In approving the U.S.-FSM 
     Compact and the U.S.-RMI Compact, Congress understands that 
     the Government of the Federated States of Micronesia and the 
     Government of the Republic of the Marshall

[[Page 30032]]

     Islands will not permit any other government or any 
     nongovernmental party to conduct, in the Republic of the 
     Marshall Islands or in the Federated States of Micronesia, 
     any of the activities specified in subsection (a) of section 
     314 of the U.S.-FSM Compact and the U.S.-RMI Compact.
       (e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact 
     on the State of Hawaii, Guam, the Commonwealth of the 
     Northern Mariana Islands and American Samoa; Related 
     Authorization and Continuing Appropriation.--
       (1) Statement of congressional intent.--In reauthorizing 
     the U.S.-FSM Compact and the U.S.-RMI Compact, it is not the 
     intent of Congress to cause any adverse consequences for an 
     affected jurisdiction.
       (2) Definitions.--For the purposes of this title--
       (A) the term ``affected jurisdiction'' means American 
     Samoa, Guam, the Commonwealth of the Northern Mariana 
     Islands, or the State of Hawaii; and
       (B) the term ``qualified nonimmigrant'' means a person, or 
     their children under the age of 18, admitted or resident 
     pursuant to section 141 of the U.S.-RMI or U.S.-FSM Compact, 
     or section 141 of the Palau Compact who, as of a date 
     referenced in the most recently published enumeration is a 
     resident of an affected jurisdiction. As used in this 
     subsection, the term ``resident'' shall be a person who has a 
     ``residence,'' as that term is defined in section 101(a)(33) 
     of the Immigration and Nationality Act, as amended.
       (3) Authorization and continuing appropriation.--There is 
     hereby authorized and appropriated to the Secretary of the 
     Interior, out of any funds in the Treasury not otherwise 
     appropriated, to remain available until expended, for each 
     fiscal year from 2004 through 2023, $30,000,000 for grants to 
     affected jurisdictions to aid in defraying costs incurred by 
     affected jurisdictions as a result of increased demands 
     placed on health, educational, social, or public safety 
     services or infrastructure related to such services due to 
     the residence in affected jurisdictions of qualified 
     nonimmigrants from the Republic of the Marshall Islands, the 
     Federated States of Micronesia, or the Republic of Palau. The 
     grants shall be--
       (A) awarded and administered by the Department of the 
     Interior, Office of Insular Affairs, or any successor 
     thereto, in accordance with regulations, policies and 
     procedures applicable to grants so awarded and administered, 
     and
       (B) used only for health, educational, social, or public 
     safety services, or infrastructure related to such services, 
     specifically affected by qualified nonimmigrants.
       (4) Enumeration.--The Secretary of the Interior shall 
     conduct periodic enumerations of qualified nonimmigrants in 
     each affected jurisdiction. The enumerations--
       (A) shall be conducted at such intervals as the Secretary 
     of the Interior shall determine, but no less frequently than 
     every five years, beginning in fiscal year 2003;
       (B) shall be supervised by the United States Bureau of the 
     Census or such other organization as the Secretary of the 
     Interior may select; and
       (C) after fiscal year 2003, shall be funded by the 
     Secretary of the Interior by deducting such sums as are 
     necessary, but not to exceed $300,000 as adjusted for 
     inflation pursuant to section 217 of the U.S. FSM Compact 
     with fiscal year 2003 as the base year, per enumeration, from 
     funds appropriated pursuant to the authorization contained in 
     paragraph (3) of this subsection.
       (5) Allocation.--The Secretary of the Interior shall 
     allocate to the government of each affected jurisdiction, on 
     the basis of the results of the most recent enumeration, 
     grants in an aggregate amount equal to the total amount of 
     funds appropriated under paragraph (3) of this subsection, as 
     reduced by any deductions authorized by subparagraph (C) of 
     paragraph (4) of this subsection, multiplied by a ratio 
     derived by dividing the number of qualified nonimmigrants in 
     such affected jurisdiction by the total number of qualified 
     nonimmigrants in all affected jurisdictions.
       (6) Authorization for health care reimbursement.--There are 
     hereby authorized to be appropriated to the Secretary of the 
     Interior such sums as may be necessary to reimburse health 
     care institutions in the affected jurisdictions for costs 
     resulting from the migration of citizens of the Republic of 
     the Marshall Islands, the Federated States of Micronesia and 
     the Republic of Palau to the affected jurisdictions as a 
     result of the implementation of the Compact of Free 
     Association, approved by Public Law 99-239, or the approval 
     of the U.S.-FSM Compact and the U.S.-RMI Compact by this 
     resolution.
       (7) Use of dod medical facilities and national health 
     service corps.--
       (A) DOD medical facilities.--The Secretary of Defense shall 
     make available, on a space available and reimbursable basis, 
     the medical facilities of the Department of Defense for use 
     by citizens of the Federated States of Micronesia and the 
     Republic of the Marshall Islands who are properly referred to 
     the facilities by government authorities responsible for 
     provision of medical services in the Federated States of 
     Micronesia, the Republic of the Marshall Islands, the 
     Republic of Palau and the affected jurisdictions.
       (B) National health service corps.--The Secretary of Health 
     and Human Services shall continue to make the services of the 
     National Health Service Corps available to the residents of 
     the Federated States of Micronesia and the Republic of the 
     Marshall Islands to the same extent and for so long as such 
     services are authorized to be provided to persons residing in 
     any other areas within or outside the United States.
       (C) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this paragraph such sums as 
     are necessary for each fiscal year.
       (8) Reporting requirement.--Not later than one year after 
     the date of enactment of this joint resolution, and at one 
     year intervals thereafter, the Governors of Guam, the State 
     of Hawaii, the Commonwealth of the Northern Mariana Islands, 
     and American Samoa may provide to the Secretary of the 
     Interior by February 1 of each year their comments with 
     respect to the impacts of the Compacts on their respective 
     jurisdiction. The Secretary of the Interior, upon receipt of 
     any such comments, shall report to the Congress not later 
     than May 1 of each year to include the following:
       (A) The Governor's comments on the impacts of the Compacts 
     as well as the Administration's analysis of such impact.
       (B) The Administration views on any recommendations for 
     corrective action to eliminate those consequences as proposed 
     by such Governors.
       (C) With regard to immigration, statistics concerning the 
     number of persons availing themselves of the rights described 
     in section 141(a) of the Compact during the year covered by 
     each report.
       (D) With regard to trade, an analysis of the impact on the 
     economy of American Samoa resulting from imports of canned 
     tuna into the United States from the Federated States of 
     Micronesia, and the Republic of the Marshall Islands.
       (9) Reconciliation of unreimbursed impact expenses.--
       (A) In general.--Notwithstanding any other provision of 
     law, the President, to address previously accrued and 
     unreimbursed impact expenses, may at the request of the 
     Governor of Guam or the Governor of the Commonwealth of the 
     Northern Mariana Islands, reduce, release, or waive all or 
     part of any amounts owed by the Government of Guam or the 
     Government of the Commonwealth of the Northern Mariana 
     Islands (or either government's autonomous agencies or 
     instrumentalities), respectively, to any department, agency, 
     independent agency, office, or instrumentality of the United 
     States.
       (B) Terms and conditions.--
       (i) Substantiation of impact costs.--Not later than 120 
     days after the date of the enactment of this resolution, the 
     Governor of Guam and the Governor of the Commonwealth of the 
     Northern Mariana Islands shall each submit to the Secretary 
     of the Interior a report, prepared in consultation with an 
     independent accounting firm, substantiating unreimbursed 
     impact expenses claimed for the period from January 14, 1986, 
     through September 30, 2003. Upon request of the Secretary of 
     the Interior, the Governor of Guam and the Governor of the 
     Commonwealth of the Northern Mariana Islands shall submit to 
     the Secretary of the Interior copies of all documents upon 
     which the report submitted by that Governor under this clause 
     was based.
       (ii) Congressional notification.--The President shall 
     notify Congress of his intent to exercise the authority 
     granted in subparagraph (A).
       (iii) Congressional review and comment.--Any reduction, 
     release, or waiver under this Act shall not take effect until 
     60 days after the President notifies Congress of his intent 
     to approve a request of the Governor of Guam or the Governor 
     of the Commonwealth of the Northern Mariana Islands. In 
     exercising his authority under this section and in 
     determining whether to give final approval to a request, the 
     President shall take into consideration comments he may 
     receive after Congressional review.
       (iv) Expiration.--The authority granted in subparagraph (A) 
     shall expire on February 28, 2005.
       (10) Authorization of appropriations for grants.--There are 
     hereby authorized to the Secretary of the Interior for each 
     of fiscal years 2004 through 2023 such sums as may be 
     necessary for grants to the governments of Guam, the State of 
     Hawaii, the Commonwealth of the Northern Mariana Islands, and 
     American Samoa, as a result of increased demands placed on 
     educational, social, or public safety services or 
     infrastructure related to service due to the presence in 
     Guam, Hawaii, the Commonwealth of the Northern Mariana 
     Islands, and American Samoa of qualified nonimmigrants from 
     the Federated States of Micronesia, the Republic of the 
     Marshall Islands, and the Republic of Palau.
       (f) Foreign Loans.--Congress hereby reaffirms the United 
     States position that the United States Government is not 
     responsible for foreign loans or debt obtained by the 
     Governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands.
       (g) Sense of Congress Concerning Funding of Public 
     Infrastructure.--It is the sense of Congress that not less 
     than 30 percent of the United States annual grant assistance 
     provided under section 211 of the Compact of Free 
     Association, as amended, between the Government of the United 
     States of America and the Government of the Federated States 
     of Micronesia, and not less than 30 percent of the total 
     amount of section 211 funds allocated to each of the States 
     of the Federated States of Micronesia, shall be invested in 
     infrastructure improvements and maintenance in accordance 
     with section 211(a)(6). It is further the sense of Congress 
     that not less than 30 percent of the United States annual 
     grant assistance provided under section 211 of the Compact of 
     Free Association, as amended, between the Government of the 
     United States of America and the Government of the Republic 
     of

[[Page 30033]]

     the Marshall Islands, shall be invested in infrastructure 
     improvements and maintenance in accordance with section 
     211(d).
       (h) Reports and Reviews.--
       (1) Report by the president.--Not later than the end of the 
     first full calendar year following enactment of this 
     resolution, and not later than December 31 of each year 
     thereafter, the President shall report to Congress regarding 
     the Federated States of Micronesia and the Republic of the 
     Marshall Islands, including but not limited to--
       (A) general social, political, and economic conditions, 
     including estimates of economic growth, per capita income, 
     and migration rates;
       (B) the use and effectiveness of United States financial, 
     program, and technical assistance;
       (C) the status of economic policy reforms including but not 
     limited to progress toward establishing self-sufficient tax 
     rates;
       (D) the status of the efforts to increase investment 
     including: the rate of infrastructure investment of U.S. 
     financial assistance under the U.S.-FSM Compact and the U.S.-
     RMI Compact; non-U.S. contributions to the trust funds, and 
     the level of private investment; and
       (E) recommendations on ways to increase the effectiveness 
     of United States assistance and to meet overall economic 
     performance objectives, including, if appropriate, 
     recommendations to Congress to adjust the inflation rate or 
     to adjust the contributions to the Trust Funds based on non-
     U.S. contributions.
       (2) Review.--During the year of the fifth, tenth, and 
     fifteenth anniversaries of the date of enactment of this 
     resolution, the Government of the United States shall review 
     the terms of the respective Compacts and consider the overall 
     nature and development of the U.S.-FSM and U.S.-RMI 
     relationships including the topics set forth in subparagraphs 
     (A) through (E) of paragraph (1). In conducting the reviews, 
     the Government of the United States shall consider the 
     operating requirements of the Government of the Federated 
     States of Micronesia and the Government of the Republic of 
     the Marshall Islands and their progress in meeting the 
     development objectives set forth in their respective 
     development plans. The President shall include in the annual 
     reports to Congress for the years following the reviews the 
     comments of the Government of the Federated States of 
     Micronesia and the Government of the Republic of the Marshall 
     Islands on the topics described in this paragraph, the 
     President's response to the comments, the findings resulting 
     from the reviews, and any recommendations for actions to 
     respond to such findings.
       (3) By the comptroller general.--Not later than the date 
     that is three years after the date of enactment of this joint 
     resolution, and every 5 years thereafter, the Comptroller 
     General of the United States shall submit to Congress a 
     report on the Federated States of Micronesia and the Republic 
     of the Marshall Islands including the topics set forth in 
     paragraphs (1) (A) through (E) above, and on the 
     effectiveness of administrative oversight by the United 
     States.
       (i) Construction of Section 141(f).--Section 141(f)(2) of 
     the Compact of Free Association, as amended, between the 
     Government of the United States of America and the Government 
     of the Federated States of Micronesia and of the Compact of 
     Free Association, as amended, between the Government of the 
     United States of America and the Government of the Republic 
     of the Marshall Islands, shall be construed as though, after 
     ``may by regulations prescribe'', there were included the 
     following: ``, except that any such regulations that would 
     have a significant effect on the admission, stay and 
     employment privileges provided under this section shall not 
     become effective until 90 days after the date of transmission 
     of the regulations to the Committee on Energy and Natural 
     Resources and the Committee on the Judiciary of the Senate 
     and the Committee on Resources, the Committee on 
     International Relations, and the Committee on the Judiciary 
     of the House of Representatives''.
       (j) Inflation Adjustment.--As of Fiscal Year 2015, if the 
     United States Gross Domestic Product Implicit Price Deflator 
     average for Fiscal Years 2009 through 2013 is greater than 
     United States Gross Domestic Product Implicit Price Deflator 
     average for Fiscal Years 2004 through 2008 (as reported in 
     the Survey of Current Business or subsequent publication and 
     compiled by the Department of Interior), then section 217 of 
     the U.S.-FSM Compact, paragraph 5 of Article II of the U.S.-
     FSM Fiscal Procedures Agreement, section 218 of the U.S.-RMI 
     Compact, and paragraph 5 of Article II of the U.S.-RMI Fiscal 
     Procedures Agreement shall be construed as if ``the full'' 
     appeared in place of ``two-thirds of the'' each place those 
     words appear. If an inflation adjustment is made under this 
     subsection, the base year for calculating the inflation 
     adjustment shall be fiscal year 2014.
       (k) Participation by Secondary Schools in the Armed 
     Services Vocational Aptitude Battery (ASVAB) Student Testing 
     Program.--In furtherance of the provisions of Title Three, 
     Article IV, Section 341 of the U.S.-FSM and the U.S.-RMI 
     Compacts, the purpose of which is to establish the privilege 
     to volunteer for service in the U.S. Armed Forces, it is the 
     sense of Congress that, to facilitate eligibility of FSM and 
     RMI secondary school students to qualify for such service, 
     the Department of Defense may extend the Armed Services 
     Vocational Aptitude Battery (ASVAB) Student Testing Program 
     (STP) and the ASVAB Career Exploration Program to selected 
     secondary Schools in the FSM and the RMI to the extent such 
     programs are available to Department of Defense Dependent 
     Schools located in foreign jurisdictions.

     SEC. 105. SUPPLEMENTAL PROVISIONS.

       (a) Domestic Program Requirements.--Except as may otherwise 
     be provided in this joint resolution, all United States 
     Federal programs and services extended to or operated in the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands are and shall remain subject to all 
     applicable criteria, standards, reporting requirements, 
     auditing procedures, and other rules and regulations 
     applicable to such programs when operating in the United 
     States (including its territories and commonwealths).
       (b) Relations With the Federated States of Micronesia and 
     the Republic of the Marshall Islands.--
       (1) Appropriations made pursuant to Article I of Title Two 
     and subsection (a)(2) of section 221 of article II of Title 
     Two of the U.S.-FSM Compact and the U.S.-RMI Compact shall be 
     made to the Secretary of the Interior, who shall have the 
     authority necessary to fulfill his responsibilities for 
     monitoring and managing the funds so appropriated consistent 
     with the U.S.-FSM Compact and the U.S.-RMI Compact, including 
     the agreements referred to in section 462(b)(4) of the U.S.-
     FSM Compact and U.S.-RMI Compact (relating to Fiscal 
     Procedures) and the agreements referred to in section 
     462(b)(5) of the U.S.-FSM Compact and the U.S.-RMI Compact 
     (regarding the Trust Fund).
       (2) Appropriations made pursuant to subsections (a)(1) and 
     (a)(3) through (6) of section 221 of Article II of Title Two 
     of the U.S.-FSM Compact and subsection (a)(1) and (a)(3) 
     through (5) of the U.S.-RMI Compact shall be made directly to 
     the agencies named in those subsections.
       (3) Appropriations for services and programs referred to in 
     subsection (b) of section 221 of Article II of Title Two of 
     the U.S.-FSM Compact or U.S.-RMI Compact and appropriations 
     for services and programs referred to in sections 105(f) and 
     108(a) of this joint resolution shall be made to the relevant 
     agencies in accordance with the terms of the appropriations 
     for such services and programs.
       (4) Federal agencies providing programs and services to the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands shall coordinate with the Secretaries of the 
     Interior and State regarding provision of such programs and 
     services. The Secretaries of the Interior and State shall 
     consult with appropriate officials of the Asian Development 
     Bank and with the Secretary of the Treasury regarding overall 
     economic conditions in the Federated States of Micronesia and 
     the Republic of the Marshall Islands and regarding the 
     activities of other donors of assistance to the Federated 
     States of Micronesia and the Republic of the Marshall 
     Islands.
       (5) United States Government employees in either the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands are subject to the authority of the United 
     States Chief of Mission, including as elaborated in section 
     207 of the Foreign Service Act and the President's Letter of 
     Instruction to the United States Chief of Mission and any 
     order or directive of the President in effect from time to 
     time.
       (6) Interagency group on freely associated states' 
     affairs.--
       (A) In general.--The President is hereby authorized to 
     appoint an Interagency Group on Freely Associated States' 
     Affairs to provide policy guidance and recommendations on 
     implementation of the U.S.-FSM Compact and the U.S.-RMI 
     Compact to Federal departments and agencies.
       (B) Secretaries.--It is the sense of Congress that the 
     Secretary of State and the Secretary of the Interior shall be 
     represented on the Interagency Group.
       (7) United states appointees to joint committees.--
       (A) Joint economic management committee.--
       (i) In general.--The three United States appointees (United 
     States chair plus two members) to the Joint Economic 
     Management Committee provided for in section 213 of the U.S.-
     FSM Compact and Article III of the U.S.-FSM Fiscal Procedures 
     Agreement referred to in section 462(b)(4) of the U.S.-FSM 
     Compact shall be United States Government officers or 
     employees.
       (ii) Departments.--It is the sense of Congress that 2 of 
     the 3 appointees should be designated from the Department of 
     State and the Department of the Interior, and that U.S. 
     officials of the Asian Development Bank shall be consulted in 
     order to properly coordinate U.S. and Asian Development Bank 
     financial, program, and technical assistance.
       (iii) Additional scope.--Section 213 of the U.S.-FSM 
     Compact shall be construed to read as though the phrase, 
     ``the implementation of economic policy reforms to encourage 
     investment and to achieve self-sufficient tax rates,'' were 
     inserted after ``with particular focus on those parts of the 
     plan dealing with the sectors identified in subsection (a) of 
     section 211''.
       (B) Joint economic management and financial accountability 
     committee.--
       (i) In general.--The three United States appointees (United 
     States chair plus two members) to the Joint Economic 
     Management and Financial Accountability Committee provided 
     for in section 214 of the U.S.-RMI Compact and Article III of 
     the U.S.-RMI Fiscal Procedures Agreement referred to in 
     section 462(b)(4) of the U.S.-RMI Compact shall be United 
     States Government officers or employees.
       (ii) Departments.--It is the sense of Congress that 2 of 
     the 3 appointees should be designated from the Department of 
     State and the Department of the Interior, and that U.S. 
     officials of

[[Page 30034]]

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

       (I) shall continue to make available to the Federated 
     States of Micronesia and the Republic of the Marshall Islands 
     for fiscal years 2004 through 2023, the services to 
     individuals eligible for such services under the Individuals 
     with

[[Page 30035]]

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

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

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

     except that citizens of the Federated States of Micronesia 
     and the Republic of the Marshall Islands who attend an 
     institution of higher education in the United States or its 
     territories, the Federated States of Micronesia, or the 
     Republic of the Marshall Islands on the date of enactment of 
     this joint resolution may continue to receive assistance 
     under such subpart 3 of part A or part C, for not more than 4 
     academic years after such date to enable such citizens to 
     complete their program of study.
       (iv) Fiscal procedures.--Appropriations made pursuant to 
     clause (iii) shall be used and monitored in accordance with 
     an agreement between the Secretary of Education, the 
     Secretary of Labor, the Secretary of Health and Human 
     Services, and the Secretary of the Interior, and in 
     accordance with the respective Fiscal Procedures Agreements 
     referred to in section 462(b)(4) of the U.S.-FSM Compact and 
     section 462(b)(4) of the U.S.-RMI Compact. The agreement 
     between the Secretary of Education, the Secretary of Labor, 
     the Secretary of Health and Human Services, and the Secretary 
     of the Interior shall provide for the transfer, not later 
     than 60 days after the appropriations made pursuant to clause 
     (iii) become available to the Secretary of Education, the 
     Secretary of Labor, and the Secretary of Health and Human 
     Services, from the Secretary of Education, the Secretary of 
     Labor, and the Secretary of Health and Human Services, to the 
     Secretary of the Interior for disbursement.
       (v) Formula education grants.--For fiscal years 2005 
     through 2023, except as provided in clause (ii) and the 
     exception provided under clause (iii), the Governments of the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands shall not receive any grant under any 
     formula-grant program administered by the Secretary of 
     Education or the Secretary of Labor, nor any grant provided 
     through the Head Start Act (42 U.S.C. 9831 et seq.) 
     administered by the Secretary of Health and Human Services.
       (vi) Transition.--For fiscal year 2004, the Governments of 
     the Federated States of Micronesia and the Republic of the 
     Marshall Islands shall continue to be eligible for 
     appropriations and to receive grants under the provisions of 
     law specified in clauses (ii) and (iii).
       (vii) Technical assistance.--The Federated States of 
     Micronesia and the Republic of the Marshall Islands may 
     request technical assistance from the Secretary of Education, 
     the Secretary of Health and Human Services, or the Secretary 
     of Labor the terms of which, including reimbursement, shall 
     be negotiated with the participation of the appropriate 
     cabinet officer for inclusion in the Federal Programs and 
     Services Agreement.
       (viii) Continued eligibility for competitive grants.--The 
     Governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands shall continue to be 
     eligible for competitive grants administered by the Secretary 
     of Education, the Secretary of Health and Human Services, and 
     the Secretary of Labor to the extent that such grants 
     continue to be available to State and local governments in 
     the United States.
       (ix) Applicability.--The Republic of Palau shall remain 
     eligible for appropriations and to receive grants under the 
     provisions of law specified in clauses (ii) and (iii) until 
     the end of fiscal year 2007, to the extent the Republic of 
     Palau was so eligible under such provisions in fiscal year 
     2003.
       (C) The Legal Services Corporation.
       (D) The Public Health Service.
       (E) The Rural Housing Service (formerly, the Farmers Home 
     Administration) in the Marshall Islands and each of the four 
     States of the Federated States of Micronesia: Provided, That 
     in lieu of continuation of the program in the Federated 
     States of Micronesia, the President may agree to transfer to 
     the Government of the Federated States of Micronesia without 
     cost, the portfolio of the Rural Housing Service applicable 
     to the Federated States of Micronesia and provide such 
     technical assistance in management of the portfolio as may be 
     requested by the Federated States of Micronesia).
       (2) Tort claims.--The provisions of section 178 of the 
     U.S.-FSM Compact and the U.S.-RMI Compact regarding 
     settlement and payment of tort claims shall apply to 
     employees of any Federal agency of the Government of the 
     United States (and to any other person employed on behalf of 
     any Federal agency of the Government of the United States on 
     the basis of a contractual, cooperative, or similar 
     agreement) which provides any service or carries out any 
     other function pursuant to or in furtherance of any 
     provisions of the U.S.-FSM Compact or the U.S.-RMI Compact or 
     this joint resolution, except for provisions of Title Three 
     of the Compact and of the subsidiary agreements related to 
     such Title, in such area to which such Agreement formerly 
     applied.
       (3) PCB cleanup.--The programs and services of the 
     Environmental Protection Agency regarding PCBs shall, to the 
     extent applicable, as appropriate, and in accordance with 
     applicable law, be construed to be made available to such 
     islands for the cleanup of PCBs imported prior to 1987. The 
     Secretary of the Interior and the Secretary of Defense shall 
     cooperate and assist in any such cleanup activities.
       (g) College of Micronesia.--Until otherwise provided by Act 
     of Congress, or until termination of the U.S.-FSM Compact and 
     the U.S.-RMI Compact, the College of Micronesia shall retain 
     its status as a land-grant institution and its eligibility 
     for all benefits and programs available to such land-grant 
     institutions.
       (h) Trust Territory Debts to U.S. Federal Agencies.--
     Neither the Government of the Federated States of Micronesia 
     nor the Government of the Marshall Islands shall be required 
     to pay to any department, agency, independent agency, office, 
     or instrumentality of the United States any amounts owed to 
     such department, agency, independent agency, office, or 
     instrumentality by the Government of the Trust Territory of 
     the Pacific Islands as of the effective date of the Compact. 
     There is authorized to be appropriated such sums as may be 
     necessary to carry out the purposes of this subsection.
       (i) Judicial Training.--
       (1) In general.--In addition to amounts provided under 
     section 211(a)(4) of the U.S.-FSM Compact and the U.S.-RMI 
     Compact, the Secretary of the Interior shall annually provide 
     $300,000 for the training of judges and officials of the 
     judiciary in the Federated States of Micronesia and the 
     Republic of the Marshall Islands in cooperation with the 
     Pacific Islands Committee of the Ninth Circuit Judicial 
     Council and in accordance with and to the extent provided in 
     the Federal Programs and Services Agreement and the Fiscal 
     Procedure Agreement, as appropriate.
       (2) Authorization and continuing appropriation.--There is 
     hereby authorized and appropriated to the Secretary of the 
     Interior, out of any funds in the Treasury not otherwise 
     appropriated, to remain available until expended, for each 
     fiscal year from 2004 through 2023, $300,000, as adjusted for 
     inflation under section 218 of the U.S.-FSM Compact and the 
     U.S.-RMI Compact, to carry out the purposes of this section.
       (j) Technical Assistance.--Technical assistance may be 
     provided pursuant to section 224 of the U.S.-FSM Compact or 
     the U.S.-RMI Compact by Federal agencies and institutions of 
     the Government of the United States to the extent such 
     assistance may be provided to States, territories, or units 
     of local government. Such assistance by the Forest Service, 
     the Natural Resources Conservation Service, the Fish and 
     Wildlife Service, the National Marine Fisheries Service, the 
     United States Coast Guard, and the Advisory Council on 
     Historic Preservation, the Department of the Interior, and 
     other agencies providing assistance under the National 
     Historic Preservation Act (80 Stat. 915; 16 U.S.C. 470-470t), 
     shall be on a nonreimbursable basis. During the period the 
     U.S.-FSM Compact and the U.S.-RMI Compact are in effect, the 
     grant programs under the National Historic Preservation Act 
     shall continue to apply to the Federated States of Micronesia 
     and the Republic of the Marshall Islands in the same manner 
     and to the same extent as prior to the approval of the 
     Compact. Any funds provided pursuant to sections 102(a), 
     103(a), 103(b), 103(f), 103(g), 103(h), 103(j), 105(c), 
     105(g), 105(h), 105(i), 105(j), 105(k), 105(l), and 105(m) of 
     this joint resolution shall be in addition to and not charged 
     against any amounts to be paid to either the Federated States 
     of Micronesia or the Republic of the Marshall Islands 
     pursuant to the U.S.-FSM Compact, the U.S.-RMI Compact, or 
     their related subsidiary agreements.
       (k) Prior Service Benefits Program.--Notwithstanding any 
     other provision of law, persons who on January 1, 1985, were 
     eligible to receive payment under the Prior Service Benefits 
     Program established within the Social Security System of the 
     Trust Territory of the Pacific Islands because of their 
     services performed for the United States Navy or the 
     Government of the Trust Territory of the Pacific Islands 
     prior to

[[Page 30036]]

     July 1, 1968, shall continue to receive such payments on and 
     after the effective date of the Compact.
       (l) Indefinite Land Use Payments.--There are authorized to 
     be appropriated such sums as may be necessary to complete 
     repayment by the United States of any debts owed for the use 
     of various lands in the Federated States of Micronesia and 
     the Marshall Islands prior to January 1, 1985.
       (m) Communicable Disease Control Program.--There are 
     authorized to be appropriated for grants to the Government of 
     the Federated States of Micronesia, the Government of the 
     Republic of the Marshall Islands, and the governments of the 
     affected jurisdictions, such sums as may be necessary for 
     purposes of establishing or continuing programs for the 
     control and prevention of communicable diseases, including 
     (but not limited to) cholera, tuberculosis, and Hansen's 
     Disease. The Secretary of the Interior shall assist the 
     Government of the Federated States of Micronesia, the 
     Government of the Republic of the Marshall Islands and the 
     governments of the affected jurisdictions in designing and 
     implementing such a program.
       (n) User Fees.--Any person in the Federated States of 
     Micronesia or the Republic of the Marshall Islands shall be 
     liable for user fees, if any, for services provided in the 
     Federated States of Micronesia or the Republic of the 
     Marshall Islands by the Government of the United States to 
     the same extent as any person in the United States would be 
     liable for fees, if any, for such services in the United 
     States.
       (o) Treatment of Judgments of Courts of the Federated 
     States of Micronesia, the Republic of the Marshall Islands, 
     and the Republic of Palau.--No judgment, whenever issued, of 
     a court of the Federated States of Micronesia, the Republic 
     of the Marshall Islands, or the Republic of Palau, against 
     the United States, its departments and agencies, or officials 
     of the United States or any other individuals acting on 
     behalf of the United States within the scope of their 
     official duty, shall be honored by the United States, or be 
     subject to recognition or enforcement in a court in the 
     United States, unless the judgment is consistent with the 
     interpretation by the United States of international 
     agreements relevant to the judgment. In determining the 
     consistency of a judgment with an international agreement, 
     due regard shall be given to assurances made by the Executive 
     Branch to Congress of the United States regarding the proper 
     interpretation of the international agreement.
       (p) Establishment of Trust Funds; Expedition of Process.--
       (1) In general.--The Trust Fund Agreement executed pursuant 
     to the U.S.-FSM Compact and the Trust Fund Agreement executed 
     pursuant to the U.S.-RMI Compact each provides for the 
     establishment of a trust fund.
       (2) Method of establishment.--The trust fund may be 
     established by--
       (A) creating a new legal entity to constitute the trust 
     fund; or
       (B) assuming control of an existing legal entity including, 
     without limitation, a trust fund or other legal entity that 
     was established by or at the direction of the Government of 
     the United States, the Government of the Federated States of 
     Micronesia, the Government of the Republic of the Marshall 
     Islands, or otherwise for the purpose of facilitating or 
     expediting the establishment of the trust fund pursuant to 
     the applicable Trust Fund Agreement.
       (3) Obligations.--For the purpose of expediting the 
     commencement of operations of a trust fund under either Trust 
     Fund Agreement, the trust fund may, but shall not be 
     obligated to, assume any obligations of an existing legal 
     entity and take assignment of any contract or other agreement 
     to which the existing legal entity is party.
       (4) Assistance.--Without limiting the authority that the 
     United States Government may otherwise have under applicable 
     law, the United States Government may, but shall not be 
     obligated to, provide financial, technical, or other 
     assistance directly or indirectly to the Government of the 
     Federated States of Micronesia or the Government of the 
     Republic of the Marshall Islands for the purpose of 
     establishing and operating a trust fund or other legal entity 
     that will solicit bids from, and enter into contracts with, 
     parties willing to serve in such capacities as trustee, 
     depositary, money manager, or investment advisor, with the 
     intention that the contracts will ultimately be assumed by 
     and assigned to a trust fund established pursuant to a Trust 
     Fund Agreement.

     SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.

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

     SEC. 107. PROHIBITION.

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

     SEC. 108. COMPENSATORY ADJUSTMENTS.

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

     SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION.

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

[[Page 30037]]



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

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

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

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

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

                                PREAMBLE

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

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

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

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

                               Article II

                            Foreign Affairs

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

                              Article III

                             Communications

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

[[Page 30038]]



                               Article IV

                              Immigration

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

[[Page 30039]]

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

                               Article V

                             Representation

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

                               Article VI

                        Environmental Protection

     Section 161
       The Governments of the United States and the Federated 
     States of Micronesia declare that it is their policy to 
     promote efforts to prevent or eliminate damage to the 
     environment and biosphere and to enrich understanding of the 
     natural resources of the Federated States of Micronesia. In 
     order to carry out this policy, the Government of the United 
     States and the Government of the Federated States of 
     Micronesia agree to the following mutual and reciprocal 
     undertakings.
       (a) The Government of the United States:
       (1) shall continue to apply the environmental controls in 
     effect on November 2, 1986 to those of its continuing 
     activities subject to section 161(a)(2), unless and until 
     those controls are modified under sections 161(a)(3) and 
     161(a)(4);
       (2) shall apply the National Environmental Policy Act of 
     1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities 
     under the Compact, as amended, and its related agreements as 
     if the Federated States of Micronesia were the United States;
       (3) shall comply also, in the conduct of any activity 
     requiring the preparation of an Environmental Impact 
     Statement under section 161(a)(2), with standards 
     substantively similar to those required by the following laws 
     of the United States, taking into account the particular 
     environment of the Federated States of Micronesia: the 
     Endangered Species Act of 1973, as amended, 87 Stat. 884, 16 
     U.S.C. 1531 et seq.; the Clean Air Act, as amended, 77 Stat. 
     392, 42 U.S.C. Supp. 7401 et seq.; the Clean Water Act 
     (Federal Water Pollution Control Act), as amended, 86 Stat. 
     896, 33 U.S.C. 1251 et seq.; Title I of the Marine 
     Protection, Research and Sanctuaries Act of 1972 (the Ocean 
     Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic Substances 
     Control Act, as amended, 15 U.S.C. 2601 et seq.; the Solid 
     Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and 
     such other environmental protection laws of the United States 
     and of the Federated States of Micronesia, as may be mutually 
     agreed from time to time with the Government of the Federated 
     States of Micronesia; and
       (4) shall develop, prior to conducting any activity 
     requiring the preparation of an Environmental Impact 
     Statement under section 161(a)(2), written standards and 
     procedures, as agreed with the Government of the Federated 
     States of Micronesia, to implement the substantive provisions 
     of the laws made applicable to U.S. Government activities in 
     the Federated States of Micronesia, pursuant to section 
     161(a)(3).
       (b) The Government of the Federated States of Micronesia 
     shall continue to develop and implement standards and 
     procedures to protect its environment. As a reciprocal 
     obligation to the undertakings of the Government of the 
     United States under this Article, the Federated States of 
     Micronesia, taking into account its particular environment, 
     shall continue to develop and implement standards for 
     environmental protection substantively similar to those 
     required of the Government of the United States by section 
     161(a)(3) prior to its conducting activities in the Federated 
     States of Micronesia, substantively equivalent to activities 
     conducted there by the Government of the United States and, 
     as a further reciprocal obligation, shall enforce those 
     standards.
       (c) Section 161(a), including any standard or procedure 
     applicable thereunder, and section 161(b) may be modified or 
     superseded in whole or in part by agreement of the Government 
     of the United States and the Government of the Federated 
     States of Micronesia.
       (d) In the event that an Environmental Impact Statement is 
     no longer required under the laws of the United States for 
     major Federal actions significantly affecting the quality of 
     the human environment, the regulatory regime established 
     under sections 161(a)(3) and 161(a)(4) shall continue to 
     apply to such activities of the Government of the United 
     States until amended by mutual agreement.
       (e) The President of the United States may exempt any of 
     the activities of the Government of the United States under 
     this Compact, as amended, and its related agreements from any 
     environmental standard or procedure which may be applicable 
     under sections 161(a)(3) and 161(a)(4) if the President 
     determines it to be in the paramount interest of the 
     Government of the United States to do so, consistent with 
     Title Three of this Compact, as amended, and the obligations 
     of the Government of the United States under international 
     law. Prior to any decision pursuant to this subsection, the 
     views of the Government of the Federated States of Micronesia 
     shall be sought and considered to the extent practicable. If 
     the President grants such an exemption, to the extent 
     practicable, a report with his reasons for granting such 
     exemption shall be given promptly to the Government of the 
     Federated States of Micronesia.
       (f) The laws of the United States referred to in section 
     161(a)(3) shall apply to the activities of the Government of 
     the United States under this Compact, as amended, and its 
     related agreements only to the extent provided for in this 
     section.
     Section 162
       The Government of the Federated States of Micronesia may 
     bring an action for judicial review of any administrative 
     agency action or any activity of the Government of the United 
     States pursuant to section 161(a) for enforcement of the 
     obligations of the Government of the United States arising 
     thereunder. The United States District Court for the District 
     of Hawaii and the United States District Court for the 
     District of Columbia shall have jurisdiction over such action 
     or activity, and over actions brought under section 172(b) 
     which relate to the activities of the Government of the 
     United States and its officers and employees, governed by 
     section 161, provided that:
       (a) Such actions may only be civil actions for any 
     appropriate civil relief other than punitive damages against 
     the Government of the United States or, where required by 
     law, its officers in their official capacity; no criminal 
     actions may arise under this section.
       (b) Actions brought pursuant to this section may be 
     initiated only by the Government of the Federated States of 
     Micronesia.
       (c) Administrative agency actions arising under section 161 
     shall be reviewed pursuant to the standard of judicial review 
     set forth in 5 U.S.C. 706.
       (d) The United States District Court for the District of 
     Hawaii and the United States District Court for the District 
     of Columbia shall have jurisdiction to issue all necessary 
     processes, and the Government of the United States agrees to 
     submit itself to the jurisdiction of the court; decisions of 
     the United States District Court shall be reviewable in the 
     United States Court of Appeals for the Ninth Circuit or the 
     United States Court of Appeals for the District of Columbia, 
     respectively, or in the United States Supreme Court as 
     provided by the laws of the United States.
       (e) The judicial remedy provided for in this section shall 
     be the exclusive remedy for the judicial review or 
     enforcement of the obligations of the Government of the 
     United States under this Article and actions brought under 
     section 172(b) which relate to the activities of the 
     Government of the United States and its officers and 
     employees governed by section 161.
       (f) In actions pursuant to this section, the Government of 
     the Federated States of Micronesia shall be treated as if it 
     were a United States citizen.
     Section 163
       (a) For the purpose of gathering data necessary to study 
     the environmental effects of activities of the Government of 
     the United States subject to the requirements of this 
     Article, the Government of the Federated States of Micronesia 
     shall be granted access to facilities operated by the 
     Government of the United States in the Federated States of 
     Micronesia, to the extent necessary for this purpose, except 
     to the extent such access would unreasonably interfere with 
     the exercise of the authority and responsibility of the 
     Government of the United States under Title Three.
       (b) The Government of the United States, in turn, shall be 
     granted access to the Federated States of Micronesia for the 
     purpose of gathering data necessary to discharge its 
     obligations

[[Page 30040]]

     under this Article, except to the extent such access would 
     unreasonably interfere with the exercise of the authority and 
     responsibility of the Government of the Federated States of 
     Micronesia under Title One, and to the extent necessary for 
     this purpose shall be granted access to documents and other 
     information to the same extent similar access is provided the 
     Government of the Federated States of Micronesia under the 
     Freedom of Information Act, 5 U.S.C. 552.
       (c) The Government of the Federated States of Micronesia 
     shall not impede efforts by the Government of the United 
     States to comply with applicable standards and procedures.

                              Article VII

                        General Legal Provisions

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

[[Page 30041]]

       (2) arbitration, referred to in section 178(b), in a timely 
     manner, at a site convenient to the claimant, in the event a 
     claim is not otherwise settled pursuant to section 178(a).
       (d) The provisions of section 174(d) shall not apply to 
     claims covered by this section.
       (e) Except as otherwise explicitly provided by law of the 
     United States, neither the Government of the United States, 
     its instrumentalities, nor any person acting on behalf of the 
     Government of the United States, shall be named a party in 
     any action based on, or arising out of, the activity or 
     activities of a recipient of any grant or other assistance 
     provided by the Government of the United States (or the 
     activity or activities of the recipient's agency or any other 
     person or entity acting on behalf of the recipient).
     Section 179
       (a) The courts of the Federated States of Micronesia shall 
     not exercise criminal jurisdiction over the Government of the 
     United States, or its instrumentalities.
       (b) The courts of the Federated States of Micronesia shall 
     not exercise criminal jurisdiction over any person if the 
     Government of the United States provides notification to the 
     Government of the Federated States of Micronesia that such 
     person was acting on behalf of the Government of the United 
     States, for actions taken in furtherance of section 221 or 
     224 of this amended Compact, or any other provision of law 
     authorizing financial, program, or service assistance to the 
     Federated States of Micronesia.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

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

[[Page 30042]]

     the sectors identified in subsection (a) of section 211, 
     identify problems encountered, and recommend ways to increase 
     the effectiveness of U.S. assistance made available under 
     this Title. The establishment and operations of the Joint 
     Economic Management Committee shall be governed by the Fiscal 
     Procedures Agreement.
     Section 214 - Annual Report
       The Government of the Federated States of Micronesia shall 
     report annually to the President of the United States on the 
     use of United States sector grant assistance and other 
     assistance and progress in meeting mutually agreed program 
     and economic goals. The Joint Economic Management Committee 
     shall review and comment on the report and make appropriate 
     recommendations based thereon.
     Section 215 - Trust Fund
       (a) The United States shall contribute annually for twenty 
     years from the effective date of this Compact, as amended, in 
     the amounts set forth in section 216 into a Trust Fund 
     established in accordance with the Agreement Between the 
     Government of the United States of America and the Government 
     of the Federated States of Micronesia Implementing Section 
     215 and Section 216 of the Compact, as Amended, Regarding a 
     Trust Fund (``Trust Fund Agreement''). Upon termination of 
     the annual financial assistance under section 211, the 
     proceeds of the fund shall thereafter be used for the 
     purposes described in section 211 or as otherwise mutually 
     agreed.
       (b) The United States contribution into the Trust Fund 
     described in subsection(a) of this section is conditioned on 
     the Government of the Federated States of Micronesia 
     contributing to the Trust Fund at least $30 million, prior to 
     September 30, 2004. Any funds received by the Federated 
     States of Micronesia under section 111 (d) of Public Law 99-
     239 (January 14, 1986), or successor provisions, would be 
     contributed to the Trust Fund as a Federated States of 
     Micronesia contribution.
       (c) The terms regarding the investment and management of 
     funds and use of the income of the Trust Fund shall be set 
     forth in the separate Trust Fund Agreement described in 
     subsection (a) of this section. Funds derived from United 
     States investment shall not be subject to Federal or state 
     taxes in the United States or the Federated States of 
     Micronesia. The Trust Fund Agreement shall also provide for 
     annual reports to the Government of the United States and to 
     the Government of the Federated States of Micronesia. The 
     Trust Fund Agreement shall provide for appropriate 
     distributions of trust fund proceeds to the Federated States 
     of Micronesia and for appropriate remedies for the failure of 
     the Federated States of Micronesia to use income of the Trust 
     Fund for the annual grant purposes set forth in section 211. 
     These remedies may include the return to the United States of 
     the present market value of its contributions to the Trust 
     Fund and the present market value of any undistributed income 
     on the contributions of the United States. If this Compact, 
     as amended, is terminated, the provisions of sections 451 
     through 453 of this Compact, as amended, shall govern 
     treatment of any U.S. contributions to the Trust Fund or 
     accrued interest thereon.
     Section 216 - Sector Grant Funding and Trust Fund 
     Contributions
       The funds described in sections 211, 212(b) and 215 shall 
     be made available as follows:


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

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

                               Article II

                    Services and Program Assistance

     Section 221
       (a) Services.--The Government of the United States shall 
     make available to the Federated States of Micronesia, in 
     accordance with and to the extent provided in the Federal 
     Programs and Services Agreement referred to in section 231, 
     the services and related programs of:
       (1) the United States Weather Service;
       (2) the United States Postal Service;
       (3) the United States Federal Aviation Administration;
       (4) the United States Department of Transportation;
       (5) the Federal Deposit Insurance Corporation (for the 
     benefit only of the Bank of the Federated States of 
     Micronesia), and
       (6) the Department of Homeland Security, and the United 
     States Agency for International Development, Office of 
     Foreign Disaster Assistance.
     Upon the effective date of this Compact, as amended, the 
     United States Departments and Agencies named or having 
     responsibility to provide these services and related programs 
     shall have the authority to implement the relevant provisions 
     of the Federal Programs and Services Agreement referred to in 
     section 231.
       (b) Programs.--
       (1) With the exception of the services and programs covered 
     by subsection (a) of this section, and unless the Congress of 
     the United States provides otherwise, the Government of the 
     United States shall make available to the Federated States of 
     Micronesia the services and programs that were available to 
     the Federated States of Micronesia on the effective date of 
     this Compact, as amended, to the extent that such services 
     and programs continue to be available to State and local 
     governments of the United States. As set forth in the Fiscal 
     Procedures Agreement, funds provided under subsection (a) of 
     section 211 will be considered to be local revenues of the 
     Government of the Federated States of Micronesia when used as 
     the local share required to obtain Federal programs and 
     services.
       (2) Unless provided otherwise by U.S. law, the services and 
     programs described in paragraph (1) of this subsection shall 
     be extended in accordance with the terms of the Federal 
     Programs and Services Agreement referred to in section 231.
       (c) The Government of the United States shall have and 
     exercise such authority as is necessary to carry out its 
     responsibilities under this Title and the separate agreements 
     referred to in amended section 231, including the authority 
     to monitor and administer all service and program assistance 
     provided by the United States to the Federated States of 
     Micronesia. The Federal Programs and Services Agreement 
     referred to in amended section 231 shall also set forth the 
     extent to which services and programs shall be provided to 
     the Federated States of Micronesia.
       (d) Except as provided elsewhere in this Compact, as 
     amended, under any separate agreement entered into under this 
     Compact, as amended, or otherwise under U.S. law, all Federal 
     domestic programs extended to or operating in the Federated 
     States of Micronesia shall be subject to all applicable 
     criteria, standards, reporting requirements, auditing 
     procedures, and other rules and regulations applicable to 
     such programs and services when operating in the United 
     States.

[[Page 30043]]

       (e) The Government of the United States shall make 
     available to the Federated States of Micronesia alternate 
     energy development projects, studies, and conservation 
     measures to the extent provided for the Freely Associated 
     States in the laws of the United States.
     Section 222
       The Government of the United States and the Government of 
     the Federated States of Micronesia may agree from time to 
     time to extend to the Federated States of Micronesia 
     additional United States grant assistance, services and 
     programs, as provided under the laws of the United States. 
     Unless inconsistent with such laws, or otherwise specifically 
     precluded by the Government of the United States at the time 
     such additional grant assistance, services, or programs are 
     extended, the Federal Programs and Services Agreement 
     referred to section 231 shall apply to any such assistance, 
     services or programs.
     Section 223
       The Government of the Federated States of Micronesia shall 
     make available to the Government of the United States at no 
     cost such land as may be necessary for the operations of the 
     services and programs provided pursuant to this Article, and 
     such facilities as are provided by the Government of the 
     Federated States of Micronesia at no cost to the Government 
     of the United States as of the effective date of this 
     Compact, as amended, or as may be mutually agreed thereafter.
     Section 224
       The Government of the Federated States of Micronesia may 
     request, from time to time, technical assistance from the 
     Federal agencies and institutions of the Government of the 
     United States, which are authorized to grant such technical 
     assistance in accordance with its laws. If technical 
     assistance is granted pursuant to such a request, the 
     Government of the United States shall provide the technical 
     assistance in a manner which gives priority consideration to 
     the Federated States of Micronesia over other recipients not 
     a part of the United States, its territories or possessions, 
     and equivalent consideration to the Federated States of 
     Micronesia with respect to other states in Free Association 
     with the United States. Such assistance shall be made 
     available on a reimbursable or non-reimbursable basis to the 
     extent provided by United States law.

                              Article III

                       Administrative Provisions

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

                               Article IV

                                 Trade

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

                               Article V

                          Finance and Taxation

     Section 251
       The currency of the United States is the official 
     circulating legal tender of the Federated States of 
     Micronesia. Should the Government of the Federated States of 
     Micronesia act to institute another currency, the terms of an 
     appropriate currency transitional period shall be as agreed 
     with the Government of the United States.
     Section 252
       The Government of the Federated States of Micronesia may, 
     with respect to United States persons, tax income derived 
     from sources within its respective jurisdiction, property 
     situated therein, including transfers of such property by 
     gift or at death, and products consumed therein, in such 
     manner as the Government of the Federated States of 
     Micronesia deems appropriate. The determination of the source 
     of any income, or the situs of any property, shall for 
     purposes of this Compact be made according to the United 
     States Internal Revenue Code.
     Section 253
       A citizen of the Federated States of Micronesia, domiciled 
     therein, shall be exempt from estate, gift, and generation-
     skipping transfer taxes imposed by the Government of the 
     United States, provided that such citizen of the Federated 
     States of Micronesia is neither a citizen nor a resident of 
     the United States.
     Section 254
       (a) In determining any income tax imposed by the Government 
     of the Federated States of Micronesia, the Government of the 
     Federated

[[Page 30044]]

     States of Micronesia shall have authority to impose tax upon 
     income derived by a resident of the Federated States of 
     Micronesia from sources without the Federated States of 
     Micronesia, in the same manner and to the same extent as the 
     Government of the Federated States of Micronesia imposes tax 
     upon income derived from within its own jurisdiction. If the 
     Government of the Federated States of Micronesia exercises 
     such authority as provided in this subsection, any individual 
     resident of the Federated States of Micronesia who is subject 
     to tax by the Government of the United States on income which 
     is also taxed by the Government of the Federated States of 
     Micronesia shall be relieved of liability to the Government 
     of the United States for the tax which, but for this 
     subsection, would otherwise be imposed by the Government of 
     the United States on such income. However, the relief from 
     liability to the United States Government referred to in the 
     preceding sentence means only relief in the form of the 
     foreign tax credit (or deduction in lieu thereof) available 
     with respect to the income taxes of a possession of the 
     United States, and relief in the form of the exclusion under 
     section 911 of the Internal Revenue Code of 1986. For 
     purposes of this section, the term ``resident of the 
     Federated States of Micronesia'' shall be deemed to include 
     any person who was physically present in the Federated States 
     of Micronesia for a period of 183 or more days during any 
     taxable year.
       (b) If the Government of the Federated States of Micronesia 
     subjects income to taxation substantially similar to that 
     imposed by the Trust Territory Code in effect on January 1, 
     1980, such Government shall be deemed to have exercised the 
     authority described in section 254(a).
     Section 255
       For purposes of section 274(h)(3)(A) of the United States 
     Internal Revenue Code of 1986, the term ``North American 
     Area'' shall include the Federated States of Micronesia.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

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

                               Article II

                Defense Facilities and Operating Rights

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

                              Article III

         Defense Treaties and International Security Agreements

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

                               Article IV

              Service in Armed Forces of the United States

     Section 341
       Any person entitled to the privileges set forth in Section 
     141 (with the exception of any person described in section 
     141(a)(5) who is not a citizen of the Federated States of 
     Micronesia) shall

[[Page 30045]]

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

                               Article V

                           General Provisions

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

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

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

                               Article II

                   Conference and Dispute Resolution

     Section 421
       The Government of the United States shall confer promptly 
     at the request of the Government of the Federated States of 
     Micronesia and that Government shall confer promptly at the 
     request of the Government of the United States on matters 
     relating to the provisions of this Compact, as amended, or of 
     its related agreements.
     Section 422
       In the event the Government of the United States or the 
     Government of the Federated States of Micronesia, after 
     conferring pursuant to section 421, determines that there is 
     a dispute and gives written notice thereof, the two 
     Governments shall make a good faith effort to resolve the 
     dispute between themselves.
     Section 423
       If a dispute between the Government of the United States 
     and the Government of the Federated States of Micronesia 
     cannot be resolved within 90 days of written notification in 
     the manner provided in section 422, either party to the 
     dispute may refer it to arbitration in accordance with 
     section 424.
     Section 424
       Should a dispute be referred to arbitration as provided for 
     in section 423, an Arbitration Board shall be established for 
     the purpose of hearing the dispute and rendering a decision 
     which shall be binding upon the two parties to the dispute 
     unless the two parties mutually agree that the decision shall 
     be advisory. Arbitration shall occur according to the 
     following terms:
       (a) An Arbitration Board shall consist of a Chairman and 
     two other members, each of whom shall be a citizen of a party 
     to the dispute. Each of the two Governments which is a party 
     to the dispute shall appoint one member to the Arbitration 
     Board. If either party to the dispute does not fulfill the 
     appointment requirements of this section within 30 days of 
     referral of the dispute to arbitration pursuant to section 
     423, its member on the Arbitration Board shall be selected 
     from its own standing list by the other party to the dispute. 
     Each Government shall maintain a standing list of 10 
     candidates. The parties to the dispute shall jointly appoint 
     a Chairman within 15 days after selection of the other 
     members of the Arbitration Board. Failing agreement on a 
     Chairman, the Chairman shall be chosen by lot from the 
     standing lists of the parties to the dispute within 5 days 
     after such failure.
       (b) Unless otherwise provided in this Compact, as amended, 
     or its related agreements, the Arbitration Board shall have 
     jurisdiction to hear and render its final determination on 
     all disputes arising exclusively under Articles I, II, III, 
     IV and V of Title One, Title Two, Title Four, and their 
     related agreements.

[[Page 30046]]

       (c) Each member of the Arbitration Board shall have one 
     vote. Each decision of the Arbitration Board shall be reached 
     by majority vote.
       (d) In determining any legal issue, the Arbitration Board 
     may have reference to international law and, in such 
     reference, shall apply as guidelines the provisions set forth 
     in Article 38 of the Statute of the International Court of 
     Justice.
       (e) The Arbitration Board shall adopt such rules for its 
     proceedings as it may deem appropriate and necessary, but 
     such rules shall not contravene the provisions of this 
     Compact, as amended. Unless the parties provide otherwise by 
     mutual agreement, the Arbitration Board shall endeavor to 
     render its decision within 30 days after the conclusion of 
     arguments. The Arbitration Board shall make findings of fact 
     and conclusions of law and its members may issue dissenting 
     or individual opinions. Except as may be otherwise decided by 
     the Arbitration Board, one-half of all costs of the 
     arbitration shall be borne by the Government of the United 
     States and the remainder shall be borne by the Government of 
     the Federated States of Micronesia.

                              Article III

                               Amendment

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

                               Article IV

                              Termination

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

                               Article V

                             Survivability

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

                               Article VI

                          Definition of Terms

     Section 461
       For the purpose of this Compact, as amended, only, and 
     without prejudice to the views of the Government of the 
     United States or the Government of the Federated States of 
     Micronesia as to the nature and extent of the jurisdiction of 
     either of them under international law, the following terms 
     shall have the following meanings:

[[Page 30047]]

       (a) ``Trust Territory of the Pacific Islands'' means the 
     area established in the Trusteeship Agreement consisting of 
     the former administrative districts of Kosrae, Yap, Ponape, 
     the Marshall Islands and Truk as described in Title One, 
     Trust Territory Code, section 1, in force on January 1, 1979. 
     This term does not include the area of Palau or the Northern 
     Mariana Islands.
       (b) ``Trusteeship Agreement'' means the agreement setting 
     forth the terms of trusteeship for the Trust Territory of the 
     Pacific Islands, approved by the Security Council of the 
     United Nations April 2, 1947, and by the United States July 
     18, 1947, entered into force July 18, 1947, 61 Stat. 3301, 
     T.I.A.S. 1665, 8 U.N.T.S. 189.
        (c) ``The Federated States of Micronesia'' and ``the 
     Republic of the Marshall Islands'' are used in a geographic 
     sense and include the land and water areas to the outer 
     limits of the territorial sea and the air space above such 
     areas as now or hereafter recognized by the Government of the 
     United States.
       (d) ``Compact'' means the Compact of Free Association 
     Between the United States and the Federated States of 
     Micronesia and the Marshall Islands, that was approved by the 
     United States Congress in section 201 of Public Law 99-239 
     (Jan. 14, 1986) and went into effect with respect to the 
     Federated States of Micronesia on November 3, 1986.
       (e) ``Compact, as amended'' means the Compact of Free 
     Association Between the United States and the Federated 
     States of Micronesia, as amended. The effective date of the 
     Compact, as amended, shall be on a date to be determined by 
     the President of the United States, and agreed to by the 
     Government of the Federated States of Micronesia, following 
     formal approval of the Compact, as amended, in accordance 
     with section 411 of this Compact, as amended.
       (f) ``Government of the Federated States of Micronesia'' 
     means the Government established and organized by the 
     Constitution of the Federated States of Micronesia including 
     all the political subdivisions and entities comprising that 
     Government.
       (g) ``Government of the Republic of the Marshall Islands'' 
     means the Government established and organized by the 
     Constitution of the Republic of the Marshall Islands 
     including all the political subdivisions and entities 
     comprising that Government.
       (h) The following terms shall be defined consistent with 
     the 1998 Edition of the Radio Regulations of the 
     International Telecommunications Union as follows:
       (1) ``Radiocommunication'' means telecommunication by means 
     of radio waves.
       (2) ``Station'' means one or more transmitters or receivers 
     or a combination of transmitters and receivers, including the 
     accessory equipment, necessary at one location for carrying 
     on a radiocommunication service, or the radio astronomy 
     service.
       (3) ``Broadcasting Service'' means a radiocommunication 
     service in which the transmissions are intended for direct 
     reception by the general public. This service may include 
     sound transmissions, television transmissions or other types 
     of transmission.
       (4) ``Broadcasting Station'' means a station in the 
     broadcasting service.
       (5) ``Assignment (of a radio frequency or radio frequency 
     channel)'' means an authorization given by an administration 
     for a radio station to use a radio frequency or radio 
     frequency channel under specified conditions.
       (6) ``Telecommunication'' means any transmission, emission 
     or reception of signs, signals, writings, images and sounds 
     or intelligence of any nature by wire, radio, optical or 
     other electromagnetic systems.
       (i) ``Military Areas and Facilities'' means those areas and 
     facilities in the Federated States of Micronesia reserved or 
     acquired by the Government of the Federated States of 
     Micronesia for use by the Government of the United States, as 
     set forth in the separate agreements referred to in section 
     321.
       (j) ``Tariff Schedules of the United States'' means the 
     Tariff Schedules of the United States as amended from time to 
     time and as promulgated pursuant to United States law and 
     includes the Tariff Schedules of the United States Annotated 
     (TSUSA), as amended.
       (k) ``Vienna Convention on Diplomatic Relations'' means the 
     Vienna Convention on Diplomatic Relations, done April 18, 
     1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
     Section 462
       (a) The Government of the United States and the Government 
     of the Federated States of Micronesia previously have 
     concluded agreements pursuant to the Compact, which shall 
     remain in effect and shall survive in accordance with their 
     terms, as follows:
       (1) Agreement Concluded Pursuant to Section 234 of the 
     Compact;
       (2) Agreement Between the Government of the United States 
     and the Government of the Federated States of Micronesia 
     Regarding Friendship, Cooperation and Mutual Security 
     Concluded Pursuant to Sections 321 and 323 of the Compact of 
     Free Association; and
       (3) Agreement between the Government of the United States 
     of America and the Federated States of Micronesia Regarding 
     Aspects of the Marine Sovereignty and Jurisdiction of the 
     Federated States of Micronesia.
       (b) The Government of the United States and the Government 
     of the Federated States of Micronesia shall conclude prior to 
     the date of submission of this Compact, as amended, to the 
     legislatures of the two countries, the following related 
     agreements which shall come into effect on the effective date 
     of this Compact, as amended, and shall survive in accordance 
     with their terms, as follows:
       (1) Federal Programs and Services Agreement Between the 
     Government of the United States of America and the Government 
     of the Federated States of Micronesia Concluded Pursuant to 
     Article III of Title One, Article II of Title Two (including 
     Section 222), and Section 231 of the Compact of Free 
     Association, as amended which includes:
       (i) Postal Services and Related Programs;
       (ii) Weather Services and Related Programs;
       (iii) Civil Aviation Safety Service and Related Programs;
       (iv) Civil Aviation Economic Services and Related Programs;
       (v) United States Disaster Preparedness and Response 
     Services and Related Programs;
       (vi) Federal Deposit Insurance Corporation Services and 
     Related Programs; and
       (vii) Telecommunications Services and Related Programs.
       (2) Agreement Between the Government of the United States 
     of America and the Government of the Federated States of 
     Micronesia on Extradition, Mutual Assistance in Law 
     Enforcement Matters and Penal Sanctions Concluded Pursuant to 
     Section 175(a) of the Compact of Free Association, as 
     amended;
       (3) Agreement Between the Government of the United States 
     of America and the Government of the Federated States of 
     Micronesia on Labor Recruitment Concluded Pursuant to Section 
     175(b) of the Compact of Free Association, as amended;
       (4) Agreement Concerning Procedures for the Implementation 
     of United States Economic Assistance Provided in the Compact 
     of Free Association, as Amended, of Free Association Between 
     the Government of the United States of America and Government 
     of the Federated States of Micronesia;
       (5) Agreement Between the Government of the United States 
     of America and the Government of the Federated States of 
     Micronesia Implementing Section 215 and Section 216 of the 
     Compact, as Amended, Regarding a Trust Fund;
       (6) Agreement Regarding the Military Use and Operating 
     Rights of the Government of the United States in the 
     Federated States of Micronesia Concluded Pursuant to Sections 
     211(b), 321 and 323 of the Compact of Free Association, as 
     Amended; and the
       (7) Status of Forces Agreement Between the Government of 
     the United States of America and the Government of the 
     Federated States of Micronesia Concluded Pursuant to Section 
     323 of the Compact of Free Association, as Amended.
     Section 463
       (a) Except as set forth in subsection (b) of this section, 
     any reference in this Compact, as amended, to a provision of 
     the United States Code or the Statutes at Large of the United 
     States constitutes the incorporation of the language of such 
     provision into this Compact, as amended, as such provision 
     was in force on the effective date of this Compact, as 
     amended.
       (b) Any reference in Articles IV and Article VI of Title 
     One and Sections 174, 175, 178 and 342 to a provision of the 
     United States Code or the Statutes at Large of the United 
     States or to the Privacy Act, the Freedom of Information Act, 
     the Administrative Procedure Act or the Immigration and 
     Nationality Act constitutes the incorporation of the language 
     of such provision into this Compact, as amended, as such 
     provision was in force on the effective date of this Compact, 
     as amended, or as it may be amended thereafter on a non-
     discriminatory basis according to the constitutional 
     processes of the United States.

                              Article VII

                         Concluding Provisions

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

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

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

[[Page 30048]]



                                PREAMBLE

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

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

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

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

                               Article II

                            Foreign Affairs

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

                              Article III

                             Communications

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

                               Article IV

                              Immigration

     Section 141
       (a) In furtherance of the special and unique relationship 
     that exists between the United States and the Republic of the 
     Marshall Islands, under the Compact, as amended, any person 
     in the following categories may be admitted to lawfully 
     engage in occupations, and establish residence as a 
     nonimmigrant in the United States and its territories and 
     possessions (the ``United States'') without regard to 
     paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the 
     Immigration and Nationality Act, as amended, 8 U.S.C. 
     1182(a)(5) or (7)(B)(i)(II):
       (1) a person who, on October 21, 1986, was a citizen of the 
     Trust Territory of the Pacific Islands, as defined in Title 
     53 of the Trust Territory Code in force on January 1, 1979, 
     and has become and remains a citizen of the Republic of the 
     Marshall Islands;
       (2) a person who acquires the citizenship of the Republic 
     of the Marshall Islands at birth, on or after the effective 
     date of the Constitution of the Republic of the Marshall 
     Islands;
       (3) an immediate relative of a person referred to in 
     paragraphs (1) or (2) of this section, provided that such 
     immediate relative is a naturalized citizen of the Republic 
     of the Marshall Islands who has been an actual resident there 
     for not less than five years after attaining such 
     naturalization and who holds a certificate of actual 
     residence, and further provided, that, in the case of a 
     spouse, such spouse has been married to the person referred 
     to in paragraph (1) or

[[Page 30049]]

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

                               Article V

                             Representation

     Section 151
       Relations between the Government of the United States and 
     the Government of the Republic of the Marshall Islands shall 
     be conducted in accordance with the Vienna Convention on 
     Diplomatic Relations. In addition to diplomatic missions and 
     representation, the Governments may establish and maintain 
     other offices and designate other representatives on terms 
     and in locations as may be mutually agreed.
     Section 152
       (a) Any citizen or national of the United States who, 
     without authority of the United States, acts as the agent of 
     the Government of the Republic of the Marshall Islands with 
     regard to matters specified in the provisions of the Foreign 
     Agents Registration Act of 1938, as amended (22 U.S.C. 611 et 
     seq.), that apply with respect to an agent of a foreign 
     principal shall

[[Page 30050]]

     be subject to the requirements of such Act. Failure to comply 
     with such requirements shall subject such citizen or national 
     to the same penalties and provisions of law as apply in the 
     case of the failure of such an agent of a foreign principal 
     to comply with such requirements. For purposes of the Foreign 
     Agents Registration Act of 1938, the Republic of the Marshall 
     Islands shall be considered to be a foreign country.
       (b) Subsection (a) of this section shall not apply to a 
     citizen or national of the United States employed by the 
     Government of the Republic of the Marshall Islands with 
     respect to whom the Government of the Republic of the 
     Marshall Islands from time to time certifies to the 
     Government of the United States that such citizen or national 
     is an employee of the Republic of the Marshall Islands whose 
     principal duties are other than those matters specified in 
     the Foreign Agents Registration Act of 1938, as amended, that 
     apply with respect to an agent of a foreign principal. The 
     agency or officer of the United States receiving such 
     certifications shall cause them to be filed with the Attorney 
     General, who shall maintain a publicly available list of the 
     persons so certified.

                               Article VI

                        Environmental Protection

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

                              Article VII

                        General Legal Provisions

     Section 171
       Except as provided in this Compact, as amended, or its 
     related agreements, the application of the laws of the United 
     States to the Trust Territory of the Pacific Islands by 
     virtue of the Trusteeship Agreement ceased with respect to 
     the Marshall Islands on October 21, 1986, the date the 
     Compact went into effect.
     Section 172
       (a) Every citizen of the Republic of the Marshall Islands 
     who is not a resident of the United States shall enjoy the 
     rights and remedies under the laws of the United States 
     enjoyed by any non-resident alien.

[[Page 30051]]

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

[[Page 30052]]

     Compact, or any other provision of law authorizing financial, 
     program, or service assistance to the Republic of the 
     Marshall Islands.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

     Section 211 - Annual Grant Assistance
       (a) In order to assist the Government of the Republic of 
     the Marshall Islands in its efforts to promote the economic 
     advancement and budgetary self-reliance of its people, and in 
     recognition of the special relationship that exists between 
     the Republic of the Marshall Islands and the United States, 
     the Government of the United States shall provide assistance 
     on a grant basis for a period of twenty years in the amounts 
     set forth in section 217, commencing on the effective date of 
     this Compact, as amended. Such grants shall be used for 
     assistance in education, health care, the environment, public 
     sector capacity building, and private sector development, or 
     for other areas as mutually agreed, with priorities in the 
     education and health care sectors. Consistent with the 
     medium-term budget and investment framework described in 
     subsection (f) of this section, the proposed division of this 
     amount among the identified areas shall require the 
     concurrence of both the Government of the United States and 
     the Government of the Republic of the Marshall Islands, 
     through the Joint Economic Management and Financial 
     Accountability Committee described in section 214. The 
     Government of the United States shall disburse the grant 
     assistance and monitor the use of such grant assistance in 
     accordance with the provisions of this Article and an 
     Agreement Concerning Procedures for the Implementation of 
     United States Economic Assistance Provided in the Compact, as 
     Amended, of Free Association Between the Government of the 
     United States of America and the Government of the Republic 
     of the Marshall Islands (``Fiscal Procedures Agreement'') 
     which shall come into effect simultaneously with this 
     Compact, as amended.
       (1) Education.--United States grant assistance shall be 
     made available in accordance with the strategic framework 
     described in subsection (f) of this section to support and 
     improve the educational system of the Republic of the 
     Marshall Islands and develop the human, financial, and 
     material resources necessary for the Republic of the Marshall 
     Islands to perform these services. Emphasis should be placed 
     on advancing a quality basic education system.
       (2) Health.--United States grant assistance shall be made 
     available in accordance with the strategic framework 
     described in subsection (f) of this section to support and 
     improve the delivery of preventive, curative and 
     environmental care and develop the human, financial, and 
     material resources necessary for the Republic of the Marshall 
     Islands to perform these services.
       (3) Private sector development.--United States grant 
     assistance shall be made available in accordance with the 
     strategic framework described in subsection (f) of this 
     section to support the efforts of the Republic of the 
     Marshall Islands to attract foreign investment and increase 
     indigenous business activity by vitalizing the commercial 
     environment, ensuring fair and equitable application of the 
     law, promoting adherence to core labor standards, maintaining 
     progress toward privatization of state-owned and partially 
     state-owned enterprises, and engaging in other reforms.
       (4) Capacity building in the public sector.--United States 
     grant assistance shall be made available in accordance with 
     the strategic framework described in subsection (f) of this 
     section to support the efforts of the Republic of the 
     Marshall Islands to build effective, accountable and 
     transparent national and local government and other public 
     sector institutions and systems.
       (5) Environment.--United States grant assistance shall be 
     made available in accordance with the strategic framework 
     described in subsection (f) of this section to increase 
     environmental protection; establish and manage conservation 
     areas; engage in environmental infrastructure planning, 
     design construction and operation; and to involve the 
     citizens of the Republic of the Marshall Islands in the 
     process of conserving their country's natural resources.
       (b) Kwajalein Atoll.--
       (1) Of the total grant assistance made available under 
     subsection (a) of this section, the amount specified herein 
     shall be allocated annually from fiscal year 2004 through 
     fiscal year 2023 (and thereafter in accordance with the 
     Agreement between the Government of the United States and the 
     Government of the Republic of the Marshall Islands Regarding 
     Military Use and Operating Rights) to advance the objectives 
     and specific priorities set forth in subsections (a) and (d) 
     of this section and the Fiscal Procedures Agreement, to 
     address the special needs of the community at Ebeye, 
     Kwajalein Atoll and other Marshallese communities within 
     Kwajalein Atoll. This United States grant assistance shall be 
     made available, in accordance with the medium-term budget and 
     investment framework described in subsection (f) of this 
     section, to support and improve the infrastructure and 
     delivery of services and develop the human and material 
     resources necessary for the Republic of the Marshall Islands 
     to carry out its responsibility to maintain such 
     infrastructure and deliver such services. The amount of this 
     assistance shall be $3,100,000, with an inflation adjustment 
     as provided in section 218, from fiscal year 2004 through 
     fiscal year 2013 and the fiscal year 2013 level of funding, 
     with an inflation adjustment as provided in section 218, will 
     be increased by $2 million for fiscal year 2014. The fiscal 
     year 2014 level of funding, with an inflation adjustment as 
     provided in section 218, will be made available from fiscal 
     year 2015 through fiscal year 2023 (and thereafter as noted 
     above).
       (2) The Government of the United States shall also provide 
     to the Government of the Republic of the Marshall Islands, in 
     conjunction with section 321(a) of this Compact, as amended, 
     an annual payment from fiscal year 2004 through fiscal year 
     2023 (and thereafter in accordance with the Agreement between 
     the Government of the United States and the Government of the 
     Republic of the Marshall Islands Regarding Military Use and 
     Operating Rights) of $1.9 million. This grant assistance will 
     be subject to the Fiscal Procedures Agreement and will be 
     adjusted for inflation under section 218 and used to address 
     the special needs of the community at Ebeye, Kwajalein Atoll 
     and other Marshallese communities within Kwajalein Atoll with 
     emphasis on the Kwajalein landowners, as described in the 
     Fiscal Procedures Agreement.
       (3) Of the total grant assistance made available under 
     subsection (a) of this section, and in conjunction with 
     section 321(a) of the Compact, as amended, $200,000, with an 
     inflation adjustment as provided in section 218, shall be 
     allocated annually from fiscal year 2004 through fiscal year 
     2023 (and thereafter as provided in the Agreement between the 
     Government of the United States and the Government of the 
     Republic of the Marshall Islands Regarding Military Use and 
     Operating Rights) for a grant to support increased 
     participation of the Government of the Republic of the 
     Marshall Islands Environmental Protection Authority in the 
     annual U.S. Army Kwajalein Atoll Environmental Standards 
     Survey and to promote a greater Government of the Republic of 
     the Marshall Islands capacity for independent analysis of the 
     Survey's findings and conclusions.
       (c) Humanitarian Assistance--Republic of the Marshall 
     Islands Program.--In recognition of the special development 
     needs of the Republic of the Marshall Islands, the Government 
     of the United States shall make available to the Government 
     of the Republic of the Marshall Islands, on its request and 
     to be deducted from the grant amount made available under 
     subsection (a) of this section, a Humanitarian Assistance--
     Republic of the Marshall Islands (``HARMI'') Program with 
     emphasis on health, education, and infrastructure (including 
     transportation), projects and such other projects as mutually 
     agreed. The terms and conditions of the HARMI shall be set 
     forth in the Agreement Regarding the Military Use and 
     Operating Rights of the Government of the United States in 
     the Republic of the Marshall Islands Concluded Pursuant to 
     Sections 321 and 323 of the Compact of Free Association, as 
     Amended, which shall come into effect simultaneously with the 
     amendments to this Compact.
       (d) Public Infrastructure.--
       (1) Unless otherwise agreed, not less than 30 percent and 
     not more than 50 percent of U.S. annual grant assistance 
     provided under this section shall be made available in 
     accordance with a list of specific projects included in the 
     infrastructure improvement and maintenance plan prepared by 
     the Government of the Republic of the Marshall Islands as 
     part of the strategic framework described in subsection (f) 
     of this section.
       (2) Infrastructure maintenance fund.--Five percent of the 
     annual public infrastructure grant made available under 
     paragraph (1) of this subsection shall be set aside, with an 
     equal contribution from the Government of the Republic of the 
     Marshall Islands, as a contribution to an Infrastructure 
     Maintenance Fund. Administration of the Infrastructure 
     Maintenance Fund shall be governed by the Fiscal Procedures 
     Agreement.
       (e) Disaster Assistance Emergency Fund.--Of the total grant 
     assistance made available under subsection (a) of this 
     section, an amount of two hundred thousand dollars ($200,000) 
     shall be provided annually, with an equal contribution from 
     the Government of the Republic of the Marshall Islands, as a 
     contribution to a Disaster Assistance Emergency Fund 
     (``DAEF''). Any funds from the DAEF may be used only for 
     assistance and rehabilitation resulting from disasters and 
     emergencies. The funds will be accessed upon declaration of a 
     State of Emergency by the Government of the Republic of the 
     Marshall Islands, with the concurrence of the United States 
     Chief of Mission to the Republic of the Marshall Islands. 
     Administration of the DAEF shall be governed by the Fiscal 
     Procedures Agreement.
       (f) Budget and Investment Framework.--The Government of the 
     Republic of the Marshall Islands shall prepare and maintain 
     an official medium-term budget and investment framework. The 
     framework shall be strategic in nature, shall be continuously 
     reviewed and updated through the annual budget process, and 
     shall make projections on a multi-year rolling basis. Each of 
     the sectors and areas named in subsections (a), (b), and (d) 
     of this section, or other sectors and areas as mutually 
     agreed, shall be accorded specific treatment in the 
     framework. Those portions of the framework that contemplate 
     the use of United States grant funds shall require the 
     concurrence of both the Government of the United States and 
     the Government of the Republic of the Marshall Islands.
     Section 212--Kwajalein Impact and Use
       The Government of the United States shall provide to the 
     Government of the Republic of the Marshall Islands in 
     conjunction with section 321(a) of the Compact, as amended, 
     and the agreement between the Government of the

[[Page 30053]]

     United States and the Government of the Republic of the 
     Marshall Islands regarding military use and operating rights, 
     a payment in fiscal year 2004 of $15,000,000, with no 
     adjustment for inflation. In fiscal year 2005 and through 
     fiscal year 2013, the annual payment will be the fiscal year 
     2004 amount ($15,000,000) with an inflation adjustment as 
     provided under section 218. In fiscal year 2014, the annual 
     payment will be $18,000,000 (with no adjustment for 
     inflation) or the fiscal year 2013 amount with an inflation 
     adjustment under section 218, whichever is greater. For 
     fiscal year 2015 through fiscal year 2023 (and thereafter in 
     accordance with the Agreement between the Government of the 
     United States and the Government of the Republic of the 
     Marshall Islands Regarding Military Use and Operating Rights) 
     the annual payment will be the fiscal year 2014 amount, with 
     an inflation adjustment as provided under section 218.
     Section 213 - Accountability
       (a) Regulations and policies normally applicable to United 
     States financial assistance to its state and local 
     governments, as set forth in the Fiscal Procedures Agreement, 
     shall apply to each grant described in section 211, and to 
     grants administered under section 221 below, except as 
     modified in the separate agreements referred to in section 
     231 of this Compact, as amended, or by U.S. law. As set forth 
     in the Fiscal Procedures Agreement, reasonable terms and 
     conditions, including annual performance indicators that are 
     necessary to ensure effective use of United States assistance 
     and reasonable progress toward achieving program objectives 
     may be attached. In addition, the United States may seek 
     appropriate remedies for noncompliance with the terms and 
     conditions attached to the assistance, or for failure to 
     comply with section 234, including withholding assistance.
       (b) The Government of the United States shall, for each 
     fiscal year of the twenty years during which assistance is to 
     be provided on a sector grant basis under section 211 (a), 
     grant the Government of the Republic of the Marshall Islands 
     an amount equal to the lesser of (i) one half of the 
     reasonable, properly documented cost incurred during such 
     fiscal year to conduct the annual audit required under 
     Article VIII (2) of the Fiscal Procedures Agreement or (ii) 
     $500,000. Such amount will not be adjusted for inflation 
     under section 218 or otherwise.
     Section 214 - Joint Economic Management and Financial 
     Accountability Committee
       The Governments of the United States and the Republic of 
     the Marshall Islands shall establish a Joint Economic 
     Management and Financial Accountability Committee, composed 
     of a U.S. chair, two other members from the Government of the 
     United States and two members from the Government of the 
     Republic of the Marshall Islands. The Joint Economic 
     Management and Financial Accountability Committee shall meet 
     at least once each year to review the audits and reports 
     required under this Title and the Fiscal Procedures 
     Agreement, evaluate the progress made by the Republic of the 
     Marshall Islands in meeting the objectives identified in its 
     framework described in subsection (f) of section 211, with 
     particular focus on those parts of the framework dealing with 
     the sectors and areas identified in subsection (a) of section 
     211, identify problems encountered, and recommend ways to 
     increase the effectiveness of U.S. assistance made available 
     under this Title. The establishment and operations of the 
     Joint Economic Management and Financial Accountability 
     Committee shall be governed by the Fiscal Procedures 
     Agreement.
     Section 215 - Annual Report
       The Government of the Republic of the Marshall Islands 
     shall report annually to the President of the United States 
     on the use of United States sector grant assistance and other 
     assistance and progress in meeting mutually agreed program 
     and economic goals. The Joint Economic Management and 
     Financial Accountability Committee shall review and comment 
     on the report and make appropriate recommendations based 
     thereon.
     Section 216 - Trust Fund
       (a) The United States shall contribute annually for twenty 
     years from the effective date of the Compact, as amended, in 
     the amounts set forth in section 217 into a trust fund 
     established in accordance with the Agreement Between the 
     Government of the United States of America and the Government 
     of the Republic of the Marshall Islands Implementing Section 
     216 and Section 217 of the Compact, as Amended, Regarding a 
     Trust Fund (``Trust Fund Agreement''), which shall come into 
     effect simultaneously with this Compact, as amended. Upon 
     termination of the annual grant assistance under section 211 
     (a), (d) and (e), the earnings of the fund shall thereafter 
     be used for the purposes described in section 211 or as 
     otherwise mutually agreed.
       (b) The United States contribution into the Trust Fund 
     described in subsection (a) of this section is conditioned on 
     the Government of the Republic of the Marshall Islands 
     contributing to the Trust Fund at least $25,000,000, on the 
     effective date of the Trust Fund Agreement or on October 1, 
     2003, whichever is later, $2,500,000 prior to October 1, 
     2004, and $2,500,000 prior to October 1, 2005. Any funds 
     received by the Republic of the Marshall Islands under 
     section 111(d) of Public Law 99-239 (January 14, 1986), or 
     successor provisions, would be contributed to the Trust Fund 
     as a Republic of the Marshall Islands' contribution.
       (c) The terms regarding the investment and management of 
     funds and use of the income of the Trust Fund shall be 
     governed by the Trust Fund Agreement. Funds derived from 
     United States investment shall not be subject to Federal or 
     state taxes in the United States or any taxes in the Republic 
     of the Marshall Islands. The Trust Fund Agreement shall also 
     provide for annual reports to the Government of the United 
     States and to the Government of the Republic of the Marshall 
     Islands. The Trust Fund Agreement shall provide for 
     appropriate distributions of trust fund proceeds to the 
     Republic of the Marshall Islands and for appropriate remedies 
     for the failure of the Republic of the Marshall Islands to 
     use income of the Trust Fund for the annual grant purposes 
     set forth in section 211. These remedies may include the 
     return to the United States of the present market value of 
     its contributions to the Trust Fund and the present market 
     value of any undistributed income on the contributions of the 
     United States. If this Compact, as amended, is terminated, 
     the provisions of sections 451-453 of the Compact, as 
     amended, and the Trust Fund Agreement shall govern treatment 
     of any U.S. contributions to the Trust Fund or accrued income 
     thereon.
     Section 217 - Annual Grant Funding and Trust Fund 
     Contributions
       The funds described in sections 211, 212, 213(b), and 216 
     shall be made available as follows:


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

     Section 218 - Inflation Adjustment
       Except as otherwise provided, the amounts stated in this 
     Title shall be adjusted for each United States Fiscal Year by 
     the percent that equals two-thirds of the percent change in 
     the United States Gross Domestic Product Implicit Price 
     Deflator, or 5 percent, whichever is less in any one year, 
     using the beginning of Fiscal Year 2004 as a base.
     Section 219 - Carry-Over of Unused Funds
       If in any year the funds made available by the Government 
     of the United States for that year

[[Page 30054]]

     pursuant to this Article are not completely obligated by the 
     Government of the Republic of the Marshall Islands, the 
     unobligated balances shall remain available in addition to 
     the funds to be provided in subsequent years.

                               Article II

                    Services and Program Assistance

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

                              Article III

                       Administrative Provisions

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

                               Article IV

                                 Trade

     Section 241
       The Republic of the Marshall Islands is not included in the 
     customs territory of the United States.
     Section 242
       The President shall proclaim the following tariff treatment 
     for articles imported from the Republic of the Marshall 
     Islands which shall apply during the period of effectiveness 
     of this title:
       (a) Unless otherwise excluded, articles imported from the 
     Republic of the Marshall Islands, subject to the limitations 
     imposed under section 503(b) of title V of the Trade Act of 
     1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
       (b) Only tuna in airtight containers provided for in 
     heading 1604.14.22 of the Harmonized Tariff Schedule of the 
     United States that is imported from the Republic of the 
     Marshall Islands and the Federated States of Micronesia 
     during any calendar year not to exceed 10 percent of apparent 
     United States consumption of tuna in airtight containers 
     during the immediately preceding calendar year, as reported 
     by the National Marine Fisheries Service, shall be exempt 
     from duty; but the quantity of tuna given duty-free treatment 
     under this paragraph for any calendar year shall be counted 
     against the aggregated quantity of tuna in airtight 
     containers that is dutiable under rate column numbered 1 of 
     such heading 1604.14.22 for that calendar year.
       (c) The duty-free treatment provided under subsection (a) 
     shall not apply to:
       (1) watches, clocks, and timing apparatus provided for in 
     Chapter 91, excluding heading 9113, of the Harmonized Tariff 
     Schedule of the United States;
       (2) buttons (whether finished or not finished) provided for 
     in items 9606.21.40 and 9606.29.20 of such Schedule;
       (3) textile and apparel articles which are subject to 
     textile agreements; and
       (4) footwear, handbags, luggage, flat goods, work gloves, 
     and leather wearing apparel which were not eligible articles 
     for purposes of title V

[[Page 30055]]

     of the Trade Act of 1974 (19 U.S.C. 2461, et seq.) on April 
     1, 1984.
       (d) If the cost or value of materials produced in the 
     customs territory of the United States is included with 
     respect to an eligible article which is a product of the 
     Republic of the Marshall Islands, an amount not to exceed 15 
     percent of the appraised value of the article at the time it 
     is entered that is attributable to such United States cost or 
     value may be applied for duty assessment purposes toward 
     determining the percentage referred to in section 503(a)(2) 
     of title V of the Trade Act of 1974.
     Section 243
       Articles imported from the Republic of the Marshall Islands 
     which are not exempt from duty under subsections (a), (b), 
     (c), and (d) of section 242 shall be subject to the rates of 
     duty set forth in column numbered 1-general of the Harmonized 
     Tariff Schedule of the United States (HTSUS).
     Section 244
       (a) All products of the United States imported into the 
     Republic of the Marshall Islands shall receive treatment no 
     less favorable than that accorded like products of any 
     foreign country with respect to customs duties or charges of 
     a similar nature and with respect to laws and regulations 
     relating to importation, exportation, taxation, sale, 
     distribution, storage or use.
       (b) The provisions of subsection (a) shall not apply to 
     advantages accorded by the Republic of the Marshall Islands 
     by virtue of their full membership in the Pacific Island 
     Countries Trade Agreement (PICTA), done on August 18, 2001, 
     to those governments listed in Article 26 of PICTA, as of the 
     date the Compact, as amended, is signed.
       (c) Prior to entering into consultations on, or concluding, 
     a free trade agreement with governments not listed in Article 
     26 of PICTA, the Republic of the Marshall Islands shall 
     consult with the United States regarding whether or how 
     subsection (a) of section 244 shall be applied.

                               Article V

                          Finance and Taxation

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

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

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

[[Page 30056]]

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

                               Article II

                Defense Facilities and Operating Rights

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

                              Article III

         Defense Treaties and International Security Agreements

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

                               Article IV

              Service in Armed Forces of the United States

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

                               Article V

                           General Provisions

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

[[Page 30057]]

     or relating to the Republic of the Marshall Islands or the 
     Federated States of Micronesia.

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

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

                               Article II

                   Conference and Dispute Resolution

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

                              Article III

                               Amendment

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

                               Article IV

                              Termination

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

                               Article V

                             Survivability

     Section 451
       (a) Should termination occur pursuant to section 441, 
     economic and other assistance by the Government of the United 
     States shall continue only if and as mutually agreed by the 
     Governments of the United States and the Republic of the 
     Marshall Islands, and in accordance with the countries' 
     respective constitutional processes.
       (b) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections (b) and (c) of section 354 of this Compact, as 
     amended, and the separate agreement entered into consistent 
     with those subsections, if termination occurs pursuant to 
     section 441 prior to the twentieth anniversary of the 
     effective date of this Compact, as amended, the United States 
     shall continue to make contributions to the Trust Fund 
     described in section 216 of this Compact, as amended.
       (c) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands described in 
     subsection (b) of this section, if termination occurs 
     pursuant to section 441 following the twentieth anniversary 
     of the effective date of this Compact, as amended, the 
     Republic of the Marshall Islands shall be entitled to receive 
     proceeds from the Trust Fund described in section 216 of this 
     Compact, as amended, in the manner described in those 
     provisions and the Trust Fund Agreement.
     Section 452
       (a) Should termination occur pursuant to section 442 prior 
     to the twentieth anniversary of the effective date of this 
     Compact, as amended, the following provisions of this amended 
     Compact shall remain in full force and effect until the 
     twentieth anniversary of the effective date of this Compact, 
     as amended, and thereafter as mutually agreed:
       (1) Article VI and sections 172, 173, 176 and 177 of Title 
     One;
       (2) Article One and sections 232 and 234 of Title Two;
       (3) Title Three; and
       (4) Articles II, III, V and VI of Title Four.
       (b) Should termination occur pursuant to section 442 before 
     the twentieth anniversary of the effective date of this 
     Compact, as amended:
       (1) Except as provided in paragraph (2) of this subsection 
     and subsection (c) of this section, economic and other 
     assistance by the United States shall continue only if and as 
     mutually agreed by the Governments of the United States and 
     the Republic of the Marshall Islands.
       (2) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections (b) and (c) of section 354 of this Compact, as 
     amended, and the separate agreement regarding mutual 
     security, and the Trust Fund Agreement, the United States 
     shall continue to make contributions to the Trust Fund 
     described in section 216 of this Compact, as amended, in the 
     manner described in the Trust Fund Agreement.
       (c) In view of the special relationship of the United 
     States and the Republic of the Marshall Islands, as reflected 
     in subsections 354(b) and (c) of this Compact, as amended, 
     and the separate agreement regarding mutual security, and

[[Page 30058]]

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

                               Article VI

                          Definition of Terms

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

[[Page 30059]]

     of Free Association Between the Government of the United 
     States of America and the Government of the Republic of the 
     Marshall Islands;
       (5) Agreement Between the Government of the United States 
     of America and the Government of the Republic of the Marshall 
     Islands Implementing Section 216 and Section 217 of the 
     Compact, as Amended, Regarding a Trust Fund;
       (6) Agreement Regarding the Military Use and Operating 
     Rights of the Government of the United States in the Republic 
     of the Marshall Islands Concluded Pursuant to Sections 321 
     and 323 of the Compact of Free Association, as Amended; and,
       (7) Status of Forces Agreement Between the Government of 
     the United States of America and the Government of the 
     Republic of the Marshall Islands Concluded Pursuant to 
     Section 323 of the Compact of Free Association, as Amended.
     Section 463
       (a) Except as set forth in subsection (b) of this section, 
     any reference in this Compact, as amended, to a provision of 
     the United States Code or the Statutes at Large of the United 
     States constitutes the incorporation of the language of such 
     provision into this Compact, as amended, as such provision 
     was in force on the effective date of this Compact, as 
     amended.
       (b) Any reference in Article IV and VI of Title One, and 
     Sections 174, 175, 178 and 342 to a provision of the United 
     States Code or the Statutes at Large of the United States or 
     to the Privacy Act, the Freedom of Information Act, the 
     Administrative Procedure Act or the Immigration and 
     Nationality Act constitutes the incorporation of the language 
     of such provision into this Compact, as amended, as such 
     provision was in force on the effective date of this Compact, 
     as amended, or as it may be amended thereafter on a non-
     discriminatory basis according to the constitutional 
     processes of the United States.

                              Article VII

                         Concluding Provisions

     Section 471
       Both the Government of the United States and the Government 
     of the Republic of the Marshall Islands shall take all 
     necessary steps, of a general or particular character, to 
     ensure, no later than the entry into force date of this 
     Compact, as amended, the conformity of its laws, regulations 
     and administrative procedures with the provisions of this 
     Compact, as amended, or, in the case of subsection (d) of 
     section 141, as soon as reasonably possible thereafter.
     Section 472
       This Compact, as amended, may be accepted, by signature or 
     otherwise, by the Government of the United States and the 
     Government of the Republic of the Marshall Islands.
       IN WITNESS WHEREOF, the undersigned, duly authorized, have 
     signed this Compact of Free Association, as amended, which 
     shall enter into force upon the exchange of diplomatic notes 
     by which the Government of the United States of America and 
     the Government of the Republic of the Marshall Islands inform 
     each other about the fulfillment of their respective 
     requirements for entry into force.
       DONE at Majuro, Republic of the Marshall Islands, in 
     duplicate, this thirtieth (30) day of April, 2003, each text 
     being equally authentic.
Signed (May 14, 2003) For the Government of the United States of 
  ASigned (May 14) For the Government of the Federated States of 
                                                            Micronesia:
       Approved____, 2003.

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

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


                             General Leave

  Mr. LEACH. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on the joint resolution under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Iowa?
  There was no objection.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of House Joint Resolution 63, 
legislation that reauthorizes the Compact of Free Association of the 
Federated States of Micronesia and the Republic of the Marshall 
Islands.
  Mr. Speaker, the text of H.J. Res. 63 which is before us is 
substantially identical to the extensive bill passed by this body 3 
weeks ago. The few changes it incorporates were the result of the 
bipartisan, bicameral consultations prior to passage in the other body, 
and in my judgment represent further improvements to this legislative 
product.
  Specifically, these include an amendment to the education section 
which ensures retention within the islands of eligibility for 
participation in U.S. special education programs; a modification of the 
disaster assistance provisions based primarily on a recent proposal 
from the administration which envisions continuing roles for both the 
Federal Emergency Management Agency and the U.S. Agency for 
International Development's Office of Foreign Disaster Assistance; and 
the inclusion of $5.3 million for the final U.S. contribution to the 
trust fund established to assist in the resettlement of Rongelap 
Island, the locale for the U.S. thermonuclear tests in the 1940s and 
1950s.
  It would be my hope that we could finalize this noncontroversial 
package today and send it to the President for signature before the end 
of the session. As my colleagues may be aware, the economic assistance 
provisions of the current Compact with Micronesia and the Marshall 
Islands expired in 2001, but were extended for 2 years while the United 
States renegotiated the expiring provisions with the island countries. 
These negotiations were only completed this spring, leaving Congress 
relatively little time to act on a host of difficult substantive and 
jurisdictional issues before those authorities expired on September 30, 
2003. Because Congress was not able to reauthorize the compacts prior 
to the end of the fiscal year, the basic authorities for U.S. 
assistance to the islands have been extended temporarily by continuing 
resolution.
  In closing, I would like to thank again the chairmen and ranking 
members of the Committees on Resources, Education and the Work Force, 
Budget, Ways and Means, and the Committee on International Relations, 
particularly the gentleman from California (Mr. Lantos), for their 
assistance and cooperation in developing and supporting this important 
legislation which further advances relations with our stalwart friends 
in the freely associated states and protects key U.S. interests in the 
Western Pacific. I urge support for the resolution.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of this legislation. I am very 
pleased that the House is taking final action today on renewal of the 
Compact of Free Association with the Federated States of Micronesia and 
the Republic of the Marshall Islands.
  With final approval of these compacts, the United States will further 
solidify our relationship with these Western Pacific nations, both of 
which are close allies and make an ongoing contribution to our national 
defense.

[[Page 30060]]



                              {time}  1530

  To understand the importance of renewing the compacts, Mr. Speaker, 
we must remember our Nation's history in the region. During the Second 
World War, American soldiers liberated the Pacific, island by island, 
in brutal and bloody battles. After the war, the United States 
administered Micronesia and the Marshalls, and we have maintained a 
vitally important military base on Kwajalein Atoll.
  In the 1940s and 1950s, the United States used the Marshall Islands 
as a nuclear testing ground. The Marshallese people were dramatically 
affected by these nuclear tests, and entire islands remain 
uninhabitable, even today. Since the independence of the Marshalls and 
Micronesia in 1986, the ties between our nations have grown even 
stronger. When Congress approved the Compact of Free Association in 
1986, we received a very good bargain. Funds would flow to the island 
nations in return for strategic denial and a defense veto. The 
Kwajalein Army Base is vitally important to American missile tests, and 
as a listening post to the world. With approval of the compacts, the 
United States advanced our national security interests. However, our 
government inadequately monitored the expenditure of funds and ignored 
the need to promote economic development in the islands.
  The compacts before the House today ensure that funds will be well 
spent in the future, will promote sound economic development, and will 
focus on the all-important subjects of education and health care. They 
also establish trust funds for both nations to ensure that they can 
become self-sufficient in 20 years.
  Mr. Speaker, H.J. Res. 63 promotes our Nation's national security 
interests and furthers our already excellent relationship with the 
Marshalls and Micronesia. I urge its approval.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LEACH. Mr. Speaker, I reserve the balance of my time.
  Mr. LANTOS. Mr. Speaker, it gives me extraordinary pleasure to yield 
5 minutes to the gentlewoman from California (Ms. Watson), our former 
distinguished Ambassador to Micronesia.
  Ms. WATSON. Mr. Speaker, I would like to thank the gentleman from 
California (Mr. Lantos), the gentleman from Iowa (Mr. Leach) and all 
those who had a very active part in bringing this bill to the floor. I 
was privileged and honored to represent the United States as the 
Ambassador to the Federated States of Micronesia, and I have a deep and 
abiding respect for the island nations who are struggling to build 
their democracy following the American model. I am pleased that we have 
advanced the new compact legislation out of Congress to this point.
  Although most of the contentious issues in the compact have been 
addressed, the funding allocated for education still continues to 
concern me. I visited many of the schools, and I can tell my colleagues 
that they need a lot of help. We have to take them from the past into 
the present, and we have to see that they have the technology in their 
classrooms to make them a part of our new global economy. The RMI and 
FSM children have only just begun to benefit from the establishment of 
an integrated education system, and I am very pleased to know that 
authorization for educational programs is included in the bill.
  In my former profession of teaching, I have witnessed the impact of 
early structured education. Young children are much better equipped to 
enter the educational system when they are exposed to education at an 
early age. Our Head Start program over there is the Cadillac program of 
the island. Everyone clamors to get their children in there whether 
they qualify or not. The educational appropriations that Chairman 
Regula has offered to support is critical to keep these effective 
programs in place and give these children of these distant Pacific 
islands an opportunity.
  I also strongly support those provisions in this compact that provide 
for continued Pell Grant eligibility for the FAS. It will bolster the 
ability of the FAS to cultivate education. If we were to eliminate the 
Pell Grant assistance, we would have decimated the college system in 
the Federated States of Micronesia. A large portion of the operating 
funds for the college are obtained through Pell Grants. When you see 
these young people able to do 2 years in their college and then come 
here to the United States and then come back home and lend their 
expertise to this new emerging government, it really fills your heart 
with glee, and we should be so proud.
  One other important area that I would like to point out is the 
reinstatement of FEMA assistance. It has been placed back into the 
compact for infrastructure purposes and major catastrophes. USAID is 
not equipped to deal with all of the problems that arise on small 
islands nor do they have the ready response to help in a timely 
fashion. The FEMA assistance is absolutely critical because being 
surrounded by water and spread out over a million miles of ocean, we 
are always in line for some kind of natural catastrophe.
  As we move forward with our unique relationship with the Freely 
Associated States, I hope the United States Congress will continue to 
be supportive and receptive of the needs of our new democratic friends.
  I urge my colleagues to understand the importance of the FAS, and I 
fully support this piece of legislation.
  Mr. LANTOS. Mr. Speaker, I want to thank my friend for her eloquent 
and powerful statement.
  Mr. Speaker, I yield 5 minutes to the distinguished gentlewoman from 
Guam (Mr. Bordallo).
  Ms. BORDALLO. Mr. Speaker, I thank the gentleman from California (Mr. 
Lantos) and the gentleman from Iowa (Mr. Leach) for this opportunity. I 
want to take this time to thank the leadership for their work on the 
Compact of Free Association Amendments Act. This piece of legislation 
is vital to the Pacific region and so important to the people of Guam. 
Guam is the closest American neighbor to the Freely Associated States. 
We have witnessed the progress that the Federated States of Micronesia 
and the Republic of the Marshall Islands have made under the original 
compact since 1986. Today this House will approve a renewal of this 
compact and recommit the United States of America to friendship with 
steadfast allies in the Pacific. Over the past 2 years, a lot of work 
has been exerted in renegotiating the terms of the original compact, 
and today we consider this measure for the final time before it makes 
its way to the White House. I am pleased that we are able to come to 
agreement in a bipartisan effort on matters that are so important to 
the Freely Associated States. Continuation of their eligibility for 
Pell Grants, Job Corps and programs under the Individuals with 
Disabilities Education Act is protected by H.J. Res. 63. This 
legislation also provides for an improved process to address the impact 
the immigration provisions have on affected U.S. jurisdictions. Annual 
mandatory funding in the amount of $30 million is provided for by this 
bill to be shared by Guam, Hawaii, the Commonwealth of the Northern 
Mariana Islands and American Samoa to help defray costs associated with 
immigration. The legislation includes my provision for compact-impact 
reconciliation to address the unreimbursed compact costs over the past 
17 years.
  I want to recognize the work of the U.S. negotiating teams, most 
particularly the contributions of the chief U.S. negotiators, Al 
Stayman in the early phase and Colonel Al Short under the Bush 
administration. I congratulate the leadership of the Federated States 
of Micronesia and the Republic of the Marshall Islands for their 
successful efforts. I want to acknowledge and thank the united efforts 
of Guam's leaders on the provisions important to our island. Governor 
Camacho and Speaker Pangelinan traveled thousands of miles to 
Washington in July to testify before the House Committee on Resources. 
Additionally, Mr. Speaker, I want to thank the gentlemen from Hawaii 
(Mr. Abercrombie) and (Mr. Case) for their efforts. I also want to 
thank the gentleman from Iowa (Mr. Leach), the gentleman from Illinois 
(Mr. Hyde), the gentleman from California (Mr. Pombo), the gentleman 
from Ohio (Mr. Boehner) and the gentleman from

[[Page 30061]]

Wisconsin (Mr. Sensenbrenner) for their leadership in crafting this 
legislation as well as the gentleman from Iowa (Mr. Nussle), the 
gentleman from Ohio (Mr. Regula) and the gentleman from California (Mr. 
Thomas) for their input on matters under their committee's 
jurisdictions. I also want to thank the gentleman from California (Mr. 
Lantos), the gentleman from West Virginia (Mr. Rahall), the gentleman 
from California (Mr. George Miller), the gentleman from Michigan (Mr. 
Conyers), the gentleman from South Carolina (Mr. Spratt), the gentleman 
from Wisconsin (Mr. Obey), and the gentleman from New York (Mr. Rangel) 
for their help in addressing matters of concern as this bill moved 
through the process, and to thank the staff serving on these 
committees.
  Lastly, Mr. Speaker, I want to make special mention of the work the 
gentleman from American Samoa (Mr. Faleomavaega) has put into the 
legislation. His service is invaluable to this institution and the 
people of the Pacific islands hold him in high esteem. This is indeed, 
Mr. Speaker, an historic day for the Pacific islands. I urge adoption 
of H.J. Res. 63.
  Mr. LANTOS. Mr. Speaker, I am very pleased to yield 2 minutes to the 
distinguished gentleman from Hawaii (Mr. Abercrombie).
  Mr. ABERCROMBIE. Mr. Speaker, our colleague and friend from Guam has 
made manifest in her remarks the debt of gratitude that is owed to many 
individuals, some of whom are here and are represented, I think, on the 
whole by our colleagues who are in charge of the bill on the floor.
  This is an issue of little note for many Members. It would be easy, I 
expect, to say that the compact for Micronesia represents an area of 
forgotten people, but that would be incorrect, Mr. Speaker, because in 
many instances this is an area of the never noticed. It is something 
that is difficult for many people in the United States, let alone in 
the rest of the world, to comprehend that we have here a colonial 
vestige, a post-World War II anachronism. We have a situation in which 
responsibility exists for the United States which is scarcely 
understood, let alone taken into account, not because of design but 
rather by the default and omission of elementary understanding.
  Those of us who live in the Pacific, those of us who are aware of the 
human dimension that is involved here are particularly grateful to all 
of the individuals and committee staff members that have been noted by 
my good friend from Guam. I want to pay particular notice to my 
chairman on the Committee on Resources, the gentleman from California 
(Mr. Pombo) who has assumed these duties with this Congress. Some of 
the other Members mentioned are long familiar with the compact. The 
gentleman from California has exhibited a particular sensitivity and 
quest for understanding that I think has aided immeasurably in the 
accomplishment of dealing with what is, in fact, an unfunded mandate. 
The compact requires us to meet certain standards and, as has been 
mentioned by my good friend from Guam, Guam, Hawaii and the Marianas 
bear the brunt of the financial side of this as well.
  Free association means that people are able to travel freely and as a 
result of this compact, Mr. Speaker, I think we have taken an enormous 
step forward, and my gratitude and aloha to all those who helped to 
provide it and get us to this step today. Mahalo to all.
  Mr. LANTOS. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume. In 
conclusion, let me thank each of the contributors to today's 
discussion. Obviously, the gentleman from California (Mr. Lantos) has 
played a seminal role in this process; so have the gentlewoman from 
California (Ms. Watson), the gentleman from American Samoa (Mr. 
Faleomavaega), the gentleman from Hawaii (Mr. Abercrombie), and I would 
like to note with regard to the gentlewoman from Guam (Ms. Bordallo), 
how appreciative we are of her help in this endeavor, and how 
appreciative I am that she has referenced all the people from the 
outside that have contributed to the development of this particular 
agreement.
  I might say that Congress has put a slightly modified stamp on what 
was negotiated by the executive branch. This modified stamp is tilted 
towards generosity.

                              {time}  1545

  This is particularly appropriate because this is the people's body, 
and we are in the fortunate position of having nothing but feelings of 
enormous goodwill towards the people of the freely associated states.
  This is a tangible agreement, but it is what is intangible that is so 
much more important. So as we in this House pass this agreement, I 
would just like to say that I am confident I speak for this entire body 
when I suggest that we are proud of our friends in the Pacific and we 
hope to maintain warm relationships for decades and decades to come.
  Mr. ABERCROMBIE. Mr. Speaker, I would like to express my wholehearted 
support for the final passage of H.J. Res. 63, the Compact of Free 
Association Amendments Act of 2003. Years of negotiations and the 
cooperative work of many people has brought us to this point, the 
reauthorization of the Compact by Congress.
  For the past 17 years, the United States has had a secure 
relationship with the Freely Associated States (FAS). The Federated 
States of Micronesia (FSM) and the Republic of the Marshall Islands 
(RMI) have been able to transition from a United Nations trusteeship to 
sovereign governments. At the same time, the United States has had its 
security and defense interests in the Pacific fulfilled. H.J. Res. 63 
will not only allow this critical economic and military relationship to 
continue, but will improve upon its successes and ensure that FAS 
citizens get the maximum benefit possible from this agreement.
  H.J. Res. 63 extends our military commitments in the Pacific by 
retaining certain defense rights as well as providing for continued 
access to Kwajalein Atoll, home of the Ronald Reagan Ballistic Missile 
Defense Test Site.
  This legislation also includes provisions affecting the health, 
education, and welfare of FAS citizens. They will continue to be 
eligible for funds from the Pell Grant Program and from the Individuals 
with Disabilities Education Act, resources which are integral to their 
development of a competent and effective education system. They will 
also be eligible for funds to combat the spread of communicable 
diseases such as tuberculosis, cholera and Hansen's disease. FAS 
citizens can have complicated and severe health care needs and this 
grant money will go a long way toward easing these health difficulties.
  The Compact also allows FAS citizens to enter the United States and 
its territories as nonimmigrants. These provisions are being enhanced 
to include security measures and more dependable passports. In 
addition, due to the ability to freely migrate, Compact migrants have 
been entering the United States in ever increasing numbers. This 
migration is having an enormous impact on the education, health, public 
safety and social service systems of the areas receiving these compact 
migrants. These costs have a very tangible impact and collectively, are 
fast approaching the $100 million per year level. For the State of 
Hawaii alone, more than $32 million was expended in 2002 in order to 
support Compact migrants and help ensure their health and well-being.
  H.J. Res. 63 addresses this effect by creating a mandatory funding 
stream of $30 million a year in compensation for Hawaii, Guam, the 
Commonwealth of the Northern Mariana Islands, and American Samoa. These 
areas have borne the brunt of this impact since 1986 and although these 
funds will be divided among the four jurisdictions, it will be the 
largest compensation any of these jurisdictions has received to date. 
In addition, health care providers will also be eligible for the 
reimbursement of expenses arising from the treatment of Compact 
migrants. While these funds will surely cover only a portion of the 
total impact cost, its yearly distribution will undoubtedly have a 
great effect on the state and territorial departments and agencies that 
have spent untold resources and labor in providing for the Compact 
migrants.
  The scope of this Compact assures that every FAS citizen will be 
affected in some way and that is why I applaud the efforts to produce a 
bipartisan compromise with the input of all affected parties. Chairman 
Pombo of the House Resources Committee has been especially willing to 
listen to the voices of people in the Pacific and has bent over 
backwards to be fair and just. Chairman Hyde,

[[Page 30062]]

Chairman Boehner and Chairman Nussle have also accomplished tremendous 
work in bringing this bill to the floor. Thanks to their efforts, I 
have no doubt that our relationship with these Pacific nations will 
continue to be productive and mutually beneficial. I urge my colleagues 
to support this important measure.
  Mr. FALEOMAVAEGA. Mr. Speaker, I would like to extend my gratitude to 
Chairman Hyde and Ranking Member Lantos of the International Relations 
Committee, Chairman Pombo and Ranking Member Rahall of the Resources 
Committee and my good friend, Chairman Jim Leach of the International 
Relations Subcommittee on Asia and the Pacific for working so 
diligently these past several months to address some of the very 
important concerns raised by the RMI and FSM as it relates to the 
Compact of Free Association.
  The Compacts of Free Association commenced in 1986 between the 
Federated States of Micronesia and the Republic of the Marshall Islands 
and the United States. In brief, the United States agrees to provide 
federal funding to the FSM and RMI and in turn both agree to provide 
the U.S. with certain defense rights now including use of eleven 
defense sites on Kwajalein Atoll where the U.S. Department of Defense 
has established a multi-billion dollar anti-ballistic missile testing 
facility.
  In October 2001, portions of the Compact expired and representatives 
from the FSM, RMI and the Department of the Interior began negotiating 
an extension of these provisions. Earlier this year, DOI sent Congress 
the negotiated product to be considered as the re-authorization of the 
Compacts of Free Association. However, key provisions, including 
funding for Pell Grants and FEMA assistance were excluded from the 
agreement and, over the last several months, my colleagues and I have 
been working closely with representatives from both the FSM and RMI to 
address these concerns.
  Mr. 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 and assistance in building local capacity. As you 
know, education is invaluable to building self-sufficiency and local 
capacity and ultimately will contribute to bolstering the economy of 
these developing nations. This is why I am pleased that the bill before 
us today now provides the Freely Associated States with Pell Grants 
assistance and also recognizes the importance of FEMA assistance to 
these islands.
  The truth is, the Freely Associated States have made many sacrifices 
and contributions on behalf of the United States. In fact, the U.S. 
used the Marshall Islands as a nuclear testing ground and detonated 
more than 67 nuclear bombs, including the first hydrogen bomb which was 
1,000 times more powerful than the bombs dropped on Hiroshima and 
Nagasaki during World War II. The results were and continue to be 
devastating.
  As a Pacific Islander, I am pleased that H.J. Res 63 acknowledges the 
contributions and sacrifices made by the FAS and also addresses the 
needs and concerns of the people of the FSM and RMI. I am also pleased 
that my colleagues have worked closely with me to make sure that 
American Samoa's tuna industry was protected in the process of these 
negotiations. The outcome of H.J. Res 63 will determine our 
relationship with the FSM and RMI for the next twenty years and will 
also affect American Samoa's tuna industry for generations to come.
  I urge my colleagues to honor our pledge to the people of the FAS to 
assist them in maintaining a democratic government and supporting the 
principles that contribute to economic development and self-
sufficiency. I also urge my colleagues to support American Samoa's 
interests by voting yes for H.J. Res 63.
  Mr. LEACH. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Terry). The question is on the motion 
offered by the gentleman from Iowa (Mr. Leach) that the House suspend 
the rules and concur in the Senate amendments to the joint resolution, 
H.J. Res. 63.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. LANTOS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________