    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    117 STAT. 2720

    Public Law 108-188
    108th Congress

    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. <>

    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

    Resolved by the Senate and House of Representatives of the United
    States of America in Congress assembled, <>

    [[Page 2721]]
    117 STAT. 2721

    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.
    (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.

    [[Page 2722]]
    117 STAT. 2722

    (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.

    [[Page 2723]]
    117 STAT. 2723

    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

    rticle 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.-

    [[Page 2724]]
    117 STAT. 2724

    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 2725]]
    117 STAT. 2725

    (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.

    [[Page 2726]]
    117 STAT. 2726

    (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

    [[Page 2727]]
    117 STAT. 2727

    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

    [[Page 2728]]
    117 STAT. 2728

    there are legal impediments to continued use of Ejit by the
    people of Bikini.
    (2) In the joint resolution of January 14, 1986 (Public Law
    99-239) Congress provided that if the impediments described in
    paragraph (1) do arise, the United States will cooperate with
    the Government of the Marshall Islands in assisting any person
    adversely affected by such judicial determination to remain on
    Ejit, or in locating suitable and acceptable alternative lands
    for such person's use.
    (3) In the joint resolution of January 14, 1986 (Public Law
    99-239) Congress provided that paragraph (1) shall not be
    applied in a manner which would prevent the Government of the
    Marshall Islands from acting in accordance with its
    constitutional processes to resolve title and ownership claims
    with respect to such lands or from taking substitute or
    additional measures to meet the needs of the people of Bikini
    with their democratically expressed consent and approval.

    (c) Section 177 Agreement.--
    (1) <> In the joint resolution of
    January 14, 1986 (Public Law 99-239) Congress provided that in
    furtherance of the purposes of Article I of the Subsidiary
    Agreement for Implementation of Section 177 of the Compact, the
    payment of the amount specified therein shall be made by the
    United States under Article I of the Agreement between the
    Government of the United States and the Government of the
    Marshall Islands for the Implementation of section 177 of the
    Compact (hereafter in this subsection referred to as the
    ``Section 177 Agreement'') only after the Government of the
    Marshall Islands has notified the President of the United States
    as to which investment management firm has been selected by such
    Government to act as Fund Manager under Article I of the Section
    177 Agreement.
    (2) In the joint resolution of January 14, 1986 (Public Law
    99-239) Congress provided that in the event that the President
    determines that an investment management firm selected by the
    Government of the Marshall Islands does not meet the
    requirements specified in Article I of the Section 177
    Agreement, the United States shall invoke the conference and
    dispute resolution procedures of Article II of Title Four of the
    Compact. Pending the resolution of such a dispute and until a
    qualified Fund Manager has been designated, the Government of
    the Marshall Islands shall place the funds paid by the United
    States pursuant to Article I of the Section 177 Agreement into
    an interest-bearing escrow account. Upon designation of a
    qualified Fund Manager, all funds in the escrow account shall be
    transferred to the control of such Fund Manager for management
    pursuant to the Section 177 Agreement.
    (3) <> In the joint resolution of
    January 14, 1986 (Public Law 99-239) Congress provided that if
    the Government of the Marshall Islands determines that some
    other investment firm should act as Fund Manager in place of the
    firm first (or subsequently) selected by such Government, the
    Government of the Marshall Islands shall so notify the President
    of the United States, identifying the firm selected by such
    Government to become Fund Manager, and the President shall
    proceed to evaluate the qualifications of such identified firm.

    [[Page 2729]]
    117 STAT. 2729

    (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.

    [[Page 2730]]
    117 STAT. 2730

    (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

    [[Page 2731]]
    117 STAT. 2731

    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, $1,760,000;

    [[Page 2732]]
    117 STAT. 2732

    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

    [[Page 2733]]
    117 STAT. 2733

    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

    [[Page 2734]]
    117 STAT. 2734

    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.

    [[Page 2735]]
    117 STAT. 2735

    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.
    (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

    [[Page 2736]]
    117 STAT. 2736

    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

    [[Page 2737]]
    117 STAT. 2737

    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

    [[Page 2738]]
    117 STAT. 2738

    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

    [[Page 2739]]
    117 STAT. 2739

    the Government of the Federated States of Micronesia and the Government
    of the Republic of the Marshall Islands will not permit any other
    government or any nongovernmental party to conduct, in the Republic of
    the Marshall Islands or in the Federated States of Micronesia, any of
    the activities specified in subsection (a) of section 314 of the U.S.-
    FSM Compact and the U.S.-RMI Compact.
    (e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact on the
    State of Hawaii, Guam, the Commonwealth of the Northern Mariana Islands
    and American Samoa; Related Authorization and Continuing
    Appropriation.--
    (1) Statement of congressional intent.--In reauthorizing the
    U.S.-FSM Compact and the U.S.-RMI Compact, it is not the intent
    of Congress to cause any adverse consequences for an affected
    jurisdiction.
    (2) Definitions.--For the purposes of this title--
    (A) the term ``affected jurisdiction'' means
    American Samoa, Guam, the Commonwealth of the Northern
    Mariana Islands, or the State of Hawaii; and
    (B) the term ``qualified nonimmigrant'' means a
    person, or their children under the age of 18, admitted
    or resident pursuant to section 141 of the U.S.-RMI or
    U.S.-FSM Compact, or section 141 of the Palau Compact
    who, as of a date referenced in the most recently
    published enumeration is a resident of an affected
    jurisdiction. As used in this subsection, the term
    ``resident'' shall be a person who has a ``residence,''
    as that term is defined in section 101(a)(33) of the
    Immigration and Nationality Act, as amended.
    (3) <> Authorization and continuing
    appropriation.--There is hereby authorized and appropriated to
    the Secretary of the Interior, out of any funds in the Treasury
    not otherwise appropriated, to remain available until expended,
    for each fiscal year from 2004 through 2023, $30,000,000 for
    grants to affected jurisdictions to aid in defraying costs
    incurred by affected jurisdictions as a result of increased
    demands placed on health, educational, social, or public safety
    services or infrastructure related to such services due to the
    residence in affected jurisdictions of qualified nonimmigrants
    from the Republic of the Marshall Islands, the Federated States
    of Micronesia, or the Republic of Palau. The grants shall be--
    (A) awarded and administered by the Department of
    the Interior, Office of Insular Affairs, or any
    successor thereto, in accordance with regulations,
    policies and procedures applicable to grants so awarded
    and administered; and
    (B) used only for health, educational, social, or
    public safety services, or infrastructure related to
    such services, specifically affected by qualified
    nonimmigrants.
    (4) Enumeration.--The Secretary of the Interior shall
    conduct periodic enumerations of qualified nonimmigrants in each
    affected jurisdiction. The enumerations--
    (A) shall be conducted at such intervals as the
    Secretary of the Interior shall determine, but no less
    frequently than every five years, beginning in fiscal
    year 2003;
    (B) shall be supervised by the United States Bureau
    of the Census or such other organization as the
    Secretary of the Interior may select; and

    [[Page 2740]]
    117 STAT. 2740

    (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.

    [[Page 2741]]
    117 STAT. 2741

    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

    [[Page 2742]]
    117 STAT. 2742

    whether to give final approval to a request, the
    President shall take into consideration comments
    he may receive after Congressional review.
    (iv) Expiration.--The authority granted in
    subparagraph (A) shall expire on February 28,
    2005.
    (10) Authorization of appropriations for grants.--There are
    hereby authorized to the Secretary of the Interior for each of
    fiscal years 2004 through 2023 such sums as may be necessary for
    grants to the governments of Guam, the State of Hawaii, the
    Commonwealth of the Northern Mariana Islands, and American
    Samoa, as a result of increased demands placed on educational,
    social, or public safety services or infrastructure related to
    service due to the presence in Guam, Hawaii, the Commonwealth of
    the Northern Mariana Islands, and American Samoa of qualified
    nonimmigrants from the Federated States of Micronesia, the
    Republic of the Marshall Islands, and the Republic of Palau.

    (f) Foreign Loans.--Congress hereby reaffirms the United States
    position that the United States Government is not responsible for
    foreign loans or debt obtained by the Governments of the Federated
    States of Micronesia and the Republic of the Marshall Islands.
    (g) Sense of Congress Concerning Funding of Public Infrastructure.--
    It is the sense of Congress that not less than 30 percent of the United
    States annual grant assistance provided under section 211 of the Compact
    of Free Association, as amended, between the Government of the United
    States of America and the Government of the Federated States of
    Micronesia, and not less than 30 percent of the total amount of section
    211 funds allocated to each of the States of the Federated States of
    Micronesia, shall be invested in infrastructure improvements and
    maintenance in accordance with section 211(a)(6). It is further the
    sense of Congress that not less than 30 percent of the United States
    annual grant assistance provided under section 211 of the Compact of
    Free Association, as amended, between the Government of the United
    States of America and the Government of the Republic of the Marshall
    Islands, shall be invested in infrastructure improvements and
    maintenance in accordance with section 211(d).
    (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

    [[Page 2743]]
    117 STAT. 2743

    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

    [[Page 2744]]
    117 STAT. 2744

    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.

    [[Page 2745]]
    117 STAT. 2745

    (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)

    [[Page 2746]]
    117 STAT. 2746

    to the Joint Economic Management and Financial
    Accountability Committee provided for in section
    214 of the U.S.-RMI Compact and Article III of the
    U.S.-RMI Fiscal Procedures Agreement referred to
    in section 462(b)(4) of the U.S.-RMI Compact shall
    be United States Government officers or employees.
    (ii) Departments.--It is the sense of Congress
    that 2 of the 3 appointees should be designated
    from the Department of State and the Department of
    the Interior, and that U.S. officials of the Asian
    Development Bank shall be consulted in order to
    properly coordinate U.S. and Asian Development
    Bank financial, program, and technical assistance.
    (iii) Additional scope.--Section 214 of the
    U.S.-RMI Compact shall be construed to read as
    though the phrase, ``the implementation of
    economic policy reforms to encourage investment
    and to achieve self-sufficient tax rates,'' were
    inserted after ``with particular focus on those
    parts of the framework dealing with the sectors
    and areas identified in subsection (a) of section
    211''.
    (8) Oversight and coordination.--It is the sense of Congress
    that the Secretary of State 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,

    [[Page 2747]]
    117 STAT. 2747

    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.--

    [[Page 2748]]
    117 STAT. 2748

    (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:

    [[Page 2749]]
    117 STAT. 2749

    ``The U.S. Agency for International
    Development shall be responsible for the provision
    of emergency and disaster relief assistance in
    accordance with its statutory authorities,
    regulations and policies. The Republic of the
    Marshall Islands and the Federated States of
    Micronesia may additionally request that the
    President make an emergency or major disaster
    declaration. If the President declares an
    emergency or major disaster, the Department of
    Homeland Security (DHS), the Federal Emergency
    Management Agency (FEMA) and the U.S. Agency for
    International Development shall jointly (a) assess
    the damage caused by the emergency or disaster and
    (b) prepare a reconstruction plan including an
    estimate of the total amount of Federal resources
    that are needed for reconstruction. Pursuant to an
    interagency agreement, FEMA shall transfer funds
    from the Disaster Relief Fund in the amount of the
    estimate, together with an amount to be determined
    for administrative expenses, to the U.S. Agency
    for International Development, which shall carry
    out reconstruction activities in the Republic of
    the Marshall Islands and the Federated States of
    Micronesia in accordance with the reconstruction
    plan. For purposes of Disaster Relief Fund
    appropriations, the funding of the activities to
    be carried out pursuant to this paragraph shall be
    deemed to be necessary expenses in carrying out
    the Robert T. Stafford Disaster Relief and
    Emergency Assistance Act (42 U.S.C. 5121 et seq.).
    ``DHS may provide to the Republic of the
    Marshall Islands and the Federated States of
    Micronesia preparedness grants to the extent that
    such assistance is available to the States of the
    United States. Funding for this assistance may be
    made available from appropriations made to DHS for
    preparedness activities.''.
    (B) Treatment of additional programs.--
    (i) Consultation.--The United States
    appointees to the committees established pursuant
    to section 213 of the U.S.-FSM Compact and section
    214 of the U.S.-RMI Compact shall consult with the
    Secretary of Education regarding the objectives,
    use, and monitoring of United States financial,
    program, and technical assistance made available
    for educational purposes.
    (ii) Continuing programs.--The Government of
    the United States--
    (I) shall continue to make available
    to the Federated States of Micronesia
    and the Republic of the Marshall Islands
    for fiscal years 2004 through 2023, the
    services to individuals eligible for
    such services under the Individuals with
    Disabilities Education Act (20 U.S.C.
    1400 et seq.) to the extent that such
    services continue to be available to
    individuals in the United States; and
    (II) shall continue to make
    available to eligible institutions in
    the Federated States of Micronesia and
    the Republic of the Marshall Islands,
    and to students enrolled in such
    institutions, and in

    [[Page 2750]]
    117 STAT. 2750

    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,

    [[Page 2751]]
    117 STAT. 2751

    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

    [[Page 2752]]
    117 STAT. 2752

    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.

    [[Page 2753]]
    117 STAT. 2753

    (j) Technical Assistance.--Technical assistance may be provided
    pursuant to section 224 of the U.S.-FSM Compact or the U.S.-RMI Compact
    by Federal agencies and institutions of the Government of the United
    States to the extent such assistance may be provided to States,
    territories, or units of local government. Such assistance by the Forest
    Service, the Natural Resources Conservation Service, the Fish and
    Wildlife Service, the National Marine Fisheries Service, the United
    States Coast Guard, and the Advisory Council on Historic Preservation,
    the Department of the Interior, and other agencies providing assistance
    under the National Historic Preservation Act (80 Stat. 915; 16 U.S.C.
    470-470t), shall be on a nonreimbursable basis. During the period the
    U.S.-FSM Compact and the U.S.-RMI Compact are in effect, the grant
    programs under the National Historic Preservation Act shall continue to
    apply to the Federated States of Micronesia and the Republic of the
    Marshall Islands in the same manner and to the same extent as prior to
    the approval of the Compact. Any funds provided pursuant to sections
    102(a), 103(a), 103(b), 103(f), 103(g), 103(h), 103(j), 105(c), 105(g),
    105(h), 105(i), 105(j), 105(k), 105(l), and 105(m) of this joint
    resolution shall be in addition to and not charged against any amounts
    to be paid to either the Federated States of Micronesia or the Republic
    of the Marshall Islands pursuant to the U.S.-FSM Compact, the U.S.-RMI
    Compact, or their related subsidiary agreements.
    (k) Prior Service Benefits Program.--Notwithstanding any other
    provision of law, persons who on January 1, 1985, were eligible to
    receive payment under the Prior Service Benefits Program established
    within the Social Security System of the Trust Territory of the Pacific
    Islands because of their services performed for the United States Navy
    or the Government of the Trust Territory of the Pacific Islands prior to
    July 1, 1968, shall continue to receive such payments on and after the
    effective date of the Compact.
    (l) Indefinite Land Use Payments.--There are authorized to be
    appropriated such sums as may be necessary to complete repayment by the
    United States of any debts owed for the use of various lands in the
    Federated States of Micronesia and the Marshall Islands prior to January
    1, 1985.
    (m) Communicable Disease Control Program.--There are authorized to
    be appropriated for grants to the Government of the Federated States of
    Micronesia, the Government of the Republic of the Marshall Islands, and
    the governments of the affected jurisdictions, such sums as may be
    necessary for purposes of establishing or continuing programs for the
    control and prevention of communicable diseases, including (but not
    limited to) cholera, tuberculosis, and Hansen's Disease. The Secretary
    of the Interior shall assist the Government of the Federated States of
    Micronesia, the Government of the Republic of the Marshall Islands and
    the governments of the affected jurisdictions in designing and
    implementing such a program.
    (n) User Fees.--Any person in the Federated States of Micronesia or
    the Republic of the Marshall Islands shall be liable for user fees, if
    any, for services provided in the Federated States of Micronesia or the
    Republic of the Marshall Islands by the Government of the United States
    to the same extent as any person in the United States would be liable
    for fees, if any, for such services in the United States.

    [[Page 2754]]
    117 STAT. 2754

    (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.

    [[Page 2755]]
    117 STAT. 2755

    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

    [[Page 2756]]
    117 STAT. 2756

    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

    [[Page 2757]]
    117 STAT. 2757

    of sections 221(a) of the U.S.-FSM Compact and the U.S.-RMI Compact, to
    remain available until expended.

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

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

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

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

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

    PREAMBLE

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

    Affirming that their Governments and their relationship as
    Governments are founded upon respect for human rights and fundamental
    freedoms for all, and that the people of the Federated States of
    Micronesia have the right to enjoy self-government; and
    Affirming the common interests of the United States of America and
    the Federated States of 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

    [[Page 2758]]
    117 STAT. 2758

    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.

    [[Page 2759]]
    117 STAT. 2759

    (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

    [[Page 2760]]
    117 STAT. 2760

    At the request of the Government of the Federated States of
    Micronesia and subject to the consent of the receiving state, the
    Government of the United States shall extend consular assistance on the
    same basis as for citizens of the United States to citizens of the
    Federated States of Micronesia for travel outside the Federated States
    of Micronesia, the United States and its territories and possessions.
    Section 127
    Except as otherwise provided in this Compact, as amended, or its
    related agreements, all obligations, responsibilities, rights and
    benefits of the Government of the United States as Administering
    Authority which resulted from the application pursuant to the
    Trusteeship Agreement of any treaty or other international agreement to
    the Trust Territory of the Pacific Islands on November 2, 1986, are, as
    of that date, no longer assumed and enjoyed by the Government of the
    United States.

    Article III

    Communications

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

    Article IV

    Immigration

    Section 141
    (a) In furtherance of the special and unique relationship that
    exists between the United States and the Federated States of Micronesia,
    under the Compact, as amended, any person in the following categories
    may be admitted to, lawfully engage in occupations, and establish
    residence as a nonimmigrant in the United States and its territories and
    possessions (the ``United States'') without regard to paragraph (5) or
    (7)(B)(i)(II) of section 212(a) of the Immigration and Nationality Act,
    as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II):
    (1) a person who, on November 2, 1986, was a citizen of the
    Trust Territory of the Pacific Islands, as defined in Title 53
    of the Trust Territory Code in force on January 1,

    [[Page 2761]]
    117 STAT. 2761

    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

    [[Page 2762]]
    117 STAT. 2762

    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

    [[Page 2763]]
    117 STAT. 2763

    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

    [[Page 2764]]
    117 STAT. 2764

    immigration-related procedures no less favorable than those adopted by
    the Government of the United States with respect to citizens of the
    Federated States of Micronesia seeking employment in the United States.
    Section 143
    Any person who relinquishes, or otherwise loses, his United States
    nationality or citizenship, or his Federated States of Micronesia
    citizenship, shall be ineligible to receive the privileges set forth in
    sections 141 and 142. Any such person may apply for admission to the
    United States or the Federated States of Micronesia, as the case may be,
    in accordance with any other applicable laws of the United States or the
    Federated States of Micronesia relating to immigration of aliens from
    other countries. The laws of the Federated States of Micronesia or the
    United States, as the case may be, shall dictate the terms and
    conditions of any such person's stay.

    Article V

    Representation

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

    [[Page 2765]]
    117 STAT. 2765

    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

    [[Page 2766]]
    117 STAT. 2766

    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.

    [[Page 2767]]
    117 STAT. 2767

    (d) The United States District Court for the District of
    Hawaii and the United States District Court for the District of
    Columbia shall have jurisdiction to issue all necessary
    processes, and the Government of the United States agrees to
    submit itself to the jurisdiction of the court; decisions of the
    United States District Court shall be reviewable in the United
    States Court of Appeals for the Ninth Circuit or the United
    States Court of Appeals for the District of Columbia,
    respectively, or in the United States Supreme Court as provided
    by the laws of the United States.
    (e) The judicial remedy provided for in this section shall
    be the exclusive remedy for the judicial review or enforcement
    of the obligations of the Government of the United States under
    this Article and actions brought under section 172(b) which
    relate to the activities of the Government of the United States
    and its officers and employees governed by section 161.
    (f) In actions pursuant to this section, the Government of
    the Federated States of Micronesia shall be treated as if it
    were a United States citizen.

    Section 163
    (a) For the purpose of gathering data necessary to study the
    environmental effects of activities of the Government of the United
    States subject to the requirements of this Article, the Government of
    the Federated States of Micronesia shall be granted access to facilities
    operated by the Government of the United States in the Federated States
    of Micronesia, to the extent necessary for this purpose, except to the
    extent such access would unreasonably interfere with the exercise of the
    authority and responsibility of the Government of the United States
    under Title Three.
    (b) The Government of the United States, in turn, shall be granted
    access to the Federated States of Micronesia for the purpose of
    gathering data necessary to discharge its obligations under this
    Article, except to the extent such access would unreasonably interfere
    with the exercise of the authority and responsibility of the Government
    of the Federated States of Micronesia under Title One, and to the extent
    necessary for this purpose shall be granted access to documents and
    other information to the same extent similar access is provided the
    Government of the Federated States of Micronesia under the Freedom of
    Information Act, 5 U.S.C. 552.
    (c) The Government of the Federated States of Micronesia shall not
    impede efforts by the Government of the United States to comply with
    applicable standards and procedures.

    Article VII

    General Legal Provisions

    Section 171
    Except as provided in this Compact, as amended, or its related
    agreements, the application of the laws of the United States to the
    Trust Territory of the Pacific Islands by virtue of the Trusteeship
    Agreement ceased with respect to the Federated States of Micronesia on
    November 3, 1986, the date the Compact went into effect.
    Section 172

    [[Page 2768]]
    117 STAT. 2768

    (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

    [[Page 2769]]
    117 STAT. 2769

    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:

    [[Page 2770]]
    117 STAT. 2770

    ``(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:

    [[Page 2771]]
    117 STAT. 2771

    (1) the administrative settlement of claims referred to in
    section 178(a), including designation of local agents in each
    State of the Federated States of Micronesia; such agents to be
    empowered to accept, investigate and settle such claims, in a
    timely manner, as provided in such separate agreements; and
    (2) arbitration, referred to in section 178(b), in a timely
    manner, at a site convenient to the claimant, in the event a
    claim is not otherwise settled pursuant to section 178(a).

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

    TITLE TWO

    ECONOMIC RELATIONS

    Article I

    Grant Assistance

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

    [[Page 2772]]
    117 STAT. 2772

    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

    [[Page 2773]]
    117 STAT. 2773

    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

    [[Page 2774]]
    117 STAT. 2774

    performance indicators that are necessary to ensure effective use of
    United States assistance and reasonable progress toward achieving
    program objectives. The Government of the United States may seek
    appropriate remedies for noncompliance with the terms and conditions
    attached to the assistance, or for failure to comply with section 234,
    including withholding assistance.

    (b) The Government of the United States shall, for each fiscal year
    of the twenty years during which assistance is to be provided on a
    sector grant basis under section 211, grant the Government of the
    Federated States of Micronesia an amount equal to the lesser of (i) one
    half of the reasonable, properly documented cost incurred during each
    fiscal year to conduct the annual audit required under Article VIII (2)
    of the Fiscal Procedures Agreement or (ii) $500,000. Such amount will
    not be adjusted for inflation under section 217 or otherwise.
    Section 213 - Joint Economic
    Management <> Committee

    The Governments of the United States and the Federated States of
    Micronesia shall establish a Joint Economic Management Committee,
    composed of a U.S. chair, two other members from the Government of the
    United States and two members from the Government of the Federated
    States of Micronesia. The Joint Economic Management Committee shall meet
    at least once each year to review the audits and reports required under
    this Title, evaluate the progress made by the Federated States of
    Micronesia in meeting the objectives identified in its plan described in
    subsection (c) of section 211, with particular focus on those parts of
    the plan dealing with the sectors identified in subsection (a) of
    section 211, identify problems encountered, and recommend ways to
    increase the effectiveness of U.S. assistance made available under this
    Title. The establishment and operations of the Joint Economic Management
    Committee shall be governed by the Fiscal Procedures Agreement.
    Section 214 - Annual Report
    The Government of the Federated States of Micronesia shall report
    annually to the President of the United States on the use of United
    States sector grant assistance and other assistance and progress in
    meeting mutually agreed program and economic goals. The Joint Economic
    Management Committee shall review and comment on the report and make
    appropriate recommendations based thereon.
    Section 215 - Trust Fund
    (a) The United States shall contribute annually for twenty years
    from the effective date of this Compact, as amended, in the amounts set
    forth in section 216 into a Trust Fund established in accordance with
    the Agreement Between the Government of the United States of America and
    the Government of the Federated States of Micronesia Implementing
    Section 215 and Section 216 of the Compact, as Amended, Regarding a
    Trust Fund (``Trust Fund Agreement''). Upon termination of the annual
    financial assistance under section 211, the proceeds of the fund shall
    thereafter be used for the purposes described in section 211 or as
    otherwise mutually agreed.
    (b) The United States contribution into the Trust Fund described in
    subsection(a) of this section is conditioned on the Government of the
    Federated States of Micronesia contributing to the Trust Fund at least
    $30 million, prior to September 30, 2004. Any funds received by the
    Federated States of Micronesia

    [[Page 2775]]
    117 STAT. 2775

    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.

    [[Page 2776]]
    117 STAT. 2776

    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

    [[Page 2777]]
    117 STAT. 2777

    set forth the extent to which services and programs shall be provided to
    the Federated States of Micronesia.
    (d) Except as provided elsewhere in this Compact, as amended, under
    any separate agreement entered into under this Compact, as amended, or
    otherwise under U.S. law, all Federal domestic programs extended to or
    operating in the Federated States of Micronesia shall be subject to all
    applicable criteria, standards, reporting requirements, auditing
    procedures, and other rules and regulations applicable to such programs
    and services when operating in the United States.
    (e) The Government of the United States shall make available to the
    Federated States of Micronesia alternate energy development projects,
    studies, and conservation measures to the extent provided for the Freely
    Associated States in the laws of the United States.
    Section 222
    The Government of the United States and the Government of the
    Federated States of Micronesia may agree from time to time to extend to
    the Federated States of Micronesia additional United States grant
    assistance, services and programs, as provided under the laws of the
    United States. <> Unless inconsistent with such
    laws, or otherwise specifically precluded by the Government of the
    United States at the time such additional grant assistance, services, or
    programs are extended, the Federal Programs and Services Agreement
    referred to section 231 shall apply to any such assistance, services or
    programs.

    Section 223
    The Government of the Federated States of Micronesia shall make
    available to the Government of the United States at no cost such land as
    may be necessary for the operations of the services and programs
    provided pursuant to this Article, and such facilities as are provided
    by the Government of the Federated States of Micronesia at no cost to
    the Government of the United States as of the effective date of this
    Compact, as amended, or as may be mutually agreed thereafter.
    Section 224
    The Government of the Federated States of Micronesia may request,
    from time to time, technical assistance from the Federal agencies and
    institutions of the Government of the United States, which are
    authorized to grant such technical assistance in accordance with its
    laws. If technical assistance is granted pursuant to such a request, the
    Government of the United States shall provide the technical assistance
    in a manner which gives priority consideration to the Federated States
    of Micronesia over other recipients not a part of the United States, its
    territories or possessions, and equivalent consideration to the
    Federated States of Micronesia with respect to other states in Free
    Association with the United States. Such assistance shall be made
    available on a reimbursable or non-reimbursable basis to the extent
    provided by United States law.

    Article III

    Administrative Provisions

    Section 231

    [[Page 2778]]
    117 STAT. 2778

    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.

    [[Page 2779]]
    117 STAT. 2779

    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

    [[Page 2780]]
    117 STAT. 2780

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

    Article V

    Finance and Taxation

    Section 251
    The currency of the United States is the official circulating legal
    tender of the Federated States of Micronesia. Should the Government of
    the Federated States of Micronesia act to institute another currency,
    the terms of an appropriate currency transitional period shall be as
    agreed with the Government of the United States.
    Section 252
    The Government of the Federated States of Micronesia may, with
    respect to United States persons, tax income derived from sources within
    its respective jurisdiction, property situated therein, including
    transfers of such property by gift or at death, and products consumed
    therein, in such manner as the Government of the Federated States of
    Micronesia deems appropriate. The determination of the source of any
    income, or the situs of any property, shall for purposes of this Compact
    be made according to the United States Internal Revenue Code.
    Section 253
    A citizen of the Federated States of Micronesia, domiciled therein,
    shall be exempt from estate, gift, and generation-skipping transfer
    taxes imposed by the Government of the United States, provided that such
    citizen of the Federated States of Micronesia is neither a citizen nor a
    resident of the United States.
    Section 254
    (a) In determining any income tax imposed by the Government of the
    Federated States of Micronesia, the Government of the Federated States
    of Micronesia shall have authority to impose tax upon income derived by
    a resident of the Federated States of Micronesia from sources without
    the Federated States of Micronesia, in the same manner and to the same
    extent as the Government of the Federated States of Micronesia imposes
    tax upon income derived from within its own jurisdiction. If the
    Government of the Federated States of Micronesia exercises such
    authority as provided in this subsection, any individual resident of the
    Federated States of Micronesia who is subject to tax by the Government

    [[Page 2781]]
    117 STAT. 2781

    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.

    [[Page 2782]]
    117 STAT. 2782

    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

    [[Page 2783]]
    117 STAT. 2783

    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.

    [[Page 2784]]
    117 STAT. 2784

    Article III

    Defense Treaties and International Security Agreements

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

    Article IV

    Service in Armed Forces of the United States

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

    Article V

    General Provisions

    Section 351
    (a) The Government of the United States and the Government of the
    Federated States of Micronesia shall continue to maintain

    [[Page 2785]]
    117 STAT. 2785

    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

    [[Page 2786]]
    117 STAT. 2786

    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.

    [[Page 2787]]
    117 STAT. 2787

    (b) Approval by the Government of the United States in
    accordance with its constitutional processes.

    Article II

    Conference and Dispute Resolution

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

    [[Page 2788]]
    117 STAT. 2788

    (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

    [[Page 2789]]
    117 STAT. 2789

    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.

    [[Page 2790]]
    117 STAT. 2790

    (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.

    [[Page 2791]]
    117 STAT. 2791

    (d) In view of the special relationship of the United States and the
    Federated States of Micronesia, as reflected in subsections 354(b) and
    (c) of this Compact, as amended, and the separate agreement regarding
    mutual security, and the Trust Fund Agreement, if termination occurs
    pursuant to section 443 following the twentieth anniversary of the
    effective date of this Compact, as amended, the Federated States of
    Micronesia shall continue to be eligible to receive proceeds from the
    Trust Fund described in section 215 of this Compact, as amended, in the
    manner described in those provisions and the Trust Fund Agreement.
    Section 454
    Notwithstanding any other provision of this Compact, as amended:
    (a) The Government of the United States reaffirms its
    continuing interest in promoting the economic advancement and
    budgetary self-reliance of the people of the Federated States of
    Micronesia.
    (b) The separate agreements referred to in Article II of
    Title Three shall remain in effect in accordance with their
    terms.

    Article VI

    Definition of Terms

    Section 461
    For the purpose of this Compact, as amended, only, and without
    prejudice to the views of the Government of the United States or the
    Government of the Federated States of Micronesia as to the nature and
    extent of the jurisdiction of either of them under international law,
    the following terms shall have the following meanings:
    (a) ``Trust Territory of the Pacific Islands'' means the
    area established in the Trusteeship Agreement consisting of the
    former administrative districts of Kosrae, Yap, Ponape, the
    Marshall Islands and Truk as described in Title One, Trust
    Territory Code, section 1, in force on January 1, 1979. This
    term does not include the area of Palau or the Northern Mariana
    Islands.
    (b) ``Trusteeship Agreement'' means the agreement setting
    forth the terms of trusteeship for the Trust Territory of the
    Pacific Islands, approved by the Security Council of the United
    Nations April 2, 1947, and by the United States July 18, 1947,
    entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665,
    8 U.N.T.S. 189.
    (c) ``The Federated States of Micronesia'' and ``the
    Republic of the Marshall Islands'' are used in a geographic
    sense and include the land and water areas to the outer limits
    of the territorial sea and the air space above such areas as now
    or hereafter recognized by the Government of the United States.
    (d) ``Compact'' means the Compact of Free Association
    Between the United States and the Federated States of Micronesia
    and the Marshall Islands, that was approved by the United States
    Congress in section 201 of Public Law 99-239 (Jan. 14, 1986) and
    went into effect with respect to the Federated States of
    Micronesia on November 3, 1986.

    [[Page 2792]]
    117 STAT. 2792

    (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.

    [[Page 2793]]
    117 STAT. 2793

    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

    [[Page 2794]]
    117 STAT. 2794

    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.

    [[Page 2795]]
    117 STAT. 2795

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

    Ambassador Larry M. DingerHis Excellency Jesse B. Marehalau
    U.S. Ambassador to the    Ambassador Extraordinary and
    Federated States of MicronPlenipotentiary

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

    PREAMBLE

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

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

    [[Page 2796]]
    117 STAT. 2796

    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

    [[Page 2797]]
    117 STAT. 2797

    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

    [[Page 2798]]
    117 STAT. 2798

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

    Article IV

    Immigration

    Section 141
    (a) In furtherance of the special and unique relationship that
    exists between the United States and the Republic of the Marshall
    Islands, under the Compact, as amended, any person in the following
    categories may be admitted to lawfully engage in occupations, and
    establish residence as a nonimmigrant in the United States and its
    territories and possessions (the ``United States'') without regard to
    paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the Immigration and
    Nationality Act, as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II):
    (1) a person who, on October 21, 1986, was a citizen of the
    Trust Territory of the Pacific Islands, as defined in Title 53
    of the Trust Territory Code in force on January 1, 1979, and has
    become and remains a citizen of the Republic of the Marshall
    Islands;
    (2) a person who acquires the citizenship of the Republic of
    the Marshall Islands at birth, on or after the effective date of
    the Constitution of the Republic of the Marshall Islands;
    (3) an immediate relative of a person referred to in
    paragraphs (1) or (2) of this section, provided that such
    immediate relative is a naturalized citizen of the Republic of
    the Marshall Islands who has been an actual resident there for
    not less than five years after attaining such naturalization and
    who holds a certificate of actual residence, and further
    provided, that, in the case of a spouse, such spouse has been
    married to the person referred to in paragraph (1) or (2) of
    this section for at least five years, and further provided, that
    the Government of the United States is satisfied that such
    naturalized citizen meets the requirement of subsection (b) of
    section 104 of Public Law 99-239 as it was in effect on the day
    prior to the effective date of this Compact, as amended;
    (4) a naturalized citizen of the Republic of the Marshall
    Islands who was an actual resident there for not less than five
    years after attaining such naturalization and who satisfied

    [[Page 2799]]
    117 STAT. 2799

    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.

    [[Page 2800]]
    117 STAT. 2800

    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.

    [[Page 2801]]
    117 STAT. 2801

    (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.

    [[Page 2802]]
    117 STAT. 2802

    Article V

    Representation

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

    Article VI

    Environmental Protection

    Section 161
    The Governments of the United States and the Republic of the
    Marshall Islands declare that it is their policy to promote efforts to
    prevent or eliminate damage to the environment and biosphere and to
    enrich understanding of the natural resources of the Republic of the
    Marshall Islands. In order to carry out this policy, the Government of
    the United States and the Government of the Republic of the Marshall
    Islands agree to the following mutual and reciprocal undertakings:
    (a) The Government of the United States:
    (1) shall, for its activities controlled by the U.S.
    Army at Kwajalein Atoll and in the Mid-Atoll Corridor
    and for U.S. Army Kwajalein Atoll activities in the
    Republic of the Marshall Islands, continue to apply the
    Environmental

    [[Page 2803]]
    117 STAT. 2803

    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.

    [[Page 2804]]
    117 STAT. 2804

    (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

    [[Page 2805]]
    117 STAT. 2805

    States Court of Appeals for the Ninth Circuit or the United
    States Court of Appeals for the District of Columbia,
    respectively, or in the United States Supreme Court as provided
    by the laws of the United States.
    (e) The judicial remedy provided for in this section shall
    be the exclusive remedy for the judicial review or enforcement
    of the obligations of the Government of the United States under
    this Article and actions brought under section 172(b), which
    relate to the activities of the Government of the United States
    and its officers and employees governed by section 161.
    (f) In actions pursuant to this section, the Government of
    the Republic of the Marshall Islands shall be treated as if it
    were a United States citizen.

    Section 163
    (a) For the purpose of gathering data necessary to study the
    environmental effects of activities of the Government of the United
    States subject to the requirements of this Article, the Government of
    the Republic of the Marshall Islands shall be granted access to
    facilities operated by the Government of the United States in the
    Republic of the Marshall Islands, to the extent necessary for this
    purpose, except to the extent such access would unreasonably interfere
    with the exercise of the authority and responsibility of the Government
    of the United States under Title Three.
    (b) The Government of the United States, in turn, shall be granted
    access to the Republic of the Marshall Islands for the purpose of
    gathering data necessary to discharge its obligations under this
    Article, except to the extent such access would unreasonably interfere
    with the exercise of the authority and responsibility of the Government
    of the Republic of the Marshall Islands under Title One, and to the
    extent necessary for this purpose shall be granted access to documents
    and other information to the same extent similar access is provided the
    Government of the Republic of the Marshall Islands under the Freedom of
    Information Act, 5 U.S.C. 552.
    (c) The Government of the Republic of the Marshall Islands shall not
    impede efforts by the Government of the United States to comply with
    applicable standards and procedures.

    Article VII

    General Legal Provisions

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

    [[Page 2806]]
    117 STAT. 2806

    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,

    [[Page 2807]]
    117 STAT. 2807

    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.

    [[Page 2808]]
    117 STAT. 2808

    ``(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).

    [[Page 2809]]
    117 STAT. 2809

    (d) The provisions of section 174(d) shall not apply to claims
    covered by this section.
    (e) Except as otherwise explicitly provided by law of the United
    States, this Compact, as amended, or its related agreements, neither the
    Government of the United States, its instrumentalities, nor any person
    acting on behalf of the Government of the United States, shall be named
    a party in any action based on, or arising out of, the activity or
    activities of a recipient of any grant or other assistance provided by
    the Government of the United States (or the activity or activities of
    the recipient's agency or any other person or entity acting on behalf of
    the recipient).
    Section 179
    (a) The courts of the Republic of the Marshall Islands shall not
    exercise criminal jurisdiction over the Government of the United States,
    or its instrumentalities.
    (b) The courts of the Republic of the Marshall Islands shall not
    exercise criminal jurisdiction over any person if the Government of the
    United States provides notification to the Government of the Republic of
    the Marshall Islands that such person was acting on behalf of the
    Government of the United States, for actions taken in furtherance of
    section 221 or 224 of this amended Compact, or any other provision of
    law authorizing financial, program, or service assistance to the
    Republic of the Marshall Islands.

    TITLE TWO

    ECONOMIC RELATIONS

    Article I

    Grant Assistance

    Section 211 - Annual Grant Assistance
    (a) In order to assist the Government of the Republic of the
    Marshall Islands in its efforts to promote the economic advancement and
    budgetary self-reliance of its people, and in recognition of the special
    relationship that exists between the Republic of the Marshall Islands
    and the United States, the Government of the United States shall provide
    assistance on a grant basis for a period of twenty years in the amounts
    set forth in section 217, commencing on the effective date of this
    Compact, as amended. Such grants shall be used for assistance in
    education, health care, the environment, public sector capacity
    building, and private sector development, or for other areas as mutually
    agreed, with priorities in the education and health care sectors.
    Consistent with the medium-term budget and investment framework
    described in subsection (f) of this section, the proposed division of
    this amount among the identified areas shall require the concurrence of
    both the Government of the United States and the Government of the
    Republic of the Marshall Islands, through the Joint Economic Management
    and Financial Accountability Committee described in section 214. The
    Government of the United States shall disburse the grant assistance and
    monitor the use of such grant assistance in accordance with the
    provisions of this Article and an Agreement Concerning Procedures for
    the Implementation of United States Economic Assistance Provided in the
    Compact, as Amended, of Free Association Between the Government of the
    United States of America and the Government of the Republic of the
    Marshall

    [[Page 2810]]
    117 STAT. 2810

    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

    [[Page 2811]]
    117 STAT. 2811

    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

    [[Page 2812]]
    117 STAT. 2812

    Amended, which shall come into effect simultaneously with the amendments
    to this Compact.
    (d) Public Infrastructure.--
    (1) Unless otherwise agreed, not less than 30 percent and
    not more than 50 percent of U.S. annual grant assistance
    provided under this section shall be made available in
    accordance with a list of specific projects included in the
    infrastructure improvement and maintenance plan prepared by the
    Government of the Republic of the Marshall Islands as part of
    the strategic framework described in subsection (f) of this
    section.
    (2) Infrastructure maintenance fund.--Five percent of the
    annual public infrastructure grant made available under
    paragraph (1) of this subsection shall be set aside, with an
    equal contribution from the Government of the Republic of the
    Marshall Islands, as a contribution to an Infrastructure
    Maintenance Fund. Administration of the Infrastructure
    Maintenance Fund shall be governed by the Fiscal Procedures
    Agreement.

    (e) Disaster Assistance Emergency Fund.--Of the total grant
    assistance made available under subsection (a) of this section, an
    amount of two hundred thousand dollars ($200,000) shall be provided
    annually, with an equal contribution from the Government of the Republic
    of the Marshall Islands, as a contribution to a Disaster Assistance
    Emergency Fund (``DAEF''). Any funds from the DAEF may be used only for
    assistance and rehabilitation resulting from disasters and emergencies.
    The funds will be accessed upon declaration of a State of Emergency by
    the Government of the Republic of the Marshall Islands, with the
    concurrence of the United States Chief of Mission to the Republic of the
    Marshall Islands. Administration of the DAEF shall be governed by the
    Fiscal Procedures Agreement.
    (f) Budget and Investment Framework.--The Government of the Republic
    of the Marshall Islands shall prepare and maintain an official medium-
    term budget and investment framework. The framework shall be strategic
    in nature, shall be continuously reviewed and updated through the annual
    budget process, and shall make projections on a multi-year rolling
    basis. Each of the sectors and areas named in subsections (a), (b), and
    (d) of this section, or other sectors and areas as mutually agreed,
    shall be accorded specific treatment in the framework. Those portions of
    the framework that contemplate the use of United States grant funds
    shall require the concurrence of both the Government of the United
    States and the Government of the Republic of the Marshall Islands.
    Section 212 - Kwajalein Impact and Use
    The Government of the United States shall provide to the Government
    of the Republic of the Marshall Islands in conjunction with section
    321(a) of the Compact, as amended, and the agreement between the
    Government of the United States and the Government of the Republic of
    the Marshall Islands regarding military use and operating rights, a
    payment in fiscal year 2004 of $15,000,000, with no adjustment for
    inflation. In fiscal year 2005 and through fiscal year 2013, the annual
    payment will be the fiscal year 2004 amount ($15,000,000) with an
    inflation adjustment as provided under section 218. In fiscal year 2014,
    the annual payment will be $18,000,000 (with no adjustment for
    inflation) or the fiscal year

    [[Page 2813]]
    117 STAT. 2813

    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

    [[Page 2814]]
    117 STAT. 2814

    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

    [[Page 2815]]
    117 STAT. 2815

    2008...............................       33.2              .5               9               15.0         57.7
    2009...............................       32.7              .5              9.5              15.0         57.7
    2010...............................       32.2              .5               10              15.0         57.7
    2011...............................       31.7              .5              10.5             15.0         57.7
    2012...............................       31.2              .5               11              15.0         57.7
    2013...............................       30.7              .5              11.5             15.0         57.7
    2014...............................       32.2              .5               12              18.0         62.7
    2015...............................       31.7              .5              12.5             18.0         62.7
    2016...............................       31.2              .5               13              18.0         62.7
    2017...............................       30.7              .5              13.5             18.0         62.7
    2018...............................       30.2              .5               14              18.0         62.7
    2019...............................       29.7              .5              14.5             18.0         62.7
    2020...............................       29.2              .5               15              18.0         62.7
    2021...............................       28.7              .5              15.5             18.0         62.7
    2022...............................       28.2              .5               16              18.0         62.7
    2023...............................       27.7              .5              16.5             18.0         62.7
    ----------------------------------------------------------------------------------------------------------------

    Section 218 - Inflation Adjustment
    Except as otherwise provided, the amounts stated in this Title shall
    be adjusted for each United States Fiscal Year by the percent that
    equals two-thirds of the percent change in the United States Gross
    Domestic Product Implicit Price Deflator, or 5 percent, whichever is
    less in any one year, using the beginning of Fiscal Year 2004 as a base.
    Section 219 - Carry-Over of Unused Funds
    If in any year the funds made available by the Government of the
    United States for that year pursuant to this Article are not completely
    obligated by the Government of the Republic of the Marshall Islands, the
    unobligated balances shall remain available in addition to the funds to
    be provided in subsequent years.

    Article II

    Services and Program Assistance

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

    Upon the effective date of this Compact, as amended, the United States
    Departments and Agencies named or having responsibility to provide these
    services and related programs shall have the authority to implement the
    relevant provisions of the Federal Programs and Services Agreement
    referred to in section 231.
    (b) Programs.--
    (1) Other than the services and programs covered by
    subsection (a) of this section, and to the extent authorized by
    the Congress of the United States, the Government of the

    [[Page 2816]]
    117 STAT. 2816

    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

    [[Page 2817]]
    117 STAT. 2817

    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,

    [[Page 2818]]
    117 STAT. 2818

    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

    [[Page 2819]]
    117 STAT. 2819

    articles for purposes of title V of the Trade Act of
    1974 (19 U.S.C. 2461, et seq.) on April 1, 1984.
    (d) If the cost or value of materials produced in the
    customs territory of the United States is included with respect
    to an eligible article which is a product of the Republic of the
    Marshall Islands, an amount not to exceed 15 percent of the
    appraised value of the article at the time it is entered that is
    attributable to such United States cost or value may be applied
    for duty assessment purposes toward determining the percentage
    referred to in section 503(a)(2) of title V of the Trade Act of
    1974.

    Section 243
    Articles imported from the Republic of the Marshall Islands which
    are not exempt from duty under subsections (a), (b), (c), and (d) of
    section 242 shall be subject to the rates of duty set forth in column
    numbered 1-general of the Harmonized Tariff Schedule of the United
    States (HTSUS).
    Section 244
    (a) All products of the United States imported into the Republic of
    the Marshall Islands shall receive treatment no less favorable than that
    accorded like products of any foreign country with respect to customs
    duties or charges of a similar nature and with respect to laws and
    regulations relating to importation, exportation, taxation, sale,
    distribution, storage or use.
    (b) The provisions of subsection (a) shall not apply to advantages
    accorded by the Republic of the Marshall Islands by virtue of their full
    membership in the Pacific Island Countries Trade Agreement (PICTA), done
    on August 18, 2001, to those governments listed in Article 26 of PICTA,
    as of the date the Compact, as amended, is signed.
    (c) Prior to entering into consultations on, or concluding, a free
    trade agreement with governments not listed in Article 26 of PICTA, the
    Republic of the Marshall Islands shall consult with the United States
    regarding whether or how subsection (a) of section 244 shall be applied.

    Article V

    Finance and Taxation

    Section 251
    The currency of the United States is the official circulating legal
    tender of the Republic of the Marshall Islands. Should the Government of
    the Republic of the Marshall Islands act to institute another currency,
    the terms of an appropriate currency transitional period shall be as
    agreed with the Government of the United States.
    Section 252
    The Government of the Republic of the Marshall Islands may, with
    respect to United States persons, tax income derived from sources within
    its respective jurisdiction, property situated therein, including
    transfers of such property by gift or at death, and products consumed
    therein, in such manner as the Government of the Republic of the
    Marshall Islands deems appropriate. The determination of the source of
    any income, or the situs of any property, shall for purposes of this
    Compact, as amended, be made according to the United States Internal
    Revenue Code.

    [[Page 2820]]
    117 STAT. 2820

    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:

    [[Page 2821]]
    117 STAT. 2821

    (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.

    [[Page 2822]]
    117 STAT. 2822

    (c) Radioactive, toxic chemical, or biological materials not
    intended for weapons use shall not be affected by section 314(b).
    (d) No material or substance referred to in this section shall be
    stored in the Republic of the Marshall Islands except in an amount and
    manner which would not be hazardous to public health or safety. In
    determining what shall be an amount or manner which would be hazardous
    to public health or safety under this section, the Government of the
    United States shall comply with any applicable mutual agreement,
    international guidelines accepted by the Government of the United
    States, and the laws of the United States and their implementing
    regulations.
    (e) Any exercise of the exemption authority set forth in section
    161(e) shall have no effect on the obligations of the Government of the
    United States under this section or on the application of this
    subsection.
    (f) <> The provisions of this section shall
    apply in the areas in which the Government of the Republic of the
    Marshall Islands exercises jurisdiction over the living resources of the
    seabed, subsoil or water column adjacent to its coasts.

    Section 315
    The Government of the United States may invite members of the armed
    forces of other countries to use military areas and facilities in the
    Republic of the Marshall Islands, in conjunction with and under the
    control of United States Armed Forces. Use by units of the armed forces
    of other countries of such military areas and facilities, other than for
    transit and overflight purposes, shall be subject to consultation with
    and, in the case of major units, approval of the Government of the
    Republic of the Marshall Islands.
    Section 316
    The authority and responsibility of the Government of the United
    States under this Title may not be transferred or otherwise assigned.

    Article II

    Defense Facilities and Operating Rights

    Section 321
    (a) Specific arrangements for the establishment and use by the
    Government of the United States of military areas and facilities in the
    Republic of the Marshall Islands are set forth in separate agreements,
    which shall remain in effect in accordance with the terms of such
    agreements.
    (b) If, in the exercise of its authority and responsibility under
    this Title, the Government of the United States requires the use of
    areas within the Republic of the Marshall Islands in addition to those
    for which specific arrangements are concluded pursuant to section
    321(a), it may request the Government of the Republic of the Marshall
    Islands to satisfy those requirements through leases or other
    arrangements. The Government of the Republic of the Marshall Islands
    shall sympathetically consider any such request and shall establish
    suitable procedures to discuss it with and provide a prompt response to
    the Government of the United States.
    (c) The Government of the United States recognizes and respects the
    scarcity and special importance of land in the Republic of the Marshall
    Islands. In making any requests pursuant to section

    [[Page 2823]]
    117 STAT. 2823

    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

    [[Page 2824]]
    117 STAT. 2824

    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.

    [[Page 2825]]
    117 STAT. 2825

    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

    [[Page 2826]]
    117 STAT. 2826

    Government, to be incompatible with its authority and responsibility for
    security and defense matters in or relating to the Republic of the
    Marshall Islands or the Federated States of Micronesia.

    TITLE FOUR

    GENERAL PROVISIONS

    Article I

    Approval and Effective Date

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

    Article II

    Conference and Dispute Resolution

    Section 421
    The Government of the United States shall confer promptly at the
    request of the Government of the Republic of the Marshall Islands and
    that Government shall confer promptly at the request of the Government
    of the United States on matters relating to the provisions of this
    Compact, as amended, or of its related agreements.
    Section 422
    In the event the Government of the United States or the Government
    of the Republic of the Marshall Islands, after conferring pursuant to
    section 421, determines that there is a dispute and gives written notice
    thereof, the two Governments shall make a good faith effort to resolve
    the dispute between themselves.
    Section 423
    If <> a dispute between the Government of the
    United States and the Government of the Republic of the Marshall Islands
    cannot be resolved within 90 days of written notification in the manner
    provided in section 422, either party to the dispute may refer it to
    arbitration in accordance with section 424.

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

    [[Page 2827]]
    117 STAT. 2827

    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

    [[Page 2828]]
    117 STAT. 2828

    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.

    [[Page 2829]]
    117 STAT. 2829

    (c) In view of the special relationship of the United States and the
    Republic of the Marshall Islands described in subsection (b) of this
    section, if termination occurs pursuant to section 441 following the
    twentieth anniversary of the effective date of this Compact, as amended,
    the Republic of the Marshall Islands shall be entitled to receive
    proceeds from the Trust Fund described in section 216 of this Compact,
    as amended, in the manner described in those provisions and the Trust
    Fund Agreement.
    Section 452
    (a) Should termination occur pursuant to section 442 prior to the
    twentieth anniversary of the effective date of this Compact, as amended,
    the following provisions of this amended Compact shall remain in full
    force and effect until the twentieth anniversary of the effective date
    of this Compact, as amended, and thereafter as mutually agreed:
    (1) Article VI and sections 172, 173, 176 and 177 of Title
    One;
    (2) Article One and sections 232 and 234 of Title Two;
    (3) Title Three; and
    (4) Articles II, III, V and VI of Title Four.

    (b) Should termination occur pursuant to section 442 before the
    twentieth anniversary of the effective date of this Compact, as amended:
    (1) Except as provided in paragraph (2) of this subsection
    and subsection (c) of this section, economic and other
    assistance by the United States shall continue only if and as
    mutually agreed by the Governments of the United States and the
    Republic of the Marshall Islands.
    (2) In view of the special relationship of the United States
    and the Republic of the Marshall Islands, as reflected in
    subsections (b) and (c) of section 354 of this Compact, as
    amended, and the separate agreement regarding mutual security,
    and the Trust Fund Agreement, the United States shall continue
    to make contributions to the Trust Fund described in section 216
    of this Compact, as amended, in the manner described in the
    Trust Fund Agreement.

    (c) In view of the special relationship of the United States and the
    Republic of the Marshall Islands, as reflected in subsections 354(b) and
    (c) of this Compact, as amended, and the separate agreement regarding
    mutual security, and the Trust Fund Agreement, if termination occurs
    pursuant to section 442 following the twentieth anniversary of the
    effective date of this Compact, as amended, the Republic of the Marshall
    Islands shall continue to be eligible to receive proceeds from the Trust
    Fund described in section 216 of this Compact, as amended, in the manner
    described in those provisions and the Trust Fund Agreement.
    Section 453
    (a) Should termination occur pursuant to section 443 prior to the
    twentieth anniversary of the effective date of this Compact, as amended,
    the following provisions of this Compact, as amended, shall remain in
    full force and effect until the twentieth anniversary of the effective
    date of this Compact, as amended, and thereafter as mutually agreed:
    (1) Article VI and sections 172, 173, 176 and 177 of Title
    One;
    (2) Sections 232 and 234 of Title Two;
    (3) Title Three; and

    [[Page 2830]]
    117 STAT. 2830

    (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

    [[Page 2831]]
    117 STAT. 2831

    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

    [[Page 2832]]
    117 STAT. 2832

    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;

    [[Page 2833]]
    117 STAT. 2833

    (iii) Civil Aviation Safety Service and Related
    Programs;
    (iv) Civil Aviation Economic Services and Related
    Programs;
    (v) United States Disaster Preparedness and Response
    Services and Related Programs; and
    (vi) Telecommunications Services and Related
    Programs.
    (2) Agreement Between the Government of the United States of
    America and the Government of the Republic of the Marshall
    Islands on Extradition, Mutual Assistance in Law Enforcement
    Matters and Penal Sanctions Concluded Pursuant to Section 175
    (a) of the Compact of Free Association, as Amended;
    (3) Agreement Between the Government of the United States of
    America and the Government of the Republic of the Marshall
    Islands on Labor Recruitment Concluded Pursuant to Section 175
    (b) of the Compact of Free Association, as Amended;
    (4) Agreement Concerning Procedures for the Implementation
    of United States Economic Assistance Provided in the Compact, as
    Amended, of Free Association Between the Government of the
    United States of America and the Government of the Republic of
    the Marshall Islands;
    (5) Agreement Between the Government of the United States of
    America and the Government of the Republic of the Marshall
    Islands Implementing Section 216 and Section 217 of the Compact,
    as Amended, Regarding a Trust Fund;
    (6) Agreement Regarding the Military Use and Operating
    Rights of the Government of the United States in the Republic of
    the Marshall Islands Concluded Pursuant to Sections 321 and 323
    of the Compact of Free Association, as Amended; and
    (7) Status of Forces Agreement Between the Government of the
    United States of America and the Government of the Republic of
    the Marshall Islands Concluded Pursuant to Section 323 of the
    Compact of Free Association, as Amended.

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

    [[Page 2834]]
    117 STAT. 2834

    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 (April 30, 2003)   Signed (April 30, 2003)
    For the Government of the For the Government of the
    United States of America: Republic of the Marshall Islands:

    Ambassador Michael J. SenkHis Excellency Banny deBrum
    U.S. Ambassador to the    Ambassador Extraordinary and
    Republic of the Marshall IPlenipotentiary

    Approved December 17, 2003.

    LEGISLATIVE HISTORY--H.J. Res. 63 (S.J. Res. 16):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 108-262, Pt. 1 (Comm. on International Relations),
    Pt. 2 (Comm. on Resources), and Pt. 3 (Comm. on the Judiciary).
    SENATE REPORTS: No. 108-159 accompanying S.J. Res. 16 (Comm. on Energy
    and Natural Resources).
    CONGRESSIONAL RECORD, Vol. 149 (2003):
    Oct. 28, considered and passed House.
    Nov. 6, considered and passed Senate, amended.
    Nov. 20, House concurred in Senate amendments.