[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.