-CITE-
    48 USC CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND
           PALAU                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

-HEAD-
           CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU       


-MISC1-
              SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS          

         PART A - APPROVAL AND IMPLEMENTATION OF ORIGINAL COMPACT     
    Sec.                                                     
    1901.       Approval of Compact of Free Association.              
                  (a)  Federated States of Micronesia.                
                  (b)  Marshall Islands.                              
                  (c)  Reference to Compact.                          
                  (d)  Amendment, change, or termination in Compact
                        and certain agreements.                       
                  (e)  Subsidiary agreements deemed bilateral.        
                  (f)  Effective date.                                
    1902.       Agreements with Federated States of Micronesia.       
                  (a)  Law enforcement assistance.                    
                  (b)  Economic development plans review process.     
                  (c)  Agreement on audits.                           
    1903.       Agreements with and other provisions related to
                 Marshall Islands.                                    
                  (a)  Law enforcement assistance.                    
                  (b)  Economic development plans review process.     
                  (c)  Ejit.                                          
                  (d)  Kwajalein payments.                            
                  (e)  Section 177 Agreement.                         
                  (f)  Nuclear test effects.                          
                  (g)  Espousal provisions.                           
                  (h)  DOE radiological health care program; USDA
                        agricultural and food programs.               
                  (i)  Rongelap.                                      
                  (j)  Four atoll health care program.                
                  (k)  Enjebi Community Trust Fund.                   
                  (l)  Bikini Atoll cleanup.                          
                  (m)  Agreement on audits.                           
    1904.       Interpretation of and United States policy regarding
                 Compact of Free Association.                         
                  (a)  Human rights.                                  
                  (b)  Immigration.                                   
                  (c)  Nonalienation of lands.                        
                  (d)  Nuclear waste disposal.                        
                  (e)  Impact of Compact on U.S. areas.               
                  (f)  Fisheries management.                          
                  (g)  Foreign loans.                                 
    1905.       Supplemental provisions.                              
                  (a)  Domestic program requirements.                 
                  (b)  Relations with Federated States of Micronesia
                        and Marshall Islands.                         
                  (c)  Continuing Trust Territory authorization.      
                  (d)  Medical referral debts.                        
                  (e)  Survivability.                                 
                  (f)  Registration for agents of Governments of
                        Federated States of Micronesia and Marshall
                        Islands.                                      
                  (g)  Noncompliance sanctions.                       
                  (h)  Continuing programs and laws.                  
                  (i)  College of Micronesia; education programs.     
                  (j)  Trust Territory debts to U.S. Federal agencies.
                  (k)  Use of DOD medical facilities.                 
                  (l)  Technical assistance.                          
                  (m)  Prior Service Benefits Program.                
                  (n)  Indefinite land use payments.                  
                  (o)  Communicable disease control program.          
                  (p)  Trust funds.                                   
                  (q)  Omitted.                                       
                  (r)  User fees.                                     
    1906.       Construction contract assistance.                     
                  (a)  Assistance to U.S. firms.                      
                  (b)  Authorization of appropriations.               
    1907.       Limitations.                                          
                  (a)  Prohibition.                                   
                  (b)  Termination.                                   
    1908.       Transitional immigration rules.                       
                  (a)  Citizen of Northern Mariana Islands.           
                  (b)  Termination.                                   
    1909.       Timing.                                               
    1910.       Implementation of audit agreements.                   
                  (a)  Transmission of annual financial statement.    
                  (b)  Annual audits by President.                    
                  (c)  Authority of GAO.                              
    1911.       Compensatory adjustments.                             
                  (a)  Additional programs and services.              
                  (b)  Investment Development Funds.                  
                  (c)  Board of Advisors.                             
                  (d)  Further amounts.                               
    1912.       Jurisdiction.                                         

       PART B - APPROVAL AND IMPLEMENTATION OF COMPACTS, AS AMENDED   
    1921.       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 and U.S.-RMI compact and
                        certain agreements.                           
                  (e)  Subsidiary agreements deemed bilateral.        
                  (f)  Entry into force of future amendments to
                        subsidiary agreements.                        
    1921a.      Agreements with Federated States of Micronesia.       
                  (a)   Law enforcement assistance.                   
                  (b)  Agreement on audits.                           
    1921b.      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.                                     
    1921c.      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.                      
    1921d.      Supplemental provisions.                              
                  (a)  Domestic program requirements.                 
                  (b)  Relations with the Federated States of
                        Micronesia and the Republic of the Marshall
                        Islands.                                      
                  (c)   Continuing Trust Territory authorization.     
                  (d)   Survivability.                                
                  (e)  Noncompliance sanctions; actions incompatible
                        with United States authority.                 
                  (f)  Continuing programs and laws.                  
                  (g)  College of Micronesia.                         
                  (h)  Trust Territory debts to U.S. Federal agencies.
                  (i)  Judicial training.                             
                  (j)  Technical assistance.                          
                  (k)  Prior service benefits program.                
                  (l)  Indefinite land use payments.                  
                  (m)  Communicable disease control program.          
                  (n)  User fees.                                     
                  (o)  Treatment of judgments of courts of the
                        Federated States of Micronesia, the Republic
                        of the Marshall Islands, and the Republic of
                        Palau.                                        
                  (p)  Establishment of trust funds; expedition of
                        process.                                      
    1921e.      Construction contract assistance.                     
                  (a)  Assistance to U.S. firms.                      
                  (b)  Authorization of appropriations.               
    1921f.      Prohibition.                                          
    1921g.      Compensatory adjustments.                             
                  (a)  Additional programs and services.              
                  (b)  Further amounts.                               
    1921h.      Authorization and continuing appropriation.           

                           SUBCHAPTER II - PALAU                       

         PART A - APPROVAL OF COMPACT AND SUPPLEMENTAL PROVISIONS     
    1931.       Approval of Compact of Free Association.              
                  (a)  Approval.                                      
                  (b)  Reference to Compact.                          
                  (c)  Amendment, change, or termination of Compact
                        and certain agreements.                       
                  (d)  Effective date.                                
    1932.       Extension of Compact of Free Association to Palau.    
    1933.       Supplemental provisions.                              
                  (a)  Civic Action Teams.                            
                  (b)  Inventory and study of natural, historic, and
                        other resources.                              
                  (c)  Omitted.                                       
                  (d)  Peleliu and Angaur.                            
                  (e)  Power generation.                              
                  (f)  Reduction of appropriations.                   
                  (g)  Understandings, interpretations, and policy
                        statements.                                   
                  (h)  Additional provisions relating to Title Three
                        of Compact.                                   
                  (i)  Availability of appropriations.                
                  (j)  Authority to contract or make payments.        
                  (k)  Annual report.                                 
    1934.       Jurisdiction.                                         
                  (a)  Maritime and territorial jurisdiction.         
                  (b)  Defense sites.                                 
                  (c)  Offenses.                                      

                    PART B - IMPLEMENTATION OF COMPACT                
    1951.       Entry into force of Compact.                          
    1952.       Fiscal procedures assistance.                         
    1953.       Antidrug program.                                     
                  (a)  Plan.                                          
                  (b)  Agreement.                                     
    1954.       Public auditor and special prosecutor.                
    1955.       Audit certification.                                  
    1956.       Acquisition of defense sites.                         
    1957.       Federal programs coordination personnel.              
    1958.       Referendum costs.                                     
    1959.       Agreements.                                           
                  (a)  Effective date of certain agreements.          
                  (b)  Extensions.                                    
                  (c)  Authorization.                                 
    1960.       Modification of energy assistance funding.            
                  (a)  Fulfillment of United States obligations.      
                  (b)  Adjustment and payment.                        
                  (c)  Availability of appropriation account.         
    1961.       Submission of agreements.                             
    1962.       Transition funding.                                   

                 SUBCHAPTER III - MISCELLANEOUS PROVISIONS             
    1971.       Transfer of surplus personal property owned by United
                 States.                                              
                  (a)  Transfer to Northern Mariana Islands, Palau,
                        Marshall Islands, and Federated States of
                        Micronesia.                                   
                  (b)  Declaration that property is surplus.          
                  (c)  Property held in trust.                        
    1972.       Controlled substances in freely associated states.    
                  (a)  In general.                                    
                  (b)  Effective date.                                
    1973.       Freely Associated State Air Carrier.                  

-End-


-CITE-
    48 USC SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS       01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-
              SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS          

-End-


-CITE-
    48 USC Part A - Approval and Implementation of Original
                     Compact                               01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
         PART A - APPROVAL AND IMPLEMENTATION OF ORIGINAL COMPACT     

-End-



-CITE-
    48 USC Sec. 1901                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1901. Approval of Compact of Free Association

-STATUTE-
    (a) Federated States of Micronesia
      The Compact of Free Association set forth in title II of this
    joint resolution between the United States and the Government of
    the Federated States of Micronesia is hereby approved, and Congress
    hereby consents to the subsidiary agreements as set forth on pages
    115 through 391 of House Document 98-192 of March 30, 1984, as they
    relate to such Government. Subject to the provisions of this joint
    resolution, the President is authorized to agree, in accordance
    with section 411 of the Compact, to an effective date for and
    thereafter to implement such Compact, having taken into account any
    procedures with respect to the United Nations for termination of
    the Trusteeship Agreement.
    (b) Marshall Islands
      The Compact of Free Association set forth in title II of this
    joint resolution between the United States and the Government of
    the Marshall Islands is hereby approved, and Congress hereby
    consents to the subsidiary agreements as set forth on pages 115
    through 391 of House Document 98-192 of March 30, 1984, as they
    relate to such Government. Subject to the provisions of this joint
    resolution, the President is authorized to agree, in accordance
    with section 411 of the Compact, to an effective date for and
    thereafter to implement such Compact, having taken into account any
    procedures with respect to the United Nations for termination of
    the Trusteeship Agreement.
    (c) Reference to Compact
      Any reference in this joint resolution to "the Compact" shall be
    treated as a reference to the Compact of Free Association set forth
    in title II of this joint resolution.
    (d) Amendment, change, or termination in Compact and certain
      agreements
      (1) Mutual agreement by the Government of the United States as
    provided in the Compact which results in amendment, change, or
    termination of all or any part thereof shall be effected only by
    Act of Congress and no unilateral action by the Government of the
    United States provided for in the Compact, and having such result,
    may be effected other than by Act of Congress.
      (2) The provisions of paragraph (1) shall apply - 
        (A) to all actions of the Government of the United States under
      the Compact including, but not limited to, actions taken pursuant
      to sections 431, 432, 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(j) of the Compact and the Agreement between the
      Government of the United States and the Government of the
      Marshall Islands Concerning Mutual Security Concluded Pursuant to
      Sections 321 and 323 of the Compact of Free Association referred
      to in section 462(k) of the Compact;
        (C) to any amendment, change, or termination of the agreements
      concluded pursuant to Compact sections 175, 177, and 221(a)(5),
      the terms of which are incorporated by reference into the
      Compact; and
        (D) to the following subsidiary agreements, or portions
      thereof:
          (i) Article II of the agreement referred to in section 462(a)
        of the Compact;
          (ii) Article II of the agreement referred to in section
        462(b) of the Compact;
          (iii) Article II and Section 7 of Article XI of the agreement
        referred to in section 462(e) of the Compact;
          (iv) the agreement referred to in section 462(f) of the
        Compact;
          (v) Articles III and IV of the agreement referred to in
        section 462(g) of the Compact;
          (vi) Articles III and IV of the agreement referred to in
        section 462(h) of the Compact; and
          (vii) Articles VI, XV, and XVII of the agreement referred to
        in section 462(i) of the Compact.
    (e) Subsidiary agreements deemed bilateral
      For purposes of implementation of the Compact and this joint
    resolution, each of the subsidiary agreements referred to in
    subsections (a) and (b) of this section (whether or not bilateral
    in form) shall be deemed to be bilateral agreements 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
    Marshall Islands which are intended to affect the implementation,
    modification, suspension, or termination of any 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) Effective date
      (1) The President shall not agree to an effective date for the
    Compact, as authorized by this section, until after certifying to
    Congress that the agreements described in section 1902 of this
    title and section 1903 of this title have been concluded.
      (2) Any agreement concluded with the Federated States of
    Micronesia or the Marshall Islands pursuant to sections 1902 and
    1903 of this title and any agreement which would amend, change, or
    terminate any subsidiary agreement or portion thereof as set forth
    in paragraph (4) of this subsection shall be submitted to the
    Congress. No such agreement shall take effect until after the
    expiration of 30 days after the date such agreement is so submitted
    (excluding days on which either House of Congress is not in
    session).
      (3) No agreement described in paragraph (2) shall take effect if
    a joint resolution of disapproval is enacted during the period
    specified in paragraph (2). For the purpose of expediting the
    consideration of such a joint resolution, a motion to proceed to
    the consideration of any such joint resolution after it has been
    reported by an appropriate committee shall be treated as highly
    privileged in the House of Representatives. Any such joint
    resolution shall be considered in the Senate in accordance with the
    provisions of section 601(b) of Public Law 94-329.
      (4) The subsidiary agreements or portions thereof referred to in
    paragraph (2) are as follows:
        (A) Articles III and IV of the agreement referred to in section
      462(b) of the Compact.
        (B) Articles III, IV, V, VI, VII, VIII, IX, X, and XI (except
      for Section 7 thereof) of the agreement referred to in section
      462(e) of the Compact.
        (C) Articles IV, V, X, XIV, XVI, and XVIII of the agreement
      referred to in section 462(i) of the Compact.
        (D) Articles II, V, VI, VII, and VIII of the agreement referred
      to in section 462(g) of the Compact.
        (E) Articles II, V, VI, and VIII of the agreement referred to
      in section 462(h) of the Compact.
        (F) The Agreement set forth on pages 388 through 391 of House
      Document 98-192 of March 30, 1984.

      (5) No agreement between the United States and the Government of
    either the Federated States of Micronesia or 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 or paragraph (4) of this subsection shall take effect
    until 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
    therefore.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 101, Jan. 14, 1986, 99 Stat. 1773.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239, as
    amended, set out below.
      This joint resolution, referred to in subsecs. (a), (b), (c), and
    (e), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as amended,
    known as the Compact of Free Association Act of 1985, which is
    classified principally to this part and chapter 19 (Sec. 2001 et
    seq.) of this title. For complete classification of this Act to the
    Code, see Short Title note below.
      For Oct. 21, 1986, as the effective date of the Compact of Free
    Association with the Marshall Islands, and Nov. 3, 1986, as the
    effective date of the Compact of Free Association with the
    Federated States of Micronesia, referred to in subsecs. (a), (b),
    and (f), see Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out
    as a note under section 1801 of this title.
      Section 601(b) of Public Law 94-329, referred to in subsec.
    (f)(3), is section 601(b) of Pub. L. 94-329, title VI, June 30,
    1976, 90 Stat. 765, which is not classified to the Code.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                       SHORT TITLE OF 2003 AMENDMENT                   
      Pub. L. 108-188, Sec. 1(a), Dec. 17, 2003, 117 Stat. 2721,
    provided that: "This joint resolution [enacting part B of this
    subchapter and provisions set out as notes under section 1921 of
    this title and amending provisions set out as a note under section
    3101 of Title 5, Government Organization and Employees], together
    with the table of contents in subsection (b) of this section [117
    Stat. 2721], may be cited as the 'Compact of Free Association
    Amendments Act of 2003'."

                                SHORT TITLE                            
      Section 1(a) of Pub. L. 99-239 provided that: "This joint
    resolution [enacting this part, chapter 19 (Sec. 2001 et seq.) of
    this title, and provisions set out below], together with the Table
    of Contents in subsection (b) of this section [99 Stat. 1770], may
    be cited as the 'Compact of Free Association Act of 1985'."

        APPLICATION OF FEDERAL PROGRAMS UNDER THE COMPACTS OF FREE
                                ASSOCIATION
      Pub. L. 106-504, Sec. 3(a), Nov. 13, 2000, 114 Stat. 2312,
    provided that: "The freely associated states of the Republic of the
    Marshall Islands, the Federated States of Micronesia, and the
    Republic of Palau, respectively, and citizens thereof, shall remain
    eligible for all Federal programs, grant assistance, and services
    of the United States, to the extent that such programs, grant
    assistance, and services are provided to States and local
    governments of the United States and residents of such States, for
    which a freely associated State or its citizens were eligible on
    October 1, 1999. This eligibility shall continue through the period
    of negotiations referred to in section 231 of the Compact of Free
    Association with the Republic of the Marshall Islands and the
    Federated States of Micronesia, approved in Public Law 99-239 [set
    out below], and during consideration by the Congress of legislation
    submitted by an Executive branch agency as a result of such
    negotiations."

                 REGULATIONS REGARDING HABITUAL RESIDENCE             
      Pub. L. 104-208, div. C, title VI, Sec. 643, Sept. 30, 1996, 110
    Stat. 3009-708, provided that, not later than 6 months after Sept.
    30, 1996, the Commissioner of Immigration and Naturalization was to
    issue regulations governing rights of "habitual residence" in the
    United States under the terms of the Compact of Free Association
    between the Government of the United States and the Governments of
    the Marshall Islands and the Federated States of Micronesia and the
    Compact of Free Association between the Government of the United
    States and the Government of Palau.

       RATIFICATION OF CERTAIN AGREEMENTS BETWEEN UNITED STATES AND
    GOVERNMENTS OF REPUBLIC OF MARSHALL ISLANDS AND FEDERATED STATES OF
                                MICRONESIA
      Pub. L. 101-62, July 26, 1989, 103 Stat. 162, provided: "That,
    pursuant to section 101(d) of Public Law 99-239 [48 U.S.C.
    1901(d)], the following agreements are approved and shall enter
    into force in accordance with their terms:
        "(1) 'Agreement Between the Government of the United States and
      the Government of the Republic of the Marshall Islands to Amend
      the Governmental Representation Provisions of the Compact of Free
      Association Pursuant to section 432 of the Compact', signed on
      March 18, 1988; and
        "(2) 'Agreement Between the Government of the United States and
      the Government of the Federated States of Micronesia to Amend the
      Governmental Representation Provisions of the Compact of Free
      Association Pursuant to section 432 of the Compact', signed on
      March 9, 1988."

                              RECITAL CLAUSES                          
      Pub. L. 99-239 which enacted this part and chapter 19 of this
    title contained several "Whereas" clauses reading as follows:
      "Whereas the United States, in accordance with the Trusteeship
    Agreement, the Charter of the United Nations and the objectives of
    the international trusteeship system, has promoted the development
    of the peoples 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; and
      "Whereas the United States, in response to the desires of the
    peoples of the Federated States of Micronesia and the Marshall
    Islands expressed through their freely-elected representatives and
    by the official pronouncements and enactments of their lawfully
    constituted governments, and in consideration of its own
    obligations under the Trusteeship Agreement to promote self-
    determination, entered into political status negotiations with
    representatives of the peoples of the Federated States of
    Micronesia, and the Marshall Islands; and
      "Whereas these negotiations resulted in the 'Compact of Free
    Association' [set out below] which, together with its related
    agreements, was signed by the United States and by the Federated
    States of Micronesia and the Republic of the Marshall Islands on
    October 1, 1982 and June 25, 1983, respectively; and
      "Whereas the Compact of Free Association was approved by
    majorities of the peoples of the Federated States of Micronesia and
    the Marshall Islands in United Nations-observed plebiscites
    conducted on June 21, 1983 and September 7, 1983, respectively; and
      "Whereas the Compact of Free Association has been approved by the
    Governments of the Federated States of Micronesia and the Marshall
    Islands in accordance with their respective constitutional
    processes, thus completing fully for the Federated States of
    Micronesia and the Marshall Islands their domestic approval
    processes with respect to the Compact as contemplated in Compact
    Section 411".

                        COMPACT OF FREE ASSOCIATION                    
      Pub. L. 99-239, title II, Sec. 201, Jan. 14, 1986, 99 Stat. 1800,
    as amended by Pub. L. 108-108, title I, Nov. 10, 2003, 117 Stat.
    1261, provided that: "The Compact of Free Association is as
    follows:

                       "COMPACT OF FREE ASSOCIATION                   

                                 "PREAMBLE                             

    "THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENTS
      OF THE MARSHALL ISLANDS AND THE FEDERATED STATES OF MICRONESIA
      "Affirming that their Governments and their relationships as
    Governments are founded upon respect for human rights and
    fundamental freedoms for all, and that the peoples of the Trust
    Territory of the Pacific Islands have the right to enjoy self-
    government; and
      "Affirming the common interests of the United States of America
    and the peoples of the Trust Territory of the Pacific Islands in
    creating close and mutually beneficial relationships through two
    free and voluntary associations of their respective Governments;
    and
      "Affirming the interest of the Government of the United States in
    promoting the economic advancement and self-sufficiency of the
    peoples of the Trust Territory of the Pacific Islands; and
      "Recognizing that their previous relationship has been 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 peoples of the Trust Territory have
    progressively developed their institutions of self-government, and
    that in the exercise of their sovereign right to self-determination
    they have, through their freely-expressed wishes, adopted
    Constitutions appropriate to their particular circumstances; and
      "Recognizing their common desire to terminate the Trusteeship and
    establish two new government-to-government relationships each of
    which is in accordance with a new political status based on the
    freely-expressed wishes of peoples of the Trust Territory of the
    Pacific Islands and appropriate to their particular circumstances;
    and
      "Recognizing that the peoples of the Trust Territory of the
    Pacific Islands have and retain their sovereignty and their
    sovereign right to self-determination and the inherent right to
    adopt and amend their own Constitutions and forms of government and
    that the approval of the entry of their respective Governments into
    this Compact of Free Association by the peoples of the Trust
    Territory of the Pacific Islands constitutes an exercise of their
    sovereign right to self-determination;
      "NOW, THEREFORE, AGREE to enter into relationships of free
    association which provide a full measure of self-government for the
    peoples of the Marshall Islands and the Federated States of
    Micronesia; and
      "FURTHER AGREE that the relationships of free association derive
    from and are as set forth in this Compact; and that, during such
    relationships of free association, the respective rights and
    responsibilities of the Government of the United States and the
    Governments of the freely associated states of the Marshall Islands
    and the Federated States of Micronesia in regard to these
    relationships of free association derive from and are as set forth
    in this Compact.

                                "TITLE ONE                            

                          "GOVERNMENTAL RELATIONS                      

                                "ARTICLE I                            

                             "SELF-GOVERNMENT                         

      "Section 111
      "The peoples of the Marshall Islands and the Federated States of
    Micronesia, acting through the Governments established under their
    respective Constitutions, are self-governing.

                                "ARTICLE II                            

                             "FOREIGN AFFAIRS                         

      "Section 121
      "(a) The Governments of the Marshall Islands and the Federated
    States of Micronesia have the capacity to conduct foreign affairs
    and shall do so in their own name and right, except as otherwise
    provided in this Compact.
      "(b) The foreign affairs capacity of the Governments of the
    Marshall Islands and 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 their 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 their
      individual citizens.
      "(c) The Government of the United States recognizes that the
    Governments of the Marshall Islands and the Federated States of
    Micronesia have the capacity to enter into, in their own name and
    right, treaties and other international agreements with governments
    and regional and international organizations.
      "(d) In the conduct of their foreign affairs, the Governments of
    the Marshall Islands and the Federated States of Micronesia confirm
    that they shall act in accordance with principles of international
    law and shall settle their international disputes by peaceful
    means.

      "Section 122
      "The Government of the United States shall support applications
    by the Governments of the Marshall Islands and the Federated States
    of Micronesia for membership or other participation in regional or
    international organizations as may be mutually agreed. The
    Government of the United States agrees to accept for training and
    instruction at the Foreign Service Institute [now George P. Shultz
    National Foreign Affairs Training Center], established under 22
    U.S.C. 4021, citizens of the Marshall Islands and the Federated
    States of Micronesia. The qualifications of candidates for such
    training and instruction and all other terms and conditions of
    participation by citizens of the Marshall Islands and the Federated
    States of Micronesia in Foreign Service Institute [now George P.
    Shultz National Foreign Affairs Training Center] programs shall be
    as mutually agreed between the Government of the United States and
    the Governments of the Marshall Islands and the Federated States of
    Micronesia.

      "Section 123
      "(a) In recognition of the authority and responsibility of the
    Government of the United States under Title Three, the Governments
    of the Marshall Islands and the Federated States of Micronesia
    shall consult, in the conduct of their foreign affairs, with the
    Government of the United States.
      "(b) In recognition of the respective foreign affairs capacities
    of the Governments of the Marshall Islands and 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
    Marshall Islands or the Federated States of Micronesia on matters
    which the Government of the United States regards as relating to or
    affecting any such Government.

      "Section 124
      "The Government of the United States may assist or act on behalf
    of the Government of the Marshall Islands or 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 Marshall Islands or 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
    Marshall Islands or the Federated States of Micronesia in the area
    of foreign affairs, except as may from time to time be expressly
    agreed.

      "Section 126
      "At the request of the Government of the Marshall Islands or 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 Marshall Islands and the Federated States
    of Micronesia for travel outside the Marshall Islands and the
    Federated States of Micronesia, the United States and its
    territories and possessions.

      "Section 127
      "Except as otherwise provided in this Compact or its related
    agreements, all obligations, responsibilities, rights and benefits
    of the Government of the United States as Administering Authority
    which have 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 the day
    preceding the effective date of this Compact are no longer assumed
    and enjoyed by the Government of the United States.

                               "ARTICLE III                           

                              "COMMUNICATIONS                          

      "Section 131
      "(a) The Governments of the Marshall Islands and the Federated
    States of Micronesia have full authority and responsibility to
    regulate their respective domestic and foreign communications, and
    the Government of the United States shall provide communications
    assistance in accordance with the terms of a separate agreement
    which shall come into effect simultaneously with this Compact, and
    such agreement shall remain in effect until such time as any
    election is made pursuant to Section 131(b) and which shall provide
    for the following:
        "(1) the Government of the United States remains the sole
      administration entitled to make notification to the International
      Frequency Registration Board of the International
      Telecommunications Union of frequency assignments to radio
      communications stations respectively in the Marshall Islands and
      the Federated States of Micronesia; and to submit to the
      International Frequency Registration Board seasonal schedules for
      the broadcasting stations respectively in the Marshall Islands
      and the Federated States of Micronesia in the bands allocated
      exclusively to the broadcasting service between 5,950 and 26,100
      kHz and in any other additional frequency bands that may be
      allocated to use by high frequency broadcasting stations; and
        "(2) the United States Federal Communications Commission has
      jurisdiction, pursuant to the Communications Act of 1934, 47
      U.S.C. 151 et seq., and the Communications Satellite Act of 1962,
      47 U.S.C. 721 et seq., over all domestic and foreign
      communications services furnished by means of satellite earth
      terminal stations where such stations are owned or operated by
      United States common carriers and are located in the Marshall
      Islands or the Federated States of Micronesia.
      "(b) The Government of the Marshall Islands or the Federated
    States of Micronesia may elect at any time to undertake the
    functions enumerated in Section 131(a) and previously performed by
    the Government of the United States. Upon such election, the
    Government of the United States shall so notify the International
    Frequency Registration Board and shall take such other actions as
    may be necessary to transfer to the electing Government the
    notification authority referred to in Section 131(a) and all rights
    deriving from the previous exercise of any such notification
    authority by the Government of the United States.

      "Section 132
      "The Governments of the Marshall Islands and the Federated States
    of Micronesia shall permit the Government of the United States to
    operate telecommunications services in the Marshall Islands and the
    Federated States of Micronesia to the extent necessary to fulfill
    the obligations of the Government of the United States under this
    Compact in accordance with the terms of separate agreements which
    shall come into effect simultaneously with this Compact.

                                "ARTICLE IV                            

                               "IMMIGRATION                           

      "Section 141
      "(a) Any person in the following categories may enter into,
    lawfully engage in occupations, and establish residence as a
    nonimmigrant in the United States and its territories and
    possessions without regard to paragraphs (14), (20), and (26) of
    section 212(a) of the Immigration and Nationality Act, 8 U.S.C.
    1182(a) (14), (20), and (26):
        "(1) a person who, on the day preceding the effective date of
      this Compact, is 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 a citizen of the
      Marshall Islands or the Federated States of Micronesia;
        "(2) a person who acquires the citizenship of the Marshall
      Islands or the Federated States of Micronesia at birth, on or
      after the effective date of the respective Constitution;
        "(3) a naturalized citizen of the Marshall Islands or 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;
      or
        "(4) a person entitled to citizenship in the Marshall Islands
      by lineal descent whose name is included in a list to be
      furnished by the Government of the Marshall Islands to the United
      States Immigration and Naturalization Service and any descendants
      of such persons, provided that such person holds a certificate of
      lineal descent issued by the Government of the Marshall Islands.
    Such persons shall be considered to have the permission of the
    Attorney General of the United States to accept employment in the
    United States.
      "(b) The right of such persons to establish habitual residence in
    a territory or possession of the United States may, however, be
    subjected to nondiscriminatory limitations provided for:
        "(1) in statutes or regulations of the United States; or
        "(2) in those statutes or regulations of the territory or
      possession concerned which are authorized by the laws of the
      United States.
      "(c) Section 141(a) does not confer on a citizen of the Marshall
    Islands or the Federated States of Micronesia the right to
    establish the residence necessary for naturalization under the
    Immigration and Nationality Act, or to petition for benefits for
    alien relatives under that Act. Section 141(a), however, shall not
    prevent a citizen of the Marshall Islands or 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 enter into,
    lawfully engage in occupations, and reside in the Marshall Islands
    or the Federated States of Micronesia, subject to the rights of
    those Governments to deny entry to or deport any such citizen or
    national as an undesirable alien. A citizen or national of the
    United States may establish habitual residence or domicile in the
    Marshall Islands or the Federated States of Micronesia only in
    accordance with the laws of the jurisdiction in which habitual
    residence or domicile is sought.
      "(b) With respect to the subject matter of this Section, the
    Government of the Marshall Islands or the Federated States of
    Micronesia shall accord to citizens and nationals of the United
    States treatment no less favorable than that accorded to citizens
    of other countries; any denial of entry to or deportation of a
    citizen or national of the United States as an undesirable alien
    must be pursuant to reasonable statutory grounds.

      "Section 143
      "(a) The privileges set forth in Sections 141 and 142 shall not
    apply to any person who takes an affirmative step to preserve or
    acquire a citizenship or nationality other than that of the
    Marshall Islands, the Federated States of Micronesia or the United
    States.
      "(b) Every person having the privileges set forth in Sections 141
    and 142 who possesses a citizenship or nationality other than that
    of the Marshall Islands, the Federated States of Micronesia or the
    United States ceases to have these privileges two years after the
    effective date of this Compact, or within six months after becoming
    21 years of age, whichever comes later, unless such person executes
    an oath of renunciation of that other citizenship or nationality.

      "Section 144
      "(a) A citizen or national of the United States who, after
    notification to the Government of the United States of an intention
    to employ such person by the Government of the Marshall Islands or
    the Federated States of Micronesia, commences employment with such
    Government shall not be deprived of his United States nationality
    pursuant to Section 349(a)(2) and (a)(4) of the Immigration and
    Nationality Act, 8 U.S.C. 1481(a)(2) and (a)(4).
      "(b) Upon such notification by the Government of the Marshall
    Islands or the Federated States of Micronesia, the Government of
    the United States may consult with or provide information to the
    notifying Government concerning the prospective employee, subject
    to the provisions of the Privacy Act, 5 U.S.C. 552a.
      "(c) The requirement of prior notification shall not apply to
    those citizens or nationals of the United States who are employed
    by the Government of the Marshall Islands or the Federated States
    of Micronesia on the effective date of this Compact with respect to
    the positions held by them at that time.

                                "ARTICLE V                            

                              "REPRESENTATION                          

      "Section 151
      "The Government of the United States and the Government of the
    Marshall Islands or the Federated States of Micronesia may
    establish and maintain representative offices in the capital of the
    other for the purpose of maintaining close and regular
    consultations on matters arising in the course of the relationship
    of free association and conducting other government business. The
    Governments may establish and maintain additional offices on terms
    and in locations as may be mutually agreed.

      "Section 152
      "(a) The premises of such representative offices, and their
    archives wherever located, shall be inviolable. The property and
    assets of such representative offices shall be immune from search,
    requisition, attachment and any form of seizure unless such
    immunity is expressly waived. Official communications in transit
    shall be inviolable and accorded the freedom and protections
    accorded by recognized principles of international law to official
    communications of a diplomatic mission.
      "(b) Persons designated by the sending Government may serve in
    the capacity of its resident representatives with the consent of
    the receiving Government. Such designated persons 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 as such representatives, except
    insofar as such immunity may be expressly waived by the sending
    Government. While serving in a resident representative capacity,
    such designated persons 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.
      "(c) The sending Governments and their respective assets, income
    and other property shall be exempt from all direct taxes, except
    those direct taxes representing payment for specific goods and
    services, and shall be exempt from all customs duties and
    restrictions on the import or export of articles required for the
    official functions and personal use of their representatives and
    representative offices.
      "(d) Persons designated by the sending Government to serve in the
    capacity of its resident representatives shall enjoy the same
    taxation exemptions as are set forth in Article 34 of the Vienna
    Convention on Diplomatic Relations.
      "(e) The privileges, exemptions and immunities accorded under
    this Section 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 to which they
    are assigned.

      "Section 153
      "(a) Any citizen or national of the United States who, after
    consultation between the designating Government and the Government
    of the United States, is designated by the Government of the
    Marshall Islands or the Federated States of Micronesia as its
    agent, shall enjoy exemption from the requirements of the laws of
    the United States relating to the registration of foreign agents.
    The Government of the United States shall promptly comply with a
    request for consultation made by the prospective designating
    Government. During the course of the consultation, the Government
    of the United States may, in its discretion, and subject to the
    provisions of the Privacy Act, 5 U.S.C. 552a, transmit such
    information concerning the prospective designee as may be available
    to it to the prospective designating Government.
      "(b) Any citizen or national of the United States may be employed
    by the Government of the Marshall Islands or the Federated States
    of Micronesia to represent to foreign governments, officers or
    agents thereof the positions of the Government of the Marshall
    Islands or the Federated States of Micronesia, without regard to
    the provisions of 18 U.S.C. 953.

                                "ARTICLE VI                            

                         "ENVIRONMENTAL PROTECTION                     

      "Section 161
      "The Governments of the United States, the Marshall Islands 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 Marshall Islands and the Federated States
    of Micronesia. In order to carry out this policy, the Government of
    the United States and the Governments of the Marshall Islands and
    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 the day preceding the effective date of this Compact 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 and its related agreements as if the Marshall Islands and
      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 environments of the Marshall Islands
      and the Federated States of Micronesia: the Endangered Species
      Act of 1973, 87 Stat. 884, 16 U.S.C. 1531 et seq.; the Clean Air
      Act, 77 Stat. 392, 42 U.S.C. Supp. 7401 et seq.; the Clean Water
      Act (Federal Water Pollution Control Act), 86 Stat. 896, 33
      U.S.C. 1251 et seq.; the Ocean Dumping Act (Title I of the Marine
      Protection, Research and Sanctuaries Act of 1972), 86 Stat. 1053,
      33 U.S.C. 1411 et seq.; the Toxic Substances Control Act, 90
      Stat. 2003, 15 U.S.C. 2601 et seq.; the Resources Conservation
      and Recovery Act of 1976, 90 Stat. 2796, 42 U.S.C. 6901 et seq.;
      and such other environmental protection laws of the United States
      as may be mutually agreed from time to time with the Government
      of the Marshall Islands or 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), appropriate mechanisms, including regulations
      or other judicially reviewable standards and procedures, to
      regulate its activities governed by Section 161(a)(3) in the
      Marshall Islands and the Federated States of Micronesia in a
      manner appropriate to the special governmental relationship set
      forth in this Compact. The agencies of the Government of the
      United States designated by law to administer the laws set forth
      in Section 161(a)(3) shall participate as appropriate in the
      development of any regulation, standard or procedure under this
      Section, and the Government of the United States shall provide
      the affected Government of the Marshall Islands or the Federated
      States of Micronesia with the opportunity to comment during such
      development.
      "(b) The Governments of the Marshall Islands and the Federated
    States of Micronesia shall develop standards and procedures to
    protect their environments. As a reciprocal obligation to the
    undertakings of the Government of the United States under this
    Article, the Governments of the Marshall Islands and the Federated
    States of Micronesia, taking into account their particular
    environments, shall develop standards for environmental protection
    substantively similar to those required of the Government of the
    United States by Section 161(a)(3) prior to their conducting
    activities in the Marshall Islands and the Federated States of
    Micronesia, respectively, 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 Marshall Islands or 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 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 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
    affected Government of the Marshall Islands or 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 affected Government.
      "(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 and its related agreements only to
    the extent provided for in this Section.

      "Section 162
      "The Government of the Marshall Islands or 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 Sections 161(a), 161(d) or 161(e) or
    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 concerned.
      "(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 District Court 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
    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 Governments of the
    Marshall Islands and the Federated States of Micronesia shall be
    treated as if they were United States citizens.

      "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 Governments
    of the Marshall Islands and the Federated States of Micronesia
    shall be granted access to facilities operated by the Government of
    the United States in the Marshall Islands and 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 Marshall Islands or 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 Marshall
    Islands or 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 those Governments under the Freedom of Information Act,
    5 U.S.C. 552.
      "(c) The Governments of the Marshall Islands and 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 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 ceases with respect to the Marshall Islands and the
    Federated States of Micronesia as of the effective date of this
    Compact.

      "Section 172
      "(a) Every citizen of the Marshall Islands or 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 Governments of the Marshall Islands and the Federated
    States of Micronesia and every citizen of the Marshall Islands or
    the Federated States of Micronesia shall be considered 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 Marshall Islands or 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, the Marshall Islands and
    the Federated States of Micronesia agree to adopt and enforce such
    measures, consistent with this Compact 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
    Marshall Islands and the Federated States of Micronesia pursuant to
    this Compact and its related agreements and by those Governments in
    the United States pursuant to this Compact and its related
    agreements.

      "Section 174
      "Except as otherwise provided in this Compact and its related
    agreements:
      "(a) The Governments of the Marshall Islands and the Federated
    States of Micronesia shall be immune from the jurisdiction of the
    courts of the United States, and the Government of the United
    States shall be immune from the jurisdiction of the courts of the
    Marshall Islands and 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 Trust Territory of the Pacific Islands or 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 the effective date of this Compact;
        "(2) any claim settled by the claimant and the Government of
      the Trust Territory of the Pacific Islands but not paid as of the
      effective date of this Compact; and
        "(3) settlement of any administrative claim or of any action
      before a court of the Trust Territory of the Pacific Islands,
      pending as of the effective date of this Compact, against the
      Government 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 this 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
    court, which shall have jurisdiction therefor, 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 Governments of the Marshall Islands and 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 Marshall Islands and the Federated States of Micronesia in any
    case in which the action is based on a commercial activity of the
    defendant Government where the action is brought, or in a case in
    which damages are sought for personal injury or death or damage to
    or loss of property occurring where the action is brought.

      "Section 175
      "A separate agreement, which shall come into effect
    simultaneously with this Compact, shall be concluded between the
    Government of the United States and the Governments of the Marshall
    Islands and the Federated States of Micronesia regarding mutual
    assistance and cooperation in law enforcement matters including the
    pursuit, capture, imprisonment and extradition of fugitives from
    justice and the transfer of prisoners. The separate agreement shall
    have the force of law. In the United States, the laws of the United
    States governing international extradition, including 18 U.S.C.
    3184, 3186 and 3188-3195, 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.
    4100-4115, shall be applicable to the transfer of prisoners under
    the separate agreement.

      "Section 176
      "The Governments of the Marshall Islands and the Federated States
    of Micronesia confirm 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 Marshall Islands and the Federated
    States of Micronesia to grant relief from judgments in appropriate
    cases.

      "Section 177
      "(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.

      "Section 178
      "(a) The federal agencies of the Government of the United States
    which provide the services and related programs in the Marshall
    Islands or the Federated States of Micronesia pursuant to Articles
    II and III of Title Two are authorized to settle and pay tort
    claims arising in the Marshall Islands or 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) which 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 Marshall Islands or the Federated States of Micronesia shall,
    in the separate agreements referred to in Section 232, provide for:
        "(1) the administrative settlement of claims referred to in
      Section 178(a), including designation of local agents in the
      Marshall Islands and 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.

                                "TITLE TWO                            

                            "ECONOMIC RELATIONS                        

                                "ARTICLE I                            

                             "GRANT ASSISTANCE                         

      "Section 211
      "(a) In order to assist the Governments of the Marshall Islands
    and the Federated States of Micronesia in their efforts to advance
    the economic self-sufficiency of their peoples and in recognition
    of the special relationship that exists between them and the United
    States, the Government of the United States shall provide on a
    grant basis the following amounts:
        "(1) to the Government of the Marshall Islands, $26.1 million
      annually for five years commencing on the effective date of this
      Compact, $22.1 million annually for five years commencing on the
      fifth anniversary of the effective date of this Compact, and
      $19.1 million annually for five years commencing on the tenth
      anniversary of this Compact. Over this fifteen-year period, the
      Government of the Marshall Islands shall dedicate an average of
      no less than 40 percent of these amounts to the capital account
      subject to provision for revision of this percentage incorporated
      into the plan referred to in Section 211(b); and
        "(2) to the Government of the Federated States of Micronesia,
      $60 million annually for five years commencing on the effective
      date of this Compact, $51 million annually for five years
      commencing on the fifth anniversary of the effective date of this
      Compact, and $40 million annually for five years commencing on
      the tenth anniversary of the effective date of this Compact. Over
      this fifteen year period, the Government of the Federated States
      of Micronesia shall dedicate an average of no less than 40
      percent of these amounts annually to the capital account subject
      to provision for revision of this percentage incorporated into
      the plan referred to in Section 211(b). To take into account the
      special nature of the assistance, to be provided under this
      paragraph and Sections 212(b), 213(c), 214(c), 215(a)(3),
      215(b)(3), 216(a), 216(b), 221(a), and 221(b), the division of
      these amounts among the national and state governments of the
      Federated States of Micronesia shall be certified to the
      Government of the United States by the Government of the
      Federated States of Micronesia.
      "(b) The annual expenditure of the grant amounts specified for
    the capital account in Section 211(a) by the Governments of the
    Marshall Islands and the Federated States of Micronesia shall be in
    accordance with official overall economic development plans
    provided by those Governments and concurred in by the Government of
    the United States prior to the effective date of this Compact.
    These plans may be amended from time to time by the Government of
    the Marshall Islands or the Federated States of Micronesia.
      "(c) The Government of the United States and the Governments of
    the Marshall Islands and the Federated States of Micronesia
    recognize that the achievement of the goals of the plans referred
    to in Section 211(b) depends upon the availability of adequate
    internal revenue as well as economic assistance from sources
    outside of the Marshall Islands and the Federated States of
    Micronesia, including the Government of the United States, and may,
    in addition, be affected by the impact of exceptional economically
    adverse circumstances. Each of the Governments of the Marshall
    Islands and the Federated States of Micronesia shall therefore
    report annually to the President of the United States and to the
    Congress of the United States on the implementation of the plans
    and on their use of the funds specified in this Article. These
    reports shall outline the achievements of the plans to date and the
    need, if any, for an additional authorization and appropriation of
    economic assistance for that year to account for any exceptional,
    economically adverse circumstances. It is understood that the
    Government of the United States cannot be committed by this Section
    to seek or support such additional economic assistance.

      "Section 212
      "In recognition of the special development needs of the Federated
    States of Micronesia, the Government of the United States shall
    provide to the Government of the Federated States of Micronesia $1
    million annually for fourteen years commencing on the first
    anniversary of the effective date of this Compact. This amount may
    be used by the Government of the Federated States of Micronesia to
    defray current account expenditures attendant to the operation of
    the United States military Civic Action Teams made available in
    accordance with the separate agreement referred to in Section 227.

      "Section 213
      "(a) The Government of the United States shall provide on a grant
    basis $1.9 million annually to the Government of the Marshall
    Islands in conjunction with Section 321(a). The Government of the
    Marshall Islands, in its use of such funds, shall take into account
    the impact of the activities of the Government of the United States
    in the Kwajalein Atoll area of the Marshall Islands.
      "(b) The Government of the United States shall provide on a grant
    basis to the Government of the Federated States of Micronesia the
    sum of $160,000 in conjunction with Section 321(a). This sum shall
    be made available concurrently with the grant assistance provided
    pursuant to this Article during the first year after the effective
    date of this Compact. The Government of the Federated States of
    Micronesia, in its use of such funds, shall take into account the
    impact of the activities of the Government of the United States in
    Yap State, Federated States of Micronesia.

      "Section 214
      "As a contribution to efforts aimed at achieving increased self-
    sufficiency in energy production, the Government of the United
    States shall provide on a current account grant basis for fourteen
    years commencing on the first anniversary of the effective date of
    this Compact the following amounts:
      "(a) To the Government of the Marshall Islands, $2 million
    annually.
      "(b) To the Government of the Federated States of Micronesia, $3
    million annually.

      "Section 215
      "(a) As a contribution to the current account operations and
    maintenance of communications systems, the Government of the United
    States shall provide on a grant basis for fifteen years commencing
    on the effective date of this Compact the following amounts:
        "(1) to the Government of the Marshall Islands, $300,000
      annually; and
        "(2) to the Government of the Federated States of Micronesia,
      $600,000 annually.
      "(b) For the purpose of acquiring such communications hardware as
    may be located within the Marshall Islands and the Federated States
    of Micronesia or for such other current or capital account activity
    as may be selected, the Government of the United States shall
    provide, concurrently with the grant assistance provided pursuant
    to this Article during the first year after the effective date of
    this Compact, the sum of $9 million to be allocated as follows:
        "(1) to the Government of the Marshall Islands, $3 million; and
        "(2) to the Government of the Federated States of Micronesia,
      $6 million.

      "Section 216
      "(a) The Government of the United States shall provide on a
    current account basis an annual grant of $5.369 million for fifteen
    years commencing on the effective date of this Compact for the
    purposes set forth below:
        "(1) $890,000 annually for the surveillance and enforcement by
      the Governments of the Marshall Islands and the Federated States
      of Micronesia of their respective maritime zones;
        "(2) $1.791 million annually for health and medical programs,
      including referrals to hospital and treatment centers; and
        "(3) $2.687 million annually for a scholarship fund or funds to
      support the post-secondary education of citizens of the Marshall
      Islands and the Federated States of Micronesia attending United
      States accredited, post-secondary institutions in the United
      States, its territories and possessions, the Marshall Islands or
      the Federated States of Micronesia. The curricula criteria for
      the award of scholarships shall be designed to advance the
      purposes of the plans referred to in Section 211(b).
      "(b) The Government of the United States shall provide the sum of
    $1.333 million as a contribution to the commencement of activities
    pursuant to Section 216(a)(1).
      "(c) The annual grants referred to in Section 216(a) and the sum
    referred to in Section 216(b) shall be made available by the
    Government of the United States promptly after it receives
    instruction for their distribution agreed upon by the Governments
    of the Marshall Islands and the Federated States of Micronesia.

      "Section 217
      "Except as otherwise provided, the amounts stated in Sections
    211, 212, 214, 215 and 231 shall be adjusted for each Fiscal Year
    by the percent which equals two-thirds of the percentage change in
    the United States Gross National Product Implicit Price Deflator,
    or seven percent, whichever is less in any one year, using the
    beginning of Fiscal Year 1981 as the base.

      "Section 218
      "If in any year the funds made available by the Government of the
    United States for that year pursuant to this Article or Section 231
    are not completely obligated by the recipient Government, the
    unobligated balances shall remain available in addition to the
    funds to be provided in subsequent years.

      "Section 219
      "All funds previously appropriated to the Trust Territory of the
    Pacific Islands which are unobligated by the Government of the
    Trust Territory of the Pacific Islands as of the effective date of
    this Compact shall accrue to the Governments of the Marshall
    Islands and the Federated States of Micronesia for the purposes for
    which such funds were originally appropriated as determined by the
    Government of the United States.

                                "ARTICLE II                            

                            "PROGRAM ASSISTANCE                        

      "Section 221
      "(a) The Government of the United States shall make available to
    the Marshall Islands and the Federated States of Micronesia, in
    accordance with and to the extent provided in the separate
    agreements referred to in section 232, without compensation and at
    the levels equivalent to those available to the Trust Territory of
    the Pacific Islands during the year prior to the effective date of
    this Compact, the services and related programs:
        "(1) of the United States Weather Service;
        "(2) of the United States Federal Emergency Management Agency;
        "(3) provided pursuant to the Postal Reorganization Act, 39
      U.S.C. 101 et seq.;
        "(4) of the United States Federal Aviation Administration; and
        "(5) of the United States Civil Aeronautics Board or its
      successor agencies which has the authority to implement the
      provisions of paragraph 5 of Article IX of such separate
      agreements, the language of which is incorporated into this
      Compact.
      "(b) The Government of the United States, recognizing the special
    needs of the Marshall Islands and the Federated States of
    Micronesia particularly in the fields of education and health care,
    shall make available, as provided by the laws of the United States,
    the annual amount of $10 million which shall be allocated in
    accordance with the provisions of the separate agreement referred
    to in Section 232.
      "(c) The Government of the United States shall make available to
    the Marshall Islands and the Federated States of Micronesia such
    alternate energy development projects, studies and conservation
    measures as are applicable to the Trust Territory of the Pacific
    Islands on the day preceding the effective date of this Compact,
    for the purposes and duration provided in the laws of the United
    States.
      "(d) The Government of the United States shall have and exercise
    such authority as is necessary for the purposes of this Article and
    as is set forth in the separate agreements referred to in Section
    232, which shall also set forth the extent to which services and
    programs shall be provided to the Marshall Islands and the
    Federated States of Micronesia.

      "Section 222
      "The Government of the United States and the Government of the
    Marshall Islands or the Federated States of Micronesia shall
    consult regularly or upon request regarding:
        "(a) The economic development of the Marshall Islands or the
      Federated States of Micronesia; or
        "(b) The services and programs referred to in this Article.
      These services and programs shall continue to be provided by the
      Government of the United States unless their modification is
      provided by mutual agreement or their termination in whole or in
      part is requested by any recipient Government.

      "Section 223
      "The citizens of the Marshall Islands and the Federated States of
    Micronesia who are receiving post-secondary educational assistance
    from the Government of the United States on the day preceding the
    effective date of this Compact shall continue to be eligible, if
    otherwise qualified, to receive such assistance to complete their
    academic programs for a maximum of four years after the effective
    date of this Compact.

      "Section 224
      "The Government of the United States and the Government of the
    Marshall Islands or the Federated States of Micronesia may agree
    from time to time to the extension of additional United States
    grant assistance, services and programs as provided by the Laws of
    the United States, to the Marshall Islands or the Federated States
    of Micronesia, respectively.

      "Section 225
      "The Governments of the Marshall Islands and 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 Marshall
    Islands or the Federated States of Micronesia at no cost to the
    Government of the United States as of the effective date of this
    Compact or as may be mutually agreed thereafter.

      "Section 226
      "The Governments of the Marshall Islands and 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 and which shall grant such
    technical assistance in a manner which gives priority consideration
    to the Marshall Islands and the Federated States of Micronesia over
    other recipients not a part of the United States, its territories
    or possessions. The Government of the United States shall
    coordinate the provision of such technical assistance in
    consultation with the respective recipient Government.

      "Section 227
      "In recognition of the special development needs of the Federated
    States of Micronesia, the Government of the United States shall
    make available United States military Civic Action Teams for use in
    the Federated States of Micronesia under terms and conditions
    specified in a separate agreement which shall come into effect
    simultaneously with this Compact.

                               "ARTICLE III                           

                        "ADMINISTRATIVE PROVISIONS                    

      "Section 231
      "Upon the thirteenth anniversary of the effective date of this
    Compact, the Government of the United States and the Governments of
    the Marshall Islands and the Federated States of Micronesia shall
    commence negotiations regarding those provisions of this Compact
    which expire on the fifteenth anniversary of its effective date.
    The period for the enactment of legislation approving the
    agreements resulting from such negotiations shall extend through
    the earlier of the date of the enactment of such legislation or
    September 30, 2004, during which time the provisions of this
    Compact, including Title Three, shall remain in full force and
    effect.

      "Section 232
      "The specific nature, extent and contractual arrangements of the
    services and programs provided for in Section 221 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 Marshall Islands or the
    Federated States of Micronesia, and other arrangements in
    connection with a service or program furnished by the Government of
    the United States, are set forth in separate agreements which shall
    come into effect simultaneously with this Compact.

      "Section 233
      "The Government of the United States, in consultation with the
    Governments of the Marshall Islands and 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. Such audits
    shall be conducted on an annual basis during the first five years
    following the effective date of this Compact and shall be at no
    cost to the Government of the Marshall Islands or the Federated
    States of Micronesia.

      "Section 234
      "Title to the property of the Government of the United States
    situated in the Trust Territory of the Pacific Islands or acquired
    for or used by the Government of the Trust Territory of the Pacific
    Islands on or before the day preceding the effective date of this
    Compact shall, without reimbursement or transfer of funds, vest in
    the Government of the Marshall Islands and the Federated States of
    Micronesia as set forth in a separate agreement which shall come
    into effect simultaneously with this Compact. The provisions of
    this Section shall not apply to the property of the Government of
    the United States for which the Government of the United States
    determines a continuing requirement.

      "Section 235
      "(a) Funds held in trust by the High Commissioner of the Trust
    Territory of the Pacific Islands, in his official capacity, as of
    the effective date of this Compact shall remain available as trust
    funds to their designated beneficiaries. The Government of the
    United States, in consultation with the Government of the Marshall
    Islands or the Federated States of Micronesia, shall appoint a new
    trustee who shall exercise the functions formerly exercised by the
    High Commissioner of the Trust Territory of the Pacific Islands.
      "(b) To provide for the continuity of administration, and to
    assure the Governments of the Marshall Islands and the Federated
    States of Micronesia that the purposes of the laws of the United
    States are carried out and that the funds of any other trust fund
    in which the High Commissioner of the Trust Territory of the
    Pacific Islands has authority of a statutory or customary nature
    shall remain available as trust funds to their designated
    beneficiaries, the Government of the United States agrees to assume
    the authority formerly vested in the High Commissioner of the Trust
    Territory of the Pacific Islands.

      "Section 236
      "Except as otherwise provided, approval of this Compact by the
    Government of the United States shall constitute a pledge of the
    full faith and credit of the United States for the full payment of
    the sums and amounts specified in Articles I and III of this Title.
    The obligation of the United States under Articles I and III of
    this Title shall be enforceable in the United States Claims Court
    [now United States Court of Federal Claims], or its successor
    court, which shall have jurisdiction in cases arising under this
    Section, 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.

                                "ARTICLE IV                            

                                  "TRADE                              

      "Section 241
      "The Marshall Islands and the Federated States of Micronesia are
    not included in the customs territory of the United States.

      "Section 242
      "For the purpose of assessing duties on their products imported
    into the customs territory of the United States, the Marshall
    Islands and the Federated States of Micronesia shall be treated as
    if they were insular possessions of the United States within the
    meaning of General Headnote 3(a) of the Tariff Schedules of the
    United States. The exceptions, valuation procedures and all other
    provisions of General Headnote 3(a) shall apply to any product
    deriving from the Marshall Islands or the Federated States of
    Micronesia.

      "Section 243
      "All products of the Marshall Islands or the Federated States of
    Micronesia imported into the customs territory of the United States
    which are not accorded the treatment set forth in Section 242 and
    all products of the United States imported into the Marshall
    Islands or 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.

                                "ARTICLE V                            

                           "FINANCE AND TAXATION                       

      "Section 251
      "The currency of the United States is the official circulating
    legal tender of the Marshall Islands and the Federated States of
    Micronesia. Should the Government of the Marshall Islands or 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 Marshall Islands or 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
    such Government 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 Marshall Islands or the Federated States of
    Micronesia, domiciled therein, shall be exempt from:
      "(a) Income taxes imposed by the Government of the United States
    upon fixed or determinable annual income.
      "(b) Estate, gift, and generation-skipping transfer taxes imposed
    by the Government of the United States.

      "Section 254
      "(a) In determining any income tax imposed by the Government of
    the Marshall Islands or the Federated States of Micronesia, those
    Governments shall have authority to impose tax upon income derived
    by a resident of the Marshall Islands or the Federated States of
    Micronesia from sources without the Marshall Islands and the
    Federated States of Micronesia, in the same manner and to the same
    extent as those Governments impose tax upon income derived from
    within their respective jurisdictions. If the Government of the
    Marshall Islands or the Federated States of Micronesia exercises
    such authority as provided in this subsection, any individual
    resident of the Marshall Islands or the Federated States of
    Micronesia who is subject to tax by the Government of the United
    States on income which is also taxed by the Government of the
    Marshall Islands or 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. For purposes
    of this Section, the term 'resident of the Marshall Islands or the
    Federated States of Micronesia' shall be deemed to include any
    person who was physically present in the Marshall Islands or the
    Federated States of Micronesia for a period of 183 or more days
    during any taxable year; provided, that as between the Government
    of the Marshall Islands and the Federated States of Micronesia, the
    authority to tax an individual resident of the Marshall Islands or
    the Federated States of Micronesia in respect of income from
    sources without the Marshall Islands and the Federated States of
    Micronesia as provided in this subsection may be exercised only by
    the Government in whose jurisdiction such individual was physically
    present for the greatest number of days during the taxable year.
      "(b) If the Government of the Marshall Islands or 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
      "Where not otherwise manifestly inconsistent with the intent of
    this Compact, provisions in the United States Internal Revenue Code
    that are applicable to possessions of the United States as of
    January 1, 1980 shall be treated as applying to the Marshall
    Islands and the Federated States of Micronesia. If such provisions
    of the Internal Revenue Code are amended, modified or repealed
    after that date, such provisions shall continue in effect as to the
    Marshall Islands and the Federated States of Micronesia for a
    period of two years during which time the Government of the United
    States and the Governments of the Marshall Islands and the
    Federated States of Micronesia shall negotiate an agreement which
    shall provide benefits substantially equivalent to those which
    obtained under such provisions.

                               "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 Marshall Islands and the Federated States of Micronesia.
      "(b) This authority and responsibility includes:
        "(1) the obligation to defend the Marshall Islands and the
      Federated States of Micronesia and their peoples 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 Marshall
      Islands and 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 Marshall Islands and 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 Marshall
    Islands and the Federated States of Micronesia the activities and
    operations necessary for the exercise of its authority and
    responsibility under this Title.

      "Section 313
      "(a) The Governments of the Marshall Islands and the Federated
    States of Micronesia shall refrain from actions which the
    Government of the United States determines, after appropriate
    consultation with those Governments, to be incompatible with its
    authority and responsibility for security and defense matters in or
    relating to the Marshall Islands and the Federated States of
    Micronesia.
      "(b) The consultations referred to in this Section shall be
    conducted expeditiously at senior levels of the Governments
    concerned, 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 Marshall Islands or 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 Marshall Islands or 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 over
    flight 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 Marshall
    Islands or the Federated States of Micronesia, the Government of
    the United States shall not store in the Marshall Islands or the
    Federated States of Micronesia any toxic chemical weapon, nor any
    radioactive materials nor any toxic chemical materials intended for
    weapons use.
      "(c) Radioactive, toxic chemical, or biological materials not
    intended for weapons use shall not be affected by Section 314(b).
      "(d) No material or substance referred to in this Section shall
    be stored in the Marshall Islands or 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 Marshall Islands or the Federated
    States of Micronesia exercises jurisdiction over the living
    resources of the seabed, subsoil or water column adjacent to its
    coasts.

      "Section 315
      "The Government of the United States may invite members of the
    armed forces of other countries to use military areas and
    facilities in the Marshall Islands or 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 by the Government of
    the Marshall Islands or 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 Marshall Islands or the Federated States of Micronesia are set
    forth in separate agreements which shall come into effect
    simultaneously with this Compact.
      "(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 Marshall Islands or 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
    concerned to satisfy those requirements through leases or other
    arrangements. The Government of the Marshall Islands or 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 Marshall Islands
    and 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 Marshall Islands and
    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 Marshall Islands or the Federated
    States of Micronesia, are set forth in separate agreements which
    shall come into effect simultaneously with this Compact.

                               "ARTICLE III                           

          "DEFENSE TREATIES AND INTERNATIONAL SECURITY AGREEMENTS      

      "Section 331
      "Subject to the terms of this Compact and its related agreements,
    the Government of the United States, exclusively, shall assume and
    enjoy, as to the Marshall Islands and 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 the
    day preceding the effective date of this Compact.
      "(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 Marshall Islands
    and 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 Marshall Islands or 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
    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 so long as
    such person does not establish habitual residence in the United
    States, its territories or possessions.

      "Section 342
      "The Government of the United States shall have enrolled, at any
    one time, at least two qualified students, one each from the
    Marshall Islands and the Federated States of Micronesia, as may be
    nominated by their respective Governments, 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. 1295b(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.

                                "ARTICLE V                            

                            "GENERAL PROVISIONS                        

      "Section 351
      "(a) The Government of the United States and the Government of
    the Marshall Islands or the Federated States of Micronesia shall
    establish two Joint Committees empowered to consider disputes under
    the implementation of this Title and its related agreements.
      "(b) The membership of each Joint Committee shall comprise
    selected senior officials of each of the two participating
    Governments. The senior United States military commander in the
    Pacific area shall be the senior United States member of each Joint
    Committee. For the meetings of each Joint Committee, each of the
    two participating Governments may designate additional or alternate
    representatives as appropriate for the subject matter under
    consideration.
      "(c) Unless otherwise mutually agreed, each Joint Committee shall
    meet semi-annually at a time and place to be designated, after
    appropriate consultation, by the Government of the United States. A
    Joint Committee also shall meet promptly upon request of either of
    its members. Upon notification by the Government of the United
    States, the Joint Committees so notified shall meet promptly in a
    combined session to consider matters within the jurisdiction of
    more than one Joint Committee. Each Joint Committee shall follow
    such procedures, including the establishment of functional
    subcommittees, as the members may from time to time agree.
      "(d) Unresolved issues in each Joint Committee shall be referred
    to the Governments concerned for resolution, and the Government of
    the Marshall Islands or 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 Governments of the
    Marshall Islands and the Federated States of Micronesia under
    Titles One, Two and Four and to their responsibility to assure the
    well-being of their peoples.

      "Section 353
      "(a) The Government of the United States shall not include any of
    the Governments of the Marshall Islands and the Federated States of
    Micronesia as named parties to a formal declaration of war, without
    their respective consent.
      "(b) Absent such consent, this Compact 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 Marshall Islands or the Federated
    States of Micronesia, which arise out of armed conflict subsequent
    to the effective date of this Compact 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) Notwithstanding any other provision of this Compact, the
    provisions of this Title are binding from the effective date of
    this Compact for a period of fifteen years between the Government
    of the United States and the Governments of the Marshall Islands
    and the Federated States of Micronesia and thereafter as mutually
    agreed or in accordance with Section 231, unless earlier terminated
    by mutual agreement pursuant to Section 441, or amended pursuant to
    Article III of Title Four.
      "(b) The Government of the United States recognizes, in view of
    the special relationship between the Government of the United
    States and the Governments of the Marshall Islands and the
    Federated States of Micronesia, and in view of the existence of
    separate agreements with each of them pursuant to Sections 321 and
    323, that, even if this Title should terminate, any attack on the
    Marshall Islands or the Federated States of Micronesia during the
    period in which such separate agreements are 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 Marshall Islands and the
    Federated States of Micronesia in accordance with its
    constitutional processes.

                                "TITLE FOUR                            

                            "GENERAL PROVISIONS                        

                                "ARTICLE I                            

                       "APPROVAL AND EFFECTIVE DATE                   

      "Section 411
      "This Compact shall come into effect upon mutual agreement
    between the Government of the United States, acting in fulfillment
    of its responsibilities as Administering Authority of the Trust
    Territory of the Pacific Islands, and the Government of the
    Marshall Islands or the Federated States of Micronesia and
    subsequent to completion of the following:
      "(a) Approval by the Government of the Marshall Islands or the
    Federated States of Micronesia in accordance with its
    constitutional processes.
      "(b) Conduct of the plebiscite referred to in Section 412.
      "(c) Approval by the Government of the United States in
    accordance with its constitutional processes.

      "Section 412
      "A plebiscite shall be conducted in each of the Marshall Islands
    and the Federated States of Micronesia for the free and voluntary
    choice by the peoples of the Trust Territory of the Pacific Islands
    of their future political status through informed and democratic
    processes. The Marshall Islands and the Federated States of
    Micronesia shall each be considered a voting jurisdiction, and the
    plebiscite shall be conducted under fair and equitable standards in
    each voting jurisdiction. The Administering Authority of the Trust
    Territory of the Pacific Islands, after consultation with the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, shall fix the date on which the plebiscite shall be
    called in each voting jurisdiction. The plebiscite shall be called
    jointly by the Administering Authority of the Trust Territory of
    the Pacific Islands and the other Signatory Government concerned.
    The results of the plebiscite in each voting jurisdiction shall be
    determined by a majority of the valid ballots cast in that voting
    jurisdiction.

                                "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 Marshall Islands or the Federated
    States of Micronesia and any of those Governments shall confer
    promptly at the request of the Government of the United States on
    matters relating to the provisions of this Compact or of its
    related agreements.

      "Section 422
      "In the event the Government of the United States, or the
    Government of the Marshall Islands or the Federated States of
    Micronesia, after conferring pursuant to Section 421, determines
    that there is a dispute and gives written notice thereof, the
    Governments which are parties to the dispute shall make a good
    faith effort to resolve the dispute among themselves.

      "Section 423
      "If a dispute between the Government of the United States and the
    Government of the Marshall Islands or 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) 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. 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 other party to the dispute.

                               "ARTICLE III                           

                                "AMENDMENT                            

      "Section 431
      "The provisions of this Compact may be amended as to the
    Governments of the Marshall Islands and the Federated States of
    Micronesia and as to the Government of the United States at any
    time by mutual agreement.

      "Section 432
      "The provisions of this Compact may be amended as to any one of
    the Governments of the Marshall Islands or the Federated States of
    Micronesia and as to the Government of the United States at any
    time by mutual agreement. The effect of any amendment made pursuant
    to this Section shall be restricted to the relationship between the
    Governments agreeing to such amendment, but the other Governments
    signatory to this Compact shall be notified promptly by the
    Government of the United States of any such amendment.

                                "ARTICLE IV                            

                               "TERMINATION                           

      "Section 441
      "This Compact may be terminated as to any one of the Governments
    of the Marshall Islands or the Federated States of Micronesia and
    as to the Government of the United States by mutual agreement and
    subject to Section 451.

      "Section 442
      "This Compact may be terminated by the Government of the United
    States as to the Government of the Marshall Islands or the
    Federated States of Micronesia subject to Section 452, such
    termination to 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.

      "Section 443
      "This Compact shall be terminated, pursuant to their respective
    constitutional processes, by the Government of the Marshall Islands
    or the Federated States of Micronesia subject to Section 453 if the
    people represented by such Government vote in a plebiscite to
    terminate. Such Government 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 such
    Government 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, such Government 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
      "Should termination occur pursuant to Section 441, economic
    assistance by the Government of the United States shall continue on
    mutually agreed terms.

      "Section 452
      "(a) Should termination occur pursuant to Section 442, the
    following provisions of this Compact shall remain in full force and
    effect until the fifteenth anniversary of the effective date of
    this Compact between the Government of the United States and the
    Government of the Marshall Islands or the Federated States of
    Micronesia and thereafter as mutually agreed:
        "(1) Article VI and Sections 172, 173, 176 and 177 of Title
      One;
        "(2) Article I and Section 233 of Title Two;
        "(3) Title Three; and
        "(4) Articles II, III, V and VI of Title Four.
      "(b) The Government of the United States shall also provide the
    Government as to which termination occurs pursuant to Section 442
    with either the programs or services provided pursuant to Article
    II of Title Two as the time of termination, or their equivalent, as
    determined by the Government of the United States. Such assistance
    shall continue until the fifteenth anniversary of the effective
    date of this Compact, and thereafter as mutually agreed.

      "Section 453
      "(a) Should termination occur pursuant to Section 443, the
    following provisions of this Compact shall remain in full force and
    effect until the fifteenth anniversary of the effective date of
    this Compact between the Government of the United States and the
    Government of the Marshall Islands or the Federated States of
    Micronesia and thereafter as mutually agreed:
        "(1) Article VI and Sections 172, 173, 176 and 177 of Title
      One;
        "(2) Title Three; and
        "(3) 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 so
    terminating shall promptly consult with regard to their future
    relationship. These consultations shall determine the level of
    economic assistance which the Government of the United States shall
    provide to the Government so terminating for the period ending on
    the fifteenth anniversary of the effective date of this Compact
    provided that the annual amounts specified in Sections 211, 212,
    214, 215 and 216 shall continue without diminution. Such amounts,
    with the exception of those specified in Section 216, shall be
    adjusted according to the formula set forth in Section 217.

      "Section 454
      "Notwithstanding any other provision of this Compact:
      "(a) The Government of the United States reaffirms its continuing
    interest in promoting the long-term economic advancement and self-
    sufficiency of the peoples of the Marshall Islands and the
    Federated States of Micronesia.
      "(b) The separate agreements referred to in Article II of the
    Title Three shall remain in effect in accordance with their terms
    which shall also determine the duration of Section 213.

                                "ARTICLE VI                            

                           "DEFINITION OF TERMS                       

      "Section 461
      "For the purpose of this Compact only and without prejudice to
    the views of the Government of the United States or the Government
    of the Marshall Islands or the Federated States of Micronesia as to
    the nature and extent of the jurisdiction under international law
    of any of them, 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
    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 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) 'Government of the Marshall Islands' means the Government
    established and organized by the Constitution of the Marshall
    Islands including all the political subdivisions and entities
    comprising that Government.
      " '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.
      "(e) The following terms shall be defined consistent with the
    1976 Edition of the Radio Regulations of the International
    Telecommunications Union (ISBN 92-61-0081-5) as follows:
        "(1) 'Radio Communications' 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
      radio communication service; each station shall be classified by
      the service in which it operates permanently or temporarily.
        "(3) 'Broadcasting Service' means a radio communication service
      in which the transmissions are intended for direct reception by
      the general public, and which may include sound transmissions,
      television transmissions or other types of transmissions.
        "(4) 'Broadcasting Station' means a station in the broadcasting
      service.
      "(f) 'Frequency Assignment' means the same as 'Frequency
    Assignment' means in the 1976 Edition of the Radio Regulations of
    the International Telecommunications Union (ISBN 92-61-0081-5).
      "(g) 'Habitual Residence' means a place of general abode or a
    principal, actual dwelling place of a continuing or lasting nature;
    provided, however, that this term shall not apply to the residence
    of any person who entered the United States for the purpose of full-
    time studies as long as such person maintains that status, or who
    has been physically present in the United States, the Marshall
    Islands, or the Federated States of Micronesia for less than one
    year, or who is a dependent of a resident representative, as
    described in Section 152.
      "(h) For the purposes of Article IV of Title One of this Compact:
        "(1) 'Actual Residence' means physical presence in the Marshall
      Islands or the Federated States of Micronesia during eighty-five
      percent of the period of residency required by Section 141(a)(3);
      and
        "(2) 'Certificate of Actual Residence' means a certificate
      issued to a naturalized citizen by the Government which has
      naturalized him stating that the citizen has complied with the
      actual residence requirement of Section 141(a)(3).
      "(i) 'Military Areas and Facilities' means those areas and
    facilities in the Marshall Islands or the Federated States of
    Micronesia reserved or acquired by the Government of the Marshall
    Islands or 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) 'Capital Account' means, for each year of the Compact, those
    portions of the total grant assistance provided in Article I of
    Title Two, adjusted by Section 217, which are to be obligated for:
        "(1) the construction or major repair of capital
      infrastructure; or
        "(2) public and private sector projects identified in the
      official overall economic development plan.
      "(k) 'Current Account' means, for each year of the Compact, those
    portions of the total grant assistance provided in Article I of
    Title Two, adjusted by Section 217, which are to be obligated for
    recurring operational activities including infrastructure
    maintenance as identified in the annual budget justifications
    submitted yearly to the Government of the United States.
      "(l) 'Official Overall Economic Development Plan' means the
    documented program of annual development which identifies the
    specific policy and project activities necessary to achieve a
    specified set of economic goals and objectives during the period of
    free association, consistent with the economic assistance authority
    in Title Two. Such a document should include an analysis of
    population trends, manpower requirements, social needs, gross
    national product estimates, resource utilization, infrastructure
    needs and expenditures, and the specific private sector projects
    required to develop the local economy of the Marshall Islands or
    the Federated States of Micronesia. Project identification should
    include initial cost estimates, with project purposes related to
    specific development goals and objectives.
      "(m) '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.
      "(n) '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
      "The Government of the United States and the Government of the
    Marshall Islands or the Federated States of Micronesia, as
    appropriate, shall conclude related agreements which shall come
    into effect and shall survive in accordance with their terms, as
    follows:
      "(a) Agreement Regarding the Provision of Telecommunication
    Services by the Government of the United States to the Marshall
    Islands and the Federated States of Micronesia Concluded Pursuant
    to Section 131 of the Compact of Free Association;
      "(b) Agreement Regarding the Operation of Telecommunication
    Services of the Government of the United States in the Marshall
    Islands and the Federated States of Micronesia Concluded Pursuant
    to Section 132 of the Compact of Free Association;
      "(c) Agreement on Extradition, Mutual Assistance in Law
    Enforcement Matters and Penal Sanctions Concluded Pursuant to
    Section 175 of the Compact of Free Association;
      "(d) 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;
      "(e) Federal Programs and Services Agreement Concluded Pursuant
    to Article II of Title Two and Section 232 of the Compact of Free
    Association;
      "(f) Agreement Concluded Pursuant to Section 234 of the Compact
    of Free Association;
      "(g) Agreement Regarding the Military Use and Operating Rights of
    the Government of the United States in the Marshall Islands
    Concluded Pursuant to Sections 321 and 323 of the Compact of Free
    Association;
      "(h) 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 227, 321 and 323 of the
    Compact of Free Association;
      "(i) Status of Forces Agreement Concluded Pursuant to Section 323
    of the Compact of Free Association;
      "(j) 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
      "(k) 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.

      "Section 463
      "(a) Except as set forth in Section 463(b), any reference in this
    Compact 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 such provision was
    in force on January 1, 1980.
      "(b) Any reference in Article VI of Title One and Sections 131,
    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 or the Administrative Procedure Act
    constitutes the incorporation of the language of such provision
    into this Compact as such provision is in force on the effective
    date of this Compact 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
      "(a) The Government of the United States and the Governments of
    the Marshall Islands and the Federated States of Micronesia agree
    that they have full authority under their respective Constitutions
    to enter into this Compact and its related agreements and to
    fulfill all of their respective responsibilities in accordance with
    the terms of this Compact and its related agreements. The
    Governments pledge that they are so committed.
      "(b) Each of the Governments of the United States, the Marshall
    Islands and the Federated States of Micronesia shall take all
    necessary steps, of a general or particular character, to ensure,
    not later than the effective date of this Compact, the conformity
    of its laws, regulations and administrative procedures with the
    provisions of this Compact.
      "(c) Without prejudice to the effects of this Compact under
    international law, this Compact has the force and effect of a
    statute under the laws of the United States.

      "Section 472
      "This Compact may be accepted, by signature or otherwise, by the
    Government of the United States, the Government of the Marshall
    Islands, and the Government of the Federated States of Micronesia.
    Each Government accepting this Compact shall possess an original
    English language version.
      "IN WITNESS WHEREOF, the undersigned, duly authorized, have
    signed this Compact of Free Association which shall come into
    effect in accordance with its terms between the Government of the
    United States and each of the other Governments signatory to this
    Compact.

                "DONE AT HONOLULU, HAWAII, THIS 1ST DAY OF            

              "OCTOBER, ONE THOUSAND, NINE HUNDRED EIGHTY-TWO          

                            "FOR THE GOVERNMENT                        

                                    "OF                                

                       "THE UNITED STATES OF AMERICA                   
    "ambassador fred m. zeder, ii
      "president's personal representative
        "for micronesian status negotiations

                "DONE AT HONOLULU, HAWAII, THIS 1ST DAY OF            

              "OCTOBER, ONE THOUSAND, NINE HUNDRED EIGHTY-TWO          

                            "FOR THE GOVERNMENT                        

                                    "OF                                

                    "THE FEDERATED STATES OF MICRONESIA                
    "honorable andon l. amaraich
      "chairman, commission on future
        "political status and transition

             "DONE AT MAJURO, MARSHALL ISLANDS, THIS 25TH DAY         

            "OF JUNE, ONE THOUSAND, NINE HUNDRED, EIGHTY-THREE        

                            "FOR THE GOVERNMENT                        

                                    "OF                                

                       "THE UNITED STATES OF AMERICA                   
    "ambassador fred m. zeder, ii
      "president's personal representative
        "for micronesian status negotiations

             "DONE AT MAJURO, MARSHALL ISLANDS, THIS 25TH DAY         

             "OF JUNE, ONE THOUSAND, NINE HUNDRED EIGHTY-THREE         

                            "FOR THE GOVERNMENT                        

                                    "OF                                

                           "THE MARSHALL ISLANDS                       
    "president amata kabua
      "president of the republic
        "of the marshall islands".
      [Pub. L. 108-108, title I, Nov. 10, 2003, 117 Stat. 1261, which
    directed amendment of section 231 of Pub. L. 99-239, was executed
    by amending section 231 of the Compact of Free Association, set out
    above, to reflect the probable intent of Congress. Pub. L. 99-239,
    which sets out the Compact, does not contain a section 231.]
      [For abolition of Immigration and Naturalization Service,
    transfer of functions, and treatment of related references, see
    note set out under section 1551 of Title 8, Aliens and
    Nationality.]
      [For transfer of functions, personnel, assets, and liabilities of
    the Federal Emergency Management Agency, including the functions of
    the Director of the Federal Emergency Management Agency relating
    thereto, to the Secretary of Homeland Security, and for treatment
    of related references, see sections 313(1), 551(d), 552(d), and 557
    of Title 6, Domestic Security, and the Department of Homeland
    Security Reorganization Plan of November 25, 2002, as modified, set
    out as a note under section 542 of Title 6.]
      [For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.]
      [For termination, effective May 15, 2000, of provisions of law
    requiring submittal to Congress of any annual, semiannual, or other
    regular periodic report listed in House Document No. 103-7 (in
    which reporting requirements under section 211(c) of the Compact of
    Free Association, set out above, are listed as the 5th and 6th
    items on page 115), see section 3003 of Pub. L. 104-66, as amended,
    set out as a note under section 1113 of Title 31, Money and
    Finance.]

      CLARIFICATION OF CERTAIN TRADE AND TAX PROVISIONS OF COMPACT OF
                             FREE ASSOCIATION
      Title IV of Pub. L. 99-239 provided that:

      "SEC. 401. FREELY ASSOCIATED STATES TARIFF TREATMENT.
      "(a) Section 242. - Section 242 of the Compact [set out above]
    shall be construed and applied as if it read as follows:

      " 'Section 242
      " 'The President shall proclaim the following tariff treatment
    for articles imported from the Federated States of Micronesia or
    the Marshall Islands which shall apply during the period of
    effectiven[e]ss of this title:
        " '(1) Unless otherwise excluded, articles imported from the
      Federated States of Micronesia or the Marshall Islands, subject
      to the limitations imposed under sections 503(b) and 504(c) of
      title 5 of the Trade Act of 1974 (19 U.S.C. 2463(b); 2464(c)),
      shall be exempt from duty.
        " '(2) Only canned tuna provided for in item 112.30 of the
      Tariff Schedules of the United States that is imported from the
      Federated States of Micronesia and the Marshall Islands during
      any calendar year not to exceed 10 percent of the United States
      consumption of canned tuna 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 aggregate quantity of canned
      tuna that is dutiable under rate column numbered 1 of such item
      112.30 for that calendar year.
        " '(3) The duty-free treatment provided under paragraph (1)
      shall not apply to - 
          " '(A) watches, clocks, and timing apparatus provided for in
        subpart E of part 2 of schedule 7 of the Tariff Schedules of
        the United States;
          " '(B) buttons (whether finished or not finished) provided
        for in item 745.32 of such Schedules;
          " '(C) textile and apparel articles which are subject to
        textile agreements; and
          " '(D) footwear, handbags, luggage, flat goods, work gloves,
        and leather wearing apparel which were not eligible articles
        for purposes of chapter V of the Trade Act of 1974 (19 U.S.C.
        2461, et seq.) on April 1, 1984.
        " '(4) 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 or 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(b)(2) of title V of the
      Trade Act of 1974.'.
      "(b) Section 243. - Section 243 of the Compact shall be construed
    and applied as if it read as follows:

      " 'Section 243
      " 'Articles imported from the Federated States of Micronesia or
    the Marshall Islands which are not exempt from duty under
    paragraphs (1), (2), (3), and (4) of section 242 shall be subject
    to the rates of duty set forth in column numbered 1 of the Tariff
    Schedules of the United States and all products of the United
    States imported into the Federated States of Micronesia or 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.'.

      "SEC. 402. CONSTRUCTION OF SECTION 253 OF THE COMPACT.
      "(a) Subsection (a) of section 253 of the Compact shall not
    apply.
      "(b) Subsection (b) of section 253 of the Compact shall apply
    only to individuals who are nonresidents and not citizens of the
    United States.

      "SEC. 403. CONSTRUCTION OF SECTION 254 OF THE COMPACT.
      "The relief from liability referred to in the second sentence of
    section 254(a) of the Compact means only - 
        "(1) 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
        "(2) relief in the form of the exclusion under section 911 of
      the Internal Revenue Code of 1986 [26 U.S.C. 911].

      "SEC. 404. CONSTRUCTION OF SECTION 255 OF THE COMPACT.
      "Section 255 of the Compact shall be construed and applied as if
    it read as follows:

      " 'Section 255
      " '(a) Extension of Section 936 to the Marshall Islands and the
    Federated States of Micronesia. - For purposes of section 936 of
    the Internal Revenue Code of 1986, the Marshall Islands and the
    Federated States of Micronesia shall be treated as if they were
    possessions of the United States.
      " '(b) Exchange of Information. - Subsection (a) shall not apply
    to the Marshall Islands and the Federated States of Micronesia (as
    the case may be) for any period after December 31, 1986, during
    which there is not in effect between the appropriate government and
    the United States an exchange of information agreement of the kind
    described in section 274(h)(6)(C) (other than clause (ii) thereof)
    of the Internal Revenue Code of 1986.
      " '(c) Procedure If Section 936 Incentives Reduced. - If the tax
    incentives extended to the Marshall Islands and the Federated
    States of Micronesia under subsection (a) are, at any time during
    which the Compact is in effect, reduced, the Secretary of the
    Treasury shall negotiate an agreement with the Marshall Islands and
    the Federated States of Micronesia under which, when such agreement
    is approved by law, they will be provided with benefits
    substantially equivalent to such reduction in benefits. If, within
    the 1 year period after the date of the enactment of the Act making
    the reduction in benefits, an agreement negotiated under the
    preceding sentence is not approved by law, the matter shall be
    submitted to the Arbitration Board established pursuant to section
    424 of the Compact. For purposes of Article V of Title Two of the
    Compact, the Secretary of the Treasury or his delegate shall be the
    member of such Board representing the Government of the United
    States. Any decision of such Board in the matter when approved by
    law shall be binding on the United States, except that such
    decision rendered is binding only as to whether the United States
    has provided the substantially equivalent benefits referred to in
    this subsection.'.

      "SEC. 405. THE MARSHALL ISLANDS AND THE FEDERATED STATES OF
        MICRONESIA TREATED AS NORTH AMERICAN AREA.
      "For purposes of section 274(h)(3)(A) of the Internal Revenue
    Code of 1986 [26 U.S.C. 274(h)(3)(A)], the term 'North American
    Area' shall include the Marshall Islands and the Federated States
    of Micronesia.

      "SEC. 406. EFFECTIVE DATE.
      "This title shall apply to income earned, and transactions
    occurring, after September 30, 1985, in taxable years ending after
    such date.

      "SEC. 407. STUDY OF TAX PROVISIONS.
      "The Secretary of the Treasury or his delegate - 
        "(1) shall conduct a study of the effects of the tax provisions
      of the Compact (as clarified by the foregoing provisions of this
      title), and
        "(2) shall report the results of such study before October 1,
      1987, to the Committee on Ways and Means of the House of
      Representatives and the Committee on Finance of the Senate.
      [The due date for the report referred to in section 407 of Pub.
    L. 99-239, set out above, was extended to Jan. 1, 1991 by Pub. L.
    101-508, title XI, Sec. 11831(b), Nov. 5, 1990, 104 Stat. 1388-
    559.]

      "SEC. 408. COORDINATION WITH OTHER PROVISIONS.
      "Nothing in any provision of this joint resolution [see Short
    Title note above] (other than this title) which is inconsistent
    with any provision of this title shall have any force or effect."


-EXEC-
    EX. ORD. NO. 12569. MANAGEMENT OF COMPACT OF FREE ASSOCIATION WITH
     REPUBLIC OF THE MARSHALL ISLANDS, FEDERATED STATES OF MICRONESIA,
                           AND REPUBLIC OF PALAU
      Ex. Ord. No. 12569, Oct. 16, 1986, 51 F.R. 37171, as amended by
    Ex. Ord. No. 12877, Nov. 3, 1993, 58 F.R. 59159, provided:
      By the authority vested in me as President by the Constitution
    and laws of the United States, including the Compact of Free
    Association (the Compact) [set out above] and Public Law 99-239,
    (the Act) [see Short Title note above], it is ordered as follows:
      Section 1. Responsibility of the Secretary of State. The
    Secretary of State shall conduct the government-to-government
    relations of the United States with the Republic of the Marshall
    Islands, the Federated States of Micronesia, and the Republic of
    Palau (the "Freely Associated States"), including any subdivisions,
    officials or persons thereof, and may delegate or allocate such of
    his authority under this Order to such other United States
    officials as he may from time to time deem desirable. The authority
    of the Secretary of State shall include, consistent with Article V
    of Title One of the Compact and section 105(b)(1) of the Act [48
    U.S.C. 1905(b)(1)], the establishment and maintenance of
    representative offices in the Freely Associated States and
    supervision of the United States representatives and their staff.
    The Secretary also shall provide, in accordance with applicable
    law, for appropriate privileges, immunities, and assistance to
    representatives to the United States designated by the Governments
    of the Freely Associated States, together with their officers and
    staff. In accordance with applicable law and the provisions of this
    Order, the Secretary also shall have the authority and
    responsibility to take such other actions as may be necessary and
    appropriate to ensure that the authorities and obligations of the
    United States set forth in the Compact and its related agreements
    and in the laws of the United States as they relate to the conduct
    of government-to-government relations with the Freely Associated
    States are carried out. The Secretary shall provide from
    appropriations made to the Department of State such funds as may be
    necessary to carry out the provisions of this Order in relation to
    the activities of the Department of State.
      Sec. 2. Responsibility of the Secretary of the Interior. The
    Secretary of the Interior shall be responsible for seeking the
    appropriation of funds for and, in accordance with the laws of the
    United States, shall make available to the Freely Associated States
    the United States economic and financial assistance appropriated
    pursuant to Article I of Title Two of the Compact; the grant,
    service, and program assistance appropriated pursuant to Article II
    of Title Two of the Compact; and all other United States assistance
    appropriated pursuant to the Compact and its related agreements.
    The Secretary shall coordinate and monitor any program or any
    activity by any department or agency of the United States provided
    to the Freely Associated States and shall coordinate and monitor
    related economic development planning. This Section shall not apply
    to services provided by the Department of Defense to the Freely
    Associated States or to activities pursuant to Section 1 of this
    Order, including activities under the Peace Corps Act [22 U.S.C.
    2501 et seq.].
      Sec. 3. Interagency Group on Freely Associated State Affairs and
    the Office of Freely Associated State Affairs.
      (a) There is established an Interagency Group on Freely
    Associated State Affairs for the purpose of providing guidance and
    oversight with respect to the establishment and implementation of
    policy concerning the Compact and United States relations with the
    Freely Associated States.
      (b) The Interagency Group shall consist of the Secretary of State
    or his designee, who shall chair the Group, and of the principal
    officers or their designees from the Departments of the Interior,
    Defense, Commerce, Energy, and Justice, the Organization of the
    Joint Chiefs of Staff, the Office of Management and Budget, the
    National Security Council, and such other departments and agencies
    as may from time to time be appropriate.
      (c) The Interagency Group shall make such recommendations as it
    shall deem appropriate to the President, through the Assistant to
    the President for National Security Affairs, concerning United
    States relations with the Freely Associated States. The Interagency
    Group also shall provide such guidance as it deems appropriate to
    departments and agencies delegated authority by this Order
    concerning administration of laws with respect to the Freely
    Associated States.
      (d) If any department or agency charged by this Order with
    implementation of the Compact or other laws of the United States
    with respect to the Freely Associated States concludes that
    noncompliance sanctions pursuant to section 105(g) of the Act [48
    U.S.C. 1905(g)] are appropriate, it shall make appropriate
    recommendations to the Interagency Group. The Interagency Group
    shall consider these recommendations and report its findings to the
    President for his review in making that determination.
      (e)(1) The Secretary of State shall be responsible for the
    conduct of United States relations with the Freely Associated
    States, carry out related matters, and provide appropriate support
    to the Interagency Group, bearing in mind the continued special
    relationship between the United States and the Freely Associated
    States.
      (2) The Secretaries of Defense and Interior may, to the extent
    permitted by law, delegate any or all of their respective
    authorities and responsibilities as described in this Order to the
    Secretary of State or his or her designee. The Secretary of State
    or his or her designee shall serve as Executive Secretary of the
    Interagency Group.
      (3) Personnel additional to that provided by the Secretary of
    State may be detailed to the Department of State by the Executive
    departments and agencies that are members of the Interagency Group,
    and by other agencies as appropriate. Executive departments and
    agencies shall, to the extent permitted by law, provide such
    information, advice, and administrative services and facilities to
    the Secretary of State as may be necessary to conduct United States
    relations with the Freely Associated States.
      Sec. 4. United States Representatives to the Freely Associated
    States. The United States Representative assigned to a Freely
    Associated State in accordance with Article V of Title One of the
    Compact shall represent the Government of the United States in an
    official capacity in that Freely Associated State, and shall
    supervise the actions of any Executive department or agency
    personnel assigned permanently or temporarily to that Freely
    Associated State.
      Sec. 5. Cooperation among Executive Departments and Agencies. All
    Executive departments and agencies shall cooperate in the
    effectuation of the provisions of this Order. The Interagency Group
    and the Secretary of State shall facilitate such cooperative
    measures. Nothing in this Order shall be construed to impair the
    authority and responsibility of the Secretary of Defense for
    security and defense matters in or relating to the Freely
    Associated States.
      Sec. 6. Delegation to the Secretary of the Interior. The
    following authorities are delegated to the Secretary of the
    Interior:
      (a) Reporting to the Congress on economic development plans
    prepared by the Government of the Federated States of Micronesia
    and the Government of the Marshall Islands, pursuant to sections
    102(b) and 103(b) of the Act [48 U.S.C. 1902(b), 1903(b)];
      (b) The determination required by section 103(e) of the Act
    concerning the qualifications of the investment management firm
    selected by the Government of the Marshall Islands;
      (c) Reporting to the Congress with respect to the impact of the
    Compact of Free Association on the United States territories and
    commonwealths and on the State of Hawaii, pursuant to section
    104(e)(2) of the Act [48 U.S.C. 1904(e)(2)]; and
      (d) Causing an annual audit to be conducted of the annual
    financial statements of the Government of the Federated States of
    Micronesia and the Government of the Marshall Islands, pursuant to
    section 110(b) of the Act [48 U.S.C. 1910(b)].
      Sec. 7. Delegation to the Secretary of State. The following
    authorities are delegated to the Secretary of State:
      (a) Reporting to the Congress on crimes in the Federated States
    of Micronesia and the Marshall Islands which have an impact upon
    United States jurisdictions, pursuant to sections 102(a)(4) and
    103(a)(4) of the Act [48 U.S.C. 1902(a)(4), 1903(a)(4)];
      (b) Submitting the certification and report to the Congress for
    purposes of section 5 of the Fishermen's Protective Act of 1967 [22
    U.S.C. 1975], pursuant to section 104(f)(3) of the Act [48 U.S.C.
    1904(f)(3)]; and
      (c) Reporting, with the concurrence of the Secretary of Defense,
    to the Congress on determinations made regarding security and
    defense, pursuant to section 105(q) of the Act [former 48 U.S.C.
    1905(q)].
      Sec. 8. Supersession and Saving Provisions.
      (a) Subject to the provisions of Section 9 of this Order, prior
    Executive orders concerning the former Trust Territory of the
    Pacific Islands are hereby superseded and rendered inapplicable,
    except that the authority of the Secretary of the Interior as
    provided in applicable provisions of Executive Order No. 11021, as
    amended [formerly 48 U.S.C. 1681 note], shall remain in effect, in
    a manner consistent with this Order and pursuant to section
    105(c)(2) of the Act [48 U.S.C. 1905(c)(2)], to terminate the trust
    territory government and discharge its responsibilities, at which
    time the entirety of Executive Order No. 11021 shall be superseded.
      (b) Nothing in this Order shall be construed as modifying the
    rights or obligations of the United States under the provisions of
    the Compact or as affecting or modifying the responsibility of the
    Secretary of State and the Attorney General to interpret the rights
    and obligations of the United States arising out of or concerning
    the Compact.
      Sec. 9. Effective Date. This Order shall become effective with
    respect to a Freely Associated State simultaneously with the entry
    into force of the Compact for that State.

-End-



-CITE-
    48 USC Sec. 1902                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1902. Agreements with Federated States of Micronesia

-STATUTE-
    (a) Law enforcement assistance
      (1) Agreement
        The President of the United States shall negotiate with the
      Government of the Federated States of Micronesia an agreement
      pursuant to section 175 of the Compact which is in addition to
      the Agreement pursuant to such section dated October 1, 1982, and
      transmitted to the Congress by the President on February 20,
      1985. Such additional agreement shall provide as follows:
        (A) Mutual assistance in law enforcement
          The law enforcement agencies of the United States and the
        Federated States of Micronesia shall assist one another, as
        mutually agreed, in the prevention and investigation of crimes
        and the enforcement of the laws of the United States and the
        Federated States of Micronesia specified in subparagraph (C) of
        this paragraph. The United States and the Federated States of
        Micronesia will authorize mutual assistance with respect to
        investigations, inquiries, audits and related activities by the
        law enforcement agencies of both Governments in the United
        States and the Federated States of Micronesia. In conducting
        activities authorized in accordance with this section, the
        United States and the Federated States of Micronesia will act
        in accordance with the constitution and laws of the
        jurisdiction in which such activities are conducted.
        (B) Narcotics and control of illegal substances
          The United States and the Federated States of Micronesia will
        take all reasonable and necessary steps, as mutually agreed,
        based upon consultations in which the Attorney General or other
        designated official of each Government participates, to prevent
        the use of the lands, waters, and facilities of the United
        States or the Federated States of Micronesia for the purposes
        of cultivation of, production of, smuggling of, trafficking in,
        and abuse of any controlled substance as defined in section
        802(6) of title 21 and Schedules I through V of Subchapter II
        of the Controlled Substances Act of the Federated States of
        Micronesia, or for the distribution of any such substance to or
        from the Federated States of Micronesia or to or from the
        United States or any of its territories or commonwealths.
        (C) Other criminal laws
          Assistance provided pursuant to this subsection shall also
        extend to, but not be limited to, prevention and prosecution of
        violations of the laws of the United States and the laws of the
        Federated States of Micronesia related to terrorism, espionage,
        racketeer influenced and corrupt organizations, and financial
        transactions which advance the interests of any person engaging
        in unlawful activities, as well as the schedule of offenses set
        forth in Appendix A of the subsidiary agreement to section 175
        of the Compact.
      (2) Technical and training assistance
        Pursuant to sections 224 and 226 of the 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 1905(l) of this title may be
      used to reimburse State or local agencies providing such
      assistance.
      (3) Consultation
        Any official, designated by this joint resolution or by the
      President to negotiate any agreement under this section, shall
      consult with affected law enforcement agencies prior to entering
      into such an agreement on behalf of the United States.
      (4) Report
        The President shall report annually to Congress on the
      implementation of this subsection. Such report shall provide
      statistical and other information about the incidence of crimes
      in the Federated States of Micronesia which have an impact upon
      United States jurisdictions, and propose measures which the
      United States and the Federated States of Micronesia should take
      in order better to prevent and prosecute violations of the laws
      of the United States and the Federated States of Micronesia. The
      reports required under section 2291(e) (!1) of title 22 shall
      include relevant information concerning the Federated States of
      Micronesia.

    (b) Economic development plans review process
      (1) Submission
        Notwithstanding section 211(b) of the Compact, the President
      may agree to an effective date for the Compact pursuant to
      section 1901(a) of this title if the Government of the Federated
      States of Micronesia agrees to submit economic development plans
      consistent with section 211(b) of the Compact to the Government
      of the United States for concurrence at intervals no greater than
      every 5 years for the duration of the Compact. Any capital
      construction project and any planned independent purchase of
      aircraft which is to be financed (directly or indirectly) through
      the use of funds provided under section 211 of the Compact shall
      be identified in the economic development plans.
      (2) United States Government review
        The United States shall not concur in those development plans
      described in paragraph (1) of this subsection until - 
          (A) after the President of the United States has conducted a
        review and reported the findings of the President to the
        Congress; and
          (B) the Congress has had 30 days (excluding days on which
        both Houses of Congress are not in session) to review the
        findings of the President.
      (3) Report
        The President shall complete the review under paragraph (2) and
      shall report the findings no later than 60 days after the
      President's receipt of such plans.
      (4) Views and comments
        The report shall include the views of the Secretary of the
      Interior, the Administrator of the Agency for International
      Development, and the heads of such other Executive departments as
      the President may decide to include in the report, as well as any
      comments which the Federated States of Micronesia may wish to
      have included.
    (c) Agreement on audits
      In accordance with section 233 of the Compact, the President of
    the United States, in consultation with the Comptroller General of
    the United States, shall negotiate with the Government of the
    Federated States of Micronesia modifications to the "Agreement
    Concerning Procedures for the Implementation of United States
    Economic Assistance, Programs and Services Provided in the Compact
    of Free Association", which shall provide as follows:
      (1) General authority of the GAO 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 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 233 of the 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) GAO 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 three years after the
      date such grant or assistance was provided and in a manner that
      permits such grants, assistance, and payments to be accounted for
      distinct from any other funds of the Government of the Federated
      States of Micronesia.
      (3) Representative status for GAO representatives
        The Comptroller General and his duly authorized representatives
      shall be accorded the status set forth in Article V of Title One
      of the Compact.
      (4) Annual financial statements
        As part of the annual report submitted by the Government of the
      Federated States of Micronesia under section 211 of the Compact,
      the Government shall include annual financial statements which
      account for the use of all of the funds provided by the
      Government of the United States to the Government under the
      Compact or otherwise. Such financial statements shall be prepared
      in accordance with generally accepted accounting procedures,
      except as may otherwise be mutually agreed. Not later than 180
      days after the end of the United States fiscal year with respect
      to which such funds were provided, each such statement shall be
      submitted to the President for audit and transmission to the
      Congress.
      (5) "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 Compact,
        or any related agreement entered into under the 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.
      (6) 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.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 102, Jan. 14, 1986, 99 Stat. 1775.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239, as
    amended, set out as a note under section 1901 of this title.
      This joint resolution, referred to in subsecs. (a)(3) and (c)(6),
    is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as amended, known
    as the Compact of Free Association Act of 1985, which is classified
    principally to this part and chapter 19 (Sec. 2001 et seq.) of this
    title. For complete classification of this Act to the Code, see
    Short Title note set out under section 1901 of this title and
    Tables.
      Section 2291(e) of title 22, referred to in subsec. (a)(4), was
    repealed and section 2291(i) of title 22, relating to definitions,
    was redesignated section 2291(e) by Pub. L. 102-583, Sec. 6(b)(2),
    (3), Nov. 2, 1992, 106 Stat. 4932. See sections 2291h and 2291i of
    Title 22, Foreign Relations and Intercourse.
      For Oct. 21, 1986, as the effective date of the Compact of Free
    Association with the Marshall Islands, and Nov. 3, 1986, as the
    effective date of the Compact of Free Association with the
    Federated States of Micronesia, referred to in subsec. (b)(1), see
    Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out as a note
    under section 1801 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                   TERMINATION OF REPORTING REQUIREMENTS               
      For termination, effective May 15, 2000, of provisions of law
    requiring submittal to Congress of any annual, semiannual, or other
    regular periodic report listed in House Document No. 103-7 (in
    which reports required under subsecs. (a)(4) and (c)(4) of this
    section are listed as the 12th and last items on page 37), see
    section 3003 of Pub. L. 104-66, as amended, set out as a note under
    section 1113 of Title 31, Money and Finance.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    48 USC Sec. 1903                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1903. Agreements with and other provisions related to Marshall
      Islands

-STATUTE-
    (a) Law enforcement assistance
      (1) Agreement
        The President of the United States shall negotiate with the
      Government of the Marshall Islands an agreement pursuant to
      section 175 of the Compact which is in addition to the Agreement
      pursuant to such section dated May 30, 1982, and transmitted to
      the Congress by the President on February 20, 1985. Such
      additional agreement shall provide as follows:
        (A) Mutual assistance in law enforcement
          The law enforcement agencies of the United States and the
        Marshall Islands shall assist one another, as mutually agreed,
        in the prevention and investigation of crimes and the
        enforcement of the laws of the United States and the Marshall
        Islands specified in subparagraph (C) of this paragraph. The
        United States and the Marshall Islands will authorize mutual
        assistance with respect to investigations, inquiries, audits
        and related activities by the law enforcement agencies of both
        Governments in the United States and the Marshall Islands. In
        conducting activities authorized in accordance with this
        section, the United States and the Marshall Islands will act in
        accordance with the constitution and laws of the jurisdiction
        in which such activities are conducted.
        (B) Narcotics and control of illegal substances
          The United States and the Marshall Islands will take all
        reasonable and necessary steps, as mutually agreed, based upon
        consultations in which the Attorney General or other designated
        official of each Government participates, to prevent the use of
        the lands, waters, and facilities of the United States or the
        Marshall Islands for the purposes of cultivation of, production
        of, smuggling of, trafficking in, and abuse of any controlled
        substance as defined in section 802(6) of title 21 and
        Schedules I through V of Subchapter II of the Controlled
        Substances Act of the Marshall Islands, or for the distribution
        of any such substance to or from the Marshall Islands or to or
        from the United States or any of its territories or
        commonwealths.
        (C) Other criminal laws
          Assistance provided pursuant to this subsection shall also
        extend to, but not be limited to, prevention and prosecution of
        violations of the laws of the United States and the laws of the
        Marshall Islands related to terrorism, espionage, racketeer
        influenced and corrupt organizations, and financial
        transactions which advance the interests of any person engaging
        in unlawful activities, as well as the schedule of offenses set
        forth in Appendix A of the subsidiary agreement to section 175
        of the Compact.
      (2) Technical and training assistance
        Pursuant to sections 224 and 226 of the 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 1905(l) of
      this title may be used to reimburse State or local agencies
      providing such assistance.
      (3) Consultation
        Any official, designated by this joint resolution or by the
      President to negotiate any agreement under this section, shall
      consult with affected law enforcement agencies prior to entering
      into such an agreement on behalf of the United States.
      (4) Report
        The President shall report annually to Congress on the
      implementation of this subsection. Such report shall provide
      statistical and other information about the incidence of crimes
      in the Marshall Islands which have an impact upon United States
      jurisdictions, and propose measures which the United States and
      the Marshall Islands should take in order better to prevent and
      prosecute violations of the laws of the United States and the
      Marshall Islands. The reports required under section 2291(e) (!1)
      of title 22 shall include relevant information concerning the
      Marshall Islands.

    (b) Economic development plans review process
      (1) Submission
        Notwithstanding section 211(b) of the Compact, the President
      may agree to an effective date for the Compact pursuant to
      section 1901(b) of this title if the Government of the Marshall
      Islands agrees to submit economic development plans consistent
      with section 211(b) of the Compact to the Government of the
      United States for concurrence at intervals no greater than every
      5 years for the duration of the Compact. Any capital construction
      project and any planned independent purchase of aircraft which is
      to be financed (directly or indirectly) through the use of funds
      provided under section 211 of the Compact shall be identified in
      the economic development plans.
      (2) United States Government review
        The United States shall not concur in those development plans
      described in paragraph (1) of this subsection until - 
          (A) after the President of the United States has conducted a
        review and reported the findings of the President to the
        Congress; and
          (B) the Congress has had 30 days (excluding days on which
        both Houses of Congress are not in session) to review the
        findings of the President.
      (3) Report
        The President shall complete the review under paragraph (2) and
      shall report the findings no later than 60 days after the
      President's receipt of such plans.
      (4) Views and comments
        The report shall include the views of the Secretary of the
      Interior, the Administrator of the Agency for International
      Development, and the heads of such other Executive departments as
      the President may decide to include in the report, as well as any
      comments which the Marshall Islands may wish to have included.
    (c) Ejit
      (1) The President of the United States shall negotiate with the
    Government of the Marshall Islands an agreement whereby, without
    prejudice as to any claims which have been or may be asserted by
    any party as to rightful title and ownership of any lands on Ejit,
    the Government of the Marshall Islands shall assure that lands on
    Ejit used as of January 1, 1985, by the people of Bikini, will
    continue to be available without charge for their use, until such
    time as Bikini is restored and inhabitable and the continued use of
    Ejit is no longer necessary, unless a Marshall Islands court of
    competent jurisdiction finally determines that there are legal
    impediments to continued use of Ejit by the people of Bikini.
      (2) 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) 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.
    (d) Kwajalein payments
      (1) Statement of policy
        The Congress of the United States hereby declares that 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, and the related allocation agreements, is required in order
      to ensure that the Government of the United States will be able
      to fulfill its obligations and responsibilities under Title Three
      of the Compact and the subsidiary agreements concluded pursuant
      thereto.
      (2) Failure to pay
        In the event that the Government of the Marshall Islands fails
      to make payments in accordance with paragraph (1) of this
      subsection, the Government of the United States shall initiate
      procedures under Section 313 of the Compact and consult with the
      Government of the Marshall Islands with respect to the basis for
      such non-payment of funds. The United States shall expeditiously
      resolve the matter of any non-payment of funds as described in
      paragraph (1) of this subsection pursuant to Section 313 of the
      Compact and the authority and responsibility of the Government of
      the United States for security and defense matters in or relating
      to the Marshall Islands. This paragraph shall be enforced, as may
      be necessary, in accordance with section 1905(g)(2) of this
      title.
      (3) Assistance
        The President is hereby authorized to make loans and grants to
      the Government of the Marshall Islands for the sole use of the
      Kwajalein Atoll Development Authority for the benefit of the
      Kwajalein landowners of amounts sought by such authority for
      development purposes, pursuant to a development plan for
      Kwajalein Atoll which such authority has adopted in accordance
      with applicable laws of the Marshall Islands. Such loans and
      grants shall be subject to such other terms and conditions as the
      President, in his discretion, may determine appropriate and
      necessary.
    (e) Section 177 Agreement
      (1) 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 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) If the Government of the Marshall Islands determines that
    some other investment firm should act as Fund Manager in place of
    the firm first (or subsequently) selected by such Government, the
    Government of the Marshall Islands shall so notify the President of
    the United States, identifying the firm selected by such Government
    to become Fund Manager, and the President shall proceed to evaluate
    the qualifications of such identified firm.
      (4) 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.
      (5) An annual report concerning all actions of the Fund Manager
    pursuant to the Section 177 Agreement and this joint resolution,
    including information prepared by the Fund Manager, shall be
    transmitted by the Government of the Marshall Islands to the
    Congress. Such report shall include such information (whether
    received from the Fund Manager or any other source) as relates to
    the disbursements provided for in Article II of the Section 177
    Agreement. Such report shall be made public.
    (f) Nuclear test effects
      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),(!2) $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.

    (g) Espousal provisions
      (1) 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 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.
    (h) 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 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 174 members of the population of Rongelap and Utrik
      who were exposed to radiation resulting from the 1954 United
      States thermonuclear "Bravo" test, pursuant to Public Laws 95-134
      and 96-205. Such medical care and its accompanying logistical
      support shall total $22,500,000 over the first 11 years of the
      Compact.
      (2) Agricultural and food programs
        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 - 
          (A) without reimbursement, to continue the planting and
        agricultural maintenance program on Enewetak;
          (B) without reimbursement, to continue the food programs of
        the Bikini, Rongelap, Utrik, 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. The President shall ensure the assistance
        provided under these programs reflects the changes in the
        population since the inception of such programs.
      (3) Payments
        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.
    (i) Rongelap
      (1) Because Rongelap was directly affected by fallout from a 1954
    United States thermonuclear test and because the Rongelap people
    remain unconvinced that it is safe to continue to live on Rongelap
    Island, it is the intent of Congress to take such steps (if any) as
    may be necessary to overcome the effects of such fallout on the
    habitability of Rongelap Island, and to restore Rongelap Island, if
    necessary, so that it can be safely inhabited. Accordingly, it is
    the expectation of the Congress that the Government of the Marshall
    Islands shall use such portion of the funds specified in Article
    II, section 1(e) of the subsidiary agreement for the implementation
    of section 177 of the Compact as are necessary for the purpose of
    contracting with a qualified scientist or group of scientists to
    review the data collected by the Department of Energy relating to
    radiation levels and other conditions on Rongelap Island resulting
    from the thermonuclear test. It is the expectation of the Congress
    that the Government of the Marshall Islands, after consultation
    with the people of Rongelap, shall select the party to review such
    data, and shall contract for such review and for submission of a
    report to the President of the United States and the Congress as to
    the results thereof.
      (2) 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) 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.
    (j) Four atoll health care program
      (1) 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 and
    Public Law 96-205 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) 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) 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.
    (k) Enjebi Community Trust Fund
      Notwithstanding any other provision of law, the Secretary of the
    Treasury shall establish on the books of the Treasury of the United
    States a fund having the status specified in Article V of the
    subsidiary agreement for the implementation of Section 177 of the
    Compact, to be known as the "Enjebi Community Trust Fund"
    (hereafter in this subsection referred to as the "Fund"), and shall
    credit to the Fund the amount of $7,500,000. Such amount, which
    shall be ex gratia, shall be in addition to and not charged against
    any other funds provided for in the Compact and its subsidiary
    agreements, this joint resolution, or any other Act. Upon receipt
    by the President of the United States of the agreement described in
    this subsection, the Secretary of the Treasury, upon request of the
    Government of the Marshall Islands, shall transfer the Fund to the
    Government of the Marshall Islands, provided that the Government of
    the Marshall Islands agrees as follows:
      (1) Enjebi trust agreement
        The Government of the Marshall Islands and the Enewetak Local
      Government Council, in consultation with the people of Enjebi,
      shall provide for the creation of the Enjebi Community Trust Fund
      and the employment of the manager of the Enewetak Fund
      established pursuant to the Section 177 Agreement as trustee and
      manager of the Enjebi Community Trust Fund, or, should the
      manager of the Enewetak Fund not be acceptable to the people of
      Enjebi, another United States investment manager with substantial
      experience in the administration of trusts and with funds under
      management in excess of 250 million dollars.
      (2) Monitor conditions
        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 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 event that the United States determines that within 25
      years of January 14, 1986, the people of Enjebi cannot resettle
      Enjebi without exceeding the radiation standards set forth in
      paragraph (2) of this subsection, then the fund manager shall be
      directed by the trust instrument to distribute the Fund to the
      people of Enjebi for their resettlement at some other location in
      accordance with a plan, developed by the Enewetak Local
      Government Council and the people of Enjebi and concurred with by
      the Government of the Marshall Islands, to assure consistency
      with the government's overall economic development plan.
      (5) Interest from Fund
        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
        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.
    (l) Bikini Atoll cleanup
      (1) Declaration of policy
        The Congress hereby determines and declares 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 paragraphs (2) and (3) of this
      subsection.
      (2) Cleanup funds
        There are hereby authorized to be appropriated such sums as are
      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
        The funds referred to in paragraph (2) shall 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.
    (m) Agreement on audits
      In accordance with section 233 of the Compact, the President of
    the United States, in consultation with the Comptroller General of
    the United States, shall negotiate with the Government of the
    Marshall Islands an agreement which shall provide as follows:
      (1) General authority of GAO 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 Marshall Islands under
        Articles I and II of Title Two of the Compact; and
          (ii) any other assistance provided by the Government of the
        United States to the Government of the Marshall Islands.

      Such authority shall include authority for the Comptroller
      General to conduct or cause to be conducted any of the audits
      provided for in section 233 of the 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) GAO 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 three years after the
      date such grant or assistance was provided and in a manner that
      permits such grants, assistance, and payments to be accounted for
      distinct from any other funds of the Government of the Marshall
      Islands.
      (3) Representative status for GAO representatives
        The Comptroller General and his duly authorized representatives
      shall be accorded the status set forth in Article V of Title One
      of the Compact.
      (4) Annual financial statements
        As part of the annual report submitted by the Government of the
      Marshall Islands under section 211 of the Compact, the Government
      shall include annual financial statements which account for the
      use of all of the funds provided by the Government of the United
      States to the Government under the Compact or otherwise. Such
      financial statements shall be prepared in accordance with
      generally accepted accounting procedures, except as may otherwise
      be mutually agreed. Not later than 180 days after the end of the
      United States fiscal year with respect to which such funds were
      provided, each such statement shall be submitted to the President
      for audit and transmission to the Congress.
      (5) "Audits" defined
        As used in this subsection, the term "audits" includes
      financial, program, and management audits, including determining -
       
          (A) whether the Government of the Marshall Islands has met
        the requirements set forth in the Compact, or any related
        agreement entered into under the 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 Marshall Islands pursuant to such grants or
        assistance.
      (6) Cooperation by Marshall Islands
        The Government 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.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 103, Jan. 14, 1986, 99 Stat. 1778;
    Pub. L. 100-446, title I, Sec. 115, Sept. 27, 1988, 102 Stat. 1802;
    Pub. L. 102-247, title III, Sec. 304, Feb. 24, 1992, 106 Stat. 39;
    Pub. L. 105-209, Sec. 2, July 29, 1998, 112 Stat. 880.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239, as
    amended, set out as a note under section 1901 of this title.
      This joint resolution, referred to in subsecs. (a)(3), (e)(5),
    (k), and (m)(6), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770,
    as amended, known as the Compact of Free Association Act of 1985,
    which is classified principally to this part and chapter 19 (Sec.
    2001 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 1901 of
    this title and Tables.
      Section 2291(e) of title 22, referred to in subsec. (a)(4), was
    repealed and section 2291(i) of title 22, relating to definitions,
    was redesignated section 2291(e) by Pub. L. 102-583, Sec. 6(b)(2),
    (3), Nov. 2, 1992, 106 Stat. 4932. See sections 2291h and 2291i of
    Title 22, Foreign Relations and Intercourse.
      For Oct. 21, 1986, as the effective date of the Compact of Free
    Association with the Marshall Islands, and Nov. 3, 1986, as the
    effective date of the Compact of Free Association with the
    Federated States of Micronesia, referred to in subsecs. (b)(1),
    (e)(4), (h)(2), and (j)(2), (3), see Proc. No. 5564, Nov. 3, 1986,
    51 F.R. 40399, set out as a note under section 1801 of this title.
      Public Law 95-134, referred to in subsecs. (h)(1) and (j)(1), is
    Pub. L. 95-134, Oct. 15, 1977, 91 Stat. 1159, as amended, popularly
    known as the Omnibus Territories Act of 1977. For complete
    classification of this Act to the Code, see Tables.
      Public Law 96-205, referred to in subsecs. (h)(1) and (j)(1), is
    Pub. L. 96-205, Mar. 12, 1980, 94 Stat. 84, as amended. For
    complete classification of this Act to the Code, see Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (h)(2). Pub. L. 105-209, Sec. 2(1), substituted
    "fifteen years" for "ten years" in introductory provisions.
      Subsec. (h)(2)(B). Pub. L. 105-209, Sec. 2(2), inserted at end
    "The President shall ensure the assistance provided under these
    programs reflects the changes in the population since the inception
    of such programs."
      1992 - Subsec. (h)(2). Pub. L. 102-247 substituted "ten years"
    for "five years" in introductory provisions.
      1988 - Subsec. (h)(2). Pub. L. 100-446, in introductory
    provisions, inserted "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" after "United States firm" and, in subpar. (B), inserted
    ", Rongelap, Utrik," after "Bikini".

                   TERMINATION OF REPORTING REQUIREMENTS               
      For termination, effective May 15, 2000, of provisions of law
    requiring submittal to Congress of any annual, semiannual, or other
    regular periodic report listed in House Document No. 103-7 (in
    which reports required under subsecs. (a)(4), (e)(5), and (m)(4) of
    this section are listed, respectively, as the 2nd item on page 38,
    the 16th item on page 115, and the 12th item on page 37), see
    section 3003 of Pub. L. 104-66, as amended, set out as a note under
    section 1113 of Title 31, Money and Finance.

               TAX EXEMPTION FOR ENJEBI COMMUNITY TRUST FUND           
      Pub. L. 100-647, title VI, Sec. 6136, Nov. 10, 1988, 102 Stat.
    3723, provided that:
      "(a) In General. - Any earnings on, and distributions from, the
    Enjebi Community Trust Fund created under section 103 of the
    Compact of Free Association Act of 1985 [48 U.S.C. 1903] shall be
    exempt from all Federal, State, or local taxation.
      "(b) Effective Date. - The provisions of subsection (a) shall
    apply to all taxable years whether beginning before, on, or after
    the date of the enactment of this Act [Nov. 10, 1988]."

         MEDICAL CARE AND TREATMENT AND ENVIRONMENTAL RESEARCH AND
      MONITORING PROGRAM FOR INHABITANTS OF BIKINI, ETC., ATOLLS FOR
       INJURY, ILLNESS, OR CONDITION RESULTING FROM NUCLEAR WEAPONS
         TESTING BY UNITED STATES; IMPLEMENTATION PLAN AND REPORT
      Pub. L. 95-134, title I, Sec. 106, as added by Pub. L. 96-205,
    title I, Sec. 102, Mar. 12, 1980, 94 Stat. 84; amended by Pub. L.
    96-88, title V, Sec. 509(b), Oct. 17, 1979, 93 Stat. 695, provided
    that:
      "(a) In addition to any other payments or benefits provided by
    law to compensate inhabitants of the atolls of Bikini, Enewetak,
    Rongelap, and Utirik, in the Marshall Islands, for radiation
    exposure or other losses sustained by them as a result of the
    United States nuclear weapons testing program at or near their
    atolls during the period 1946 to 1958, the Secretary of the
    Interior (hereinafter in this section referred to as the
    'Secretary') shall provide for the people of the atolls of Bikini,
    Enewetak, Rongelap, and Utirik and for the people of such other
    atolls as may be found to be or to have been exposed to radiation
    from the nuclear weapons testing program, a program of medical care
    and treatment and environmental research and monitoring for any
    injury, illness, or condition which may be the result directly or
    indirectly of such nuclear weapons testing program. The program
    shall be implemented according to a plan developed by the Secretary
    in consultation with the Secretaries of Defense, Energy, and Health
    and Human Services and with the direct involvement of
    representatives from the people of each of the affected atolls and
    from the government of the Marshall Islands. The plan shall set
    forth, as appropriate to the situation, condition, and needs of the
    individual atoll peoples:
        "(1) an integrated, comprehensive health care program including
      primary, secondary, and tertiary care with special emphasis upon
      the biological effects of ionizing radiation;
        "(2) a schedule for the periodic comprehensive survey and
      analysis of the radiological status of the atolls to and at
      appropriate intervals, but not less frequently than once every
      five years, the development of an updated radiation dose
      assessment, together with an estimate of the risks associated
      with the predicted human exposure, for each such atoll; and
        "(3) an education and information program to enable the people
      of such atolls to more fully understand nuclear radiation and its
      effects;
      "(b)(1) The Secretary shall submit the plan to the Congress no
    later than January 1, 1981, together with his recommendations, if
    any, for further legislation. The plan shall set forth the specific
    agencies responsible for implementing the various elements of the
    plan. With respect to general health care the Secretary shall
    consider, and shall include in his recommendations, the feasibility
    of using the Public Health Service. After consultation with the
    Chairman of the National Academy of Sciences, the Secretary of
    Energy, the Secretary of Defense, and the Secretary of Health and
    Human Services, the Secretary shall establish a scientific advisory
    committee to review and evaluate the implementation of the plan and
    to make such recommendations for its improvement as such committee
    deems advisable.
      "(2) At the request of the Secretary, any Federal agency shall
    provide such information, personnel, facilities, logistical
    support, or other assistance as the Secretary deems necessary to
    carry out the functions of this program; the costs of all such
    assistance shall be reimbursed to the provider thereof out of the
    sums appropriated pursuant to this section.
      "(3) All costs associated with the development and implementation
    of the plan shall be assumed by the Secretary of Energy and
    effective October 1, 1980, there are authorized to be appropriated
    to the Secretary of Energy such sums as may be necessary to achieve
    the purposes of this section.
      "(c) The Secretary shall report to the appropriate committees of
    the Congress, and to the people of the affected atolls annually, or
    more frequently if necessary, on the implementation of the plan.
    Each such report shall include a description of the health status
    of the individuals examined and treated under the plan, an
    evaluation by the scientific advisory committee, and any
    recommendations for improvement of the plan. The first such report
    shall be submitted not later than January 1, 1982."

      Pub. L. 98-213, Sec. 8, Dec. 8, 1983, 97 Stat. 1460, provided
    that: "The Secretary of the Interior is directed to implement the
    health care program required by section 106 of Public Law 95-134
    (91 Stat. 1159) [set out above] for the populations of the four
    atolls in the Marshall Islands identified in such section
    immediately upon enactment of this section and shall promptly
    notify the Committee on Interior and Insular Affairs and the
    Committee on Appropriations of the House of Representatives and the
    Committee on Energy and Natural Resources and the Committee on
    Appropriations of the Senate if he finds that the populations of
    other atolls should be included in the program setting forth the
    basis for his finding and the estimated cost of extension of the
    program. The Secretary of Energy shall transmit annually to the
    Committees on Interior and Insular Affairs [now Committee on
    Resources] and Appropriations of the House of Representatives and
    the Committees on Energy and Natural Resources and Appropriations
    of the Senate together with the proposed budget for the next fiscal
    year, a description of the program and the estimated costs for
    implementation together with any recommendations which he may have
    for improvements in such program."

-FOOTNOTE-
    (!1) See References in Text note below.

    (!2) So in original. The comma probably should be a semicolon.


-End-



-CITE-
    48 USC Sec. 1904                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1904. Interpretation of and United States policy regarding
      Compact of Free Association

-STATUTE-
    (a) Human rights
      In approving the Compact, the Congress notes the conclusion in
    the Statement of Intent of the Report of The Future Political
    Status Commission of the Congress of Micronesia in July, 1969, that
    "our recommendation of a free associated state is indissolubly
    linked to our desire for such a democratic, representative,
    constitutional government" and notes that such desire and intention
    are reaffirmed and embodied in the Constitutions of the Federated
    States of Micronesia and the Marshall Islands. The Congress also
    notes and specifically endorses the preamble to the Compact, which
    affirms that the governments of the parties to the Compact are
    founded upon respect for human rights and fundamental freedoms for
    all. The Secretary of State shall include in the annual reports on
    the status of internationally recognized human rights in foreign
    countries, which are submitted to the Congress pursuant to sections
    116 and 502B of the Foreign Assistance Act of 1961 [22 U.S.C.
    2151n, 2304], a full and complete report regarding the status of
    internationally recognized human rights in the Federated States of
    Micronesia and the Marshall Islands.
    (b) Immigration
      The rights of a bona fide naturalized citizen of the Marshall
    Islands or the Federated States of Micronesia to enter the United
    States, to lawfully engage therein in occupations, and to establish
    residence therein as a non-immigrant, pursuant to the provisions of
    section 141(a)(3) of the Compact, shall not 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.
    (c) Nonalienation of lands
      The Congress endorses and encourages the maintenance of the
    policies of the Government of the Federated States of Micronesia
    and the Government of the Marshall Islands to regulate, in
    accordance with their Constitutions and laws, the alienation of
    permanent and long-term interests in real property so as to
    restrict the acquisition of such interests to persons of Federated
    States of Micronesia citizenship and Marshall Islands citizenship,
    respectively.
    (d) Nuclear waste disposal
      In approving the Compact, the Congress understands that the
    Government of the Federated States of Micronesia and the Government
    of the Marshall Islands will not permit any other government or any
    nongovernmental party to conduct, in the Marshall Islands or in the
    Federated States of Micronesia, any of the activities specified in
    subsection (a) of section 314 of the Compact.
    (e) Impact of Compact on U.S. areas
      (1) Statement of congressional intent
        In approving the Compact, it is not the intent of the Congress
      to cause any adverse consequences for the United States
      territories and commonwealths or the State of Hawaii.
      (2) Annual reports and recommendations
        One year after January 14, 1986, and at one year intervals
      thereafter, the Governor of any of the United States territories
      or commonwealths or the State of Hawaii may report to the
      Secretary of the Interior by February 1 of each year with respect
      to the impacts of the compacts of free association on the
      Governor's respective jurisdiction. The Secretary of the Interior
      shall review and forward any such reports to the Congress with
      the comments of the Administration. The Secretary of the Interior
      shall, either directly or, subject to available technical
      assistance funds, through a grant to the affected jurisdiction,
      provide for a census of Micronesians at intervals no greater than
      5 years from each decennial United States census using generally
      acceptable statistical methodologies for each of the impact
      jurisdictions where the Governor requests such assistance, except
      that the total expenditures to carry out this sentence may not
      exceed $300,000 in any year. Reports submitted pursuant to this
      paragraph (hereafter in this subsection referred to as "reports")
      shall identify any adverse consequences resulting from the
      Compact and shall make recommendations for corrective action to
      eliminate those consequences. The reports shall pay particular
      attention to matters relating to trade, taxation, immigration,
      labor laws, minimum wages, social systems and infrastructure, and
      environmental regulation. With regard to immigration, the reports
      shall include 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. With regard
      to trade, the reports shall include an analysis of the impact on
      the economy of American Samoa resulting from imports of canned
      tuna into the United States from the Federated States of
      Micronesia and the Marshall Islands.
      (3) Other views
        In preparing the reports, the President shall request the views
      of the Government of the State of Hawaii, and the governments of
      each of the United States territories and commonwealths, the
      Federated States of Micronesia, the Marshall Islands, and Palau,
      and shall transmit the full text of any such views to the
      Congress as part of such reports.
      (4) Commitment of Congress to redress adverse consequences
        The Congress hereby declares that, if any adverse consequences
      to United States territories and commonwealths or the State of
      Hawaii result from implementation of the Compact of Free
      Association, the Congress will act sympathetically and
      expeditiously to redress those adverse consequences.
      (5) "United States territories and commonwealths" defined
        As used in this subsection, the term "United States territories
      and commonwealths" means the Commonwealth of Puerto Rico, the
      Virgin Islands, Guam, American Samoa, and the Commonwealth of the
      Northern Mariana Islands.
      (6) Impact costs
        There are hereby authorized to be appropriated for fiscal years
      beginning after September 30, 1985, such sums as may be necessary
      to cover the costs, if any, incurred by the State of Hawaii, the
      territories of Guam and American Samoa, and the Commonwealth of
      the Northern Mariana Islands resulting from any increased demands
      placed on educational and social services by immigrants from the
      Marshall Islands and the Federated States of Micronesia.
    (f) Fisheries management
      In clarification of Title One, Article II, section 121(b)(1) of
    the Compact:
        (1) Nothing in the Compact or this joint resolution shall be
      interpreted as recognition by the United States of any claim by
      the Federated States of Micronesia or by the Marshall Islands to
      jurisdiction or authority over highly migratory species of fish
      during the time such species of fish are found outside the
      territorial sea of the Federated States of Micronesia or the
      Marshall Islands.
        (2) It is the understanding of Congress that none of the monies
      made available pursuant to the Compact or this joint resolution
      will be used by either the Federated States of Micronesia or the
      Marshall Islands for enforcement actions against any vessel of
      the United States on the basis of fishing by any such vessel for
      highly migratory species of fish outside the territorial sea of
      the Federated States of Micronesia or the Marshall Islands,
      respectively, in the absence of a licensing agreement.
        (3) Appropriate United States officials shall apply the
      policies and provisions of the Magnuson-Stevens Fishery
      Conservation and Management Act (16 U.S.C. 1801 et seq.) and the
      Fishermen's Protective Act of 1967 (22 U.S.C. 1971 et seq.) with
      regard to any action taken by the Federated States of Micronesia
      or the Marshall Islands affecting any vessel of the United States
      engaged in fishing for highly migratory species of fish in waters
      outside the territorial seas of the Federated States of
      Micronesia or the Marshall Islands, respectively. For the purpose
      of applying the provisions of section 5 of the Fishermen's
      Protective Act of 1967 (22 U.S.C. 1975), monies made available to
      either the Federated States of Micronesia or the Marshall Islands
      pursuant to the provisions of the Compact or this joint
      resolution shall be treated as "assistance to the government of
      such country under the Foreign Assistance Act of 1961" [22 U.S.C.
      2151 et seq.]. For purposes of this Act only, certification by
      the President in accordance with such section 5 shall be
      accompanied by a report to Congress on the basis for such
      certification, and such certification shall have no effect if by
      law Congress so directs prior to the expiration of 60 days during
      which Congress is in continuous session following the date of
      such certification.
        (4) For the purpose of paragraphs (1) and (3) of this
      subsection - 
          (A) The term "vessel of the United States" has the same
        meaning as provided in the first section of the Fishermen's
        Protective Act of 1967 (22 U.S.C. 1971).
          (B) The terms "fishing" and "highly migratory species" have
        the same meanings as provided in paragraphs (10) and (14),(!1)
        respectively, of section 3 of the Magnuson-Stevens Fishery
        Conservation and Management Act (16 U.S.C. 1802(10) and (14)).


        (5)(A) It is the policy of the United States of America - 
          (i) to negotiate and conclude with the governments of the
        Central, Western, and South Pacific Ocean, including the
        Federated States of Micronesia and the Marshall Islands, a
        regional licensing agreement setting forth agreed terms of
        access for United States tuna vessels fishing in the region;
        and
          (ii) that such an agreement should overcome existing
        jurisdictional differences and provide for a mutually
        beneficial relationship between the United States and the
        Pacific Island States that will promote the development of the
        tuna and other latent fisheries resources of the Central,
        Western, and South Pacific Ocean and the economic development
        of the region.

        (B) At such time as an agreement referred to in subparagraph
      (A) is submitted to the Senate for advice and consent to
      ratification, the Secretary of State, after consultation with the
      Secretary of Commerce and other interested agencies and concerned
      governments, shall submit to the Congress a proposed long term
      regional fisheries development program which may include, but not
      be limited to - 
          (i) exploration for, and stock assessment of, tuna and other
        fish;
          (ii) improvement of harvesting techniques;
          (iii) gear development;
          (iv) biological resource monitoring;
          (v) education and training in the field of fisheries; and
          (vi) regional and direct bilateral assistance in the field of
        fisheries.
    (g) Foreign loans
      The Congress hereby reaffirms the United States position that the
    United States Government is not responsible for foreign loans or
    debt obtained by the Governments of the Federated States of
    Micronesia and the Marshall Islands.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 104, Jan. 14, 1986, 99 Stat. 1788;
    Pub. L. 104-208, div. A, title I, Sec. 101(a) [title II, Sec.
    211(b)], Sept. 30, 1996, 110 Stat. 3009, 3009-41; Pub. L. 106-504,
    Sec. 2, Nov. 13, 2000, 114 Stat. 2311.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239, as
    amended, set out as a note under section 1901 of this title.
      This joint resolution and this Act, referred to in subsec. (f)(1)
    to (3), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as
    amended, known as the Compact of Free Association Act of 1985,
    which is classified principally to this part and chapter 19 (Sec.
    2001 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 1901 of
    this title and Tables.
      The Magnuson-Stevens Fishery Conservation and Management Act,
    referred to in subsec. (f)(3), is Pub. L. 94-265, Apr. 13, 1976, 90
    Stat. 331, as amended, which is classified principally to chapter
    38 (Sec. 1801 et seq.) of Title 16, Conservation. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1801 of Title 16 and Tables.
      The Fishermen's Protective Act of 1967, referred to in subsec.
    (f)(3), is act Aug. 27, 1954, ch. 1018, 68 Stat. 883, as amended,
    which is classified generally to chapter 25 (Sec. 1971 et seq.) of
    Title 22, Foreign Relations and Intercourse. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1971 of Title 22 and Tables.
      The Foreign Assistance Act of 1961, referred to in subsec.
    (f)(3), is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended,
    which is classified principally to chapter 32 (Sec. 2151 et seq.)
    of Title 22. For complete classification of this Act to the Code,
    see Short Title note set out under section 2151 of Title 22 and
    Tables.
      Section 3 of the Magnuson-Stevens Fishery Conservation and
    Management Act [16 U.S.C. 1802], referred to in subsec. (f)(4)(B),
    was subsequently amended, and section 3(10) and (14) no longer
    define the terms "fishing" and "highly migratory species". However,
    such terms are defined elsewhere in that section.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (e)(2). Pub. L. 106-504 substituted "Governor of
    any of the United States territories or commonwealths or the State
    of Hawaii may report to the Secretary of the Interior by February 1
    of each year with respect to the impacts of the compacts of free
    association on the Governor's respective jurisdiction. The
    Secretary of the Interior shall review and forward any such reports
    to the Congress with the comments of the Administration. The
    Secretary of the Interior shall, either directly or, subject to
    available technical assistance funds, through a grant to the
    affected jurisdiction, provide for a census of Micronesians at
    intervals no greater than 5 years from each decennial United States
    census using generally acceptable statistical methodologies for
    each of the impact jurisdictions where the Governor requests such
    assistance, except that the total expenditures to carry out this
    sentence may not exceed $300,000 in any year." for "President shall
    report to the Congress with respect to the impact of the Compact on
    the United States territories and commonwealths and on the State of
    Hawaii.".
      1996 - Subsec. (f)(3), (4)(B). Pub. L. 104-208 substituted
    "Magnuson-Stevens Fishery" for "Magnuson Fishery".

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Section 101(a) [title II, Sec. 211(b)] of div. A of Pub. L. 104-
    208 provided that the amendment made by that section is effective
    15 days after Oct. 11, 1996.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    48 USC Sec. 1905                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1905. Supplemental provisions

-STATUTE-
    (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 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 Federated States of Micronesia and Marshall
      Islands
      (1) The United States representatives to the Federated States of
    Micronesia and the Republic of the Marshall Islands pursuant to
    Article V of title I of the Compact shall be appointed by the
    President with the advice and consent of the Senate, and shall be
    under the supervision of the Secretary of State, who shall have
    responsibility for government to government relations between the
    United States and the Government with respect to whom they are
    appointed, consistent with the authority of the Secretary of the
    Interior as set forth in this section.
      (2) Except for programs or services provided by or through other
    federal agencies or officials to the Federated States of Micronesia
    or the Republic of the Marshall Islands, or for which residents
    thereof are eligible pursuant to the Compact or any other provision
    of this joint resolution, appropriations made pursuant to the
    Compact or any other provision of this joint resolution may be made
    only to the Secretary of the Interior. The Secretary of the
    Interior shall coordinate and monitor any programs or activities,
    including such activities for which funding is made directly to
    such other agencies, provided to the Federated States of Micronesia
    or the Republic of the Marshall Islands by agencies of the
    Government of the United States and related economic development
    planning pursuant to the Compact or pursuant to any other
    authorization except for the provisions of sections 161(e), 313,
    and 351 of the Compact and the authorization of the President to
    agree to an effective date pursuant to this resolution. Funds
    appropriated to the Secretary of the Interior pursuant to this
    paragraph shall not be allocated to other Departments or agencies,
    except that the Secretary of the Interior shall be able to
    reimburse Departments or agencies for purposes authorized by this
    joint resolution.
      (3) All programs and services provided to the Federated States of
    Micronesia and the Republic of the Marshall Islands by Federal
    agencies may be provided only after consultation with and under the
    supervision of the Secretary of the Interior, and the head of each
    Federal agency is directed to cooperate with the Secretary of the
    Interior and to make such personnel and services available as the
    Secretary of the Interior may request.
      (4) Any United States Government personnel assigned, on a
    temporary or permanent basis, to either the Federated States of
    Micronesia or the Marshall Islands shall, during the period of such
    assignment, be subject to the supervision of the United States
    representative to that area.
      (5) The President is hereby authorized to appoint an Interagency
    Group on Freely Associated States' Affairs to provide policy
    guidance to federal departments and agencies. Such interagency
    group shall include the Secretary of the Interior and the Secretary
    of State.
    (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 Marshall Islands for the following purposes:
        (1) Prior to October 1, 1986, for any purpose authorized by the
      Compact or this joint resolution.
        (2) Transition purposes, including but not limited to,
      completion of projects and fulfillment of commitments or
      obligations; termination of the Trust Territory Government and
      termination of the High Court; health and education as a result
      of exceptional circumstances; ex gratia contributions for the
      populations of Bikini, Enewetak, Rongelap, and Utrik; and
      technical assistance and training in financial management,
      program administration, and maintenance of infrastructure, except
      that, for purposes of an orderly reduction of United States
      programs and services in the Federated States of Micronesia, the
      Marshall Islands, and Palau, United States programs or services
      not specifically authorized by the Compact of Free Association or
      by other provisions of law may continue but, unless reimbursed by
      the respective freely associated state, not in excess of the
      following amounts:
          (1) For fiscal year 1987, an amount not to exceed 75 per
        centum of the total amount appropriated for such programs for
        fiscal year 1986;
          (2) For fiscal year 1988, an amount not to exceed 50 per
        centum of the total amount appropriated for such programs for
        fiscal year 1986;
          (3) For fiscal year 1989, an amount not to exceed 25 per
        centum of the total amount appropriated for such programs for
        fiscal year 1986.
    (d) Medical referral debts
      (1) Federated States of Micronesia
        In addition to the funds provided in Title Two, Article II,
      section 221(b) of the Compact, following approval of the Compact
      with respect to the Federated States of Micronesia, the United
      States shall make available to the Government of the Federated
      States of Micronesia such sums as may be necessary for the
      payment of the obligations incurred for the use of medical
      facilities in the United States, including any territories and
      commonwealths, by citizens of the Federated States of Micronesia
      before September 1, 1985.
      (2) Marshall Islands
        In addition to the funds provided in Title Two, Article II,
      section 221(b) of the Compact, following approval of the Compact
      with respect to the Marshall Islands, the United States shall
      make available to the Government of the Marshall Islands such
      sums as may be necessary for the payment of the obligations
      incurred for the use of medical facilities in the United States,
      its territories and commonwealths by citizens of the Marshall
      Islands before September 1, 1985.
      (3) Use of funds
        In making funds available pursuant to this subsection, the
      President shall take such actions as he deems necessary to assure
      that the funds are used only for the payment of the medical
      expenses described in paragraph (1) or (2) of this subsection, as
      the case may be.
      (4) Authorization of appropriations
        There are hereby authorized to be appropriated such sums as may
      be necessary for the purposes of this subsection.
    (e) Survivability
      In furtherance of the provisions of Title Four, Article V,
    sections 452 and 453 of the Compact, any provisions of the Compact
    which remain effective after the termination of the Compact by the
    act of any party thereto and which are affected in any manner by
    provisions of this part shall remain subject to such provisions.
    (f) Registration for agents of Governments of Federated States of
      Micronesia and Marshall Islands
      (1) In general
        Notwithstanding the provisions of Title One, Article V, section
      153 of the Compact, after approval of the Compact any citizen of
      the United States who, without authority of the United States,
      acts as the agent of the Government of the Marshall Islands or
      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 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 and the Marshall Islands shall be
      considered to be foreign countries.
      (2) Exception
        Paragraph (1) of this subsection shall not apply to a citizen
      of the United States employed by either the Government of the
      Marshall Islands or the Government of the Federated States of
      Micronesia with respect to whom the employing Government from
      time to time certifies to the Government of the United States
      that such citizen is an employee of the Government of the
      Marshall Islands or the Government of the Federated States of
      Micronesia (as the case may be) whose principal duties are other
      than those matters specified in 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. 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.
      (3) Resident representative exemption
        Nothing in this subsection shall be construed as amending
      Section 152(b) of the Compact.
    (g) Noncompliance sanctions
      (1) Authority of President
        The President of the United States shall have no authority to
      suspend or withhold payments or assistance with respect to - 
          (A) section 177, 213, 216(a)(2), 216(a)(3), 221(b), or 223 of
        the Compact, or
          (B) any agreements made pursuant to such sections of the
        Compact,

      unless such suspension or withholding is imposed as a sanction
      due to noncompliance by the Government of the Federated States of
      Micronesia or the Government of the Marshall Islands (as the case
      may be) with the obligations and requirements of such sections of
      the Compact or such agreements.
      (2) Actions incompatible with United States authority
        The Congress expresses its understanding that the Governments
      of the Federated States of Micronesia and 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 Marshall Islands pursuant to the Compact, including the
      agreements referred to in sections 462(j) and 462(k) thereof. The
      Congress further expresses its intention that any such act on the
      part of either such Government will be viewed by the United
      States as a material breach of the Compact. The Government of the
      United States reserves the right in the event of such a material
      breach of the Compact by the Government of the Federated States
      of Micronesia or the Government 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.
    (h) Continuing programs and laws
      (1) Federated States of Micronesia and Marshall Islands
        In addition to the programs and services set forth in section
      221 of the Compact, and pursuant to section 224 of the Compact,
      the programs and services of the following agencies shall be made
      available to the Federated States of Micronesia and to the
      Marshall Islands:
          (A) the Legal Services Corporation;
          (B) the Public Health Service; and
          (C) 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 Farmers Home
        Loan Administration applicable to the Federated States of
        Micronesia and provide such technical assistance in management
        of the portfolio as may be requested by the Federated States of
        Micronesia).
      (2) Palau
        Upon the effective date of the Compact, the laws of the United
      States generally applicable to the Trust Territory of the Pacific
      Islands shall continue to apply to the Republic of Palau and the
      Republic of Palau shall be eligible for such proportion of
      Federal assistance as it would otherwise have been eligible to
      receive under such laws prior to the effective date of the
      Compact, as provided in appropriation Acts or other Acts of
      Congress.
      (3) Section 219 determination
        The determination by the Government of the United States under
      section 219 of the Compact shall be as provided in appropriation
      Acts.
      (4) Tort claims
        (A) At such time as the Trusteeship Agreement ceases to apply
      to either the Federated States of Micronesia or the Marshall
      Islands, the provisions of Section 178 of the Compact regarding
      settlement and payment of tort claims shall apply to employees of
      any federal agency of the Government of the United States which
      provides any service or carries out any other function pursuant
      to or in furtherance of any provisions of the Compact or this
      Act, 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. For purposes of this
      subparagraph (B),(!1) persons providing such service or carrying
      out such function pursuant to a contract with a federal agency
      shall be deemed to be an employee of the contracting federal
      agency.

        (B) For purposes of the Federal Tort Claims Act (28 U.S.C. 2671
      et seq.), persons providing services to the people of the atolls
      of Bikini, Enewetak, Rongelap, and Utrik as described in Public
      Law 95-134 and Public Law 96-205 pursuant to a contract with a
      Department or agency of the federal government shall be deemed to
      be an employee of the contracting Department or agency working in
      the United States. This subparagraph (B) shall expire when the
      Trusteeship Agreement is terminated with respect to the Marshall
      Islands.
      (5) Federal education grants
        Pursuant to section 224 of the Compact or section 224 of the
      Compact with Palau (as contained in title II of Public Law 99-
      658), the Pell Grant Program, the Supplemental Educational
      Opportunity Grant Program, and the College Work-Study Program (as
      authorized by title IV of the Higher Education Act of 1965 [20
      U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.]) shall be extended
      to students who are, or will be, citizens of the Federated States
      of Micronesia, or the Marshall Islands and who attend
      postsecondary institutions in the United States, its territories
      and commonwealths, the Trust Territory of the Pacific Islands,
      the Federated States of Micronesia, or the Marshall Islands,
      except that this paragraph shall not apply to any student
      receiving assistance pursuant to section 223 of the Compact or
      section 223 of the Compact with Palau (as contained in title II
      of Public Law 99-658).
      (5) (!2) PCB cleanup

        The programs and services of the Environmental Protection
      Agency regarding PCB's shall, to the extent applicable, as
      appropriate, and in accordance with applicable law, be construed
      to be made available to such islands.
    (i) College of Micronesia; education programs
      (1) College of Micronesia
        Notwithstanding any other provision of law, all funds which as
      of January 14, 1986, were appropriated for the use of the College
      of Micronesia System shall remain available for use by such
      college until expended. Until otherwise provided by Act of
      Congress, or until termination of the Compact, such college shall
      retain its status as a land-grant institution and its eligibility
      for all benefits and programs available to such land-grant
      institutions.
      (2) Federal education programs
        Pursuant to section 224 of the Compact and upon the request of
      the affected Government, any Federal program providing financial
      assistance for education which, as of January 1, 1985, was
      providing financial assistance for education to the Federated
      States of Micronesia or the Marshall Islands or to any
      institution, agency, organization, or permanent resident thereof,
      including the College of Micronesia System, shall continue to
      provide such assistance to such institutions, agencies,
      organizations, and residents as follows:
          (A) For the fiscal year in which the Compact becomes
        effective, not to exceed $13,000,000;
          (B) For the fiscal year beginning after the end of the fiscal
        year in which the Compact becomes effective, not to exceed
        $8,700,000; and
          (C) For the fiscal year immediately following the fiscal year
        described in subparagraph (B), not to exceed $4,300,000.
      (3) Authorization of appropriations
        There are hereby authorized to be appropriated such sums as are
      necessary for purposes of this subsection.
    (j) 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.
    (k) Use of DOD medical facilities
      Following approval of the Compact, the Secretary of Defense shall
    make available the medical facilities of the Department of Defense
    for use by citizens of the Federated States of Micronesia and the
    Marshall Islands who are properly referred to such facilities by
    government authorities responsible for provision of medical
    services in the Federated States of Micronesia and the Marshall
    Islands. The Secretary of Defense is hereby authorized to cooperate
    with such authorities in order to permit use of such medical
    facilities for persons properly referred by such authorities. The
    Secretary of Health and Human Services is hereby authorized and
    directed to continue to make the services of the National Health
    Service Corps available to the residents of the Federated States of
    Micronesia and 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.
    (l) Technical assistance
      Technical assistance may be provided pursuant to section 226 of
    the 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 Soil 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 Compact is in effect,
    the grant programs under the National Historic Preservation Act
    shall continue to apply to the Federated States of Micronesia and
    the Marshall Islands in the same manner and to the same extent as
    prior to the approval of the Compact. Funds provided pursuant to
    sections 1902(a), 1903(a), 1903(c), 1903(h), 1903(i), 1903(j), and
    1903(l) of this title and subsections (c), (i), (j), (k), (l), (m),
    (n), and (o) of this section shall be in addition to and not
    charged against any amounts to be paid to either the Federated
    States of Micronesia or the Marshall Islands pursuant to the
    Compact or the subsidiary agreements.
    (m) 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.
    (n) 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.
    (o) Communicable disease control program
      There are authorized to be appropriated for grants to the
    Government of the Federated States of Micronesia such sums as may
    be necessary for purposes of establishing or continuing programs
    for the control and prevention of communicable diseases, including
    (but not limited to) cholera and Hansen's Disease. The Secretary of
    the Interior shall assist the Government of the Federated States of
    Micronesia in designing and implementing such a program.
    (p) Trust funds
      The responsibilities of the United States with regard to
    implementation of section 235 of the Compact shall be discharged by
    the Secretary of the Interior, who shall consult with the
    Government of the Marshall Islands and the designated beneficiaries
    of the funds held in trust by the High Commissioner of the Trust
    Territory of the Pacific Islands.
    (q) Omitted
    (r) User fees
      Any person in the Federated States of Micronesia or the Marshall
    Islands shall be liable for user fees, if any, for services
    provided in the Federated States of Micronesia or 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.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 105, Jan. 14, 1986, 99 Stat. 1791;
    Pub. L. 99-396, Sec. 20(a), Aug. 27, 1986, 100 Stat. 844; Pub. L.
    99-658, title I, Sec. 104(c), Nov. 14, 1986, 100 Stat. 3676; Pub.
    L. 100-369, Sec. 9, July 18, 1988, 102 Stat. 837; Pub. L. 102-486,
    title XXVII, Sec. 2704, Oct. 24, 1992, 106 Stat. 3120.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This joint resolution and this Act, referred to in subsecs. (a),
    (b)(2), (c)(1), and (h)(4), is Pub. L. 99-239, Jan. 14, 1986, 99
    Stat. 1770, as amended, known as the Compact of Free Association
    Act of 1985, which is classified principally to this part and
    chapter 19 (Sec. 2001 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1901 of this title and Tables.
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239, as
    amended, set out as a note under section 1901 of this title.
      For Oct. 21, 1986, as the effective date of the Compact of Free
    Association with the Marshall Islands, and Nov. 3, 1986, as the
    effective date of the Compact of Free Association with the
    Federated States of Micronesia, referred to in subsecs. (b)(2),
    (c), (h)(2), (j), and (m), see Proc. No. 5564, Nov. 3, 1986, 51
    F.R. 40399, set out as a note under section 1801 of this title.
      Act of June 30, 1954, referred to in subsec. (c), is act June 30,
    1954, ch. 423, 68 Stat. 330, as amended, which enacted sections
    1681 and 1681b of this title and provisions set out as notes under
    section 1681 of this title. For complete classification of this Act
    to the Code, see Tables.
      The Foreign Agents Registration Act of 1938, referred to in
    subsec. (f)(1), (2), is act June 8, 1938, ch. 327, 52 Stat. 631, as
    amended, which is classified generally to subchapter II (Sec. 611
    et seq.) of chapter 11 of Title 22, Foreign Relations and
    Intercourse. For complete classification of this Act to the Code,
    see Short Title note set out under section 611 of Title 22 and
    Tables.
      The Federal Tort Claims Act, referred to in subsec. (h)(4)(B), is
    classified generally to section 1346(b) and chapter 171 (Sec. 2671
    et seq.) of Title 28, Judiciary and Judicial Procedure.
      Public Law 95-134, referred to in subsec. (h)(4)(B), is Pub. L.
    95-134, Oct. 15, 1977, 91 Stat. 1159, as amended, popularly known
    as the Omnibus Territories Act of 1977. For complete classification
    of this Act to the Code, see Tables.
      Public Law 96-205, referred to in subsec. (h)(4)(B), is Pub. L.
    96-205, Mar. 12, 1980, 94 Stat. 84, as amended. For complete
    classification of this Act to the Code, see Tables.
      The Compact with Palau, referred to in subsec. (h)(5), is the
    Compact of Free Association with Palau, which is contained in
    section 201 of Pub. L. 99-658, set out as a note under section 1931
    of this title.
      Public Law 99-658, referred to in subsec. (h)(5), is Pub. L. 99-
    658, Nov. 14, 1986, 100 Stat. 3672, as amended. Title II of Pub.
    L. 99-658 enacted section 1934 of this title and provisions set out
    as a note under section 1931 of this title. For complete
    classification of this Act to the Code, see Tables.
      The Higher Education Act of 1965, referred to in subsec. (h)(5),
    is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Title
    IV of the Act is classified generally to subchapter IV (Sec. 1070
    et seq.) of chapter 28 of Title 20, Education, and part C (Sec.
    2751 et seq.) of subchapter I of chapter 34 of Title 42, The Public
    Health and Welfare. For complete classification of this Act to the
    Code, see Short Title note set out under section 1001 of Title 20
    and Tables.
      The National Historic Preservation Act, referred to in subsec.
    (l), is Pub. L. 89-665, Oct. 15, 1966, 80 Stat. 915, as amended,
    which is classified generally to subchapter II (Sec. 470 et seq.)
    of chapter 1A of Title 16, Conservation. For complete
    classification of this Act to the Code, see section 470(a) of Title
    16 and Tables.

-COD-
                               CODIFICATION                           
      Subsec. (q) of this section, which required the President to
    report annually to Congress on determinations made by the United
    States in the exercise of its authority under section 313 of the
    Compact of Free Association between the Government of the United
    States and the Governments of the Marshall Islands and the
    Federated States of Micronesia, terminated, effective May 15, 2000,
    pursuant to section 3003 of Pub. L. 104-66, as amended, set out as
    a note under section 1113 of Title 31, Money and Finance. See,
    also, 14th item on page 37 of House Document No. 103-7.
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (h)(5). Pub. L. 102-486 added par. (5) relating to
    PCB cleanup.
      1988 - Subsec. (h)(5). Pub. L. 100-369 added par. (5) relating to
    Federal education grants.
      1986 - Subsec. (b)(2). Pub. L. 99-396 amended par. (2) generally.
    Prior to amendment, par. (2) read as follows: "Appropriations made
    pursuant to the Compact or any other provision of this joint
    resolution may be made only to the Secretary of the Interior, who
    shall coordinate and monitor any program or activity provided to
    the Federated States of Micronesia or the Republic of the Marshall
    Islands by departments and agencies of the Government of the United
    States and related economic development planning pursuant to the
    Compact or pursuant to any other authorization except for the
    provisions of sections 161(e), 313, and 351 of the Compact and the
    authorization of the President to agree to an effective date
    pursuant to this resolution. Funds appropriated to the Secretary of
    the Interior pursuant to this paragraph shall not be allocated to
    other Departments or agencies."
      Subsec. (c)(2). Pub. L. 99-658 substituted "infrastructure,
    except that, for purposes of an orderly reduction of United States
    programs and services in the Federated States of Micronesia, the
    Marshall Islands, and Palau, United States programs or services not
    specifically authorized by the Compact of Free Association or by
    other provisions of law may continue but, unless reimbursed by the
    respective freely associated state, not in excess of the following
    amounts:" and subpars. (1) to (3) for "infrastructure."


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.

           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of this title.


-MISC2-
     FEDERATED STATES OF MICRONESIA AND MARSHALL ISLANDS; PROGRAMS AND
                SERVICES PROVIDED ON NONREIMBURSABLE BASIS
      Pub. L. 99-396, Sec. 20(b), Aug. 27, 1986, 100 Stat. 844,
    provided that: "The programs and services specified in section
    105(h)(1), sections [sic] 105(i)(1) and (2), section 111(a) [48
    U.S.C. 1905(h)(1), (i)(1), (2), 1911(a)], the services of the
    National Health Service Corps pursuant to section 105(k), and the
    Technical Assistance and National Historic Preservation Act [16
    U.S.C. 470 et seq.] grants pursuant to section 105(l), of Public
    Law 99-239 shall be provided on a nonreimbursable basis."

-FOOTNOTE-
    (!1) So in original.

    (!2) So in original. Probably should be "(6)".


-End-



-CITE-
    48 USC Sec. 1906                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1906. Construction contract assistance

-STATUTE-
    (a) Assistance to U.S. firms
      In order to assist the Governments of the Federated States of
    Micronesia and 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 President shall consult
    with the Governments of the Federated States of Micronesia and the
    Marshall Islands with respect to any such contracts, and the
    President 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 Marshall Islands;
        (2) to the extent that necessary skills are not possessed by
      citizens of the Federated States of Micronesia and 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.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 106, Jan. 14, 1986, 99 Stat. 1797.)

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1907                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1907. Limitations

-STATUTE-
    (a) Prohibition
      The provisions of Chapter 11 of title 18 shall apply in full to
    any individual who has served as the President's Personal
    Representative for Micronesian Status Negotiations or who is or was
    an officer or employee of the Office for Micronesian Status
    Negotiations or who is or was assigned or detailed to that Office
    or who served on the Micronesia Interagency Group, except that for
    the purposes of this section, clauses (i) and (ii) of section
    207(b) (!1) of such title shall read as follows: "(i) having been
    so employed, within three years after his employment has ceased,
    knowingly acts as agent or attorney for, or otherwise represents,
    any other person (except the United States), in any formal or
    informal appearance before, or, with the intent to influence, makes
    any oral or written communication on behalf of any other person
    (except the United States) to, or (ii) having been so employed and
    as specified in subsection (d) of this section, within three years
    after his employment has ceased, knowingly represents or aids,
    counsels, advises, consults, or assists in representing any other
    person (except the United States) by personal presence at any
    formal or informal appearance before - ".

    (b) Termination
      Effective upon the date of the termination of the Trust Territory
    of the Pacific Islands with respect to Palau, the Office for
    Micronesian Status Negotiations is abolished and no department,
    agency, or instrumentality of the United States shall thereafter
    contribute funds for the support of such Office.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 107, Jan. 14, 1986, 99 Stat. 1797.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 207 of title 18, referred to in subsec. (a), was amended
    generally by Pub. L. 101-194, title I, Sec. 101(a), Nov. 30, 1989,
    103 Stat. 1716, and, as so amended, subsec. (b) of that section no
    longer contains cls. (i) and (ii). For text of section 207 of Title
    18, Crimes and Criminal Procedure, as it appeared prior to
    amendment by Pub. L. 101-194, see Effective Date of 1989 Amendment;
    Effect on Employment note set out under section 207 of Title 18.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands with
    respect to Palau, see note set out preceding section 1681 of this
    title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    48 USC Sec. 1908                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1908. Transitional immigration rules

-STATUTE-
    (a) Citizen of Northern Mariana Islands
      Any person who is a citizen of the Northern Mariana Islands, as
    that term is defined in section 24(b) of the Act of December 8,
    1983 (97 Stat. 1465), is considered a citizen of the United States
    for purposes of entry into, permanent residence, and employment in
    the United States and its territories and possessions.
    (b) Termination
      The provisions of this section shall cease to be effective when
    section 301 of the Covenant to Establish a Commonwealth of the
    Northern Mariana Islands in Political Union With the United States
    (Public Law 94-241) becomes effective pursuant to section 1003(c)
    of the Covenant.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 108, Jan. 14, 1986, 99 Stat. 1798.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 24(b) of the Act of December 8, 1983, referred to in
    subsec. (a), is Pub. L. 98-213, Sec. 24(b), Dec. 8, 1983, 97 Stat.
    1465, which was formerly set out as a note under section 1801 of
    this title.
      The Covenant to Establish a Commonwealth of the Northern Mariana
    Islands in Political Union With the United States, referred to in
    subsec. (b), is contained in section 1 of Pub. L. 94-241, as
    amended, set out as a note under section 1801 of this title. For
    November 4, 1986, as the effective date of section 301 of the
    Covenant, see Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out
    as a note under section 1801 of this title.
      Public Law 94-241, referred to in subsec. (b), is Pub. L. 94-241,
    Mar. 24, 1976, 90 Stat. 263, as amended, which is classified
    generally to subchapter I (Sec. 1801 et seq.) of chapter 17 of this
    title. For complete classification of this Act to the Code, see
    Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1909                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1909. Timing

-STATUTE-
      No payment may be made pursuant to the Compact nor under any
    provision of this joint resolution prior to October 1, 1985.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 109, Jan. 14, 1986, 99 Stat. 1798.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239, as
    amended, set out as a note under section 1901 of this title.
      This joint resolution, referred to in text, is Pub. L. 99-239,
    Jan. 14, 1986, 99 Stat. 1770, as amended, known as the Compact of
    Free Association Act of 1985, which is classified principally to
    this part and chapter 19 (Sec. 2001 et seq.) of this title. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1901 of this title and Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1910                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1910. Implementation of audit agreements

-STATUTE-
    (a) Transmission of annual financial statement
      Upon receipt of the annual financial statement described in
    sections 1902(c)(4) and 1903(m)(4) of this title, the President
    shall promptly transmit a copy of such statement to the Congress.
    (b) Annual audits by President
      (1) The President shall cause an annual audit to be conducted of
    the annual financial statements described in sections 1902(c)(4)
    and 1903(m)(4) of this title. Such audit shall be conducted in
    accordance with the Generally Accepted Government Auditing
    Standards promulgated by the Comptroller General of the United
    States. Such audit shall be submitted to the Congress not later
    than 180 days after the end of the United States fiscal year.
      (2) The President shall develop and implement procedures to carry
    out such audits. Such procedures shall include the matters
    described in sections 1902(c)(2) and 1903(m)(2) of this title.
    (c) Authority of GAO
      The Comptroller General of the United States shall have the
    authority to conduct the audits referred to in sections 1902(c)(1)
    and 1903(m)(1) of this title.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 110, Jan. 14, 1986, 99 Stat. 1798.)

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                   TERMINATION OF REPORTING REQUIREMENTS               
      For termination, effective May 15, 2000, of provisions in subsec.
    (b) of this section relating to the requirement that the annual
    audit be submitted to Congress, see section 3003 of Pub. L. 104-66,
    as amended, set out as a note under section 1113 of Title 31, Money
    and Finance, and the 13th item on page 37 of House Document No. 103-
    7.

-End-



-CITE-
    48 USC Sec. 1911                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1911. Compensatory adjustments

-STATUTE-
    (a) Additional programs and services
      In addition to the programs and services set forth in Section 221
    of the Compact, and pursuant to Section 224 of the Compact, the
    services and programs of the following U.S. agencies shall be made
    available to the Federated States of Micronesia and the Marshall
    Islands: The Federal Deposit Insurance Corporation, Small Business
    Administration, Economic Development Administration, the Rural
    Electrification Administration, Job Partnership Training Act, Job
    Corps, and the programs and services of the Department of Commerce
    relating to tourism and to marine resource development.
    (b) Investment Development Funds
      (1) In order to further close economic and commercial relations
    between the United States and the Federated States of Micronesia
    and the Marshall Islands, and in order to encourage the presence of
    the United States private sector in such areas, there are hereby
    created two Investment Development Funds, to be established and
    administered by the Federated States of Micronesia and the Marshall
    Islands respectively in consultation with the United States as
    follows:
        (i) For the Investment Development Fund for the Federated
      States of Micronesia there is hereby authorized to be
      appropriated for fiscal 1986, $20 million, backed by the full
      faith and credit of the United States, of which $12 million shall
      be made available for obligation for the first full fiscal year
      after the effective date of the Compact, and of which $8 million
      shall be made available for obligation for the third full fiscal
      year after the effective date of the Compact.
        (ii) For the Investment Development Fund for the Marshall
      Islands there is hereby authorized to be appropriated $10 million
      for fiscal 1986, backed by the full faith and credit of the
      United States, of which $6 million for the first full fiscal year
      after the effective date of the Compact, and of which $4 million
      shall be made available for obligation for the third full fiscal
      year after the effective date of the Compact.

      (2) The amounts specified in this subsection shall be in addition
    to the sums and amounts specified in Articles I and III of Title
    Two of the Compact, and shall be deemed to be included in the sums
    and amounts referred to in section 236 of the Compact.
    (c) Board of Advisors
      To provide policy guidance for the Funds established by
    subsection (b) of this section, the President is hereby authorized
    to establish a Board of Advisors, pursuant to appropriate
    agreements between the United States and the Federated States of
    Micronesia and the Marshall Islands.
    (d) Further amounts
      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 this joint resolution upon Title Two of
    the Compact. There are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 1990, such amounts as
    may be necessary, but not to exceed $40 million for the Federated
    States of Micronesia and $20 million for the Marshall Islands, as
    provided in appropriation acts, to further compensate the
    governments of such islands (in addition to the compensation
    provided in subsections (a) and (b) of this section) for adverse
    impacts, if any, on the finances and economies of such areas
    resulting from the effect of Title IV of this joint resolution upon
    Title Two of the Compact. At the end of the initial fifteen-year
    term of the Compact, should any portion of the total amount of
    funds authorized in this subsection not have been appropriated,
    such amount not yet appropriated may be appropriated, without
    regard to divisions between amounts authorized in this subsection
    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 this subsection.

-SOURCE-
    (Pub. L. 99-239, title I, Sec. 111, Jan. 14, 1986, 99 Stat. 1799.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the Government of the United States and the
    Governments of the Marshall Islands and the Federated States of
    Micronesia, which is contained in section 201 of Pub. L. 99-239,
    set out as a note under section 1901 of this title.
      The Job Partnership Training Act, referred to in subsec. (a),
    probably means the Job Training Partnership Act, Pub. L. 97-300,
    Oct. 13, 1982, 96 Stat. 1322, as amended, which was classified
    generally to chapter 19 (Sec. 1501 et seq.) of Title 29, Labor, and
    was repealed by Pub. L. 105-220, title I, Sec. 199(b)(2),
    (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000.
    Pursuant to section 2940(b) of Title 29, references to a provision
    of the Job Training Partnership Act, effective Aug. 7, 1998, are
    deemed to refer to that provision or the corresponding provision of
    the Workforce Investment Act of 1998, Pub. L. 105-220, Aug. 7,
    1998, 112 Stat. 936, and effective July 1, 2000, are deemed to
    refer to the corresponding provision of the Workforce Investment
    Act of 1998. For complete classification of the Job Training
    Partnership Act to the Code, see Tables. For complete
    classification of the Workforce Investment Act of 1998 to the Code,
    see Short Title note set out under section 9201 of Title 20,
    Education, and Tables.
      For Oct. 21, 1986, as the effective date of the Compact of Free
    Association with the Marshall Islands, and Nov. 3, 1986, as the
    effective date of the Compact of Free Association with the
    Federated States of Micronesia, referred to in subsec. (b)(1), see
    Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out as a note
    under section 1801 of this title.
      This joint resolution, referred to in subsec. (d), is Pub. L. 99-
    239, Jan. 14, 1986, 99 Stat. 1770, as amended, known as the
    Compact of Free Association Act of 1985. Title IV of this Act is
    set out as a note under section 1901 of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1901 of this title and Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1912                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part A - Approval and Implementation of Original Compact

-HEAD-
    Sec. 1912. Jurisdiction

-STATUTE-
      (a) With respect to section 321 of the Compact of Free
    Association and its related agreements, the jurisdictional
    provisions set forth in subsection (b) of this section shall apply
    only to the citizens and nationals of the United States and aliens
    lawfully admitted to the United States for permanent residence who
    are in the Marshall Islands or the Federated States of Micronesia.
      (b)(1) The defense sites of the United States established in the
    Marshall Islands or the Federated States of Micronesia in
    accordance with the Compact of Free Association and its related
    agreements are within the special maritime and territorial
    jurisdiction of the United States as set forth in section 7, title
    18.
      (2) Any person referred to in subsection (a) of this section who
    within or upon such defense sites is guilty of any act or omission
    which, although not made punishable by any enactment of Congress,
    would be punishable if committed or omitted within the jurisdiction
    of the State of Hawaii by the laws thereof, in force at the time of
    such act or omission, shall be guilty of a like offense and subject
    to a like punishment.
      (3) The United States District Court for the District of Hawaii
    shall have jurisdiction to try all criminal offenses against the
    United States, including the laws of the State of Hawaii made
    applicable to the defense sites in the Marshall Islands or the
    Federated States of Micronesia by virtue of paragraph (2) of this
    subsection, committed by any person referred to in subsection (a)
    of this section.
      (4) The United States District Court for the District of Hawaii
    may appoint one or more magistrate judges for the defense sites in
    the Marshall Islands. Such Magistrate Judges shall have the power
    and the status of Magistrate Judges appointed pursuant to chapter
    43, title 28, provided, however that such Magistrate Judges shall
    have the power to try persons accused of and sentence persons
    convicted of petty offenses, as defined in section 1(3),(!1) title
    18, including violations of regulations for the maintenance of
    peace, order, and health issued by the Commanding Officer on such
    defense sites, without being subject to the restrictions provided
    for in section 3401(b), title 18.


-SOURCE-
    (Pub. L. 99-239, title II, Sec. 202, Jan. 14, 1986, 99 Stat. 1835;
    Pub. L. 101-650, title III, Sec. 321, Dec. 1, 1990, 104 Stat.
    5117.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact of Free Association, referred to in subsecs. (a) and
    (b)(1), is the Compact of Free Association between the Government
    of the United States and the Governments of the Marshall Islands
    and the Federated States of Micronesia, which is contained in
    section 201 of Pub. L. 99-239, set out as a note under section 1901
    of this title.
      Section 1 of title 18, referred to in subsec. (b)(4), was
    repealed by Pub. L. 98-473, title II, Sec. 218(a)(1), Oct. 12,
    1984, 98 Stat. 2027.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.
      Section was enacted as part of title II of Pub. L. 99-239, and
    not as part of title I of Pub. L. 99-239 which comprises this part.

-CHANGE-
                              CHANGE OF NAME                          
      Words "magistrate judges" and "Magistrate Judges" substituted for
    "magistrates" and "Magistrates", respectively, wherever appearing
    in subsec. (b)(4) pursuant to section 321 of Pub. L. 101-650, set
    out as a note under section 631 of Title 28, Judiciary and Judicial
    Procedure.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-


-CITE-
    48 USC Part B - Approval and Implementation of Compacts,
                     As Amended                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
       PART B - APPROVAL AND IMPLEMENTATION OF COMPACTS, AS AMENDED   

-End-



-CITE-
    48 USC Sec. 1921                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921. 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

-STATUTE-
    (a) Federated States of Micronesia
      The Compact of Free Association, as amended with respect to the
    Federated States of Micronesia and signed by the United States and
    the Government of the Federated States of Micronesia and set forth
    in Title II (section 201(a)) of this joint resolution, is hereby
    approved, and Congress hereby consents to the subsidiary agreements
    and amended subsidiary agreements listed in section 462 of the U.S.-
    FSM Compact. Subject to the provisions of this joint resolution,
    the President is authorized to agree, in accordance with section
    411 of the U.S.-FSM Compact, to an effective date for and
    thereafter to implement such U.S.-FSM Compact.
    (b) Republic of the Marshall Islands
      The Compact of Free Association, as amended with respect to the
    Republic of the Marshall Islands and signed by the United States
    and the Government of the Republic of the Marshall Islands and set
    forth in Title II (section 201(b)) of this joint resolution, is
    hereby approved, and Congress hereby consents to the subsidiary
    agreements and amended subsidiary agreements listed in section 462
    of the U.S.-RMI Compact. Subject to the provisions of this joint
    resolution, the President is authorized to agree, in accordance
    with section 411 of the U.S.-RMI Compact, to an effective date for
    and thereafter to implement such U.S.-RMI Compact.
    (c) References to the Compact, the U.S.-FSM Compact, and the U.S.-
      RMI Compact; References to subsidiary agreements or separate
      agreements
      (1) Any reference in this joint resolution (except references in
    Title II) to "the Compact" shall be treated as a reference to the
    Compact of Free Association set forth in title II of Public Law 99-
    239, January 14, 1986, 99 Stat. 1770. Any reference in this joint
    resolution to the "U.S.-FSM Compact" shall be treated as a
    reference to the Compact of Free Association, as amended between
    the Government of the United States of America and the Government
    of the Federated States of Micronesia and set forth in Title II
    (section 201(a)) of this joint resolution. Any reference in this
    joint resolution to the "U.S.-RMI Compact" shall be treated as a
    reference to the Compact of Free Association, as amended between
    the Government of the United States of America and the Government
    of the Republic of the Marshall Islands and set forth in Title II
    (section 201(b)) of this joint resolution.
      (2) Any reference to the term "subsidiary agreements" or
    "separate agreements" in this joint resolution shall be treated as
    a reference to agreements listed in section 462 of the U.S.-FSM
    Compact and the U.S.-RMI Compact, and any other agreements that the
    United States may from time to time enter into with either the
    Government of the Federated States of Micronesia or the Government
    of the Republic of the Marshall Islands, or with both such
    governments in accordance with the provisions of the U.S.-FSM
    Compact and the U.S.-RMI Compact.
    (d) Amendment, change, or termination in the U.S.-FSM compact and
      U.S.-RMI compact and certain agreements
      (1) Any amendment, change, or termination by mutual agreement or
    by unilateral action of the Government of the United States of all
    or any part of the U.S.-FSM Compact or U.S.-RMI Compact shall not
    enter into force until after Congress has incorporated it in an Act
    of Congress.
      (2) The provisions of paragraph (1) shall apply - 
        (A) to all actions of the Government of the United States under
      the U.S.-FSM Compact or U.S.-RMI Compact including, but not
      limited to, actions taken pursuant to sections 431, 441, or 442;
        (B) to any amendment, change, or termination in the Agreement
      Between the Government of the United States and the Government of
      the Federated States of Micronesia Regarding Friendship,
      Cooperation and Mutual Security Concluded Pursuant to Sections
      321 and 323 of the Compact of Free Association referred to in
      section 462(a)(2) of the U.S.-FSM Compact and the Agreement
      Between the Government of the United States and the Government of
      the Marshall Islands Regarding Mutual Security Concluded Pursuant
      to Sections 321 and 323 of the Compact of Free Association
      referred to in section 462(a)(5) of the U.S.-RMI Compact;
        (C) to any amendment, change, or termination of the agreements
      concluded pursuant to Compact section 177, and section 215(a) of
      the U.S.-FSM Compact and section 216(a) of the U.S.-RMI Compact,
      the terms of which are incorporated by reference into the U.S.-
      FSM Compact and the U.S.-RMI Compact; and
        (D) to the following subsidiary agreements, or portions
      thereof:
          (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.

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 101, Dec. 17, 2003, 117 Stat.
    2723.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      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, referred to
    in subsecs. (a) and (c)(1), is contained in section 201(a) of Pub.
    L. 108-188, set out below.
      This joint resolution, referred to in text, is Pub. L. 108-188,
    Dec. 17, 2003, 117 Stat. 2720, known as the Compact of Free
    Association Amendments Act of 2003, which enacted this part and
    provisions set out as notes under this section and section 1901 of
    this title and amended provisions set out as a note under section
    3101 of Title 5, Government Organization and Employees. Title II of
    this joint resolution enacted provisions set out as notes under
    this section. For complete classification of this Act to the Code,
    see Short Title of 2003 Amendment note set out under section 1901
    of this title and Tables.
      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,
    referred to in subsecs. (b) and (c)(1), is contained in section
    201(b) of Pub. L. 108-188, set out below.


-MISC1-
                              RECITAL CLAUSES                          
      Pub. L. 108-188, Dec. 17, 2003, 117 Stat. 2723, which enacted
    this part and provisions set out as notes under this section and
    amended provisions set out as a note under section 3101 of Title 5,
    Government Organization and Employees, contained several "Whereas"
    clauses reading as follows:
      "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 [set out as a note under section
    1901 of this title], 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' [set out
    below], 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' [set out below], 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".

    COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN THE GOVERNMENT OF
     THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE FEDERATED
                           STATES OF MICRONESIA
      Pub. L. 108-188, title II, Sec. 201(a), Dec. 17, 2003, 117 Stat.
    2757, provided that: "The Compact of Free Association, as amended,
    between the Government of the United States of America and the
    Government of the Federated States of Micronesia is as follows:

                                 "PREAMBLE                             

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

                                "TITLE ONE                            

                          "GOVERNMENTAL RELATIONS                      

                                "ARTICLE I                            

                             "SELF-GOVERNMENT                         

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

                                "ARTICLE II                            

                             "FOREIGN AFFAIRS                         

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

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

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

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

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

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

      "Section 127
      "Except as otherwise provided in this Compact, as amended, or its
    related agreements, all obligations, responsibilities, rights and
    benefits of the Government of the United States as Administering
    Authority which resulted from the application pursuant to the
    Trusteeship Agreement of any treaty or other international
    agreement to the Trust Territory of the Pacific Islands on November
    2, 1986, are, as of that date, no longer assumed and enjoyed by the
    Government of the United States.

                               "ARTICLE III                           

                              "COMMUNICATIONS                          

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

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

                                "ARTICLE IV                            

                               "IMMIGRATION                           

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

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

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

                                "ARTICLE V                            

                              "REPRESENTATION                          

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

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

                                "ARTICLE VI                            

                         "ENVIRONMENTAL PROTECTION                     

      "Section 161
      "The Governments of the United States and the Federated States of
    Micronesia declare that it is their policy to promote efforts to
    prevent or eliminate damage to the environment and biosphere and to
    enrich understanding of the natural resources of the Federated
    States of Micronesia. In order to carry out this policy, the
    Government of the United States and the Government of the Federated
    States of Micronesia agree to the following mutual and reciprocal
    undertakings.
      "(a) The Government of the United States:
        "(1) shall continue to apply the environmental controls in
      effect on November 2, 1986 to those of its continuing activities
      subject to section 161(a)(2), unless and until those controls are
      modified under sections 161(a)(3) and 161(a)(4);
        "(2) shall apply the National Environmental Policy Act of 1969,
      83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities under the
      Compact, as amended, and its related agreements as if the
      Federated States of Micronesia were the United States;
        "(3) shall comply also, in the conduct of any activity
      requiring the preparation of an Environmental Impact Statement
      under section 161(a)(2), with standards substantively similar to
      those required by the following laws of the United States, taking
      into account the particular environment of the Federated States
      of Micronesia: the Endangered Species Act of 1973, as amended, 87
      Stat. 884, 16 U.S.C. 1531 et seq.; the Clean Air Act, as amended,
      77 Stat. 392, 42 U.S.C. Supp. 7401 et seq.; the Clean Water Act
      (Federal Water Pollution Control Act), as amended, 86 Stat. 896,
      33 U.S.C. 1251 et seq.; Title I of the Marine Protection,
      Research and Sanctuaries Act of 1972 (the Ocean Dumping Act), 33
      U.S.C. 1411 et seq.; the Toxic Substances Control Act, as
      amended, 15 U.S.C. 2601 et seq.; the Solid Waste Disposal Act, as
      amended, 42 U.S.C. 6901 et seq.; and such other environmental
      protection laws of the United States and of the Federated States
      of Micronesia, as may be mutually agreed from time to time with
      the Government of the Federated States of Micronesia; and
        "(4) shall develop, prior to conducting any activity requiring
      the preparation of an Environmental Impact Statement under
      section 161(a)(2), written standards and procedures, as agreed
      with the Government of the Federated States of Micronesia, to
      implement the substantive provisions of the laws made applicable
      to U.S. Government activities in the Federated States of
      Micronesia, pursuant to section 161(a)(3).
      "(b) The Government of the Federated States of Micronesia shall
    continue to develop and implement standards and procedures to
    protect its environment. As a reciprocal obligation to the
    undertakings of the Government of the United States under this
    Article, the Federated States of Micronesia, taking into account
    its particular environment, shall continue to develop and implement
    standards for environmental protection substantively similar to
    those required of the Government of the United States by section
    161(a)(3) prior to its conducting activities in the Federated
    States of Micronesia, substantively equivalent to activities
    conducted there by the Government of the United States and, as a
    further reciprocal obligation, shall enforce those standards.
      "(c) Section 161(a), including any standard or procedure
    applicable thereunder, and section 161(b) may be modified or
    superseded in whole or in part by agreement of the Government of
    the United States and the Government of the Federated States of
    Micronesia.
      "(d) In the event that an Environmental Impact Statement is no
    longer required under the laws of the United States for major
    Federal actions significantly affecting the quality of the human
    environment, the regulatory regime established under sections
    161(a)(3) and 161(a)(4) shall continue to apply to such activities
    of the Government of the United States until amended by mutual
    agreement.
      "(e) The President of the United States may exempt any of the
    activities of the Government of the United States under this
    Compact, as amended, and its related agreements from any
    environmental standard or procedure which may be applicable under
    sections 161(a)(3) and 161(a)(4) if the President determines it to
    be in the paramount interest of the Government of the United States
    to do so, consistent with Title Three of this Compact, as amended,
    and the obligations of the Government of the United States under
    international law. Prior to any decision pursuant to this
    subsection, the views of the Government of the Federated States of
    Micronesia shall be sought and considered to the extent
    practicable. If the President grants such an exemption, to the
    extent practicable, a report with his reasons for granting such
    exemption shall be given promptly to the Government of the
    Federated States of Micronesia.
      "(f) The laws of the United States referred to in section
    161(a)(3) shall apply to the activities of the Government of the
    United States under this Compact, as amended, and its related
    agreements only to the extent provided for in this section.

      "Section 162
      "The Government of the Federated States of Micronesia may bring
    an action for judicial review of any administrative agency action
    or any activity of the Government of the United States pursuant to
    section 161(a) for enforcement of the obligations of the Government
    of the United States arising thereunder. The United States District
    Court for the District of Hawaii and the United States District
    Court for the District of Columbia shall have jurisdiction over
    such action or activity, and over actions brought under section
    172(b) which relate to the activities of the Government of the
    United States and its officers and employees, governed by section
    161, provided that:
        "(a) Such actions may only be civil actions for any appropriate
      civil relief other than punitive damages against the Government
      of the United States or, where required by law, its officers in
      their official capacity; no criminal actions may arise under this
      section.
        "(b) Actions brought pursuant to this section may be initiated
      only by the Government of the Federated States of Micronesia.
        "(c) Administrative agency actions arising under section 161
      shall be reviewed pursuant to the standard of judicial review set
      forth in 5 U.S.C. 706.
        "(d) The United States District Court for the District of
      Hawaii and the United States District Court for the District of
      Columbia shall have jurisdiction to issue all necessary
      processes, and the Government of the United States agrees to
      submit itself to the jurisdiction of the court; decisions of the
      United States District Court shall be reviewable in the United
      States Court of Appeals for the Ninth Circuit or the United
      States Court of Appeals for the District of Columbia,
      respectively, or in the United States Supreme Court as provided
      by the laws of the United States.
        "(e) The judicial remedy provided for in this section shall be
      the exclusive remedy for the judicial review or enforcement of
      the obligations of the Government of the United States under this
      Article and actions brought under section 172(b) which relate to
      the activities of the Government of the United States and its
      officers and employees governed by section 161.
        "(f) In actions pursuant to this section, the Government of the
      Federated States of Micronesia shall be treated as if it were a
      United States citizen.

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

                               "ARTICLE VII                           

                         "GENERAL LEGAL PROVISIONS                     

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

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

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

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

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

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

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

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

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

                                "TITLE TWO                            

                            "ECONOMIC RELATIONS                        

                                "ARTICLE I                            

                             "GRANT ASSISTANCE                         

      "Section 211 - Sector Grants
      "(a) In order to assist the Government of the Federated States of
    Micronesia in its efforts to promote the economic advancement,
    budgetary self-reliance, and economic self-sufficiency of its
    people, and in recognition of the special relationship that exists
    between the Federated States of Micronesia and the United States,
    the Government of the United States shall provide assistance on a
    sector grant basis for a period of twenty years in the amounts set
    forth in section 216, commencing on the effective date of this
    Compact, as amended. Such grants shall be used for assistance in
    the sectors of education, health care, private sector development,
    the environment, public sector capacity building, and public
    infrastructure, or for other sectors as mutually agreed, with
    priorities in the education and health care sectors. For each year
    such sector grant assistance is made available, the proposed
    division of this amount among these sectors shall be certified to
    the Government of the United States by the Government of the
    Federated States of Micronesia and shall be subject to the
    concurrence of the Government of the United States. In such case,
    the Government of the United States shall disburse the agreed upon
    amounts and monitor the use of such sector grants in accordance
    with the provisions of this Article and the Agreement Concerning
    Procedures for the Implementation of United States Economic
    Assistance Provided in the Compact, as Amended, of Free Association
    Between the Government of the United States of America and the
    Government of the Federated States of Micronesia ('Fiscal
    Procedures Agreement') which shall come into effect simultaneously
    with this Compact, as amended. The provision of any United States
    assistance under the Compact, as amended, the Fiscal Procedures
    Agreement, the Trust Fund Agreement, or any other subsidiary
    agreement to the Compact, as amended, shall constitute 'a
    particular distribution . . . required by the terms or special
    nature of the assistance' for purposes of Article XII, section 1(b)
    of the Constitution of the Federated States of Micronesia.
        "(1) Education. - United States grant assistance shall be made
      available in accordance with the plan described in subsection (c)
      of this section to support and improve the educational system of
      the Federated States of Micronesia and develop the human,
      financial, and material resources necessary for the Government of
      the Federated States of Micronesia to perform these services.
      Emphasis should be placed on advancing a quality basic education
      system.
        "(2) Health. - United States grant assistance shall be made
      available in accordance with the plan described in subsection (c)
      of this section to support and improve the delivery of
      preventive, curative and environmental care and develop the
      human, financial, and material resources necessary for the
      Government of the Federated States of Micronesia to perform these
      services.
        "(3) Private sector development. - United States grant
      assistance shall be made available in accordance with the plan
      described in subsection (c) of this section to support the
      efforts of the Government of the Federated States of Micronesia
      to attract foreign investment and increase indigenous business
      activity by vitalizing the commercial environment, ensuring fair
      and equitable application of the law, promoting adherence to core
      labor standards, and maintaining progress toward privatization of
      state-owned and partially state-owned enterprises, and engaging
      in other reforms.
        "(4) Capacity building in the public sector. - United States
      grant assistance shall be made available in accordance with the
      plan described in subsection (c) of this section to support the
      efforts of the Government of the Federated States of Micronesia
      to build effective, accountable and transparent national, state,
      and local government and other public sector institutions and
      systems.
        "(5) Environment. - United States grant assistance shall be
      made available in accordance with the plan described in
      subsection (c) of this section to increase environmental
      protection; conserve and achieve sustainable use of natural
      resources; and engage in environmental infrastructure planning,
      design construction and operation.
        "(6) Public infrastructure. - 
          "(i) U.S. annual grant assistance shall be made available in
        accordance with a list of specific projects included in the
        plan described in subsection (c) of this section to assist the
        Government of the Federated States of Micronesia in its efforts
        to provide adequate public infrastructure.
          "(ii) Infrastructure and maintenance Fund. - Five percent of
        the annual public infrastructure grant made available under
        paragraph (i) of this subsection shall be set aside, with an
        equal contribution from the Government of the Federated States
        of Micronesia, as a contribution to an Infrastructure
        Maintenance Fund (IMF). Administration of the Infrastructure
        Maintenance Fund shall be governed by the Fiscal Procedures
        Agreement.
      "(b) Humanitarian Assistance. - Federated States of Micronesia
    Program. In recognition of the special development needs of the
    Federated States of Micronesia, the Government of the United States
    shall make available to the Government of the Federated States of
    Micronesia, on its request and to be deducted from the grant amount
    made available under subsection (a) of this section, a Humanitarian
    Assistance - Federated States of Micronesia ('HAFSM') Program with
    emphasis on health, education, and infrastructure (including
    transportation), projects. The terms and conditions of the HAFSM
    shall be set forth in the Agreement Regarding the Military Use and
    Operating Rights of the Government of the United States in the
    Government of the Federated States of Micronesia Concluded Pursuant
    to Sections 321 and 323 of the Compact of Free Association, as
    Amended which shall come into effect simultaneously with the
    amendments to this Compact.
      "(c) Development Plan. - The Government of the Federated States
    of Micronesia shall prepare and maintain an official overall
    development plan. The plan shall be strategic in nature, shall be
    continuously reviewed and updated through the annual budget
    process, and shall make projections on a multi-year rolling basis.
    Each of the sectors named in subsection (a) of this section, or
    other sectors as mutually agreed, shall be accorded specific
    treatment in the plan. Insofar as grants funds are involved, the
    plan shall be subject to the concurrence of the Government of the
    United States.
      "(d) Disaster Assistance Emergency Fund. - An amount of two
    hundred thousand dollars ($200,000) shall be provided annually,
    with an equal contribution from the Government of the Federated
    States of Micronesia, as a contribution to a 'Disaster Assistance
    Emergency Fund (DAEF).' Any funds from the DAEF may be used only
    for assistance and rehabilitation resulting from disasters and
    emergencies. The funds will be accessed upon declaration by the
    Government of the Federated States of Micronesia, with the
    concurrence of the United States Chief of Mission to the Federated
    States of Micronesia. The Administration of the DAEF shall be
    governed by the Fiscal Procedures Agreement.

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

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

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

      "Section 215 - Trust Fund
      "(a) The United States shall contribute annually for twenty years
    from the effective date of this Compact, as amended, in the amounts
    set forth in section 216 into a Trust Fund established in
    accordance with the Agreement Between the Government of the United
    States of America and the Government of the Federated States of
    Micronesia Implementing Section 215 and Section 216 of the Compact,
    as Amended, Regarding a Trust Fund ('Trust Fund Agreement'). Upon
    termination of the annual financial assistance under section 211,
    the proceeds of the fund shall thereafter be used for the purposes
    described in section 211 or as otherwise mutually agreed.
      "(b) The United States contribution into the Trust Fund described
    in subsection(a) of this section is conditioned on the Government
    of the Federated States of Micronesia contributing to the Trust
    Fund at least $30 million, prior to September 30, 2004. Any funds
    received by the Federated States of Micronesia under section 111(d)
    of Public Law 99-239 (January 14, 1986), or successor provisions,
    would be contributed to the Trust Fund as a Federated States of
    Micronesia contribution.
      "(c) The terms regarding the investment and management of funds
    and use of the income of the Trust Fund shall be set forth in the
    separate Trust Fund Agreement described in subsection (a) of this
    section. Funds derived from United States investment shall not be
    subject to Federal or state taxes in the United States or the
    Federated States of Micronesia. The Trust Fund Agreement shall also
    provide for annual reports to the Government of the United States
    and to the Government of the Federated States of Micronesia. The
    Trust Fund Agreement shall provide for appropriate distributions of
    trust fund proceeds to the Federated States of Micronesia and for
    appropriate remedies for the failure of the Federated States of
    Micronesia to use income of the Trust Fund for the annual grant
    purposes set forth in section 211. These remedies may include the
    return to the United States of the present market value of its
    contributions to the Trust Fund and the present market value of any
    undistributed income on the contributions of the United States. If
    this Compact, as amended, is terminated, the provisions of sections
    451 through 453 of this Compact, as amended, shall govern treatment
    of any U.S. contributions to the Trust Fund or accrued interest
    thereon.

      "Section 216 - Sector Grant Funding and Trust Fund Contributions
      "The funds described in sections 211, 212(b) and 215 shall be
    made available as follows:



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


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

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

                                "ARTICLE II                            

                     "SERVICES AND PROGRAM ASSISTANCE                 

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

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

      "Section 223
      "The Government of the Federated States of Micronesia shall make
    available to the Government of the United States at no cost such
    land as may be necessary for the operations of the services and
    programs provided pursuant to this Article, and such facilities as
    are provided by the Government of the Federated States of
    Micronesia at no cost to the Government of the United States as of
    the effective date of this Compact, as amended, or as may be
    mutually agreed thereafter.

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

                               "ARTICLE III                           

                        "ADMINISTRATIVE PROVISIONS                    

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

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

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

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

                                "ARTICLE IV                            

                                  "TRADE                              

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

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

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

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

                                "ARTICLE V                            

                           "FINANCE AND TAXATION                       

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

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

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

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

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

                               "TITLE THREE                           

                      "SECURITY AND DEFENSE RELATIONS                  

                                "ARTICLE I                            

                       "AUTHORITY AND RESPONSIBILITY                   

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

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

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

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

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

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

                                "ARTICLE II                            

                 "DEFENSE FACILITIES AND OPERATING RIGHTS             

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

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

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

                               "ARTICLE III                           

          "DEFENSE TREATIES AND INTERNATIONAL SECURITY AGREEMENTS      

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

                                "ARTICLE IV                            

               "SERVICE IN ARMED FORCES OF THE UNITED STATES           

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

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

                                "ARTICLE V                            

                            "GENERAL PROVISIONS                        

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

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

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

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

                                "TITLE FOUR                            

                            "GENERAL PROVISIONS                        

                                "ARTICLE I                            

                       "APPROVAL AND EFFECTIVE DATE                   

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

                                "ARTICLE II                            

                    "CONFERENCE AND DISPUTE RESOLUTION                

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

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

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

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

                               "ARTICLE III                           

                                "AMENDMENT                            

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

                                "ARTICLE IV                            

                               "TERMINATION                           

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

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

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

                                "ARTICLE V                            

                              "SURVIVABILITY                          

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

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

      "Section 453
      "(a) Should termination occur pursuant to section 443 prior to
    the twentieth anniversary of the effective date of this Compact, as
    amended, the following provisions of this Compact, as amended,
    shall remain in full force and effect until the twentieth
    anniversary of the effective date of this Compact, as amended, and
    thereafter as mutually agreed:
        "(1) Article VI and sections 172, 173, 176 and 177 of Title
      One;
        "(2) Sections 232 and 234 of Title Two;
        "(3) Title Three; and
        "(4) Articles II, III, V and VI of Title Four.
      "(b) Upon receipt of notice of termination pursuant to section
    443, the Government of the United States and the Government of the
    Federated States of Micronesia shall promptly consult with regard
    to their future relationship. Except as provided in subsection (c)
    and (d) of this section, these consultations shall determine the
    level of economic and other assistance, if any, which the
    Government of the United States shall provide to the Government of
    the Federated States of Micronesia for the period ending on the
    twentieth anniversary of the effective date of this Compact, as
    amended, and for any period thereafter, if mutually agreed.
      "(c) In view of the special relationship of the United States and
    the Federated States of Micronesia, as reflected in subsections
    354(b) and (c) of this Compact, as amended, and the separate
    agreement regarding mutual security, and the Trust Fund Agreement,
    if termination occurs pursuant to section 443 prior to the
    twentieth anniversary of the effective date of this Compact, as
    amended, the United States shall continue to make contributions to
    the Trust Fund described in section 215 of this Compact, as
    amended, in the manner described in the Trust Fund Agreement.
      "(d) In view of the special relationship of the United States and
    the Federated States of Micronesia, as reflected in subsections
    354(b) and (c) of this Compact, as amended, and the separate
    agreement regarding mutual security, and the Trust Fund Agreement,
    if termination occurs pursuant to section 443 following the
    twentieth anniversary of the effective date of this Compact, as
    amended, the Federated States of Micronesia shall continue to be
    eligible to receive proceeds from the Trust Fund described in
    section 215 of this Compact, as amended, in the manner described in
    those provisions and the Trust Fund Agreement.

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

                                "ARTICLE VI                            

                           "DEFINITION OF TERMS                       

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

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

      "Section 463
      "(a) Except as set forth in subsection (b) of this section, any
    reference in this Compact, as amended, to a provision of the United
    States Code or the Statutes at Large of the United States
    constitutes the incorporation of the language of such provision
    into this Compact, as amended, as such provision was in force on
    the effective date of this Compact, as amended.
      "(b) Any reference in Articles IV and Article VI of Title One and
    Sections 174, 175, 178 and 342 to a provision of the United States
    Code or the Statutes at Large of the United States or to the
    Privacy Act, the Freedom of Information Act, the Administrative
    Procedure Act or the Immigration and Nationality Act constitutes
    the incorporation of the language of such provision into this
    Compact, as amended, as such provision was in force on the
    effective date of this Compact, as amended, or as it may be amended
    thereafter on a non-discriminatory basis according to the
    constitutional processes of the United States.

                               "ARTICLE VII                           

                          "CONCLUDING PROVISIONS                      

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

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

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

    Ambassador Larry M. Dinger
    U.S. Ambassador to the
    Federated States of Micronesia

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

    His Excellency Jesse B. Marehalau
    Ambassador Extraordinary and
    Plenipotentiary"

    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
      Pub. L. 108-188, title II, Sec. 201(b), Dec. 17, 2003, 117 Stat.
    2795, provided that: "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 to maintain
    their close government-to-government relationship, the United
    States and the Republic of the Marshall Islands:
      "NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen their
    relationship of free association by amending the Compact, which
    continues to provide a full measure of self-government for the
    people of the Republic of the Marshall Islands; and
      "FURTHER AGREE that the relationship of free association derives
    from and is as set forth in this Compact, as amended, by the
    Governments of the United States and the Republic of the Marshall
    Islands; and that, during such relationship of free association,
    the respective rights and responsibilities of the Government of the
    United States and the Government of the Republic of the Marshall
    Islands in regard to this relationship of free association derive
    from and are as set forth in this Compact, as amended.

                                "TITLE ONE                            

                          "GOVERNMENTAL RELATIONS                      

                                "ARTICLE I                            

                             "SELF-GOVERNMENT                         

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

                                "ARTICLE II                            

                             "FOREIGN AFFAIRS                         

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

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

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

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

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

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

      "Section 127
      "Except as otherwise provided in this Compact, as amended, or its
    related agreements, all obligations, responsibilities, rights and
    benefits of the Government of the United States as Administering
    Authority which resulted from the application pursuant to the
    Trusteeship Agreement of any treaty or other international
    agreement to the Trust Territory of the Pacific Islands on October
    20, 1986, are, as of that date, no longer assumed and enjoyed by
    the Government of the United States.

                               "ARTICLE III                           

                              "COMMUNICATIONS                          

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

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

                                "ARTICLE IV                            

                               "IMMIGRATION                           

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

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

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

                                "ARTICLE V                            

                              "REPRESENTATION                          

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

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

                                "ARTICLE VI                            

                         "ENVIRONMENTAL PROTECTION                     

      "Section 161
      "The Governments of the United States and the Republic of the
    Marshall Islands declare that it is their policy to promote efforts
    to prevent or eliminate damage to the environment and biosphere and
    to enrich understanding of the natural resources of the Republic of
    the Marshall Islands. In order to carry out this policy, the
    Government of the United States and the Government of the Republic
    of the Marshall Islands agree to the following mutual and
    reciprocal undertakings:
        "(a) The Government of the United States:
          "(1) shall, for its activities controlled by the U.S. Army at
        Kwajalein Atoll and in the Mid-Atoll Corridor and for U.S. Army
        Kwajalein Atoll activities in the Republic of the Marshall
        Islands, continue to apply the Environmental Standards and
        Procedures for United States Army Kwajalein Atoll Activities in
        the Republic of the Marshall Islands, unless and until those
        Standards or Procedures are modified by mutual agreement of the
        Governments of the United States and the Republic of the
        Marshall Islands;
          "(2) shall apply the National Environmental Policy Act of
        1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities
        under the Compact, as amended, and its related agreements as if
        the Republic of the Marshall Islands were the United States;
          "(3) in the conduct of any activity not described in section
        161(a)(1) requiring the preparation of an Environmental Impact
        Statement under section 161(a)(2), shall comply with standards
        substantively similar to those required by the following laws
        of the United States, taking into account the particular
        environment of the Republic of the Marshall Islands; the
        Endangered Species Act of 1973, as amended, 16 U.S.C. 1531 et
        seq.; the Clean Air Act, as amended, 42 U.S.C. 7401 et seq.;
        the Clean Water Act (Federal Water Pollution Control Act), as
        amended, 33 U.S.C. 1251 et seq.; Title I of the Marine
        Protection, Research and Sanctuaries Act of 1972 (the Ocean
        Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic Substances
        Control Act, as amended, 15 U.S.C. 2601 et seq.; the Solid
        Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and
        such other environmental protection laws of the United States
        and the Republic of the Marshall Islands as may be agreed from
        time to time with the Government of the Republic of the
        Marshall Islands;
          "(4) shall, prior to conducting any activity not described in
        section 161(a)(1) requiring the preparation of an Environmental
        Impact Statement under section 161(a)(2), develop, as agreed
        with the Government of the Republic of the Marshall Islands,
        written environmental standards and procedures to implement the
        substantive provisions of the laws made applicable to U.S.
        Government activities in the Republic of the Marshall Islands,
        pursuant to section 161(a)(3).
        "(b) The Government of the Republic of the Marshall Islands
      shall continue to develop and implement standards and procedures
      to protect its environment. As a reciprocal obligation to the
      undertakings of the Government of the United States under this
      Article, the Republic of the Marshall Islands, taking into
      account its particular environment, shall continue to develop and
      implement standards for environmental protection substantively
      similar to those required of the Government of the United States
      by section 161(a)(3) prior to its conducting activities in the
      Republic of the Marshall Islands, substantively equivalent to
      activities conducted there by the Government of the United States
      and, as a further reciprocal obligation, shall enforce those
      standards.
        "(c) Section 161(a), including any standard or procedure
      applicable thereunder, and section 161(b) may be modified or
      superseded in whole or in part by agreement of the Government of
      the United States and the Government of the Republic of the
      Marshall Islands.
        "(d) In the event that an Environmental Impact Statement is no
      longer required under the laws of the United States for major
      Federal actions significantly affecting the quality of the human
      environment, the regulatory regime established under sections
      161(a)(3) and 161(a)(4) shall continue to apply to such
      activities of the Government of the United States until amended
      by mutual agreement.
        "(e) The President of the United States may exempt any of the
      activities of the Government of the United States under this
      Compact, as amended, and its related agreements from any
      environmental standard or procedure which may be applicable under
      sections 161(a)(3) and 161(a)(4) if the President determines it
      to be in the paramount interest of the Government of the United
      States to do so, consistent with Title Three of this Compact, as
      amended, and the obligations of the Government of the United
      States under international law. Prior to any decision pursuant to
      this subsection, the views of the Government of the Republic of
      the Marshall Islands shall be sought and considered to the extent
      practicable. If the President grants such an exemption, to the
      extent practicable, a report with his reasons for granting such
      exemption shall be given promptly to the Government of the
      Republic of the Marshall Islands.
        "(f) The laws of the United States referred to in section
      161(a)(3) shall apply to the activities of the Government of the
      United States under this Compact, as amended, and its related
      agreements only to the extent provided for in this section.

      "Section 162
      "The Government of the Republic of the Marshall Islands may bring
    an action for judicial review of any administrative agency action
    or any activity of the Government of the United States pursuant to
    section 161(a) for enforcement of the obligations of the Government
    of the United States arising thereunder. The United States District
    Court for the District of Hawaii and the United States District
    Court for the District of Columbia shall have jurisdiction over
    such action or activity, and over actions brought under section
    172(b) which relate to the activities of the Government of the
    United States and its officers and employees, governed by section
    161, provided that:
        "(a) Such actions may only be civil actions for any appropriate
      civil relief other than punitive damages against the Government
      of the United States or, where required by law, its officers in
      their official capacity; no criminal actions may arise under this
      section.
        "(b) Actions brought pursuant to this section may be initiated
      only by the Government of the Republic of the Marshall Islands.
        "(c) Administrative agency actions arising under section 161
      shall be reviewed pursuant to the standard of judicial review set
      forth in 5 U.S.C. 706.
        "(d) The United States District Court for the District of
      Hawaii and the United States District Court for the District of
      Columbia shall have jurisdiction to issue all necessary
      processes, and the Government of the United States agrees to
      submit itself to the jurisdiction of the court; decisions of the
      United States District Court shall be reviewable in the United
      States Court of Appeals for the Ninth Circuit or the United
      States Court of Appeals for the District of Columbia,
      respectively, or in the United States Supreme Court as provided
      by the laws of the United States.
        "(e) The judicial remedy provided for in this section shall be
      the exclusive remedy for the judicial review or enforcement of
      the obligations of the Government of the United States under this
      Article and actions brought under section 172(b), which relate to
      the activities of the Government of the United States and its
      officers and employees governed by section 161.
        "(f) In actions pursuant to this section, the Government of the
      Republic of the Marshall Islands shall be treated as if it were a
      United States citizen.

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

                               "ARTICLE VII                           

                         "GENERAL LEGAL PROVISIONS                     

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

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

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

      "Section 174
      "Except as otherwise provided in this Compact, as amended, and
    its related agreements:
        "(a) The Government of the Republic of the Marshall Islands,
      and its agencies and officials, shall be immune from the
      jurisdiction of the court of the United States, and the
      Government of the United States, and its agencies and officials,
      shall be immune from the jurisdiction of the courts of the
      Republic of the Marshall Islands.
        "(b) The Government of the United States accepts responsibility
      for and shall pay:
          "(1) any unpaid money judgment rendered by the High Court of
        the Trust Territory of the Pacific Islands against the
        Government of the United States with regard to any cause of
        action arising as a result of acts or omissions of the
        Government of the Trust Territory of the Pacific Islands or the
        Government of the United States prior to October 21, 1986;
          "(2) any claim settled by the claimant and the Government of
        the Trust Territory of the Pacific Islands but not paid as of
        October 21, 1986; and
          "(3) settlement of any administrative claim or of any action
        before a court of the Trust Territory of the Pacific Islands or
        the Government of the United States, arising as a result of
        acts or omissions of the Government of the Trust Territory of
        the Pacific Islands or the Government of the United States.
        "(c) Any claim not referred to in section 174(b) and arising
      from an act or omission of the Government of the Trust Territory
      of the Pacific Islands or the Government of the United States
      prior to the effective date of the Compact shall be adjudicated
      in the same manner as a claim adjudicated according to section
      174(d). In any claim against the Government of the Trust
      Territory of the Pacific Islands, the Government of the United
      States shall stand in the place of the Government of the Trust
      Territory of the Pacific Islands. A judgment on any claim
      referred to in section 174(b) or this subsection, not otherwise
      satisfied by the Government of the United States, may be
      presented for certification to the United States Court of Appeals
      for the Federal Circuit, or its successor courts, which shall
      have jurisdiction therefore, notwithstanding the provisions of 28
      U.S.C. 1502, and which court's decisions shall be reviewable as
      provided by the laws of the United States. The United States
      Court of Appeals for the Federal Circuit shall certify such
      judgment, and order payment thereof, unless it finds, after a
      hearing, that such judgment is manifestly erroneous as to law or
      fact, or manifestly excessive. In either of such cases the United
      States Court of Appeals for the Federal Circuit shall have
      jurisdiction to modify such judgment.
        "(d) The Government of the Republic of the Marshall Islands
      shall not be immune from the jurisdiction of the courts of the
      United States, and the Government of the United States shall not
      be immune from the jurisdiction of the courts of the Republic of
      the Marshall Islands in any civil case in which an exception to
      foreign state immunity is set forth in the Foreign Sovereign
      Immunities Act (28 U.S.C. 1602 et seq.) or its successor
      statutes.

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

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

      "Section 177
      "Section 177 of the Compact entered into force with respect to
    the Marshall Islands on October 21, 1986 as follows:
        " '(a) The Government of the United States accepts the
      responsibility for compensation owing to citizens of the Marshall
      Islands, or the Federated States of Micronesia, (or Palau) for
      loss or damage to property and person of the citizens of the
      Marshall Islands, or the Federated States of Micronesia,
      resulting from the nuclear testing program which the Government
      of the United States conducted in the Northern Marshall Islands
      between June 30, 1946, and August 18, 1958.
        " '(b) The Government of the United States and the Government
      of the Marshall Islands shall set forth in a separate agreement
      provisions for the just and adequate settlement of all such
      claims which have arisen in regard to the Marshall Islands and
      its citizens and which have not as yet been compensated or which
      in the future may arise, for the continued administration by the
      Government of the United States of direct radiation related
      medical surveillance and treatment programs and radiological
      monitoring activities and for such additional programs and
      activities as may be mutually agreed, and for the assumption by
      the Government of the Marshall Islands of responsibility for
      enforcement of limitations on the utilization of affected areas
      developed in cooperation with the Government of the United States
      and for the assistance by the Government of the United States in
      the exercise of such responsibility as may be mutually agreed.
      This separate agreement shall come into effect simultaneously
      with this Compact and shall remain in effect in accordance with
      its own terms.
        " '(c) The Government of the United States shall provide to the
      Government of the Marshall Islands, on a grant basis, the amount
      of $150 million to be paid and distributed in accordance with the
      separate agreement referred to in this Section, and shall provide
      the services and programs set forth in this separate agreement,
      the language of which is incorporated into this Compact.'.
    The Compact, as amended, makes no changes to, and has no effect
    upon, Section 177 of the Compact, nor does the Compact, as amended,
    change or affect the separate agreement referred to in Section 177
    of the Compact including Articles IX and X of that separate
    agreement, and measures taken by the parties thereunder.

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

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

                                "TITLE TWO                            

                            "ECONOMIC RELATIONS                        

                                "ARTICLE I                            

                             "GRANT ASSISTANCE                         

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

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

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

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

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

      "Section 216 - Trust Fund
      "(a) The United States shall contribute annually for twenty years
    from the effective date of the Compact, as amended, in the amounts
    set forth in section 217 into a trust fund established in
    accordance with the Agreement Between the Government of the United
    States of America and the Government of the Republic of the
    Marshall Islands Implementing Section 216 and Section 217 of the
    Compact, as Amended, Regarding a Trust Fund ('Trust Fund
    Agreement'), which shall come into effect simultaneously with this
    Compact, as amended. Upon termination of the annual grant
    assistance under section 211 (a), (d) and (e), the earnings of the
    fund shall thereafter be used for the purposes described in section
    211 or as otherwise mutually agreed.
      "(b) The United States contribution into the Trust Fund described
    in subsection (a) of this section is conditioned on the Government
    of the Republic of the Marshall Islands contributing to the Trust
    Fund at least $25,000,000, on the effective date of the Trust Fund
    Agreement or on October 1, 2003, whichever is later, $2,500,000
    prior to October 1, 2004, and $2,500,000 prior to October 1, 2005.
    Any funds received by the Republic of the Marshall Islands under
    section 111(d) of Public Law 99-239 (January 14, 1986), or
    successor provisions, would be contributed to the Trust Fund as a
    Republic of the Marshall Islands' contribution.
      "(c) The terms regarding the investment and management of funds
    and use of the income of the Trust Fund shall be governed by the
    Trust Fund Agreement. Funds derived from United States investment
    shall not be subject to Federal or state taxes in the United States
    or any taxes in the Republic of the Marshall Islands. The Trust
    Fund Agreement shall also provide for annual reports to the
    Government of the United States and to the Government of the
    Republic of the Marshall Islands. The Trust Fund Agreement shall
    provide for appropriate distributions of trust fund proceeds to the
    Republic of the Marshall Islands and for appropriate remedies for
    the failure of the Republic of the Marshall Islands to use income
    of the Trust Fund for the annual grant purposes set forth in
    section 211. These remedies may include the return to the United
    States of the present market value of its contributions to the
    Trust Fund and the present market value of any undistributed income
    on the contributions of the United States. If this Compact, as
    amended, is terminated, the provisions of sections 451-453 of the
    Compact, as amended, and the Trust Fund Agreement shall govern
    treatment of any U.S. contributions to the Trust Fund or accrued
    income thereon.

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



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


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

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

                                "ARTICLE II                            

                     "SERVICES AND PROGRAM ASSISTANCE                 

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

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

      "Section 223
      "The Government of the Republic of the Marshall Islands shall
    make available to the Government of the United States at no cost
    such land as may be necessary for the operations of the services
    and programs provided pursuant to this Article, and such facilities
    as are provided by the Government of the Republic of the Marshall
    Islands at no cost to the Government of the United States as of the
    effective date of this Compact, as amended, or as may be mutually
    agreed thereafter.

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

                               "ARTICLE III                           

                        "ADMINISTRATIVE PROVISIONS                    

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

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

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

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

                                "ARTICLE IV                            

                                  "TRADE                              

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

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

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

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

                                "ARTICLE V                            

                           "FINANCE AND TAXATION                       

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

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

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

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

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

                               "TITLE THREE                           

                      "SECURITY AND DEFENSE RELATIONS                  

                                "ARTICLE I                            

                       "AUTHORITY AND RESPONSIBILITY                   

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

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

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

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

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

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

                                "ARTICLE II                            

                 "DEFENSE FACILITIES AND OPERATING RIGHTS             

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

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

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

                               "ARTICLE III                           

          "DEFENSE TREATIES AND INTERNATIONAL SECURITY AGREEMENTS      

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

                                "ARTICLE IV                            

               "SERVICE IN ARMED FORCES OF THE UNITED STATES           

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

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

                                "ARTICLE V                            

                            "GENERAL PROVISIONS                        

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

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

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

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

                                "TITLE FOUR                            

                            "GENERAL PROVISIONS                        

                                "ARTICLE I                            

                       "APPROVAL AND EFFECTIVE DATE                   

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

                                "ARTICLE II                            

                    "CONFERENCE AND DISPUTE RESOLUTION                

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

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

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

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

                               "ARTICLE III                           

                                "AMENDMENT                            

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

                                "ARTICLE IV                            

                               "TERMINATION                           

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

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

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

                                "ARTICLE V                            

                              "SURVIVABILITY                          

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

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

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

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

                                "ARTICLE VI                            

                           "DEFINITION OF TERMS                       

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

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

      "Section 463
      "(a) Except as set forth in subsection (b) of this section, any
    reference in this Compact, as amended, to a provision of the United
    States Code or the Statutes at Large of the United States
    constitutes the incorporation of the language of such provision
    into this Compact, as amended, as such provision was in force on
    the effective date of this Compact, as amended.
      "(b) Any reference in Article IV and VI of Title One, and
    Sections 174, 175, 178 and 342 to a provision of the United States
    Code or the Statutes at Large of the United States or to the
    Privacy Act, the Freedom of Information Act, the Administrative
    Procedure Act or the Immigration and Nationality Act constitutes
    the incorporation of the language of such provision into this
    Compact, as amended, as such provision was in force on the
    effective date of this Compact, as amended, or as it may be amended
    thereafter on a non-discriminatory basis according to the
    constitutional processes of the United States.

                               "ARTICLE VII                           

                          "CONCLUDING PROVISIONS                      

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

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

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

    Ambassador Michael J. Senko
    U.S. Ambassador to the
    Republic of the Marshall Islands

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

    His Excellency Banny deBrum
    Ambassador Extraordinary and
    Plenipotentiary"

-End-



-CITE-
    48 USC Sec. 1921a                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921a. Agreements with Federated States of Micronesia

-STATUTE-
    (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
    1921d(j) of this title may be used to reimburse State or local
    agencies providing such assistance.
    (b) Agreement on audits
      The Comptroller General (and his duly authorized representatives)
    shall have the authorities necessary to carry out his
    responsibilities under section 232 of the U.S.-FSM Compact and the
    agreement referred to in section 462(b)(4) of the U.S.-FSM Compact,
    including the following authorities:
      (1) General authority of the Comptroller General to audit
        (A) The Comptroller General of the United States (and his duly
      authorized representatives) shall have the authority to audit - 
          (i) all grants, program assistance, and other assistance
        provided to the Government of the Federated States of
        Micronesia under Articles I and II of Title Two of the U.S.-FSM
        Compact; and
          (ii) any other assistance provided by the Government of the
        United States to the Government of the Federated States of
        Micronesia.

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

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 102, Dec. 17, 2003, 117 Stat.
    2725.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This joint resolution, referred to in subsec. (b)(5), is Pub. L.
    108-188, Dec. 17, 2003, 117 Stat. 2720, known as the Compact of
    Free Association Amendments Act of 2003, which enacted this part
    and provisions set out as notes under sections 1901 and 1921 of
    this title and amended provisions set out as a note under section
    3101 of Title 5, Government Organization and Employees. For
    complete classification of this Act to the Code, see Short Title of
    2003 Amendment note set out under section 1901 of this title and
    Tables.

-End-



-CITE-
    48 USC Sec. 1921b                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921b. Agreements with and other provisions related to the
      Republic of the Marshall Islands

-STATUTE-
    (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 1921d(j) of this
    title may be used to reimburse State or local agencies providing
    such assistance.
    (b) Ejit
      (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that the President of the United States
    shall negotiate with the Government of the Marshall Islands an
    agreement whereby, without prejudice as to any claims which have
    been or may be asserted by any party as to rightful title and
    ownership of any lands on Ejit, the Government of the Marshall
    Islands shall assure that lands on Ejit used as of January 1, 1985,
    by the people of Bikini, will continue to be available without
    charge for their use, until such time as Bikini is restored and
    inhabitable and the continued use of Ejit is no longer necessary,
    unless a Marshall Islands court of competent jurisdiction finally
    determines that there are legal impediments to continued use of
    Ejit by the people of Bikini.
      (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that if the impediments described in
    paragraph (1) do arise, the United States will cooperate with the
    Government of the Marshall Islands in assisting any person
    adversely affected by such judicial determination to remain on
    Ejit, or in locating suitable and acceptable alternative lands for
    such person's use.
      (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that paragraph (1) shall not be applied in
    a manner which would prevent the Government of the Marshall Islands
    from acting in accordance with its constitutional processes to
    resolve title and ownership claims with respect to such lands or
    from taking substitute or additional measures to meet the needs of
    the people of Bikini with their democratically expressed consent
    and approval.
    (c) Section 177 Agreement
      (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that in furtherance of the purposes of
    Article I of the Subsidiary Agreement for Implementation of Section
    177 of the Compact, the payment of the amount specified therein
    shall be made by the United States under Article I of the Agreement
    between the Government of the United States and the Government of
    the Marshall Islands for the Implementation of section 177 of the
    Compact (hereafter in this subsection referred to as the "Section
    177 Agreement") only after the Government of the Marshall Islands
    has notified the President of the United States as to which
    investment management firm has been selected by such Government to
    act as Fund Manager under Article I of the Section 177 Agreement.
      (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that in the event that the President
    determines that an investment management firm selected by the
    Government of the Marshall Islands does not meet the requirements
    specified in Article I of the Section 177 Agreement, the United
    States shall invoke the conference and dispute resolution
    procedures of Article II of Title Four of the Compact. Pending the
    resolution of such a dispute and until a qualified Fund Manager has
    been designated, the Government of the Marshall Islands shall place
    the funds paid by the United States pursuant to Article I of the
    Section 177 Agreement into an interest-bearing escrow account. Upon
    designation of a qualified Fund Manager, all funds in the escrow
    account shall be transferred to the control of such Fund Manager
    for management pursuant to the Section 177 Agreement.
      (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that if the Government of the Marshall
    Islands determines that some other investment firm should act as
    Fund Manager in place of the firm first (or subsequently) selected
    by such Government, the Government of the Marshall Islands shall so
    notify the President of the United States, identifying the firm
    selected by such Government to become Fund Manager, and the
    President shall proceed to evaluate the qualifications of such
    identified firm.
      (4) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that at the end of 15 years after the
    effective date of the Compact, the firm then acting as Fund Manager
    shall transfer to the Government of the Marshall Islands, or to
    such account as such Government shall so notify the Fund Manager,
    all remaining funds and assets being managed by the Fund Manager
    under the Section 177 Agreement.
    (d) Nuclear test effects
      In the joint resolution of January 14, 1986 (Public Law 99-239)
    Congress provided that in approving the Compact, the Congress
    understands and intends that the peoples of Bikini, Enewetak,
    Rongelap, and Utrik, who were affected by the United States nuclear
    weapons testing program in the Marshall Islands, will receive the
    amounts of $75,000,000 (Bikini); $48,750,000 (Enewetak);
    $37,500,000 (Rongelap); and $22,500,000 (Utrik), respectively,
    which amounts shall be paid out of proceeds from the fund
    established under Article I, section 1 of the subsidiary agreement
    for the implementation of section 177 of the Compact. The amounts
    specified in this subsection shall be in addition to any amounts
    which may be awarded to claimants pursuant to Article IV of the
    subsidiary agreement for the implementation of Section 177 of the
    Compact.
    (e) Espousal provisions
      (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that it is the intention of the Congress of
    the United States that the provisions of section 177 of the Compact
    of Free Association and the Agreement between the Government of the
    United States and the Government of the Marshall Islands for the
    Implementation of Section 177 of the Compact (hereafter in this
    subsection referred to as the "Section 177 Agreement") constitute a
    full and final settlement of all claims described in Articles X and
    XI of the Section 177 Agreement, and that any such claims be
    terminated and barred except insofar as provided for in the Section
    177 Agreement.
      (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that in furtherance of the intention of
    Congress as stated in paragraph (1) of this subsection, the Section
    177 Agreement is hereby ratified and approved. It is the explicit
    understanding and intent of Congress that the jurisdictional
    limitations set forth in Article XII of such Agreement are enacted
    solely and exclusively to accomplish the objective of Article X of
    such Agreement and only as a clarification of the effect of Article
    X, and are not to be construed or implemented separately from
    Article X.
    (f) DOE radiological health care program; USDA agricultural and
      food programs
      (1) Marshall Islands program
        Notwithstanding any other provision of law, upon the request of
      the Government of the Republic of the Marshall Islands, the
      President (either through an appropriate department or agency of
      the United States or by contract with a United States firm) shall
      continue to provide special medical care and logistical support
      thereto for the remaining members of the population of Rongelap
      and Utrik who were exposed to radiation resulting from the 1954
      United States thermo-nuclear "Bravo" test, pursuant to Public
      Laws 95-134 and 96-205.
      (2) Agricultural and food programs
        (A) In general
          In the joint resolution of January 14, 1986 (Public Law 99-
        239) Congress provided that notwithstanding any other
        provision of law, upon the request of the Government of the
        Marshall Islands, for the first fifteen years after the
        effective date of the Compact, the President (either through an
        appropriate department or agency of the United States or by
        contract with a United States firm or by a grant to the
        Government of the Republic of the Marshall Islands which may
        further contract only with a United States firm or a Republic
        of the Marshall Islands firm, the owners, officers and majority
        of the employees of which are citizens of the United States or
        the Republic of the Marshall Islands) shall provide technical
        and other assistance - 
            (i) without reimbursement, to continue the planting and
          agricultural maintenance program on Enewetak, as provided in
          subparagraph (C); and
            (ii) without reimbursement, to continue the food programs
          of the Bikini and Enewetak people described in section 1(d)
          of Article II of the Subsidiary Agreement for the
          Implementation of Section 177 of the Compact and for
          continued waterborne transportation of agricultural products
          to Enewetak including operations and maintenance of the
          vessel used for such purposes.
        (B) Population changes
          The President shall ensure the assistance provided under
        these programs reflects the changes in the population since the
        inception of such programs.
        (C) Planting and agricultural maintenance program
          (i) In general
            The planting and agricultural maintenance program on
          Enewetak shall be funded at a level of not less than
          $1,300,000 per year, as adjusted for inflation under section
          218 of the U.S.-RMI Compact.
          (ii) Authorization and continuing appropriation
            There is hereby authorized and appropriated to the
          Secretary of the Interior, out of any funds in the Treasury
          not otherwise appropriated, to remain available until
          expended, for each fiscal year from 2004 through 2023,
          $1,300,000, as adjusted for inflation under section 218 of
          the U.S.-RMI Compact, for grants to carry out the planting
          and agricultural maintenance program.
      (3) Payments
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that payments under this subsection shall be
      provided to such extent or in such amounts as are necessary for
      services and other assistance provided pursuant to this
      subsection. It is the sense of Congress that after the periods of
      time specified in paragraphs (1) and (2) of this subsection,
      consideration will be given to such additional funding for these
      programs as may be necessary.
    (g) Rongelap
      (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that because Rongelap was directly affected
    by fallout from a 1954 United States thermonuclear test and because
    the Rongelap people remain unconvinced that it is safe to continue
    to live on Rongelap Island, it is the intent of Congress to take
    such steps (if any) as may be necessary to overcome the effects of
    such fallout on the habitability of Rongelap Island, and to restore
    Rongelap Island, if necessary, so that it can be safely inhabited.
    Accordingly, it is the expectation of the Congress that the
    Government of the Marshall Islands shall use such portion of the
    funds specified in Article II, section 1(e) of the subsidiary
    agreement for the implementation of section 177 of the Compact as
    are necessary for the purpose of contracting with a qualified
    scientist or group of scientists to review the data collected by
    the Department of Energy relating to radiation levels and other
    conditions on Rongelap Island resulting from the thermonuclear
    test. It is the expectation of the Congress that the Government of
    the Marshall Islands, after consultation with the people of
    Rongelap, shall select the party to review such data, and shall
    contract for such review and for submission of a report to the
    President of the United States and the Congress as to the results
    thereof.
      (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that the purpose of the review referred to
    in paragraph (1) of this subsection shall be to establish whether
    the data cited in support of the conclusions as to the habitability
    of Rongelap Island, as set forth in the Department of Energy report
    entitled: "The Meaning of Radiation for Those Atolls in the
    Northern Part of the Marshall Islands That Were Surveyed in 1978",
    dated November 1982, are adequate and whether such conclusions are
    fully supported by the data. If the party reviewing the data
    concludes that such conclusions as to habitability are fully
    supported by adequate data, the report to the President of the
    United States and the Congress shall so state. If the party
    reviewing the data concludes that the data are inadequate to
    support such conclusions as to habitability or that such
    conclusions as to habitability are not fully supported by the data,
    the Government of the Marshall Islands shall contract with an
    appropriate scientist or group of scientists to undertake a
    complete survey of radiation and other effects of the nuclear
    testing program relating to the habitability of Rongelap Island.
    Such sums as are necessary for such survey and report concerning
    the results thereof and as to steps needed to restore the
    habitability of Rongelap Island are authorized to be made available
    to the Government of the Marshall Islands.
      (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that it is the intent of Congress that such
    steps (if any) as are necessary to restore the habitability of
    Rongelap Island and return the Rongelap people to their homeland
    will be taken by the United States in consultation with the
    Government of the Marshall Islands and, in accordance with its
    authority under the Constitution of the Marshall Islands, the
    Rongelap local government council.
      (4) There are hereby authorized and appropriated to the Secretary
    of the Interior, out of any funds in the Treasury not otherwise
    appropriated, to remain available until expended, for fiscal year
    2005, $1,780,000; for fiscal year 2006, $1,760,000; and for fiscal
    year 2007, $1,760,000, as the final contributions of the United
    States to the Rongelap Resettlement Trust Fund as established
    pursuant to Public Law 102-154 (105 Stat. 1009), for the purposes
    of establishing a food importation program as a part of the overall
    resettlement program of Rongelap Island.
    (h) Four Atoll health care program
      (1) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that services provided by the United States
    Public Health Service or any other United States agency pursuant to
    section 1(a) of Article II of the Agreement for the Implementation
    of Section 177 of the Compact (hereafter in this subsection
    referred to as the "Section 177 Agreement") shall be only for
    services to the people of the Atolls of Bikini, Enewetak, Rongelap,
    and Utrik who were affected by the consequences of the United
    States nuclear testing program, pursuant to the program described
    in Public Law 95-134 (91 Stat. 1159) and Public Law 96-205 (94
    Stat. 84) and their descendants (and any other persons identified
    as having been so affected if such identification occurs in the
    manner described in such public laws). Nothing in this subsection
    shall be construed as prejudicial to the views or policies of the
    Government of the Marshall Islands as to the persons affected by
    the consequences of the United States nuclear testing program.
      (2) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that at the end of the first year after the
    effective date of the Compact and at the end of each year
    thereafter, the providing agency or agencies shall return to the
    Government of the Marshall Islands any unexpended funds to be
    returned to the Fund Manager (as described in Article I of the
    Section 177 Agreement) to be covered into the Fund to be available
    for future use.
      (3) In the joint resolution of January 14, 1986 (Public Law 99-
    239) Congress provided that the Fund Manager shall retain the
    funds returned by the Government of the Marshall Islands pursuant
    to paragraph (2) of this subsection, shall invest and manage such
    funds, and at the end of 15 years after the effective date of the
    Compact, shall make from the total amount so retained and the
    proceeds thereof annual disbursements sufficient to continue to
    make payments for the provision of health services as specified in
    paragraph (1) of this subsection to such extent as may be provided
    in contracts between the Government of the Marshall Islands and
    appropriate United States providers of such health services.
    (i) Enjebi Community Trust Fund
      In the joint resolution of January 14, 1986 (Public Law 99-239)
    Congress provided that notwithstanding any other provision of law,
    the Secretary of the Treasury shall establish on the books of the
    Treasury of the United States a fund having the status specified in
    Article V of the subsidiary agreement for the implementation of
    Section 177 of the Compact, to be known as the "Enjebi Community
    Trust Fund" (hereafter in this subsection referred to as the
    "Fund"), and shall credit to the Fund the amount of $7,500,000.
    Such amount, which shall be ex gratia, shall be in addition to and
    not charged against any other funds provided for in the Compact and
    its subsidiary agreements, this joint resolution, or any other Act.
    Upon receipt by the President of the United States of the agreement
    described in this subsection, the Secretary of the Treasury, upon
    request of the Government of the Marshall Islands, shall transfer
    the Fund to the Government of the Marshall Islands, provided that
    the Government of the Marshall Islands agrees as follows:
      (1) Enjebi trust agreement
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that the Government of the Marshall Islands and
      the Enewetak Local Government Council, in consultation with the
      people of Enjebi, shall provide for the creation of the Enjebi
      Community Trust Fund and the employment of the manager of the
      Enewetak Fund established pursuant to the Section 177 Agreement
      as trustee and manager of the Enjebi Community Trust Fund, or,
      should the manager of the Enewetak Fund not be acceptable to the
      people of Enjebi, another United States investment manager with
      substantial experience in the administration of trusts and with
      funds under management in excess of $250,000,000.
      (2) Monitor conditions
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that upon the request of the Government of the
      Marshall Islands, the United States shall monitor the radiation
      and other conditions on Enjebi and within one year of receiving
      such a request shall report to the Government of the Marshall
      Islands when the people of Enjebi may resettle Enjebi under
      circumstances where the radioactive contamination at Enjebi,
      including contamination derived from consumption of locally grown
      food products, can be reduced or otherwise controlled to meet
      whole body Federal radiation protection standards for the general
      population, including mean annual dose and mean 30-year
      cumulative dose standards.
      (3) Resettlement of Enjebi
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that in the event that the United States
      determines that the people of Enjebi can within 25 years of
      January 14, 1986, resettle Enjebi under the conditions set forth
      in paragraph (2) of this subsection, then upon such determination
      there shall be available to the people of Enjebi from the Fund
      such amounts as are necessary for the people of Enjebi to do the
      following, in accordance with a plan developed by the Enewetak
      Local Government Council and the people of Enjebi, and concurred
      with by the Government of the Marshall Islands to assure
      consistency with the government's overall economic development
      plan:
          (A) Establish a community on Enjebi Island for the use of the
        people of Enjebi.
          (B) Replant Enjebi with appropriate food-bearing and other
        vegetation.
      (4) Resettlement of other location
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that in the event that the United States
      determines that within 25 years of January 14, 1986, the people
      of Enjebi cannot resettle Enjebi without exceeding the radiation
      standards set forth in paragraph (2) of this subsection, then the
      fund manager shall be directed by the trust instrument to
      distribute the Fund to the people of Enjebi for their
      resettlement at some other location in accordance with a plan,
      developed by the Enewetak Local Government Council and the people
      of Enjebi and concurred with by the Government of the Marshall
      Islands, to assure consistency with the government's overall
      economic development plan.
      (5) Interest from Fund
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that prior to and during the distribution of
      the corpus of the Fund pursuant to paragraphs (3) and (4) of this
      subsection, the people of Enjebi may, if they so request, receive
      the interest earned by the Fund on no less frequent a basis than
      quarterly.
      (6) Disclaimer of liability
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      Congress provided that neither under the laws of the Marshall
      Islands nor under the laws of the United States, shall the
      Government of the United States be liable for any loss or damage
      to person or property in respect to the resettlement of Enjebi by
      the people of Enjebi, pursuant to the provision of this
      subsection or otherwise.
    (j) Bikini Atoll cleanup
      (1) Declaration of policy
        In the joint resolution of January 14, 1986 (Public Law 99-
      239), the Congress determined and declared that it is the policy
      of the United States, to be supported by the full faith and
      credit of the United States, that because the United States,
      through its nuclear testing and other activities, rendered Bikini
      Atoll unsafe for habitation by the people of Bikini, the United
      States will fulfill its responsibility for restoring Bikini Atoll
      to habitability, as set forth in paragraph (2) and (3) of this
      subsection.
      (2) Cleanup funds
        The joint resolution of January 14, 1986 (Public Law 99-239)
      authorized to be appropriated such sums as necessary to implement
      the settlement agreement of March 15, 1985, in The People of
      Bikini, et al. against United States of America, et al., Civ. No.
      84-0425 (D. Ha.).
      (3) Conditions of funding
        In the joint resolution of January 14, 1986 (Public Law 99-239)
      the Congress provided that the funds referred to in paragraph (2)
      were to be made available pursuant to Article VI, Section 1 of
      the Compact Section 177 Agreement upon completion of the events
      set forth in the settlement agreement referred to in paragraph
      (2) of this subsection.
    (k) Agreement on audits
      The Comptroller General (and his duly authorized representatives)
    shall have the authorities necessary to carry out his
    responsibilities under section 232 of the U.S.-RMI Compact and the
    agreement referred to in section 462(b)(4) of the U.S.-RMI Compact,
    including the following authorities:
      (1) General authority of the Comptroller General to audit
        (A) The Comptroller General of the United States (and his duly
      authorized representatives) shall have the authority to audit - 
          (i) all grants, program assistance, and other assistance
        provided to the Government of the Republic of the Marshall
        Islands under Articles I and II of Title Two of the U.S.-RMI
        Compact; and
          (ii) any other assistance provided by the Government of the
        United States to the Government of the Republic of the Marshall
        Islands.

      Such authority shall include authority for the Comptroller
      General to conduct or cause to be conducted any of the audits
      provided for in section 232 of the U.S.-RMI Compact. The
      authority provided in this paragraph shall continue for at least
      three years after the last such grant has been made or assistance
      has been provided.
        (B) The Comptroller General (and his duly authorized
      representatives) shall also have authority to review any audit
      conducted by or on behalf of the Government of the United States.
      In this connection, the Comptroller General shall have access to
      such personnel and to such records, documents, working papers,
      automated data and files, and other information relevant to such
      review.
      (2) Comptroller General access to records
        (A) In carrying out paragraph (1), the Comptroller General (and
      his duly authorized representatives) shall have such access to
      the personnel and (without cost) to records, documents, working
      papers, automated data and files, and other information relevant
      to such audits. The Comptroller General may duplicate any such
      records, documents, working papers, automated data and files, or
      other information relevant to such audits.
        (B) Such records, documents, working papers, automated data and
      files, and other information regarding each such grant or other
      assistance shall be maintained for at least five years after the
      date such grant or assistance was provided and in a manner that
      permits such grants, assistance and payments to be accounted for
      distinct from any other funds of the Government of the Republic
      of the Marshall Islands.
      (3) Status of Comptroller General representatives
        The Comptroller General and his duly authorized representatives
      shall be immune from civil and criminal process relating to words
      spoken or written and all acts performed by them in their
      official capacity and falling within their functions, except
      insofar as such immunity may be expressly waived by the
      Government of the United States. The Comptroller General and his
      duly authorized representatives shall not be liable to arrest or
      detention pending trial, except in the case of a grave crime and
      pursuant to a decision by a competent judicial authority, and
      such persons shall enjoy immunity from seizure of personal
      property, immigration restrictions, and laws relating to alien
      registration, fingerprinting, and the registration of foreign
      agents. Such persons shall enjoy the same taxation exemptions as
      are set forth in Article 34 of the Vienna Convention on
      Diplomatic Relations. The privileges, exemptions and immunities
      accorded under this paragraph are not for the personal benefit of
      the individuals concerned but are to safeguard the independent
      exercise of their official functions. Without prejudice to those
      privileges, exemptions and immunities, it is the duty of all such
      persons to respect the laws and regulations of the Government of
      the Republic of the Marshall Islands.
      (4) Audits defined
        As used in this subsection, the term "audits" includes
      financial, program, and management audits, including determining -
       
          (A) whether the Government of the Republic of the Marshall
        Islands has met the requirements set forth in the U.S.-RMI
        Compact, or any related agreement entered into under the U.S.-
        RMI Compact, regarding the purposes for which such grants and
        other assistance are to be used; and
          (B) the propriety of the financial transactions of the
        Government of the Republic of the Marshall Islands pursuant to
        such grants or assistance.
      (5) Cooperation by the Republic of the Marshall Islands
        The Government of the Republic of the Marshall Islands will
      cooperate fully with the Comptroller General of the United States
      in the conduct of such audits as the Comptroller General
      determines necessary to enable the Comptroller General to fully
      discharge his responsibilities under this joint resolution.
    (l) Kwajalein
      (1) Statement of policy
        It is the policy of the United States that payment of funds by
      the Government of the Marshall Islands to the landowners of
      Kwajalein Atoll in accordance with the land use agreement dated
      October 19, 1982, or as amended or superseded, and any related
      allocation agreements, is required in order to ensure that the
      Government of the United States will be able to fulfill its
      obligation and responsibilities under Title Three of the U.S.-RMI
      Compact and the subsidiary agreements concluded pursuant to the
      U.S.-RMI Compact.
      (2) Failure to pay
        (A) In general
          If the Government of the Marshall Islands fails to make
        payments in accordance with paragraph (1), the Government of
        the United States shall initiate procedures under section 313
        of the U.S.-RMI Compact and consult with the Government of the
        Marshall Islands with respect to the basis for the nonpayment
        of funds.
        (B) Resolution
          The United States shall expeditiously resolve the matter of
        any nonpayment of funds required under paragraph (1) pursuant
        to section 313 of the U.S.-RMI Compact and the authority and
        responsibility of the Government of the United States for
        security and defense matters in or relating to the Marshall
        Islands. This paragraph shall be enforced, as may be necessary,
        in accordance with section 1921d(e) of this title.
      (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 December 17, 2003, 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 December 17, 2003, 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.

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 103, Dec. 17, 2003, 117 Stat.
    2727.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The joint resolution of January 14, 1986 (Public Law 99-239),
    referred to in text, is Pub. L. 99-239, Jan. 14, 1986, 99 Stat.
    1770, as amended, known as the Compact of Free Association Act of
    1985, which is classified principally to part A of this subchapter
    and chapter 19 (Sec. 2001 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1901 of this title and Tables.
      Public Law 95-134, referred to in subsecs. (f)(1) and (h)(1), is
    Pub. L. 95-134, Oct. 15, 1977, 91 Stat. 1159, as amended, popularly
    known as the Omnibus Territories Act of 1977. For complete
    classification of this Act to the Code, see Tables.
      Public Law 96-205, referred to in subsecs. (f)(1) and (h)(1), is
    Pub. L. 96-205, Mar. 12, 1980, 94 Stat. 84, as amended. For
    complete classification of this Act to the Code, see Tables.
      Public Law 102-154, referred to in subsec. (g)(4), is Pub. L. 102-
    154, Nov. 13, 1991, 105 Stat. 990, as amended, known as the
    Department of the Interior and Related Agencies Appropriations Act,
    1992. For complete classification of this Act to the Code, see
    Tables.
      This joint resolution, referred to in subsecs. (i) and (k)(5), is
    Pub. L. 108-188, Dec. 17, 2003, 117 Stat. 2720, known as the
    Compact of Free Association Amendments Act of 2003, which enacted
    this part and provisions set out as notes under sections 1901 and
    1921 of this title and amended provisions set out as a note under
    section 3101 of Title 5, Government Organization and Employees. For
    complete classification of this Act to the Code, see Short Title of
    2003 Amendment note set out under section 1901 of this title and
    Tables.

-End-



-CITE-
    48 USC Sec. 1921c                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921c. Interpretation of and United States policy regarding
      U.S.-FSM Compact and U.S.-RMI Compact

-STATUTE-
    (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
    2151n and 2304 of title 22, a full and complete report regarding
    the status of internationally recognized human rights in the
    Federated States of Micronesia and the Republic of the Marshall
    Islands.
    (b) Immigration and passport security
      (1) Naturalized citizens
        The rights of a bona fide naturalized citizen of the Federated
      States of Micronesia or the Republic of the Marshall Islands to
      enter the United States, to lawfully engage therein in
      occupations, and to establish residence therein as a
      nonimmigrant, to the extent such rights are provided under
      section 141 of the U.S.-FSM Compact and U.S.-RMI Compact, shall
      not be deemed to extend to any such naturalized citizen with
      respect to whom circumstances associated with the acquisition of
      the status of a naturalized citizen are such as to allow a
      reasonable inference, on the part of appropriate officials of the
      United States and subject to United States procedural
      requirements, that such naturalized status was acquired primarily
      in order to obtain such rights.
      (2) Passports
        It is the sense of Congress that up to $250,000 of the grant
      assistance provided to the Federated States of Micronesia
      pursuant to section 211(a)(4) of the U.S.-FSM Compact, and up to
      $250,000 of the grant assistance provided to the Republic of the
      Marshall Islands pursuant to section 211(a)(4) of the U.S.-RMI
      Compact (or a greater amount of the section 211(a)(4) grant, if
      mutually agreed between the Government of the United States and
      the government of the Federated States of Micronesia or the
      government of the Republic of the Marshall Islands), be used for
      the purpose of increasing the machine-readability and security of
      passports issued by such jurisdictions. It is further the sense
      of Congress that such funds be obligated by September 30, 2004
      and in the amount and manner specified by the Secretary of State
      in consultation with the Secretary of Homeland Security and,
      respectively, with the government of the Federated States of
      Micronesia and the government of the Republic of the Marshall
      Islands. The United States Government is authorized to require
      that passports used for the purpose of seeking admission under
      section 141 of the U.S.-FSM Compact and the U.S.-RMI Compact
      contain the security enhancements funded by such assistance.
      (3) Information-sharing
        It is the sense of Congress that the governments of the
      Federated States of Micronesia and the Republic of the Marshall
      Islands develop, prior to October 1, 2004, the capability to
      provide reliable and timely information as may reasonably be
      required by the Government of the United States in enforcing
      criminal and security-related grounds of inadmissibility and
      deportability under the Immigration and Nationality Act, as
      amended [8 U.S.C. 1101 et seq.], and shall provide such
      information to the Government of the United States.
      (4) Transition; construction of sections 141(a)(3) and 141(a)(4)
        of the U.S.-FSM Compact and U.S.-RMI Compact
        The words "the effective date of this Compact, as amended" in
      sections 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact and the
      U.S.-RMI Compact shall be construed to read, "on the day prior to
      the enactment by the United States Congress of the Compact of
      Free Association Amendments Act of 2003.".
    (c) Nonalienation of lands
      Congress endorses and encourages the maintenance of the policies
    of the Government of the Federated States of Micronesia and the
    Government of the Republic of the Marshall Islands to regulate, in
    accordance with their Constitutions and laws, the alienation of
    permanent interests in real property so as to restrict the
    acquisition of such interests to persons of Federated States of
    Micronesia citizenship and the Republic of the Marshall Islands
    citizenship, respectively.
    (d) Nuclear waste disposal
      In approving the U.S.-FSM Compact and the U.S.-RMI Compact,
    Congress understands that the Government of the Federated States of
    Micronesia and the Government of the Republic of the Marshall
    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 part - 
          (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 [8 U.S.C. 1101(a)(33)].
      (3) Authorization and continuing appropriation
        There is hereby authorized and appropriated to the Secretary of
      the Interior, out of any funds in the Treasury not otherwise
      appropriated, to remain available until expended, for each fiscal
      year from 2004 through 2023, $30,000,000 for grants to affected
      jurisdictions to aid in defraying costs incurred by affected
      jurisdictions as a result of increased demands placed on health,
      educational, social, or public safety services or infrastructure
      related to such services due to the residence in affected
      jurisdictions of qualified nonimmigrants from the Republic of the
      Marshall Islands, the Federated States of Micronesia, or the
      Republic of Palau. The grants shall be - 
          (A) awarded and administered by the Department of the
        Interior, Office of Insular Affairs, or any successor thereto,
        in accordance with regulations, policies and procedures
        applicable to grants so awarded and administered; and
          (B) used only for health, educational, social, or public
        safety services, or infrastructure related to such services,
        specifically affected by qualified nonimmigrants.
      (4) Enumeration
        The Secretary of the Interior shall conduct periodic
      enumerations of qualified nonimmigrants in each affected
      jurisdiction. The enumerations - 
          (A) shall be conducted at such intervals as the Secretary of
        the Interior shall determine, but no less frequently than every
        five years, beginning in fiscal year 2003;
          (B) shall be supervised by the United States Bureau of the
        Census or such other organization as the Secretary of the
        Interior may select; and
          (C) after fiscal year 2003, shall be funded by the Secretary
        of the Interior by deducting such sums as are necessary, but
        not to exceed $300,000 as adjusted for inflation pursuant to
        section 217 of the U.S.-FSM Compact with fiscal year 2003 as
        the base year, per enumeration, from funds appropriated
        pursuant to the authorization contained in paragraph (3) of
        this subsection.
      (5) Allocation
        The Secretary of the Interior shall allocate to the government
      of each affected jurisdiction, on the basis of the results of the
      most recent enumeration, grants in an aggregate amount equal to
      the total amount of funds appropriated under paragraph (3) of
      this subsection, as reduced by any deductions authorized by
      subparagraph (C) of paragraph (4) of this subsection, multiplied
      by a ratio derived by dividing the number of qualified
      nonimmigrants in such affected jurisdiction by the total number
      of qualified nonimmigrants in all affected jurisdictions.
      (6) Authorization for health care reimbursement
        There are hereby authorized to be appropriated to the Secretary
      of the Interior such sums as may be necessary to reimburse health
      care institutions in the affected jurisdictions for costs
      resulting from the migration of citizens of the Republic of the
      Marshall Islands, the Federated States of Micronesia and the
      Republic of Palau to the affected jurisdictions as a result of
      the implementation of the Compact of Free Association, approved
      by Public Law 99-239, or the approval of the U.S.-FSM Compact and
      the U.S.-RMI Compact by this resolution.
      (7) Use of DOD medical facilities and National Health Service
        Corps
        (A) DOD medical facilities
          The Secretary of Defense shall make available, on a space
        available and reimbursable basis, the medical facilities of the
        Department of Defense for use by citizens of the Federated
        States of Micronesia and the Republic of the Marshall Islands
        who are properly referred to the facilities by government
        authorities responsible for provision of medical services in
        the Federated States of Micronesia, the Republic of the
        Marshall Islands, the Republic of Palau and the affected
        jurisdictions.
        (B) National Health Service Corps
          The Secretary of Health and Human Services shall continue to
        make the services of the National Health Service Corps
        available to the residents of the Federated States of
        Micronesia and the Republic of the Marshall Islands to the same
        extent and for so long as such services are authorized to be
        provided to persons residing in any other areas within or
        outside the United States.
        (C) Authorization of appropriations
          There are authorized to be appropriated to carry out this
        paragraph such sums as are necessary for each fiscal year.
      (8) Reporting requirement
        Not later than one year after December 17, 2003, and at one
      year intervals thereafter, the Governors of Guam, the State of
      Hawaii, the Commonwealth of the Northern Mariana Islands, and
      American Samoa may provide to the Secretary of the Interior by
      February 1 of each year their comments with respect to the
      impacts of the Compacts on their respective jurisdiction. The
      Secretary of the Interior, upon receipt of any such comments,
      shall report to the Congress not later than May 1 of each year to
      include the following:
          (A) The Governor's comments on the impacts of the Compacts as
        well as the Administration's analysis of such impact.
          (B) The Administration views on any recommendations for
        corrective action to eliminate those consequences as proposed
        by such Governors.
          (C) With regard to immigration, statistics concerning the
        number of persons availing themselves of the rights described
        in section 141(a) of the Compact during the year covered by
        each report.
          (D) With regard to trade, an analysis of the impact on the
        economy of American Samoa resulting from imports of canned tuna
        into the United States from the Federated States of Micronesia,
        and the Republic of the Marshall Islands.
      (9) Reconciliation of unreimbursed impact expenses
        (A) In general
          Notwithstanding any other provision of law, the President, to
        address previously accrued and unreimbursed impact expenses,
        may at the request of the Governor of Guam or the Governor of
        the Commonwealth of the Northern Mariana Islands, reduce,
        release, or waive all or part of any amounts owed by the
        Government of Guam or the Government of the Commonwealth of the
        Northern Mariana Islands (or either government's autonomous
        agencies or instrumentalities), respectively, to any
        department, agency, independent agency, office, or
        instrumentality of the United States.
        (B) Terms and conditions
          (i) Substantiation of impact costs
            Not later than 120 days after December 17, 2003, the
          Governor of Guam and the Governor of the Commonwealth of the
          Northern Mariana Islands shall each submit to the Secretary
          of the Interior a report, prepared in consultation with an
          independent accounting firm, substantiating unreimbursed
          impact expenses claimed for the period from January 14, 1986,
          through September 30, 2003. Upon request of the Secretary of
          the Interior, the Governor of Guam and the Governor of the
          Commonwealth of the Northern Mariana Islands shall submit to
          the Secretary of the Interior copies of all documents upon
          which the report submitted by that Governor under this clause
          was based.
          (ii) Congressional notification
            The President shall notify Congress of his intent to
          exercise the authority granted in subparagraph (A).
          (iii) Congressional review and comment
            Any reduction, release, or waiver under this Act shall not
          take effect until 60 days after the President notifies
          Congress of his intent to approve a request of the Governor
          of Guam or the Governor of the Commonwealth of the Northern
          Mariana Islands. In exercising his authority under this
          section and in determining whether to give final approval to
          a request, the President shall take into consideration
          comments he may receive after Congressional review.
          (iv) Expiration
            The authority granted in subparagraph (A) shall expire on
          February 28, 2005.
      (10) Authorization of appropriations for grants
        There are hereby authorized to the Secretary of the Interior
      for each of fiscal years 2004 through 2023 such sums as may be
      necessary for grants to the governments of Guam, the State of
      Hawaii, the Commonwealth of the Northern Mariana Islands, and
      American Samoa, as a result of increased demands placed on
      educational, social, or public safety services or infrastructure
      related to service due to the presence in Guam, Hawaii, the
      Commonwealth of the Northern Mariana Islands, and American Samoa
      of qualified nonimmigrants from the Federated States of
      Micronesia, the Republic of the Marshall Islands, and the
      Republic of Palau.
    (f) Foreign loans
      Congress hereby reaffirms the United States position that the
    United States Government is not responsible for foreign loans or
    debt obtained by the Governments of the Federated States of
    Micronesia and the Republic of the Marshall Islands.
    (g) Sense of Congress concerning funding of public infrastructure
      It is the sense of Congress that not less than 30 percent of the
    United States annual grant assistance provided under section 211 of
    the Compact of Free Association, as amended, between the Government
    of the United States of America and the Government of the Federated
    States of Micronesia, and not less than 30 percent of the total
    amount of section 211 funds allocated to each of the States of the
    Federated States of Micronesia, shall be invested in infrastructure
    improvements and maintenance in accordance with section 211(a)(6).
    It is further the sense of Congress that not less than 30 percent
    of the United States annual grant assistance provided under section
    211 of the Compact of Free Association, as amended, between the
    Government of the United States of America and the Government of
    the Republic of the Marshall Islands, shall be invested in
    infrastructure improvements and maintenance in accordance with
    section 211(d).
    (h) Reports and reviews
      (1) Report by the President
        Not later than the end of the first full calendar year
      following enactment of this resolution, and not later than
      December 31 of each year thereafter, the President shall report
      to Congress regarding the Federated States of Micronesia and the
      Republic of the Marshall Islands, including but not limited to - 
          (A) general social, political, and economic conditions,
        including estimates of economic growth, per capita income, and
        migration rates;
          (B) the use and effectiveness of United States financial,
        program, and technical assistance;
          (C) the status of economic policy reforms including but not
        limited to progress toward establishing self-sufficient tax
        rates;
          (D) the status of the efforts to increase investment
        including: the rate of infrastructure investment of U.S.
        financial assistance under the U.S.-FSM Compact and the U.S.-
        RMI Compact; non-U.S. contributions to the trust funds, and
        the level of private investment; and
          (E) recommendations on ways to increase the effectiveness of
        United States assistance and to meet overall economic
        performance objectives, including, if appropriate,
        recommendations to Congress to adjust the inflation rate or to
        adjust the contributions to the Trust Funds based on non-U.S.
        contributions.
      (2) Review
        During the year of the fifth, tenth, and fifteenth
      anniversaries of December 17, 2003, 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 December 17,
      2003, and every 5 years thereafter, the Comptroller General of
      the United States shall submit to Congress a report on the
      Federated States of Micronesia and the Republic of the Marshall
      Islands including the topics set forth in paragraphs (1) (A)
      through (E) above, and on the effectiveness of administrative
      oversight by the United States.
    (i) Construction of section 141(f)
      Section 141(f)(2) of the Compact of Free Association, as amended,
    between the Government of the United States of America and the
    Government of the Federated States of Micronesia and of the Compact
    of Free Association, as amended, between the Government of the
    United States of America and the Government of the Republic of the
    Marshall Islands, shall be construed as though, after "may by
    regulations prescribe", there were included the following: ",
    except that any such regulations that would have a significant
    effect on the admission, stay and employment privileges provided
    under this section shall not become effective until 90 days after
    the date of transmission of the regulations to the Committee on
    Energy and Natural Resources and the Committee on the Judiciary of
    the Senate and the Committee on Resources, the Committee on
    International Relations, and the Committee on the Judiciary of the
    House of Representatives".
    (j) Inflation adjustment
      As of Fiscal Year 2015, if the United States Gross Domestic
    Product Implicit Price Deflator average for Fiscal Years 2009
    through 2013 is greater than United States Gross Domestic Product
    Implicit Price Deflator average for Fiscal Years 2004 through 2008
    (as reported in the Survey of Current Business or subsequent
    publication and compiled by the Department of Interior), then
    section 217 of the U.S.-FSM Compact, paragraph 5 of Article II of
    the U.S.-FSM Fiscal Procedures Agreement, section 218 of the U.S.-
    RMI Compact, and paragraph 5 of Article II of the U.S.-RMI Fiscal
    Procedures Agreement shall be construed as if "the full" appeared
    in place of "two-thirds of the" each place those words appear. If
    an inflation adjustment is made under this subsection, the base
    year for calculating the inflation adjustment shall be fiscal year
    2014.
    (k) Participation by secondary schools in the Armed Services
      Vocational Aptitude Battery (ASVAB) Student Testing Program
      In furtherance of the provisions of Title Three, Article IV,
    Section 341 of the U.S.-FSM and the U.S.-RMI Compacts, the purpose
    of which is to establish the privilege to volunteer for service in
    the U.S. Armed Forces, it is the sense of Congress that, to
    facilitate eligibility of FSM and RMI secondary school students to
    qualify for such service, the Department of Defense may extend the
    Armed Services Vocational Aptitude Battery (ASVAB) Student Testing
    Program (STP) and the ASVAB Career Exploration Program to selected
    secondary Schools in the FSM and the RMI to the extent such
    programs are available to Department of Defense Dependent Schools
    located in foreign jurisdictions.

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 104, Dec. 17, 2003, 117 Stat.
    2737.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Immigration and Nationality Act, referred to in subsec.
    (b)(3), is act June 27, 1952, ch. 477, 66 Stat. 163, as amended,
    which is classified principally to chapter 12 (Sec. 1101 et seq.)
    of Title 8, Aliens and Nationality. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1101 of Title 8 and Tables.
      The enactment by the United States Congress of the Compact of
    Free Association Amendments Act of 2003, referred to in subsec.
    (b)(4), is the enactment of Pub. L. 108-188, which was approved
    Dec. 17, 2003.
      The Palau Compact, referred to in subsec. (e)(2)(B), probably
    means the Compact of Free Association between the United States and
    the Government of Palau, which is contained in section 201 of Pub.
    L. 99-658, set out as a note under section 1931 of this title.
      The Compact of Free Association, approved by Public Law 99-239,
    referred to in subsec. (e)(6), is the Compact of Free Association
    between the Governments of the Marshall Islands and the Federated
    States of Micronesia, which is contained in section 201 of Pub. L.
    99-239, as amended, set out as a note under section 1901 of this
    title.
      This resolution, referred to in subsec. (e)(6), and this Act,
    referred to in subsec. (e)(9)(B)(iii), are references to Pub. L.
    108-188, Dec. 17, 2003, 117 Stat. 2720, known as the Compact of
    Free Association Amendments Act of 2003, which enacted this part
    and provisions set out as notes under sections 1901 and 1921 of
    this title and amended provisions set out as a note under section
    3101 of Title 5, Government Organization and Employees. For
    complete classification of this Act to the Code, see Short Title of
    2003 Amendment note set out under section 1901 of this title and
    Tables.
      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, referred to in subsecs. (g) and
    (i), is contained in section 201(a) of Pub. L. 108-188, set out as
    a note under section 1921 of this title.
      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, referred to in subsecs. (g)
    and (i), is contained in section 201(b) of Pub. L. 108-188, set out
    as a note under section 1921 of this title.
      The enactment of this resolution, referred to in subsec. (h)(1),
    is the enactment of Pub. L. 108-188, which was approved Dec. 17,
    2003.


-EXEC-
                     ASSIGNMENT OF REPORTING FUNCTIONS                 
      Memorandum of President of the United States, July 21, 2005, 70
    F.R. 43249, provided:
      Memorandum for the Secretary of the Interior
      By virtue of the authority vested in me by the Constitution and
    the laws of the United States, including section 301 of title 3,
    United States Code, I hereby assign to you the functions of the
    President under section 104(h) of the Compact of Free Association
    Amendments Act of 2003 (Public Law 108-188) [48 U.S.C. 1921c(h)].
      You are authorized and directed to publish this memorandum in the
    Federal Register.
                                                         George W. Bush.

-End-



-CITE-
    48 USC Sec. 1921d                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921d. Supplemental provisions

-STATUTE-
    (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 subsection (f) of this section
    and section 1921g(a) of this title shall be made to the relevant
    agencies in accordance with the terms of the appropriations for
    such services and programs.
      (4) Federal agencies providing programs and services to the
    Federated States of Micronesia and the Republic of the Marshall
    Islands shall coordinate with the Secretaries of the Interior and
    State regarding provision of such programs and services. The
    Secretaries of the Interior and State shall consult with
    appropriate officials of the Asian Development Bank and with the
    Secretary of the Treasury regarding overall economic conditions in
    the Federated States of Micronesia and the Republic of the Marshall
    Islands and regarding the activities of other donors of assistance
    to the Federated States of Micronesia and the Republic of the
    Marshall Islands.
      (5) United States Government employees in either the Federated
    States of Micronesia or the Republic of the Marshall Islands are
    subject to the authority of the United States Chief of Mission,
    including as elaborated in section 3927 of title 22 and the
    President's Letter of Instruction to the United States Chief of
    Mission and any order or directive of the President in effect from
    time to time.
      (6) Interagency group on freely associated states' affairs. - 
        (A) In general. - The President is hereby authorized to appoint
      an Interagency Group on Freely Associated States' Affairs to
      provide policy guidance and recommendations on implementation of
      the U.S.-FSM Compact and the U.S.-RMI Compact to Federal
      departments and agencies.
        (B) Secretaries. - It is the sense of Congress that the
      Secretary of State and the Secretary of the Interior shall be
      represented on the Interagency Group.

      (7) United states appointees to joint committees. - 
        (A) Joint economic management committee. - 
          (i) In general. - The three United States appointees (United
        States chair plus two members) to the Joint Economic Management
        Committee provided for in section 213 of the U.S.-FSM Compact
        and Article III of the U.S.-FSM Fiscal Procedures Agreement
        referred to in section 462(b)(4) of the U.S.-FSM Compact shall
        be United States Government officers or employees.
          (ii) Departments. - It is the sense of Congress that 2 of the
        3 appointees should be designated from the Department of State
        and the Department of the Interior, and that U.S. officials of
        the Asian Development Bank shall be consulted in order to
        properly coordinate U.S. and Asian Development Bank financial,
        program, and technical assistance.
          (iii) Additional scope. - Section 213 of the U.S.-FSM Compact
        shall be construed to read as though the phrase, "the
        implementation of economic policy reforms to encourage
        investment and to achieve self-sufficient tax rates," were
        inserted after "with particular focus on those parts of the
        plan dealing with the sectors identified in subsection (a) of
        section 211".

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

      (8) Oversight and coordination. - It is the sense of Congress
    that the Secretary of State and the Secretary of the Interior shall
    ensure that there are personnel resources committed in the
    appropriate numbers and locations to ensure effective oversight of
    United States assistance, and effective coordination of assistance
    among United States agencies and with other international donors
    such as the Asian Development Bank.
      (9) The United States voting members (United States chair plus
    two or more members) of the Trust Fund Committee appointed by the
    Government of the United States pursuant to Article 7 of the Trust
    Fund Agreement implementing section 215 of the U.S.-FSM Compact and
    referred to in section 462(b)(5) of the U.S.-FSM Compact and any
    alternates designated by the Government of the United States shall
    be United States Government officers or employees. The United
    States voting members (United States chair plus two or more
    members) of the Trust Fund Committee appointed by the Government of
    the United States pursuant to Article 7 of the Trust Fund Agreement
    implementing section 216 of the U.S.-RMI Compact and referred to in
    section 462(b)(5) of the U.S.-RMI Compact and any alternates
    designated by the Government of the United States shall be United
    States Government officers or employees. It is the sense of
    Congress that the appointees should be designated from the
    Department of State, the Department of the Interior, and the
    Department of the Treasury.
      (10) The Trust Fund Committee provided for in Article 7 of the
    U.S.-FSM Trust Fund Agreement implementing section 215 of the U.S.-
    FSM Compact shall be a nonprofit corporation incorporated under
    the laws of the District of Columbia. To the extent that any law,
    rule, regulation or ordinance of the District of Columbia, or of
    any State or political subdivision thereof in which the Trust Fund
    Committee is incorporated or doing business, impedes or otherwise
    interferes with the performance of the functions of the Trust Fund
    Committee pursuant to this joint resolution, such law, rule,
    regulation, or ordinance shall be deemed to be preempted by this
    joint resolution. The Trust Fund Committee provided for in Article
    7 of the U.S.-RMI Trust Fund Agreement implementing section 216 of
    the U.S.-RMI Compact shall be a non-profit corporation incorporated
    under the laws of the District of Columbia. To the extent that any
    law, rule, regulation or ordinance of the District of Columbia, or
    of any State or political subdivision thereof in which the Trust
    Fund Committee is incorporated or doing business, impedes or
    otherwise interferes with the performance of the functions of the
    Trust Fund Committee pursuant to this joint resolution, such law,
    rule, regulation, or ordinance shall be deemed to be preempted by
    this joint resolution.
    (c) Continuing Trust Territory authorization
      The authorization provided by the Act of June 30, 1954, as
    amended (68 Stat. 330) shall remain available after the effective
    date of the Compact with respect to the Federated States of
    Micronesia and the Republic of the Marshall Islands for the
    following purposes:
        (1) Prior to October 1, 1986, for any purpose authorized by the
      Compact or the joint resolution of January 14, 1986 (Public Law
      99-239).
        (2) Transition purposes, including but not limited to,
      completion of projects and fulfillment of commitments or
      obligations; termination of the Trust Territory Government and
      termination of the High Court; health and education as a result
      of exceptional circumstances; ex gratia contributions for the
      populations of Bikini, Enewetak, Rongelap, and Utrik; and
      technical assistance and training in financial management,
      program administration, and maintenance of infrastructure.
    (d) Survivability
      In furtherance of the provisions of Title Four, Article V,
    sections 452 and 453 of the U.S.-FSM Compact and the U.S.-RMI
    Compact, any provisions of the U.S.-FSM Compact or the U.S.-RMI
    Compact which remain effective after the termination of the U.S.-
    FSM Compact or U.S.-RMI Compact by the act of any party thereto
    and which are affected in any manner by provisions of this part
    shall remain subject to such provisions.
    (e) Noncompliance sanctions; actions incompatible with United
      States authority
      Congress expresses its understanding that the Governments of the
    Federated States of Micronesia and the Republic of the Marshall
    Islands will not act in a manner incompatible with the authority
    and responsibility of the United States for security and defense
    matters in or related to the Federated States of Micronesia or the
    Republic of the Marshall Islands pursuant to the U.S.-FSM Compact
    or the U.S.-RMI Compact, including the agreements referred to in
    sections 462(a)(2) of the U.S.-FSM Compact and 462(a)(5) of the
    U.S.-RMI Compact. Congress further expresses its intention that any
    such act on the part of either such Government will be viewed by
    the United States as a material breach of the U.S.-FSM Compact or
    U.S.-RMI Compact. The Government of the United States reserves the
    right in the event of such a material breach of the U.S.-FSM
    Compact by the Government of the Federated States of Micronesia or
    the U.S.-RMI Compact by the Government of the Republic of the
    Marshall Islands to take action, including (but not limited to) the
    suspension in whole or in part of the obligations of the Government
    of the United States to that Government.
    (f) Continuing programs and laws
      (1) Federated States of Micronesia and Republic of the Marshall
        Islands
        In addition to the programs and services set forth in section
      221 of the Compact, and pursuant to section 222 of the Compact,
      the programs and services of the following agencies shall be made
      available to the Federated States of Micronesia and to the
      Republic of the Marshall Islands:
        (A) Continuation of the programs and services of the Federal
          Emergency Management Agency
          Except as provided in clauses (ii) and (iii), the programs
        and services of the Department of Homeland Security, Federal
        Emergency Management Agency shall continue to be available to
        the Federated States of Micronesia and the Republic of the
        Marshall Islands to the same extent as such programs and
        services were available in fiscal year 2003.
            (i) Paragraph (a)(6) of section 221 of the U.S.-FSM Compact
          and paragraph (a)(5) of the U.S.-RMI Compact shall each be
          construed as though the paragraph reads as follows: "the
          Department of Homeland Security, United States Federal
          Emergency Management Agency.".
            (ii) Subsection (d) of section 211 of the U.S.-FSM Compact
          and subsection (e) of section 211 of the U.S.-RMI Compact
          shall each be construed as though the subsection reads as
          follows: "Not more than $200,000 (as adjusted for inflation
          pursuant to section 217 of the U.S.-FSM Compact and section
          218 of the U.S.-RMI Compact) shall be made available by the
          Secretary of the Interior to the Department of Homeland
          Security, Federal Emergency Management Agency to facilitate
          the activities of the Federal Emergency Management Agency in
          accordance with and to the extent provided in the Federal
          Programs and Services Agreement.".
            (iii) The Secretary of State, in consultation with the
          Department of Homeland Security and the Federal Emergency
          Management Agency, shall immediately undertake negotiations
          with the Government of the Federated States of Micronesia and
          the Government of the Republic of the Marshall Islands
          regarding disaster assistance and shall report to the
          appropriate committees of Congress no later than June 30,
          2004, on the outcome of such negotiations, including
          recommendations for changes to law regarding disaster
          assistance under the U.S.-FSM Compact and the U.S.-RMI
          Compact, and including subsidiary agreements as needed to
          implement such changes to law. If an agreement is not
          concluded, and legislation enacted which reflects such
          agreement, before the date which is five years after December
          17, 2003, the following provisions shall apply:
            "Paragraph (a)(6) of section 221 of the U.S.-FSM Compact
          and paragraph (a)(5) of section 221 of the U.S.-RMI Compact
          shall each be construed and applied as if each provision
          reads as follows:
            "The U.S. Agency for International Development shall be
          responsible for the provision of emergency and disaster
          relief assistance in accordance with its statutory
          authorities, regulations and policies. The Republic of the
          Marshall Islands and the Federated States of Micronesia may
          additionally request that the President make an emergency or
          major disaster declaration. If the President declares an
          emergency or major disaster, the Department of Homeland
          Security (DHS), the Federal Emergency Management Agency
          (FEMA) and the U.S. Agency for International Development
          shall jointly (a) assess the damage caused by the emergency
          or disaster and (b) prepare a reconstruction plan including
          an estimate of the total amount of Federal resources that are
          needed for reconstruction. Pursuant to an interagency
          agreement, FEMA shall transfer funds from the Disaster Relief
          Fund in the amount of the estimate, together with an amount
          to be determined for administrative expenses, to the U.S.
          Agency for International Development, which shall carry out
          reconstruction activities in the Republic of the Marshall
          Islands and the Federated States of Micronesia in accordance
          with the reconstruction plan. For purposes of Disaster Relief
          Fund appropriations, the funding of the activities to be
          carried out pursuant to this paragraph shall be deemed to be
          necessary expenses in carrying out the Robert T. Stafford
          Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
          et seq.).
            "DHS may provide to the Republic of the Marshall Islands
          and the Federated States of Micronesia preparedness grants to
          the extent that such assistance is available to the States of
          the United States. Funding for this assistance may be made
          available from appropriations made to DHS for preparedness
          activities.".
        (B) Treatment of additional programs
          (i) Consultation
            The United States appointees to the committees established
          pursuant to section 213 of the U.S.-FSM Compact and section
          214 of the U.S.-RMI Compact shall consult with the Secretary
          of Education regarding the objectives, use, and monitoring of
          United States financial, program, and technical assistance
          made available for educational purposes.
          (ii) Continuing programs
            The Government of the United States - 
              (I) shall continue to make available to the Federated
            States of Micronesia and the Republic of the Marshall
            Islands for fiscal years 2004 through 2023, the services to
            individuals eligible for such services under the
            Individuals with Disabilities Education Act (20 U.S.C. 1400
            et seq.) to the extent that such services continue to be
            available to individuals in the United States; and
              (II) shall continue to make available to eligible
            institutions in the Federated States of Micronesia and the
            Republic of the Marshall Islands, and to students enrolled
            in such institutions, and in institutions in the United
            States and its territories, for fiscal years 2004 through
            2023, grants under subpart 1 of part A of title IV of the
            Higher Education Act of 1965 (20 U.S.C. 1070a et seq.) to
            the extent that such grants continue to be available to
            institutions and students in the United States.
          (iii) Supplemental education grants
            In lieu of eligibility for appropriations under part A of
          title I of the Elementary and Secondary Education Act of 1965
          (20 U.S.C. 6311 et seq.), title I of the Workforce Investment
          Act of 1998 (29 U.S.C. 2801 et seq.), other than subtitle C
          of that Act (29 U.S.C. 2881 et seq.) (Job Corps), title II of
          the Workforce Investment Act of 1998 (20 U.S.C. 9201 et seq.;
          commonly known as the Adult Education and Family Literacy
          Act), title I of the Carl D. Perkins Vocational and Technical
          Education Act of 1998 (20 U.S.C. 2321 et seq.), the Head
          Start Act (42 U.S.C. 9831 et seq.), and subpart 3 of part A,
          and part C, of title IV of the Higher Education Act of 1965
          (20 U.S.C. 1070b et seq., 42 U.S.C. 2751 et seq.), there are
          authorized to be appropriated to the Secretary of Education
          to supplement the education grants under section 211(a)(1) of
          the U.S.-FSM Compact and section 211(a)(1) of the U.S.-RMI
          Compact, respectively, the following amounts:
              (I) $12,230,000 for the Federated States of Micronesia
            for fiscal year 2005 and an equivalent amount, as adjusted
            for inflation under section 217 of the U.S.-FSM Compact,
            for each of fiscal years 2005 through 2023; and
              (II) $6,100,000 for the Republic of the Marshall Islands
            for fiscal year 2005 and an equivalent amount, as adjusted
            for inflation under section 218 of the U.S.-RMI Compact,
            for each of fiscal years 2005 through 2023,

          except that citizens of the Federated States of Micronesia
          and the Republic of the Marshall Islands who attend an
          institution of higher education in the United States or its
          territories, the Federated States of Micronesia, or the
          Republic of the Marshall Islands on December 17, 2003, may
          continue to receive assistance under such subpart 3 of part A
          or part C, for not more than 4 academic years after such date
          to enable such citizens to complete their program of study.
          (iv) Fiscal procedures
            Appropriations made pursuant to clause (iii) shall be used
          and monitored in accordance with an agreement between the
          Secretary of Education, the Secretary of Labor, the Secretary
          of Health and Human Services, and the Secretary of the
          Interior, and in accordance with the respective Fiscal
          Procedures Agreements referred to in section 462(b)(4) of the
          U.S.-FSM Compact and section 462(b)(4) of the U.S.-RMI
          Compact. The agreement between the Secretary of Education,
          the Secretary of Labor, the Secretary of Health and Human
          Services, and the Secretary of the Interior shall provide for
          the transfer, not later than 60 days after the appropriations
          made pursuant to clause (iii) become available to the
          Secretary of Education, the Secretary of Labor, and the
          Secretary of Health and Human Services, from the Secretary of
          Education, the Secretary of Labor, and the Secretary of
          Health and Human Services, to the Secretary of the Interior
          for disbursement.
          (v) Formula education grants
            For fiscal years 2005 through 2023, except as provided in
          clause (ii) and the exception provided under clause (iii),
          the Governments of the Federated States of Micronesia and the
          Republic of the Marshall Islands shall not receive any grant
          under any formula-grant program administered by the Secretary
          of Education or the Secretary of Labor, nor any grant
          provided through the Head Start Act (42 U.S.C. 9831 et seq.)
          administered by the Secretary of Health and Human Services.
          (vi) Transition
            For fiscal year 2004, the Governments of the Federated
          States of Micronesia and the Republic of the Marshall Islands
          shall continue to be eligible for appropriations and to
          receive grants under the provisions of law specified in
          clauses (ii) and (iii).
          (vii) Technical assistance
            The Federated States of Micronesia and the Republic of the
          Marshall Islands may request technical assistance from the
          Secretary of Education, the Secretary of Health and Human
          Services, or the Secretary of Labor the terms of which,
          including reimbursement, shall be negotiated with the
          participation of the appropriate cabinet officer for
          inclusion in the Federal Programs and Services Agreement.
          (viii) Continued eligibility for competitive grants
            The Governments of the Federated States of Micronesia and
          the Republic of the Marshall Islands shall continue to be
          eligible for competitive grants administered by the Secretary
          of Education, the Secretary of Health and Human Services, and
          the Secretary of Labor to the extent that such grants
          continue to be available to State and local governments in
          the United States.
          (ix) Applicability
            The Republic of Palau shall remain eligible for
          appropriations and to receive grants under the provisions of
          law specified in clauses (ii) and (iii) until the end of
          fiscal year 2007, to the extent the Republic of Palau was so
          eligible under such provisions in fiscal year 2003.

          (C) The Legal Services Corporation.
          (D) The Public Health Service.
          (E) The Rural Housing Service (formerly, the Farmers Home
        Administration) in the Marshall Islands and each of the four
        States of the Federated States of Micronesia: Provided, That in
        lieu of continuation of the program in the Federated States of
        Micronesia, the President may agree to transfer to the
        Government of the Federated States of Micronesia without cost,
        the portfolio of the Rural Housing Service applicable to the
        Federated States of Micronesia and provide such technical
        assistance in management of the portfolio as may be requested
        by the Federated States of Micronesia.
      (2) Tort claims
        The provisions of section 178 of the U.S.-FSM Compact and the
      U.S.-RMI Compact regarding settlement and payment of tort claims
      shall apply to employees of any Federal agency of the Government
      of the United States (and to any other person employed on behalf
      of any Federal agency of the Government of the United States on
      the basis of a contractual, cooperative, or similar agreement)
      which provides any service or carries out any other function
      pursuant to or in furtherance of any provisions of the U.S.-FSM
      Compact or the U.S.-RMI Compact or this joint resolution, except
      for provisions of Title Three of the Compact and of the
      subsidiary agreements related to such Title, in such area to
      which such Agreement formerly applied.
      (3) PCB cleanup
        The programs and services of the Environmental Protection
      Agency regarding PCBs shall, to the extent applicable, as
      appropriate, and in accordance with applicable law, be construed
      to be made available to such islands for the cleanup of PCBs
      imported prior to 1987. The Secretary of the Interior and the
      Secretary of Defense shall cooperate and assist in any such
      cleanup activities.
    (g) College of Micronesia
      Until otherwise provided by Act of Congress, or until termination
    of the U.S.-FSM Compact and the U.S.-RMI Compact, the College of
    Micronesia shall retain its status as a land-grant institution and
    its eligibility for all benefits and programs available to such
    land-grant institutions.
    (h) Trust Territory debts to U.S. Federal agencies
      Neither the Government of the Federated States of Micronesia nor
    the Government of the Marshall Islands shall be required to pay to
    any department, agency, independent agency, office, or
    instrumentality of the United States any amounts owed to such
    department, agency, independent agency, office, or instrumentality
    by the Government of the Trust Territory of the Pacific Islands as
    of the effective date of the Compact. There is authorized to be
    appropriated such sums as may be necessary to carry out the
    purposes of this subsection.
    (i) Judicial training
      (1) In general
        In addition to amounts provided under section 211(a)(4) of the
      U.S.-FSM Compact and the U.S.-RMI Compact, the Secretary of the
      Interior shall annually provide $300,000 for the training of
      judges and officials of the judiciary in the Federated States of
      Micronesia and the Republic of the Marshall Islands in
      cooperation with the Pacific Islands Committee of the Ninth
      Circuit Judicial Council and in accordance with and to the extent
      provided in the Federal Programs and Services Agreement and the
      Fiscal Procedure Agreement, as appropriate.
      (2) Authorization and continuing appropriation
        There is hereby authorized and appropriated to the Secretary of
      the Interior, out of any funds in the Treasury not otherwise
      appropriated, to remain available until expended, for each fiscal
      year from 2004 through 2023, $300,000, as adjusted for inflation
      under section 218 of the U.S.-FSM Compact and the U.S.-RMI
      Compact, to carry out the purposes of this section.
    (j) Technical assistance
      Technical assistance may be provided pursuant to section 224 of
    the U.S.-FSM Compact or the U.S.-RMI Compact by Federal agencies
    and institutions of the Government of the United States to the
    extent such assistance may be provided to States, territories, or
    units of local government. Such assistance by the Forest Service,
    the Natural Resources Conservation Service, the Fish and Wildlife
    Service, the National Marine Fisheries Service, the United States
    Coast Guard, and the Advisory Council on Historic Preservation, the
    Department of the Interior, and other agencies providing assistance
    under the National Historic Preservation Act (80 Stat. 915; 16
    U.S.C. 470-470t), shall be on a nonreimbursable basis. During the
    period the U.S.-FSM Compact and the U.S.-RMI Compact are in effect,
    the grant programs under the National Historic Preservation Act
    shall continue to apply to the Federated States of Micronesia and
    the Republic of the Marshall Islands in the same manner and to the
    same extent as prior to the approval of the Compact. Any funds
    provided pursuant to subsections (c) and (g) to (m) of this section
    and sections 1921a(a) and 1921b(a), (b), (f) to (h), and (j) of
    this title 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.
    (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.

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 105, Dec. 17, 2003, 117 Stat.
    2744.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This joint resolution, referred to in subsecs. (a), (b)(10), and
    (f)(2), is Pub. L. 108-188, Dec. 17, 2003, 117 Stat. 2720, known as
    the Compact of Free Association Amendments Act of 2003, which
    enacted this part and provisions set out as notes under sections
    1901 and 1921 of this title and amended provisions set out as a
    note under section 3101 of Title 5, Government Organization and
    Employees. For complete classification of this Act to the Code, see
    Short Title of 2003 Amendment note set out under section 1901 of
    this title and Tables.
      Section 3927 of title 22, referred to in subsec. (b)(5), was in
    the original "section 207 of the Foreign Service Act", and was
    translated as meaning section 207 of the Foreign Service Act of
    1980 to reflect the probable intent of Congress.
      Act of June 30, 1954, referred to in subsec. (c), is act June 30,
    1954, ch. 423, 68 Stat. 330, as amended, which enacted sections
    1681 and 1681b of this title and provisions set out as notes under
    section 1681 of this title. For complete classification of this Act
    to the Code, see Tables.
      The joint resolution of January 14, 1986 (Public Law 99-239),
    referred to in subsec. (c)(1), is Pub. L. 99-239, Jan. 14, 1986, 99
    Stat. 1770, as amended, known as the Compact of Free Association
    Act of 1985, which is classified principally to part A of this
    subchapter and chapter 19 (Sec. 2001 et seq.) of this title. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1901 of this title and Tables.
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (f)(1)(A)(iii), is Pub. L. 93-288, May
    22, 1974, 88 Stat. 143, as amended, which is classified principally
    to chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health
    and Welfare. For complete classification of this Act to the Code,
    see Short Title note set out under section 5121 of Title 42 and
    Tables.
      The Individuals with Disabilities Education Act, referred to in
    subsec. (f)(1)(B)(ii)(I), is title VI of Pub. L. 91-230, Apr. 13,
    1970, 84 Stat. 175, as amended, which is classified generally to
    chapter 33 (Sec. 1400 et seq.) of Title 20, Education. For complete
    classification of this Act to the Code, see section 1400 of Title
    20 and Tables.
      The Higher Education Act of 1965, referred to in subsec.
    (f)(1)(B)(ii)(II), (iii), is Pub. L. 89-329, Nov. 8, 1965, 79 Stat.
    1219, as amended. Subpart 1 of part A of title IV of the Act is
    classified generally to subpart 1 (Sec. 1070a et seq.) of part A of
    subchapter IV of chapter 28 of Title 20, Education. Subpart 3 of
    part A of title IV of the Act is classified generally to subpart 3
    (Sec. 1070b et seq.) of part A of subchapter IV of chapter 28 of
    Title 20. Part C of title IV of the Act is classified generally to
    part C (Sec. 2751 et seq.) of subchapter I of chapter 34 of Title
    42, The Public Health and Welfare. For complete classification of
    this Act to the Code, see Short Title note set out under section
    1001 of Title 20 and Tables.
      The Elementary and Secondary Education Act of 1965, referred to
    in subsec. (f)(1)(B)(iii), is Pub. L. 89-10, Apr. 11, 1965, 79
    Stat. 27, as amended. Part A of title I of the Act is classified
    generally to part A (Sec. 6311 et seq.) of subchapter I of chapter
    70 of Title 20, Education. For complete classification of this Act
    to the Code, see Short Title note set out under section 6301 of
    Title 20 and Tables.
      The Workforce Investment Act of 1998, referred to in subsec.
    (f)(1)(B)(iii), is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as
    amended. Title I of the Act is classified principally to chapter 30
    (Sec. 2801 et seq.) of Title 29, Labor. Subtitle C of title I of
    the Act is classified generally to subchapter III (Sec. 2881 et
    seq.) of chapter 30 of Title 29. Title II of the Act, known as the
    Adult Education and Family Literacy Act, is classified principally
    to subchapter I (Sec. 9201 et seq.) of chapter 73 of Title 20,
    Education. For complete classification of this Act to the Code, see
    Short Title note set out under section 9201 of Title 20 and Tables.
      The Carl D. Perkins Vocational and Technical Education Act of
    1998, referred to in subsec. (f)(1)(B)(iii), is Pub. L. 88-210,
    Dec. 18, 1963, 77 Stat. 403, as amended. Title I of the Act is
    classified generally to subchapter I (Sec. 2321 et seq.) of chapter
    44 of Title 20, Education. For complete classification of this Act
    to the Code, see Short Title note set out under section 2301 of
    Title 20 and Tables.
      The Head Start Act, referred to in subsec. (f)(1)(B)(iii), (v),
    is subchapter B (Sec. 635 et seq.) of chapter 8 of subtitle A of
    title VI of Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 499, as amended,
    which is classified generally to subchapter II (Sec. 9831 et seq.)
    of chapter 105 of Title 42, The Public Health and Welfare. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 9801 of Title 42 and Tables.
      The National Historic Preservation Act, referred to in subsec.
    (j), is Pub. L. 89-665, Oct. 15, 1966, 80 Stat. 915, as amended,
    which is classified generally to subchapter II (Sec. 470 et seq.)
    of chapter 1A of Title 16, Conservation. For complete
    classification of this Act to the Code, see section 470(a) of Title
    16 and Tables.

-End-



-CITE-
    48 USC Sec. 1921e                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921e. Construction contract assistance

-STATUTE-
    (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.

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 106, Dec. 17, 2003, 117 Stat.
    2755.)

-End-



-CITE-
    48 USC Sec. 1921f                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921f. Prohibition

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

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 107, Dec. 17, 2003, 117 Stat.
    2755.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 108-188, Dec. 17, 2003,
    117 Stat. 2720, known as the Compact of Free Association Amendments
    Act of 2003, which enacted this part and provisions set out as
    notes under sections 1901 and 1921 of this title and amended
    provisions set out as a note under section 3101 of Title 5,
    Government Organization and Employees. For complete classification
    of this Act to the Code, see Short Title of 2003 Amendment note set
    out under section 1901 of this title and Tables.

-End-



-CITE-
    48 USC Sec. 1921g                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921g. Compensatory adjustments

-STATUTE-
    (a) Additional programs and services
      In addition to the programs and services set forth in section 221
    of the U.S.-FSM Compact and the U.S.-RMI Compact, and pursuant to
    section 222 of the U.S.-FSM Compact and the U.S.-RMI Compact, the
    services and programs of the following United States agencies shall
    be made available to the Federated States of Micronesia and the
    Republic of the Marshall Islands: the Small Business
    Administration, Economic Development Administration, the Rural
    Utilities Services (formerly Rural Electrification Administration);
    the programs and services of the Department of Labor under subtitle
    C of title I of the Workforce Investment Act of 1998 (29 U.S.C.
    2881 et seq.; relating to Job Corps); and the programs and services
    of the Department of Commerce relating to tourism and to marine
    resource development.
    (b) Further amounts
      (1) The joint resolution of January 14, 1986 (Public Law 99-239)
    provided that the governments of the Federated States of Micronesia
    and the Marshall Islands may submit to Congress reports concerning
    the overall financial and economic impacts on such areas resulting
    from the effect of title IV of that joint resolution upon Title Two
    of the Compact. There were authorized to be appropriated for fiscal
    years beginning after September 30, 1990, such amounts as
    necessary, but not to exceed $40,000,000 for the Federated States
    of Micronesia and $20,000,000 for the Marshall Islands, as provided
    in appropriation acts, to further compensate the governments of
    such islands (in addition to the compensation provided in
    subsections (a) and (b) of section 111 of the joint resolution of
    January 14, 1986 (Public Law 99-239) [48 U.S.C. 1911(a), (b)]) 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).

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 108, Dec. 17, 2003, 117 Stat.
    2755.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Workforce Investment Act of 1998, referred to in subsec. (a),
    is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as amended.
    Subtitle C of title I of the Act is classified generally to
    subchapter III (Sec. 2881 et seq.) of chapter 30 of Title 29,
    Labor. For complete classification of this Act to the Code, see
    Short Title note set out under section 9201 of Title 20, Education,
    and Tables.
      The joint resolution of January 14, 1986 (Public Law 99-239),
    referred to in subsec. (b)(1), is Pub. L. 99-239, Jan. 14, 1986, 99
    Stat. 1770, as amended, known as the Compact of Free Association
    Act of 1985, which is classified principally to part A of this
    subchapter and chapter 19 (Sec. 2001 et seq.) of this title. Title
    IV of the joint resolution is set out as a note under section 1901
    of this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1901 of this title and
    Tables.

-End-



-CITE-
    48 USC Sec. 1921h                                           01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS
    Part B - Approval and Implementation of Compacts, As Amended

-HEAD-
    Sec. 1921h. Authorization and continuing appropriation

-STATUTE-
      (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 1921d(f)(1) and
    1921d(i) of this title, sections 211, 212(b), 215, and 217 of the
    U.S.-FSM Compact, and sections 211, 212, 213(b), 216, and 218 of
    the U.S.-RMI Compact, in this and subsequent years.
      (b) There are authorized to be appropriated to the Departments,
    agencies, and instrumentalities named in paragraphs (1) and (3)
    through (6) of section 221(a) of the U.S.-FSM Compact and
    paragraphs (1) and (3) through (5) of section 221(a) of the U.S.-
    RMI Compact, such sums as are necessary to carry out the purposes
    of sections 221(a) of the U.S.-FSM Compact and the U.S.-RMI
    Compact, to remain available until expended.

-SOURCE-
    (Pub. L. 108-188, title I, Sec. 109, Dec. 17, 2003, 117 Stat.
    2756.)

-End-


-CITE-
    48 USC SUBCHAPTER II - PALAU                                01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU

-HEAD-
                           SUBCHAPTER II - PALAU                       

-End-


-CITE-
    48 USC Part A - Approval of Compact and Supplemental
                     Provisions                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part A - Approval of Compact and Supplemental Provisions

-HEAD-
         PART A - APPROVAL OF COMPACT AND SUPPLEMENTAL PROVISIONS     

-End-



-CITE-
    48 USC Sec. 1931                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part A - Approval of Compact and Supplemental Provisions

-HEAD-
    Sec. 1931. Approval of Compact of Free Association

-STATUTE-
    (a) Approval
      The Compact of Free Association set forth in title II of this
    joint resolution between the United States and the Government of
    Palau is hereby approved, and Congress hereby consents to the
    agreements as set forth on pages 154 through 405 of House Document
    99-193 of April 9, 1986 (hereafter in this joint resolution
    referred to as subsidiary or related agreements), as they relate to
    such Government. Subject to the provisions of this joint
    resolution, the President is authorized to agree, in accordance
    with section 411 of the Compact, to an effective date for and
    thereafter to implement such Compact, having taken into account any
    procedures with respect to the United Nations for termination of
    the Trusteeship Agreement.
    (b) Reference to Compact
      Any reference in this joint resolution to the "Compact" shall be
    treated as a reference to the Compact of Free Association set forth
    in title II of this joint resolution.
    (c) Amendment, change, or termination of Compact and certain
      agreements
      (1) Mutual agreement by the Government of the United States as
    provided in the Compact which results in amendment, change, or
    termination of all or any part thereof shall be affected only by
    Act of Congress and no unilateral action by the Government of the
    United States provided for in the Compact, and having such result,
    may be effected other than by Act of Congress.
      (2) The provisions of paragraph (1) shall apply - 
        (A) to all actions of the Government of the United States under
      the Compact including, but not limited to, actions taken pursuant
      to sections 431, 432, 441, or 442;
        (B) to any amendment, change, or termination in any agreement
      that may be concluded at any time between the Government of the
      United States and the Government of Palau regarding friendship,
      cooperation and mutual security concluded pursuant to sections
      321 and 323 of the Compact referred to in section 462(h);
        (C) to any amendment, change, or termination of the agreements
      concluded pursuant to Compact sections 175 and 221(a)(4), the
      terms of which are incorporated by reference into the Compact;
      and
        (D) to the following subsidiary agreements, or portions
      thereof:
          (i) Article II of the agreement referred to in section 462(a)
        of the Compact;
          (ii) Article II of the agreement referred to in section
        462(b) of the Compact;
          (iii) Article II and Section 7 of Article X of the agreement
        referred to in section 462(f) of the Compact;
          (iv) the agreement referred to in section 462(g) of the
        Compact;
          (v) Articles II, III, IV, V, VI, and VII of the agreement
        referred to in section 462(h) of the Compact; and
          (vi) Articles VI, XV, and XVII of the agreement referred to
        in section 462(i) of the Compact.
    (d) Effective date
      (1) The authority of the President to agree to an effective date
    for the Compact of Free Association between the United States and
    Palau concurrently with termination of the Trusteeship shall be
    carried out in accordance with this section, and the Compact shall
    not take effect until after - 
        (A) The President has certified to the Congress that the
      Compact has been approved in accordance with Section 411(a) and
      (b) of the Compact, and that there exists no legal impediment to
      the ability of the United States to carry out fully its
      responsibilities and to exercise its rights under Title Three of
      the Compact, as set forth in this Act, and
        (B) enactment of a joint resolution which has been reported by
      the Committee on Energy and Natural Resources of the Senate and
      the Committees on Interior and Insular Affairs and Foreign
      Affairs and other appropriate Committees of the House of
      Representatives authorizing entry into force of the Compact, and
        (C) agreements have been concluded with Palau which satisfy the
      requirements of section 1902 of this title. For the purpose of
      this subsection the word "Palau" shall be substituted for
      "Federated States of Micronesia" whenever it appears in section
      1902 of this title.

      (2) Any agreement concluded with Palau pursuant to subparagraph
    (C) of paragraph (1) and any agreement which would amend, change,
    or terminate any subsidiary agreement or related agreement, or
    portion thereof, as set forth in paragraph (4) of this subsection
    shall be submitted to the Congress. No such agreement shall take
    effect until after the expiration of 30 days after the date such
    agreement is so submitted (excluding days on which either House of
    Congress is not in session).
      (3) No agreement described in paragraph (2) shall take effect if
    a joint resolution of disapproval is enacted during the period
    specified in paragraph (2). For the purpose of expediting the
    consideration of such a joint resolution, a motion to proceed to
    the consideration of any such joint resolution after it has been
    reported by an appropriate committee shall be treated as highly
    privileged in the House of Representatives. Any such joint
    resolution shall be considered in the Senate in accordance with the
    provisions of section 601(b) of Public Law 94-329.
      (4) The subsidiary agreement of (!1) portions thereof referred to
    in paragraph (2) are as follows:

        (A) Articles III and IV of the agreement referred to in section
      462(b) of the Compact.
        (B) Articles III, IV, V, VI, VII, VIII, IX, and X (except for
      section 7 thereof) of the agreement referred to in section 462(f)
      of the Compact.
        (C) Articles IV, V, X, XIV, XVI, and XVIII of the agreement
      referred to in section 462(i) of the Compact.
        (D) Articles II, V, VI, VII, and VIII of the agreement referred
      to in section 462(h) of the Compact.
        (E) The agreement referred to in section 462(j) of the Compact.

      (5) No agreement between the United States and the Government of
    Palau which would amend, change, or terminate any subsidiary or
    related agreement, or portion thereof, other than those set forth
    in subsection (d) (!2) of this section or paragraph (4) of this
    subsection, shall take effect until the President has transmitted
    such an 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.


-SOURCE-
    (Pub. L. 99-658, title I, Sec. 101, Nov. 14, 1986, 100 Stat. 3673.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact of Free Association and the Compact, referred to in
    text, is the Compact of Free Association between the United States
    and the Government of Palau, which is contained in section 201 of
    Pub. L. 99-658, set out below.
      This joint resolution and this Act, referred to in text, is Pub.
    L. 99-658, Nov. 14, 1986, 100 Stat. 3672, as amended, which is
    classified generally to this part. Title II of the joint resolution
    enacted section 1934 of this title and provisions set out below.
    For complete classification of this Act to the Code, see Tables.
      For Oct. 1, 1994, as the date the Compact of Free Association
    with Palau takes effect, referred to in subsecs. (a) and (d), see
    Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, set out below.
      Section 601(b) of Public Law 94-329, referred to in subsec.
    (d)(3), is section 601(b) of Pub. L. 94-329, title VI, June 30,
    1976, 90 Stat. 765, which is not classified to the Code.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Interior and Insular Affairs of House of
    Representatives changed to Committee on Natural Resources of House
    of Representatives by House Resolution No. 5, One Hundred Third
    Congress, Jan. 5, 1993. Committee on Natural Resources of House of
    Representatives treated as referring to Committee on Resources of
    House of Representatives by section 1(a) of Pub. L. 104-14, set out
    as a note preceding section 21 of Title 2, The Congress.


-MISC1-
                 REGULATIONS REGARDING HABITUAL RESIDENCE             
      Commissioner of Immigration and Naturalization to issue
    regulations, not later than 6 months after Sept. 30, 1996,
    governing rights of "habitual residence" in United States under
    terms of the Compact of Free Association between the Government of
    the United States and the Government of Palau, see section 643 of
    Pub. L. 104-208, formerly set out as a note under section 1901 of
    this title.


-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of this title.


-MISC2-
                              RECITAL CLAUSES                          
      Pub. L. 99-658 which enacted this part contained several
    "Whereas" clauses reading as follows:
      "Whereas the United States is the administering authority of the
    Trust Territory of the Pacific Islands under the terms of the
    Trusteeship Agreement for the former Japanese Mandated Islands
    entered into by the United States with the Security Council of the
    United Nations on April 2, 1947, and approved by the United States
    on July 18, 1947; and
      "Whereas the United States, in accordance with the Trusteeship
    Agreement, the Charter of the United Nations and the objectives of
    the international trusteeship system, has promoted the development
    of the peoples of the Trust Territory toward self-government or
    independence as appropriate to the particular cicumstances [sic] of
    the Trust Territory and its peoples and the freely expressed wishes
    of the peoples concerned; and
      "Whereas the United States, in response to the desires of the
    people of Palau expressed through their freely-elected
    representatives and by the official pronouncements and enactments
    of their lawfully constituted government, and in consideration of
    its own obligations under the Trusteeship Agreement to promote self-
    determination, entered into political status negotiations with
    representatives of the people of Palau; and
      "Whereas these negotiations resulted in the 'Compact of Free
    Association' [set out below] between the United States and Palau
    which, together with its related agreements, was signed by the
    United States and by Palau on January 10, 1986; and
      "Whereas the Compact of Free Association received a favorable
    vote of a majority of the people of Palau voting in a United
    Nations-observed plebiscite conducted on February 21, 1986; and
      "Whereas the Supreme Court of Palau has ruled that the
    constitutional process of Palau for approval of the Compact of Free
    Association in accordance with section 411 of the Compact has not
    yet been completed; and
      "Whereas the President of Palau has requested the United States
    to complete the process of United States approval of the Compact of
    Free Association in accordance with section 411 of the Compact
    through enactment of an appropriate joint resolution".

                        COMPACT OF FREE ASSOCIATION                    
      Section 201 of Pub. L. 99-658 provided that: "Compact of Free
    Association is as follows:

                       "COMPACT OF FREE ASSOCIATION                   

                                 "PREAMBLE                             

    "THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT
                                 OF PALAU
      "Affirming that their Governments and the relationship between
    their Governments are founded upon respect for human rights and
    fundamental freedoms for all, and
      "Affirming the common interests of the United States of America
    and the people of Palau in creating close and mutually beneficial
    relationships through a free and voluntary association of their
    Governments; and
      "Affirming the interest of the Government of the United States in
    promoting the economic advancement and self-sufficiency of the
    people of Palau; and
      "Recognizing that their previous relationship has been based upon
    the International Trusteeship System of the United Nations Charter;
    and that pursuant to Article 76 of the Charter, the peoples of the
    Trust Territory have progressively developed their institutions of
    self-government, and that in the exercise of their sovereign right
    to self-determination they have, through their free-expressed [sic]
    wishes, adopted a Constitution appropriate to their particular
    circumstances; and
      "Recognizing their common desire to terminate the Trusteeship and
    establish a new government-to-government relationship in accordance
    with a new political status based on the freely-expressed wishes of
    the people of Palau and appropriate to their particular
    circumstances; and
      "Recognizing that the people of Palau 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 their
    Government into this Compact of Free Association by the people of
    Palau constitutes an exercise of their sovereign right to self-
    determination;
      "NOW, THEREFORE, AGREE to enter into relationship of free
    association which provides a full measure of self-government for
    the people of Palau; and
      "FURTHER AGREE that the relationships of free association derives
    from and is as set forth in this Compact; and that, during such
    relationships of free association, the respective rights and
    responsibilities of the Government of the United States and the
    Government of the freely associated state of Palau in regard to
    this relationship of free association derives from and is as set
    forth in this Compact.

                                "TITLE ONE                            

                           "GOVERNMENT RELATIONS                       

                                "ARTICLE I                            

                             "SELF-GOVERNMENT                         

      "Section 111
      "The people of Palau, acting through their duly elected
    government established under their constitution, are self-
    governing.

                                "ARTICLE II                            

                             "FOREIGN AFFAIRS                         

      "Section 121
      "(a) The Republic of Palau has the capacity to conduct foreign
    affairs in its own name and right, except as otherwise provided in
    this Compact and the Government of the United States recognizes
    that the Government of Palau, in the exercise of this capacity, may
    enter into, in its own name and right, treaties and other
    international agreements with governments and regional and
    international organizations.
      "(b) In the conduct of its foreign affairs the Government of
    Palau 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 application by
    the Government of Palau for membership or other participation in
    regional or international organizations as may be mutually agreed.
    The Government of the United States agrees to accept citizens of
    Palau for training and instruction at the United States Foreign
    Service Institute [now George P. Shultz National Foreign Affairs
    Training Center], established under 22 U.S.C. 4021, or similar
    training under terms and conditions to be mutually agreed.

      "Section 123
      "In recognition of the authority and responsibility of the
    Government of the United States under Title Three, the Government
    of Palau shall consult with the Government of the United States.
    The Government of the United States, in the conduct of its foreign
    affairs, shall consult with the Government of Palau on matters
    which the Government of the United States regards as relating to or
    affecting the Government of Palau, and shall provide, on a regular
    basis, information on regional foreign policy matters.

      "Section 124
      "(a) The Government of Palau has authority to conduct its foreign
    affairs relating to law of the sea and marine resources matters,
    including the harvesting, conservation, exploration or exploitation
    of living and nonliving resources from the sea, seabed or subsoil
    to the full extent recognized under international law.
      "(b) The Government of Palau has jurisdiction and sovereignty
    over its territory, including its land and internal waters,
    territorial seas, the airspace superjacent thereto only to the
    extent recognized under international law.

      "Section 125
      "Except as otherwise provided in this Compact or its related
    agreements, all obligations, responsibilities, rights and benefits
    of the Government of the United States as administering authority
    which have 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 the day
    preceding the effective date of this Compact are no longer assumed
    and enjoyed by the Government of the United States.

      "Section 126
      "The Government of the United States shall accept responsibility
    for those actions taken by the Government of Palau in the area of
    foreign affairs, only as may from time to time be expressly and
    mutually agreed.

      "Section 127
      "The Government of the United States may assist or act on behalf
    of the Government of Palau 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 Palau undertaken with the assistance
    or through the agency of the Government of the United States
    pursuant to this Section unless expressly agreed.

      "Section 128
      "At the request of the Government of Palau 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 Palau for travel outside of
    Palau, the Marshall Islands, the Federated States of Micronesia,
    the United States and its territories and possessions.

                               "ARTICLE III                           

                              "COMMUNICATIONS                          

      "Section 131
      "(a) The Government of Palau has full authority and
    responsibility to regulate its domestic and foreign communications,
    and the Government of the United States shall provide communication
    assistance in accordance with the terms of a related agreement
    which shall come into effect simultaneously with this Compact, and
    such agreement shall remain in effect until such time as any
    election is made pursuant to Section 131(b) and which shall provide
    for the following:
        "(1) the Government of the United States remains the sole
      administration entitled to make notification to the International
      Frequency Registration Board of the International
      Telecommunications Union of frequency assignments to radio
      communications stations in Palau; and to submit to the
      International Frequency Registration Board seasonal schedules for
      the broadcasting stations in Palau in the bands allocated
      exclusively to the broadcasting service between 5,950 and 26,100
      kHz and in any other additional frequency bands that may be
      allocated to use by high frequency broadcasting stations; and
        "(2) the United States Federal Communications Commission has
      jurisdiction, pursuant to the Communications Act of 1934, 47
      U.S.C. 151 et seq., and the Communications Satellite Act of 1962,
      47 U.S.C. 721 et seq., over all domestic and foreign
      communications services furnished by means of satellite earth
      terminal stations where such stations are owned or operated by
      United States common carriers and are located in Palau.
      "(b) The Government of Palau may elect at any time to undertake
    the functions enumerated in Section 131(a) and previously performed
    by the Government of the United States. Upon such election, the
    Government of the United States shall so notify the International
    Frequency Registration Board and shall take such other actions as
    may be necessary to transfer to the Government of Palau the
    notification authority referred to in Section 131(a) and all rights
    deriving from the previous exercise of any such notification
    authority by the Government of the United States.

      "Section 132
      "The Government of Palau shall permit the Government of the
    United States to operate telecommunications services in Palau to
    the extent necessary to fulfill the obligations of the Government
    of the United States under this Compact in accordance with the
    terms of related agreements which shall come into effect
    simultaneously with this Compact.

                                "ARTICLE IV                            

                                IMMIGRATION                            

      "Section 141
      "(a) Any person in the following categories may enter into,
    lawfully engage in occupations, and establish residence as a
    nonimmigrant in the United States and its territories and
    possessions without regard to paragraphs (14), (20), and (26) of
    section 212(a) of the Immigration and Nationality Act, 8 U.S.C.
    1182(a)(14), (20), and (26):
        "(1) a person who, on the day preceding the effective date of
      this Compact, is a citizen of 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 a citizen of Palau;
        "(2) a person who acquires the citizenship of Palau, at birth,
      on or after the effective date of the Constitution of Palau; or
        "(3) a naturalized citizen of Palau, 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.
    Such persons shall be considered to have the permission of the
    Attorney General of the United States to accept employment in the
    United States.
      "(b) The right of such persons to establish habitual residence in
    a territory or possession of the United States may, however, be
    subjected to nondiscriminatory limitations provided for:
        "(1) in statutes or regulations of the United States; or
        "(2) in those statutes or regulations of the territory or
      possession concerned which are authorized by the laws of the
      United States.
      "(c) Section 141(a) does not confer on a citizen of Palau, the
    right to establish the residence necessary for naturalization under
    the Immigration and Nationality Act, or to petition for benefits
    for alien relatives under that Act. Section 141(a), however, shall
    not prevent a citizen of Palau 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 enter into,
    lawfully engage in occupations, and reside in Palau, subject to the
    right of that Government to deny entry to or deport any such
    citizen or national as an undesirable alien. A citizen or national
    of the United States may establish habitual residence or domicile
    in Palau only in accordance with the laws of Palau. This subsection
    is without prejudice to the right of the Government of Palau to
    regulate occupations in Palau in a nondiscriminatory manner.
      "(b) With respect to the subject matter of this Section, the
    Government of Palau shall accord to citizens and nationals of the
    United States treatment no less favorable than that accorded to
    citizens of other countries; any denial of entry to or deportation
    of a citizen or national of the United States as an undesirable
    alien must be pursuant to reasonable statutory grounds.

      "Section 143
      "(a) The privileges set forth in Section 141 shall not apply to
    any person who takes an affirmative step to preserve or acquire a
    citizenship or nationality other than that of Palau.
      "(b) Every person having the privileges set forth in Sections 141
    and 142 who possesses a citizenship or nationality other than that
    of Palau or the United States ceases to have these privileges two
    years after the effective date of this Compact, or within six
    months after becoming 21 years of age, whichever comes later,
    unless such person executes an oath of renunciation of that other
    citizenship or nationality.

      "Section 144
      "(a) A citizen or national of the United States who, after
    notification to the Government of the United States of an intention
    to employ such person by the Government of Palau, commences
    employment with that Government shall not be deprived of his United
    States nationality pursuant to Section 349(a)(2) and (a)(4) of the
    Immigration and Nationality Act, 8 U.S.C. 1481(a)(2) and (a)(4).
      "(b) Upon such notification by the Government of Palau, the
    Government of the United States may consult with or provide
    information to the notifying Government concerning the prospective
    employee, subject to the provisions of the Privacy Act, 5 U.S.C.
    552a.
      "(c) The requirement of prior notification shall not apply to
    those citizens or nationals of the United States who are employed
    by the Government of Palau on the effective date of this Compact
    with respect to the positions held by them at that time.

                                "ARTICLE V                            

                              "REPRESENTATION                          

      "Section 151
      "The Government of the United States and the Government of Palau
    may establish and maintain representative offices in the capitals
    of the other.

      "Section 152
      "(a) The premises of such representatives [sic] offices, and
    their archives wherever located, shall be inviolable. The property
    and assets of such representative offices shall be immune from
    search, requisition, attachment and any form of seizure unless such
    immunity is expressly waived. Official communications in transit
    shall be inviolable and accorded the freedom and protections
    accorded by recognized principles of intentional [sic] law to
    official communications of a diplomatic mission.
      "(b) Persons designated by the sending Government may serve in
    the capacity of its resident representatives with the consent of
    the receiving Government. Such designated persons 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 as such representatives, except
    insofar as such immunity may be expressly waived by the sending
    Government. While serving in a resident representative capacity,
    such designated persons 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.
      "(c) The sending Governments and their respective assets, income
    and other property shall be exempt from all direct taxes, except
    those direct taxes representing payment for specific goods and
    services, and shall be exempt from all customs duties and
    restrictions on the import or export of articles required for the
    official functions and personal use of their representatives and
    representative offices.
      "(d) Persons designated by the sending Government to serve in the
    capacity of its resident representatives shall enjoy the same
    taxation exemptions as are set forth in Article 34 of the Vienna
    Convention on Diplomatic Relations.
      "(e) The privileges, exemptions and immunities accorded under
    this Section 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 to which they
    are assigned.

                                "ARTICLE VI                            

                         "ENVIRONMENTAL PROTECTION                     

      "Section 161
      "The Government of the United States and the Government of Palau
    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 Palau.

      "Section 162
      "(a) The Government of the United States and the Government of
    Palau agree that with respect to the activities of the Government
    of the United States in Palau, and with respect to substantively
    equivalent activities of the Government of Palau, each of the
    Governments shall be bound by such environmental protection
    standards as may be mutually agreed for the purpose of carrying out
    the policy set forth in this Compact.

      "Section 163
      "In order to carry out the policy set forth in this Article, the
    Government of the United States and the Government of Palau agree
    to the following undertakings.
      "(a) The Government of the United States:
        "(1) shall apply environmental standards substantively similar
      to those in effect on the day preceding the effective date of
      this Compact to any activity requiring the preparation of an
      Environmental Impact Statement under the provisions of the
      National Environmental Policy Act of 1969, 83 Stat. 852, 42
      U.S.C. 4321 et seq.
        "(2) shall develop, prior to conducting any activity included
      within the category described in this Section, appropriate
      mechanisms, including regulations or other standards and
      procedures, to regulate such activity in Palau in a manner
      appropriate to the special governmental relationship set forth in
      this Compact. The Government of the United States shall provide
      the Government of Palau with the opportunity to comment formally
      during the development of such mechanisms.
      "(b) The Government of Palau shall develop standards and
    procedures to protect the environment of Palau. As a reciprocal
    obligation to the undertakings of the Government of the United
    States under this Article, the Government of Palau, taking into
    account the particular environment of Palau, shall develop
    standards for environmental protection substantively similar to
    those required of the Government of the United States by Section
    163(a)(1) prior to conducting activities in Palau 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 163(a), including any standard or procedure
    applicable thereunder, and Section 163(b) may be modified or
    superseded in whole or in part by agreement of the Government of
    the United States and the Government of Palau.
      "(d) Disputes arising under this Article, except for Section
    163(e), shall be resolved exclusively in accordance with Article II
    of Title Four.
      "(e) The President of the United States may exempt any of the
    activities of the Government of the United States under this
    Compact and its related agreements from any environmental standard
    or procedure which may be applicable under this Article 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 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 Palau
    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 Palau.

                               "ARTICLE VII                           

                         "GENERAL LEGAL PROVISIONS                     

      "Section 171
      "Except as provided in this Compact 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 ceases with respect to Palau as of the effective date of
    this Compact.

      "Section 172
      "(a) Every citizen of Palau 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 nonresident alien.
      "(b) The Government and every citizen of Palau shall be
    considered 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.

      "Section 173
      "The Government of the United States and the Government of Palau,
    agree to adopt and enforce such measures, consistent with this
    Compact 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 Palau pursuant to this Compact and its related
    agreements and by that Government in the United States pursuant to
    this Compact and its related agreements.

      "Section 174
      "Except as otherwise provided in this Compact and its related
    agreements:
      "(a) The Government of Palau shall be immune from the
    jurisdiction of the courts of the United States, and the Government
    of the United States shall be immune from the jurisdiction of the
    courts of Palau.
      "(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 Trust Territory of the Pacific Islands or 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 the effective date of this Compact;
        "(2) any claim settled by the claimant and the Government of
      the Trust Territory of the Pacific Islands but not paid as of the
      effective date of this Compact; and
        "(3) settlement of any administrative claim or of any action
      before a court of the Trust Territory of the Pacific Islands,
      pending as of the effective date of this Compact, against the
      Government 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 this 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
    court, which shall have jurisdiction therefor, 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 Palau, 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 Palau in any case in which the action is based on a
    commercial activity of the defendant Government carried out where
    the action is brought, or in a case in which damages are sought for
    personal injury or death or damage to or loss of property occurring
    where the action is brought. This subsection shall apply only to
    actions based on commercial activities entered into or injuries or
    losses suffered on or after the effective date of this Compact.

      "Section 175
      "A separate agreement, which shall come into effect
    simultaneously with this Compact, shall be concluded between the
    Government of the United States and the Government of Palau
    regarding mutual assistance and cooperation in law enforcement
    matters including the pursuit, capture, imprisonment and
    extradition of fugitives from justice and the transfer of
    prisoners. The separate agreement shall have the force of law. In
    the United States, the laws of the United States governing
    international extradition, including 18 U.S.C. 3184, 3186 and 3188-
    3195, 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. 4100-4115, shall be
    applicable to the transfer of prisoners under the separate
    agreement.

      "Section 176
      "The Government of Palau 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 Palau to grant relief from
    judgments in appropriate cases.

      "Section 177
      "(a) Federal agencies of the Government of the United States
    which provide services and related programs in Palau are authorized
    to settle and pay tort claims arising in Palau from the activities
    of such agencies or from the acts or omissions of the employees of
    such agencies. Except as provided in Section 177(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 177(a) which cannot be settled under
    Section 177(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
    Palau shall provide for:
        "(1) the administrative settlement of claims referred to in
      Section 177(a), including designation of local agents in Palau,
      such agents to be empowered to accept, investigate and settle
      such claims, in a timely manner, as provided in such related
      agreements; and
        "(2) arbitration, referred to in Section 177(b), in a timely
      manner, at a site convenient to the claimant, in the event a
      claim is not otherwise settled pursuant to Section 177(a).
      "(d) The provisions of Section 174(d) shall not apply to claims
    covered by this Section.

                                "TITLE TWO                            

                            "ECONOMIC RELATIONS                        

                                "ARTICLE I                            

                             "GRANT ASSISTANCE                         

      "Section 211
      "In order to assist the Government of Palau in its efforts to
    advance the well-being of the people of Palau and in recognition of
    the special relationship that exists between the United States and
    Palau, the Government of the United States shall provide to the
    Government of Palau on a grant basis the following amounts:
      "(a) $12 million annually for ten years commencing on the
    effective date of this Compact, and $11 million annually for five
    years commencing on the tenth anniversary of the effective date of
    this Compact, for current account operations and maintenance
    purposes, which amounts commencing on the fourth anniversary of the
    effective date of this Compact shall include a minimum annual
    distribution of $5 million from the fund specified in Section
    211(f).
      "(b) $2 million annually for fourteen years commencing on the
    first anniversary of the effective date of this Compact as a
    contribution to efforts aimed at achieving increased self-
    sufficiency in energy production, of which annual amounts not less
    than $500,000 shall be devoted to the energy needs of those parts
    of Palau not served by its central power-generating facility.
      "(c) $150,000 annually for fifteen years commencing on the
    effective date of this Compact as a contribution to current account
    operations and maintenance of communications systems, and the sum
    of $1.5 million, to be made available concurrently with the grant
    assistance provided during the first year after the effective date
    of this Compact, for the purpose of acquiring such communications
    hardware as may be located within Palau or for such other current
    or capital account activity as the Government of Palau may select.
      "(d) $631,000 annually on a current account basis for fifteen
    years commencing on the effective date of this Compact for the
    purposes set forth below:
        "(1) for the surveillance and enforcement by Government of
      Palau of its maritime zone;
        "(2) for health and medical programs, including referrals to
      hospital and treatment centers; and
        "(3) for a scholarship fund to support the post-secondary
      education of citizens of Palau attending United States
      accredited, post-secondary institutions in Palau, the United
      States, its territories and possessions, and states in free
      association with the United States. The curricular criteria for
      the award of scholarships shall be designed to advance the
      purposes of the plan referred to in Section 231.
      "(e) The sum of $666,800 as a contribution to the commencement of
    activities pursuant to Section 211(d)(1).
      "(f) The sum of $66 million on the effective date of this
    Compact, and the sum of $4 million concurrently with the grant
    assistance to be made available during the third year after the
    effective date of this Compact, to create a fund to be invested by
    the Government of Palau in issues of bonds, notes or other
    redeemable instruments of the Government of the United States or
    other qualified instruments which may be identified by mutual
    agreement of the Government of the United States and the Government
    of Palau. Investment of the fund in qualified instruments of United
    States nationality, and the distribution of sums derived from such
    investment to the Government of Palau, shall not be subject to any
    form of taxation by the United States or its political
    subdivisions. The Government of the United States and the
    Government of Palau shall set forth in a separate agreement, which
    shall come into effect simultaneously with this Compact, provisions
    for the investment, management and review of the fund so as to
    allow for an agreed minimum annual distribution from its accrued
    principal and interest commencing upon the effective date of this
    Compact for fifty years. The objective of this sum is to produce an
    average annual distribution of $15 million commencing on the
    fifteenth anniversary of this Compact for thirty-five years. Any
    excess or variance from the agreed minimum annual distributions
    which may be produced from these sums shall accrue to or be
    absorbed by the Government of Palau unless otherwise mutually
    agreed in accordance with the provisions of the separate agreement
    referred to in this paragraph. The annual distributions produced
    from these sums are not subject to Sections 215 and 236.

      "Section 212
      "In order to assist the Government of Palau in its efforts to
    advance the economic development and self-sufficiency of the people
    of Palau and in recognition of the special relationship that exists
    between the United States and Palau, the Government of the United
    States shall provide:
      "(a) To the people of Palau, a road system in accordance with
    mutually agreed specifications, the construction of which shall be
    completed prior to the sixth anniversary of the effective date of
    this Compact; and
      "(b) To the Government of Palau, the sum of $36 million, during
    the first year after the effective date of this Compact, for
    capital account purposes.

      "Section 213
      "The Government of the United States shall provide on a grant
    basis to the Government of Palau the sum of $5.5 million in
    conjunction with Article II of Title Three. This sum shall be made
    available concurrently with the grant assistance provided pursuant
    to this Article during the first year after the effective date of
    this Compact. The Government of Palau, in its use of such funds,
    shall take into account the impact of the activities of the
    Government of the United States in Palau.

      "Section 214
      "All funds previously appropriated to the Trust Territory of the
    Pacific Islands for the Government of Palau which are unobligated
    by the Government of the Trust Territory as of the effective date
    of this Compact shall accrue to the Government of Palau for the
    purposes for which such funds were originally appropriated as
    determined by the Government of the United States.

      "Section 215
      "Except as otherwise provided, the amounts stated in Sections
    211(a), 211(b), 211(c) and 212(b) shall be adjusted for each fiscal
    year by the percent which equals two-thirds of the percentage
    change in the United States Gross National Product Implicit Price
    Deflator, or seven percent, whichever is less in any one year,
    using the beginning of Fiscal Year 1981 as the base.

                                "ARTICLE II                            

                            "PROGRAM ASSISTANCE                        

      "Section 221
      "(a) The Government of the United States shall make available to
    Palau, in accordance with and to the extent provided in the
    separate agreement referred to in Section 232, without compensation
    and at the levels equivalent to those available to the Trust
    Territory of the Pacific Islands during the year prior to the
    effective date of this Compact, the services and related programs:
        "(1) of the United States Weather Service;
        "(2) provided pursuant to the Postal Reorganization Act, 39
      U.S.C. 101 et seq.;
        "(3) of the United States Federal Aviation Administration; and
        "(4) of the United States Civil Aeronautics Board or its
      successor agencies which has the authority to implement the
      provisions of paragraph 5 of Article IX of such separate
      agreements, the language of which is incorporated into this
      Compact.
      "(b) The Government of the United States, recognizing the special
    needs of the Palau [sic] particularly in the fields of education
    and health care, shall make available, as provided by the laws of
    the United States,
        "(1) the annual amount of $2 million which shall be allocated
      in accordance with the provisions of the separate agreement
      referred to in Section 232; and
        "(2) the sums of $4.3 million, $2.9 million and $1.5 million,
      respectively, during the first, second and third years after the
      effective date of this Compact, which sums shall be used by the
      Government of Palau as current account funds to finance programs
      similar to those programs of the United States that applied to
      Palau prior to the effective date of this Compact and that
      provided financial assistance for education to any institution,
      agency, organization or permanent resident of Palau or to the
      College of Micronesia.
      "(c) The Government of the United States shall make available to
    Palau such alternate energy development projects, studies and
    conservation measures as are applicable to the Trust Territory of
    the Pacific Islands on the day preceding the effective date of this
    Compact, for the purposes and duration provided in the laws of the
    United States.
      "(d) The Government of the United States shall have and exercise
    such authority as is necessary for the purposes of this Article and
    as is set forth in the related agreements referred to in Section
    232, which shall also set forth the extent to which services and
    programs shall be provided to Palau.

      "Section 222
      "The Government of Palau 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 law and which
    shall grant such technical assistance in a manner which gives
    priority consideration to Palau over other recipients not a part of
    the United States, its territories or possessions and equivalent
    consideration to Palau with respect to other states in Free
    Association with the United States.

      "Section 223
      "The citizens of Palau who are receiving post-secondary education
    assistance from the Government of the United States on the day
    preceding the effective date of this Compact shall continue to be
    eligible, if otherwise qualified, to receive such assistance to
    complete their academic programs for a maximum of four years after
    the effective date of this Compact.

      "Section 224
      "The Government of the United States and the Government of Palau
    may agree from time to time to the extension to Palau of additional
    United States grant assistance and of United States services and
    programs as provided by the laws of the United States.

                               "ARTICLE III                           

                        "ADMINISTRATIVE PROVISIONS                    

      "Section 231
      "(a) The annual expenditure by the Government of Palau of the
    grant amounts specified in Article I of this Title shall be in
    accordance with an official national development plan promulgated
    by the Government of Palau and concurred in by the Government of
    the United States prior to the effective date of this Compact. This
    plan may be amended from time to time by the Government of Palau.
      "(b) The Government of the United States and the Government of
    Palau recognize that the achievement of the goals of the plan
    referred to in this Section depends upon the availability of
    adequate internal revenue as well as economic assistance from
    sources outside of Palau, including the Government of the United
    States, and may, in addition, be affected by the impact of
    exceptional, economically adverse circumstances. The Government of
    Palau shall therefore report annually to the President of the
    United States and to the Congress of the United States on the
    implementation of this plan and on its use of the funds specified
    in this Article. This report shall outline the achievements of the
    plan to date and the need, if any, for an additional authorization
    and appropriation of economic assistance for that year to account
    for any exceptional, economically adverse circumstances. The
    availability of such additional economic assistance from the
    Government of the United States shall be subject to the
    authorization and appropriation of funds by the Government of the
    United States.

      "Section 232
      "The specific nature, extent and contractual arrangements of the
    services and programs provided for in Section 221 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 Palau, and other arrangements in
    connection with a service or program furnished by the Government of
    the United States, are set forth in related agreements which shall
    come into effect simultaneously with this Compact.

      "Section 233
      "The Government of the United States, in consultation with the
    Government of Palau, shall determine and implement procedures for
    the periodic audit of all grants and other assistance made under
    this Title. Such audits shall be conducted at no cost to the
    Government of Palau.

      "Section 234
      "Title to the property of the Government of the United States
    situated in the Trust Territory of the Pacific Islands and in Palau
    or acquired for or used by the Government of the Trust Territory of
    the Pacific Islands on or before the day preceding the effective
    date of this Compact shall, without reimbursement or transfer of
    funds, vest in the Government of Palau as set forth in a separate
    agreement which shall come into effect simultaneously with this
    Compact. The provisions of this Section shall not apply to the
    personal property of the Government of the United States for which
    the Government of the United States determines a continuing
    requirement.

      "Section 235
      "(a) Funds held in trust by the High Commissioner of the Trust
    Territory of the Pacific Islands, in his official capacity, as of
    the effective date of this Compact shall remain available as trust
    funds to their designated beneficiaries. The Government of the
    United States, in consultation with the Government of Palau, shall
    appoint a new trustee who shall exercise the functions formerly
    exercised by the High Commissioner of the Trust Territory of the
    Pacific Islands.
      "(b) To provide for the continuity of administration, and to
    assure the Governments [sic] of Palau that the purposes of the laws
    of the United States are carried out and that the funds of any
    other trust fund in which the High Commissioner of the Trust
    Territory of the Pacific Islands has authority of a statutory or
    customary nature shall remain available as trust funds to their
    designated beneficiaries, the Government of the United States
    agrees to assume the authority formerly vested in the High
    Commissioner of the Trust Territory of the Pacific Islands.

      "Section 236
      "Except as otherwise provided, approval of this Compact by the
    Government of the United States shall constitute a pledge of the
    full faith and credit of the United States for the full payment of
    the sums and amounts specified in Article I of this Title. The
    obligation of the Government of the United States under Article I
    of this Title shall be enforceable in the United States Claims
    Court [now United States Court of Federal Claims], or its successor
    court, which shall have jurisdiction in cases arising under this
    Section, 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.

                                "ARTICLE IV                            

                                  "TRADE                              

      "Section 241
      "Palau is not included in the customs territory of the United
    States.

      "Section 242
      "The President of the United States shall proclaim the following
    tariff treatment for articles imported from Palau which shall apply
    during the period of effectiveness of this Title:
      "(a) Unless otherwise excluded, articles imported from Palau,
    subject to the limitations imposed under sections 503(b) and 504(c)
    of title 5 of the Trade Act of 1974 (19 U.S.C. 2463(b): 2464(c)),
    shall be exempt from duty.
      "(b) Only canned tuna provided for in item 112.30 of the Tariff
    Schedules of the United States that is imported from the Federated
    States of Micronesia, the Marshall Islands and Palau during any
    calendar year not to exceed 10 percent of the United States
    consumption of canned tuna 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 aggregate quantity of canned tuna that
    is dutiable under rate column numbered 1 of such item 112.30 for
    that calendar year.
      "(c) The duty-free treatment provided under paragraph (1) shall
    not apply to:
        "(1) watches, clocks and timing apparatus provided for in sub-
      part E of part 2 of schedule 7 of the Tariff Schedules of the
      United States;
        "(2) buttons (whether finished or not finished) provided for in
      item 745.32 of such Schedules;
        "(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 Palau, 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(b)(2) of
    title V of the Trade Act of 1974.

      "Section 243
      "Articles imported from Palau which are not exempt from any duty
    under paragraphs (a), (b), (c) and (d) of Section 242 shall be
    subject to the rates of duty set forth in column numbered 1 of the
    Tariff Schedules of the United States and all products of the
    United States imported into Palau 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.

                                "ARTICLE V                            

                           "FINANCE AND TAXATION                       

      "Section 251
      "The currency of the United States is the official circulating
    legal tender of Palau. Should the Government of Palau 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 Palau 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 such Government 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 Palau, domiciled therein and who is a nonresident
    and not a citizen of the United States, shall be exempt from
    estate, gift, and generation-skipping transfer taxes imposed by the
    Government of the United States.

      "Section 254
      "(a) In determining any income tax imposed by the Government of
    Palau, the Government of Palau shall have authority to impose tax
    upon income derived by a resident of Palau from sources without
    Palau in the same manner and to the same extent as the Government
    of Palau imposes tax upon income derived from within its
    jurisdiction. If the Government of Palau exercises such authority
    as provided in this subsection, any individual resident of Palau
    who is subject to tax by the Government of the United States on
    income which is also taxed by the Government of Palau 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. For purposes
    of this Section, the term 'resident of Palau' shall be deemed to
    include any person who was physically present in Palau for a period
    of 183 or more days during any taxable year. The relief from
    liability referred to in this subsection means only:
        "(1) 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
        "(2) relief in the form of the exclusion under section 911 of
      the United States Internal Revenue Code of 1954.
      "(b) If the Government of Palau 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
      "(a) For purposes of section 936 of the Internal Revenue Code of
    1954 Palau shall be treated as if it was a possession of the United
    States.
      "(b) Subsection (a) of this Section shall not apply to Palau for
    any period after December 31, 1986, during which there is not in
    effect between Palau and the United States an exchange of
    information agreement of the kind described in section 274(h)(6)(C)
    (other than clause (ii) thereof) of the Internal Revenue Code of
    1954.
      "(c) If the tax incentives extended to Palau under subsection (a)
    of this Section are, at any time during which the Compact is in
    effect, reduced, the United States Secretary of the Treasury shall
    negotiate an agreement with the Government of Palau under which,
    when such agreement is approved by law, Palau will be provided with
    benefits substantially equivalent to such reduction in benefits. If
    within the 1-year period after the date of the enactment of the Act
    making the reduction in benefits, an agreement negotiated under the
    preceding sentence is not approved by law, the matter shall be
    submitted to the Arbitration Board established pursuant to Section
    424. For purposes of Article V of this Title, the Secretary of the
    Treasury or his delegate shall be the member of such Board
    representing the Government of the United States. Any decision of
    such Board in the matter when approved by law shall be binding on
    the United States, except that such decision rendered is binding
    only as to whether the United States has provided the substantially
    equivalent benefits referred to in this subsection.
      "(d) For purposes of section 274(h)(3)(A) of the Internal Revenue
    Code of 1954, the term 'North American area' shall include Palau.

      "Section 256
      "This Article shall apply to income earned, and transactions
    occurring, after September 30, 1985, in taxable years ending after
    such date.

                               "TITLE THREE                           

                      "SECURITY AND DEFENSE RELATIONS                  

                                "ARTICLE I                            

                       "AUTHORITY AND RESPONSIBILITY                   

      "Section 311
      "The territorial jurisdiction of the Republic of Palau shall be
    completely foreclosed to the military forces and personnel or for
    the military purposes of any nation except the United States of
    America, and as provided for in Section 312.

      "Section 312
      "The Government of the United States has full authority and
    responsibility for security and defense matters in or relating to
    Palau. Subject to the terms of any agreements negotiated pursuant
    to Article II of this Title, the Government of the United States
    may conduct within the lands, water and airspace of Palau the
    activities and operations necessary for the exercise of its
    authority and responsibility under this Title. The Government of
    the United States may invite the armed forces of other nations to
    use military areas and facilities in Palau in conjunction with and
    under the control of United States Armed Forces.

      "Section 313
      "The Government of Palau shall refrain from actions which the
    Government of the United States determines, after consultation with
    that Government, to be incompatible with its authority and
    responsibility for security and defense matters in or relating to
    Palau.

                                "ARTICLE II                            

                    "DEFENSE SITES AND OPERATING RIGHTS                

      "Section 321
      "The Government of the United States may establish and use
    defense sites in Palau, and may designate for this purpose land and
    water areas and improvements in accordance with the provisions of a
    separate agreement which shall come into force simultaneously with
    this Compact.

      "Section 322
      "(a) When the Government of the United States desires to
    establish or use such a defense site specifically identified in the
    separate agreement referred to in Section 321, it shall so inform
    the Government of Palau which shall make the designated site
    available to the Government of the United States for the duration
    and level of use specified.
      "(b) With respect to any site not specifically identified in the
    separate agreement referred to in Section 321, the Government of
    the United States shall inform the Government of Palau, which shall
    make the designated site available to the Government of the United
    States for the duration and level of use specified, or shall make
    available one alternative site acceptable to the Government of the
    United States. If such alternative site is unacceptable to the
    Government of the United States, the site first designated shall be
    made available after such determination.
      "(c) Compensation in full for designation, establishment or use
    of defense sites is provided in Title Two of this Compact.

      "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 Palau, are set forth in related
    agreements which shall come into effect simultaneously with this
    Compact.

      "Section 324
      "In the exercise in Palau of its authority and responsibility
    under this Title, the Government of the United States shall not
    use, test, store or dispose of nuclear, toxic chemical, gas or
    biological weapons intended for use in warfare and the Government
    of Palau assures the Government of the United States that in
    carrying out its security and defense responsibilities under this
    Title, the Government of the United States has the right to operate
    nuclear capable or nuclear propelled vessels and aircraft within
    the jurisdiction of Palau without either confirming or denying the
    presence or absence of such weapons within the jurisdiction of
    Palau.

                               "ARTICLE III                           

          "DEFENSE TREATIES AND INTERNATIONAL SECURITY AGREEMENTS      

      "Section 331
      "Subject to the terms of this Compact and its related agreements,
    the Government of the United States, exclusively, shall assume and
    enjoy, as to Palau, 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 the
    day preceding the effective date of this Compact; and
      "(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 Palau. Such a
    determination by the Government of the United States shall be
    preceded by appropriate consultation with the Government of Palau.

                                "ARTICLE IV                            

             "SERVICE IN THE ARMED FORCES OF THE UNITED STATES         

      "Section 341
      "Any citizen of Palau entitled to the privileges of Section 141
    of this Compact 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 so
    long as such person does not establish habitual residence in the
    United States, its territories or possessions.

      "Section 342
      "The Government of the United States shall have enrolled, at any
    one time, at least one qualified student from Palau as may be
    nominated by the Government of Palau, in each of:
      "(a) The United States Coast Guard Academy pursuant to 14 U.S.C.
    195; and
      "(b) The United States Merchant Marine Academy pursuant to 46
    U.S.C. 1295b(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.

                                "ARTICLE V                            

                            "GENERAL PROVISIONS                        

      "Section 351
      "(a) The Government of the United States and the Government of
    Palau shall establish a joint committee empowered to consider
    disputes which may arise under the implementation of this Title and
    its related agreements.
      "(b) The membership of the joint committee shall comprise
    selected senior officials of each of the participating 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 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 semi-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. Upon notification by the Government of the United
    States, the joint committee shall meet promptly in combined session
    with other such joint committees so notified. The joint committee
    shall follow such procedures, including the establishment of
    functional subcommittees, as the members may from time to time
    agree.
      "(d) Unresolved issues in the joint committee shall be referred
    to the Government of the United States and the Government of Palau
    for resolution, and the Government of Palau 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 this
    Compact, the Government of the United States shall accord due
    respect to the authority and responsibility of the Government of
    Palau under this Compact and to the responsibility of the
    Government of Palau to assure the well-being of Palau and its
    people. The Government of the United States and the Government of
    Palau agree that the authority and responsibility of the United
    States set forth in this Title are exercised for the mutual
    security and benefit of Palau and the United States, and that any
    attack on Palau 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, or threat thereof, the Government of the
    United States would take action to meet the danger to the United
    States and Palau in accordance with its constitutional processes.

      "Section 353
      "(a) The Government of the United States shall not include the
    Government of Palau as a named party to a formal declaration of
    war, without the consent of the Government of Palau.
      "(b) Absent such consent, this Compact 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 Palau which arise out of armed conflict
    subsequent to the effective date of this Compact 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.

                                "TITLE FOUR                            

                            "GENERAL PROVISIONS                        

                                "ARTICLE I                            

                       "APPROVAL AND EFFECTIVE DATE                   

      "Section 411
      "This Compact shall come into effect upon mutual agreement
    between the Government of the United States, acting in fulfillment
    of its responsibilities as Administering Authority of the Trust
    Territory of the Pacific Islands, and the Government of Palau,
    subsequent to completion of the following:
      "(a) Approval by the Government of Palau in accordance with its
    constitutional processes;
      "(b) Approval by the people of Palau in a referendum called on
    this Compact; and
      "(c) 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 and the Government of Palau
    shall confer promptly at the request of the other on matters
    relating to the provisions of this Compact or of its related
    agreements.

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

      "Section 423
      "If a dispute between the Government of the United States and the
    Government of Palau 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 and each of the two parties 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) 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 VI 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. 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 Palau.

                               "ARTICLE III                           

                           "AMENDMENT AND REVIEW                       

      "Section 431
      "The provisions of this Compact may be amended at any time by
    mutual agreement of the Government of the United States and the
    Government of Palau in accordance with their respective
    constitutional processes.

      "Section 432
      "Upon the fifteenth and thirtieth and fortieth anniversaries of
    the effective date of this Compact, the Government of the United
    States and the Government of Palau shall formally review the terms
    of this Compact and its related agreements and shall consider the
    overall nature and development of their relationship. In these
    formal reviews, the governments shall consider the operating
    requirements of the Government of Palau and its progress in meeting
    the development objectives set forth in the plan referred to in
    Section 231(a). The governments commit themselves to take specific
    measures in relation to the findings of conclusions resulting from
    the review. Any alteration to the terms of this Compact or its
    related agreements shall be made by mutual agreement and the terms
    of this Compact and its related agreements shall remain in force
    until otherwise amended or terminated pursuant to Title Four of
    this Compact.

                                "ARTICLE IV                            

                               "TERMINATION                           

      "Section 441
      "This Compact may be terminated by mutual agreement and subject
    to Section 451.

      "Section 442
      "This Compact may be terminated by the Government of the United
    States subject to Section 452, such termination to 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.

      "Section 443
      "This Compact shall be terminated, pursuant to its constitutional
    processes, by the Government of Palau subject to Section 452 if the
    people of Palau vote in a plebiscite to terminate. The Government
    of Palau 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 such government 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, such
    government 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
      "Should termination occur pursuant to Section 441, economic
    assistance by the Government of the United States shall continue on
    mutually agreed terms.

      "Section 452
      "Should termination occur pursuant to Section 442 or 443, the
    following provisions of this Compact shall remain in full force and
    effect until the fiftieth anniversary of the effective date of this
    Compact and thereafter as mutually agreed:
      "(a) Article I and Section 233 of Title Two;
      "(b) Title Three; and
      "(c) Articles II, III, V and VI of Title Four.

      "Section 453
      "Notwithstanding any other provision of this Compact:
      "(a) The provisions of Section 311, even if Title Three should
    terminate, are binding and shall remain in effect for a period of
    50 years and thereafter until terminated or otherwise amended by
    mutual consent;
      "(b) The related agreements referred to in Article II of Title
    Three shall remain in effect in accordance with their terms; and
      "(c) The Government of the United States reaffirms its continuing
    interest in promoting the long-term economic advancement and self-
    sufficiency of the people of Palau.

      "Section 454
      "Any provision of this Compact which remains in effect by
    operation of Section 452 shall be construed and implemented in the
    same manner as prior to any termination of this Compact pursuant to
    Section 442 or 443.

                                "ARTICLE VI                            

                           "DEFINITION OF TERMS                       

      "Section 461
      "For the purpose of this Compact 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
    administrative districts of Kosrae, Yap, Palau, 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 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) 'Palau' is used in a geographic sense and includes 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 consistent with the Compact and its
    related agreements.
      "(d) 'Government of Palau' means the Government established and
    organized by the Constitution of Palau including all the political
    subdivisions and entities comprising that Government.
      "(e) 'Habitual Residence' means a place of general abode or a
    principal, actual dwelling place of a continuing or lasting nature;
    provided, however, that this term shall not apply to the residence
    of any person who entered the United States for the purpose of full
    time studies as long as such person maintains that status, or who
    has been physically present in the United States or Palau for less
    than one year, or who is a dependent of a resident representative,
    as described in Section 152.
      "(f) For the purposes of Article IV of Title One of this Compact:
        "(1) 'Actual Residence' means physical presence in Palau during
      eighty-five percent of the period of residency required by
      Section 141(a)(3); and
        "(2) 'Certificate of Actual Residence' means a certificate
      issued to a naturalized citizen by the Government which has
      naturalized him stating that the citizen has complied with the
      actual residence requirement of Section 141(a)(3).
      "(g) 'Defense Sites' means those land and water areas and
    improvements thereon in Palau reserved or acquired by the
    Government of Palau for use by the Government of the United States,
    as set forth in the related agreements referred to in Section 321.
      "(h) 'Capital Account' means, for each year of the Compact, those
    portions of the total grant assistance provided in Article I of
    Title Two, which are to be obligated for:
        "(1) the construction or major repair of capital
      infrastructure; or
        "(2) public and private sector projects identified in the
      official overall economic development plan.
      "(i) 'Current Account' means, for each year of the Compact, those
    portions of the total grant assistance provided in Article I of
    Title Two, which are to be obligated for recurring operational
    activities including infrastructure maintenance as identified in
    the annual budget justifications submitted yearly to the Government
    of the United States.
      "(j) 'Official National Development Plan' means the documented
    program of annual development which identifies the specific policy
    and project activities necessary to achieve a specified set of
    economic goals and objectives during the period of free
    association, consistent with the economic assistance authority in
    Title Two. Such a document should include an analysis of population
    trends, manpower requirements, social needs, gross national product
    estimates, resource utilization, infrastructure needs and
    expenditures, and the specific private sector projects required to
    develop the local economy of Palau. Project identification should
    include initial cost estimates, with project purposes related to
    specific development goals and objectives.
      "(k) '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.
      "(l) '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
      "The Government of the United States and the Government of Palau
    shall conclude related agreements which shall come into effect and
    shall survive in accordance with their terms, and which shall be
    construed and implemented in a manner consistent with this Compact,
    as follows:
      "(a) Agreement Regarding the Provision of Telecommunication
    Services by the Government of the United States to Palau Concluded
    Pursuant to Section 131 of the Compact of Free Association;
      "(b) Agreement Regarding the Operation of Telecommunication
    Services of the Government of the United States in Palau, Concluded
    Pursuant to Section 132 of the Compact of Free Association;
      "(c) Agreement on Extradition, Mutual Assistance in Law
    Enforcement Matters and Penal Sanctions Concluded Pursuant to
    Section 175 of the Compact of Free Association;
      "(d) Agreement Regarding United States Economic Assistance to the
    Government of Palau Concluded Pursuant to Section 211(f) of the
    Compact of Free Association;
      "(e) Agreement Regarding Construction Projects in Palau Concluded
    Pursuant to Section 212(a) of the Compact of Free Association;
      "(f) Agreement Regarding Federal Programs and Services, and
    Concluded Pursuant to Article II of Title Two and Section 232 of
    the Compact of Free Association;
      "(g) Agreement Regarding Property Turnover, Concluded Pursuant to
    Section 234 of the Compact of Free Association;
      "(h) Agreement Regarding the Military Use and Operating Rights of
    the Government of the United States in Palau Concluded Pursuant to
    Sections 321 and 322 of the Compact of Free Association; and
      "(i) Status of Forces Agreement Concluded Pursuant to Section 323
    of the Compact of Free Association.
      "(j) Agreement regarding the Jurisdication [sic] and Sovereignty
    of the Republic of Palau over its Territory and the Living and Non-
    living Resources of the Sea.

                               "ARTICLE VII                           

                          "CONCLUDING PROVISIONS                      

      "Section 471
      "(a) The Government of the United States and the Government of
    Palau agree that they have full authority under their respective
    constitutions to enter into this Compact and its related agreements
    and to fulfill all of their respective responsibilities in
    accordance with the terms of this Compact and its related
    agreements. The Governments pledge that they are so committed.
      "(b) The Government of the United States and the Government of
    Palau shall take all necessary steps, of a general or particular
    character, to ensure, not later than the effective date of this
    Compact, that their laws, regulations and administrative procedures
    are such as to effect the commitments referred to in Section
    471(a).
      "(c) Without prejudice to the effects of this Compact under
    international law, this Compact has the force and effect of a
    statute under the laws of the United States.

      "Section 472
      "This Compact may be accepted, by signature or otherwise, by the
    Government of the United States and the Government of Palau. Each
    government shall possess an original English language version.
      "IN WITNESS THEREOF, the undersigned, duly authorized, have
    signed this Compact of Free Association which shall come into
    effect in accordance with its terms between the Government of the
    United States and the Government of Palau.

                     "DONE AT __________, THIS ___ DAY                 

               "OF __, ONE THOUSAND NINE HUNDRED EIGHTY-FIVE           

                            "FOR THE GOVERNMENT                        

                                    "OF                                

                       "THE UNITED STATES OF AMERICA                   

                               "____________                           

                     "DONE AT __________, THIS ___ DAY                 

               "OF __, ONE THOUSAND NINE HUNDRED EIGHTY-FIVE           

                            "FOR THE GOVERNMENT                        

                                    "OF                                

                          "THE REPUBLIC OF PALAU                      

                              "____________".                          
      [For transfer of authorities, functions, personnel, and assets of
    the Coast Guard, including the authorities and functions of the
    Secretary of Transportation relating thereto, to the Department of
    Homeland Security, and for treatment of related references, see
    sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic
    Security, and the Department of Homeland Security Reorganization
    Plan of November 25, 2002, as modified, set out as a note under
    section 542 of Title 6.]


-EXEC-
    PROC. NO. 6726. PLACING INTO FULL FORCE AND EFFECT COMPACT OF FREE
                    ASSOCIATION WITH REPUBLIC OF PALAU
      Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, provided:
      Since July 18, 1947, the United States has administered the
    United Nations Trust Territory of the Pacific Islands ("Trust
    Territory"), which has included the Northern Mariana Islands, the
    Federated States of Micronesia, the Marshall Islands, and Palau.
      On November 3, 1986, a Covenant between the United States and the
    Northern Mariana Islands [48 U.S.C. 1801 note] came into force.
    This Covenant established the Commonwealth of the Northern Mariana
    Islands as a self-governing Commonwealth in political union with
    and under the sovereignty of the United States.
      On October 21, 1986, in the case of the Republic of the Marshall
    Islands, and on November 3, 1986, in the case of the Federated
    States of Micronesia, Compacts of Free Association with the United
    States [48 U.S.C. 1901 note] became effective. Under the Compacts,
    the Federated States of Micronesia and the Republic of the Marshall
    Islands became self-governing sovereign states, in free association
    with the United States. Following the changes in political status
    of the Northern Mariana Islands, the Marshall Islands, and the
    Federated States of Micronesia, the Trusteeship Agreement ceased to
    be applicable to those entities and only Palau remained as the
    Trust Territory of the Pacific Islands.
      On January 10, 1986, the Government of the United States and the
    Government of Palau concluded a Compact of Free Association [set
    out above] similar to those that the United States entered into
    with the Republic of the Marshall Islands and with the Federated
    States of Micronesia. As in those instances, it was specified that
    the Compact with Palau would come into effect upon (1) mutual
    agreement between the Government of the United States, acting in
    fulfillment of its responsibilities as Administering Authority of
    the Trust Territory of the Pacific Islands, and the Government of
    Palau; (2) the approval of the Compact by the two Governments, in
    accordance with their constitutional processes; and (3) the
    approval of the Compact by plebiscite in Palau.
      In Palau the Compact has been approved by the Government in
    accordance with its constitutional processes and by a United
    Nations-observed plebiscite on November 9, 1993, a sovereign act of
    self-determination. In the United States the Compact was approved
    by Public Law 99-658 of November 14, 1986 [48 U.S.C. 1931 et seq.],
    and Public Law 101-219 of December 12, 1989 [48 U.S.C. 1951 et
    seq.].
      On May 25, 1994, the Trusteeship Council of the United Nations
    concluded that the Government of the United States had
    satisfactorily discharged its obligations as the Administering
    Authority under the terms of the Trusteeship Agreement and that the
    people of Palau had freely exercised their right to self-
    determination and considered that it was appropriate for the
    Trusteeship Agreement to be terminated. The Council asked the
    United States to consult with the Government of Palau and to agree
    on a date, on or about October 1, 1994, for entry into force of
    their new status agreement.
      On July 15, 1994, the Government of the United States and the
    Government of the Republic of Palau agreed, pursuant to section 411
    of the Compact of Free Association, that as between the United
    States and the Republic of Palau, the effective date of the Compact
    shall be October 1, 1994.
      As of this day, September 27, 1994, the United States has
    fulfilled its obligations under the Trusteeship Agreement with
    respect to the Republic of Palau. On October 1, 1994, the Compact
    will enter into force between the United States and the Republic of
    Palau, and Palau will thereafter be self-governing and no longer
    subject to the Trusteeship. In taking these actions, the United
    States is implementing the freely expressed wishes of the people of
    Palau.
      NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United
    States of America, by the authority vested in me by the
    Constitution and laws of the United States, including sections 101
    and 102 of the Joint Resolution to approve the "Compact of Free
    Association" between the United States and the Government of Palau,
    and for other purposes, approved on November 14, 1986 (Public Law
    99-658) [48 U.S.C. 1931, 1932], and section 101 of the Joint
    Resolution to authorize entry into force of the Compact of Free
    Association between the United States and the Government of Palau,
    and for other purposes, approved on December 12, 1989 (Public Law
    101-219) [48 U.S.C. 1951], and pursuant to section 1002 of the
    Covenant to Establish a Commonwealth of the Northern Mariana
    Islands in Political Union with the United States of America [48
    U.S.C. 1801 note], and consistent with sections 101 and 102 of the
    Joint Resolution to approve the "Compact of Free Association" and
    for other purposes, approved on January 14, 1986 (Public Law 99-
    239) [48 U.S.C. 1901, 1902], do hereby find, declare, and proclaim
    as follows:
      Section 1. I determine that the Trusteeship Agreement for the
    Pacific Islands will be no longer in effect with respect to the
    Republic of Palau as of October 1, 1994, at one minute past one
    o'clock p.m. local time in Palau. This constitutes the
    determination referred to in section 1002 of the Covenant with the
    Northern Mariana Islands (Public Law 94-241).
      Sec. 2. The Compact of Free Association with the Republic of
    Palau will be in full force and effect as of October 1, 1994, at
    one minute past one o'clock p.m. local time in Palau.
      Sec. 3. I am gratified that the people of the Republic of Palau,
    after 47 years of Trusteeship, have freely chosen to establish a
    relationship of Free Association with the United States.
      IN WITNESS WHEREOF, I have hereunto set my hand this twenty-
    seventh day of September, in the year of our Lord nineteen hundred
    and ninety-four, and of the Independence of the United States of
    America the two hundred and nineteenth.
                                                     William J. Clinton.

-FOOTNOTE-
    (!1) So in original. Probably should be "or".

    (!2) So in original. Probably should be subsection "(c)".


-End-



-CITE-
    48 USC Sec. 1932                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part A - Approval of Compact and Supplemental Provisions

-HEAD-
    Sec. 1932. Extension of Compact of Free Association to Palau

-STATUTE-
      (a) The interpretation of and United States Policy Regarding the
    Compact of Free Association set forth in section 1904 of this title
    shall apply to the Compact of Free Association with Palau.
      (b) The provisions of section 1905 of this title, except for
    subsection (i), section 1906 of this title, section 1910 of this
    title, and section 1911(a) and (d) of this title shall apply to
    Palau in the same manner and to the same extent as such sections
    apply to the Marshall Islands.

-SOURCE-
    (Pub. L. 99-658, title I, Sec. 102, Nov. 14, 1986, 100 Stat. 3675.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact of Free Association with Palau, referred to in
    subsec. (a), is the Compact of Free Association between the United
    States and the Government of Palau, which is contained in section
    201 of Pub. L. 99-658, set out as a note under section 1931 of this
    title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1933                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part A - Approval of Compact and Supplemental Provisions

-HEAD-
    Sec. 1933. Supplemental provisions

-STATUTE-
    (a) Civic Action Teams
      In recognition of the special development needs of Palau and the
    Marshall Islands, the United States shall make available United
    States military Civic Action Teams for use in Palau or the Marshall
    Islands under terms and conditions mutually agreed upon by the
    Government of the United States and the Governments of Palau or the
    Marshall Islands, as appropriate. The Government of Palau may use
    the amount of $250,000 annually from current account funds provided
    pursuant to section 211 of the Compact to defray expenditures
    attendant to the operation of the Civic Action Teams made available
    pursuant to this subsection. The Government of the Marshall Islands
    may use the amount of $250,000 annually from current account funds
    provided under section 211 of Title Two of the Compact of Free
    Association with the Marshall Islands to defray expenditures
    attendant to the operation of the Civic Action Teams made available
    pursuant to this subsection.
    (b) Inventory and study of natural, historic, and other resources
      The Secretary of the Interior shall conduct, upon request of
    Palau, the Federated States of Micronesia or the Marshall Islands,
    and through the Director of the National Park Service, a
    comprehensive inventory and study of the most unique and
    significant natural, historical, cultural, and recreational
    resources of Palau, the Federated States of Micronesia or the
    Marshall Islands. Areas or sites exhibiting such qualities shall be
    described and evaluated with the objective of the preservation of
    their values and their careful use and appreciation by the public,
    along with a determination of their potential for attracting
    tourism. Alternative methodologies for such preservation and use
    shall be developed for each area or site (including continued
    assistance from the National Park Service); current or impending
    damage or threats to the resources of such areas or sites shall be
    identified and evaluated; and authorities needed to properly
    protect and allow for public use and appreciation shall be
    identified and discussed. Such inventory and study shall be
    conducted in full cooperation and consultation with affected
    governmental officials and the interested public. A full report on
    such inventory and study shall be transmitted to Palau or the
    Federated States of Micronesia or the Marshall Islands, the
    Committee on Interior and Insular Affairs of the United States
    House of Representatives and the Committee on Energy and Natural
    Resources of the United States Senate no later than two complete
    calendar years after November 14, 1986. The inventory and study
    shall also identify areas or sites which, if they were located in
    the United States, would qualify to be listed on the Registry of
    Natural Landmarks and the National Register of Historic Places.
    (c) Omitted
    (d) Peleliu and Angaur
      Not later than one year after November 14, 1986, the Secretary of
    Agriculture, after appropriate studies conducted in consultation
    with the Government of Palau, shall report to the President and the
    Congress concerning the feasibility and cost of rehabilitating and
    restoring the fertility of the topsoil of the islands of Peleliu
    and Angaur. Upon the request of the Government of Palau, the
    President shall make the report of the Secretary of Agriculture
    available to the Government of Palau. Technical assistance to
    accomplish such rehabilitation and restoration, if feasible, may be
    provided to the Government of Palau on a nonreimbursable basis,
    subject to the availability of appropriated funds.
    (e) Power generation
      Neither the Secretary of the Treasury nor any other officer or
    agent of the United States shall pay or transfer any portion of the
    sum and amounts payable to the Government of Palau pursuant to this
    joint resolution to any party other than the Government of Palau,
    except under the procedures established by the Compact and its
    related agreements. No funds appropriated pursuant to the Compact,
    this Act, or any other Act for grants or other assistance to Palau
    may be used to satisfy any obligation or expense incurred by Palau
    prior to November 14, 1986, with respect to any contract or debt
    related to any electrical generating plant or related facilities
    entered into or incurred by Palau which has not been specifically
    authorized by Congress in advance, except that the Government of
    Palau may use any portion of the annual grant under section 211(b)
    (!1) not required to be devoted to the energy needs of those parts
    of Palau not served by its central power generating facilities and
    any portion of the funds under section 212(b) of the Compact for
    such purpose.

    (f) Reduction of appropriations
      Amounts appropriated to be paid pursuant to section 177 of
    Article I of Title One or Articles I and III of Title Two of the
    Compact of Free Association with the Federated States of Micronesia
    and the Marshall Islands, as set forth in Title II of the Compact
    of Free Association Act of 1985, or pursuant to section 103(h),
    103(k), or 105(m) of such Act [48 U.S.C. 1903(h), (k), 1905(m)]
    (Public Law 99-239), or pursuant to Article I of Title Two of the
    Compact with Palau, as set forth in Title II of this joint
    resolution, or subsection (l) (!2) of this section shall not be
    reduced, notwithstanding Public Law 99-177, Public Law 99-366, and
    other law enacted to implement Public Law 99-177, or any other
    provision of law.

    (g) Understandings, interpretations, and policy statements
      The Congress reaffirms all of the understandings,
    interpretations, and policy statements contained in Public Law 99-
    239 (99 Stat. 1770) [48 U.S.C. 1901 et seq., 2001 et seq.].
    Congressional Resolution 4-60 adopted by the 4th Congress of the
    Federated States of Micronesia on March 26, 1986 and Resolution No.
    62 adopted by the Nitijela of the Marshall Islands on February 18,
    1986 do not exclude, limit or modify any provision of the Compact
    of Free Association as approved by the United States. To the extent
    that any understandings, interpretations, and policy statements
    contained in such Resolutions are inconsistent with the provisions
    of Public Law 99-239, the United States does not concur therein.
    The President shall take such steps, including but not limited to,
    communicating with the Governments of the Federated States of
    Micronesia and the Republic of the Marshall Islands, as may be
    necessary to preserve all rights of the United States in connection
    with interpretation and implementation of such Public Law.
    (h) Additional provisions relating to Title Three of Compact
      (1) The Government of the United States recognizes and respects
    the scarcity and special importance of land in Palau. In making any
    designation of land pursuant to section 322 of the Compact, 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 the requirement through public real
    property, where available, rather than through private real
    property.
      (2) The Armed Forces of other nations invited to use military
    areas and facilities in Palau pursuant to section 312 of the
    Compact shall be permitted only as it is incident to the authority
    and under the control of the United States. The activities of such
    third country forces shall be subject to the same limitations and
    restrictions applicable to the authority of the United States under
    the terms of the Compact.
      (3) The Government of the United States considers "Exclusive use"
    areas established for the United States pursuant to Title Three of
    the Compact to be "within the jurisdiction of Palau," as that term
    is used in section 324 of the Compact.
    (i) Availability of appropriations
      Notwithstanding any other provision of law, funds appropriated
    for the Compact of Free Association, Public Law 99-239 [48 U.S.C.
    1901 et seq., 2001 et seq.], or this joint resolution, in the act
    of making supplemental appropriations for fiscal year 1986, shall
    remain available until expended.
    (j) Authority to contract or make payments
      (1), (2) Omitted
      (3) No authority under this subsection to enter into contracts or
    to make payments shall be effective except to the extent and in
    such amounts as provided in advance in appropriations Acts. Any
    provision of this subsection which authorizes the enactment of new
    budget authority shall be effective only for fiscal years beginning
    after September 30, 1985.
    (k) Annual report
      The Departments of Energy and Interior are directed to provide
    the Committees on Appropriations of the House and Senate with a
    report by December 1 of each fiscal year detailing how funds were
    spent during the previous fiscal year for the special medical care
    and logistical support program for Rongelap and Utrik and for the
    agriculture and food programs for Eniwetok and Bikini as referenced
    in Section 103(h) of Public Law 99-239 [48 U.S.C. 1903(h)]. The
    report shall also specify the anticipated needs during the current
    and following fiscal years in order to meet the radiological health
    care and logistical support program for Rongelap and Utrik and the
    planting, agricultural maintenance, and food programs for Eniwetok
    and Bikini. It is the sense of the Congress that the special
    medical care and logistical support program for Rongelap and Utrik
    and for the agriculture and food programs for Eniwetok and Bikini
    described in section 103(h) of Public Law 99-239 represent special
    and continuing moral commitments of the United States which will be
    annually funded to the extent of the need of the populations of
    such atolls for such assistance.

-SOURCE-
    (Pub. L. 99-658, title I, Sec. 104, Nov. 14, 1986, 100 Stat. 3675;
    Pub. L. 101-219, title I, Sec. 105, Dec. 12, 1989, 103 Stat. 1871.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the United States and the Government of Palau,
    which is contained in section 201 of Pub. L. 99-658, set out as a
    note under section 1931 of this title.
      The Compact of Free Association with the Marshall Islands and the
    Compact of Free Association with the Federated States of Micronesia
    and the Marshall Islands, referred to in subsecs. (a) and (f), are
    contained in the Compact of Free Association, which is contained in
    section 201 of Pub. L. 99-239, set out as a note under section 1901
    of this title.
      This joint resolution and this Act, referred to in subsecs. (e),
    (f), and (i), is Pub. L. 99-658, Nov. 14, 1986, 100 Stat. 3672, as
    amended, which is classified generally to this part. Title II of
    this joint resolution enacted section 1934 of this title and
    provisions set out as a note under section 1931 of this title. For
    complete classification of this Act to the Code, see Tables.
      The Compact of Free Association Act of 1985 and Public Law 99-
    239, referred to in subsecs. (f), (g), and (i), is Pub. L. 99-239,
    Jan. 14, 1986, 99 Stat. 1770, as amended, which is classified
    principally to part A of subchapter I of this chapter and chapter
    19 (Sec. 2001 et seq.) of this title. For complete classification
    of this Act to the Code, see Short Title note set out under section
    1901 of this title and Tables.
      Public Law 99-177, referred to in subsec. (f), is Pub. L. 99-177,
    Dec. 12, 1985, 99 Stat. 1037, as amended. For complete
    classification of this Act to the Code, see Tables.
      Public Law 99-366, referred to in subsec. (f), is Pub. L. 99-366,
    July 31, 1986, 100 Stat. 773. For complete classification of this
    Act to the Code, see Tables.
      The Compact of Free Association, referred to in subsecs. (g) and
    (i), probably means the Compact of Free Association between the
    Government of the United States and the Governments of the Marshall
    Islands and the Federated States of Micronesia, which is contained
    in section 201 of Pub. L. 99-239, set out as a note under section
    1901 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.
      Section is comprised of section 104 of Pub. L. 99-658. Subsec.
    (c) of section 104 of Pub. L. 99-658 amended section 1905 of this
    title. Subsec. (j)(1) and (2) of section 104 of Pub. L. 99-658
    amended sections 460ff-3 and 460ff-5 of Title 16, Conservation.


-MISC1-
                                AMENDMENTS                            
      1989 - Subsec. (e). Pub. L. 101-219 amended subsec. (e)
    generally. Prior to amendment, subsec. (e) read as follows:
    "Neither the Secretary of the Treasury nor any other officer or
    agent of the United States shall pay or transfer any portion of the
    sums and amounts payable to the Government of Palau pursuant to
    this joint resolution to any party other than the Government of
    Palau. The provisions of section 174(a) of the Compact shall apply
    with respect to any action based on a contract or debt related to
    any electrical generating plant or related facilities entered into
    or incurred by Palau prior to the date of enactment of this joint
    resolution."

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Interior and Insular Affairs of House of
    Representatives changed to Committee on Natural Resources of House
    of Representatives by House Resolution No. 5, One Hundred Third
    Congress, Jan. 5, 1993. Committee on Natural Resources of House of
    Representatives treated as referring to Committee on Resources of
    House of Representatives by section 1(a) of Pub. L. 104-14, set out
    as a note preceding section 21 of Title 2, The Congress.

-FOOTNOTE-
    (!1) So in original. Probably should be followed by "of the
         Compact".

    (!2) So in original. This section does not contain a subsec.
         (l).


-End-



-CITE-
    48 USC Sec. 1934                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part A - Approval of Compact and Supplemental Provisions

-HEAD-
    Sec. 1934. Jurisdiction

-STATUTE-
    (a) Maritime and territorial jurisdiction
      With respect to section 321 of the Compact of Free Association
    and its related agreements, the jurisdictional provisions set forth
    in subsection (b) of this section shall apply only to the citizens
    and nationals of the United States and aliens lawfully admitted to
    the United States for permanent residence who are in Palau.
    (b) Defense sites
      The defense sites of the United States established in Palau in
    accordance with the Compact of Free Association and its related
    agreements are within the special maritime and territorial
    jurisdiction of the United States as set forth in section 7, title
    18.
    (c) Offenses
      (1) Any person referred to in subsection (a) of this section who
    within or upon such defense sites is guilty of any act or omission
    which, although not made punishable by any enactment of Congress,
    would be punishable if committed or omitted within the jurisdiction
    of the territory of Guam by the laws thereof, in force at the time
    of such act or omission, shall be guilty of a like offense and
    subject to a like punishment.
      (2) The District Court of Guam shall have jurisdiction to try all
    criminal offenses against the United States, including the laws of
    Guam made applicable to the defense sites in Palau by virtue of
    subsection (c)(1) of this section, committed by any person referred
    to in subsection (a) of this section.
      (3) The District Court of Guam may appoint one or more magistrate
    judges for the defense sites in Palau. Such Magistrate Judges shall
    have the power and the status of Magistrate Judges appointed
    pursuant to chapter 43, title 28: Provided however, That such
    Magistrate Judges shall have the power to try persons accused of,
    and sentence persons convicted of, petty offenses, as defined in
    section 1(3),(!1) title 18, including violations of regulations for
    the maintenance of peace, order, and health issued by the
    Commanding Officer on such defense sites, without being subject to
    the restrictions provided for in section 3401(b), title 18.


-SOURCE-
    (Pub. L. 99-658, title II, Sec. 202, Nov. 14, 1986, 100 Stat. 3704;
    Pub. L. 101-650, title III, Sec. 321, Dec. 1, 1990, 104 Stat.
    5117.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact of Free Association, referred to in subsecs. (a) and
    (b), is the Compact of Free Association between the United States
    and the Government of Palau, which is contained in section 201 of
    Pub. L. 99-658, set out as a note under section 1931 of this title.
      Section 1 of title 18, referred to in subsec. (c)(3), was
    repealed by Pub. L. 98-473, title II, Sec. 218(a)(1), Oct. 12,
    1984, 98 Stat. 2027.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.
      Section was enacted as part of title II of Pub. L. 99-658, not as
    part of title I of Pub. L. 99-658 which comprises this part.

-CHANGE-
                              CHANGE OF NAME                          
      Words "magistrate judges" and "Magistrate Judges" substituted for
    "magistrates" and "Magistrates", respectively, wherever appearing
    in subsec. (c)(3) pursuant to section 321 of Pub. L. 101-650, set
    out as a note under section 631 of Title 28, Judiciary and Judicial
    Procedure.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-


-CITE-
    48 USC Part B - Implementation of Compact                   01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
                    PART B - IMPLEMENTATION OF COMPACT                

-End-



-CITE-
    48 USC Sec. 1951                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1951. Entry into force of Compact

-STATUTE-
      Notwithstanding the provisions of Section 101(d)(1)(B) of Public
    Law 99-658 [48 U.S.C. 1931(d)(1)(B)], entry into force of the
    Compact of Free Association between the United States and Palau
    (set forth in title II of Public Law 99-658 and hereafter in this
    joint resolution referred to as the "Compact") in accordance with
    subsections (a) and (d) of section 101 of Public Law 99-658 (100
    Stat. 3673) [48 U.S.C. 1931(a), (d)] is hereby authorized - 
        (1) subject to the condition that the Compact, as approved by
      the Congress in Public Law 99-658, is approved by the requisite
      percentage of the votes cast in a referendum conducted pursuant
      to the Constitution of Palau, and such approval is free from any
      legal challenge, and
        (2) upon expiration of 30 days, in which either the House of
      Representatives or the Senate of the United States is in session,
      after the President notifies the Committees on Interior and
      Insular Affairs and Foreign Affairs of the House of
      Representatives and the Committee on Energy and Natural Resources
      of the Senate of the effective date of the Compact.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 101, Dec. 12, 1989, 103 Stat.
    1870.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Public Law 99-658, referred to in text, is Pub. L. 99-658, Nov.
    14, 1986, 100 Stat. 3672, as amended, which is classified generally
    to part A of this subchapter. Title II of Pub. L. 99-658 enacted
    section 1934 of this title and provisions set out as a note under
    section 1931 of this title. For complete classification of this Act
    to the Code, see Tables.
      The Compact of Free Association between the United States and
    Palau, referred to in text, is contained in section 201 of Pub. L.
    99-658, set out as a note under section 1931 of this title.
      This joint resolution, referred to in text, is Pub. L. 101-219,
    Dec. 12, 1989, 103 Stat. 1870, which enacted this part and sections
    1846 and 1972 of this title, amended sections 1615 and 1933 of this
    title and section 3791 of Title 42, The Public Health and Welfare,
    and enacted provisions set out as a note under section 1905 of
    Title 44, Public Printing and Documents. For complete
    classification of this joint resolution to the Code, see Tables.
      For Oct. 1, 1994, as the effective date of the Compact, referred
    to in par. (2), see Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777,
    set out as a note under section 1931 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Interior and Insular Affairs of House of
    Representatives changed to Committee on Natural Resources of House
    of Representatives by House Resolution No. 5, One Hundred Third
    Congress, Jan. 5, 1993. Committee on Natural Resources of House of
    Representatives treated as referring to Committee on Resources of
    House of Representatives by section 1(a) of Pub. L. 104-14, set out
    as a note preceding section 21 of Title 2, The Congress.
      Committee on Foreign Affairs of House of Representatives treated
    as referring to Committee on International Relations of House of
    Representatives by section 1(a) of Pub. L. 104-14, set out as a
    note preceding section 21 of Title 2.

-End-



-CITE-
    48 USC Sec. 1952                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1952. Fiscal procedures assistance

-STATUTE-
      Upon request of the Government of Palau, the Secretary of the
    Interior shall provide assistance to the Government of Palau to
    develop and promulgate regulations for the effective expenditure of
    funds received pursuant to this joint resolution, Public Laws 99-
    658 [48 U.S.C. 1931 et seq.] and 99-239 [48 U.S.C. 1901 et seq.,
    2001 et seq.], or any other Act of Congress.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 102, Dec. 12, 1989, 103 Stat.
    1870.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This joint resolution, referred to in text, is Pub. L. 101-219,
    Dec. 12, 1989, 103 Stat. 1870, which enacted this part and sections
    1846 and 1972 of this title, amended sections 1615 and 1933 of this
    title and section 3791 of Title 42, The Public Health and Welfare,
    and enacted provisions set out as a note under section 1905 of
    Title 44, Public Printing and Documents. For complete
    classification of this joint resolution to the Code, see Tables.
      Public Law 99-658, referred to in text, is Pub. L. 99-658, Nov.
    14, 1986, 100 Stat. 3672, as amended, which is classified generally
    to part A of this subchapter. For complete classification of this
    Act to the Code, see Tables.
      Public Law 99-239, referred to in text, is Pub. L. 99-239, Jan.
    14, 1986, 99 Stat. 1770, as amended, known as the Compact of Free
    Association Act of 1985, which is classified principally to part A
    of subchapter I of this chapter and chapter 19 (Sec. 2001 et seq.)
    of this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1901 of this title and
    Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1953                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1953. Antidrug program

-STATUTE-
    (a) Plan
      The Department of the Interior shall develop, in cooperation with
    the Government of Palau and the National Drug Control Policy
    Office, a plan for an antidrug program in Palau. The plan shall be
    submitted to the Committees on Interior and Insular Affairs,
    Foreign Affairs, and Appropriations of the House of Representatives
    and the Committees on Energy and Natural Resources and
    Appropriations of the Senate by April 1, 1990. The plan shall: (1)
    identify the specific needs and costs of such an antidrug program;
    (2) shall identify all existing resources to be allocated for its
    implementation by the Government of the United States and the
    Government of Palau; and (3) shall recommend priority use for
    additional resources, assuming such resources are made available.
    (b) Agreement
      Following completion of the plan, the President and the
    Government of Palau shall negotiate an agreement to facilitate
    implementation of the plan. Such agreement may include - 
        (1) that the Government of Palau may request, on a long-term or
      case-by-case basis, that the officers of United States law
      enforcement agencies may conduct investigations consistent with
      implementation of the plan in cooperation with the law
      enforcement agencies of the Government of Palau;
        (2) that the Government of Palau or the Government of the
      United States may agree to provide specific resources, on a one-
      time or a multiyear basis, to strengthen the antidrug program;
      and
        (3) a specific description of the technical assistance,
      training, and equipment to be provided to Palau by the United
      States necessary to implement the plan.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 103, Dec. 12, 1989, 103 Stat.
    1870.)

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Interior and Insular Affairs of House of
    Representatives changed to Committee on Natural Resources of House
    of Representatives by House Resolution No. 5, One Hundred Third
    Congress, Jan. 5, 1993. Committee on Natural Resources of House of
    Representatives treated as referring to Committee on Resources of
    House of Representatives by section 1(a) of Pub. L. 104-14, set out
    as a note preceding section 21 of Title 2, The Congress.
      Committee on Foreign Affairs of House of Representatives treated
    as referring to Committee on International Relations of House of
    Representatives by section 1(a) of Pub. L. 104-14, set out as a
    note preceding section 21 of Title 2.

-End-



-CITE-
    48 USC Sec. 1954                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1954. Public auditor and special prosecutor

-STATUTE-
      (a) (!1) Upon request of the Government of Palau the President
    shall provide, on a nonreimbursable basis, appropriate technical
    assistance to the public auditor or special prosecutor. The
    assistance provided pursuant to this subsection for the first five
    years after the effective date of the Compact shall, upon the
    request of the Government of Palau, and to the extent personnel are
    available, include (but not be limited to) the full time services
    of - 

        (1) an auditor or accountant, as determined by the public
      auditor, for the office of public auditor; and
        (2) an attorney or investigator, as determined by the special
      prosecutor, for the office of special prosecutor.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 104, Dec. 12, 1989, 103 Stat.
    1871.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      For Oct. 1, 1994, as the effective date of the Compact, referred
    to in text, see Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, set
    out as a note under section 1931 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-FOOTNOTE-
    (!1) So in original. No subsec. (b) has been enacted.


-End-



-CITE-
    48 USC Sec. 1955                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1955. Audit certification

-STATUTE-
      The chief officer of any agency conducting an audit pursuant to
    paragraph (1) of sections 1902(c) and 1903(m) of this title and
    section 1931(d)(1)(C) of this title shall certify that audit.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 106, Dec. 12, 1989, 103 Stat.
    1871.)

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1956                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1956. Acquisition of defense sites

-STATUTE-
      The provisions of title III of the Compact relating to future use
    by the United States of defense sites in Palau do not restrict the
    authority of the President of the United States to - 
        (1) request additional funding, subject to appropriation,
      related to the use of privately owned land in Palau pursuant to
      article II of title III of the Compact as may be appropriate in
      light of actual land use requirements, independent appraisals of
      such privately owned land accepted by both governments, and other
      appropriate documentation of actual land use costs; and
        (2) consent to an extension of the time set forth in a
      subsidiary agreement to such article in which the Government of
      Palau is required to make such land available to the United
      States.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 107, Dec. 12, 1989, 103 Stat.
    1872.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the United States and the Government of Palau,
    which is contained in section 201 of Pub. L. 99-658, set out as a
    note under section 1931 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1957                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1957. Federal programs coordination personnel

-STATUTE-
      The Secretary of the Interior shall station at least one
    professional staff person in each of the Offices of the United
    States Representatives in the Republic of Palau, the Federated
    States of Micronesia, and the Republic of the Marshall Islands to
    provide Federal program coordination and technical assistance to
    such governments as authorized under Public Laws 99-239 [48 U.S.C.
    1901 et seq., 2001 et seq.] and 99-658 [48 U.S.C. 1931 et seq.]. In
    meeting the purposes of this section the Secretary shall select
    qualified persons following consultations with the Interagency
    Group on Freely Associated State Affairs.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 108, Dec. 12, 1989, 103 Stat.
    1872.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Public Law 99-239, referred to in text, is Pub. L. 99-239, Jan.
    14, 1986, 99 Stat. 1770, as amended, known as the Compact of Free
    Association Act of 1985, which is classified principally to part A
    of subchapter I of this chapter and chapter 19 (Sec. 2001 et seq.)
    of this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1901 of this title and
    Tables.
      Public Law 99-658, referred to in text, is Pub. L. 99-658, Nov.
    14, 1986, 100 Stat. 3672, as amended, which is classified generally
    to part A of this subchapter. For complete classification of this
    Act to the Code, see Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1958                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1958. Referendum costs

-STATUTE-
      The Secretary of the Interior shall provide such sums as may be
    necessary for a further referendum on approval of the Compact, if
    one is required, or other appropriate costs associated with the
    approval process in Palau.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 109, Dec. 12, 1989, 103 Stat.
    1872.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in text, is the Compact of Free
    Association between the United States and the Government of Palau,
    which is contained in section 201 of Pub. L. 99-658, set out as a
    note under section 1931 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1959                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1959. Agreements

-STATUTE-
    (a) Effective date of certain agreements
      An agreement between the United States and the Government of the
    Republic of Palau consistent with the agreements approved by Public
    Law 101-62 (101 (!1) Stat. 162) shall take effect without further
    authorization thirty days after submission to Congress.

    (b) Extensions
      The provisions of article IX, paragraph 5(a) of the Agreement
    referred to in section 462(e) of the Compact of Free Association as
    approved by Public Law 99-239, and article IX, paragraph 5(a) of
    the agreement referred to in section 462(f) of the Compact of Free
    Association for Palau as approved by Public Law 99-658, are
    extended, in accordance with the terms thereof, until October 1,
    1998, unless earlier terminated or further extended by the laws of
    the United States.
    (c) Authorization
      Funding to implement the provisions of this part, and for
    assistance to the central health care facility and the prison in
    Palau, and the offices of Public Auditor and Special Prosecutor as
    proposed in the agreement entitled "Agreement Concerning Special
    Programs related to the Entry into Force of the Compact of Free
    Association Between the Government of the United States and the
    Government of the Republic of Palau" signed on May 26, 1989, shall
    be available pursuant to the authorization in section 105(c) of
    Public Law 99-239 [48 U.S.C. 1905(c)] as referenced by section
    102(b) of Public Law 99-658 [48 U.S.C. 1932(b)] or from funds
    appropriated for technical assistance to the Secretary of the
    Interior.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 110, Dec. 12, 1989, 103 Stat.
    1872.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Public Law 101-62, referred to in subsec. (a), is Pub. L. 101-62,
    July 26, 1989, 103 Stat. 162, which is set out as a note under
    section 1901 of this title.
      The Compact of Free Association as approved by Public Law 99-239,
    referred to in subsec. (b), is the Compact of Free Association
    between the Government of the United States and the Governments of
    the Marshall Islands and the Federated States of Micronesia, which
    is contained in section 201 of Pub. L. 99-239, set out as a note
    under section 1901 of this title.
      The Compact of Free Association for Palau as approved by Public
    Law 99-658, referred to in subsec. (b), is the Compact of Free
    Association between the United States and the Government of Palau,
    which is contained in section 201 of Pub. L. 99-658, set out as a
    note under section 1931 of this title.
      Public Law 99-239, referred to in subsec. (b), is Pub. L. 99-239,
    Jan. 14, 1986, 99 Stat. 1770, as amended, known as the Compact of
    Free Association Act of 1985, which is classified principally to
    part A of subchapter I of this chapter and chapter 19 (Sec. 2001 et
    seq.) of this title. For complete classification of this Act to the
    Code, see Short Title note set out under section 1901 of this title
    and Tables.
      Public Law 99-658, referred to in subsec. (b), is Pub. L. 99-658,
    Nov. 14, 1986, 100 Stat. 3672, as amended, which is classified
    generally to part A of this subchapter. For complete classification
    of this Act to the Code, see Tables.
      This part, referred to in subsec. (c), was in the original "this
    title", meaning title I of Pub. L. 101-219, Dec. 12, 1989, 103
    Stat. 1870, which enacted this part and amended section 1933 of
    this title. For complete classification of this title to the Code,
    see Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-FOOTNOTE-
    (!1) So in original. Probably should be "103".


-End-



-CITE-
    48 USC Sec. 1960                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1960. Modification of energy assistance funding

-STATUTE-
    (a) Fulfillment of United States obligations
      The President is authorized to negotiate and conclude an
    agreement, including the obligation of United States funds, with
    the Government of Palau which shall provide the following:
        (1) The sum of $28,000,000, adjusted by section 215 of the
      Compact at the time of its availability to Palau, shall be
      provided to Palau pursuant to section 211(b) of the Compact and
      upon entry into force of the Compact.
        (2) Palau shall pay to the United States, on or before the 15th
      anniversary of the effective date of the Compact, an amount equal
      to the net economic cost to the United States of making available
      the section 211(b) funds in the manner specified in this
      subsection rather than as provided in section 211(b).
        (3) Such economic cost shall reflect the time value of money
      and be determined using the rate determined for an equivalent
      loan by the Federal Financing Bank as of the date these funds are
      advanced, and using an inflation rate consistent with the
      determinations made under the provisions of section 215 of the
      Compact.
        (4) If the Government of Palau has not paid such net economic
      costs to the United States by the 15th anniversary of the
      effective date of the Compact, then the United States shall be
      automatically paid such sums from the fund established under
      section 211(f) of the Compact.
        (5) The provision of section 211(b) funds, as appropriated by
      Public Law 99-349 and pursuant to this subsection, shall be in
      fulfillment of all United States obligations under such section
      211(b) of the Compact and shall be subject to section 236 of the
      Compact.
    (b) Adjustment and payment
      Subject to the provisions of subsection (a) of this section and
    upon the request of the Government of Palau, the sum of $28 million
    appropriated by Public Law 99-349 to fulfill the obligations of the
    United States under section 211(b) of the Compact (approved in
    Public Law 99-658), adjusted by section 215 of such Compact, shall
    be provided to Palau upon entry into force of the Compact.
    (c) Availability of appropriation account
      Funding provided in Public Law 101-121 under the "Trust Territory
    of the Pacific Islands" appropriation account shall remain
    available until expended.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 111, Dec. 12, 1989, 103 Stat.
    1873.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact, referred to in subsecs. (a) and (b), is the Compact
    of Free Association between the United States and the Government of
    Palau, which is contained in section 201 of Pub. L. 99-658, set out
    as a note under section 1931 of this title.
      For Oct. 1, 1994, as the date the Compact of Free Association
    with Palau entered into full force and effect, referred to in
    subsecs. (a)(1), (2), (4) and (b), see Proc. No. 6726, Sept. 27,
    1994, 59 F.R. 49777, set out as a note under section 1931 of this
    title.
      Public Law 99-349, referred to in subsecs. (a)(5) and (b), is
    Pub. L. 99-349, July 2, 1986, 100 Stat. 710, as amended. For
    complete classification of this Act to the Code, see Tables.
      Public Law 99-658, referred to in subsec. (b), is Pub. L. 99-658,
    Nov. 14, 1986, 100 Stat. 3672, as amended, which is classified
    generally to part A of this subchapter. For complete classification
    of this Act to the Code, see Tables.
      Public Law 101-121, referred to in subsec. (c), is Pub. L. 101-
    121, Oct. 23, 1989, 103 Stat. 701, as amended. Provisions relating
    to the Trust Territory of the Pacific Islands appear at 103 Stat.
    717. For complete classification of this Act to the Code, see
    Tables.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1961                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1961. Submission of agreements

-STATUTE-
      Any agreement concluded with the Government of Palau pursuant to
    this joint resolution including the agreement entitled "Agreement
    Concerning Special Programs related to the Entry into Force of the
    Compact of Free Association Between the Government of the United
    States and the Government of the Republic of Palau" signed on May
    26, 1989, and any agreement which would amend, change, or terminate
    any such agreement, or portion thereof, shall be submitted to the
    Congress and may not take effect until after 30 days after the date
    on which such agreement is so submitted. An amendment or agreement
    substituting or in addition to the subsidiary agreement negotiated
    under section 212(a) of the Compact or its annex shall take effect
    only when approved by an Act of Congress.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 112, Dec. 12, 1989, 103 Stat.
    1873.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This joint resolution, referred to in text, is Pub. L. 101-219,
    Dec. 12, 1989, 103 Stat. 1870, which enacted this part and sections
    1846 and 1972 of this title, amended sections 1615 and 1933 of this
    title and section 3791 of Title 42, The Public Health and Welfare,
    and enacted provisions set out as a note under section 1905 of
    Title 44, Public Printing and Documents. For complete
    classification of this joint resolution to the Code, see Tables.
      The Compact, referred to in text, is the Compact of Free
    Association between the United States and the Government of Palau,
    which is contained in section 201 of Pub. L. 99-658, set out as a
    note under section 1931 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-



-CITE-
    48 USC Sec. 1962                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER II - PALAU
    Part B - Implementation of Compact

-HEAD-
    Sec. 1962. Transition funding

-STATUTE-
      For the purposes of applying section 1905(c)(2) of this title to
    Palau, the terms "fiscal year 1987", "fiscal year 1988", and
    "fiscal year 1989" in section 104(c) of Public Law 99-658 shall be
    deemed to be the first, second, and third fiscal years,
    respectively, beginning after the effective date of the Compact.

-SOURCE-
    (Pub. L. 101-219, title I, Sec. 113, Dec. 12, 1989, 103 Stat.
    1873.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 104(c) of Public Law 99-658, referred to in text, is
    section 104(c) of Pub. L. 99-658, title I, Nov. 14, 1986, 100 Stat.
    3676, which amended section 1905 of this title.
      For Oct. 1, 1994, as the effective date of the Compact of Free
    Association with Palau referred to in text, see Proc. No. 6726,
    Sept. 27, 1994, 59 F.R. 49777, set out as a note under section 1931
    of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-


-CITE-
    48 USC SUBCHAPTER III - MISCELLANEOUS PROVISIONS            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
                 SUBCHAPTER III - MISCELLANEOUS PROVISIONS             

-End-



-CITE-
    48 USC Sec. 1971                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1971. Transfer of surplus personal property owned by United
      States

-STATUTE-
    (a) Transfer to Northern Mariana Islands, Palau, Marshall Islands,
      and Federated States of Micronesia
      Notwithstanding any other provision of law, subject to valid
    existing rights, and subject to subsection (b) of this section, all
    right, title, and interest of the Government of the United States
    in personal property situated in the Trust Territory of the Pacific
    Islands and of the government of the Trust Territory of the Pacific
    Islands in personal property wherever located shall be transferred,
    without reimbursement, by a date not later than ninety days
    following termination of the trusteeship agreement governing the
    administration of the Trust Territory of the Pacific Islands, to
    the government of the Northern Mariana Islands, Palau, the Marshall
    Islands, or the Federated States of Micronesia according to a list
    of distribution established by the High Commissioner of the Trust
    Territory of the Pacific Islands in consultation with the recipient
    government.
    (b) Declaration that property is surplus
      Personal property referred to in subsection (a) of this section
    shall be transferred upon declaration by the High Commissioner of
    the Trust Territory of the Pacific Islands that such property is
    surplus to the needs of the government of the Trust Territory of
    the Pacific Islands, which declaration shall be approved, if
    applicable, by the head of the agency of the Government of the
    United States having administrative responsibility for the
    property.
    (c) Property held in trust
      If no government exists in Palau on December 24, 1980, that is
    capable of receiving title to such property in its own name, the
    government of the Trust Territory of the Pacific Islands shall hold
    such property in trust for the prospective government of Palau
    until such government is established.

-SOURCE-
    (Pub. L. 96-597, title IV, Sec. 402, Dec. 24, 1980, 94 Stat. 3478;
    Pub. L. 97-357, title II, Sec. 201, Oct. 19, 1982, 96 Stat. 1706.)

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.


-MISC1-
                                AMENDMENTS                            
      1982 - Subsec. (a). Pub. L. 97-357, substituted "by a date not
    later than ninety days following termination of the trusteeship
    agreement governing the administration of the Trust Territory of
    the Pacific Islands," for "by October 1, 1982,".


-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of this title.

-End-



-CITE-
    48 USC Sec. 1972                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1972. Controlled substances in freely associated states

-STATUTE-
    (a) In general
      The President is authorized to negotiate agreements which provide
    - 
        (1) that the United States shall carry out the provisions of
      part C of the Controlled Substances Act (21 U.S.C. 821 et seq.)
      as necessary to provide for the lawful distribution of controlled
      substances in the freely associated states; and
        (2) that a freely associated state which institutes and
      maintains a voluntary system to report annual estimates of
      narcotics needs to the International Narcotics Control Board, and
      which imposes controls on imports of narcotic drugs consistent
      with the Single Convention on Narcotic Drugs, 1961, shall be
      eligible for exports of narcotic drugs from the United States in
      the same manner as a country meeting the requirements of
      subsection (a) of section 953 (!1) of title 21.

    (b) Effective date
      Agreements concluded pursuant to this section shall become
    effective pursuant to section 1901(f)(5) of this title or section
    1931(d)(5) of this title, as may be applicable.

-SOURCE-
    (Pub. L. 101-219, title II, Sec. 201, Dec. 12, 1989, 103 Stat.
    1874.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Controlled Substances Act, referred to in subsec. (a)(1), is
    title II of Pub. L. 91-513, Oct. 27, 1970, 84 Stat. 1242, as
    amended. Part C of the Act is classified generally to part C (Sec.
    821 et seq.) of subchapter I of chapter 13 of Title 21, Food and
    Drugs. For complete classification of this Act to the Code, see
    Short Title note set out under section 801 of Title 21 and Tables.
      Section 953 of title 21, referred to in subsec. (a)(2), was in
    the original "section 1003 of the Controlled Substances Act", and
    was translated as reading "section 1003 of the Controlled
    Substances Import and Export Act", meaning section 1003 of title
    III of Pub. L. 91-513, to reflect the probable intent of Congress.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-FOOTNOTE-
    (!1) See References in Text note below.


-End-



-CITE-
    48 USC Sec. 1973                                            01/02/2006

-EXPCITE-
    TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS
    CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU
    SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-
    Sec. 1973. Freely Associated State Air Carrier

-STATUTE-
      (a) In furtherance of the objectives of the Compact of Free
    Association Act of 1985 (Public Law 99-239) [48 U.S.C. 1901 et
    seq., 2001 et seq.] and notwithstanding any other provision of law,
    a Freely Associated State Air Carrier shall not be precluded from
    providing transportation, between a place in the United States and
    a place in a state in free association with the United States or
    between two places in such a freely associated state, by air of
    persons (and their personal effects) and property procured,
    contracted for, or otherwise obtained by any executive department
    or other agency or instrumentality of the United States for its own
    account or in furtherance of the purposes or pursuant to the terms
    of any contract, agreement, or other special arrangement made or
    entered into under which payment is made by the United States or
    payment is made from funds appropriated, owned, controlled,
    granted, or conditionally granted, or utilized by or otherwise
    established for the account of the United States, or shall be
    furnished to or for the account of any foreign nation, or any
    international agency, or other organization of whatever
    nationality, without provisions for reimbursement.
      (b) The term "Freely Associated State Air Carrier" shall apply
    exclusively to a carrier referred to in Article IX(5)(b) of the
    Federal Programs and Services Agreement concluded pursuant to
    Article II of Title Two and Section 232 of the Compact of Free
    Association.

-SOURCE-
    (Pub. L. 102-247, title III, Sec. 303, Feb. 24, 1992, 106 Stat.
    39.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Compact of Free Association Act of 1985, referred to in
    subsec. (a), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as
    amended, which is classified principally to part A of subchapter I
    of this chapter and chapter 19 (Sec. 2001 et seq.) of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1901 of this title and Tables.
      The Compact of Free Association, referred to in subsec. (b),
    probably means the Compact of Free Association between the
    Government of the United States and the Governments of the Marshall
    Islands and the Federated States of Micronesia, which is contained
    in section 201 of Pub. L. 99-239, set out as a note under section
    1901 of this title.

-COD-
                               CODIFICATION                           
      Section was formerly set out as a note under section 1681 of this
    title.

-End-