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88–500PDF 2003

APPROVAL OF COMPACT OF FREE ASSOCIATIONS BETWEEN

THE GOVERNMENTS OF THE U.S. AND THE FEDERATED

STATES OF MICRONESIA AND THE U.S. AND THE REPUBLIC

OF THE MARSHALL ISLANDS; TRAFFICKING VICTIMS PROTECTION REAUTHORIZATION ACT OF 2003; AND TORTURE

VICTIMS RELIEF REAUTHORIZATION ACT OF 2003

MARKUP

BEFORE THE

COMMITTEE ON 

INTERNATIONAL RELATIONS 

HOUSE OF REPRESENTATIVES

ONE HUNDRED EIGHTH CONGRESS

FIRST SESSION

ON

H.J. Res. 63, H.R. 2620 and H.R. 1813

JULY 23, 2003

Serial No. 108–45

Printed for the use of the Committee on International Relations

(

Available via the World Wide Web: http://www.house.gov/international—relations 

(II)

COMMITTEE ON INTERNATIONAL RELATIONS 

HENRY J. HYDE, Illinois, Chairman 

JAMES A. LEACH, Iowa 

DOUG BEREUTER, Nebraska 

CHRISTOPHER H. SMITH, New Jersey, 

Vice Chairman 

DAN BURTON, Indiana 

ELTON GALLEGLY, California 

ILEANA ROS-LEHTINEN, Florida 

CASS BALLENGER, North Carolina 

DANA ROHRABACHER, California 

EDWARD R. ROYCE, California 

PETER T. KING, New York 

STEVE CHABOT, Ohio 

AMO HOUGHTON, New York 

JOHN M. MCHUGH, New York 

THOMAS G. TANCREDO, Colorado 

RON PAUL, Texas 

NICK SMITH, Michigan 

JOSEPH R. PITTS, Pennsylvania 

JEFF FLAKE, Arizona 

JO ANN DAVIS, Virginia 

MARK GREEN, Wisconsin 

JERRY WELLER, Illinois 

MIKE PENCE, Indiana 

THADDEUS G. MCCOTTER, Michigan 

WILLIAM J. JANKLOW, South Dakota 

KATHERINE HARRIS, Florida 

TOM LANTOS, California 

HOWARD L. BERMAN, California 

GARY L. ACKERMAN, New York 

ENI F.H. FALEOMAVAEGA, American 

Samoa 

DONALD M. PAYNE, New Jersey 

ROBERT MENENDEZ, New Jersey 

SHERROD BROWN, Ohio 

BRAD SHERMAN, California 

ROBERT WEXLER, Florida 

ELIOT L. ENGEL, New York 

WILLIAM D. DELAHUNT, Massachusetts 

GREGORY W. MEEKS, New York 

BARBARA LEE, California 

JOSEPH CROWLEY, New York 

JOSEPH M. HOEFFEL, Pennsylvania 

EARL BLUMENAUER, Oregon 

SHELLEY BERKLEY, Nevada 

GRACE F. NAPOLITANO, California 

ADAM B. SCHIFF, California 

DIANE E. WATSON, California 

ADAM SMITH, Washington 

BETTY MCCOLLUM, Minnesota 

CHRIS BELL, Texas 

THOMAS E. MOONEY, SR., Staff Director/General Counsel 

ROBERT R. KING, Democratic Staff Director 

DANIEL FREEMAN, Counsel/Parliamentarian 

LIBERTY DUNN, Staff Associate 

(III)

C O N T E N T S 

Page

MARKUP OF: 

H.J. Res. 63, To approve the ‘‘Compact of Free Association, as amended 

between the Government of the United States of America and the Government of the Federated States of Micronesia’’, and the ‘‘Compact of Free 

Association, as amended between the Government of the United States 

of America and the Government of the Republic of the Marshall Islands’’, 

and otherwise to amend Public Law 99–239, and to appropriate for the 

purposes of amended Public Law 99–239 for fiscal years ending on or 

before September 30, 2023, and for other purposes (as adopted by the 

Subcommittee on Asia and the Pacific) .............................................................. 2

H.R. 2620, To authorize appropriations for fiscal years 2004 and 2005 for 

the Trafficking Victims Protection Act of 2000, and for other purposes ......... 272

Amendment in the Nature of a Substitute to H.R. 2620 offered by Mr. 

Smith of New Jersey ........................................................................................ 302

H.R. 1813, To amend the Torture Victims Relief Act of 1998 to authorize 

appropriations to provide assistance for domestic and foreign centers and 

programs for the treatment of victims of torture, and for other purposes ...... 332

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING 

The Honorable James A. Leach, a Representative in Congress from the State 

of Iowa: Prepared statement on H.J. Res. 63 .................................................... 267

The Honorable Christopher H. Smith, a Representative in Congress from 

the State of New Jersey, and Vice Chairman, Committee on International 

Relations: Prepared statement on H.R. 2620 ..................................................... 298

The Honorable Tom Lantos, a Representative in Congress from the State 

of California: Prepared statement on H.R. 2620 ............................................... 300

The Honorable Tom Lantos: Prepared statement on H.R. 1813 .......................... 336

APPENDIX 

The Honorable Diane E. Watson, a Representative in Congress from the 

State of California: Prepared statement on H.J. Res. 63 .................................. 339

(1)

APPROVAL OF COMPACT OF FREE ASSOCIATIONS BETWEEN THE GOVERNMENTS OF 

THE U.S. AND THE FEDERATED STATES OF 

MICRONESIA AND THE U.S. AND THE REPUBLIC OF THE MARSHALL ISLANDS; TRAFFICKING VICTIMS PROTECTION REAUTHORIZATION ACT OF 2003; AND TORTURE 

VICTIMS RELIEF REAUTHORIZATION ACT 

OF 2003

WEDNESDAY, JULY 23, 2003

HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERNATIONAL RELATIONS, Washington, DC. 

The Committee met, pursuant to call, at 11:30 a.m. In Room 

2172, Rayburn House Office Building, Hon. Christopher H. Smith 

[Vice Chairman of the Committee] presiding. 

Mr. SMITH OF NEW JERSEY. [Presiding.] The Committee will 

come to order. Pursuant to notice, I now call up H.J. Res. 63, the 

Compact of Association Amendments Act of 2003. Without objection, the resolution will be considered as read and open for open 

amendment at any point, and the amendment in the nature of a 

substitute which the Members have before them will be considered 

as read and be considered as the original text for purposes of 

amendment. 

[H.J. Res. 63 follows:]

2

1

[COMMITTEE PRINT]

JULY 17, 2003

[Showing H. J. Res. 63 As Adopted by the Subcommittee on

Asia and the Pacific]

108TH CONGRESS

1ST SESSION H. J. RES. 63

To approve the ‘‘Compact of Free Association, as amended between the

Government of the United States of America and the Government of

the Federated States of Micronesia’’, and the ‘‘Compact of Free Association, as amended between the Government of the United States of America and the Government of the Republic of the Marshall Islands’’, and

otherwise to amend Public Law 99–239, and to appropriate for the

purposes of amended Public Law 99–239 for fiscal years ending on

or before September 30, 2023, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 8, 2003

Mr. LEACH (for himself, Mr. POMBO, Mr. RAHALL, Mr. HYDE, Mr. LANTOS,

and Mr. FALEOMAVAEGA) (all by request) introduced the following joint

resolution; which was referred to the Committee on International Relations, and in addition to the Committee on Resources, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee concerned

JOINT RESOLUTION

To approve the ‘‘Compact of Free Association, as amended

between the Government of the United States of America


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and the Government of the Federated States of Micronesia’’, and the ‘‘Compact of Free Association, as amended between the Government of the United States of

America and the Government of the Republic of the

Marshall Islands’’, and otherwise to amend Public Law

99–239, and to appropriate for the purposes of amended

Public Law 99–239 for fiscal years ending on or before

September 30, 2023, and for other purposes.

Whereas the United States, in accordance with section 231

of the Compact of Free Association set forth in Title II

of Public Law 99–239, January 14, 1986, 99 Stat. 1770,

entered into negotiations with the Governments of the

Federated States of Micronesia and the Republic of the

Marshall Islands; and

Whereas these negotiations, in accordance with section 431 of

the Compact, resulted in the ‘‘Compact of Free Association, as amended between the Government of the United

States of America and the Government of the Federated

States of Micronesia’’, and the ‘‘Compact of Free Association, as amended between the Government of the

United States of America and the Government of the Republic of the Marshall Islands’’, which, together with

their related agreements, were signed by the Government

of the United States and the Governments of the Federated States of Micronesia and the Republic of the Marshall Islands on May 14, and April 30, 2003, respectively: Now, therefore, be it

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled,


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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This joint resolution, together

3 with the Table of Contents in subsection (b) of this sec4 tion, may be cited as the ‘‘Compact of Free Association

5 Amendments Act of 2003’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this joint resolution is as follows:

TITLE I—APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT; INTERPRETATION OF, AND UNITED STATES POLICIES

REGARDING, U.S.-FSM COMPACT AND U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS

Sec. 101. Approval of U.S.-FSM Compact of Free Association and U.S.-RMI

Compact of Free Association.

(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.

(d) Amendment, Change, or Termination in the U.S.-FSM

Compact, the U.S.-RMI Compact and Certain Agreements.

(e) Subsidiary Agreement Deemed Bilateral.

(f) Entry Into Force of Future Amendments to Subsidiary

Agreements.

Sec. 102. Agreements With Federated States of Micronesia.

(a) Law Enforcement Assistance.

(b) Agreement on Audits.

Sec. 103. Agreements With and Other Provisions Related to the Republic of the

Marshall Islands.

(a) Law Enforcement Assistance.

(b) EJIT.

(c) Section 177 Agreement.

(d) Nuclear Test Effects.

(e) Espousal Provisions.

(f) DOE Radiological Health Care Program; USDA Agricultural and Food Programs.

(g) Rongelap.

(h) Four Atoll Health Care Program.

(i) Enjebi Community Trust Fund.

(j) Bikini Atoll Cleanup.

(k) Agreement on Audits.

Sec. 104. Interpretation of and United States Policy Regarding U.S.-FSM Compact and U.S.-RMI Compact.


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(a) Human Rights.

(b) Immigration and Passport Security.

(c) Nonalienation of Lands.

(d) Nuclear Waste Disposal.

(e) Effect of U.S.-FSM Compact and U.S.-RMI Compact on

U.S. Areas; Related Authorization and Continuing Appropriation.

(f) Foreign Loans.

Sec. 105. Supplemental Provisions.

(a) Domestic Program Requirements.

(b) Relations With the Federated States of Micronesia and the

Republic of the Marshall Islands.

(c) Continuing Trust Territory Authorization.

(d) Survivability.

(e) Noncompliance Sanctions.

(f) Continuing Programs and Laws.

(g) College of Micronesia.

(h) Trust Territory Debts to U.S. Federal Agencies.

(i) Use of DOD Medical Facilities.

(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.

Sec. 106. Construction Contract Assistance.

(a) Assistance to U.S. Firms.

(b) Authorization of Appropriations.

Sec. 107. Limitations.

Prohibition.

Sec. 108. Compensatory Adjustments.

(a) Additional Programs and Services.

(b) Further Amounts.

Sec. 109. Authorization and Continuing Appropriation.

Sec. 110. Payment of Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau Employed by the Government of the United States in the Continental United States.

TITLE II—COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED STATES OF MICRONESIA AND THE REPUBLIC OF THE

MARSHALL ISLANDS

Sec. 201. Compacts of Free Association, as Amended.

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

Title One—Governmental Relations


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Article I—Self-Government.

Article II—Foreign Affairs.

Article III—Communications.

Article IV—Immigration.

Article V—Representation.

Article VI—Environmental Protection.

Article VII—General Legal Provisions.

Title Two—Economic Relations

Article I—Grant Assistance.

Article II—Services and Program Assistance.

Article III—Administrative Provisions.

Article IV—Trade.

Article V—Finance and Taxation.

Title Three—Security and Defense Relations

Article I—Authority and Responsibility.

Article II—Defense Facilities and Operating Rights.

Article III—Defense Treaties and International Security Agreements.

Article IV—Service in Armed Forces of the United States.

Article V—General Provisions.

Title Four—General Provisions

Article I—Approval and Effective Date.

Article II—Conference and Dispute Resolution.

Article III—Amendment.

Article IV—Termination.

Article V—Survivability.

Article VI—Definition of Terms.

Article VII—Concluding Provisions.

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

Title One—Governmental Relations

Article I—Self-Government.

Article II—Foreign Affairs.

Article III—Communications.

Article IV—Immigration.

Article V—Representation.

Article VI—Environmental Protection.

Article VII—General Legal Provisions.

Title Two—Economic Relations

Article I—Grant Assistance.

Article II—Services and Program Assistance.

Article III—Administrative Provisions.

Article IV—Trade.

Article V—Finance and Taxation.

Title Three—Security and Defense Relations


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Article I—Authority and Responsibility.

Article II—Defense Facilities and Operating Rights.

Article III—Defense Treaties and International Security Agreements.

Article IV—Service in Armed Forces of the United States.

Article V—General Provisions.

Title Four—General Provisions

Article I—Approval and Effective Date.

Article II—Conference and Dispute Resolution.

Article III—Amendment.

Article IV—Termination.

Article V—Survivability.

Article VI—Definition of Terms.

Article VII—Concluding Provisions.

1 TITLE I—APPROVAL OF U.S.-FSM

2 COMPACT AND U.S.-RMI COM3 PACT; INTERPRETATION OF,

4 AND U.S. POLICIES REGARD5 ING, U.S.-FSM COMPACT AND

6 U.S.-RMI COMPACT; SUPPLE7 MENTAL PROVISIONS

8 SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSO9 CIATION AND THE U.S.-RMI COMPACT OF

10 FREE ASSOCIATION; REFERENCES TO SUB11 SIDIARY AGREEMENTS OR SEPARATE AGREE12 MENTS.

13 (a) FEDERATED STATES OF MICRONESIA.—The

14 Compact of Free Association, as amended with respect to

15 the Federated States of Micronesia and signed by the

16 United States and the Government of the Federated

17 States of Micronesia and set forth in Title II (section

18 201(a)) of this joint resolution, is hereby approved, and


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1 Congress hereby consents to the subsidiary agreements

2 and amended subsidiary agreements listed in section 462

3 of the U.S.-FSM Compact. Subject to the provisions of

4 this joint resolution, the President is authorized to agree,

5 in accordance with section 411 of the U.S.-FSM Compact,

6 to an effective date for and thereafter to implement such

7 U.S.-FSM Compact.

8 (b) REPUBLIC OF THE MARSHALL ISLANDS.—The

9 Compact of Free Association, as amended with respect to

10 the Republic of the Marshall Islands and signed by the

11 United States and the Government of the Republic of the

12 Marshall Islands and set forth in Title II (section 201(b))

13 of this joint resolution, is hereby approved, and Congress

14 hereby consents to the subsidiary agreements and amend15 ed subsidiary agreements listed in section 462 of the U.S.-

16 RMI Compact. Subject to the provisions of this joint reso17 lution, the President is authorized to agree, in accordance

18 with section 411 of the U.S.-RMI Compact, to an effective

19 date for and thereafter to implement such U.S.-RMI Com20 pact.

21 (c) REFERENCES TO THE COMPACT, THE U.S.-FSM

22 COMPACT, AND THE U.S.-RMI COMPACT; REFERENCES

23 TO SUBSIDIARY AGREEMENTS OR SEPARATE AGREE24 MENTS.—


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1 (1) Any reference in this joint resolution (ex2 cept references in Title II) to ‘‘the Compact’’ shall

3 be treated as a reference to the Compact of Free As4 sociation set forth in title II of Public Law 99–239,

5 January 14, 1986, 99 Stat. 1770. Any reference in

6 this joint resolution to the ‘‘U.S.-FSM Compact’’

7 shall be treated as a reference to the Compact of

8 Free Association, as amended between the Govern9 ment of the United States of America and the Gov10 ernment of the Federated States of Micronesia and

11 set forth in Title II (section 201(a)) of this joint res12 olution. Any reference in this joint resolution to the

13 ‘‘U.S.-RMI Compact’’ shall be treated as a reference

14 to the Compact of Free Association, as amended be15 tween the Government of the United States of

16 America and the Government of the Republic of the

17 Marshall Islands and set forth in Title II (section

18 201(b)) of this joint resolution.

19 (2) Any reference to the term ‘‘subsidiary

20 agreements’’ or ‘‘separate agreements’’ in this joint

21 resolution shall be treated as a reference to agree22 ments listed in section 462 of the U.S.-FSM Com23 pact and the U.S.-RMI Compact, and any other

24 agreements that the United States may from time to

25 time enter into with either the government of the


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1 Federated States of Micronesia or the government of

2 the Republic of the Marshall Islands, or with both

3 such governments in accordance with the provisions

4 of the U.S.-FSM Compact and the U.S.-RMI Com5 pact.

6 (d) AMENDMENT, CHANGE, OR TERMINATION IN THE

7 U.S.-FSM COMPACT AND U.S.-RMI COMPACT AND CER8 TAIN AGREEMENTS.—

9 (1) Any amendment, change, or termination by

10 mutual agreement or by unilateral action of the Gov11 ernment of the United States of all or any part of

12 the U.S.-FSM Compact or U.S.-RMI Compact shall

13 not enter into force until after Congress has incor14 porated it in an Act of Congress.

15 (2) The provisions of paragraph (1) shall

16 apply—

17 (A) to all actions of the Government of the

18 United States under the U.S.-FSM Compact or

19 U.S.-RMI Compact including, but not limited

20 to, actions taken pursuant to sections 431, 441,

21 or 442;

22 (B) to any amendment, change, or termi23 nation in the Agreement Between the Govern24 ment of the United States and the Government

25 of the Federated States of Micronesia RegardVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00014 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ing Friendship, Cooperation and Mutual Secu2 rity Concluded Pursuant to Sections 321 and

3 323 of the Compact of Free Association re4 ferred to in section 462(a)(2) of the U.S.-FSM

5 Compact and the Agreement Between the Gov6 ernment of the United States and the Govern7 ment of the Marshall Islands Regarding Mutual

8 Security Concluded Pursuant to Sections 321

9 and 323 of the Compact of Free Association re10 ferred to in section 462(a)(5) of the U.S.-RMI

11 Compact;

12 (C) to any amendment, change, or termi13 nation of the agreements concluded pursuant to

14 Compact section 177, and section 215(a) of the

15 U.S.-FSM Compact and section 216(a) of the

16 U.S.-RMI Compact, the terms of which are in17 corporated by reference into the U.S.-FSM

18 Compact and the U.S.-RMI Compact; and

19 (D) to the following subsidiary agreements,

20 or portions thereof: Articles III, IV and X of

21 the agreement referred to in section 462(b)(6)

22 of the U.S.-RMI Compact:

23 (i) Article III and IV of the agree24 ment referred to in section 462(b)(6) of

25 the U.S.-FSM Compact.


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1 (ii) Articles VI, XV, and XVII of the

2 agreement referred to in section 462(b)(7)

3 of the U.S.-FSM Compact and U.S.-RMI

4 Compact.

5 (e) SUBSIDIARY AGREEMENTS DEEMED BILAT6 ERAL.—For purposes of implementation of the U.S.-FSM

7 Compact and the U.S.-RMI Compact and this joint resolu8 tion, the Agreement Concluded Pursuant to Section 234

9 of the Compact of Free Association and referred to in sec10 tion 462(a)(1) of the U.S.-FSM Compact and section

11 462(a)(4) of the U.S.-RMI Compact shall be deemed to

12 be a bilateral agreement between the United States and

13 each other party to such subsidiary agreement. The con14 sent or concurrence of any other party shall not be re15 quired for the effectiveness of any actions taken by the

16 United States in conjunction with either the Federated

17 States of Micronesia or the Republic of the Marshall Is18 lands which are intended to affect the implementation,

19 modification, suspension, or termination of such sub20 sidiary agreement (or any provision thereof) as regards

21 the mutual responsibilities of the United States and the

22 party in conjunction with whom the actions are taken.

23 (f) ENTRY INTO FORCE OF FUTURE AMENDMENTS

24 TO SUBSIDIARY AGREEMENTS.—No agreement between

25 the United States and the government of either the FedVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00016 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 erated States of Micronesia or the Republic of the Mar2 shall Islands which would amend, change, or terminate

3 any subsidiary agreement or portion thereof, other than

4 those set forth is subsection (d) of this section shall enter

5 into force until after the President has transmitted such

6 agreement to the President of the Senate and the Speaker

7 of the House of Representatives together with an expla8 nation of the agreement and the reasons therefor. In the

9 case of the agreement referred to in section 462(b)(3) of

10 the U.S.-FSM Compact and the U.S.-RMI Compact, such

11 transmittal shall include a specific statement by the Sec12 retary of Labor as to the necessity of such amendment,

13 change, or termination, and the impact thereof.

14 SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MI15 CRONESIA.

16 (a) LAW ENFORCEMENT ASSISTANCE.—

17 (1) TECHNICAL AND TRAINING ASSISTANCE.—

18 Pursuant to sections 222 and 224 of the U.S.-FSM

19 Compact, the United States shall provide non-reim20 bursable technical and training assistance as appro21 priate, including training and equipment for postal

22 inspection of illicit drugs and other contraband, to

23 enable the Government of the Federated States of

24 Micronesia to develop and adequately enforce laws of

25 the Federated States of Micronesia and to cooperate


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1 with the United States in the enforcement of crimi2 nal laws of the United States. Funds appropriated

3 pursuant to section 105(j) of this title may be used

4 to reimburse State or local agencies providing such

5 assistance.

6 (b) AGREEMENT ON AUDITS.—The Comptroller Gen7 eral (and his duly authorized representatives) shall have

8 the authorities necessary to carry out his responsibilities

9 under section 232 of the U.S.-FSM Compact and the

10 agreement referred to in section 462(b)(4) of the U.S.-

11 FSM Compact, including the following authorities:

12 (1) GENERAL AUTHORITY OF THE COMP13 TROLLER GENERAL TO AUDIT.—

14 (A) The Comptroller General of the United

15 States (and his duly authorized representatives)

16 shall have the authority to audit—

17 (i) all grants, program assistance, and

18 other assistance provided to the Govern19 ment of the Federated States of Micro20 nesia under Articles I and II of Title Two

21 of the U.S.-FSM Compact; and

22 (ii) any other assistance provided by

23 the Government of the United States to

24 the Government of the Federated States of

25 Micronesia.


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1 Such authority shall include authority for the

2 Comptroller General to conduct or cause to be

3 conducted any of the audits provided for in sec4 tion 232 of the U.S.-FSM Compact. The au5 thority provided in this paragraph shall con6 tinue for at least three years after the last such

7 grant has been made or assistance has been

8 provided.

9 (B) The Comptroller General (and his duly

10 authorized representatives) shall also have au11 thority to review any audit conducted by or on

12 behalf of the Government of the United States.

13 In this connection, the Comptroller General

14 shall have access to such personnel and to such

15 records, documents, working papers, automated

16 data and files, and other information relevant

17 to such review.

18 (2) COMPTROLLER GENERAL ACCESS TO

19 RECORDS.—

20 (A) In carrying out paragraph (1), the

21 Comptroller General (and his duly authorized

22 representatives) shall have such access to the

23 personnel and (without cost) to records, docu24 ments, working papers, automated data and

25 files, and other information relevant to such auVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00019 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 dits. The Comptroller General may duplicate

2 any such records, documents, working papers,

3 automated data and files, or other information

4 relevant to such audits.

5 (B) Such records, documents, working pa6 pers, automated data and files, and other infor7 mation regarding each such grant or other as8 sistance shall be maintained for at least three

9 years after the date such grant or assistance

10 was provided and in a manner that permits

11 such grants, assistance, and payments to be ac12 counted for distinct from any other funds of the

13 Government of the Federated States of Micro14 nesia.

15 (3) STATUS OF COMPTROLLER GENERAL REP16 RESENTATIVES.—The Comptroller General and his

17 duly authorized representatives shall be immune

18 from civil and criminal process relating to words

19 spoken or written and all acts performed by them in

20 their official capacity and falling within their func21 tions, except insofar as such immunity may be ex22 pressly waived by the Government of the United

23 States. The Comptroller General and his duly au24 thorized representatives shall not be liable to arrest

25 or detention pending trial, except in the case of a


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1 grave crime and pursuant to a decision by a com2 petent judicial authority, and such persons shall

3 enjoy immunity from seizure of personal property,

4 immigration restrictions, and laws relating to alien

5 registration, fingerprinting, and the registration of

6 foreign agents. Such persons shall enjoy the same

7 taxation exemptions as are set forth in Article 34

8 of the Vienna Convention on Diplomatic Relations.

9 The privileges, exemptions and immunities accorded

10 under this paragraph are not for the personal ben11 efit of the individuals concerned but are to safeguard

12 the independent exercise of their official functions.

13 Without prejudice to those privileges, exemptions

14 and immunities, it is the duty of all such persons

15 to respect the laws and regulations of the Govern16 ment of the Federated States of Micronesia.

17 (4) AUDITS DEFINED.—As used in this sub18 section, the term ‘‘audits’’ includes financial, pro19 gram, and management audits, including

20 determining—

21 (A) whether the Government of the Fed22 erated States of Micronesia has met the re23 quirements set forth in the U.S.-FSM Compact,

24 or any related agreement entered into under the

25 U.S.-FSM Compact, regarding the purposes for


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1 which such grants and other assistance are to

2 be used; and

3 (B) the propriety of the financial trans4 actions of the Government of the Federated

5 States of Micronesia pursuant to such grants or

6 assistance.

7 (5) COOPERATION BY FEDERATED STATES OF

8 MICRONESIA.—The Government of the Federated

9 States of Micronesia will cooperate fully with the

10 Comptroller General of the United States in the con11 duct of such audits as the Comptroller General de12 termines necessary to enable the Comptroller Gen13 eral to fully discharge his responsibilities under this

14 joint resolution.

15 SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RE16 LATED TO THE REPUBLIC OF THE MARSHALL

17 ISLANDS.

18 (a) LAW ENFORCEMENT ASSISTANCE.—

19 (1) TECHNICAL AND TRAINING ASSISTANCE.—

20 Pursuant to sections 222 and 224 of the U.S.-RMI

21 Compact, the United States shall provide non-reim22 bursable technical and training assistance as appro23 priate, including training and equipment for postal

24 inspection of illicit drugs and other contraband, to

25 enable the Government of the Marshall Islands to


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1 develop and adequately enforce laws of the Marshall

2 Islands and to cooperate with the United States in

3 the enforcement of criminal laws of the United

4 States. Funds appropriated pursuant to section

5 105(j) of this title may be used to reimburse State

6 or local agencies providing such assistance.

7 (b) EJIT.—

8 (1) In the joint resolution of January 14, 1986

9 (Public Law 99–239) Congress provided that the

10 President of the United States shall negotiate with

11 the Government of the Marshall Islands an agree12 ment whereby, without prejudice as to any claims

13 which have been or may be asserted by any party as

14 to rightful title and ownership of any lands on Ejit,

15 the Government of the Marshall Islands shall assure

16 that lands on Ejit used as of January 1, 1985, by

17 the people of Bikini, will continue to be available

18 without charge for their use, until such time as Bi19 kini is restored and inhabitable and the continued

20 use of Ejit is no longer necessary, unless a Marshall

21 Islands court of competent jurisdiction finally deter22 mines that there are legal impediments to continued

23 use of Ejit by the people of Bikini.

24 (2) In the joint resolution of January 14, 1986

25 (Public Law 99–239) Congress provided that if the


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19

1 impediments described in paragraph (1) do arise,

2 the United States will cooperate with the Govern3 ment of the Marshall Islands in assisting any person

4 adversely affected by such judicial determination to

5 remain on Ejit, or in locating suitable and accept6 able alternative lands for such person’s use.

7 (3) In the joint resolution of January 14, 1986

8 (Public Law 99–239) Congress provided that para9 graph (1) shall not be applied in a manner which

10 would prevent the Government of the Marshall Is11 lands from acting in accordance with its constitu12 tional processes to resolve title and ownership claims

13 with respect to such lands or from taking substitute

14 or additional measures to meet the needs of the peo15 ple of Bikini with their democratically expressed con16 sent and approval.

17 (4) The United States and the Republic of the

18 Marshall Islands entered into an agreement in fur19 therance of paragraphs (1) through (3) of this sub20 section on July 21, 1986. Nothing in this subsection

21 creates any rights or obligations beyond those pro22 vided for in the original enacted version of Public

23 Law 99–239.

24 (c) SECTION 177 AGREEMENT.—


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20

1 (1) In the joint resolution of January 14, 1986

2 (Public Law 99–239) Congress provided that in fur3 therance of the purposes of Article I of the Sub4 sidiary Agreement for Implementation of Section

5 177 of the Compact, the payment of the amount

6 specified therein shall be made by the United States

7 under Article I of the Agreement between the Gov8 ernment of the United States and the Government

9 of the Marshall Islands for the Implementation of

10 section 177 of the Compact (hereafter in this sub11 section referred to as the ‘‘Section 177 Agreement’’)

12 only after the Government of the Marshall Islands

13 has notified the President of the United States as to

14 which investment management firm has been se15 lected by such Government to act as Fund Manager

16 under Article I of the Section 177 Agreement.

17 (2) In the joint resolution of January 14, 1986

18 (Public Law 99–239) Congress provided that in the

19 event that the President determines that an invest20 ment management firm selected by the Government

21 of the Marshall Islands does not meet the require22 ments specified in Article I of the Section 177

23 Agreement, the United States shall invoke the con24 ference and dispute resolution procedures of Article

25 II of Title Four of the Compact. Pending the resoluVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00025 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 tion of such a dispute and until a qualified Fund

2 Manager has been designated, the Government of

3 the Marshall Islands shall place the funds paid by

4 the United States pursuant to Article I of the Sec5 tion 177 Agreement into an interest-bearing escrow

6 account. Upon designation of a qualified Fund Man7 ager, all funds in the escrow account shall be trans8 ferred to the control of such Fund Manager for

9 management pursuant to the Section 177 Agree10 ment.

11 (3) In the joint resolution of January 14, 1986

12 (Public Law 99–239) Congress provided that if the

13 Government of the Marshall Islands determines that

14 some other investment firm should act as Fund

15 Manager in place of the firm first (or subsequently)

16 selected by such Government, the Government of the

17 Marshall Islands shall so notify the President of the

18 United States, identifying the firm selected by such

19 Government to become Fund Manager, and the

20 President shall proceed to evaluate the qualifications

21 of such identified firm.

22 (4) In the joint resolution of January 14, 1986

23 (Public Law 99–239) Congress provided that at the

24 end of 15 years after the effective date of the Com25 pact, the firm then acting as Fund Manager shall


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22

1 transfer to the Government of the Marshall Islands,

2 or to such account as such Government shall so no3 tify the Fund Manager, all remaining funds and as4 sets being managed by the Fund Manager under the

5 Section 177 Agreement.

6 (5) The United States made the payment called

7 for under paragraph (1) of this subsection in No8 vember 1986. Nothing in this subsection creates any

9 rights or obligations beyond those provided for in

10 the original enacted version of Public Law 99–239.

11 (d) NUCLEAR TEST EFFECTS.—In the joint resolu12 tion of January 14, 1986 (Public Law 99–239) Congress

13 provided that in approving the Compact, the Congress un14 derstands and intends that the peoples of Bikini,

15 Enewetak, Rongelap, and Utrik, who were affected by the

16 United States nuclear weapons testing program in the

17 Marshall Islands, will receive the amounts of $75,000,000

18 (Bikini); $48,750,000 (Enewetak); $37,500,000

19 (Rongelap); and $22,500,000 (Utrik), respectively, which

20 amounts shall be paid out of proceeds from the fund estab21 lished under Article I, section 1 of the subsidiary agree22 ment for the implementation of section 177 of the Com23 pact. The amounts specified in this subsection shall be in

24 addition to any amounts which may be awarded to claim25 ants pursuant to Article IV of the subsidiary agreement


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23

1 for the implementation of Section 177 of the Compact.

2 Nothing in this subsection creates any rights or obliga3 tions beyond those provided for in the original enacted

4 version of Public Law 99–239.

5 (e) ESPOUSAL PROVISIONS.—

6 (1) In the joint resolution of January 14, 1986

7 (Public Law 99–239) Congress provided that it is

8 the intention of the Congress of the United States

9 that the provisions of section 177 of the Compact of

10 Free Association and the Agreement between the

11 Government of the United States and the Govern12 ment of the Marshall Islands for the Implementation

13 of Section 177 of the Compact (hereafter in this

14 subsection referred to as the ‘‘Section 177 Agree15 ment’’) constitute a full and final settlement of all

16 claims described in Articles X and XI of the Section

17 177 Agreement, and that any such claims be termi18 nated and barred except insofar as provided for in

19 the Section 177 Agreement.

20 (2) In the joint resolution of January 14, 1986

21 (Public Law 99–239) Congress provided that in fur22 therance of the intention of Congress as stated in

23 paragraph (1) of this subsection, the Section 177

24 Agreement is hereby ratified and approved. It is the

25 explicit understanding and intent of Congress that


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24

1 the jurisdictional limitations set forth in Article XII

2 of such Agreement are enacted solely and exclusively

3 to accomplish the objective of Article X of such

4 Agreement and only as a clarification of the effect

5 of Article X, and are not to be construed or imple6 mented separately from Article X.

7 (3) The amounts specified in paragraph (1) of

8 this subsection were paid as specified. Nothing in

9 this subsection creates any rights or obligations be10 yond those provided for in the original enacted

11 version of Public Law 99–239. The provisions of

12 section 177 of the Compact, section 177 of the U.S.-

13 FSM Compact, section 177 of the U.S.-RMI Com14 pact, and the Section 177 Agreement constitute a

15 full and final settlement of all claims described in

16 Articles X and XI of the Section 177 Agreement,

17 and any such claims are terminated and barred.

18 (f) DOE RADIOLOGICAL HEALTH CARE PROGRAM;

19 USDA AGRICULTURAL AND FOOD PROGRAMS.—

20 (1) MARSHALL ISLANDS PROGRAM.—Notwith21 standing any other provision of law, upon the re22 quest of the Government of the Republic of the Mar23 shall Islands, the President (either through an ap24 propriate department or agency of the United States

25 or by contract with a United States firm) shall conVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00029 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 tinue to provide special medical care and logistical

2 support thereto for the remaining 118 (as of April

3 30, 2003) members of the population of Rongelap

4 and Utrik who were exposed to radiation resulting

5 from the 1954 United States thermo-nuclear

6 ‘‘Bravo’’ test, pursuant to Public Laws 95–134 and

7 96–205.

8 (2) AGRICULTURAL AND FOOD PROGRAMS.—In

9 the joint resolution of January 14, 1986 (Public

10 Law 99–239) Congress provided that notwith11 standing any other provision of law, upon the re12 quest of the Government of the Marshall Islands, for

13 the first fifteen years after the effective date of the

14 Compact, the President (either through an appro15 priate department or agency of the United States or

16 by contract with a United States firm or by a grant

17 to the Government of the Republic of the Marshall

18 Islands which may further contract only with a

19 United States firm or a Republic of the Marshall Is20 lands firm, the owners, officers and majority of the

21 employees of which are citizens of the United States

22 or the Republic of the Marshall Islands) shall pro23 vide technical and other assistance—


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26

1 (A) without reimbursement, to continue

2 the planting and agricultural maintenance pro3 gram on Enewetak;

4 (B) without reimbursement, to continue

5 the food programs of the Bikini and Enewetak

6 people described in section 1(d) of Article II of

7 the Subsidiary Agreement for the Implementa8 tion of Section 177 of the Compact and for con9 tinued waterborne transportation of agricultural

10 products to Enewetak including operations and

11 maintenance of the vessel used for such pur12 poses.

13 The President shall ensure the assistance provided

14 under these programs reflects the changes in the

15 population since the inception of such programs.

16 (3) PAYMENTS.—In the joint resolution of Jan17 uary 14, 1986 (Public Law 99–239) Congress pro18 vided that payments under this subsection shall be

19 provided to such extent or in such amounts as are

20 necessary for services and other assistance provided

21 pursuant to this subsection. It is the sense of Con22 gress that after the periods of time specified in para23 graphs (1) and (2) of this subsection, consideration

24 will be given to such additional funding for these

25 programs as may be necessary. Nothing in this subVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00031 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 section creates any rights or obligations beyond

2 those provided for in the original enacted version of

3 Public Law 99–239.

4 (g) RONGELAP.—

5 (1) In the joint resolution of January 14, 1986

6 (Public Law 99–239) Congress provided that be7 cause Rongelap was directly affected by fallout from

8 a 1954 United States thermonuclear test and be9 cause the Rongelap people remain unconvinced that

10 it is safe to continue to live on Rongelap Island, it

11 is the intent of Congress to take such steps (if any)

12 as may be necessary to overcome the effects of such

13 fallout on the habitability of Rongelap Island, and to

14 restore Rongelap Island, if necessary, so that it can

15 be safely inhabited. Accordingly, it is the expectation

16 of the Congress that the Government of the Mar17 shall Islands shall use such portion of the funds

18 specified in Article II, section 1(e) of the subsidiary

19 agreement for the implementation of section 177 of

20 the Compact as are necessary for the purpose of

21 contracting with a qualified scientist or group of sci22 entists to review the data collected by the Depart23 ment of Energy relating to radiation levels and other

24 conditions on Rongelap Island resulting from the

25 thermonuclear test. It is the expectation of the ConVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00032 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 gress that the Government of the Marshall Islands,

2 after consultation with the people of Rongelap, shall

3 select the party to review such data, and shall con4 tract for such review and for submission of a report

5 to the President of the United States and the Con6 gress as to the results thereof.

7 (2) In the joint resolution of January 14, 1986

8 (Public Law 99–239) Congress provided that the

9 purpose of the review referred to in paragraph (1)

10 of this subsection shall be to establish whether the

11 data cited in support of the conclusions as to the

12 habitability of Rongelap Island, as set forth in the

13 Department of Energy report entitled: ‘‘The Mean14 ing of Radiation for Those Atolls in the Northern

15 Part of the Marshall Islands That Were Surveyed in

16 1978’’, dated November 1982, are adequate and

17 whether such conclusions are fully supported by the

18 data. If the party reviewing the data concludes that

19 such conclusions as to habitability are fully sup20 ported by adequate data, the report to the President

21 of the United States and the Congress shall so state.

22 If the party reviewing the data concludes that the

23 data are inadequate to support such conclusions as

24 to habitability or that such conclusions as to habit25 ability are not fully supported by the data, the GovVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00033 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ernment of the Marshall Islands shall contract with

2 an appropriate scientist or group of scientists to un3 dertake a complete survey of radiation and other ef4 fects of the nuclear testing program relating to the

5 habitability of Rongelap Island. Such sums as are

6 necessary for such survey and report concerning the

7 results thereof and as to steps needed to restore the

8 habitability of Rongelap Island are authorized to be

9 made available to the Government of the Marshall

10 Islands.

11 (3) In the joint resolution of January 14, 1986

12 (Public Law 99–239) Congress provided that it is

13 the intent of Congress that such steps (if any) as

14 are necessary to restore the habitability of Rongelap

15 Island and return the Rongelap people to their

16 homeland will be taken by the United States in con17 sultation with the Government of the Marshall Is18 lands and, in accordance with its authority under

19 the Constitution of the Marshall Islands, the

20 Rongelap local government council. Nothing in this

21 subsection creates any rights or obligations beyond

22 those provided for in the original enacted version of

23 Public Law 99–239.

24 (h) FOUR ATOLL HEALTH CARE PROGRAM.—


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1 (1) In the joint resolution of January 14, 1986

2 (Public Law 99–239) Congress provided that serv3 ices provided by the United States Public Health

4 Service or any other United States agency pursuant

5 to section 1(a) of Article II of the Agreement for the

6 Implementation of Section 177 of the Compact

7 (hereafter in this subsection referred to as the ‘‘Sec8 tion 177 Agreement’’) shall be only for services to

9 the people of the Atolls of Bikini, Enewetak,

10 Rongelap, and Utrik who were affected by the con11 sequences of the United States nuclear testing pro12 gram, pursuant to the program described in Public

13 Law 95–134 (91 Stat. 1159) and Public Law 96–

14 205 (94 Stat. 84) and their descendants (and any

15 other persons identified as having been so affected

16 if such identification occurs in the manner described

17 in such public laws). Nothing in this subsection shall

18 be construed as prejudicial to the views or policies

19 of the Government of the Marshall Islands as to the

20 persons affected by the consequences of the United

21 States nuclear testing program.

22 (2) In the joint resolution of January 14, 1986

23 (Public Law 99–239) Congress provided that at the

24 end of the first year after the effective date of the

25 Compact and at the end of each year thereafter, the


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31

1 providing agency or agencies shall return to the Gov2 ernment of the Marshall Islands any unexpended

3 funds to be returned to the Fund Manager (as de4 scribed in Article I of the Section 177 Agreement)

5 to be covered into the Fund to be available for fu6 ture use.

7 (3) In the joint resolution of January 14, 1986

8 (Public Law 99–239) Congress provided that the

9 Fund Manager shall retain the funds returned by

10 the Government of the Marshall Islands pursuant to

11 paragraph (2) of this subsection, shall invest and

12 manage such funds, and at the end of 15 years after

13 the effective date of the Compact, shall make from

14 the total amount so retained and the proceeds there15 of annual disbursements sufficient to continue to

16 make payments for the provision of health services

17 as specified in paragraph (1) of this subsection to

18 such extent as may be provided in contracts between

19 the Government of the Marshall Islands and appro20 priate United States providers of such health serv21 ices. Nothing in this subsection creates any rights or

22 obligations beyond those provided for in the original

23 enacted version of Public Law 99–239.

24 (i) ENJEBI COMMUNITY TRUST FUND.—In the joint

25 resolution of January 14, 1986 (Public Law 99–239) ConVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00036 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 gress provided that notwithstanding any other provision

2 of law, the Secretary of the Treasury shall establish on

3 the books of the Treasury of the United States a fund

4 having the status specified in Article V of the subsidiary

5 agreement for the implementation of Section 177 of the

6 Compact, to be known as the ‘‘Enjebi Community Trust

7 Fund’’ (hereafter in this subsection referred to as the

8 ‘‘Fund’’), and shall credit to the Fund the amount of

9 $7,500,000. Such amount, which shall be ex gratia, shall

10 be in addition to and not charged against any other funds

11 provided for in the Compact and its subsidiary agree12 ments, this joint resolution, or any other Act. Upon receipt

13 by the President of the United States of the agreement

14 described in this subsection, the Secretary of the Treas15 ury, upon request of the Government of the Marshall Is16 lands, shall transfer the Fund to the Government of the

17 Marshall Islands, provided that the Government of the

18 Marshall Islands agrees as follows:

19 (1) ENJEBI TRUST AGREEMENT.—In the joint

20 resolution of January 14, 1986 (Public Law 99–

21 239) Congress provided that the Government of the

22 Marshall Islands and the Enewetak Local Govern23 ment Council, in consultation with the people of

24 Enjebi, shall provide for the creation of the Enjebi

25 Community Trust Fund and the employment of the


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33

1 manager of the Enewetak Fund established pursu2 ant to the Section 177 Agreement as trustee and

3 manager of the Enjebi Community Trust Fund, or,

4 should the manager of the Enewetak Fund not be

5 acceptable to the people of Enjebi, another United

6 States investment manager with substantial experi7 ence in the administration of trusts and with funds

8 under management in excess of 250 million dollars.

9 (2) MONITOR CONDITIONS.—In the joint resolu10 tion of January 14, 1986 (Public Law 99–239) Con11 gress provided that upon the request of the Govern12 ment of the Marshall Islands, the United States

13 shall monitor the radiation and other conditions on

14 Enjebi and within one year of receiving such a re15 quest shall report to the Government of the Marshall

16 Islands when the people of Enjebi may resettle

17 Enjebi under circumstances where the radioactive

18 contamination at Enjebi, including contamination

19 derived from consumption of locally grown food

20 products, can be reduced or otherwise controlled to

21 meet whole body Federal radiation protection stand22 ards for the general population, including mean an23 nual dose and mean 30-year cumulative dose stand24 ards.


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34

1 (3) RESETTLEMENT OF ENJEBI.—In the joint

2 resolution of January 14, 1986 (Public Law 99–

3 239) Congress provided that in the event that the

4 United States determines that the people of Enjebi

5 can within 25 years of January 14, 1986, resettle

6 Enjebi under the conditions set forth in paragraph

7 (2) of this subsection, then upon such determination

8 there shall be available to the people of Enjebi from

9 the Fund such amounts as are necessary for the

10 people of Enjebi to do the following, in accordance

11 with a plan developed by the Enewetak Local Gov12 ernment Council and the people of Enjebi, and con13 curred with by the Government of the Marshall Is14 lands to assure consistency with the government’s

15 overall economic development plan:

16 (A) Establish a community on Enjebi Is17 land for the use of the people of Enjebi.

18 (B) Replant Enjebi with appropriate food19 bearing and other vegetation.

20 (4) RESETTLEMENT OF OTHER LOCATION.—In

21 the joint resolution of January 14, 1986 (Public

22 Law 99–239) Congress provided that in the event

23 that the United States determines that within 25

24 years of January 14, 1986, the people of Enjebi can25 not resettle Enjebi without exceeding the radiation


88500d.ABI
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35

1 standards set forth in paragraph (2) of this sub2 section, then the fund manager shall be directed by

3 the trust instrument to distribute the Fund to the

4 people of Enjebi for their resettlement at some other

5 location in accordance with a plan, developed by the

6 Enewetak Local Government Council and the people

7 of Enjebi and concurred with by the Government of

8 the Marshall Islands, to assure consistency with the

9 government’s overall economic development plan.

10 (5) INTEREST FROM FUND.—In the joint reso11 lution of January 14, 1986 (Public Law 99–239)

12 Congress provided that prior to and during the dis13 tribution of the corpus of the Fund pursuant to

14 paragraphs (3) and (4) of this subsection, the people

15 of Enjebi may, if they so request, receive the interest

16 earned by the Fund on no less frequent a basis than

17 quarterly.

18 (6) DISCLAIMER OF LIABILITY.—In the joint

19 resolution of January 14, 1986 (Public Law 99–

20 239) Congress provided that neither under the laws

21 of the Marshall Islands nor under the laws of the

22 United States, shall the Government of the United

23 States be liable for any loss or damage to person

24 or property in respect to the resettlement of Enjebi


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36

1 by the people of Enjebi, pursuant to the provision

2 of this subsection or otherwise.

3 (7) ll.—The ex gratia payment provided for

4 in this subsection was made. Nothing in this sub5 section creates any rights or obligations beyond

6 those provided for in the original enacted version of

7 Public Law 99–239.

8 (j) BIKINI ATOLL CLEANUP.—

9 (1) DECLARATION OF POLICY.—In the joint

10 resolution of January 14, 1986 (Public Law 99–

11 239), the Congress determined and declared that it

12 is the policy of the United States, to be supported

13 by the full faith and credit of the United States,

14 that because the United States, through its nuclear

15 testing and other activities, rendered Bikini Atoll

16 unsafe for habitation by the people of Bikini, the

17 United States will fulfill its responsibility for restor18 ing Bikini Atoll to habitability, as set forth in para19 graph (2) and (3) of this subsection.

20 (2) CLEANUP FUNDS.—The joint resolution of

21 January 14, 1986 (Public Law 99–239) authorized

22 to be appropriated such sums as necessary to imple23 ment the settlement agreement of March 15, 1985,

24 in The People of Bikini, et al. against United States

25 of America, et al., Civ. No. 84–0425 (D. Ha.).


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1 (3) CONDITIONS OF FUNDING.—In the joint

2 resolution of January 14, 1986 (Public Law 99–

3 239) the Congress provided that the funds referred

4 to in paragraph (2) were to be made available pursu5 ant to Article VI, Section 1 of the Compact Section

6 177 Agreement upon completion of the events set

7 forth in the settlement agreement referred to in

8 paragraph (2) of this subsection. Nothing in this

9 subsection creates any rights or obligations beyond

10 those provided for in the original enacted version of

11 Public Law 99–239.

12 (k) AGREEMENT ON AUDITS.—The Comptroller Gen13 eral (and his duly authorized representatives) shall have

14 the authorities necessary to carry out his responsibilities

15 under section 232 of the U.S.-RMI Compact and the

16 agreement referred to in section 462(b)(4) of the U.S.-

17 RMI Compact, including the following authorities:

18 (1) GENERAL AUTHORITY OF THE COMP19 TROLLER GENERAL TO AUDIT.—

20 (A) The Comptroller General of the United

21 States (and his duly authorized representatives)

22 shall have the authority to audit—

23 (i) all grants, program assistance, and

24 other assistance provided to the Govern25 ment of the Republic of the Marshall IsVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00042 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 lands under Articles I and II of Title Two

2 of the U.S.-RMI Compact; and

3 (ii) any other assistance provided by

4 the Government of the United States to

5 the Government of the Republic of the

6 Marshall Islands.

7 Such authority shall include authority for the

8 Comptroller General to conduct or cause to be

9 conducted any of the audits provided for in sec10 tion 232 of the U.S.-RMI Compact. The au11 thority provided in this paragraph shall con12 tinue for at least three years after the last such

13 grant has been made or assistance has been

14 provided.

15 (B) The Comptroller General (and his duly

16 authorized representatives) shall also have au17 thority to review any audit conducted by or on

18 behalf of the Government of the United States.

19 In this connection, the Comptroller General

20 shall have access to such personnel and to such

21 records, documents, working papers, automated

22 data and files, and other information relevant

23 to such review.

24 (2) COMPTROLLER GENERAL ACCESS TO

25 RECORDS.—


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39

1 (A) In carrying out paragraph (1), the

2 Comptroller General (and his duly authorized

3 representatives) shall have such access to the

4 personnel and (without cost) to records, docu5 ments, working papers, automated data and

6 files, and other information relevant to such au7 dits. The Comptroller General may duplicate

8 any such records, documents, working papers,

9 automated data and files, or other information

10 relevant to such audits.

11 (B) Such records, documents, working pa12 pers, automated data and files, and other infor13 mation regarding each such grant or other as14 sistance shall be maintained for at least three

15 years after the date such grant or assistance

16 was provided and in a manner that permits

17 such grants, assistance and payments to be ac18 counted for distinct from any other funds of the

19 Government of the Republic of the Marshall Is20 lands.

21 (3) STATUS OF COMPTROLLER GENERAL REP22 RESENTATIVES.—The Comptroller General and his

23 duly authorized representatives shall be immune

24 from civil and criminal process relating to words

25 spoken or written and all acts performed by them in


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40

1 their official capacity and falling within their func2 tions, except insofar as such immunity may be ex3 pressly waived by the Government of the United

4 States. The Comptroller General and his duly au5 thorized representatives shall not be liable to arrest

6 or detention pending trial, except in the case of a

7 grave crime and pursuant to a decision by a com8 petent judicial authority, and such persons shall

9 enjoy immunity from seizure of personal property,

10 immigration restrictions, and laws relating to alien

11 registration, fingerprinting, and the registration of

12 foreign agents. Such persons shall enjoy the same

13 taxation exemptions as are set forth in Article 34 of

14 the Vienna Convention on Diplomatic Relations. The

15 privileges, exemptions and immunities accorded

16 under this paragraph are not for the personal ben17 efit of the individuals concerned but are to safeguard

18 the independent exercise of their official functions.

19 Without prejudice to those privileges, exemptions

20 and immunities, it is the duty of all such persons to

21 respect the laws and regulations of the Government

22 of the Republic of the Marshall Islands.

23 (4) AUDITS DEFINED.—As used in this sub24 section, the term ‘‘audits’’ includes financial, proVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00045 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 gram, and management audits, including

2 determining—

3 (A) whether the Government of the Repub4 lic of the Marshall Islands has met the require5 ments set forth in the U.S.-RMI Compact, or

6 any related agreement entered into under the

7 U.S.-RMI Compact, regarding the purposes for

8 which such grants and other assistance are to

9 be used; and

10 (B) the propriety of the financial trans11 actions of the Government of the Republic of

12 the Marshall Islands pursuant to such grants or

13 assistance.

14 (5) COOPERATION BY THE REPUBLIC OF THE

15 MARSHALL ISLANDS.—The Government of the Re16 public of the Marshall Islands will cooperate fully

17 with the Comptroller General of the United States in

18 the conduct of such audits as the Comptroller Gen19 eral determines necessary to enable the Comptroller

20 General to fully discharge his responsibilities under

21 this joint resolution.


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1 SEC. 104. INTERPRETATION OF AND UNITED STATES POL2 ICY REGARDING U.S.-FSM COMPACT AND U.S.-

3 RMI COMPACT.

4 (a) HUMAN RIGHTS.—In approving the U.S.-FSM

5 Compact and the U.S.-RMI Compact, the Congress notes

6 the conclusion in the Statement of Intent of the Report

7 of The Future Political Status Commission of the Con8 gress of Micronesia in July, 1969, that ‘‘our recommenda9 tion of a free associated state is indissolubly linked to our

10 desire for such a democratic, representative, constitutional

11 government’’ and notes that such desire and intention are

12 reaffirmed and embodied in the Constitutions of the Fed13 erated States of Micronesia and the Republic of the Mar14 shall Islands. The Congress also notes and specifically en15 dorses the preamble to the U.S.-FSM Compact and the

16 U.S.-RMI Compact, which affirms that the governments

17 of the parties to the U.S.-FSM Compact and the U.S.-

18 RMI Compact are founded upon respect for human rights

19 and fundamental freedoms for all. The Secretary of State

20 shall include in the annual reports on the status of inter21 nationally recognized human rights in foreign countries,

22 which are submitted to the Congress pursuant to sections

23 116 and 502B of the Foreign Assistance Act of 1961, ‘‘22

24 USC 2151n, 2304’’ a full and complete report regarding

25 the status of internationally recognized human rights in


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1 the Federated States of Micronesia and the Republic of

2 the Marshall Islands.

3 (b) IMMIGRATION AND PASSPORT SECURITY.—

4 (1) NATURALIZED CITIZENS.—The rights of a

5 bona fide naturalized citizen of the Federated States

6 of Micronesia or the Republic of the Marshall Is7 lands to enter the United States, to lawfully engage

8 therein in occupations, and to establish residence

9 therein as a nonimmigrant, to the extent such rights

10 are provided under section 141 of the U.S.-FSM

11 Compact and U.S.-RMI Compact, shall not be

12 deemed to extend to any such naturalized citizen

13 with respect to whom circumstances associated with

14 the acquisition of the status of a naturalized citizen

15 are such as to allow a reasonable inference, on the

16 part of appropriate officials of the United States and

17 subject to United States procedural requirements,

18 that such naturalized status was acquired primarily

19 in order to obtain such rights.

20 (2) PASSPORTS.—Up to $250,000 of the grant

21 assistance provided to the Federated States of Mi22 cronesia pursuant to section 211(a)(4) of the U.S.-

23 FSM Compact, and up to $250,000 of the grant as24 sistance provided to the Republic of the Marshall Is25 lands pursuant to section 211(a)(4) of the U.S.-RMI


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1 Compact (or a greater amount of the section

2 211(a)(4) grant, if mutually agreed between the

3 Government of the United States and the govern4 ment of the Federated States of Micronesia or the

5 government of the Republic of the Marshall Islands),

6 shall be used for the purpose of increasing the ma7 chine-readability and security of passports issued by

8 such jurisdictions. Such funds must be obligated by

9 September 30, 2004 and in the amount and manner

10 specified by the Secretary of State in consultation

11 with the Secretary of Homeland Security and, re12 spectively, with the government of the Federated

13 States of Micronesia and the government of the Re14 public of the Marshall Islands. The United States

15 Government is authorized to require that passports

16 used for the purpose of seeking admission under sec17 tion 141 of the U.S.-FSM Compact and the U.S.-

18 RMI Compact contain the security enhancements

19 funded by such assistance.

20 (3) INFORMATION-SHARING.—As a condition of

21 assistance under the U.S.-FSM Compact and the

22 U.S.-RMI Compact, the governments of the Fed23 erated States of Micronesia and the Republic of the

24 Marshall Islands shall develop, prior to October 1,

25 2004, the capability to provide reliable and timely


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1 information as may reasonably be required by the

2 Government of the United States in enforcing crimi3 nal and security-related grounds of inadmissibility

4 and deportability under the Immigration and Na5 tionality Act, as amended, and shall provide such in6 formation to the Government of the United States.

7 (4) TRANSITION; CONSTRUCTION OF SECTIONS

8 141(A)(3) AND 141(A)(4) OF THE U.S.-FSM COMPACT

9 AND U.S.-RMI COMPACT.—The words ‘‘the effective

10 date of this Compact, as amended’’ in sections

11 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact

12 and the U.S.-RMI Compact shall be construed to

13 read, ‘‘on the day prior to the enactment by the

14 United States Congress of the Amended Compact

15 Act.’’.

16 (c) NONALIENATION OF LANDS.—The Congress en17 dorses and encourages the maintenance of the policies of

18 the Government of the Federated States of Micronesia and

19 the Government of the Republic of the Marshall Islands

20 to regulate, in accordance with their Constitutions and

21 laws, the alienation of permanent interests in real property

22 so as to restrict the acquisition of such interests to persons

23 of Federated States of Micronesia citizenship and the Re24 public of the Marshall Islands citizenship, respectively.


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1 (d) NUCLEAR WASTE DISPOSAL.—In approving the

2 U.S.-FSM Compact and the U.S.-RMI Compact, the Con3 gress understands that the Government of the Federated

4 States of Micronesia and the Government of the Republic

5 of the Marshall Islands will not permit any other govern6 ment or any nongovernmental party to conduct, in the Re7 public of the Marshall Islands or in the Federated States

8 of Micronesia, any of the activities specified in subsection

9 (a) of section 314 of the U.S.-FSM Compact and the U.S.-

10 RMI Compact.

11 (e) EFFECT OF U.S.-FSM COMPACT AND U.S.-RMI

12 COMPACT ON CERTAIN U.S. AREAS; RELATED AUTHOR13 IZATION AND CONTINUING APPROPRIATION.—

14 (1) DEFINITIONS.—For the purposes of this

15 subsection—

16 (A) the term ‘‘affected jurisdiction’’ means

17 American Samoa, Guam, the Commonwealth of

18 the Northern Mariana Islands, or the State of

19 Hawaii; and

20 (B) the term ‘‘qualified nonimmigrant’’

21 means person admitted pursuant to section 141

22 of the U.S.-RMI or U.S.-FSM Compact, or sec23 tion 141 of the Palau Compact who, as of a

24 date referenced in the most recently published

25 enumeration (i) is a resident of an affected juVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00051 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 risdiction, and (ii) has had periods of residence

2 in American Samoa, Guam, the Commonwealth

3 of the Northern Mariana Islands, or a State of

4 the United States with a duration, in the aggre5 gate, of less than 10 years; and their children

6 under the age of 18 who were admitted as non7 immigrants under the U.S.-RMI Compact, the

8 U.S.-FSM Compact, or the Palau Compact. As

9 used in this subsection, the term ‘‘resident’’

10 shall be a person who has a ‘‘residence,’’ as

11 that term is defined in section 101(a)(33) of

12 the Immigration and Nationality Act, as

13 amended.

14 (2) AUTHORIZATION AND CONTINUING APPRO15 PRIATION.—There is hereby authorized and appro16 priated to the Secretary of the Interior, out of any

17 money in the Treasury not otherwise appropriated,

18 to remain available until expended, for each fiscal

19 year from 2004 through 2023, $15,000,000 for

20 grants to affected jurisdictions to aid in defraying

21 costs incurred by affected jurisdictions as a result of

22 increased demands placed on health, educational, so23 cial, or public safety services or infrastructure re24 lated to such services due to the residence in af25 fected jurisdictions of qualified nonimmigrants from


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1 the Republic of the Marshall Islands, the Federated

2 States of Micronesia, or the Republic of Palau. The

3 grants shall be—

4 (A) awarded and administered by the De5 partment of the Interior, Office of Insular Af6 fairs, or any successor thereto, in accordance

7 with regulations, policies and procedures appli8 cable to grants so awarded and administered,

9 and

10 (B) used only for health, educational, so11 cial, or public safety services, or infrastructure

12 related to such services, specifically affected by

13 qualified nonimmigrants.

14 (3) ENUMERATION.—The Secretary of the Inte15 rior shall conduct periodic enumerations of qualified

16 nonimmigrants in each affected jurisdiction. The

17 enumerations—

18 (A) shall be conducted at such intervals as

19 the Secretary of the Interior shall determine,

20 but no less frequently than every five years, be21 ginning in fiscal year 2003;

22 (B) shall be supervised by the United

23 States Bureau of the Census or such other or24 ganization as the Secretary of the Interior may

25 select; and


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49

1 (C) after fiscal year 2003, shall be funded

2 by the Secretary of the Interior by deducting

3 such sums as are necessary from funds appro4 priated pursuant to the authorization contained

5 in paragraph (2) of this subsection.

6 (4) ALLOCATION.—The Secretary of the Inte7 rior shall allocate to the government of each affected

8 jurisdiction, on the basis of the results of the most

9 recent enumeration, grants in an aggregate amount

10 equal to the total amount of funds appropriated

11 under paragraph (2) of this subsection, as reduced

12 by any deductions authorized by subparagraph (C)

13 of paragraph (3) of this subsection, multiplied by a

14 ratio derived by dividing the number of qualified

15 nonimmigrants in such affected jurisdiction by the

16 total number of qualified nonimmigrants in all af17 fected jurisdictions.

18 (f) FOREIGN LOANS.—The Congress hereby reaf19 firms the United States position that the United States

20 Government is not responsible for foreign loans or debt

21 obtained by the Governments of the Federated States of

22 Micronesia and the Republic of the Marshall Islands.

23 SEC. 105. SUPPLEMENTAL PROVISIONS.

24 (a) DOMESTIC PROGRAM REQUIREMENTS.—Except

25 as may otherwise be provided in this joint resolution, all


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1 United States Federal programs and services extended to

2 or operated in the Federated States of Micronesia or the

3 Republic of the Marshall Islands are and shall remain sub4 ject to all applicable criteria, standards, reporting require5 ments, auditing procedures, and other rules and regula6 tions applicable to such programs when operating in the

7 United States (including its territories and common8 wealths).

9 (b) RELATIONS WITH THE FEDERATED STATES OF

10 MICRONESIA AND THE REPUBLIC OF THE MARSHALL IS11 LANDS.—

12 (1) Appropriations made pursuant to Article I

13 of Title Two and subsection (a)(2) of section 221 of

14 Article II of Title Two of the U.S.-FSM Compact

15 and the U.S.-RMI Compact shall be made to the

16 Secretary of the Interior, who shall have the author17 ity necessary to fulfill his responsibilities for moni18 toring and managing the funds so appropriated con19 sistent with the U.S.-FSM Compact and the U.S.-

20 RMI Compact, including the agreements referred to

21 in section 462(b)(4) of the U.S.-FSM Compact and

22 U.S.-RMI Compact (relating to Fiscal Procedures)

23 and the agreements referred to in section 462(b)(5)

24 of the U.S.-FSM Compact and the U.S.-RMI Com25 pact (regarding the Trust Fund).


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1 (2) Appropriations made pursuant to sub2 sections (a)(1) and (a)(3) through (6) of section 221

3 of Article II of Title Two of the U.S.-FSM Compact

4 and subsection (a)(1) and (a)(3) through (5) of the

5 U.S.-RMI Compact shall be made directly to the

6 agencies named in those subsections.

7 (3) Appropriations for services and programs

8 referred to in subsection (b) of section 221 of Article

9 II of Title Two of the U.S.-FSM Compact or U.S.-

10 RMI Compact and appropriations for services and

11 programs referred to in sections 105(f) and 108(a)

12 of this joint resolution shall be made to the relevant

13 agencies in accordance with the terms of the appro14 priations for such services and programs.

15 (4) Federal agencies providing programs and

16 services to the Federated States of Micronesia and

17 the Republic of the Marshall Islands shall coordinate

18 with the Secretaries of the Interior and State re19 garding provision of such programs and services.

20 The Secretaries of the Interior and State shall con21 sult with the Secretary of the Treasury regarding

22 overall economic conditions in the Federated States

23 of Micronesia and the Republic of the Marshall Is24 lands.


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52

1 (5) United States Government employees in ei2 ther the Federated States of Micronesia or the Re3 public of the Marshall Islands are subject to the au4 thority of the United States Chief of Mission, includ5 ing as elaborated in section 207 of the Foreign Serv6 ice Act and the President’s Letter of Instruction to

7 the United States Chief of Mission and any order or

8 directive of the President in effect from time to

9 time.

10 (6) The President is hereby authorized to ap11 point an Interagency Group on Freely Associated

12 States’ Affairs to provide policy guidance and rec13 ommendations on implementation of the U.S.-FSM

14 Compact and the U.S.-RMI Compact to Federal de15 partments and agencies.

16 (7) The three United States appointees (United

17 States chair plus two members) to the Joint Eco18 nomic Management Committee provided for in sec19 tion 213 of the U.S.-FSM Compact and Article III

20 of the U.S.-FSM Fiscal Procedures Agreement re21 ferred to in section 462(b)(4) of the U.S.-FSM Com22 pact shall be United States Government officers or

23 employees. The three United States appointees

24 (United States chair plus two members) to the Joint

25 Economic Management and Financial Accountability


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1 Committee provided for in section 214 of the U.S.-

2 RMI Compact and Article III of the U.S.-RMI Fis3 cal Procedures Agreement referred to in section

4 462(b)(4) of the U.S.-RMI Compact shall be United

5 States Government officers or employees.

6 (8) The United States voting members (United

7 States chair plus two or more members) of the

8 Trust Fund Committee appointed by the Govern9 ment of the United States pursuant to Article 7 of

10 the Trust Fund Agreement implementing section

11 215 of the U.S.-FSM Compact and referred to in

12 section 462(b)(5) of the U.S.-FSM Compact and

13 any alternates designated by the Government of the

14 United States shall be United States Government of15 ficers or employees. The United States voting mem16 bers (United States chair plus two or more mem17 bers) of the Trust Fund Committee appointed by the

18 Government of the United States pursuant to Article

19 7 of the Trust Fund Agreement implementing sec20 tion 216 of the U.S.-RMI Compact and referred to

21 in section 462(b)(5) of the U.S.-RMI Compact and

22 any alternates designated by the Government of the

23 United States shall be United States Government of24 ficers or employees.


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1 (9) The Trust Fund Committee provided for in

2 Article 7 of the U.S.-FSM Trust Fund Agreement

3 implementing section 215 of the U.S.-FSM Compact

4 shall be a non-profit corporation incorporated under

5 the laws of the District of Columbia. To the extent

6 that any law, rule, regulation or ordinance of the

7 District of Columbia, or of any State or political

8 subdivision thereof in which the Trust Fund Com9 mittee is incorporated or doing business, impedes or

10 otherwise interferes with the performance of the

11 functions of the Trust Fund Committee pursuant to

12 this joint resolution, such law, rule, regulation, or

13 ordinance shall be deemed to be preempted by this

14 joint resolution. The Trust Fund Committee pro15 vided for in Article 7 of the U.S.-RMI Trust Fund

16 Agreement implementing section 216 of the U.S.-

17 RMI Compact shall be a non-profit corporation in18 corporated under the laws of the District of Colum19 bia. To the extent that any law, rule, regulation or

20 ordinance of the District of Columbia, or of any

21 State or political subdivision thereof in which the

22 Trust Fund Committee is incorporated or doing

23 business, impedes or otherwise interferes with the

24 performance of the functions of the Trust Fund

25 Committee pursuant to this joint resolution, such


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1 law, rule, regulation, or ordinance shall be deemed

2 to be preempted by this joint resolution.

3 (c) CONTINUING TRUST TERRITORY AUTHORIZA4 TION.—The authorization provided by the Act of June 30,

5 1954, as amended (68 Stat. 330) shall remain available

6 after the effective date of the Compact with respect to the

7 Federated States of Micronesia and the Republic of the

8 Marshall Islands for the following purposes:

9 (1) Prior to October 1, 1986, for any purpose

10 authorized by the Compact or the joint resolution of

11 January 14, 1986 (Public Law 99–239).

12 (2) Transition purposes, including but not lim13 ited to, completion of projects and fulfillment of

14 commitments or obligations; termination of the

15 Trust Territory Government and termination of the

16 High Court; health and education as a result of ex17 ceptional circumstances; ex gratia contributions for

18 the populations of Bikini, Enewetak, Rongelap, and

19 Utrik; and technical assistance and training in fi20 nancial management, program administration, and

21 maintenance of infrastructure, except that, for pur22 poses of an orderly reduction of United States pro23 grams and services in the Federated States of Mi24 cronesia, the Marshall Islands, and Palau, United

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1 ized by the Compact of Free Association or by other

2 provisions of law may continue but, unless reim3 bursed by the respective freely associated state, not

4 in excess of the following amounts:

5 (A) For fiscal year 1987, an amount not to

6 exceed 75 per centum of the total amount ap7 propriated for such programs for fiscal year

8 1986.

9 (B) For fiscal year 1988, an amount not

10 to exceed 50 per centum of the total amount

11 appropriated for such programs for fiscal year

12 1986.

13 (C) For fiscal year 1989, an amount not to

14 exceed 25 per centum of the total amount ap15 propriated for such programs for fiscal year

16 1986.

17 (d) SURVIVABILITY.—In furtherance of the provi18 sions of Title Four, Article V, sections 452 and 453 of

19 the U.S.-FSM Compact and the U.S.-RMI Compact, any

20 provisions of the U.S.-FSM Compact or the U.S.-RMI

21 Compact which remain effective after the termination of

22 the U.S.-FSM Compact or U.S.-RMI Compact by the act

23 of any party thereto and which are affected in any manner

24 by provisions of this title shall remain subject to such pro25 visions.


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1 (e) NONCOMPLIANCE SANCTIONS; ACTIONS INCOM2 PATIBLE WITH UNITED STATES AUTHORITY.—The Con3 gress expresses its understanding that the Governments

4 of the Federated States of Micronesia and the Republic

5 of the Marshall Islands will not act in a manner incompat6 ible with the authority and responsibility of the United

7 States for security and defense matters in or related to

8 the Federated States of Micronesia or the Republic of the

9 Marshall Islands pursuant to the U.S.-FSM Compact or

10 the U.S.-RMI Compact, including the agreements referred

11 to in sections 462(a)(2) of the U.S.-FSM Compact and

12 462(a)(5) of the U.S.-RMI Compact. The Congress fur13 ther expresses its intention that any such act on the part

14 of either such Government will be viewed by the United

15 States as a material breach of the U.S.-FSM Compact or

16 U.S.-RMI Compact. The Government of the United States

17 reserves the right in the event of such a material breach

18 of the U.S.-FSM Compact by the Government of the Fed19 erated States of Micronesia or the U.S.-RMI Compact by

20 the Government of the Republic of the Marshall Islands

21 to take action, including (but not limited to) the suspen22 sion in whole or in part of the obligations of the Govern23 ment of the United States to that Government.

24 (f) CONTINUING PROGRAMS AND LAWS.—


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1 (1) FEDERATED STATES OF MICRONESIA AND

2 REPUBLIC OF THE MARSHALL ISLANDS.—In addi3 tion to the programs and services set forth in section

4 221 of the Compact, and pursuant to section 222 of

5 the Compact, the programs and services of the fol6 lowing agencies shall be made available to the Fed7 erated States of Micronesia and to the Republic of

8 the Marshall Islands:

9 (A) The Legal Services Corporation.

10 (B) The Public Health Service.

11 (C) The Rural Housing Service (formerly,

12 the Farmers Home Administration) in the Mar13 shall Islands and each of the four States of the

14 Federated States of Micronesia: Provided, That

15 in lieu of continuation of the program in the

16 Federated States of Micronesia, the President

17 may agree to transfer to the Government of the

18 Federated States of Micronesia without cost,

19 the portfolio of the Rural Housing Service ap20 plicable to the Federated States of Micronesia

21 and provide such technical assistance in man22 agement of the portfolio as may be requested by

23 the Federated States of Micronesia).

24 (2) TORT CLAIMS.—The provisions of section

25 178 of the U.S.-FSM Compact and the U.S.-RMI


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1 Compact regarding settlement and payment of tort

2 claims shall apply to employees of any Federal agen3 cy of the Government of the United States (and to

4 any other person employed on behalf of any Federal

5 agency of the Government of the United States on

6 the basis of a contractual, cooperative, or similar

7 agreement) which provides any service or carries out

8 any other function pursuant to or in furtherance of

9 any provisions of the U.S.-FSM Compact or the

10 U.S.-RMI Compact or this joint resolution, except

11 for provisions of Title Three of the Compact and of

12 the subsidiary agreements related to such Title, in

13 such area to which such Agreement formerly ap14 plied.

15 (3) PCB CLEANUP.—The programs and serv16 ices of the Environmental Protection Agency regard17 ing PCBs shall, to the extent applicable, as appro18 priate, and in accordance with applicable law, be

19 construed to be made available to such islands.

20 (g) COLLEGE OF MICRONESIA.—Until otherwise pro21 vided by Act of Congress, or until termination of the U.S.-

22 FSM Compact and the U.S.-RMI Compact, the College

23 of Micronesia shall retain its status as a land-grant insti24 tution and its eligibility for all benefits and programs

25 available to such land-grant institutions.


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1 (h) TRUST TERRITORY DEBTS TO U.S. FEDERAL

2 AGENCIES.—Neither the Government of the Federated

3 States of Micronesia nor the Government of the Marshall

4 Islands shall be required to pay to any department, agen5 cy, independent agency, office, or instrumentality of the

6 United States any amounts owed to such department,

7 agency, independent agency, office, or instrumentality by

8 the Government of the Trust Territory of the Pacific Is9 lands as of the effective date of the Compact. There is

10 authorized to be appropriated such sums as may be nec11 essary to carry out the purposes of this subsection.

12 (i) USE OF DOD MEDICAL FACILITIES.—The Sec13 retary of Defense is hereby authorized to cooperate with

14 government authorities responsible for provision of med15 ical services in the Federated States of Micronesia and

16 the Republic of the Marshall Islands in order to permit

17 use of medical facilities of the Department of Defense for

18 persons properly referred by such authorities in accord19 ance with Article XVII of the agreements referred to in

20 section 462(b)(7) of the U.S.-FSM Compact and the U.S.-

21 RMI Compact. The Secretary of Health and Human Serv22 ices is hereby authorized and directed to continue to make

23 the services of the National Health Service Corps available

24 to the residents of the Federated States of Micronesia and

25 the Republic of the Marshall Islands to the same extent


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1 and for so long as such services are authorized to be pro2 vided to persons residing in any other areas within or out3 side the United States.

4 (j) TECHNICAL ASSISTANCE.—Technical assistance

5 may be provided pursuant to section 224 of the U.S.-FSM

6 Compact or the U.S.-RMI Compact by Federal agencies

7 and institutions of the Government of the United States

8 to the extent such assistance may be provided to States,

9 territories, or units of local government. Such assistance

10 by the Forest Service, the Natural Resources Conservation

11 Service, the USDA Resource Conservation and Develop12 ment Program, the Fish and Wildlife Service, the National

13 Marine Fisheries Service, the United States Coast Guard,

14 and the Advisory Council on Historic Preservation, the

15 Department of the Interior, and other agencies providing

16 assistance under the National Historic Preservation Act

17 (80 Stat. 915; 16 U.S.C. 470–470t), shall be on a non18 reimbursable basis. During the period the U.S.-FSM Com19 pact and the U.S.-RMI Compact are in effect, the grant

20 programs under the National Historic Preservation Act

21 shall continue to apply to the Federated States of Micro22 nesia and the Republic of the Marshall Islands in the same

23 manner and to the same extent as prior to the approval

24 of the Compact. Any funds provided pursuant to sections

25 102(a), 103(a), 103(b), 103(f), 103(g), 103(h), 103(j),


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1 105(c), 105(g), 105(h), 105(i), 105(j), 105(k), 105(l), and

2 105(m) of this joint resolution shall be in addition to and

3 not charged against any amounts to be paid to either the

4 Federated States of Micronesia or the Republic of the

5 Marshall Islands pursuant to the U.S.-FSM Compact, the

6 U.S.-RMI Compact, or their related subsidiary agree7 ments.

8 (k) PRIOR SERVICE BENEFITS PROGRAM.—Notwith9 standing any other provision of law, persons who on Janu10 ary 1, 1985, were eligible to receive payment under the

11 Prior Service Benefits Program established within the So12 cial Security System of the Trust Territory of the Pacific

13 Islands because of their services performed for the United

14 States Navy or the Government of the Trust Territory of

15 the Pacific Islands prior to July 1, 1968, shall continue

16 to receive such payments on and after the effective date

17 of the Compact.

18 (l) INDEFINITE LAND USE PAYMENTS.—There are

19 authorized to be appropriated such sums as may be nec20 essary to complete repayment by the United States of any

21 debts owed for the use of various lands in the Federated

22 States of Micronesia and the Marshall Islands prior to

23 January 1, 1985.

24 (m) COMMUNICABLE DISEASE CONTROL PRO25 GRAM.—There are authorized to be appropriated for


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1 grants to the Government of the Federated States of Mi2 cronesia such sums as may be necessary for purposes of

3 establishing or continuing programs for the control and

4 prevention of communicable diseases, including (but not

5 limited to) cholera and Hansen’s Disease. The Secretary

6 of the Interior shall assist the Government of the Fed7 erated States of Micronesia and the Government of the

8 Republic of the Marshall Islands in designing and imple9 menting such a program.

10 (n) USER FEES.—Any person in the Federated

11 States of Micronesia or the Republic of the Marshall Is12 lands shall be liable for user fees, if any, for services pro13 vided in the Federated States of Micronesia or the Repub14 lic of the Marshall Islands by the Government of the

15 United States to the same extent as any person in the

16 United States would be liable for fees, if any, for such

17 services in the United States.

18 (o) TREATMENT OF JUDGMENTS OF COURTS OF THE

19 FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF

20 THE MARSHALL ISLANDS, AND THE REPUBLIC OF

21 PALAU.—No judgment, whenever issued, of a court of the

22 Federated States of Micronesia, the Republic of the Mar23 shall Islands, or the Republic of Palau, against the United

24 States, its departments and agencies, or officials of the

25 United States or any other individuals acting on behalf


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1 of the United States within the scope of their official duty,

2 shall be honored by the United States, or be subject to

3 recognition or enforcement in a court in the United States,

4 unless the judgment is consistent with the interpretation

5 by the United States of international agreements relevant

6 to the judgment. In determining the consistency of a judg7 ment with an international agreement, due regard shall

8 be given to assurances made by the Executive Branch to

9 the Congress of the United States regarding the proper

10 interpretation of the international agreement.

11 SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.

12 (a) ASSISTANCE TO U.S. FIRMS.—In order to assist

13 the Governments of the Federated States of Micronesia

14 and of the Republic of the Marshall Islands through pri15 vate sector firms which may be awarded contracts for con16 struction or major repair of capital infrastructure within

17 the Federated States of Micronesia or the Republic of the

18 Marshall Islands, the United States shall consult with the

19 Governments of the Federated States of Micronesia and

20 the Republic of the Marshall Islands with respect to any

21 such contracts, and the United States shall enter into

22 agreements with such firms whereby such firms will, con23 sistent with applicable requirements of such

24 Governments—


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1 (1) to the maximum extent possible, employ

2 citizens of the Federated States of Micronesia and

3 the Republic of the Marshall Islands;

4 (2) to the extent that necessary skills are not

5 possessed by citizens of the Federated States of Mi6 cronesia and the Republic of the Marshall Islands,

7 provide on the job training, with particular emphasis

8 on the development of skills relating to operation of

9 machinery and routine and preventative maintenance

10 of machinery and other facilities; and

11 (3) provide specific training or other assistance

12 in order to enable the Government to engage in

13 long-term maintenance of infrastructure.

14 Assistance by such firms pursuant to this section may not

15 exceed 20 percent of the amount of the contract and shall

16 be made available only to such firms which meet the defi17 nition of United States firm under the nationality rule for

18 suppliers of services of the Agency for International Devel19 opment (hereafter in this section referred to as ‘‘United

20 States firms’’). There are authorized to be appropriated

21 such sums as may be necessary for the purposes of this

22 subsection.

23 (b) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated such sums as may be

25 necessary to cover any additional costs incurred by the


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1 Government of the Federated States of Micronesia or the

2 Republic of the Marshall Islands if such Governments,

3 pursuant to an agreement entered into with the United

4 States, apply a preference on the award of contracts to

5 United States firms, provided that the amount of such

6 preference does not exceed 10 percent of the amount of

7 the lowest qualified bid from a non-United States firm for

8 such contract.

9 SEC. 107. PROHIBITION.

10 The provisions of chapter 11 of title 18, United

11 States Code, shall apply in full to any individual who has

12 served as the United States negotiator of amendments to

13 the Compact or its subsidiary agreements or of related

14 agreements or who is or was an officer or employee of

15 the Office in the Department of State responsible for ne16 gotiating amendments to the Compact or its subsidiary

17 agreements or who is or was assigned or detailed to that

18 Office or who served on the interagency group coordi19 nating United States policy on the Compact negotiations.

20 SEC. 108. COMPENSATORY ADJUSTMENTS.

21 (a) ADDITIONAL PROGRAMS AND SERVICES.—In ad22 dition to the programs and services set forth in Section

23 221 of the U.S.-FSM Compact and the U.S.-RMI Com24 pact, and pursuant to Section 222 of the U.S.-FSM Com25 pact and the U.S.-RMI Compact, the services and proVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00071 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 grams of the following United States agencies are author2 ized to be made available to the Federated States of Mi3 cronesia and the Republic of the Marshall Islands: the

4 Small Business Administration, Economic Development

5 Administration, the Rural Utilities Services (formerly

6 Rural Electrification Administration); and the programs

7 and services of the Department of Labor under the Work8 force Investment Act of 1998; and the programs and serv9 ices of the Department of Commerce relating to tourism

10 and to marine resource development.

11 (b) FURTHER AMOUNTS.—

12 (1) The joint resolution of January 14, 1986

13 (Public Law 99–239) provided that the governments

14 of the Federated States of Micronesia and the Mar15 shall Islands may submit to Congress reports con16 cerning the overall financial and economic impacts

17 on such areas resulting from the effect of Title IV

18 of that joint resolution upon Title Two of the Com19 pact. There were authorized to be appropriated for

20 fiscal years beginning after September 30, 1990,

21 such amounts as necessary, but not to exceed $40

22 million for the Federated States of Micronesia and

23 $20 million for the Marshall Islands, as provided in

24 appropriation acts, to further compensate the gov25 ernments of such islands (in addition to the comVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00072 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 pensation provided in subsections (a) and (b) of sec2 tion 111 of the joint resolution of January 14, 1986

3 (Public Law 99–239) for adverse impacts, if any, on

4 the finances and economies of such areas resulting

5 from the effect of Title IV of that joint resolution

6 upon Title Two of the Compact. The joint resolution

7 of January 14, 1986 (Public Law 99–239) further

8 provided that at the end of the initial fifteen-year

9 term of the Compact, should any portion of the total

10 amount of funds authorized in subsection 111 of

11 that resolution not have been appropriated, such

12 amount not yet appropriated may be appropriated,

13 without regard to divisions between amounts author14 ized in subsection 111 for the Federated States of

15 Micronesia and for the Marshall Islands, based on

16 either or both such government’s showing of such

17 adverse impact, if any, as provided in that sub18 section.

19 (2) The governments of the Federated States of

20 Micronesia and the Republic of the Marshall Islands

21 may each submit no more than one report or request

22 for further compensation under section 111 of the

23 joint resolution of January 14, 1986 (Public Law

24 99–239) and any such report or request must be

25 submitted by September 30, 2004. Only adverse ecoVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00073 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 nomic effect occurring during the initial fifteen-year

2 term of the Compact may be considered for com3 pensation under section 111 of the joint resolution

4 of January 14, 1986 (Public Law 99–239).

5 SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIA6 TION.

7 (a) There are authorized and appropriated to the De8 partment of the Interior, out of any money in the Treas9 ury not otherwise appropriated, to remain available until

10 expended, such sums as are necessary to carry out the

11 purposes of sections 211, 212(b), 215, and 217 of the

12 U.S.-FSM-Compact and sections 211, 212, 213(b), 216,

13 and 218 of the U.S.-RMI Compact, in this and subsequent

14 years.

15 (b) There are authorized to be appropriated to the

16 Departments, agencies, and instrumentalities named in

17 paragraphs (1) and (3) through (6) of section 221(a) of

18 the U.S.-FSM Compact and paragraphs (1) and (3)

19 through (5) of section 221(a) of the U.S.-RMI Compact,

20 such sums as are necessary to carry out the purposes of

21 sections 221(a) of the U.S.-FSM Compact and the U.S.-

22 RMI Compact, to remain available until expended.


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1 SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED

2 STATES OF MICRONESIA, THE REPUBLIC OF

3 THE MARSHALL ISLANDS, AND THE REPUB4 LIC OF PALAU EMPLOYED BY THE GOVERN5 MENT OF THE UNITED STATES IN THE CONTI6 NENTAL UNITED STATES.

7 Section 605 of Public Law 107–67 (the Treasury and

8 General Government Appropriations Act, 2002) is amend9 ed by striking ‘‘or the Republic of the Philippines,’’ in the

10 last sentence and inserting the following: ‘‘the Republic

11 of the Philippines, the Federated States of Micronesia, the

12 Republic of the Marshall Islands, or the Republic of

13 Palau.’’.


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1 TITLE II—COMPACTS OF FREE

2 ASSOCIATION WITH THE FED3 ERATED STATES OF MICRO4 NESIA AND THE REPUBLIC OF

5 THE MARSHALL ISLANDS

6 SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED

7 BETWEEN THE GOVERNMENT OF THE

8 UNITED STATES OF AMERICA AND THE GOV9 ERNMENT OF THE FEDERATED STATES OF

10 MICRONESIA AND BETWEEN THE GOVERN11 MENT OF THE UNITED STATES OF AMERICA

12 AND THE GOVERNMENT OF THE REPUBLIC

13 OF THE MARSHALL ISLANDS.

14 (a) COMPACT OF FREE ASSOCIATION, AS AMENDED,

15 BETWEEN THE GOVERNMENT OF THE UNITED STATES

16 OF AMERICA AND THE GOVERNMENT OF THE FED17 ERATED STATES OF MICRONESIA.—

18 PREAMBLE

19 THE GOVERNMENT OF THE UNITED STATES OF

20 AMERICA AND THE GOVERNMENT OF THE

21 FEDERATED STATES OF MICRONESIA

22 Affirming that their Governments and their relation23 ship as Governments are founded upon respect for human

24 rights and fundamental freedoms for all, and that the peoVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00076 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ple of the Federated States of Micronesia have the right

2 to enjoy self-government; and

3 Affirming the common interests of the United States

4 of America and the Federated States of Micronesia in cre5 ating and maintaining their close and mutually beneficial

6 relationship through the free and voluntary association of

7 their respective Governments; and

8 Affirming the interest of the Government of the

9 United States in promoting the economic advancement

10 and budgetary self-reliance of the Federated States of Mi11 cronesia; and

12 Recognizing that their relationship until the entry

13 into force on November 3, 1986 of the Compact was based

14 upon the International Trusteeship System of the United

15 Nations Charter, and in particular Article 76 of the Char16 ter; and that pursuant to Article 76 of the Charter, the

17 people of the Federated States of Micronesia have progres18 sively developed their institutions of self-government, and

19 that in the exercise of their sovereign right to self-deter20 mination they, through their freely-expressed wishes, have

21 adopted a Constitution appropriate to their particular cir22 cumstances; and

23 Recognizing that the Compact reflected their common

24 desire to terminate the Trusteeship and establish a gov25 ernment-to-government relationship which was in accordVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00077 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ance with the new political status based on the freely ex2 pressed wishes of the people of the Federated States of

3 Micronesia and appropriate to their particular cir4 cumstances; and

5 Recognizing that the people of the Federated States

6 of Micronesia have and retain their sovereignty and their

7 sovereign right to self-determination and the inherent

8 right to adopt and amend their own Constitution and form

9 of government and that the approval of the entry of the

10 Government of the Federated States of Micronesia into

11 the Compact by the people of the Federated States of Mi12 cronesia constituted an exercise of their sovereign right

13 to self-determination; and

14 Recognizing the common desire of the people of the

15 United States and the people of the Federated States of

16 Micronesia to maintain their close government-to-govern17 ment relationship, the United States and the Federated

18 States of Micronesia:

19 NOW, THEREFORE, MUTUALLY AGREE to

20 continue and strengthen their relationship of free associa21 tion by amending the Compact, which continues to provide

22 a full measure of self-government for the people of the

23 Federated States of Micronesia; and

24 FURTHER AGREE that the relationship of free as25 sociation derives from and is as set forth in this Compact,


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1 as amended, by the Governments of the United States and

2 the Federated States of Micronesia; and that, during such

3 relationship of free association, the respective rights and

4 responsibilities of the Government of the United States

5 and the Government of the Federated States of Micronesia

6 in regard to this relationship of free association derive

7 from and are as set forth in this Compact, as amended.

8 TITLE ONE

9 GOVERNMENTAL RELATIONS

10 Article I

11 Self-Government

12 Section 111

13 The people of the Federated States of Micronesia,

14 acting through the Government established under their

15 Constitution, are self-governing.

16 Article II

17 Foreign Affairs

18 Section 121

19 (a) The Government of the Federated States of Mi20 cronesia has the capacity to conduct foreign affairs and

21 shall do so in its own name and right, except as otherwise

22 provided in this Compact, as amended.

23 (b) The foreign affairs capacity of the Government

24 of the Federated States of Micronesia includes:


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1 (1) the conduct of foreign affairs relating to law

2 of the sea and marine resources matters, including

3 the harvesting, conservation, exploration or exploi4 tation of living and non-living resources from the

5 sea, seabed or subsoil to the full extent recognized

6 under international law;

7 (2) the conduct of its commercial, diplomatic,

8 consular, economic, trade, banking, postal, civil avia9 tion, communications, and cultural relations, includ10 ing negotiations for the receipt of developmental

11 loans and grants and the conclusion of arrangements

12 with other governments and international and inter13 governmental organizations, including any matters

14 specially benefiting its individual citizens.

15 (c) The Government of the United States recognizes

16 that the Government of the Federated States of Micro17 nesia has the capacity to enter into, in its own name and

18 right, treaties and other international agreements with

19 governments and regional and international organizations.

20 (d) In the conduct of its foreign affairs, the Govern21 ment of the Federated States of Micronesia confirms that

22 it shall act in accordance with principles of international

23 law and shall settle its international disputes by peaceful

24 means.

25 Section 122


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1 The Government of the United States shall support

2 applications by the Government of the Federated States

3 of Micronesia for membership or other participation in re4 gional or international organizations as may be mutually

5 agreed.

6 Section 123

7 (a) In recognition of the authority and responsibility

8 of the Government of the United States under Title Three,

9 the Government of the Federated States of Micronesia

10 shall consult, in the conduct of its foreign affairs, with

11 the Government of the United States.

12 (b) In recognition of the foreign affairs capacity of

13 the Government of the Federated States of Micronesia,

14 the Government of the United States, in the conduct of

15 its foreign affairs, shall consult with the Government of

16 the Federated States of Micronesia on matters that the

17 Government of the United States regards as relating to

18 or affecting the Government of the Federated States of

19 Micronesia.

20 Section 124

21 The Government of the United States may assist or

22 act on behalf of the Government of the Federated States

23 of Micronesia in the area of foreign affairs as may be re24 quested and mutually agreed from time to time.The Gov25 ernment of the United States shall not be responsible to


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1 third parties for the actions of the Government of the Fed2 erated States of Micronesia undertaken with the assist3 ance or through the agency of the Government of the

4 United States pursuant to this section unless expressly

5 agreed.

6 Section 125

7 The Government of the United States shall not be

8 responsible for nor obligated by any actions taken by the

9 Government of the Federated States of Micronesia in the

10 area of foreign affairs, except as may from time to time

11 be expressly agreed.

12 Section 126

13 At the request of the Government of the Federated

14 States of Micronesia and subject to the consent of the re15 ceiving state, the Government of the United States shall

16 extend consular assistance on the same basis as for citi17 zens of the United States to citizens of the Federated

18 States of Micronesia for travel outside the Federated

19 States of Micronesia, the United States and its territories

20 and possessions.

21 Section 127

22 Except as otherwise provided in this Compact, as

23 amended, or its related agreements, all obligations, re24 sponsibilities, rights and benefits of the Government of the

25 United States as Administering Authority which resulted


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1 from the application pursuant to the Trusteeship Agree2 ment of any treaty or other international agreement to the

3 Trust Territory of the Pacific Islands on November 2,

4 1986, are, as of that date, no longer assumed and enjoyed

5 by the Government of the United States.

6 Article III

7 Communications

8 Section 131

9 (a) The Government of the Federated States of Mi10 cronesia has full authority and responsibility to regulate

11 its domestic and foreign communications, and the Govern12 ment of the United States shall provide communications

13 assistance as mutually agreed.

14 (b) On May 24, 1993, the Government of the Fed15 erated States of Micronesia elected to undertake all func16 tions previously performed by the Government of the

17 United States with respect to domestic and foreign com18 munications, except for those functions set forth in a sepa19 rate agreement entered into pursuant to this section of

20 the Compact, as amended.

21 Section 132

22 The Government of the Federated States of Micro23 nesia shall permit the Government of the United States

24 to operate telecommunications services in the Federated

25 States of Micronesia to the extent necessary to fulfill the


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1 obligations of the Government of the United States under

2 this Compact, as amended, in accordance with the terms

3 of separate agreements entered into pursuant to this sec4 tion of the Compact, as amended.

5 Article IV

6 Immigration

7 Section 141

8 (a) In furtherance of the special and unique relation9 ship that exists between the United States and the Fed10 erated States of Micronesia, under the Compact, as

11 amended, any person in the following categories may be

12 admitted to lawfully engage in occupations, and establish

13 residence as a nonimmigrant in the United States and its

14 territories and possessions (the ‘‘United States’’) without

15 regard to paragraph (5) or (7)(B)(i)(II) of section 212(a)

16 of the Immigration and Nationality Act, as amended, 8

17 U.S.C. 1182(a)(5) or (7)(B)(i)(II):

18 (1) a person who, on November 2, 1986, was a

19 citizen of the Trust Territory of the Pacific Islands,

20 as defined in Title 53 of the Trust Territory Code

21 in force on January 1, 1979, and has become and

22 remains a citizen of the Federated States of Micro23 nesia;

24 (2) a person who acquires the citizenship of the

25 Federated States of Micronesia at birth, on or after


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1 the effective date of the Constitution of the Fed2 erated States of Micronesia;

3 (3) an immediate relative of a person referred

4 to in paragraphs (1) or (2) of this section, provided

5 that such immediate relative is a naturalized citizen

6 of the Federated States of Micronesia who has been

7 an actual resident there for not less than five years

8 after attaining such naturalization and who holds a

9 certificate of actual residence, and further provided,

10 that, in the case of a spouse, such spouse has been

11 married to the person referred to in paragraph (1)

12 or (2) of this section for at least five years, and fur13 ther provided, that the Government of the United

14 States is satisfied that such naturalized citizen

15 meets the requirement of subsection (b) of section

16 104 of Public Law 99–239 as it was in effect on the

17 day prior to the effective date of this Compact, as

18 amended;

19 (4) a naturalized citizen of the Federated

20 States of Micronesia who was an actual resident

21 there for not less than five years after attaining such

22 naturalization and who satisfied these requirements

23 as of April 30, 2003, who continues to be an actual

24 resident and holds a certificate of actual residence,

25 and whose name is included in a list furnished by


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1 the Government of the Federated States of Micro2 nesia to the Government of the United States no

3 later than the effective date of the Compact, as

4 amended, in form and content acceptable to the Gov5 ernment of the United States, provided, that the

6 Government of the United States is satisfied that

7 such naturalized citizen meets the requirement of

8 subsection (b) of section 104 of Public Law 99–239

9 as it was in effect on the day prior to the effective

10 date of this Compact, as amended; or

11 (5) an immediate relative of a citizen of the

12 Federated States of Micronesia, regardless of the

13 immediate relative’s country of citizenship or period

14 of residence in the Federated States of Micronesia,

15 if the citizen of the Federated States of Micronesia

16 is serving on active duty in any branch of the United

17 States Armed Forces, or in the active reserves.

18 (b) Notwithstanding subsection (a) of this section, a

19 person who is coming to the United States pursuant to

20 an adoption outside the United States, or for the purpose

21 of adoption in the United States, is ineligible for admission

22 under the Compact and the Compact, as amended. This

23 subsection shall apply to any person who is or was an ap24 plicant for admission to the United States on or after

25 March 1, 2003, including any applicant for admission in


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1 removal proceedings (including appellate proceedings) on

2 or after March 1, 2003, regardless of the date such pro3 ceedings were commenced. This subsection shall have no

4 effect on the ability of the Government of the United

5 States or any United States State or local government to

6 commence or otherwise take any action against any person

7 or entity who has violated any law relating to the adoption

8 of any person.

9 (c) Notwithstanding subsection (a) of this section, no

10 person who has been or is granted citizenship in the Fed11 erated States of Micronesia, or has been or is issued a

12 Federated States of Micronesia passport pursuant to any

13 investment, passport sale, or similar program has been or

14 shall be eligible for admission to the United States under

15 the Compact or the Compact, as amended.

16 (d) A person admitted to the United States under the

17 Compact, or the Compact, as amended, shall be considered

18 to have the permission of the Government of the United

19 States to accept employment in the United States. An un20 expired Federated States of Micronesia passport with un21 expired documentation issued by the Government of the

22 United States evidencing admission under the Compact or

23 the Compact, as amended, shall be considered to be docu24 mentation establishing identity and employment author25 ization under section 274A(b)(1)(B) of the Immigration


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1 and Nationality Act, as amended, 8 U.S.C.

2 1324a(b)(1)(B). The Government of the United States

3 will take reasonable and appropriate steps to implement

4 and publicize this provision, and the Government of the

5 Federated States of Micronesia will also take reasonable

6 and appropriate steps to publicize this provision.

7 (e) For purposes of the Compact and the Compact,

8 as amended:

9 (1) the term ‘‘residence’’ with respect to a per10 son means the person’s principal, actual dwelling

11 place in fact, without regard to intent, as provided

12 in section 101(a)(33) of the Immigration and Na13 tionality Act, as amended, 8 U.S.C. 1101(a)(33),

14 and variations of the term ‘‘residence,’’ including

15 ‘‘resident’’ and ‘‘reside,’’ shall be similarly con16 strued;

17 (2) the term ‘‘actual residence’’ means physical

18 presence in the Federated States of Micronesia dur19 ing eighty-five percent of the five-year period of resi20 dency required by section 141(a)(3) and (4);

21 (3) the term ‘‘certificate of actual residence’’

22 means a certificate issued to a naturalized citizen by

23 the Government of the Federated States of Micro24 nesia stating that the citizen has complied with the


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1 actual residence requirement of section 141(a)(3) or

2 (4);

3 (4) the term ‘‘nonimmigrant’’ means an alien

4 who is not an ‘‘immigrant’’ as defined in section

5 101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and

6 (5) the term ‘‘immediate relative’’ means a

7 spouse, or unmarried son or unmarried daughter

8 less than 21 years of age.

9 (f) The Immigration and Nationality Act, as amend10 ed, shall apply to any person admitted or seeking admis11 sion to the United States (other than a United States pos12 session or territory where such Act does not apply) under

13 the Compact or the Compact, as amended, and nothing

14 in the Compact or the Compact, as amended, shall be con15 strued to limit, preclude, or modify the applicability of,

16 with respect to such person:

17 (1) any ground of inadmissibility or deport18 ability under such Act (except sections 212(a)(5)

19 and 212(a)(7)(B)(i)(II) of such Act, as provided in

20 subsection (a) of this section), and any defense

21 thereto, provided that, section 237(a)(5) of such Act

22 shall be construed and applied as if it reads as fol23 lows: ‘‘any alien who has been admitted under the

24 Compact, or the Compact, as amended, who cannot


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1 show that he or she has sufficient means of support

2 in the United States, is deportable’’;

3 (2) the authority of the Government of the

4 United States under section 214(a)(1) of such Act

5 to provide that admission as a nonimmigrant shall

6 be for such time and under such conditions as the

7 Government of the United States may by regulations

8 prescribe;

9 (3) Except for the treatment of certain docu10 mentation for purposes of section 274A(b)(1)(B) of

11 such Act as provided by subsection (d) of this sec12 tion of the Compact, as amended, any requirement

13 under section 274A, including but not limited to sec14 tion 274A(b)(1)(E);

15 (4) Section 643 of the Illegal Immigration Re16 form and Immigrant Responsibility Act of 1996,

17 Public Law 104–208, and actions taken pursuant to

18 section 643; and

19 (5) the authority of the Government of the

20 United States otherwise to administer and enforce

21 the Immigration and Nationality Act, as amended,

22 or other United States law.

23 (g) Any authority possessed by the Government of the

24 United States under this section of the Compact or the

25 Compact, as amended, may also be exercised by the GovVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00090 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ernment of a territory or possession of the United States

2 where the Immigration and Nationality Act, as amended,

3 does not apply, to the extent such exercise of authority

4 is lawful under a statute or regulation of such territory

5 or possession that is authorized by the laws of the United

6 States.

7 (h) Subsection (a) of this section does not confer on

8 a citizen of the Federated States of Micronesia the right

9 to establish the residence necessary for naturalization

10 under the Immigration and Nationality Act, as amended,

11 or to petition for benefits for alien relatives under that

12 Act. Subsection (a) of this section, however, shall not pre13 vent a citizen of the Federated States of Micronesia from

14 otherwise acquiring such rights or lawful permanent resi15 dent alien status in the United States.

16 Section 142

17 (a) Any citizen or national of the United States may

18 be admitted, to lawfully engage in occupations, and reside

19 in the Federated States of Micronesia, subject to the

20 rights of the Government of the Federated States of Mi21 cronesia to deny entry to or deport any such citizen or

22 national as an undesirable alien. Any determination of in23 admissibility or deportability shall be based on reasonable

24 statutory grounds and shall be subject to appropriate ad25 ministrative and judicial review within the Federated


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1 States of Micronesia. If a citizen or national of the United

2 States is a spouse of a citizen of the Federated States

3 of Micronesia, the Government of the Federated States of

4 Micronesia shall allow the United States citizen spouse to

5 establish residence. Should the Federated States of Micro6 nesia citizen spouse predecease the United States citizen

7 spouse during the marriage, the Government of the Fed8 erated States of Micronesia shall allow the United States

9 citizen spouse to continue to reside in the Federated

10 States of Micronesia.

11 (b) In enacting any laws or imposing any require12 ments with respect to citizens and nationals of the United

13 States entering the Federated States of Micronesia under

14 subsection (a) of this section, including any grounds of

15 inadmissibility or deportability, the Government of the

16 Federated States of Micronesia shall accord to such citi17 zens and nationals of the United States treatment no less

18 favorable than that accorded to citizens of other countries.

19 (c) Consistent with subsection (a) of this section, with

20 respect to citizens and nationals of the United States seek21 ing to engage in employment or invest in the Federated

22 States of Micronesia, the Government of the Federated

23 States of Micronesia shall adopt immigration-related pro24 cedures no less favorable than those adopted by the Gov25 ernment of the United States with respect to citizens of


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1 the Federated States of Micronesia seeking employment

2 in the United States.

3 Section 143

4 Any person who relinquishes, or otherwise loses, his

5 United States nationality or citizenship, or his Federated

6 States of Micronesia citizenship, shall be ineligible to re7 ceive the privileges set forth in sections 141 and 142. Any

8 such person may apply for admission to the United States

9 or the Federated States of Micronesia, as the case may

10 be, in accordance with any other applicable laws of the

11 United States or the Federated States of Micronesia relat12 ing to immigration of aliens from other countries. The

13 laws of the Federated States of Micronesia or the United

14 States, as the case may be, shall dictate the terms and

15 conditions of any such person’s stay.

16 Article V

17 Representation

18 Section 151

19 Relations between the Government of the United

20 States and the Government of the Federated States of Mi21 cronesia shall be conducted in accordance with the Vienna

22 Convention on Diplomatic Relations. In addition to diplo23 matic missions and representation, the Governments may

24 establish and maintain other offices and designate other


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1 representatives on terms and in locations as may be mutu2 ally agreed.

3 Section 152

4 (a) Any citizen or national of the United States who,

5 without authority of the United States, acts as the agent

6 of the Government of the Federated States of Micronesia

7 with regard to matters specified in the provisions of the

8 Foreign Agents Registration Act of 1938, as amended (22

9 U.S.C. 611 et seq.), that apply with respect to an agent

10 of a foreign principal shall be subject to the requirements

11 of such Act. Failure to comply with such requirements

12 shall subject such citizen or national to the same penalties

13 and provisions of law as apply in the case of the failure

14 of such an agent of a foreign principal to comply with such

15 requirements. For purposes of the Foreign Agents Reg16 istration Act of 1938, the Federated States of Micronesia

17 shall be considered to be a foreign country.

18 (b) Subsection (a) of this section shall not apply to

19 a citizen or national of the United States employed by the

20 Government of the Federated States of Micronesia with

21 respect to whom the Government of the Federated States

22 of Micronesia from time to time certifies to the Govern23 ment of the United States that such citizen or national

24 is an employee of the Federated States of Micronesia

25 whose principal duties are other than those matters speciVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00094 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 fied in the Foreign Agents Registration Act of 1938, as

2 amended, that apply with respect to an agent of a foreign

3 principal. The agency or officer of the United States re4 ceiving such certifications shall cause them to be filed with

5 the Attorney General, who shall maintain a publicly avail6 able list of the persons so certified.

7 Article VI

8 Environmental Protection

9 Section 161

10 The Governments of the United States and the Fed11 erated States of Micronesia declare that it is their policy

12 to promote efforts to prevent or eliminate damage to the

13 environment and biosphere and to enrich understanding

14 of the natural resources of the Federated States of Micro15 nesia. In order to carry out this policy, the Government

16 of the United States and the Government of the Federated

17 States of Micronesia agree to the following mutual and

18 reciprocal undertakings.

19 (a) The Government of the United States:

20 (1) shall continue to apply the environmental

21 controls in effect on November 2, 1986 to those of

22 its continuing activities subject to section 161(a)(2),

23 unless and until those controls are modified under

24 sections 161(a)(3) and 161(a)(4);


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1 (2) shall apply the National Environmental Pol2 icy Act of 1969, 83 Stat. 852, 42 U.S.C. 4321 et

3 seq., to its activities under the Compact, as amend4 ed, and its related agreements as if the Federated

5 States of Micronesia were the United States;

6 (3) shall comply also, in the conduct of any ac7 tivity requiring the preparation of an Environmental

8 Impact Statement under section 161(a)(2), with

9 standards substantively similar to those required by

10 the following laws of the United States, taking into

11 account the particular environment of the Federated

12 States of Micronesia: the Endangered Species Act of

13 1973, as amended, 87 Stat. 884, 16 U.S.C. 1531 et

14 seq.; the Clean Air Act, as amended, 77 Stat. 392,

15 42 U.S.C. Supp. 7401 et seq.; the Clean Water Act

16 (Federal Water Pollution Control Act), as amended,

17 86 Stat. 896, 33 U.S.C. 1251 et seq.; Title I of the

18 Marine Protection, Research and Sanctuaries Act of

19 1972 (the Ocean Dumping Act), 33 U.S.C. 1411 et

20 seq.; the Toxic Substances Control Act, as amended,

21 15 U.S.C. 2601 et seq.; the Solid Waste Disposal

22 Act, as amended, 42 U.S.C. 6901 et seq.; and such

23 other environmental protection laws of the United

24 States and of the Federated States of Micronesia, as

25 may be mutually agreed from time to time with the


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1 Government of the Federated States of Micronesia;

2 and

3 (4) shall develop, prior to conducting any activ4 ity requiring the preparation of an Environmental

5 Impact Statement under section 161(a)(2), written

6 standards and procedures, as agreed with the Gov7 ernment of the Federated States of Micronesia, to

8 implement the substantive provisions of the laws

9 made applicable to U.S. Government activities in the

10 Federated States of Micronesia, pursuant to section

11 161(a)(3).

12 (b) The Government of the Federated States of Mi13 cronesia shall continue to develop and implement stand14 ards and procedures to protect its environment. As a re15 ciprocal obligation to the undertakings of the Government

16 of the United States under this Article, the Federated

17 States of Micronesia, taking into account its particular en18 vironment, shall continue to develop and implement stand19 ards for environmental protection substantively similar to

20 those required of the Government of the United States by

21 section 161(a)(3) prior to its conducting activities in the

22 Federated States of Micronesia, substantively equivalent

23 to activities conducted there by the Government of the

24 United States and, as a further reciprocal obligation, shall

25 enforce those standards.


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1 (c) Section 161(a), including any standard or proce2 dure applicable thereunder, and section 161(b) may be

3 modified or superseded in whole or in part by agreement

4 of the Government of the United States and the Govern5 ment of the Federated States of Micronesia.

6 (d) In the event that an Environmental Impact State7 ment is no longer required under the laws of the United

8 States for major Federal actions significantly affecting the

9 quality of the human environment, the regulatory regime

10 established under sections 161(a)(3) and 161(a)(4) shall

11 continue to apply to such activities of the Government of

12 the United States until amended by mutual agreement.

13 (e) The President of the United States may exempt

14 any of the activities of the Government of the United

15 States under this Compact, as amended, and its related

16 agreements from any environmental standard or proce17 dure which may be applicable under sections 161(a)(3)

18 and 161(a)(4) if the President determines it to be in the

19 paramount interest of the Government of the United

20 States to do so, consistent with Title Three of this Com21 pact, as amended, and the obligations of the Government

22 of the United States under international law. Prior to any

23 decision pursuant to this subsection, the views of the Gov24 ernment of the Federated States of Micronesia shall be

25 sought and considered to the extent practicable. If the


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1 President grants such an exemption, to the extent prac2 ticable, a report with his reasons for granting such exemp3 tion shall be given promptly to the Government of the Fed4 erated States of Micronesia.

5 (f) The laws of the United States referred to in sec6 tion 161(a)(3) shall apply to the activities of the Govern7 ment of the United States under this Compact, as amend8 ed, and its related agreements only to the extent provided

9 for in this section.

10 Section 162

11 The Government of the Federated States of Micro12 nesia may bring an action for judicial review of any admin13 istrative agency action or any activity of the Government

14 of the United States pursuant to section 161(a) for en15 forcement of the obligations of the Government of the

16 United States arising thereunder. The United States Dis17 trict Court for the District of Hawaii and the United

18 States District Court for the District of Columbia shall

19 have jurisdiction over such action or activity, and over ac20 tions brought under section 172(b) which relate to the ac21 tivities of the Government of the United States and its

22 officers and employees, governed by section 161, provided

23 that:

24 (a) Such actions may only be civil actions for

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1 ages against the Government of the United States

2 or, where required by law, its officers in their official

3 capacity; no criminal actions may arise under this

4 section.

5 (b) Actions brought pursuant to this section

6 may be initiated only by the Government of the Fed7 erated States of Micronesia.

8 (c) Administrative agency actions arising under

9 section 161 shall be reviewed pursuant to the stand10 ard of judicial review set forth in 5 U.S.C. 706.

11 (d) The United States District Court for the

12 District of Hawaii and the United States District

13 Court for the District of Columbia shall have juris14 diction to issue all necessary processes, and the Gov15 ernment of the United States agrees to submit itself

16 to the jurisdiction of the court; decisions of the

17 United States District Court shall be reviewable in

18 the United States Court of Appeals for the Ninth

19 Circuit or the United States Court of Appeals for

20 the District of Columbia, respectively, or in the

21 United States Supreme Court as provided by the

22 laws of the United States.

23 (e) The judicial remedy provided for in this sec24 tion shall be the exclusive remedy for the judicial re25 view or enforcement of the obligations of the GovVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00100 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ernment of the United States under this Article and

2 actions brought under section 172(b) which relate to

3 the activities of the Government of the United

4 States and its officers and employees governed by

5 section 161.

6 (f) In actions pursuant to this section, the Gov7 ernment of the Federated States of Micronesia shall

8 be treated as if it were a United States citizen.

9 Section 163

10 (a) For the purpose of gathering data necessary to

11 study the environmental effects of activities of the Govern12 ment of the United States subject to the requirements of

13 this Article, the Government of the Federated States of

14 Micronesia shall be granted access to facilities operated

15 by the Government of the United States in the Federated

16 States of Micronesia, to the extent necessary for this pur17 pose, except to the extent such access would unreasonably

18 interfere with the exercise of the authority and responsi19 bility of the Government of the United States under Title

20 Three.

21 (b) The Government of the United States, in turn,

22 shall be granted access to the Federated States of Micro23 nesia for the purpose of gathering data necessary to dis24 charge its obligations under this Article, except to the ex25 tent such access would unreasonably interfere with the exVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00101 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ercise of the authority and responsibility of the Govern2 ment of the Federated States of Micronesia under Title

3 One, and to the extent necessary for this purpose shall

4 be granted access to documents and other information to

5 the same extent similar access is provided the Government

6 of the Federated States of Micronesia under the Freedom

7 of Information Act, 5 U.S.C. 552.

8 (c) The Government of the Federated States of Mi9 cronesia shall not impede efforts by the Government of

10 the United States to comply with applicable standards and

11 procedures.

12 Article VII

13 General Legal Provisions

14 Section 171

15 Except as provided in this Compact, as amended, or

16 its related agreements, the application of the laws of the

17 United States to the Trust Territory of the Pacific Islands

18 by virtue of the Trusteeship Agreement ceased with re19 spect to the Federated States of Micronesia on November

20 3, 1986, the date the Compact went into effect.

21 Section 172

22 (a) Every citizen of the Federated States of Micro23 nesia who is not a resident of the United States shall enjoy

24 the rights and remedies under the laws of the United

25 States enjoyed by any non-resident alien.


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1 (b) The Government of the Federated States of Mi2 cronesia and every citizen of the Federated States of Mi3 cronesia shall be considered to be a ‘‘person’’ within the

4 meaning of the Freedom of Information Act, 5 U.S.C.

5 552, and of the judicial review provisions of the Adminis6 trative Procedure Act, 5 U.S.C. 701–706, except that only

7 the Government of the Federated States of Micronesia

8 may seek judicial review under the Administrative Proce9 dure Act or judicial enforcement under the Freedom of

10 Information Act when such judicial review or enforcement

11 relates to the activities of the Government of the United

12 States governed by sections 161 and 162.

13 Section 173

14 The Governments of the United States and the Fed15 erated States of Micronesia agree to adopt and enforce

16 such measures, consistent with this Compact, as amended,

17 and its related agreements, as may be necessary to protect

18 the personnel, property, installations, services, programs

19 and official archives and documents maintained by the

20 Government of the United States in the Federated States

21 of Micronesia pursuant to this Compact, as amended, and

22 its related agreements and by the Government of the Fed23 erated States of Micronesia in the United States pursuant

24 to this Compact, as amended, and its related agreements.

25 Section 174


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1 Except as otherwise provided in this Compact, as

2 amended, and its related agreements:

3 (a) The Government of the Federated States of

4 Micronesia, and its agencies and officials, shall be

5 immune from the jurisdiction of the court of the

6 United States, and the Government of the United

7 States, and its agencies and officials, shall be im8 mune from the jurisdiction of the courts of the Fed9 erated States of Micronesia.

10 (b) The Government of the United States ac11 cepts responsibility for and shall pay:

12 (1) any unpaid money judgment rendered

13 by the High Court of the Trust Territory of the

14 Pacific Islands against the Government of the

15 United States with regard to any cause of ac16 tion arising as a result of acts or omissions of

17 the Government of the Trust Territory of the

18 Pacific Islands or the Government of the

19 United States prior to November 3, 1986;

20 (2) any claim settled by the claimant and

21 the Government of the Trust Territory of the

22 Pacific Islands but not paid as of the November

23 3, 1986; and

24 (3) settlement of any administrative claim

25 or of any action before a court of the Trust


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1 Territory of the Pacific Islands or the Govern2 ment of the United States, arising as a result

3 of acts or omissions of the Government of the

4 Trust Territory of the Pacific Islands or the

5 Government of the United States.

6 (c) Any claim not referred to in section 174(b)

7 and arising from an act or omission of the Govern8 ment of the Trust Territory of the Pacific Islands or

9 the Government of the United States prior to the ef10 fective date of the Compact shall be adjudicated in

11 the same manner as a claim adjudicated according

12 to section 174(d). In any claim against the Govern13 ment of the Trust Territory of the Pacific Islands,

14 the Government of the United States shall stand in

15 the place of the Government of the Trust Territory

16 of the Pacific Islands. A judgment on any claim re17 ferred to in section 174(b) or this subsection, not

18 otherwise satisfied by the Government of the United

19 States, may be presented for certification to the

20 United States Court of Appeals for the Federal Cir21 cuit, or its successor courts, which shall have juris22 diction therefore, notwithstanding the provisions of

23 28 U.S.C. 1502, and which court’s decisions shall be

24 reviewable as provided by the laws of the United

25 States. The United States Court of Appeals for the


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1 Federal Circuit shall certify such judgment, and

2 order payment thereof, unless it finds, after a hear3 ing, that such judgment is manifestly erroneous as

4 to law or fact, or manifestly excessive. In either of

5 such cases the United States Court of Appeals for

6 the Federal Circuit shall have jurisdiction to modify

7 such judgment.

8 (d) The Government of the Federated States of

9 Micronesia shall not be immune from the jurisdic10 tion of the courts of the United States, and the Gov11 ernment of the United States shall not be immune

12 from the jurisdiction of the courts of the Federated

13 States of Micronesia in any civil case in which an ex14 ception to foreign state immunity is set forth in the

15 Foreign Sovereign Immunities Act (28 U.S.C. 1602

16 et seq.) or its successor statutes.

17 Section 175

18 (a) A separate agreement, which shall come into ef19 fect simultaneously with this Compact, as amended, and

20 shall have the force of law, shall govern mutual assistance

21 and cooperation in law enforcement matters, including the

22 pursuit, capture, imprisonment and extradition of fugi23 tives from justice and the transfer of prisoners, as well

24 as other law enforcement matters. In the United States,

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1 tradition, including 18 U.S.C. 3184, 3186 and 3188–95,

2 shall be applicable to the extradition of fugitives under the

3 separate agreement, and the laws of the United States

4 governing the transfer of prisoners, including 18 U.S.C.

5 4100–15, shall be applicable to the transfer of prisoners

6 under the separate agreement; and

7 (b) A separate agreement, which shall come into ef8 fect simultaneously with this Compact, as amended, and

9 shall have the force of law, shall govern requirements re10 lating to labor recruitment practices, including registra11 tion, reporting, suspension or revocation of authorization

12 to recruit persons for employment in the United States,

13 and enforcement for violations of such requirements.

14 Section 176

15 The Government of the Federated States of Micro16 nesia confirms that final judgments in civil cases rendered

17 by any court of the Trust Territory of the Pacific Islands

18 shall continue in full force and effect, subject to the con19 stitutional power of the courts of the Federated States of

20 Micronesia to grant relief from judgments in appropriate

21 cases.

22 Section 177

23 Section 177 of the Compact entered into force with

24 respect to the Federated States of Micronesia on Novem25 ber 3, 1986 as follows:


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1 ‘‘(a) The Government of the United States ac2 cepts the responsibility for compensation owing to

3 citizens of the Marshall Islands, or the Federated

4 States of Micronesia, or (Palau) for loss or damage

5 to property and person of the citizens of the Mar6 shall Islands, or the Federated States of Micronesia,

7 resulting from the nuclear testing program which

8 the Government of the United States conducted in

9 the Northern Marshall Islands between June 30,

10 1946, and August 18, 1958.

11 ‘‘(b) The Government of the United States and

12 the Government of the Marshall Islands shall set

13 forth in a separate agreement provisions for the just

14 and adequate settlement of all such claims which

15 have arisen in regard to the Marshall Islands and its

16 citizens and which have not as yet been compensated

17 or which in the future may arise, for the continued

18 administration by the Government of the United

19 States of direct radiation related medical surveil20 lance and treatment programs and radiological mon21 itoring activities and for such additional programs

22 and activities as may be mutually agreed, and for

23 the assumption by the Government of the Marshall

24 Islands of responsibility for enforcement of limita25 tions on the utilization of affected areas developed


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1 in cooperation with the Government of the United

2 States and for the assistance by the Government of

3 the United States in the exercise of such responsi4 bility as may be mutually agreed. This separate

5 agreement shall come into effect simultaneously with

6 this Compact and shall remain in effect in accord7 ance with its own terms.

8 ‘‘(c) The Government of the United States shall

9 provide to the Government of the Marshall Islands,

10 on a grant basis, the amount of $150 million to be

11 paid and distributed in accordance with the separate

12 agreement referred to in this Section, and shall pro13 vide the services and programs set forth in this sep14 arate agreement, the language of which is incor15 porated into this Compact.’’

16 The Compact, as amended, makes no changes to, and

17 has no effect upon, Section 177 of the Compact, nor does

18 the Compact, as amended, change or affect the separate

19 agreement referred to in Section 177 of the Compact in20 cluding Articles IX and X of that separate agreement, and

21 measures taken by the parties thereunder.

22 Section 178

23 (a) The Federal agencies of the Government of the

24 United States that provide the services and related pro25 grams in the Federated States of Micronesia pursuant to


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1 Title Two are authorized to settle and pay tort claims aris2 ing in the Federated States of Micronesia from the activi3 ties of such agencies or from the acts or omissions of the

4 employees of such agencies. Except as provided in section

5 178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C.

6 1304 shall apply exclusively to such administrative settle7 ments and payments.

8 (b) Claims under section 178(a) that cannot be set9 tled under section 178(a) shall be disposed of exclusively

10 in accordance with Article II of Title Four. Arbitration

11 awards rendered pursuant to this subsection shall be paid

12 out of funds under 31 U.S.C. 1304.

13 (c) The Government of the United States and the

14 Government of the Federated States of Micronesia shall,

15 in the separate agreement referred to in section 231, pro16 vide for:

17 (1) the administrative settlement of claims re18 ferred to in section 178(a), including designation of

19 local agents in each State of the Federated States

20 of Micronesia; such agents to be empowered to ac21 cept, investigate and settle such claims, in a timely

22 manner, as provided in such separate agreements;

23 and

24 (2) arbitration, referred to in section 178(b), in

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1 ant, in the event a claim is not otherwise settled

2 pursuant to section 178(a).

3 (d) The provisions of section 174(d) shall not apply

4 to claims covered by this section.

5 (e) Except as otherwise explicitly provided by law of

6 the United States, neither the Government of the United

7 States, its instrumentalities, nor any person acting on be8 half of the Government of the United States, shall be

9 named a party in any action based on, or arising out of,

10 the activity or activities of a recipient of any grant or other

11 assistance provided by the Government of the United

12 States (or the activity or activities of the recipient’s agen13 cy or any other person or entity acting on behalf of the

14 recipient).

15 Section 179

16 (a) The courts of the Federated States of Micronesia

17 shall not exercise criminal jurisdiction over the Govern18 ment of the United States, or its instrumentalities.

19 (b) The courts of the Federated States of Micronesia

20 shall not exercise criminal jurisdiction over any person if

21 the Government of the United States provides notification

22 to the Government of the Federated States of Micronesia

23 that such person was acting on behalf of the Government

24 of the United States, for actions taken in furtherance of

25 section 221 or 224 of this amended Compact, or any other


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1 provision of law authorizing financial, program, or service

2 assistance to the Federated States of Micronesia.

3 TITLE TWO

4 ECONOMIC RELATIONS

5 Article I

6 Grant Assistance

7 Section 211 - Sector Grants

8 (a) In order to assist the Government of the Fed9 erated States of Micronesia in its efforts to promote the

10 economic advancement, budgetary self-reliance, and eco11 nomic self-sufficiency of its people, and in recognition of

12 the special relationship that exists between the Federated

13 States of Micronesia and the United States, the Govern14 ment of the United States shall provide assistance on a

15 sector grant basis for a period of twenty years in the

16 amounts set forth in section 216, commencing on the ef17 fective date of this Compact, as amended. Such grants

18 shall be used for assistance in the sectors of education,

19 health care, private sector development, the environment,

20 public sector capacity building, and public infrastructure,

21 or for other sectors as mutually agreed, with priorities in

22 the education and health care sectors. For each year such

23 sector grant assistance is made available, the proposed di24 vision of this amount among these sectors shall be certified

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1 ment of the Federated States of Micronesia and shall be

2 subject to the concurrence of the Government of the

3 United States. In such case, the Government of the United

4 States shall disburse the agreed upon amounts and mon5 itor the use of such sector grants in accordance with the

6 provisions of this Article and the Agreement Concerning

7 Procedures for the Implementation of United States Eco8 nomic Assistance Provided in the Compact, as Amended,

9 of Free Association Between the Government of the

10 United States of America and the Government of the Fed11 erated States of Micronesia (‘‘Fiscal Procedures Agree12 ment’’) which shall come into effect simultaneously with

13 this Compact, as amended. The provision of any United

14 States assistance under the Compact, as amended, the

15 Fiscal Procedures Agreement, the Trust Fund Agreement,

16 or any other subsidiary agreement to the Compact, as

17 amended, shall constitute ‘‘a particular distribution . . .

18 required by the terms or special nature of the assistance’’

19 for purposes of Article XII, section 1(b) of the Constitu20 tion of the Federated States of Micronesia.

21 (1) EDUCATION.—United States grant assist22 ance shall be made available in accordance with the

23 plan described in subsection (c) of this section to

24 support and improve the educational system of the

25 Federated States of Micronesia and develop the


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1 human, financial, and material resources necessary

2 for the Government of the Federated States of Mi3 cronesia to perform these services. Emphasis should

4 be placed on advancing a quality basic education

5 system.

6 (2) HEALTH.—United States grant assistance

7 shall be made available in accordance with the plan

8 described in subsection (c) of this section to support

9 and improve the delivery of preventive, curative and

10 environmental care and develop the human, finan11 cial, and material resources necessary for the Gov12 ernment of the Federated States of Micronesia to

13 perform these services.

14 (3) PRIVATE SECTOR DEVELOPMENT.—United

15 States grant assistance shall be made available in

16 accordance with the plan described in subsection (c)

17 of this section to support the efforts of the Govern18 ment of the Federated States of Micronesia to at19 tract foreign investment and increase indigenous

20 business activity by vitalizing the commercial envi21 ronment, ensuring fair and equitable application of

22 the law, promoting adherence to core labor stand23 ards, and maintaining progress toward privatization

24 of state-owned and partially state-owned enterprises,

25 and engaging in other reforms.


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1 (4) CAPACITY BUILDING IN THE PUBLIC SEC2 TOR.—United States grant assistance shall be made

3 available in accordance with the plan described in

4 subsection (c) of this section to support the efforts

5 of the Government of the Federated States of Micro6 nesia to build effective, accountable and transparent

7 national, state, and local government and other pub8 lic sector institutions and systems.

9 (5) ENVIRONMENT.—United States grant as10 sistance shall be made available in accordance with

11 the plan described in subsection (c) of this section

12 to increase environmental protection; conserve and

13 achieve sustainable use of natural resources; and en14 gage in environmental infrastructure planning, de15 sign construction and operation.

16 (6) PUBLIC INFRASTRUCTURE.—

17 (i) U.S. annual grant assistance shall be

18 made available in accordance with a list of spe19 cific projects included in the plan described in

20 subsection (c) of this section to assist the Gov21 ernment of the Federated States of Micronesia

22 in its efforts to provide adequate public infra23 structure.

24 (ii) INFRASTRUCTURE AND MAINTENANCE

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1 frastructure grant made available under para2 graph (i) of this subsection shall be set aside,

3 with an equal contribution from the Govern4 ment of the Federated States of Micronesia, as

5 a contribution to an Infrastructure Maintenance

6 Fund (IMF). Administration of the Infrastruc7 ture Maintenance Fund shall be governed by

8 the Fiscal Procedures Agreement.

9 (b) HUMANITARIAN ASSISTANCE.—Federated States

10 of Micronesia Program. In recognition of the special devel11 opment needs of the Federated States of Micronesia, the

12 Government of the United States shall make available to

13 the Government of the Federated States of Micronesia, on

14 its request and to be deducted from the grant amount

15 made available under subsection (a) of this section, a Hu16 manitarian Assistance - Federated States of Micronesia

17 (‘‘HAFSM’’) Program with emphasis on health, edu18 cation, and infrastructure (including transportation),

19 projects. The terms and conditions of the HAFSM shall

20 be set forth in the Agreement Regarding the Military Use

21 and Operating Rights of the Government of the United

22 States in the Government of the Federated States of Mi23 cronesia Concluded Pursuant to Sections 321 and 323 of

24 the Compact of Free Association, as Amended which shall


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1 come into effect simultaneously with the amendments to

2 this Compact.

3 (c) DEVELOPMENT PLAN.—The Government of the

4 Federated States of Micronesia shall prepare and main5 tain an official overall development plan. The plan shall

6 be strategic in nature, shall be continuously reviewed and

7 updated through the annual budget process, and shall

8 make projections on a multi-year rolling basis. Each of

9 the sectors named in subsection (a) of this section, or

10 other sectors as mutually agreed, shall be accorded specific

11 treatment in the plan. Insofar as grants funds are in12 volved, the plan shall be subject to the concurrence of the

13 Government of the United States.

14 (d) DISASTER ASSISTANCE EMERGENCY FUND.—An

15 amount of two hundred thousand dollars ($200,000) shall

16 be provided annually, with an equal contribution from the

17 Government of the Federated States of Micronesia, as a

18 contribution to a ‘‘Disaster Assistance Emergency Fund

19 (DAEF).’’ Any funds from the DAEF may be used only

20 for assistance and rehabilitation resulting from disasters

21 and emergencies. The funds will be accessed upon declara22 tion by the Government of the Federated States of Micro23 nesia, with the concurrence of the United States Chief of

24 Mission to the Federated States of Micronesia. The AdVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00117 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ministration of the DAEF shall be governed by the Fiscal

2 Procedures Agreement.

3 Section 212 - Accountability.

4 (a) Regulations and policies normally applicable to

5 United States financial assistance to its state and local

6 governments, as reflected in the Fiscal Procedures Agree7 ment, shall apply to each sector grant described in section

8 211, and to grants administered under section 221 below,

9 except as modified in the separate agreements referred to

10 in section 231 of this Compact, as amended, or by United

11 States law. The Government of the United States, after

12 annual consultations with the Federated States of Micro13 nesia, may attach reasonable terms and conditions, includ14 ing annual performance indicators that are necessary to

15 ensure effective use of United States assistance and rea16 sonable progress toward achieving program objectives. The

17 Government of the United States may seek appropriate

18 remedies for noncompliance with the terms and conditions

19 attached to the assistance, or for failure to comply with

20 section 234, including withholding assistance.

21 (b) The Government of the United States shall, for

22 each fiscal year of the twenty years during which assist23 ance is to be provided on a sector grant basis under sec24 tion 211, grant the Government of the Federated States

25 of Micronesia an amount equal to the lesser of (i) one half


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1 of the reasonable, properly documented cost incurred dur2 ing each fiscal year to conduct the annual audit required

3 under Article VIII (2) of the Fiscal Procedures Agreement

4 or (ii) $500,000. Such amount will not be adjusted for

5 inflation under section 217 or otherwise.

6 Section 213 - Joint Economic Management Committee

7 The Governments of the United States and the Fed8 erated States of Micronesia shall establish a Joint Eco9 nomic Management Committee, composed of a U.S. chair,

10 two other members from the Government of the United

11 States and two members from the Government of the Fed12 erated States of Micronesia. The Joint Economic Manage13 ment Committee shall meet at least once each year to re14 view the audits and reports required under this Title,

15 evaluate the progress made by the Federated States of Mi16 cronesia in meeting the objectives identified in its plan de17 scribed in subsection (c) of section 211, with particular

18 focus on those parts of the plan dealing with the sectors

19 identified in section subsection (a) of section 211, identify

20 problems encountered, and recommend ways to increase

21 the effectiveness of U.S. assistance made available under

22 this Title. The establishment and operations of the Joint

23 Economic Management Committee shall be governed by

24 the Fiscal Procedures Agreement.

25 Section 214 - Annual Report


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1 The Government of the Federated States of Micro2 nesia shall report annually to the President of the United

3 States on the use of United States sector grant assistance

4 and other assistance and progress in meeting mutually

5 agreed program and economic goals. The Joint Economic

6 Management Committee shall review and comment on the

7 report and make appropriate recommendations based

8 thereon.

9 Section 215 - Trust Fund

10 (a) The United States shall contribute annually for

11 twenty years from the effective date of this Compact, as

12 amended, in the amounts set forth in section 216 into a

13 Trust Fund established in accordance with the Agreement

14 Between the Government of the United States of America

15 and the Government of the Federated States of Micronesia

16 Implementing Section 215 and Section 216 of the Com17 pact, as Amended, Regarding a Trust Fund (‘‘Trust Fund

18 Agreement’’). Upon termination of the annual financial

19 assistance under section 211, the proceeds of the fund

20 shall thereafter be used for the purposes described in sec21 tion 211 or as otherwise mutually agreed.

22 (b) The United States contribution into the Trust

23 Fund described in subsection(a) of this section is condi24 tioned on the Government of the Federated States of Mi25 cronesia contributing to the Trust Fund at least $30 milVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00120 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 lion, prior to September 30, 2004. Any funds received by

2 the Federated States of Micronesia under section 111 (d)

3 of Public Law 99–239 (January 14, 1986), or successor

4 provisions, would be contributed to the Trust Fund as a

5 Federated States of Micronesia contribution.

6 (c) The terms regarding the investment and manage7 ment of funds and use of the income of the Trust Fund

8 shall be set forth in the separate Trust Fund Agreement

9 described in subsection (a) of this section. Funds derived

10 from United States investment shall not be subject to Fed11 eral or state taxes in the United States or the Federated

12 States of Micronesia. The Trust Fund Agreement shall

13 also provide for annual reports to the Government of the

14 United States and to the Government of the Federated

15 States of Micronesia. The Trust Fund Agreement shall

16 provide for appropriate distributions of trust fund pro17 ceeds to the Federated States of Micronesia and for appro18 priate remedies for the failure of the Federated States of

19 Micronesia to use income of the Trust Fund for the an20 nual grant purposes set forth in section 211. These rem21 edies may include the return to the United States of the

22 present market value of its contributions to the Trust

23 Fund and the present market value of any undistributed

24 income on the contributions of the United States. If this

25 Compact, as amended, is terminated, the provisions of secVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00121 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 tions 451 through 453 of this Compact, as amended, shall

2 govern treatment of any U.S. contributions to the Trust

3 Fund or accrued interest thereon.

4 Section 216 - Sector Grant Funding and Trust Fund Con5 tributions

6 The funds described in sections 211, 212(b) and 215

7 shall be made available as follows: [In millions of dollars]

Fiscal year Annual Grants

Section 211

Audit Grant

Section 212(b)

(amount up to)

Trust Fund

Section 215 Total

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

8 Section 217 - Inflation Adjustment

9 Except for the amounts provided for audits under

10 section 212(b), the amounts stated in this Title shall be

11 adjusted for each United States Fiscal Year by the percent

12 that equals two-thirds of the percent change in the United

13 States Gross Domestic Product Implicit Price Deflator, or

14 5 percent, whichever is less in any one year, using the

15 beginning of Fiscal Year 2004 as a base.

16 Section 218 - Carry-Over of Unused Funds


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1 If in any year the funds made available by the Gov2 ernment of the United States for that year pursuant to

3 this Article are not completely obligated by the Govern4 ment of the Federated States of Micronesia, the unobli5 gated balances shall remain available in addition to the

6 funds to be provided in subsequent years.

7 Article II

8 Services and Program Assistance

9 Section 221

10 (a) SERVICES.—The Government of the United

11 States shall make available to the Federated States of Mi12 cronesia, in accordance with and to the extent provided

13 in the Federal Programs and Services Agreement referred

14 to in section 231, the services and related programs of:

15 (1) the United States Weather Service;

16 (2) the United States Postal Service;

17 (3) the United States Federal Aviation Admin18 istration;

19 (4) the United States Department of Transpor20 tation;

21 (5) the Federal Deposit Insurance Corporation

22 (for the benefit only of the Bank of the Federated

23 States of Micronesia), and


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1 (6) the Department of Homeland Security, and

2 the United States Agency for International Develop3 ment, Office of Foreign Disaster Assistance.

4 Upon the effective date of this Compact, as amended, the

5 United States Departments and Agencies named or having

6 responsibility to provide these services and related pro7 grams shall have the authority to implement the relevant

8 provisions of the Federal Programs and Services Agree9 ment referred to in section 231.

10 (b) PROGRAMS.—

11 (1) With the exception of the services and pro12 grams covered by subsection (a) of this section, and

13 unless the Congress of the United States provides

14 otherwise, the Government of the United States

15 shall make available to the Federated States of Mi16 cronesia the services and programs that were avail17 able to the Federated States of Micronesia on the ef18 fective date of this Compact, as amended, to the ex19 tent that such services and programs continue to be

20 available to State and local governments of the

21 United States. As set forth in the Fiscal Procedures

22 Agreement, funds provided under subsection (a) of

23 section 211 will be considered to be local revenues

24 of the Government of the Federated States of MicroVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00124 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 nesia when used as the local share required to obtain

2 Federal programs and services.

3 (2) Unless provided otherwise by U.S. law, the

4 services and programs described in paragraph (1) of

5 this subsection shall be extended in accordance with

6 the terms of the Federal Programs and Services

7 Agreement referred to in section 231.

8 (c) The Government of the United States shall have

9 and exercise such authority as is necessary to carry out

10 its responsibilities under this Title and the separate agree11 ments referred to in amended section 231, including the

12 authority to monitor and administer all service and pro13 gram assistance provided by the United States to the Fed14 erated States of Micronesia. The Federal Programs and

15 Services Agreement referred to in amended section 231

16 shall also set forth the extent to which services and pro17 grams shall be provided to the Federated States of Micro18 nesia.

19 (d) Except as provided elsewhere in this Compact, as

20 amended, under any separate agreement entered into

21 under this Compact, as amended, or otherwise under U.S.

22 law, all Federal domestic programs extended to or oper23 ating in the Federated States of Micronesia shall be sub24 ject to all applicable criteria, standards, reporting require25 ments, auditing procedures, and other rules and regulaVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00125 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 tions applicable to such programs and services when oper2 ating in the United States.

3 (e) The Government of the United States shall make

4 available to the Federated States of Micronesia alternate

5 energy development projects, studies, and conservation

6 measures to the extent provided for the Freely Associated

7 States in the laws of the United States.

8 Section 222

9 The Government of the United States and the Gov10 ernment of the Federated States of Micronesia may agree

11 from time to time to extend to the Federated States of

12 Micronesia additional United States grant assistance,

13 services and programs, as provided under the laws of the

14 United States. Unless inconsistent with such laws, or oth15 erwise specifically precluded by the Government of the

16 United States at the time such additional grant assistance,

17 services, or programs are extended, the Federal Programs

18 and Services Agreement referred to section 231 shall apply

19 to any such assistance, services or programs.

20 Section 223

21 The Government of the Federated States of Micro22 nesia shall make available to the Government of the

23 United States at no cost such land as may be necessary

24 for the operations of the services and programs provided

25 pursuant to this Article, and such facilities as are provided


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1 by the Government of the Federated States of Micronesia

2 at no cost to the Government of the United States as of

3 the effective date of this Compact, as amended, or as may

4 be mutually agreed thereafter.

5 Section 224

6 The Government of the Federated States of Micro7 nesia may request, from time to time, technical assistance

8 from the Federal agencies and institutions of the Govern9 ment of the United States, which are authorized to grant

10 such technical assistance in accordance with its laws. If

11 technical assistance is granted pursuant to such a request,

12 the Government of the United States shall provide the

13 technical assistance in a manner which gives priority con14 sideration to the Federated States of Micronesia over

15 other recipients not a part of the United States, its terri16 tories or possessions, and equivalent consideration to the

17 Federated States of Micronesia with respect to other

18 states in Free Association with the United States. Such

19 assistance shall be made available on a reimbursable or

20 non-reimbursable basis to the extent provided by United

21 States law.

22 Article III

23 Administrative Provisions

24 Section 231


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1 The specific nature, extent and contractual arrange2 ments of the services and programs provided for in section

3 221 of this Compact, as amended, as well as the legal sta4 tus of agencies of the Government of the United States,

5 their civilian employees and contractors, and the depend6 ents of such personnel while present in the Federated

7 States of Micronesia, and other arrangements in connec8 tion with the assistance, services, or programs furnished

9 by the Government of the United States, are set forth in

10 a Federal Programs and Services Agreement which shall

11 come into effect simultaneously with this Compact, as

12 amended.

13 Section 232

14 The Government of the United States, in consultation

15 with the Government of the Federated States of Micro16 nesia, shall determine and implement procedures for the

17 periodic audit of all grants and other assistance made

18 under Article I of this Title and of all funds expended for

19 the services and programs provided under Article II of this

20 Title. Further, in accordance with the Fiscal Procedures

21 Agreement described in subsection (a) of section 211, the

22 Comptroller General of the United States shall have such

23 powers and authorities as described in sections 102 (c)

24 and 110 (c) of Public Law 99–239, 99 Stat. 1777–78,

25 and 99 Stat. 1799 (January 14, 1986).


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1 Section 233

2 Approval of this Compact, as amended, by the Gov3 ernment of the United States, in accordance with its con4 stitutional processes, shall constitute a pledge by the

5 United States that the sums and amounts specified as sec6 tor grants in section 211 of this Compact, as amended,

7 shall be appropriated and paid to the Federated States

8 of Micronesia for such period as those provisions of this

9 Compact, as amended, remain in force, subject to the

10 terms and conditions of this Title and related subsidiary

11 agreements.

12 Section 234

13 The Government of the Federated States of Micro14 nesia pledges to cooperate with, permit, and assist if rea15 sonably requested, designated and authorized representa16 tives of the Government of the United States charged with

17 investigating whether Compact funds, or any other assist18 ance authorized under this Compact, as amended, have,

19 or are being, used for purposes other than those set forth

20 in this Compact, as amended, or its subsidiary agree21 ments. In carrying out this investigative authority, such

22 United States Government representatives may request

23 that the Government of the Federated States of Micro24 nesia subpoena documents and records and compel testi25 mony in accordance with the laws and Constitution of the


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1 Federated States of Micronesia. Such assistance by the

2 Government of the Federated States of Micronesia to the

3 Government of the United States shall not be unreason4 ably withheld. The obligation of the Government of the

5 Federated States of Micronesia to fulfill its pledge herein

6 is a condition to its receiving payment of such funds or

7 other assistance authorized under this Compact, as

8 amended. The Government of the United States shall pay

9 any reasonable costs for extraordinary services executed

10 by the Government of the Federated States of Micronesia

11 in carrying out the provisions of this section.

12 Article IV

13 Trade

14 Section 241

15 The Federated States of Micronesia is not included

16 in the customs territory of the United States.

17 Section 242

18 The President shall proclaim the following tariff

19 treatment for articles imported from the Federated States

20 of Micronesia which shall apply during the period of effec21 tiveness of this title:

22 (a) Unless otherwise excluded, articles imported

23 from the Federated States of Micronesia, subject to

24 the limitations imposed under section 503(b) of title


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1 V of the Trade Act of 1974 (19 U.S.C. 2463(b)),

2 shall be exempt from duty.

3 (b) Only tuna in airtight containers provided

4 for in heading 1604.14.22 of the Harmonized Tariff

5 Schedule of the United States that is imported from

6 the Federated States of Micronesia and the Republic

7 of the Marshall Islands during any calendar year not

8 to exceed 10 percent of apparent United States con9 sumption of tuna in airtight containers during the

10 immediately preceding calendar year, as reported by

11 the National Marine Fisheries Service, shall be ex12 empt from duty; but the quantity of tuna given

13 duty-free treatment under this paragraph for any

14 calendar year shall be counted against the aggre15 gated quantity of tuna in airtight containers that is

16 dutiable under rate column numbered 1 of such

17 heading 1604.14.22 for that calendar year.

18 (c) The duty-free treatment provided under

19 subsection (a) shall not apply to—

20 (1) watches, clocks, and timing apparatus

21 provided for in Chapter 91, excluding heading

22 9113, of the Harmonized Tariff Schedule of the

23 United States;


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1 (2) buttons (whether finished or not fin2 ished) provided for in items 9606.21.40 and

3 9606.29.20 of such Schedule;

4 (3) textile and apparel articles which are

5 subject to textile agreements; and

6 (4) footwear, handbags, luggage, flat

7 goods, work gloves, and leather wearing apparel

8 which were not eligible articles for purposes of

9 title V of the Trade Act of 1974 (19 U.S.C.

10 2461, et seq.) on April 1, 1984.

11 (d) If the cost or value of materials produced

12 in the customs territory of the United States is in13 cluded with respect to an eligible article which is a

14 product of the Federated States of Micronesia, an

15 amount not to exceed 15 percent of the appraised

16 value of the article at the time it is entered that is

17 attributable to such United States cost or value may

18 be applied for duty assessment purposes toward de19 termining the percentage referred to in section

20 503(a)(2) of title V of the Trade Act of 1974.

21 Section 243

22 Articles imported from the Federated States of Mi23 cronesia which are not exempt from duty under sub24 sections (a), (b), (c), and (d) of section 242 shall be sub25 ject to the rates of duty set forth in column numbered


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1 1-general of the Harmonized Tariff Schedule of the

2 United States (HTSUS).

3 Section 244

4 (a) All products of the United States imported into

5 the Federated States of Micronesia shall receive treatment

6 no less favorable than that accorded like products of any

7 foreign country with respect to customs duties or charges

8 of a similar nature and with respect to laws and regula9 tions relating to importation, exportation, taxation, sale,

10 distribution, storage or use.

11 (b) The provisions of subsection (a) shall not apply

12 to advantages accorded by the Federated States of Micro13 nesia by virtue of their full membership in the Pacific Is14 land Countries Trade Agreement (PICTA), done on Au15 gust 18, 2001, to those governments listed in Article 26

16 of PICTA, as of the date the Compact, as amended, is

17 signed.

18 (c) Prior to entering into consultations on, or con19 cluding, a free trade agreement with governments not list20 ed in Article 26 of PICTA, the Federated States of Micro21 nesia shall consult with the United States regarding

22 whether or how subsection (a) of section 244 shall be ap23 plied.


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1 Article V

2 Finance and Taxation

3 Section 251

4 The currency of the United States is the official cir5 culating legal tender of the Federated States of Micro6 nesia. Should the Government of the Federated States of

7 Micronesia act to institute another currency, the terms of

8 an appropriate currency transitional period shall be as

9 agreed with the Government of the United States.

10 Section 252

11 The Government of the Federated States of Micro12 nesia may, with respect to United States persons, tax in13 come derived from sources within its respective jurisdic14 tion, property situated therein, including transfers of such

15 property by gift or at death, and products consumed there16 in, in such manner as the Government of the Federated

17 States of Micronesia deems appropriate. The determina18 tion of the source of any income, or the situs of any prop19 erty, shall for purposes of this Compact be made according

20 to the United States Internal Revenue Code.

21 Section 253

22 A citizen of the Federated States of Micronesia, dom23 iciled therein, shall be exempt from estate, gift, and gen24 eration-skipping transfer taxes imposed by the Govern25 ment of the United States, provided that such citizen of


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1 the Federated States of Micronesia is neither a citizen nor

2 a resident of the United States.

3 Section 254

4 (a) In determining any income tax imposed by the

5 Government of the Federated States of Micronesia, the

6 Government of the Federated States of Micronesia shall

7 have authority to impose tax upon income derived by a

8 resident of the Federated States of Micronesia from

9 sources without the Federated States of Micronesia, in the

10 same manner and to the same extent as the Government

11 of the Federated States of Micronesia imposes tax upon

12 income derived from within its own jurisdiction. If the

13 Government of the Federated States of Micronesia exer14 cises such authority as provided in this subsection, any

15 individual resident of the Federated States of Micronesia

16 who is subject to tax by the Government of the United

17 States on income which is also taxed by the Government

18 of the Federated States of Micronesia shall be relieved of

19 liability to the Government of the United States for the

20 tax which, but for this subsection, would otherwise be im21 posed by the Government of the United States on such

22 income. However, the relief from liability to the United

23 States Government referred to in the preceding sentence

24 means only relief in the form of the foreign tax credit (or

25 deduction in lieu thereof) available with respect to the inVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00135 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 come taxes of a possession of the United States, and relief

2 in the form of the exclusion under section 911 of the Inter3 nal Revenue Code of 1986. For purposes of this section,

4 the term ‘‘resident of the Federated States of Micronesia’’

5 shall be deemed to include any person who was physically

6 present in the Federated States of Micronesia for a period

7 of 183 or more days during any taxable year.

8 (b) If the Government of the Federated States of Mi9 cronesia subjects income to taxation substantially similar

10 to that imposed by the Trust Territory Code in effect on

11 January 1, 1980, such Government shall be deemed to

12 have exercised the authority described in section 254(a).

13 Section 255

14 For purposes of section 274(h)(3)(A) of the United

15 States Internal Revenue Code of 1986, the term ‘‘North

16 American Area’’ shall include the Federated States of Mi17 cronesia.

18 TITLE THREE

19 SECURITY AND DEFENSE RELATIONS

20 Article I

21 Authority and Responsibility

22 Section 311

23 (a) The Government of the United States has full au24 thority and responsibility for security and defense matters

25 in or relating to the Federated States of Micronesia.


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1 (b) This authority and responsibility includes:

2 (1) the obligation to defend the Federated

3 States of Micronesia and its people from attack or

4 threats thereof as the United States and its citizens

5 are defended;

6 (2) the option to foreclose access to or use of

7 the Federated States of Micronesia by military per8 sonnel or for the military purposes of any third

9 country; and

10 (3) the option to establish and use military

11 areas and facilities in the Federated States of Micro12 nesia, subject to the terms of the separate agree13 ments referred to in sections 321 and 323.

14 (c) The Government of the United States confirms

15 that it shall act in accordance with the principles of inter16 national law and the Charter of the United Nations in the

17 exercise of this authority and responsibility.

18 Section 312

19 Subject to the terms of any agreements negotiated

20 in accordance with sections 321 and 323, the Government

21 of the United States may conduct within the lands, waters

22 and airspace of the Federated States of Micronesia the

23 activities and operations necessary for the exercise of its

24 authority and responsibility under this Title.

25 Section 313


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133

1 (a) The Government of the Federated States of Mi2 cronesia shall refrain from actions that the Government

3 of the United States determines, after appropriate con4 sultation with that Government, to be incompatible with

5 its authority and responsibility for security and defense

6 matters in or relating to the Federated States of Micro7 nesia.

8 (b) The consultations referred to in this section shall

9 be conducted expeditiously at senior levels of the two Gov10 ernments, and the subsequent determination by the Gov11 ernment of the United States referred to in this section

12 shall be made only at senior interagency levels of the Gov13 ernment of the United States.

14 (c) The Government of the Federated States of Mi15 cronesia shall be afforded, on an expeditious basis, an op16 portunity to raise its concerns with the United States Sec17 retary of State personally and the United States Secretary

18 of Defense personally regarding any determination made

19 in accordance with this section.

20 Section 314

21 (a) Unless otherwise agreed, the Government of the

22 United States shall not, in the Federated States of Micro23 nesia:


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1 (1) test by detonation or dispose of any nuclear

2 weapon, nor test, dispose of, or discharge any toxic

3 chemical or biological weapon; or

4 (2) test, dispose of, or discharge any other ra5 dioactive, toxic chemical or biological materials in an

6 amount or manner which would be hazardous to

7 public health or safety.

8 (b) Unless otherwise agreed, other than for transit

9 or overflight purposes or during time of a national emer10 gency declared by the President of the United States, a

11 state of war declared by the Congress of the United States

12 or as necessary to defend against an actual or impending

13 armed attack on the United States, the Federated States

14 of Micronesia or the Republic of the Marshall Islands, the

15 Government of the United States shall not store in the

16 Federated States of Micronesia or the Republic of the

17 Marshall Islands any toxic chemical weapon, nor any ra18 dioactive materials nor any toxic chemical materials in19 tended for weapons use.

20 (c) Radioactive, toxic chemical, or biological materials

21 not intended for weapons use shall not be affected by sec22 tion 314(b).

23 (d) No material or substance referred to in this sec24 tion shall be stored in the Federated States of Micronesia

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1 ardous to public health or safety. In determining what

2 shall be an amount or manner which would be hazardous

3 to public health or safety under this section, the Govern4 ment of the United States shall comply with any applicable

5 mutual agreement, international guidelines accepted by

6 the Government of the United States, and the laws of the

7 United States and their implementing regulations.

8 (e) Any exercise of the exemption authority set forth

9 in section 161(e) shall have no effect on the obligations

10 of the Government of the United States under this section

11 or on the application of this subsection.

12 (f) The provisions of this section shall apply in the

13 areas in which the Government of the Federated States

14 of Micronesia exercises jurisdiction over the living re15 sources of the seabed, subsoil or water column adjacent

16 to its coasts.

17 Section 315

18 The Government of the United States may invite

19 members of the armed forces of other countries to use

20 military areas and facilities in the Federated States of Mi21 cronesia, in conjunction with and under the control of

22 United States Armed Forces. Use by units of the armed

23 forces of other countries of such military areas and facili24 ties, other than for transit and overflight purposes, shall

25 be subject to consultation with and, in the case of major


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1 units, approval of the Government of the Federated States

2 of Micronesia.

3 Section 316

4 The authority and responsibility of the Government

5 of the United States under this Title may not be trans6 ferred or otherwise assigned.

7 Article II

8 Defense Facilities and Operating Rights

9 Section 321

10 (a) Specific arrangements for the establishment and

11 use by the Government of the United States of military

12 areas and facilities in the Federated States of Micronesia

13 are set forth in separate agreements, which shall remain

14 in effect in accordance with the terms of such agreements.

15 (b) If, in the exercise of its authority and responsi16 bility under this Title, the Government of the United

17 States requires the use of areas within the Federated

18 States of Micronesia in addition to those for which specific

19 arrangements are concluded pursuant to section 321(a),

20 it may request the Government of the Federated States

21 of Micronesia to satisfy those requirements through leases

22 or other arrangements. The Government of the Federated

23 States of Micronesia shall sympathetically consider any

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1 cuss it with and provide a prompt response to the Govern2 ment of the United States.

3 (c) The Government of the United States recognizes

4 and respects the scarcity and special importance of land

5 in the Federated States of Micronesia. In making any re6 quests pursuant to section 321(b), the Government of the

7 United States shall follow the policy of requesting the min8 imum area necessary to accomplish the required security

9 and defense purpose, of requesting only the minimum in10 terest in real property necessary to support such purpose,

11 and of requesting first to satisfy its requirement through

12 public real property, where available, rather than through

13 private real property.

14 Section 322

15 The Government of the United States shall provide

16 and maintain fixed and floating aids to navigation in the

17 Federated States of Micronesia at least to the extent nec18 essary for the exercise of its authority and responsibility

19 under this Title.

20 Section 323

21 The military operating rights of the Government of

22 the United States and the legal status and contractual ar23 rangements of the United States Armed Forces, their

24 members, and associated civilians, while present in the

25 Federated States of Micronesia are set forth in separate


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1 agreements, which shall remain in effect in accordance

2 with the terms of such agreements.

3 Article III

4 Defense Treaties and International Security Agreements

5 Section 331

6 Subject to the terms of this Compact, as amended,

7 and its related agreements, the Government of the United

8 States, exclusively, has assumed and enjoys, as to the Fed9 erated States of Micronesia, all obligations, responsibil10 ities, rights and benefits of:

11 (a) Any defense treaty or other international security

12 agreement applied by the Government of the United

13 States as Administering Authority of the Trust Territory

14 of the Pacific Islands as of November 2, 1986.

15 (b) Any defense treaty or other international security

16 agreement to which the Government of the United States

17 is or may become a party which it determines to be appli18 cable in the Federated States of Micronesia. Such a deter19 mination by the Government of the United States shall

20 be preceded by appropriate consultation with the Govern21 ment of the Federated States of Micronesia.

22 Article IV

23 Service in Armed Forces of the United States

24 Section 341


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1 Any person entitled to the privileges set forth in Sec2 tion 141 (with the exception of any person described in

3 section 141(a)(5) who is not a citizen of the Federated

4 States of Micronesia) shall be eligible to volunteer for serv5 ice in the Armed Forces of the United States, but shall

6 not be subject to involuntary induction into military serv7 ice of the United States as long as such person has resided

8 in the United States for a period of less than one year,

9 provided that no time shall count towards this one year

10 while a person admitted to the United States under the

11 Compact, or the Compact, as amended, is engaged in full12 time study in the United States. Any person described in

13 section 141(a)(5) who is not a citizen of the Federated

14 States of Micronesia shall be subject to United States laws

15 relating to selective service.

16 Section 342

17 The Government of the United States shall have en18 rolled, at any one time, at least one qualified student from

19 the Federated States of Micronesia, as may be nominated

20 by the Government of the Federated States of Micronesia,

21 in each of:

22 (a) The United States Coast Guard Academy pursu23 ant to 14 U.S.C. 195.

24 (b) The United States Merchant Marine Academy

25 pursuant to 46 U.S.C. 1295(b)(6), provided that the proVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00144 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 visions of 46 U.S.C. 1295b(b)(6)(C) shall not apply to the

2 enrollment of students pursuant to section 342(b) of this

3 Compact, as amended.

4 Article V

5 General Provisions

6 Section 351

7 (a) The Government of the United States and the

8 Government of the Federated States of Micronesia shall

9 continue to maintain a Joint Committee empowered to

10 consider disputes arising under the implementation of this

11 Title and its related agreements.

12 (b) The membership of the Joint Committee shall

13 comprise selected senior officials of the two Governments.

14 The senior United States military commander in the Pa15 cific area shall be the senior United States member of the

16 Joint Committee. For the meetings of the Joint Com17 mittee, each of the two Governments may designate addi18 tional or alternate representatives as appropriate for the

19 subject matter under consideration.

20 (c) Unless otherwise mutually agreed, the Joint Com21 mittee shall meet annually at a time and place to be des22 ignated, after appropriate consultation, by the Govern23 ment of the United States. The Joint Committee also shall

24 meet promptly upon request of either of its members. The

25 Joint Committee shall follow such procedures, including


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1 the establishment of functional subcommittees, as the

2 members may from time to time agree. Upon notification

3 by the Government of the United States, the Joint Com4 mittee of the United States and the Federated States of

5 Micronesia shall meet promptly in a combined session with

6 the Joint Committee established and maintained by the

7 Government of the United States and the Republic of the

8 Marshall Islands to consider matters within the jurisdic9 tion of the two Joint Committees.

10 (d) Unresolved issues in the Joint Committee shall

11 be referred to the Governments for resolution, and the

12 Government of the Federated States of Micronesia shall

13 be afforded, on an expeditious basis, an opportunity to

14 raise its concerns with the United States Secretary of De15 fense personally regarding any unresolved issue which

16 threatens its continued association with the Government

17 of the United States.

18 Section 352

19 In the exercise of its authority and responsibility

20 under Title Three, the Government of the United States

21 shall accord due respect to the authority and responsibility

22 of the Government of the Federated States of Micronesia

23 under Titles One, Two and Four and to the responsibility

24 of the Government of the Federated States of Micronesia

25 to assure the well-being of its people.


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1 Section 353

2 (a) The Government of the United States shall not

3 include the Government of the Federated States of Micro4 nesia as a named party to a formal declaration of war,

5 without that Government’s consent.

6 (b) Absent such consent, this Compact, as amended,

7 is without prejudice, on the ground of belligerence or the

8 existence of a state of war, to any claims for damages

9 which are advanced by the citizens, nationals or Govern10 ment of the Federated States of Micronesia, which arise

11 out of armed conflict subsequent to November 3, 1986,

12 and which are:

13 (1) petitions to the Government of the United

14 States for redress; or

15 (2) claims in any manner against the govern16 ment, citizens, nationals or entities of any third

17 country.

18 (c) Petitions under section 353(b)(1) shall be treated

19 as if they were made by citizens of the United States.

20 Section 354

21 (a) The Government of the United States and the

22 Government of the Federated States of Micronesia are

23 jointly committed to continue their security and defense

24 relations, as set forth in this Title. Accordingly, it is the

25 intention of the two countries that the provisions of this


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1 Title shall remain binding as long as this Compact, as

2 amended, remains in effect, and thereafter as mutually

3 agreed, unless earlier terminated by mutual agreement

4 pursuant to section 441, or amended pursuant to Article

5 III of Title Four. If at any time the Government of the

6 United States, or the Government of the Federated States

7 of Micronesia, acting unilaterally, terminates this Title,

8 such unilateral termination shall be considered to be ter9 mination of the entire Compact, in which case the provi10 sions of section 442 and 452 (in the case of termination

11 by the Government of the United States) or sections 443

12 and 453 (in the case of termination by the Government

13 of the Federated States of Micronesia), with the exception

14 of paragraph (3) of subsection (a) of section 452 or para15 graph (3) of subsection (a) of section 453, as the case

16 may be, shall apply.

17 (b) The Government of the United States recognizes,

18 in view of the special relationship between the Government

19 of the United States and the Government of the Federated

20 States of Micronesia, and in view of the existence of the

21 separate agreement regarding mutual security concluded

22 with the Government of the Federated States of Micro23 nesia pursuant to sections 321 and 323, that, even if this

24 Title should terminate, any attack on the Federated

25 States of Micronesia during the period in which such sepaVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00148 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 rate agreement is in effect, would constitute a threat to

2 the peace and security of the entire region and a danger

3 to the United States. In the event of such an attack, the

4 Government of the United States would take action to

5 meet the danger to the United States and to the Federated

6 States of Micronesia in accordance with its constitutional

7 processes.

8 (c) As reflected in Article 21(1)(b) of the Trust Fund

9 Agreement, the Government of the United States and the

10 Government of the Federated States of Micronesia further

11 recognize, in view of the special relationship between their

12 countries, that even if this Title should terminate, the

13 Government of the Federated States of Micronesia shall

14 refrain from actions which the Government of the United

15 States determines, after appropriate consultation with

16 that Government, to be incompatible with its authority

17 and responsibility for security and defense matters in or

18 relating to the Federated States of Micronesia or the Re19 public of the Marshall Islands.

20 TITLE FOUR

21 GENERAL PROVISIONS

22 Article I

23 Approval and Effective Date

24 Section 411


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1 Pursuant to section 432 of the Compact and subject

2 to subsection (e) of section 461 of the Compact, as amend3 ed, the Compact, as amended, shall come into effect upon

4 mutual agreement between the Government of the United

5 States and the Government of the Federated States of Mi6 cronesia subsequent to completion of the following:

7 (a) Approval by the Government of the Fed8 erated States of Micronesia in accordance with its

9 constitutional processes.

10 (b) Approval by the Government of the United

11 States in accordance with its constitutional proc12 esses.

13 Article II

14 Conference and Dispute Resolution

15 Section 421

16 The Government of the United States shall confer

17 promptly at the request of the Government of the Fed18 erated States of Micronesia and that Government shall

19 confer promptly at the request of the Government of the

20 United States on matters relating to the provisions of this

21 Compact, as amended, or of its related agreements.

22 Section 422

23 In the event the Government of the United States or

24 the Government of the Federated States of Micronesia,

25 after conferring pursuant to section 421, determines that


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1 there is a dispute and gives written notice thereof, the two

2 Governments shall make a good faith effort to resolve the

3 dispute between themselves.

4 Section 423

5 If a dispute between the Government of the United

6 States and the Government of the Federated States of Mi7 cronesia cannot be resolved within 90 days of written noti8 fication in the manner provided in section 422, either

9 party to the dispute may refer it to arbitration in accord10 ance with section 424.

11 Section 424

12 Should a dispute be referred to arbitration as pro13 vided for in section 423, an Arbitration Board shall be

14 established for the purpose of hearing the dispute and ren15 dering a decision which shall be binding upon the two par16 ties to the dispute unless the two parties mutually agree

17 that the decision shall be advisory. Arbitration shall occur

18 according to the following terms:

19 (a) An Arbitration Board shall consist of a

20 Chairman and two other members, each of whom

21 shall be a citizen of a party to the dispute. Each of

22 the two Governments which is a party to the dispute

23 shall appoint one member to the Arbitration Board.

24 If either party to the dispute does not fulfill the ap25 pointment requirements of this section within 30


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1 days of referral of the dispute to arbitration pursu2 ant to section 423, its member on the Arbitration

3 Board shall be selected from its own standing list by

4 the other party to the dispute. Each Government

5 shall maintain a standing list of 10 candidates. The

6 parties to the dispute shall jointly appoint a Chair7 man within 15 days after selection of the other

8 members of the Arbitration Board. Failing agree9 ment on a Chairman, the Chairman shall be chosen

10 by lot from the standing lists of the parties to the

11 dispute within 5 days after such failure.

12 (b) Unless otherwise provided in this Compact,

13 as amended, or its related agreements, the Arbitra14 tion Board shall have jurisdiction to hear and render

15 its final determination on all disputes arising exclu16 sively under Articles I, II, III, IV and V of Title

17 One, Title Two, Title Four, and their related agree18 ments.

19 (c) Each member of the Arbitration Board shall

20 have one vote. Each decision of the Arbitration

21 Board shall be reached by majority vote.

22 (d) In determining any legal issue, the Arbitration

23 Board may have reference to international law and, in

24 such reference, shall apply as guidelines the provisions set


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1 forth in Article 38 of the Statute of the International

2 Court of Justice.

3 (e) The Arbitration Board shall adopt such rules for

4 its proceedings as it may deem appropriate and necessary,

5 but such rules shall not contravene the provisions of this

6 Compact, as amended. Unless the parties provide other7 wise by mutual agreement, the Arbitration Board shall en8 deavor to render its decision within 30 days after the con9 clusion of arguments. The Arbitration Board shall make

10 findings of fact and conclusions of law and its members

11 may issue dissenting or individual opinions. Except as may

12 be otherwise decided by the Arbitration Board, one-half

13 of all costs of the arbitration shall be borne by the Govern14 ment of the United States and the remainder shall be

15 borne by the Government of the Federated States of Mi16 cronesia.

17 Article III

18 Amendment

19 Section 431

20 The provisions of this Compact, as amended, may be

21 further amended by mutual agreement of the Government

22 of the United States and the Government of the Federated

23 States of Micronesia, in accordance with their respective

24 constitutional processes.


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1 Article IV

2 Termination

3 Section 441

4 This Compact, as amended, may be terminated by

5 mutual agreement of the Government of the Federated

6 States of Micronesia and the Government of the United

7 States, in accordance with their respective constitutional

8 processes. Such mutual termination of this Compact, as

9 amended, shall be without prejudice to the continued ap10 plication of section 451 of this Compact, as amended, and

11 the provisions of the Compact, as amended, set forth

12 therein.

13 Section 442

14 Subject to section 452, this Compact, as amended,

15 may be terminated by the Government of the United

16 States in accordance with its constitutional processes.

17 Such termination shall be effective on the date specified

18 in the notice of termination by the Government of the

19 United States but not earlier than six months following

20 delivery of such notice. The time specified in the notice

21 of termination may be extended. Such termination of this

22 Compact, as amended, shall be without prejudice to the

23 continued application of section 452 of this Compact, as

24 amended, and the provisions of the Compact, as amended,

25 set forth therein.


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1 Section 443

2 This Compact, as amended, shall be terminated by

3 the Government of the Federated States of Micronesia,

4 pursuant to its constitutional processes, subject to section

5 453 if the people represented by that Government vote in

6 a plebiscite to terminate the Compact, as amended, or by

7 another process permitted by the FSM constitution and

8 mutually agreed between the Governments of the United

9 States and the Federated States of Micronesia. The Gov10 ernment of the Federated States of Micronesia shall notify

11 the Government of the United States of its intention to

12 call such a plebiscite, or to pursue another mutually

13 agreed and constitutional process, which plebiscite or proc14 ess shall take place not earlier than three months after

15 delivery of such notice. The plebiscite or other process

16 shall be administered by the Government of the Federated

17 States of Micronesia in accordance with its constitutional

18 and legislative processes. If a majority of the valid ballots

19 cast in the plebiscite or other process favors termination,

20 the Government of the Federated States of Micronesia

21 shall, upon certification of the results of the plebiscite or

22 other process, give notice of termination to the Govern23 ment of the United States, such termination to be effective

24 on the date specified in such notice but not earlier than

25 three months following the date of delivery of such notice.


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1 The time specified in the notice of termination may be

2 extended.

3 Article V

4 Survivability

5 Section 451

6 (a) Should termination occur pursuant to section

7 441, economic and other assistance by the Government of

8 the United States shall continue only if and as mutually

9 agreed by the Governments of the United States and the

10 Federated States of Micronesia, and in accordance with

11 the parties’ respective constitutional processes.

12 (b) In view of the special relationship of the United

13 States and the Federated States of Micronesia, as re14 flected in subsections (b) and (c) of section 354 of this

15 Compact, as amended, and the separate agreement en16 tered into consistent with those subsections, if termination

17 occurs pursuant to section 441 prior to the twentieth anni18 versary of the effective date of this Compact, as amended,

19 the United States shall continue to make contributions to

20 the Trust Fund described in section 215 of this Compact,

21 as amended.

22 (c) In view of the special relationship of the United

23 States and the Federated States of Micronesia described

24 in subsection (b) of this section, if termination occurs pur25 suant to section 441 following the twentieth anniversary


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1 of the effective date of this Compact, as amended, the

2 Federated States of Micronesia shall be entitled to receive

3 proceeds from the Trust Fund described in section 215

4 of this Compact, as amended, in the manner described in

5 those provisions and the Trust Fund Agreement governing

6 the distribution of such proceeds.

7 Section 452

8 (a) Should termination occur pursuant to section 442

9 prior to the twentieth anniversary of the effective date of

10 this Compact, as amended, the following provisions of this

11 Compact, as amended, shall remain in full force and effect

12 until the twentieth anniversary of the effective date of this

13 Compact, as amended, and thereafter as mutually agreed:

14 (1) Article VI and sections 172, 173, 176 and

15 177 of Title One;

16 (2) Sections 232 and 234 of Title Two;

17 (3) Title Three; and

18 (4) Articles II, III, V and VI of Title Four.

19 (b) Should termination occur pursuant to section 442

20 before the twentieth anniversary of the effective date of

21 the Compact, as amended:

22 (1) Except as provided in paragraph (2) of this

23 subsection and subsection (c) of this section, eco24 nomic and other assistance by the United States

25 shall continue only if and as mutually agreed by the


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1 Governments of the United States and the Fed2 erated States of Micronesia.

3 (2) In view of the special relationship of the

4 United States and the Federated States of Micro5 nesia, as reflected in subsections (b) and (c) of sec6 tion 354 of this Compact, as amended, and the sepa7 rate agreement regarding mutual security, and the

8 Trust Fund Agreement, the United States shall con9 tinue to make contributions to the Trust Fund de10 scribed in section 215 of this Compact, as amended,

11 in the manner described in the Trust Fund Agree12 ment.

13 (c) In view of the special relationship of the United

14 States and the Federated States of Micronesia, as re15 flected in subsections 354(b) and (c) of this Compact, as

16 amended, and the separate agreement regarding mutual

17 security, and the Trust Fund Agreement, if termination

18 occurs pursuant to section 442 following the twentieth an19 niversary of the effective date of this Compact, as amend20 ed, the Federated States of Micronesia shall continue to

21 be eligible to receive proceeds from the Trust Fund de22 scribed in section 215 of this Compact, as amended, in

23 the manner described in those provisions and the Trust

24 Fund Agreement.

25 Section 453


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1 (a) Should termination occur pursuant to section 443

2 prior to the twentieth anniversary of the effective date of

3 this Compact, as amended, the following provisions of this

4 Compact, as amended, shall remain in full force and effect

5 until the twentieth anniversary of the effective date of this

6 Compact, as amended, and thereafter as mutually agreed:

7 (1) Article VI and sections 172, 173, 176 and

8 177 of Title One;

9 (2) Sections 232 and 234 of Title Two;

10 (3) Title Three; and

11 (4) Articles II, III, V and VI of Title Four.

12 (b) Upon receipt of notice of termination pursuant

13 to section 443, the Government of the United States and

14 the Government of the Federated States of Micronesia

15 shall promptly consult with regard to their future relation16 ship. Except as provided in subsection (c) and (d) of this

17 section, these consultations shall determine the level of

18 economic and other assistance, if any, which the Govern19 ment of the United States shall provide to the Government

20 of the Federated States of Micronesia for the period end21 ing on the twentieth anniversary of the effective date of

22 this Compact, as amended, and for any period thereafter,

23 if mutually agreed.

24 (c) In view of the special relationship of the United

25 States and the Federated States of Micronesia, as reVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00159 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 flected in subsections 354(b) and (c) of this Compact, as

2 amended, and the separate agreement regarding mutual

3 security, and the Trust Fund Agreement, if termination

4 occurs pursuant to section 443 prior to the twentieth anni5 versary of the effective date of this Compact, as amended,

6 the United States shall continue to make contributions to

7 the Trust Fund described in section 215 of this Compact,

8 as amended, in the manner described in the Trust Fund

9 Agreement.

10 (d) In view of the special relationship of the United

11 States and the Federated States of Micronesia, as re12 flected in subsections 354(b) and (c) of this Compact, as

13 amended, and the separate agreement regarding mutual

14 security, and the Trust Fund Agreement, if termination

15 occurs pursuant to section 443 following the twentieth an16 niversary of the effective date of this Compact, as amend17 ed, the Federated States of Micronesia shall continue to

18 be eligible to receive proceeds from the Trust Fund de19 scribed in section 215 of this Compact, as amended, in

20 the manner described in those provisions and the Trust

21 Fund Agreement.

22 Section 454

23 Notwithstanding any other provision of this Compact,

24 as amended:


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1 (a) The Government of the United States reaf2 firms its continuing interest in promoting the eco3 nomic advancement and budgetary self-reliance of

4 the people of the Federated States of Micronesia.

5 (b) The separate agreements referred to in Ar6 ticle II of Title Three shall remain in effect in ac7 cordance with their terms.

8 Article VI

9 Definition of Terms

10 Section 461

11 For the purpose of this Compact, as amended, only,

12 and without prejudice to the views of the Government of

13 the United States or the Government of the Federated

14 States of Micronesia as to the nature and extent of the

15 jurisdiction of either of them under international law, the

16 following terms shall have the following meanings:

17 (a) ‘‘Trust Territory of the Pacific Islands’’

18 means the area established in the Trusteeship

19 Agreement consisting of the former administrative

20 districts of Kosrae, Yap, Ponape, the Marshall Is21 lands and Truk as described in Title One, Trust

22 Territory Code, section 1, in force on January 1,

23 1979. This term does not include the area of Palau

24 or the Northern Mariana Islands.


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1 (b) ‘‘Trusteeship Agreement’’ means the agree2 ment setting forth the terms of trusteeship for the

3 Trust Territory of the Pacific Islands, approved by

4 the Security Council of the United Nations April 2,

5 1947, and by the United States July 18, 1947, en6 tered into force July 18, 1947, 61 Stat. 3301,

7 T.I.A.S. 1665, 8 U.N.T.S. 189.

8 (c) ‘‘The Federated States of Micronesia’’ and

9 ‘‘the Republic of the Marshall Islands’’ are used in

10 a geographic sense and include the land and water

11 areas to the outer limits of the territorial sea and

12 the air space above such areas as now or hereafter

13 recognized by the Government of the United States.

14 (d) ‘‘Compact’’ means the Compact of Free As15 sociation Between the United States and the Fed16 erated States of Micronesia and the Marshall Is17 lands, that was approved by the United States Con18 gress in section 201 of Public Law 99–239 (Jan. 14,

19 1986) and went into effect with respect to the Fed20 erated States of Micronesia on November 3, 1986.

21 (e) ‘‘Compact, as amended’’ means the Com22 pact of Free Association Between the United States

23 and the Federated States of Micronesia, as amend24 ed. The effective date of the Compact, as amended,

25 shall be on a date to be determined by the President


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1 of the United States, and agreed to by the Govern2 ment of the Federated States of Micronesia, fol3 lowing formal approval of the Compact, as amended,

4 in accordance with section 411 of this Compact, as

5 amended.

6 (f) ‘‘Government of the Federated States of Mi7 cronesia’’ means the Government established and or8 ganized by the Constitution of the Federated States

9 of Micronesia including all the political subdivisions

10 and entities comprising that Government.

11 (g) ‘‘Government of the Republic of the Mar12 shall Islands’’ means the Government established

13 and organized by the Constitution of the Republic of

14 the Marshall Islands including all the political sub15 divisions and entities comprising that Government.

16 (h) The following terms shall be defined con17 sistent with the 1998 Edition of the Radio Regula18 tions of the International Telecommunications Union

19 as follows:

20 (1) ‘‘Radiocommunication’’ means tele21 communication by means of radio waves.

22 (2) ‘‘Station’’ means one or more transmit23 ters or receivers or a combination of transmit24 ters and receivers, including the accessory

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1 rying on a radiocommunication service, or the

2 radio astronomy service.

3 (3) ‘‘Broadcasting Service’’ means a

4 radiocommunication service in which the trans5 missions are intended for direct reception by

6 the general public. This service may include

7 sound transmissions, television transmissions or

8 other types of transmission.

9 (4) ‘‘Broadcasting Station’’ means a sta10 tion in the broadcasting service.

11 (5) ‘‘Assignment (of a radio frequency or

12 radio frequency channel)’’ means an authoriza13 tion given by an administration for a radio sta14 tion to use a radio frequency or radio frequency

15 channel under specified conditions.

16 (6) ‘‘Telecommunication’’ means any

17 transmission, emission or reception of signs,

18 signals, writings, images and sounds or intel19 ligence of any nature by wire, radio, optical or

20 other electromagnetic systems.

21 (i) ‘‘Military Areas and Facilities’’ means those

22 areas and facilities in the Federated States of Micro23 nesia reserved or acquired by the Government of the

24 Federated States of Micronesia for use by the GovVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00164 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ernment of the United States, as set forth in the

2 separate agreements referred to in section 321.

3 (j) ‘‘Tariff Schedules of the United States’’

4 means the Tariff Schedules of the United States as

5 amended from time to time and as promulgated pur6 suant to United States law and includes the Tariff

7 Schedules of the United States Annotated (TSUSA),

8 as amended.

9 (k) ‘‘Vienna Convention on Diplomatic Rela10 tions’’ means the Vienna Convention on Diplomatic

11 Relations, done April 18, 1961, 23 U.S.T. 3227,

12 T.I.A.S. 7502, 500 U.N.T.S. 95.

13 Section 462

14 (a) The Government of the United States and the

15 Government of the Federated States of Micronesia pre16 viously have concluded agreements pursuant to the Com17 pact, which shall remain in effect and shall survive in ac18 cordance with their terms, as follows:

19 (1) Agreement Concluded Pursuant to Section

20 234 of the Compact;

21 (2) Agreement Between the Government of the

22 United States and the Government of the Federated

23 States of Micronesia Regarding Friendship, Co24 operation and Mutual Security Concluded Pursuant


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1 to Sections 321 and 323 of the Compact of Free As2 sociation; and

3 (3) Agreement between the Government of the

4 United States of America and the Federated States

5 of Micronesia Regarding Aspects of the Marine Sov6 ereignty and Jurisdiction of the Federated States of

7 Micronesia.

8 (b) The Government of the United States and the

9 Government of the Federated States of Micronesia shall

10 conclude prior to the date of submission of this Compact,

11 as amended, to the legislatures of the two countries, the

12 following related agreements which shall come into effect

13 on the effective date of this Compact, as amended, and

14 shall survive in accordance with their terms, as follows:

15 (1) Federal Programs and Services Agreement

16 Between the Government of the United States of

17 America and the Government of the Federated

18 States of Micronesia Concluded Pursuant to Article

19 III of Title One, Article II of Title Two (including

20 Section 222), and Section 231 of the Compact of

21 Free Association, as amended which includes:

22 (i) Postal Services and Related Programs;

23 (ii) Weather Services and Related Pro24 grams;


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1 (iii) Civil Aviation Safety Service and Re2 lated Programs;

3 (iv) Civil Aviation Economic Services and

4 Related Programs;

5 (v) United States Disaster Preparedness

6 and Response Services and Related Programs;

7 (vi) Federal Deposit Insurance Corporation

8 Services and Related Programs; and

9 (vii) Telecommunications Services and Re10 lated Programs.

11 (2) Agreement Between the Government of the

12 United States of America and the Government of

13 the Federated States of Micronesia on Extradition,

14 Mutual Assistance in Law Enforcement Matters and

15 Penal Sanctions Concluded Pursuant to Section

16 175(a) of the Compact of Free Association, as

17 amended;

18 (3) Agreement Between the Government of the

19 United States of America and the Government of

20 the Federated States of Micronesia on Labor Re21 cruitment Concluded Pursuant to Section 175(b) of

22 the Compact of Free Association, as amended;

23 (4) Agreement Concerning Procedures for the

24 Implementation of United States Economic Assist25 ance Provided in the Compact of Free Association,


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1 as Amended, of Free Association Between the Gov2 ernment of the United States of America and Gov3 ernment of the Federated States of Micronesia;

4 (5) Agreement Between the Government of the

5 United States of America and the Government of

6 the Federated States of Micronesia Implementing

7 Section 215 and Section 216 of the Compact, as

8 Amended, Regarding a Trust Fund;

9 (6) Agreement Regarding the Military Use and

10 Operating Rights of the Government of the United

11 States in the Federated States of Micronesia Con12 cluded Pursuant to Sections 211(b), 321 and 323 of

13 the Compact of Free Association, as Amended; and

14 the

15 (7) Status of Forces Agreement Between the

16 Government of the United States of America and

17 the Government of the Federated States of Micro18 nesia Concluded Pursuant to Section 323 of the

19 Compact of Free Association, as Amended.

20 Section 463

21 (a) Except as set forth in subsection (b) of this sec22 tion, any reference in this Compact, as amended, to a pro23 vision of the United States Code or the Statutes at Large

24 of the United States constitutes the incorporation of the

25 language of such provision into this Compact, as amended,


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1 as such provision was in force on the effective date of this

2 Compact, as amended.

3 (b) Any reference in Articles IV and Article VI of

4 Title One and Sections 174, 175, 178 and 342 to a provi5 sion of the United States Code or the Statutes at Large

6 of the United States or to the Privacy Act, the Freedom

7 of Information Act, the Administrative Procedure Act or

8 the Immigration and Nationality Act constitutes the incor9 poration of the language of such provision into this Com10 pact, as amended, as such provision was in force on the

11 effective date of this Compact, as amended, or as it may

12 be amended thereafter on a non-discriminatory basis ac13 cording to the constitutional processes of the United

14 States.

15 Article VII

16 Concluding Provisions

17 Section 471

18 Both the Government of the United States and the

19 Government of the Federated States of Micronesia shall

20 take all necessary steps, of a general or particular char21 acter, to ensure, no later than the entry into force date

22 of this Compact, as amended, the conformity of its laws,

23 regulations and administrative procedures with the provi24 sions of this Compact, as amended, or in the case of subVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00169 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 section (d) of section 141, as soon as reasonably possible

2 thereafter.

3 Section 472

4 This Compact, as amended, may be accepted, by sig5 nature or otherwise, by the Government of the United

6 States and the Government of the Federated States of Mi7 cronesia.

8 IN WITNESS WHEREOF, the undersigned, duly

9 authorized, have signed this Compact of Free Association,

10 as amended, which shall enter into force upon the ex11 change of diplomatic notes by which the Government of

12 the United States of America and the Government of the

13 Federated States of Micronesia inform each other about

14 the fulfillment of their respective requirements for entry

15 into force.

16 DONE at Pohnpei, Federated States of Micronesia,

17 in duplicate, this fourteenth (14) day of May, 2003, each

18 text being equally authentic.

Signed (May 14, 2003) Signed (May 14, 2003)

For the Government of the For the Government of the

United States of America: Federated States of

Micronesia:

19 (b) COMPACT OF FREE ASSOCIATION, AS AMENDED,

20 BETWEEN THE GOVERNMENT OF THE UNITED STATES

21 OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC

22 OF THE MARSHALL ISLANDS


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1 PREAMBLE

2 THE GOVERNMENT OF THE UNITED STATES OF

3 AMERICA AND THE GOVERNMENT OF THE

4 REPUBLIC OF THE MARSHALL ISLANDS

5 Affirming that their Governments and their relation6 ship as Governments are founded upon respect for human

7 rights and fundamental freedoms for all, and that the peo8 ple of the Republic of the Marshall Islands have the right

9 to enjoy self-government; and

10 Affirming the common interests of the United States

11 of America and the Republic of the Marshall Islands in

12 creating and maintaining their close and mutually bene13 ficial relationship through the free and voluntary associa14 tion of their respective Governments; and

15 Affirming the interest of the Government of the

16 United States in promoting the economic advancement

17 and budgetary self-reliance of the Republic of the Marshall

18 Islands; and

19 Recognizing that their relationship until the entry

20 into force on October 21, 1986 of the Compact was based

21 upon the International Trusteeship System of the United

22 Nations Charter, and in particular Article 76 of the Char23 ter; and that pursuant to Article 76 of the Charter, the

24 people of the Republic of the Marshall Islands have pro25 gressively developed their institutions of self-government,


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1 and that in the exercise of their sovereign right to self2 determination they, through their freely-expressed wishes,

3 have adopted a Constitution appropriate to their par4 ticular circumstances; and

5 Recognizing that the Compact reflected their common

6 desire to terminate the Trusteeship and establish a gov7 ernment-to-government relationship which was in accord8 ance with the new political status based on the freely ex9 pressed wishes of the people of the Republic of the Mar10 shall Islands and appropriate to their particular cir11 cumstances; and

12 Recognizing that the people of the Republic of the

13 Marshall Islands have and retain their sovereignty and

14 their sovereign right to self-determination and the inher15 ent right to adopt and amend their own Constitution and

16 form of government and that the approval of the entry

17 of the Government of the Republic of the Marshall Islands

18 into the Compact by the people of the Republic of the Mar19 shall Islands constituted an exercise of their sovereign

20 right to self-determination; and

21 Recognizing the common desire of the people of the

22 United States and the people of the Republic of the Mar23 shall Islands to maintain their close government-to-gov24 ernment relationship, the United States and the Republic

25 of the Marshall Islands:


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1 NOW, THEREFORE, MUTUALLY AGREE to

2 continue and strengthen their relationship of free associa3 tion by amending the Compact, which continues to provide

4 a full measure of self-government for the people of the

5 Republic of the Marshall Islands; and

6 FURTHER AGREE that the relationship of free as7 sociation derives from and is as set forth in this Compact,

8 as amended, by the Governments of the United States and

9 the Republic of the Marshall Islands; and that, during

10 such relationship of free association, the respective rights

11 and responsibilities of the Government of the United

12 States and the Government of the Republic of the Mar13 shall Islands in regard to this relationship of free associa14 tion derive from and are as set forth in this Compact, as

15 amended.

16 TITLE ONE

17 GOVERNMENTAL RELATIONS

18 Article I

19 Self-Government

20 Section 111

21 The people of the Republic of the Marshall Islands,

22 acting through the Government established under their

23 Constitution, are self-governing.


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1 Article II

2 Foreign Affairs

3 Section 121

4 (a) The Government of the Republic of the Marshall

5 Islands has the capacity to conduct foreign affairs and

6 shall do so in its own name and right, except as otherwise

7 provided in this Compact, as amended.

8 (b) The foreign affairs capacity of the Government

9 of the Republic of the Marshall Islands includes:

10 (1) the conduct of foreign affairs relating to law

11 of the sea and marine resources matters, including

12 the harvesting, conservation, exploration or exploi13 tation of living and non-living resources from the

14 sea, seabed or subsoil to the full extent recognized

15 under international law;

16 (2) the conduct of its commercial, diplomatic,

17 consular, economic, trade, banking, postal, civil avia18 tion, communications, and cultural relations, includ19 ing negotiations for the receipt of developmental

20 loans and grants and the conclusion of arrangements

21 with other governments and international and inter22 governmental organizations, including any matters

23 specially benefiting its individual citizens.

24 (c) The Government of the United States recognizes

25 that the Government of the Republic of the Marshall IsVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00174 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 lands has the capacity to enter into, in its own name and

2 right, treaties and other international agreements with

3 governments and regional and international organizations.

4 (d) In the conduct of its foreign affairs, the Govern5 ment of the Republic of the Marshall Islands confirms that

6 it shall act in accordance with principles of international

7 law and shall settle its international disputes by peaceful

8 means.

9 Section 122

10 The Government of the United States shall support

11 applications by the Government of the Republic of the

12 Marshall Islands for membership or other participation in

13 regional or international organizations as may be mutually

14 agreed.

15 Section 123

16 (a) In recognition of the authority and responsibility

17 of the Government of the United States under Title Three,

18 the Government of the Republic of the Marshall Islands

19 shall consult, in the conduct of its foreign affairs, with

20 the Government of the United States.

21 (b) In recognition of the foreign affairs capacity of

22 the Government of the Republic of the Marshall Islands,

23 the Government of the United States, in the conduct of

24 its foreign affairs, shall consult with the Government of

25 the Republic of the Marshall Islands on matters that the


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1 Government of the United States regards as relating to

2 or affecting the Government of the Republic of the Mar3 shall Islands.

4 Section 124

5 The Government of the United States may assist or

6 act on behalf of the Government of the Republic of the

7 Marshall Islands in the area of foreign affairs as may be

8 requested and mutually agreed from time to time. The

9 Government of the United States shall not be responsible

10 to third parties for the actions of the Government of the

11 Republic of the Marshall Islands undertaken with the as12 sistance or through the agency of the Government of the

13 United States pursuant to this section unless expressly

14 agreed.

15 Section 125

16 The Government of the United States shall not be

17 responsible for nor obligated by any actions taken by the

18 Government of the Republic of the Marshall Islands in the

19 area of foreign affairs, except as may from time to time

20 be expressly agreed.

21 Section 126

22 At the request of the Government of the Republic of

23 the Marshall Islands and subject to the consent of the re24 ceiving state, the Government of the United States shall

25 extend consular assistance on the same basis as for citiVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00176 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 zens of the United States to citizens of the Republic of

2 the Marshall Islands for travel outside the Republic of the

3 Marshall Islands, the United States and its territories and

4 possessions.

5 Section 127

6 Except as otherwise provided in this Compact, as

7 amended, or its related agreements, all obligations, re8 sponsibilities, rights and benefits of the Government of the

9 United States as Administering Authority which resulted

10 from the application pursuant to the Trusteeship Agree11 ment of any treaty or other international agreement to the

12 Trust Territory of the Pacific Islands on October 20,

13 1986, are, as of that date, no longer assumed and enjoyed

14 by the Government of the United States.

15 Article III

16 Communications

17 Section 131

18 (a) The Government of the Republic of the Marshall

19 Islands has full authority and responsibility to regulate its

20 domestic and foreign communications, and the Govern21 ment of the United States shall provide communications

22 assistance as mutually agreed.

23 (b) The Government of the Republic of the Marshall

24 Islands has elected to undertake all functions previously

25 performed by the Government of the United States with


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1 respect to domestic and foreign communications, except

2 for those functions set forth in a separate agreement en3 tered into pursuant to this section of the Compact, as

4 amended.

5 Section 132

6 The Government of the Republic of the Marshall Is7 lands shall permit the Government of the United States

8 to operate telecommunications services in the Republic of

9 the Marshall Islands to the extent necessary to fulfill the

10 obligations of the Government of the United States under

11 this Compact, as amended, in accordance with the terms

12 of separate agreements entered into pursuant to this sec13 tion of the Compact, as amended.

14 Article IV

15 Immigration

16 Section 141

17 (a) In furtherance of the special and unique relation18 ship that exists between the United States and the Repub19 lic of the Marshall Islands, under the Compact, as amend20 ed, any person in the following categories may be admitted

21 to lawfully engage in occupations, and establish residence

22 as a nonimmigrant in the United States and its territories

23 and possessions (the ‘‘United States’’) without regard to

24 paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the


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1 Immigration and Nationality Act, as amended, 8 U.S.C.

2 1182(a)(5) or (7)(B)(i)(II):

3 (1) a person who, on October 21, 1986, was a

4 citizen of the Trust Territory of the Pacific Islands,

5 as defined in Title 53 of the Trust Territory Code

6 in force on January 1, 1979, and has become and

7 remains a citizen of the Republic of the Marshall Is8 lands;

9 (2) a person who acquires the citizenship of the

10 Republic of the Marshall Islands at birth, on or after

11 the effective date of the Constitution of the Republic

12 of the Marshall Islands;

13 (3) an immediate relative of a person referred

14 to in paragraphs (1) or (2) of this section, provided

15 that such immediate relative is a naturalized citizen

16 of the Republic of the Marshall Islands who has

17 been an actual resident there for not less than five

18 years after attaining such naturalization and who

19 holds a certificate of actual residence, and further

20 provided, that, in the case of a spouse, such spouse

21 has been married to the person referred to in para22 graph (1) or (2) of this section for at least five

23 years, and further provided, that the Government of

24 the United States is satisfied that such naturalized

25 citizen meets the requirement of subsection (b) of


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1 section 104 of Public Law 99–239 as it was in effect

2 on the day prior to the effective date of this Com3 pact, as amended;

4 (4) a naturalized citizen of the Republic of the

5 Marshall Islands who was an actual resident there

6 for not less than five years after attaining such nat7 uralization and who satisfied these requirements as

8 of April 30, 2003, who continues to be an actual

9 resident and holds a certificate of actual residence,

10 and whose name is included in a list furnished by

11 the Government of the Republic of the Marshall Is12 lands to the Government of the United States no

13 later than the effective date of the Compact, as

14 amended, in form and content acceptable to the Gov15 ernment of the United States, provided, that the

16 Government of the United States is satisfied that

17 such naturalized citizen meets the requirement of

18 subsection (b) of section 104 of Public Law 99–239

19 as it was in effect on the day prior to the effective

20 date of this Compact, as amended; or

21 (5) an immediate relative of a citizen of the Re22 public of the Marshall Islands, regardless of the im23 mediate relative’s country of citizenship or period of

24 residence in the Republic of the Marshall Islands, if

25 the citizen of the Republic of the Marshall Islands


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1 is serving on active duty in any branch of the United

2 States Armed Forces, or in the active reserves.

3 (b) Notwithstanding subsection (a) of this section, a

4 person who is coming to the United States pursuant to

5 an adoption outside the United States, or for the purpose

6 of adoption in the United States, is ineligible for admission

7 under the Compact and the Compact, as amended. This

8 subsection shall apply to any person who is or was an ap9 plicant for admission to the United States on or after

10 March 1, 2003, including any applicant for admission in

11 removal proceedings (including appellate proceedings) on

12 or after March 1, 2003, regardless of the date such pro13 ceedings were commenced. This subsection shall have no

14 effect on the ability of the Government of the United

15 States or any United States State or local government to

16 commence or otherwise take any action against any person

17 or entity who has violated any law relating to the adoption

18 of any person.

19 (c) Notwithstanding subsection (a) of this section, no

20 person who has been or is granted citizenship in the Re21 public of the Marshall Islands, or has been or is issued

22 a Republic of the Marshall Islands passport pursuant to

23 any investment, passport sale, or similar program has

24 been or shall be eligible for admission to the United States

25 under the Compact or the Compact, as amended.


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1 (d) A person admitted to the United States under the

2 Compact, or the Compact, as amended, shall be considered

3 to have the permission of the Government of the United

4 States to accept employment in the United States. An un5 expired Republic of the Marshall Islands passport with un6 expired documentation issued by the Government of the

7 United States evidencing admission under the Compact or

8 the Compact, as amended, shall be considered to be docu9 mentation establishing identity and employment author10 ization under section 274A(b)(1)(B) of the Immigration

11 and Nationality Act, as amended, 8 U.S.C.

12 1324a(b)(1)(B). The Government of the United States

13 will take reasonable and appropriate steps to implement

14 and publicize this provision, and the Government of the

15 Republic of the Marshall Islands will also take reasonable

16 and appropriate steps to publicize this provision.

17 (e) For purposes of the Compact and the Compact,

18 as amended,

19 (1) the term ‘‘residence’’ with respect to a per20 son means the person’s principal, actual dwelling

21 place in fact, without regard to intent, as provided

22 in section 101(a)(33) of the Immigration and Na23 tionality Act, as amended, 8 U.S.C. 1101(a)(33),

24 and variations of the term ‘‘residence,’’ including


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1 ‘‘resident’’ and ‘‘reside,’’ shall be similarly con2 strued;

3 (2) the term ‘‘actual residence’’ means physical

4 presence in the Republic of the Marshall Islands

5 during eighty-five percent of the five-year period of

6 residency required by section 141(a)(3) and (4);

7 (3) the term ‘‘certificate of actual residence’’

8 means a certificate issued to a naturalized citizen by

9 the Government of the Republic of the Marshall Is10 lands stating that the citizen has complied with the

11 actual residence requirement of section 141(a)(3) or

12 (4);

13 (4) the term ‘‘nonimmigrant’’ means an alien

14 who is not an ‘‘immigrant’’ as defined in section

15 101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and

16 (5) the term ‘‘immediate relative’’ means a

17 spouse, or unmarried son or unmarried daughter

18 less than 21 years of age.

19 (f) The Immigration and Nationality Act, as amend20 ed, shall apply to any person admitted or seeking admis21 sion to the United States (other than a United States pos22 session or territory where such Act does not apply) under

23 the Compact or the Compact, as amended, and nothing

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1 strued to limit, preclude, or modify the applicability of,

2 with respect to such person:

3 (1) any ground of inadmissibility or deport4 ability under such Act (except sections 212(a)(5)

5 and 212(a)(7)(B)(i)(II) of such Act, as provided in

6 subsection (a) of this section), and any defense

7 thereto, provided that, section 237(a)(5) of such Act

8 shall be construed and applied as if it reads as fol9 lows: ‘‘any alien who has been admitted under the

10 Compact, or the Compact, as amended, who cannot

11 show that he or she has sufficient means of support

12 in the United States, is deportable;’’

13 (2) the authority of the Government of the

14 United States under section 214(a)(1) of such Act

15 to provide that admission as a nonimmigrant shall

16 be for such time and under such conditions as the

17 Government of the United States may by regulations

18 prescribe;

19 (3) except for the treatment of certain docu20 mentation for purposes of section 274A(b)(1)(B) of

21 such Act as provided by subsection (d) of this sec22 tion of the Compact, as amended, any requirement

23 under section 274A, including but not limited to sec24 tion 274A(b)(1)(E);


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1 (4) section 643 of the Illegal Immigration Re2 form and Immigrant Responsibility Act of 1996,

3 Public Law 104–208, and actions taken pursuant to

4 section 643; and

5 (5) the authority of the Government of the

6 United States otherwise to administer and enforce

7 the Immigration and Nationality Act, as amended,

8 or other United States law.

9 (g) Any authority possessed by the Government of the

10 United States under this section of the Compact or the

11 Compact, as amended, may also be exercised by the Gov12 ernment of a territory or possession of the United States

13 where the Immigration and Nationality Act, as amended,

14 does not apply, to the extent such exercise of authority

15 is lawful under a statute or regulation of such territory

16 or possession that is authorized by the laws of the United

17 States.

18 (h) Subsection (a) of this section does not confer on

19 a citizen of the Republic of the Marshall Islands the right

20 to establish the residence necessary for naturalization

21 under the Immigration and Nationality Act, as amended,

22 or to petition for benefits for alien relatives under that

23 Act. Subsection (a) of this section, however, shall not pre24 vent a citizen of the Republic of the Marshall Islands from


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1 otherwise acquiring such rights or lawful permanent resi2 dent alien status in the United States.

3 Section 142

4 (a) Any citizen or national of the United States may

5 be admitted to lawfully engage in occupations, and reside

6 in the Republic of the Marshall Islands, subject to the

7 rights of the Government of the Republic of the Marshall

8 Islands to deny entry to or deport any such citizen or na9 tional as an undesirable alien. Any determination of inad10 missibility or deportability shall be based on reasonable

11 statutory grounds and shall be subject to appropriate ad12 ministrative and judicial review within the Republic of the

13 Marshall Islands. If a citizen or national of the United

14 States is a spouse of a citizen of the Republic of the Mar15 shall Islands, the Government of the Republic of the Mar16 shall Islands shall allow the United States citizen spouse

17 to establish residence. Should the Republic of the Marshall

18 Islands citizen spouse predecease the United States citizen

19 spouse during the marriage, the Government of the Re20 public of the Marshall Islands shall allow the United

21 States citizen spouse to continue to reside in the Republic

22 of the Marshall Islands.

23 (b) In enacting any laws or imposing any require24 ments with respect to citizens and nationals of the United

25 States entering the Republic of the Marshall Islands under


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1 subsection (a) of this section, including any grounds of

2 inadmissibility or deportability, the Government of the Re3 public of the Marshall Islands shall accord to such citizens

4 and nationals of the United States treatment no less fa5 vorable than that accorded to citizens of other countries.

6 (c) Consistent with subsection (a) of this section, with

7 respect to citizens and nationals of the United States seek8 ing to engage in employment or invest in the Republic of

9 the Marshall Islands, the Government of the Republic of

10 the Marshall Islands shall adopt immigration-related pro11 cedures no less favorable than those adopted by the Gov12 ernment of the United States with respect to citizens of

13 the Republic of the Marshall Islands seeking employment

14 in the United States.

15 Section 143

16 Any person who relinquishes, or otherwise loses, his

17 United States nationality or citizenship, or his Republic

18 of the Marshall Islands citizenship, shall be ineligible to

19 receive the privileges set forth in sections 141 and 142.

20 Any such person may apply for admission to the United

21 States or the Republic of the Marshall Islands, as the case

22 may be, in accordance with any other applicable laws of

23 the United States or the Republic of the Marshall Islands

24 relating to immigration of aliens from other countries. The

25 laws of the Republic of the Marshall Islands or the United


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1 States, as the case may be, shall dictate the terms and

2 conditions of any such person’s stay.

3 Article V

4 Representation

5 Section 151

6 Relations between the Government of the United

7 States and the Government of the Republic of the Mar8 shall Islands shall be conducted in accordance with the

9 Vienna Convention on Diplomatic Relations. In addition

10 to diplomatic missions and representation, the Govern11 ments may establish and maintain other offices and des12 ignate other representatives on terms and in locations as

13 may be mutually agreed.

14 Section 152

15 (a) Any citizen or national of the United States who,

16 without authority of the United States, acts as the agent

17 of the Government of the Republic of the Marshall Islands

18 with regard to matters specified in the provisions of the

19 Foreign Agents Registration Act of 1938, as amended (22

20 U.S.C. 611 et seq.), that apply with respect to an agent

21 of a foreign principal shall be subject to the requirements

22 of such Act. Failure to comply with such requirements

23 shall subject such citizen or national to the same penalties

24 and provisions of law as apply in the case of the failure

25 of such an agent of a foreign principal to comply with such


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1 requirements. For purposes of the Foreign Agents Reg2 istration Act of 1938, the Republic of the Marshall Islands

3 shall be considered to be a foreign country.

4 (b) Subsection (a) of this section shall not apply to

5 a citizen or national of the United States employed by the

6 Government of the Republic of the Marshall Islands with

7 respect to whom the Government of the Republic of the

8 Marshall Islands from time to time certifies to the Govern9 ment of the United States that such citizen or national

10 is an employee of the Republic of the Marshall Islands

11 whose principal duties are other than those matters speci12 fied in the Foreign Agents Registration Act of 1938, as

13 amended, that apply with respect to an agent of a foreign

14 principal. The agency or officer of the United States re15 ceiving such certifications shall cause them to be filed with

16 the Attorney General, who shall maintain a publicly avail17 able list of the persons so certified.

18 Article VI

19 Environmental Protection

20 Section 161

21 The Governments of the United States and the Re22 public of the Marshall Islands declare that it is their policy

23 to promote efforts to prevent or eliminate damage to the

24 environment and biosphere and to enrich understanding

25 of the natural resources of the Republic of the Marshall


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1 Islands. In order to carry out this policy, the Government

2 of the United States and the Government of the Republic

3 of the Marshall Islands agree to the following mutual and

4 reciprocal undertakings:

5 (a) The Government of the United States:

6 (1) shall, for its activities controlled by the

7 U.S. Army at Kwajalein Atoll and in the Mid8 Atoll Corridor and for U.S. Army Kwajalein

9 Atoll activities in the Republic of the Marshall

10 Islands, continue to apply the Environmental

11 Standards and Procedures for United States

12 Army Kwajalein Atoll Activities in the Republic

13 of the Marshall Islands, unless and until those

14 Standards or Procedures are modified by mu15 tual agreement of the Governments of the

16 United States and the Republic of the Marshall

17 Islands;

18 (2) shall apply the National Environmental

19 Policy Act of 1969, 83 Stat. 852, 42 U.S.C.

20 4321 et seq., to its activities under the Com21 pact, as amended, and its related agreements as

22 if the Republic of the Marshall Islands were the

23 United States;

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1 aration of an Environmental Impact Statement

2 under section 161(a)(2), shall comply with

3 standards substantively similar to those re4 quired by the following laws of the United

5 States, taking into account the particular envi6 ronment of the Republic of the Marshall Is7 lands; the Endangered Species Act of 1973, as

8 amended, 16 U.S.C. 1531 et seq.; the Clean Air

9 Act, as amended, 42 U.S.C. 7401 et seq.; the

10 Clean Water Act (Federal Water Pollution Con11 trol Act), as amended, 33 U.S.C. 1251 et seq.;

12 Title I of the Marine Protection, Research and

13 Sanctuaries Act of 1972 (the Ocean Dumping

14 Act), 33 U.S.C. 1411 et seq.; the Toxic Sub15 stances Control Act, as amended, 15 U.S.C.

16 2601 et seq.; the Solid Waste Disposal Act, as

17 amended, 42 U.S.C. 6901 et seq.; and such

18 other environmental protection laws of the

19 United States and the Republic of the Marshall

20 Islands as may be agreed from time to time

21 with the Government of the Republic of the

22 Marshall Islands;

23 (4) shall, prior to conducting any activity

24 not described in section 161(a)(1) requiring the

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1 ment under section 161(a)(2), develop, as

2 agreed with the Government of the Republic of

3 the Marshall Islands, written environmental

4 standards and procedures to implement the

5 substantive provisions of the laws made applica6 ble to U.S. Government activities in the Repub7 lic of the Marshall Islands, pursuant to section

8 161(a)(3).

9 (b) The Government of the Republic of the

10 Marshall Islands shall continue to develop and im11 plement standards and procedures to protect its en12 vironment. As a reciprocal obligation to the under13 takings of the Government of the United States

14 under this Article, the Republic of the Marshall Is15 lands, taking into account its particular environ16 ment, shall continue to develop and implement

17 standards for environmental protection substantively

18 similar to those required of the Government of the

19 United States by section 161(a)(3) prior to its con20 ducting activities in the Republic of the Marshall Is21 lands, substantively equivalent to activities con22 ducted there by the Government of the United

23 States and, as a further reciprocal obligation, shall

24 enforce those standards.


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1 (c) Section 161(a), including any standard or

2 procedure applicable thereunder, and section 161(b)

3 may be modified or superseded in whole or in part

4 by agreement of the Government of the United

5 States and the Government of the Republic of the

6 Marshall Islands.

7 (d) In the event that an Environmental Impact

8 Statement is no longer required under the laws of

9 the United States for major Federal actions signifi10 cantly affecting the quality of the human environ11 ment, the regulatory regime established under sec12 tions 161(a)(3) and 161(a)(4) shall continue to

13 apply to such activities of the Government of the

14 United States until amended by mutual agreement.

15 (e) The President of the United States may ex16 empt any of the activities of the Government of the

17 United States under this Compact, as amended, and

18 its related agreements from any environmental

19 standard or procedure which may be applicable

20 under sections 161(a)(3) and 161(a)(4) if the Presi21 dent determines it to be in the paramount interest

22 of the Government of the United States to do so,

23 consistent with Title Three of this Compact, as

24 amended, and the obligations of the Government of

25 the United States under international law. Prior to


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1 any decision pursuant to this subsection, the views

2 of the Government of the Republic of the Marshall

3 Islands shall be sought and considered to the extent

4 practicable. If the President grants such an exemp5 tion, to the extent practicable, a report with his rea6 sons for granting such exemption shall be given

7 promptly to the Government of the Republic of the

8 Marshall Islands.

9 (f) The laws of the United States referred to in

10 section 161(a)(3) shall apply to the activities of the

11 Government of the United States under this Com12 pact, as amended, and its related agreements only to

13 the extent provided for in this section.

14 Section 162

15 The Government of the Republic of the Marshall Is16 lands may bring an action for judicial review of any ad17 ministrative agency action or any activity of the Govern18 ment of the United States pursuant to section 161(a) for

19 enforcement of the obligations of the Government of the

20 United States arising thereunder. The United States Dis21 trict Court for the District of Hawaii and the United

22 States District Court for the District of Columbia shall

23 have jurisdiction over such action or activity, and over ac24 tions brought under section 172(b) which relate to the ac25 tivities of the Government of the United States and its


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1 officers and employees, governed by section 161, provided

2 that:

3 (a) Such actions may only be civil actions for

4 any appropriate civil relief other than punitive dam5 ages against the Government of the United States

6 or, where required by law, its officers in their official

7 capacity; no criminal actions may arise under this

8 section.

9 (b) Actions brought pursuant to this section

10 may be initiated only by the Government of the Re11 public of the Marshall Islands.

12 (c) Administrative agency actions arising under

13 section 161 shall be reviewed pursuant to the stand14 ard of judicial review set forth in 5 U.S.C. 706.

15 (d) The United States District Court for the

16 District of Hawaii and the United States District

17 Court for the District of Columbia shall have juris18 diction to issue all necessary processes, and the Gov19 ernment of the United States agrees to submit itself

20 to the jurisdiction of the court; decisions of the

21 United States District Court shall be reviewable in

22 the United States Court of Appeals for the Ninth

23 Circuit or the United States Court of Appeals for

24 the District of Columbia, respectively, or in the


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1 United States Supreme Court as provided by the

2 laws of the United States.

3 (e) The judicial remedy provided for in this sec4 tion shall be the exclusive remedy for the judicial re5 view or enforcement of the obligations of the Gov6 ernment of the United States under this Article and

7 actions brought under section 172(b), which relate

8 to the activities of the Government of the United

9 States and its officers and employees governed by

10 section 161.

11 (f) In actions pursuant to this section, the Gov12 ernment of the Republic of the Marshall Islands

13 shall be treated as if it were a United States citizen.

14 Section 163

15 (a) For the purpose of gathering data necessary to

16 study the environmental effects of activities of the Govern17 ment of the United States subject to the requirements of

18 this Article, the Government of the Republic of the Mar19 shall Islands shall be granted access to facilities operated

20 by the Government of the United States in the Republic

21 of the Marshall Islands, to the extent necessary for this

22 purpose, except to the extent such access would unreason23 ably interfere with the exercise of the authority and re24 sponsibility of the Government of the United States under

25 Title Three.


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1 (b) The Government of the United States, in turn,

2 shall be granted access to the Republic of the Marshall

3 Islands for the purpose of gathering data necessary to dis4 charge its obligations under this Article, except to the ex5 tent such access would unreasonably interfere with the ex6 ercise of the authority and responsibility of the Govern7 ment of the Republic of the Marshall Islands under Title

8 One, and to the extent necessary for this purpose shall

9 be granted access to documents and other information to

10 the same extent similar access is provided the Government

11 of the Republic of the Marshall Islands under the Freedom

12 of Information Act, 5 U.S.C. 552.

13 (c) The Government of the Republic of the Marshall

14 Islands shall not impede efforts by the Government of the

15 United States to comply with applicable standards and

16 procedures.

17 Article VII

18 General Legal Provisions

19 Section 171

20 Except as provided in this Compact, as amended, or

21 its related agreements, the application of the laws of the

22 United States to the Trust Territory of the Pacific Islands

23 by virtue of the Trusteeship Agreement ceased with re24 spect to the Marshall Islands on October 21, 1986, the

25 date the Compact went into effect.


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1 Section 172

2 (a) Every citizen of the Republic of the Marshall Is3 lands who is not a resident of the United States shall enjoy

4 the rights and remedies under the laws of the United

5 States enjoyed by any non-resident alien.

6 (b) The Government of the Republic of the Marshall

7 Islands and every citizen of the Republic of the Marshall

8 Islands shall be considered to be a ‘‘person’’ within the

9 meaning of the Freedom of Information Act, 5 U.S.C.

10 552, and of the judicial review provisions of the Adminis11 trative Procedure Act, 5 U.S.C. 701-706, except that only

12 the Government of the Republic of the Marshall Islands

13 may seek judicial review under the Administrative Proce14 dure Act or judicial enforcement under the Freedom of

15 Information Act when such judicial review or enforcement

16 relates to the activities of the Government of the United

17 States governed by sections 161 and 162.

18 Section 173

19 The Governments of the United States and the Re20 public of the Marshall Islands agree to adopt and enforce

21 such measures, consistent with this Compact, as amended,

22 and its related agreements, as may be necessary to protect

23 the personnel, property, installations, services, programs

24 and official archives and documents maintained by the

25 Government of the United States in the Republic of the


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1 Marshall Islands pursuant to this Compact, as amended,

2 and its related agreements and by the Government of the

3 Republic of the Marshall Islands in the United States pur4 suant to this Compact, Compact, as amended, and its re5 lated agreements.

6 Section 174

7 Except as otherwise provided in this Compact, as

8 amended, and its related agreements:

9 (a) The Government of the Republic of the

10 Marshall Islands, and its agencies and officials, shall

11 be immune from the jurisdiction of the court of the

12 United States, and the Government of the United

13 States, and its agencies and officials, shall be im14 mune from the jurisdiction of the courts of the Re15 public of the Marshall Islands.

16 (b) The Government of the United States ac17 cepts responsibility for and shall pay:

18 (1) any unpaid money judgment rendered

19 by the High Court of the Trust Territory of the

20 Pacific Islands against the Government of the

21 United States with regard to any cause of ac22 tion arising as a result of acts or omissions of

23 the Government of the Trust Territory of the

24 Pacific Islands or the Government of the

25 United States prior to October 21, 1986;


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1 (2) any claim settled by the claimant and

2 the Government of the Trust Territory of the

3 Pacific Islands but not paid as of the October

4 21, 1986; and

5 (3) settlement of any administrative claim

6 or of any action before a court of the Trust

7 Territory of the Pacific Islands or the Govern8 ment of the United States, arising as a result

9 of acts or omissions of the Government of the

10 Trust Territory of the Pacific Islands or the

11 Government of the United States.

12 (c) Any claim not referred to in section 174(b)

13 and arising from an act or omission of the Govern14 ment of the Trust Territory of the Pacific Islands or

15 the Government of the United States prior to the ef16 fective date of the Compact shall be adjudicated in

17 the same manner as a claim adjudicated according

18 to section 174(d). In any claim against the Govern19 ment of the Trust Territory of the Pacific Islands,

20 the Government of the United States shall stand in

21 the place of the Government of the Trust Territory

22 of the Pacific Islands. A judgment on any claim re23 ferred to in section 174(b) or this subsection, not

24 otherwise satisfied by the Government of the United

25 States, may be presented for certification to the


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1 United States Court of Appeals for the Federal Cir2 cuit, or its successor courts, which shall have juris3 diction therefore, notwithstanding the provisions of

4 28 U.S.C. 1502, and which court’s decisions shall be

5 reviewable as provided by the laws of the United

6 States. The United States Court of Appeals for the

7 Federal Circuit shall certify such judgment, and

8 order payment thereof, unless it finds, after a hear9 ing, that such judgment is manifestly erroneous as

10 to law or fact, or manifestly excessive. In either of

11 such cases the United States Court of Appeals for

12 the Federal Circuit shall have jurisdiction to modify

13 such judgment.

14 (d) The Government of the Republic of the

15 Marshall Islands shall not be immune from the juris16 diction of the courts of the United States, and the

17 Government of the United States shall not be im18 mune from the jurisdiction of the courts of the Re19 public of the Marshall Islands in any civil case in

20 which an exception to foreign state immunity is set

21 forth in the Foreign Sovereign Immunities Act (28

22 U.S.C. 1602 et seq.) or its successor statutes.

23 Section 175

24 (a) A separate agreement, which shall come into ef25 fect simultaneously with this Compact, as amended, and


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1 shall have the force of law, shall govern mutual assistance

2 and cooperation in law enforcement matters, including the

3 pursuit, capture, imprisonment and extradition of fugi4 tives from justice and the transfer of prisoners, as well

5 as other law enforcement matters. In the United States,

6 the laws of the United States governing international ex7 tradition, including 18 U.S.C. 3184, 3186, and 3188–95,

8 shall be applicable to the extradition of fugitives under the

9 separate agreement, and the laws of the United States

10 governing the transfer of prisoners, including 18 U.S.C.

11 4100–15, shall be applicable to the transfer of prisoners

12 under the separate agreement; and

13 (b) A separate agreement, which shall come into ef14 fect simultaneously with this Compact, as amended, and

15 shall have the force of law, shall govern requirements re16 lating to labor recruitment practices, including registra17 tion, reporting, suspension or revocation of authorization

18 to recruit persons for employment in the United States,

19 and enforcement for violations of such requirements.

20 Section 176

21 The Government of the Republic of the Marshall Is22 lands confirms that final judgments in civil cases rendered

23 by any court of the Trust Territory of the Pacific Islands

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1 shall Islands to grant relief from judgments in appropriate

2 cases.

3 Section 177

4 Section 177 of the Compact entered into force with

5 respect to the Marshall Islands on October 21, 1986 as

6 follows:

7 ‘‘(a) The Government of the United States ac8 cepts the responsibility for compensation owing to

9 citizens of the Marshall Islands, or the Federated

10 States of Micronesia, (or Palau) for loss or damage

11 to property and person of the citizens of the Mar12 shall Islands, or the Federated States of Micronesia,

13 resulting from the nuclear testing program which

14 the Government of the United States conducted in

15 the Northern Marshall Islands between June 30,

16 1946, and August 18, 1958.

17 (b) The Government of the United States and

18 the Government of the Marshall Islands shall set

19 forth in a separate agreement provisions for the just

20 and adequate settlement of all such claims which

21 have arisen in regard to the Marshall Islands and its

22 citizens and which have not as yet been compensated

23 or which in the future may arise, for the continued

24 administration by the Government of the United

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1 lance and treatment programs and radiological mon2 itoring activities and for such additional programs

3 and activities as may be mutually agreed, and for

4 the assumption by the Government of the Marshall

5 Islands of responsibility for enforcement of limita6 tions on the utilization of affected areas developed in

7 cooperation with the Government of the United

8 States and for the assistance by the Government of

9 the United States in the exercise of such responsi10 bility as may be mutually agreed. This separate

11 agreement shall come into effect simultaneously with

12 this Compact and shall remain in effect in accord13 ance with its own terms.

14 (c) The Government of the United States shall

15 provide to the Government of the Marshall Islands,

16 on a grant basis, the amount of $150 million to be

17 paid and distributed in accordance with the separate

18 agreement referred to in this Section, and shall pro19 vide the services and programs set forth in this sep20 arate agreement, the language of which is incor21 porated into this Compact.’’

22 The Compact, as amended, makes no changes to, and has

23 no effect upon, Section 177 of the Compact, nor does the

24 Compact, as amended, change or affect the separate

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1 cluding Articles IX and X of that separate agreement, and

2 measures taken by the parties thereunder.

3 Section 178

4 (a) The Federal agencies of the Government of the

5 United States that provide services and related programs

6 in the Republic of the Marshall Islands pursuant to Title

7 Two are authorized to settle and pay tort claims arising

8 in the Republic of the Marshall Islands from the activities

9 of such agencies or from the acts or omissions of the em10 ployees of such agencies. Except as provided in section

11 178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C.

12 1304 shall apply exclusively to such administrative settle13 ments and payments.

14 (b) Claims under section 178(a) that cannot be set15 tled under section 178(a) shall be disposed of exclusively

16 in accordance with Article II of Title Four. Arbitration

17 awards rendered pursuant to this subsection shall be paid

18 out of funds under 31 U.S.C. 1304.

19 (c) The Government of the United States and the

20 Government of the Republic of the Marshall Islands shall,

21 in the separate agreement referred to in section 231, pro22 vide for:

23 (1) the administrative settlement of claims re24 ferred to in section 178(a), including designation of

25 local agents in each State of the Republic of the


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1 Marshall Islands; such agents to be empowered to

2 accept, investigate and settle such claims, in a timely

3 manner, as provided in such separate agreements;

4 and

5 (2) arbitration, referred to in section 178(b), in

6 a timely manner, at a site convenient to the claim7 ant, in the event a claim is not otherwise settled

8 pursuant to section 178(a).

9 (d) The provisions of section 174(d) shall not apply

10 to claims covered by this section.

11 (e) Except as otherwise explicitly provided by law of

12 the United States, this Compact, as amended, or its re13 lated agreements, neither the Government of the United

14 States, its instrumentalities, nor any person acting on be15 half of the Government of the United States, shall be

16 named a party in any action based on, or arising out of,

17 the activity or activities of a recipient of any grant or other

18 assistance provided by the Government of the United

19 States (or the activity or activities of the recipient’s agen20 cy or any other person or entity acting on behalf of the

21 recipient).

22 Section 179

23 (a) The courts of the Republic of the Marshall Is24 lands shall not exercise criminal jurisdiction over the Gov25 ernment of the United States, or its instrumentalities.


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1 (b) The courts of the Republic of the Marshall Is2 lands shall not exercise criminal jurisdiction over any per3 son if the Government of the United States provides notifi4 cation to the Government of the Republic of the Marshall

5 Islands that such person was acting on behalf of the Gov6 ernment of the United States, for actions taken in further7 ance of section 221 or 224 of this amended Compact, or

8 any other provision of law authorizing financial, program,

9 or service assistance to the Republic of the Marshall Is10 lands.

11 TITLE TWO

12 ECONOMIC RELATIONS

13 Article I

14 Grant Assistance

15 Section 211 - Annual Grant Assistance

16 (a) In order to assist the Government of the Republic

17 of the Marshall Islands in its efforts to promote the eco18 nomic advancement and budgetary self-reliance of its peo19 ple, and in recognition of the special relationship that ex20 ists between the Republic of the Marshall Islands and the

21 United States, the Government of the United States shall

22 provide assistance on a grant basis for a period of twenty

23 years in the amounts set forth in section 217, commencing

24 on the effective date of this Compact, as amended. Such

25 grants shall be used for assistance in education, health


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1 care, the environment, public sector capacity building, and

2 private sector development, or for other areas as mutually

3 agreed, with priorities in the education and health care

4 sectors. Consistent with the medium-term budget and in5 vestment framework described in subsection (f) of this sec6 tion, the proposed division of this amount among the iden7 tified areas shall require the concurrence of both the Gov8 ernment of the United States and the Government of the

9 Republic of the Marshall Islands, through the Joint Eco10 nomic Management and Financial Accountability Com11 mittee described in section 214. The Government of the

12 United States shall disburse the grant assistance and

13 monitor the use of such grant assistance in accordance

14 with the provisions of this Article and an Agreement Con15 cerning Procedures for the Implementation of United

16 States Economic Assistance Provided in the Compact, as

17 Amended, of Free Association Between the Government

18 of the United States of America and the Government of

19 the Republic of the Marshall Islands (‘‘Fiscal Procedures

20 Agreement’’) which shall come into effect simultaneously

21 with this Compact, as amended.

22 (1) EDUCATION.—United States grant assist23 ance shall be made available in accordance with the

24 strategic framework described in subsection (f) of

25 this section to support and improve the educational


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1 system of the Republic of the Marshall Islands and

2 develop the human, financial, and material resources

3 necessary for the Republic of the Marshall Islands to

4 perform these services. Emphasis should be placed

5 on advancing a quality basic education system.

6 (2) HEALTH.—United States grant assistance

7 shall be made available in accordance with the stra8 tegic framework described in subsection (f) of this

9 section to support and improve the delivery of pre10 ventive, curative and environmental care and develop

11 the human, financial, and material resources nec12 essary for the Republic of the Marshall Islands to

13 perform these services.

14 (3) PRIVATE SECTOR DEVELOPMENT.—United

15 States grant assistance shall be made available in

16 accordance with the strategic framework described

17 in subsection (f) of this section to support the ef18 forts of the Republic of the Marshall Islands to at19 tract foreign investment and increase indigenous

20 business activity by vitalizing the commercial envi21 ronment, ensuring fair and equitable application of

22 the law, promoting adherence to core labor stand23 ards, maintaining progress toward privatization of

24 state-owned and partially state-owned enterprises,

25 and engaging in other reforms.


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1 (4) CAPACITY BUILDING IN THE PUBLIC SEC2 TOR.—United States grant assistance shall be made

3 available in accordance with the strategic framework

4 described in subsection (f) of this section to support

5 the efforts of the Republic of the Marshall Islands

6 to build effective, accountable and transparent na7 tional and local government and other public sector

8 institutions and systems.

9 (5) ENVIRONMENT.—United States grant as10 sistance shall be made available in accordance with

11 the strategic framework described in subsection (f)

12 of this section to increase environmental protection;

13 establish and manage conservation areas; engage in

14 environmental infrastructure planning, design con15 struction and operation; and to involve the citizens

16 of the Republic of the Marshall Islands in the proc17 ess of conserving their country’s natural resources.

18 (b) KWAJALEIN ATOLL.—

19 (1) Of the total grant assistance made available

20 under subsection (a) of this section, the amount

21 specified herein shall be allocated annually from fis22 cal year 2004 through fiscal year 2023 (and there23 after in accordance with the Agreement between the

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1 garding Military Use and Operating Rights) to ad2 vance the objectives and specific priorities set forth

3 in subsections (a) and (d) of this section and the

4 Fiscal Procedures Agreement, to address the special

5 needs of the community at Ebeye, Kwajalein Atoll

6 and other Marshallese communities within Kwajalein

7 Atoll. This United States grant assistance shall be

8 made available, in accordance with the medium-term

9 budget and investment framework described in sub10 section (f) of this section, to support and improve

11 the infrastructure and delivery of services and de12 velop the human and material resources necessary

13 for the Republic of the Marshall Islands to carry out

14 its responsibility to maintain such infrastructure and

15 deliver such services. The amount of this assistance

16 shall be $3,100,000, with an inflation adjustment as

17 provided in section 218, from fiscal year 2004

18 through fiscal year 2013 and the fiscal year 2013

19 level of funding, with an inflation adjustment as pro20 vided in section 218, will be increased by $2 million

21 for fiscal year 2014. The fiscal year 2014 level of

22 funding, with an inflation adjustment as provided in

23 section 218, will be made available from fiscal year

24 2015 through fiscal year 2023 (and thereafter as

25 noted above).


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1 (2) The Government of the United States shall

2 also provide to the Government of the Republic of

3 the Marshall Islands, in conjunction with section

4 321(a) of this Compact, as amended, an annual pay5 ment from fiscal year 2004 through fiscal year 2023

6 (and thereafter in accordance with the Agreement

7 between the Government of the United States and

8 the Government of the Republic of the Marshall Is9 lands Regarding Military Use and Operating Rights)

10 of $1.9 million. This grant assistance will be subject

11 to the Fiscal Procedures Agreement and will be ad12 justed for inflation under section 218 and used to

13 address the special needs of the community at

14 Ebeye, Kwajalein Atoll and other Marshallese com15 munities within Kwajalein Atoll with emphasis on

16 the Kwajalein landowners, as described in the Fiscal

17 Procedures Agreement.

18 (3) Of the total grant assistance made available

19 under subsection (a) of this section, and in conjunc20 tion with section 321(a) of the Compact, as amend21 ed, $200,000, with an inflation adjustment as pro22 vided in section 218, shall be allocated annually

23 from fiscal year 2004 through fiscal year 2023 (and

24 thereafter as provided in the Agreement between the

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1 ment of the Republic of the Marshall Islands Re2 garding Military Use and Operating Rights) for a

3 grant to support increased participation of the Gov4 ernment of the Republic of the Marshall Islands En5 vironmental Protection Authority in the annual U.S.

6 Army Kwajalein Atoll Environmental Standards

7 Survey and to promote a greater Government of the

8 Republic of the Marshall Islands capacity for inde9 pendent analysis of the Survey’s findings and con10 clusions.

11 (c) HUMANITARIAN ASSISTANCE-REPUBLIC OF THE

12 MARSHALL ISLANDS PROGRAM.—In recognition of the

13 special development needs of the Republic of the Marshall

14 Islands, the Government of the United States shall make

15 available to the Government of the Republic of the Mar16 shall Islands, on its request and to be deducted from the

17 grant amount made available under subsection (a) of this

18 section, a Humanitarian Assistance - Republic of the Mar19 shall Islands (‘‘HARMI’’) Program with emphasis on

20 health, education, and infrastructure (including transpor21 tation), projects and such other projects as mutually

22 agreed. The terms and conditions of the HARMI shall be

23 set forth in the Agreement Regarding the Military Use

24 and Operating Rights of the Government of the United

25 States in the Republic of the Marshall Islands Concluded


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209

1 Pursuant to Sections 321 and 323 of the Compact of Free

2 Association, as Amended, which shall come into effect si3 multaneously with the amendments to this Compact.

4 (d) PUBLIC INFRASTRUCTURE.—

5 (1) Unless otherwise agreed, not less than 30

6 percent and not more than 50 percent of U.S. an7 nual grant assistance provided under this section

8 shall be made available in accordance with a list of

9 specific projects included in the infrastructure im10 provement and maintenance plan prepared by the

11 Government of the Republic of the Marshall Islands

12 as part of the strategic framework described in sub13 section (f) of this section.

14 (2) INFRASTRUCTURE MAINTENANCE FUND.—

15 Five percent of the annual public infrastructure

16 grant made available under paragraph (1) of this

17 subsection shall be set aside, with an equal contribu18 tion from the Government of the Republic of the

19 Marshall Islands, as a contribution to an Infrastruc20 ture Maintenance Fund. Administration of the In21 frastructure Maintenance Fund shall be governed by

22 the Fiscal Procedures Agreement.

23 (e) DISASTER ASSISTANCE EMERGENCY FUND.—Of

24 the total grant assistance made available under subsection

25 (a) of this section, an amount of two hundred thousand


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1 dollars ($200,000) shall be provided annually, with an

2 equal contribution from the Government of the Republic

3 of the Marshall Islands, as a contribution to a Disaster

4 Assistance Emergency Fund (‘‘DAEF’’). Any funds from

5 the DAEF may be used only for assistance and rehabilita6 tion resulting from disasters and emergencies. The funds

7 will be accessed upon declaration of a State of Emergency

8 by the Government of the Republic of the Marshall Is9 lands, with the concurrence of the United States Chief of

10 Mission to the Republic of the Marshall Islands. Adminis11 tration of the DAEF shall be governed by the Fiscal Pro12 cedures Agreement.

13 (f) BUDGET AND INVESTMENT FRAMEWORK.—The

14 Government of the Republic of the Marshall Islands shall

15 prepare and maintain an official medium-term budget and

16 investment framework. The framework shall be strategic

17 in nature, shall be continuously reviewed and updated

18 through the annual budget process, and shall make projec19 tions on a multi-year rolling basis. Each of the sectors

20 and areas named in subsections (a), (b), and (d) of this

21 section, or other sectors and areas as mutually agreed,

22 shall be accorded specific treatment in the framework.

23 Those portions of the framework that contemplate the use

24 of United States grant funds shall require the concurrence


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211

1 of both the Government of the United States and the Gov2 ernment of the Republic of the Marshall Islands.

3 Section 212 - Kwajalein Impact and Use

4 The Government of the United States shall provide

5 to the Government of the Republic of the Marshall Islands

6 in conjunction with section 321(a) of the Compact, as

7 amended, and the agreement between the Government of

8 the United States and the Government of the Republic of

9 the Marshall Islands regarding military use and operating

10 rights, a payment in fiscal year 2004 of $15,000,000, with

11 no adjustment for inflation. In fiscal year 2005 and

12 through fiscal year 2013, the annual payment will be the

13 fiscal year 2004 amount ($15,000,000) with an inflation

14 adjustment as provided under section 218. In fiscal year

15 2014, the annual payment will be $18,000,000 (with no

16 adjustment for inflation) or the fiscal year 2013 amount

17 with an inflation adjustment under section 218, whichever

18 is greater. For fiscal year 2015 through fiscal year 2023

19 (and thereafter in accordance with the Agreement between

20 the Government of the United States and the Government

21 of the Republic of the Marshall Islands Regarding Military

22 Use and Operating Rights) the annual payment will be

23 the fiscal year 2014 amount, with an inflation adjustment

24 as provided under section 218.

25 Section 213 - Accountability


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212

1 (a) Regulations and policies normally applicable to

2 United States financial assistance to its state and local

3 governments, as set forth in the Fiscal Procedures Agree4 ment, shall apply to each grant described in section 211,

5 and to grants administered under section 221 below, ex6 cept as modified in the separate agreements referred to

7 in section 231 of this Compact, as amended, or by U.S.

8 law. As set forth in the Fiscal Procedures Agreement, rea9 sonable terms and conditions, including annual perform10 ance indicators that are necessary to ensure effective use

11 of United States assistance and reasonable progress to12 ward achieving program objectives may be attached. In ad13 dition, the United States may seek appropriate remedies

14 for noncompliance with the terms and conditions attached

15 to the assistance, or for failure to comply with section 234,

16 including withholding assistance.

17 (b) The Government of the United States shall, for

18 each fiscal year of the twenty years during which assist19 ance is to be provided on a sector grant basis under sec20 tion 211 (a), grant the Government of the Republic of the

21 Marshall Islands an amount equal to the lesser of (i) one

22 half of the reasonable, properly documented cost incurred

23 during such fiscal year to conduct the annual audit re24 quired under Article VIII (2) of the Fiscal Procedures


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213

1 Agreement or (ii) $500,000. Such amount will not be ad2 justed for inflation under section 218 or otherwise.

3 Section 214 - Joint Economic Management and Financial

4 Accountability Committee

5 The Governments of the United States and the Re6 public of the Marshall Islands shall establish a Joint Eco7 nomic Management and Financial Accountability Com8 mittee, composed of a U.S. chair, two other members from

9 the Government of the United States and two members

10 from the Government of the Republic of the Marshall Is11 lands. The Joint Economic Management and Financial

12 Accountability Committee shall meet at least once each

13 year to review the audits and reports required under this

14 Title and the Fiscal Procedures Agreement, evaluate the

15 progress made by the Republic of the Marshall Islands in

16 meeting the objectives identified in its framework de17 scribed in subsection (f) of section 211, with particular

18 focus on those parts of the framework dealing with the

19 sectors and areas identified in subsection (a) of section

20 211, identify problems encountered, and recommend ways

21 to increase the effectiveness of U.S. assistance made avail22 able under this Title. The establishment and operations

23 of the Joint Economic Management and Financial Ac24 countability Committee shall be governed by the Fiscal

25 Procedures Agreement.


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214

1 Section 215 - Annual Report

2 The Government of the Republic of the Marshall Is3 lands shall report annually to the President of the United

4 States on the use of United States sector grant assistance

5 and other assistance and progress in meeting mutually

6 agreed program and economic goals. The Joint Economic

7 Management and Financial Accountability Committee

8 shall review and comment on the report and make appro9 priate recommendations based thereon.

10 Section 216 - Trust Fund

11 (a) The United States shall contribute annually for

12 twenty years from the effective date of the Compact, as

13 amended, in the amounts set forth in section 217 into a

14 trust fund established in accordance with the Agreement

15 Between the Government of the United States of America

16 and the Government of the Republic of the Marshall Is17 lands Implementing Section 216 and Section 217 of the

18 Compact, as Amended, Regarding a Trust Fund (‘‘Trust

19 Fund Agreement’’), which shall come into effect simulta20 neously with this Compact, as amended. Upon termination

21 of the annual grant assistance under section 211 (a), (d)

22 and (e), the earnings of the fund shall thereafter be used

23 for the purposes described in section 211 or as otherwise

24 mutually agreed.


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215

1 (b) The United States contribution into the Trust

2 Fund described in subsection (a) of this section is condi3 tioned on the Government of the Republic of the Marshall

4 Islands contributing to the Trust Fund at least

5 $25,000,000, on the effective date of the Trust Fund

6 Agreement or on October 1, 2003, whichever is later,

7 $2,500,000 prior to October 1, 2004, and $2,500,000

8 prior to October 1, 2005. Any funds received by the Re9 public of the Marshall Islands under section 111(d) of

10 Public Law 99–239 (January 14, 1986), or successor pro11 visions, would be contributed to the Trust Fund as a Re12 public of the Marshall Islands’ contribution.

13 (c) The terms regarding the investment and manage14 ment of funds and use of the income of the Trust Fund

15 shall be governed by the Trust Fund Agreement. Funds

16 derived from United States investment shall not be subject

17 to Federal or state taxes in the United States or any taxes

18 in the Republic of the Marshall Islands. The Trust Fund

19 Agreement shall also provide for annual reports to the

20 Government of the United States and to the Government

21 of the Republic of the Marshall Islands. The Trust Fund

22 Agreement shall provide for appropriate distributions of

23 trust fund proceeds to the Republic of the Marshall Is24 lands and for appropriate remedies for the failure of the

25 Republic of the Marshall Islands to use income of the


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216

1 Trust Fund for the annual grant purposes set forth in

2 section 211. These remedies may include the return to the

3 United States of the present market value of its contribu4 tions to the Trust Fund and the present market value of

5 any undistributed income on the contributions of the

6 United States. If this Compact, as amended, is termi7 nated, the provisions of sections 451–453 of the Compact,

8 as amended, and the Trust Fund Agreement shall govern

9 treatment of any U.S. contributions to the Trust Fund

10 or accrued income thereon.

11 Section 217 - Annual Grant Funding and Trust Fund

12 Contributions

13 The funds described in sections 211, 212, 213(b),

14 and 216 shall be made available as follows: [In millions of dollars]

Fiscal year Annual Grants

Section 211

Audit Grant

Section 213(b)

Trust Fund Section 216 (a&c)Kwajalein Impact Section 212 Total

2004 ............... 35.2 .5 7 15.0 57.7

2005 ............... 34.7 .5 7.5 15.0 57.7

2006 ............... 34.2 .5 8 15.0 57.7

2007 ............... 33.7 .5 8.5 15.0 57.7

2008 ............... 33.2 .5 9 15.0 57.7

2009 ............... 32.7 .5 9.5 15.0 57.7

2010 ............... 32.2 .5 10 15.0 57.7

2011 ............... 31.7 .5 10.5 15.0 57.7

2012 ............... 31.2 .5 11 15.0 57.7

2013 ............... 30.7 .5 11.5 15.0 57.7

2014 ............... 32.2 .5 12 18.0 62.7

2015 ............... 31.7 .5 12.5 18.0 62.7

2016 ............... 31.2 .5 13 18.0 62.7

2017 ............... 30.7 .5 13.5 18.0 62.7

2018 ............... 30.2 .5 14 18.0 62.7

2019 ............... 29.7 .5 14.5 18.0 62.7

2020 ............... 29.2 .5 15 18.0 62.7

2021 ............... 28.7 .5 15.5 18.0 62.7

2022 ............... 28.2 .5 16 18.0 62.7

2023 ............... 27.7 .5 16.5 18.0 62.7

15 Section 218 - Inflation Adjustment


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217

1 Except as otherwise provided, the amounts stated in

2 this Title shall be adjusted for each United States Fiscal

3 Year by the percent that equals two-thirds of the percent

4 change in the United States Gross Domestic Product Im5 plicit Price Deflator, or 5 percent, whichever is less in any

6 one year, using the beginning of Fiscal Year 2004 as a

7 base.

8 Section 219 - Carry-Over of Unused Funds

9 If in any year the funds made available by the Gov10 ernment of the United States for that year pursuant to

11 this Article are not completely obligated by the Govern12 ment of the Republic of the Marshall Islands, the unobli13 gated balances shall remain available in addition to the

14 funds to be provided in subsequent years.

15 Article II

16 Services and Program Assistance

17 Section 221

18 (a) SERVICES.—The Government of the United

19 States shall make available to the Republic of the Marshall

20 Islands, in accordance with and to the extent provided in

21 the Federal Programs and Services Agreement referred to

22 in Section 231, the services and related programs of:

23 (1) the United States Weather Service;

24 (2) the United States Postal Service;


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218

1 (3) the United States Federal Aviation Admin2 istration;

3 (4) the United States Department of Transpor4 tation; and

5 (5) the Department of Homeland Security, and

6 the United States Agency for International Develop7 ment, Office of Foreign Disaster Assistance.

8 Upon the effective date of this Compact, as amended, the

9 United States Departments and Agencies named or having

10 responsibility to provide these services and related pro11 grams shall have the authority to implement the relevant

12 provisions of the Federal Programs and Services Agree13 ment referred to in section 231.

14 (b) PROGRAMS.—

15 (1) Other than the services and programs cov16 ered by subsection (a) of this section, and to the ex17 tent authorized by the Congress of the United

18 States, the Government of the United States shall

19 make available to the Republic of the Marshall Is20 lands the services and programs that were available

21 to the Republic of the Marshall Islands on the effec22 tive date of this Compact, as amended, to the extent

23 that such services and programs continue to be

24 available to State and local governments of the

25 United States. As set forth in the Fiscal Procedures


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219

1 Agreement, funds provided under subsection (a) of

2 section 211 shall be considered to be local revenues

3 of the Government of the Republic of the Marshall

4 Islands when used as the local share required to ob5 tain Federal programs and services.

6 (2) Unless provided otherwise by U.S. law, the

7 services and programs described in paragraph (1) of

8 this subsection shall be extended in accordance with

9 the terms of the Federal Programs and Services

10 Agreement.

11 (c) The Government of the United States shall have

12 and exercise such authority as is necessary to carry out

13 its responsibilities under this Title and the Federal Pro14 grams and Services Agreement, including the authority to

15 monitor and administer all service and program assistance

16 provided by the United States to the Republic of the Mar17 shall Islands. The Federal Programs and Services Agree18 ment shall also set forth the extent to which services and

19 programs shall be provided to the Republic of the Marshall

20 Islands.

21 (d) Except as provided elsewhere in this Compact, as

22 amended, under any separate agreement entered into

23 under this Compact, as amended, or otherwise under U.S.

24 law, all Federal domestic programs extended to or oper25 ating in the Republic of the Marshall Islands shall be subVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00224 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ject to all applicable criteria, standards, reporting require2 ments, auditing procedures, and other rules and regula3 tions applicable to such programs and services when oper4 ating in the United States.

5 (e) The Government of the United States shall make

6 available to the Republic of the Marshall Islands alternate

7 energy development projects, studies, and conservation

8 measures to the extent provided for the Freely Associated

9 States in the laws of the United States.

10 Section 222

11 The Government of the United States and the Gov12 ernment of the Republic of the Marshall Islands may agree

13 from time to time to extend to the Republic of the Mar14 shall Islands additional United States grant assistance,

15 services and programs, as provided under the laws of the

16 United States. Unless inconsistent with such laws, or oth17 erwise specifically precluded by the Government of the

18 United States at the time such additional grant assistance,

19 services, or programs are extended, the Federal Programs

20 and Services Agreement shall apply to any such assist21 ance, services or programs.

22 Section 223

23 The Government of the Republic of the Marshall Is24 lands shall make available to the Government of the

25 United States at no cost such land as may be necessary


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221

1 for the operations of the services and programs provided

2 pursuant to this Article, and such facilities as are provided

3 by the Government of the Republic of the Marshall Islands

4 at no cost to the Government of the United States as of

5 the effective date of this Compact, as amended, or as may

6 be mutually agreed thereafter.

7 Section 224

8 The Government of the Republic of the Marshall Is9 lands may request, from the time to time, technical assist10 ance from the Federal agencies and institutions of the

11 Government of the United States, which are authorized

12 to grant such technical assistance in accordance with its

13 laws. If technical assistance is granted pursuant to such

14 a request, the Government of the United States shall pro15 vide the technical assistance in a manner which gives pri16 ority consideration to the Republic of the Marshall Islands

17 over other recipients not a part of the United States, its

18 territories or possessions, and equivalent consideration to

19 the Republic of the Marshall Islands with respect to other

20 states in Free Association with the United States. Such

21 assistance shall be made available on a reimbursable or

22 non-reimbursable basis to the extent provided by United

23 States law.


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1 Article III

2 Administrative Provisions

3 Section 231

4 The specific nature, extent and contractual arrange5 ments of the services and programs provided for in section

6 221 of this Compact, as amended, as well as the legal sta7 tus of agencies of the Government of the United States,

8 their civilian employees and contractors, and the depend9 ents of such personnel while present in the Republic of

10 the Marshall Islands, and other arrangements in connec11 tion with the assistance, services, or programs furnished

12 by the Government of the United States, are set forth in

13 a Federal Programs and Services Agreement which shall

14 come into effect simultaneously with this Compact, as

15 amended.

16 Section 232

17 The Government of the United States, in consultation

18 with the Government of the Republic of the Marshall Is19 lands, shall determine and implement procedures for the

20 periodic audit of all grants and other assistance made

21 under Article I of this Title and of all funds expended for

22 the services and programs provided under Article II of this

23 Title. Further, in accordance with the Fiscal Procedures

24 Agreement described in subsection (a) of section 211, the

25 Comptroller General of the United States shall have such


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223

1 powers and authorities as described in sections 103(m)

2 and 110(c) of Public Law 99–239, 99 Stat. 1777–78, and

3 99 Stat. 1799 (January 14, 1986).

4 Section 233

5 Approval of this Compact, as amended, by the Gov6 ernment of the United States, in accordance with its con7 stitutional processes, shall constitute a pledge by the

8 United States that the sums and amounts specified as

9 grants in section 211 of this Compact, as amended, shall

10 be appropriated and paid to the Republic of the Marshall

11 Islands for such period as those provisions of this Com12 pact, as amended, remain in force, provided that the Re13 public of the Marshall Islands complies with the terms and

14 conditions of this Title and related subsidiary agreements.

15 Section 234

16 The Government of the Republic of the Marshall Is17 lands pledges to cooperate with, permit, and assist if rea18 sonably requested, designated and authorized representa19 tives of the Government of the United States charged with

20 investigating whether Compact funds, or any other assist21 ance authorized under this Compact, as amended, have,

22 or are being, used for purposes other than those set forth

23 in this Compact, as amended, or its subsidiary agree24 ments. In carrying out this investigative authority, such

25 United States Government representatives may request


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224

1 that the Government of the Republic of the Marshall Is2 lands subpoena documents and records and compel testi3 mony in accordance with the laws and Constitution of the

4 Republic of the Marshall Islands. Such assistance by the

5 Government of the Republic of the Marshall Islands to the

6 Government of the United States shall not be unreason7 ably withheld. The obligation of the Government of the

8 Marshall Islands to fulfill its pledge herein is a condition

9 to its receiving payment of such funds or other assistance

10 authorized under this Compact, as amended. The Govern11 ment of the United States shall pay any reasonable costs

12 for extraordinary services executed by the Government of

13 the Marshall Islands in carrying out the provisions of this

14 section.

15 Article IV

16 Trade

17 Section 241

18 The Republic of the Marshall Islands is not included

19 in the customs territory of the United States.

20 Section 242

21 The President shall proclaim the following tariff

22 treatment for articles imported from the Republic of the

23 Marshall Islands which shall apply during the period of

24 effectiveness of this title:


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225

1 (a) Unless otherwise excluded, articles imported

2 from the Republic of the Marshall Islands, subject to

3 the limitations imposed under section 503(b) of title

4 V of the Trade Act of 1974 (19 U.S.C. 2463(b)),

5 shall be exempt from duty.

6 (b) Only tuna in airtight containers provided

7 for in heading 1604.14.22 of the Harmonized Tariff

8 Schedule of the United States that is imported from

9 the Republic of the Marshall Islands and the Fed10 erated States of Micronesia during any calendar

11 year not to exceed 10 percent of apparent United

12 States consumption of tuna in airtight containers

13 during the immediately preceding calendar year, as

14 reported by the National Marine Fisheries Service,

15 shall be exempt from duty; but the quantity of tuna

16 given duty-free treatment under this paragraph for

17 any calendar year shall be counted against the ag18 gregated quantity of tuna in airtight containers that

19 is dutiable under rate column numbered 1 of such

20 heading 1604.14.22 for that calendar year.

21 (c) The duty-free treatment provided under

22 subsection (a) shall not apply to:

23 (1) watches, clocks, and timing apparatus

24 provided for in Chapter 91, excluding heading


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226

1 9113, of the Harmonized Tariff Schedule of the

2 United States;

3 (2) buttons (whether finished or not fin4 ished) provided for in items 9606.21.40 and

5 9606.29.20 of such Schedule;

6 (3) textile and apparel articles which are

7 subject to textile agreements; and

8 (4) footwear, handbags, luggage, flat

9 goods, work gloves, and leather wearing apparel

10 which were not eligible articles for purposes of

11 title V of the Trade Act of 1974 (19 U.S.C.

12 2461, et seq.) on April 1, 1984.

13 (d) If the cost or value of materials produced

14 in the customs territory of the United States is in15 cluded with respect to an eligible article which is a

16 product of the Republic of the Marshall Islands, an

17 amount not to exceed 15 percent of the appraised

18 value of the article at the time it is entered that is

19 attributable to such United States cost or value may

20 be applied for duty assessment purposes toward de21 termining the percentage referred to in section

22 503(a)(2) of title V of the Trade Act of 1974.

23 Section 243


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227

1 Articles imported from the Republic of the Marshall

2 Islands which are not exempt from duty under subsections

3 (a), (b), (c), and

4 (d) of section 242 shall be subject to the rates of duty

5 set forth in column numbered 1-general of the Har6 monized Tariff Schedule of the United States (HTSUS).

7 Section 244

8 (a) All products of the United States imported into

9 the Republic of the Marshall Islands shall receive treat10 ment no less favorable than that accorded like products

11 of any foreign country with respect to customs duties or

12 charges of a similar nature and with respect to laws and

13 regulations relating to importation, exportation, taxation,

14 sale, distribution, storage or use.

15 (b) The provisions of subsection (a) shall not apply

16 to advantages accorded by the Republic of the Marshall

17 Islands by virtue of their full membership in the Pacific

18 Island Countries Trade Agreement (PICTA), done on Au19 gust, 18, 2001, to those governments listed in Article 26

20 of PICTA, as of the date the Compact, as amended, is

21 signed.

22 (c) Prior to entering into consultations on, or con23 cluding, a free trade agreement with governments not list24 ed in Article 26 of PICTA, the Republic of the Marshall

25 Islands shall consult with the United States regarding


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1 whether or how subsection (a) of section 244 shall be ap2 plied.

3 Article V

4 Finance and Taxation

5 Section 251

6 The currency of the United States is the official cir7 culating legal tender of the Republic of the Marshall Is8 lands. Should the Government of the Republic of the Mar9 shall Islands act to institute another currency, the terms

10 of an appropriate currency transitional period shall be as

11 agreed with the Government of the United States.

12 Section 252

13 The Government of the Republic of the Marshall Is14 lands may, with respect to United States persons, tax in15 come derived from sources within its respective jurisdic16 tion, property situated therein, including transfers of such

17 property by gift or at death, and products consumed there18 in, in such manner as the Government of the Republic of

19 the Marshall Islands deems appropriate. The determina20 tion of the source of any income, or the situs of any prop21 erty, shall for purposes of this Compact, as amended, be

22 made according to the United States Internal Revenue

23 Code.

24 Section 253


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229

1 A citizen of the Republic of the Marshall Islands,

2 domiciled therein, shall be exempt from estate, gift, and

3 generation-skipping transfer taxes imposed by the Govern4 ment of the United States, provided that such citizen of

5 the Republic of the Marshall Islands is neither a citizen

6 nor a resident of the United States.

7 Section 254

8 (a) In determining any income tax imposed by the

9 Government of the Republic of the Marshall Islands, the

10 Government of the Republic of the Marshall Islands shall

11 have authority to impose tax upon income derived by a

12 resident of the Republic of the Marshall Islands from

13 sources without the Republic of the Marshall Islands, in

14 the same manner and to the same extent as the Govern15 ment of the Republic of the Marshall Islands imposes tax

16 upon income derived from within its own jurisdiction. If

17 the Government of the Republic of the Marshall Islands

18 exercises such authority as provided in this subsection,

19 any individual resident of the Republic of the Marshall Is20 lands who is subject to tax by the Government of the

21 United States on income which is also taxed by the Gov22 ernment of the Republic of the Marshall Islands shall be

23 relieved of liability to the Government of the United States

24 for the tax which, but for this subsection, would otherwise

25 be imposed by the Government of the United States on


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230

1 such income. However, the relief from liability to the

2 United States Government referred to in the preceding

3 sentence means only relief in the form of the foreign tax

4 credit (or deduction in lieu thereof) available with respect

5 to the income taxes of a possession of the United States,

6 and relief in the form of the exclusion under section 911

7 of the Internal Revenue Code of 1986. For purposes of

8 this section, the term ‘‘resident of the Republic of the

9 Marshall Islands’’ shall be deemed to include any person

10 who was physically present in the Republic of the Marshall

11 Islands for a period of 183 or more days during any tax12 able year.

13 (b) If the Government of the Republic of the Marshall

14 Islands subjects income to taxation substantially similar

15 to that which was imposed by the Trust Territory Code

16 in effect on January 1, 1980, such Government shall be

17 deemed to have exercised the authority described in sec18 tion 254(a).

19 Section 255

20 For purposes of section 274(h)(3)(A) of the U.S. In21 ternal Revenue Code of 1986, the term ‘‘North American

22 Area’’ shall include the Republic of the Marshall Islands.


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231

1 TITLE THREE

2 SECURITY AND DEFENSE RELATIONS

3 Article I

4 Authority and Responsibility

5 Section 311

6 (a) The Government of the United States has full au7 thority and responsibility for security and defense matters

8 in or relating to the Republic of the Marshall Islands.

9 (b) This authority and responsibility includes:

10 (1) the obligation to defend the Republic of the

11 Marshall Islands and its people from attack or

12 threats thereof as the United States and its citizens

13 are defended;

14 (2) the option to foreclose access to or use of

15 the Republic of the Marshall Islands by military per16 sonnel or for the military purposes of any third

17 country; and

18 (3) the option to establish and use military

19 areas and facilities in the Republic of the Marshall

20 Islands, subject to the terms of the separate agree21 ments referred to in sections 321 and 323.

22 (c) The Government of the United States confirms

23 that it shall act in accordance with the principles of inter24 national law and the Charter of the United Nations in the

25 exercise of this authority and responsibility.


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232

1 Section 312

2 Subject to the terms of any agreements negotiated

3 in accordance with sections 321 and 323, the Government

4 of the United States may conduct within the lands, waters

5 and airspace of the Republic of the Marshall Islands the

6 activities and operations necessary for the exercise of its

7 authority and responsibility under this Title.

8 Section 313

9 (a) The Government of the Republic of the Marshall

10 Islands shall refrain from actions that the Government of

11 the United States determines, after appropriate consulta12 tion with that Government, to be incompatible with its au13 thority and responsibility for security and defense matters

14 in or relating to the Republic of the Marshall Islands.

15 (b) The consultations referred to in this section shall

16 be conducted expeditiously at senior levels of the two Gov17 ernments, and the subsequent determination by the Gov18 ernment of the United States referred to in this section

19 shall be made only at senior interagency levels of the Gov20 ernment of the United States.

21 (c) The Government of the Republic of the Marshall

22 Islands shall be afforded, on an expeditious basis, an op23 portunity to raise its concerns with the United States Sec24 retary of State personally and the United States Secretary


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233

1 of Defense personally regarding any determination made

2 in accordance with this section.

3 Section 314

4 (a) Unless otherwise agreed, the Government of the

5 United States shall not, in the Republic of the Marshall

6 Islands:

7 (1) test by detonation or dispose of any nuclear

8 weapon, nor test, dispose of, or discharge any toxic

9 chemical or biological weapon; or

10 (2) test, dispose of, or discharge any other ra11 dioactive, toxic chemical or biological materials in an

12 amount or manner that would be hazardous to pub13 lic health or safety.

14 (b) Unless otherwise agreed, other than for transit

15 or overflight purposes or during time of a national emer16 gency declared by the President of the United States, a

17 state of war declared by the Congress of the United States

18 or as necessary to defend against an actual or impending

19 armed attack on the United States, the Republic of the

20 Marshall Islands or the Federated States of Micronesia,

21 the Government of the United States shall not store in

22 the Republic of the Marshall Islands or the Federated

23 States of Micronesia any toxic chemical weapon, nor any

24 radioactive materials nor any toxic chemical materials in25 tended for weapons use.


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1 (c) Radioactive, toxic chemical, or biological materials

2 not intended for weapons use shall not be affected by sec3 tion 314(b).

4 (d) No material or substance referred to in this sec5 tion shall be stored in the Republic of the Marshall Islands

6 except in an amount and manner which would not be haz7 ardous to public health or safety. In determining what

8 shall be an amount or manner which would be hazardous

9 to public health or safety under this section, the Govern10 ment of the United States shall comply with any applicable

11 mutual agreement, international guidelines accepted by

12 the Government of the United States, and the laws of the

13 United States and their implementing regulations.

14 (e) Any exercise of the exemption authority set forth

15 in section 161(e) shall have no effect on the obligations

16 of the Government of the United States under this section

17 or on the application of this subsection.

18 (f) The provisions of this section shall apply in the

19 areas in which the Government of the Republic of the Mar20 shall Islands exercises jurisdiction over the living resources

21 of the seabed, subsoil or water column adjacent to its

22 coasts.

23 Section 315

24 The Government of the United States may invite

25 members of the armed forces of other countries to use


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1 military areas and facilities in the Republic of the Mar2 shall Islands, in conjunction with and under the control

3 of United States Armed Forces. Use by units of the armed

4 forces of other countries of such military areas and facili5 ties, other than for transit and overflight purposes, shall

6 be subject to consultation with and, in the case of major

7 units, approval of the Government of the Republic of the

8 Marshall Islands.

9 Section 316

10 The authority and responsibility of the Government

11 of the United States under this Title may not be trans12 ferred or otherwise assigned.

13 Article II

14 Defense Facilities and Operating Rights

15 Section 321

16 (a) Specific arrangements for the establishment and

17 use by the Government of the United States of military

18 areas and facilities in the Republic of the Marshall Islands

19 are set forth in separate agreements, which shall remain

20 in effect in accordance with the terms of such agreements.

21 (b) If, in the exercise of its authority and responsi22 bility under this Title, the Government of the United

23 States requires the use of areas within the Republic of

24 the Marshall Islands in addition to those for which specific

25 arrangements are concluded pursuant to section 321(a),


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1 it may request the Government of the Republic of the Mar2 shall Islands to satisfy those requirements through leases

3 or other arrangements. The Government of the Republic

4 of the Marshall Islands shall sympathetically consider any

5 such request and shall establish suitable procedures to dis6 cuss it with and provide a prompt response to the Govern7 ment of the United States.

8 (c) The Government of the United States recognizes

9 and respects the scarcity and special importance of land

10 in the Republic of the Marshall Islands. In making any

11 requests pursuant to section 321(b), the Government of

12 the United States shall follow the policy of requesting the

13 minimum area necessary to accomplish the required secu14 rity and defense purpose, of requesting only the minimum

15 interest in real property necessary to support such pur16 pose, and of requesting first to satisfy its requirement

17 through public real property, where available, rather than

18 through private real property.

19 Section 322

20 The Government of the United States shall provide

21 and maintain fixed and floating aids to navigation in the

22 Republic of the Marshall Islands at least to the extent nec23 essary for the exercise of its authority and responsibility

24 under this Title.

25 Section 323


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1 The military operating rights of the Government of

2 the United States and the legal status and contractual ar3 rangements of the United States Armed Forces, their

4 members, and associated civilians, while present in the Re5 public of the Marshall Islands are set forth in separate

6 agreements, which shall remain in effect in accordance

7 with the terms of such agreements.

8 Article III

9 Defense Treaties and International Security Agreements

10 Section 331

11 Subject to the terms of this Compact, as amended,

12 and its related agreements, the Government of the United

13 States, exclusively, has assumed and enjoys, as to the Re14 public of the Marshall Islands, all obligations, responsibil15 ities, rights and benefits of:

16 (a) Any defense treaty or other international se17 curity agreement applied by the Government of the

18 United States as Administering Authority of the

19 Trust Territory of the Pacific Islands as of October

20 20, 1986.

21 (b) Any defense treaty or other international se22 curity agreement to which the Government of the

23 United States is or may become a party which it de24 termines to be applicable in the Republic of the Mar25 shall Islands. Such a determination by the GovernVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00242 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 ment of the United States shall be preceded by ap2 propriate consultation with the Government of the

3 Republic of the Marshall Islands.

4 Article IV

5 Service in Armed Forces of the United States

6 Section 341

7 Any person entitled to the privileges set forth in Sec8 tion 141 (with the exception of any person described in

9 section 141(a)(5) who is not a citizen of the Republic of

10 the Marshall Islands) shall be eligible to volunteer for serv11 ice in the Armed Forces of the United States, but shall

12 not be subject to involuntary induction into military serv13 ice of the United States as long as such person has resided

14 in the United States for a period of less than one year,

15 provided that no time shall count towards this one year

16 while a person admitted to the United States under the

17 Compact, or the Compact, as amended, is engaged in full18 time study in the United States. Any person described in

19 section 141(a)(5) who is not a citizen of the Republic of

20 the Marshall Islands shall be subject to United States laws

21 relating to selective service.

22 Section 342

23 The Government of the United States shall have en24 rolled, at any one time, at least one qualified student from

25 the Republic of the Marshall Islands, as may be nominated


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1 by the Government of the Republic of the Marshall Is2 lands, in each of:

3 (a) The United States Coast Guard Academy

4 pursuant to 14 U.S.C. 195.

5 (b) The United States Merchant Marine Acad6 emy pursuant to 46 U.S.C. 1295(b)(6), provided

7 that the provisions of 46 U.S.C. 1295b(b)(6)(C)

8 shall not apply to the enrollment of students pursu9 ant to section 342(b) of this Compact, as amended.

10 Article V

11 General Provisions

12 Section 351

13 (a) The Government of the United States and the

14 Government of the Republic of the Marshall Islands shall

15 continue to maintain a Joint Committee empowered to

16 consider disputes arising under the implementation of this

17 Title and its related agreements.

18 (b) The membership of the Joint Committee shall

19 comprise selected senior officials of the two Governments.

20 The senior United States military commander in the Pa21 cific area shall be the senior United States member of the

22 Joint Committee. For the meetings of the Joint Com23 mittee, each of the two Governments may designate addi24 tional or alternate representatives as appropriate for the

25 subject matter under consideration.


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1 (c) Unless otherwise mutually agreed, the Joint Com2 mittee shall meet annually at a time and place to be des3 ignated, after appropriate consultation, by the Govern4 ment of the United States. The Joint Committee also shall

5 meet promptly upon request of either of its members. The

6 Joint Committee shall follow such procedures, including

7 the establishment of functional subcommittees, as the

8 members may from time to time agree. Upon notification

9 by the Government of the United States, the Joint Com10 mittee of the United States and the Republic of the Mar11 shall Islands shall meet promptly in a combined session

12 with the Joint Committee established and maintained by

13 the Government of the United States and the Government

14 of the Federated States of Micronesia to consider matters

15 within the jurisdiction of the two Joint Committees.

16 (d) Unresolved issues in the Joint Committee shall

17 be referred to the Governments for resolution, and the

18 Government of the Republic of the Marshall Islands shall

19 be afforded, on an expeditious basis, an opportunity to

20 raise its concerns with the United States Secretary of De21 fense personally regarding any unresolved issue which

22 threatens its continued association with the Government

23 of the United States.

24 Section 352


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1 In the exercise of its authority and responsibility

2 under Title Three, the Government of the United States

3 shall accord due respect to the authority and responsibility

4 of the Government of the Republic of the Marshall Islands

5 under Titles One, Two and Four and to the responsibility

6 of the Government of the Republic of the Marshall Islands

7 to assure the well-being of its people.

8 Section 353

9 (a) The Government of the United States shall not

10 include the Government of the Republic of the Marshall

11 Islands as a named party to a formal declaration of war,

12 without that Government’s consent.

13 (b) Absent such consent, this Compact, as amended,

14 is without prejudice, on the ground of belligerence or the

15 existence of a state of war, to any claims for damages

16 which are advanced by the citizens, nationals or Govern17 ment of the Republic of the Marshall Islands, which arise

18 out of armed conflict subsequent to October 21, 1986, and

19 which are:

20 ø(5)¿ petitions to the Government of the

21 United States for redress; or

22 ø(6)¿ claims in any manner against the govern23 ment, citizens, nationals or entities of any third

24 country.


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1 (c) Petitions under section 353(b)(1) shall be treated

2 as if they were made by citizens of the United States.

3 Section 354

4 (a) The Government of the United States and the

5 Government of the Republic of the Marshall Islands are

6 jointly committed to continue their security and defense

7 relations, as set forth in this Title. Accordingly, it is the

8 intention of the two countries that the provisions of this

9 Title shall remain binding as long as this Compact, as

10 amended, remains in effect, and thereafter as mutually

11 agreed, unless earlier terminated by mutual agreement

12 pursuant to section 441, or amended pursuant to Article

13 III of Title Four. If at any time the Government of the

14 United States, or the Government of the Republic of the

15 Marshall Islands, acting unilaterally, terminates this Title,

16 such unilateral termination shall be considered to be ter17 mination of the entire Compact, as amended, in which case

18 the provisions of section 442 and 452 (in the case of ter19 mination by the Government of the United States) or sec20 tions 443 and 453 (in the case of termination by the Gov21 ernment of the Republic of the Marshall Islands), with the

22 exception of paragraph (3) of subsection (a) of section 452

23 or paragraph (3) of subsection (a) of section 453, as the

24 case may be, shall apply.


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1 (b) The Government of the United States recognizes,

2 in view of the special relationship between the Government

3 of the United States and the Government of the Republic

4 of the Marshall Islands, and in view of the existence of

5 the separate agreement regarding mutual security con6 cluded with the Government of the Republic of the Mar7 shall Islands pursuant to sections 321 and 323, that, even

8 if this Title should terminate, any attack on the Republic

9 of the Marshall Islands during the period in which such

10 separate agreement is in effect, would constitute a threat

11 to the peace and security of the entire region and a danger

12 to the United States. In the event of such an attack, the

13 Government of the United States would take action to

14 meet the danger to the United States and to the Republic

15 of the Marshall Islands in accordance with its constitu16 tional processes.

17 (c) As reflected in Article 21(1)(b) of the Trust Fund

18 Agreement, the Government of the United States and the

19 Government of the Republic of the Marshall Islands fur20 ther recognize, in view of the special relationship between

21 their countries, that even if this Title should terminate,

22 the Government of Republic of the Marshall Islands shall

23 refrain from actions which the Government of the United

24 States determines, after appropriate consultation with

25 that Government, to be incompatible with its authority


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1 and responsibility for security and defense matters in or

2 relating to the Republic of the Marshall Islands or the

3 Federated States of Micronesia.

4 TITLE FOUR

5 GENERAL PROVISIONS

6 Article I

7 Approval and Effective Date

8 Section 411

9 Pursuant to section 432 of the Compact and subject

10 to subsection (e) of section 461 of the Compact, as amend11 ed, the Compact, as amended, shall come into effect upon

12 mutual agreement between the Government of the United

13 States and the Government of the Republic of the Mar14 shall Islands subsequent to completion of the following:

15 (a) Approval by the Government of the Repub16 lic of the Marshall Islands in accordance with its

17 constitutional processes.

18 (b) Approval by the Government of the United

19 States in accordance with its constitutional proc20 esses.

21 Article II

22 Conference and Dispute Resolution

23 Section 421

24 The Government of the United States shall confer

25 promptly at the request of the Government of the Republic


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1 of the Marshall Islands and that Government shall confer

2 promptly at the request of the Government of the United

3 States on matters relating to the provisions of this Com4 pact, as amended, or of its related agreements.

5 Section 422

6 In the event the Government of the United States or

7 the Government of the Republic of the Marshall Islands,

8 after conferring pursuant to section 421, determines that

9 there is a dispute and gives written notice thereof, the two

10 Governments shall make a good faith effort to resolve the

11 dispute between themselves.

12 Section 423

13 If a dispute between the Government of the United

14 States and the Government of the Republic of the Mar15 shall Islands cannot be resolved within 90 days of written

16 notification in the manner provided in section 422, either

17 party to the dispute may refer it to arbitration in accord18 ance with section 424.

19 Section 424

20 Should a dispute be referred to arbitration as pro21 vided for in section 423, an Arbitration Board shall be

22 established for the purpose of hearing the dispute and ren23 dering a decision which shall be binding upon the two par24 ties to the dispute unless the two parties mutually agree


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1 that the decision shall be advisory. Arbitration shall occur

2 according to the following terms:

3 (a) An Arbitration Board shall consist of a

4 Chairman and two other members, each of whom

5 shall be a citizen of a party to the dispute. Each of

6 the two Governments that is a party to the dispute

7 shall appoint one member to the Arbitration Board.

8 If either party to the dispute does not fulfill the ap9 pointment requirements of this section within 30

10 days of referral of the dispute to arbitration pursu11 ant to section 423, its member on the Arbitration

12 Board shall be selected from its own standing list by

13 the other party to the dispute. Each Government

14 shall maintain a standing list of 10 candidates. The

15 parties to the dispute shall jointly appoint a Chair16 man within 15 days after selection of the other

17 members of the Arbitration Board. Failing agree18 ment on a Chairman, the Chairman shall be chosen

19 by lot from the standing lists of the parties to the

20 dispute within 5 days after such failure.

21 (b) Unless otherwise provided in this Compact,

22 as amended, or its related agreements, the Arbitra23 tion Board shall have jurisdiction to hear and render

24 its final determination on all disputes arising exclu25 sively under Articles I, II, III, IV and V of Title


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1 One, Title Two, Title Four, and their related agree2 ments.

3 (c) Each member of the Arbitration Board shall

4 have one vote. Each decision of the Arbitration

5 Board shall be reached by majority vote.

6 (d) In determining any legal issue, the Arbitra7 tion Board may have reference to international law

8 and, in such reference, shall apply as guidelines the

9 provisions set forth in Article 38 of the Statute of

10 the International Court of Justice.

11 (e) The Arbitration Board shall adopt such

12 rules for its proceedings as it may deem appropriate

13 and necessary, but such rules shall not contravene

14 the provisions of this Compact, as amended. Unless

15 the parties provide otherwise by mutual agreement,

16 the Arbitration Board shall endeavor to render its

17 decision within 30 days after the conclusion of argu18 ments. The Arbitration Board shall make findings of

19 fact and conclusions of law and its members may

20 issue dissenting or individual opinions. Except as

21 may be otherwise decided by the Arbitration Board,

22 one-half of all costs of the arbitration shall be borne

23 by the Government of the United States and the re24 mainder shall be borne by the Government of the

25 Republic of the Marshall Islands.


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1 Article III

2 Amendment

3 Section 431

4 The provisions of this Compact, as amended, may be

5 further amended by mutual agreement of the Government

6 of the United States and the Government of the Republic

7 of the Marshall Islands, in accordance with their respec8 tive constitutional processes.

9 Article IV

10 Termination

11 Section 441

12 This Compact, as amended, may be terminated by

13 mutual agreement of the Government of the Republic of

14 the Marshall Islands and the Government of the United

15 States, in accordance with their respective constitutional

16 processes. Such mutual termination of this Compact, as

17 amended, shall be without prejudice to the continued ap18 plication of section 451 of this Compact, as amended, and

19 the provisions of the Compact, as amended, set forth

20 therein.

21 Section 442

22 Subject to section 452, this Compact, as amended,

23 may be terminated by the Government of the United

24 States in accordance with its constitutional processes.

25 Such termination shall be effective on the date specified


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1 in the notice of termination by the Government of the

2 United States but not earlier than six months following

3 delivery of such notice. The time specified in the notice

4 of termination may be extended. Such termination of this

5 Compact, as amended, shall be without prejudice to the

6 continued application of section 452 of this Compact, as

7 amended, and the provisions of the Compact, as amended,

8 set forth therein.

9 Section 443

10 This Compact, as amended, shall be terminated by

11 the Government of the Republic of the Marshall Islands,

12 pursuant to its constitutional processes, subject to section

13 453 if the people represented by that Government vote in

14 a plebiscite to terminate the Compact. The Government

15 of the Republic of the Marshall Islands shall notify the

16 Government of the United States of its intention to call

17 such a plebiscite, which shall take place not earlier than

18 three months after delivery of such notice. The plebiscite

19 shall be administered by the Government of the Republic

20 of the Marshall Islands in accordance with its constitu21 tional and legislative processes, but the Government of the

22 United States may send its own observers and invite ob23 servers from a mutually agreed party. If a majority of the

24 valid ballots cast in the plebiscite favors termination, the

25 Government of the Republic of the Marshall Islands shall,


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1 upon certification of the results of the plebiscite, give no2 tice of termination to the Government of the United

3 States, such termination to be effective on the date speci4 fied in such notice but not earlier than three months fol5 lowing the date of delivery of such notice. The time speci6 fied in the notice of termination may be extended.

7 Article V

8 Survivability

9 Section 451

10 (a) Should termination occur pursuant to section

11 441, economic and other assistance by the Government of

12 the United States shall continue only if and as mutually

13 agreed by the Governments of the United States and the

14 Republic of the Marshall Islands, and in accordance with

15 the countries’ respective constitutional processes.

16 (b) In view of the special relationship of the United

17 States and the Republic of the Marshall Islands, as re18 flected in subsections (b) and (c) of section 354 of this

19 Compact, as amended, and the separate agreement en20 tered into consistent with those subsections, if termination

21 occurs pursuant to section 441 prior to the twentieth anni22 versary of the effective date of this Compact, as amended,

23 the United States shall continue to make contributions to

24 the Trust Fund described in section 216 of this Compact,

25 as amended.


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1 (c) In view of the special relationship of the United

2 States and the Republic of the Marshall Islands described

3 in subsection (b) of this section, if termination occurs pur4 suant to section 441 following the twentieth anniversary

5 of the effective date of this Compact, as amended, the Re6 public of the Marshall Islands shall be entitled to receive

7 proceeds from the Trust Fund described in section 216

8 of this Compact, as amended, in the manner described in

9 those provisions and the Trust Fund Agreement.

10 Section 452

11 (a) Should termination occur pursuant to section 442

12 prior to the twentieth anniversary of the effective date of

13 this Compact, as amended, the following provisions of this

14 amended Compact shall remain in full force and effect

15 until the twentieth anniversary of the effective date of this

16 Compact, as amended, and thereafter as mutually agreed:

17 (1) Article VI and sections 172, 173, 176 and

18 177 of Title One;

19 (2) Article One and sections 232 and 234 of

20 Title Two;

21 (3) Title Three; and

22 (4) Articles II, III, V and VI of Title Four.

23 (b) Should termination occur pursuant to section 442

24 before the twentieth anniversary of the effective date of

25 this Compact, as amended:


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1 (1) Except as provided in paragraph (2) of this

2 subsection and subsection (c) of this section, eco3 nomic and other assistance by the United States

4 shall continue only if and as mutually agreed by the

5 Governments of the United States and the Republic

6 of the Marshall Islands.

7 (2) In view of the special relationship of the

8 United States and the Republic of the Marshall Is9 lands, as reflected in subsections (b) and (c) of sec10 tion 354 of this Compact, as amended, and the sepa11 rate agreement regarding mutual security, and the

12 Trust Fund Agreement, the United States shall con13 tinue to make contributions to the Trust Fund de14 scribed in section 216 of this Compact, as amended,

15 in the manner described in the Trust Fund Agree16 ment.

17 (c) In view of the special relationship of the United

18 States and the Republic of the Marshall Islands, as re19 flected in subsections 354(b) and (c) of this Compact, as

20 amended, and the separate agreement regarding mutual

21 security, and the Trust Fund Agreement, if termination

22 occurs pursuant to section 442 following the twentieth an23 niversary of the effective date of this Compact, as amend24 ed, the Republic of the Marshall Islands shall continue to

25 be eligible to receive proceeds from the Trust Fund deVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00257 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 scribed in section 216 of this Compact, as amended, in

2 the manner described in those provisions and the Trust

3 Fund Agreement.

4 Section 453

5 (a) Should termination occur pursuant to section 443

6 prior to the twentieth anniversary of the effective date of

7 this Compact, as amended, the following provisions of this

8 Compact, as amended, shall remain in full force and effect

9 until the twentieth anniversary of the effective date of this

10 Compact, as amended, and thereafter as mutually agreed:

11 (1) Article VI and sections 172, 173, 176 and

12 177 of Title One;

13 (2) Sections 232 and 234 of Title Two;

14 (3) Title Three; and

15 (4) Articles II, III, V and VI of Title Four.

16 (b) Upon receipt of notice of termination pursuant

17 to section 443, the Government of the United States and

18 the Government of the Republic of the Marshall Islands

19 shall promptly consult with regard to their future relation20 ship. Except as provided in subsections (c) and (d) of this

21 section, these consultations shall determine the level of

22 economic and other assistance, if any, which the Govern23 ment of the United States shall provide to the Government

24 of the Republic of the Marshall Islands for the period end25 ing on the twentieth anniversary of the effective date of


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1 this Compact, as amended, and for any period thereafter,

2 if mutually agreed.

3 (c) In view of the special relationship of the United

4 States and the Republic of the Marshall Islands, as re5 flected in subsections 354(b) and (c) of this Compact, as

6 amended, and the separate agreement regarding mutual

7 security, and the Trust Fund Agreement, if termination

8 occurs pursuant to section 443 prior to the twentieth anni9 versary of the effective date of this Compact, as amended,

10 the United States shall continue to make contributions to

11 the Trust Fund described in section 216 of this Compact,

12 as amended.

13 (d) In view of the special relationship of the United

14 States and the Republic of the Marshall Islands, as re15 flected in subsections 354(b) and (c) of this Compact, as

16 amended, and the separate agreement regarding mutual

17 security, and the Trust Fund Agreement, if termination

18 occurs pursuant to section 443 following the twentieth an19 niversary of the effective date of this Compact, as amend20 ed, the Republic of the Marshall Islands shall continue to

21 be eligible to receive proceeds from the Trust Fund de22 scribed in section 216 of this Compact, as amended, in

23 the manner described in those provisions and the Trust

24 Fund Agreement.

25 Section 454


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1 Notwithstanding any other provision of this Compact,

2 as amended:

3 (a) The Government of the United States reaf4 firms its continuing interest in promoting the eco5 nomic advancement and budgetary self-reliance of

6 the people of the Republic of the Marshall Islands.

7 (b) The separate agreements referred to in Ar8 ticle II of Title Three shall remain in effect in ac9 cordance with their terms.

10 Article VI

11 Definition of Terms

12 Section 461

13 For the purpose of this Compact, as amended, only,

14 and without prejudice to the views of the Government of

15 the United States or the Government of the Republic of

16 the Marshall Islands as to the nature and extent of the

17 jurisdiction of either of them under international law, the

18 following terms shall have the following meanings:

19 (a) ‘‘Trust Territory of the Pacific Islands’’

20 means the area established in the Trusteeship

21 Agreement consisting of the former administrative

22 districts of Kosrae, Yap, Ponape, the Marshall Is23 lands and Truk as described in Title One, Trust

24 Territory Code, section 1, in force on January 1,


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1 1979. This term does not include the area of Palau

2 or the Northern Mariana Islands.

3 (b) ‘‘Trusteeship Agreement’’ means the agree4 ment setting forth the terms of trusteeship for the

5 Trust Territory of the Pacific Islands, approved by

6 the Security Council of the United Nations April 2,

7 1947, and by the United States July 18, 1947, en8 tered into force July 18, 1947, 61 Stat. 3301,

9 T.I.A.S. 1665, 8 U.N.T.S. 189.

10 (c) ‘‘The Republic of the Marshall Islands’’ and

11 ‘‘the Federated States of Micronesia’’ are used in a

12 geographic sense and include the land and water

13 areas to the outer limits of the territorial sea and

14 the air space above such areas as now or hereafter

15 recognized by the Government of the United States.

16 (d) ‘‘Compact’’ means the Compact of Free As17 sociation Between the United States and the Fed18 erated States of Micronesia and the Marshall Is19 lands, that was approved by the United States Con20 gress in section 201 of Public Law 99–239 (Jan. 14,

21 1986) and went into effect with respect to the Re22 public of the Marshall Islands on October 21, 1986.

23 (e) ‘‘Compact, as amended’’ means the Com24 pact of Free Association Between the United States

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1 ed. The effective date of the Compact, as amended,

2 shall be on a date to be determined by the President

3 of the United States, and agreed to by the Govern4 ment of the Republic of the Marshall Islands, fol5 lowing formal approval of the Compact, as amended,

6 in accordance with section 411 of this Compact, as

7 amended.

8 (f) ‘‘Government of the Republic of the Mar9 shall Islands’’ means the Government established

10 and organized by the Constitution of the Republic of

11 the Marshall Islands including all the political sub12 divisions and entities comprising that Government.

13 (g) ‘‘Government of the Federated States of Mi14 cronesia’’ means the Government established and or15 ganized by the Constitution of the Federated States

16 of Micronesia including all the political subdivisions

17 and entities comprising that Government.

18 (h) The following terms shall be defined con19 sistent with the 1978 Edition of the Radio Regula20 tions of the International Telecommunications as fol21 lows:

22 (1) ‘‘Radiocommunication’’ means tele23 communication by means of radio waves.

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1 ters and receivers, including the accessory

2 equipment, necessary at one location for car3 rying on a radiocommunication service, or the

4 radio astronomy service.

5 (3) ‘‘Broadcasting Service’’ means a

6 radiocommunication service in which the trans7 missions are intended for direct reception by

8 the general public. This service may include

9 sound transmissions, television transmissions or

10 other types of transmission.

11 (4) ‘‘Broadcasting Station’’ means a sta12 tion in the broadcasting service.

13 (5) ‘‘Assignment (of a radio frequency or

14 radio frequency channel)’’ means an authoriza15 tion given by an administration for a radio sta16 tion to use a radio frequency or radio frequency

17 channel under specified conditions.

18 (6) ‘‘Telecommunication’’ means any

19 transmission, emission or reception of signs,

20 signals, writings, images and sounds or intel21 ligence of any nature by wire, radio, optical or

22 other electromagnetic systems.

23 (i) ‘‘Military Areas and Facilities’’ means those

24 areas and facilities in the Republic of the Marshall

25 Islands reserved or acquired by the Government of


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1 the Republic of the Marshall Islands for use by the

2 Government of the United States, as set forth in the

3 separate agreements referred to in section 321.

4 (j) ‘‘Tariff Schedules of the United States’’

5 means the Tariff Schedules of the United States as

6 amended from time to time and as promulgated pur7 suant to United States law and includes the Tariff

8 Schedules of the United States Annotated (TSUSA),

9 as amended.

10 (k) ‘‘Vienna Convention on Diplomatic Rela11 tions’’ means the Vienna Convention on Diplomatic

12 Relations, done April 18, 1961, 23 U.S.T. 3227,

13 T.I.A.S. 7502, 500 U.N.T.S. 95.

14 Section 462

15 (a) The Government of the United States and the

16 Government of the Republic of the Marshall Islands pre17 viously have concluded agreements, which shall remain in

18 effect and shall survive in accordance with their terms,

19 as follows:

20 (1) Agreement Between the Government of the

21 United States and the Government of the Marshall

22 Islands for the Implementation of Section 177 of the

23 Compact of Free Association;

24 (2) Agreement Between the Government of the

25 United States and the Government of the Marshall


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1 Islands by Persons Displaced as a Result of the

2 United States Nuclear Testing Program in the Mar3 shall Islands;

4 (3) Agreement Between the Government of the

5 United States and the Government of the Marshall

6 Islands Regarding the Resettlement of Enjebi Is7 land;

8 (4) Agreement Concluded Pursuant to Section

9 234 of the Compact; and

10 (5) Agreement Between the Government of the

11 United States and the Government of the Marshall

12 Islands Regarding Mutual Security Concluded Pur13 suant to Sections 321 and 323 of the Compact of

14 Free Association.

15 (b) The Government of the United States and the

16 Government of the Republic of the Marshall Islands shall

17 conclude prior to the date of submission of this Compact

18 to the legislatures of the two countries, the following re19 lated agreements which shall come into effect on the effec20 tive date of this Compact, as amended, and shall survive

21 in accordance with their terms, as follows:

22 (1) Federal Programs and Services Agreement

23 Between the Government of the United States of

24 America and the Government of the Republic of the

25 Marshall Islands Concluded Pursuant to Article III


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1 of Title One, Article II of Title Two (including Sec2 tion 222), and Section 231 of the Compact of Free

3 Association, as Amended, which include:

4 (i) Postal Services and Related Programs;

5 (ii) Weather Services and Related Pro6 grams;

7 (iii) Civil Aviation Safety Service and Re8 lated Programs;

9 (iv) Civil Aviation Economic Services and

10 Related Programs;

11 (v) United States Disaster Preparedness

12 and Response Services and Related Programs;

13 and

14 (vi) Telecommunications Services and Re15 lated Programs.

16 (2) Agreement Between the Government of the

17 United States of America and the Government of

18 the Republic of the Marshall Islands on Extradition,

19 Mutual Assistance in Law Enforcement Matters and

20 Penal Sanctions Concluded Pursuant to Section 175

21 (a) of the Compact of Free Association, as Amend22 ed;

23 (3) Agreement Between the Government of the

24 United States of America and the Government of

25 the Republic of the Marshall Islands on Labor ReVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00266 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 cruitment Concluded Pursuant to Section 175 (b) of

2 the Compact of Free Association, as Amended;

3 (4) Agreement Concerning Procedures for the

4 Implementation of United States Economic Assist5 ance Provided in the Compact, as Amended, of Free

6 Association Between the Government of the United

7 States of America and the Government of the Re8 public of the Marshall Islands;

9 (5) Agreement Between the Government of the

10 United States of America and the Government of

11 the Republic of the Marshall Islands Implementing

12 Section 216 and Section 217 of the Compact, as

13 Amended, Regarding a Trust Fund;

14 (6) Agreement Regarding the Military Use and

15 Operating Rights of the Government of the United

16 States in the Republic of the Marshall Islands Con17 cluded Pursuant to Sections 321 and 323 of the

18 Compact of Free Association, as Amended; and,

19 (7) Status of Forces Agreement Between the

20 Government of the United States of America and

21 the Government of the Republic of the Marshall Is22 lands Concluded Pursuant to Section 323 of the

23 Compact of Free Association, as Amended.

24 Section 463


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1 (a) Except as set forth in subsection (b) of this sec2 tion, any reference in this Compact, as amended, to a pro3 vision of the United States Code or the Statutes at Large

4 of the United States constitutes the incorporation of the

5 language of such provision into this Compact, as amended,

6 as such provision was in force on the effective date of this

7 Compact, as amended.

8 (b) Any reference in Article IV and VI of Title One,

9 and Sections 174, 175, 178 and 342 to a provision of the

10 United States Code or the Statutes at Large of the United

11 States or to the Privacy Act, the Freedom of Information

12 Act, the Administrative Procedure Act or the Immigration

13 and Nationality Act constitutes the incorporation of the

14 language of such provision into this Compact, as amended,

15 as such provision was in force on the effective date of this

16 Compact, as amended, or as it may be amended thereafter

17 on a non-discriminatory basis according to the constitu18 tional processes of the United States.

19 Article VII

20 Concluding Provisions

21 Section 471

22 Both the Government of the United States and the

23 Government of the Republic of the Marshall Islands shall

24 take all necessary steps, of a general or particular char25 acter, to ensure, no later than the entry into force date


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1 of this Compact, as amended, the conformity of its laws,

2 regulations and administrative procedures with the provi3 sions of this Compact, as amended, or, in the case of sub4 section (d) of section 141, as soon as reasonably possible

5 thereafter.

6 Section 472

7 This Compact, as amended, may be accepted, by sig8 nature or otherwise, by the Government of the United

9 States and the Government of the Republic of the Mar10 shall Islands.

11 IN WITNESS WHEREOF, the undersigned, duly

12 authorized, have signed this Compact of Free Association,

13 as amended, which shall enter into force upon the ex14 change of diplomatic notes by which the Government of

15 the United States of America and the Government of the

16 Republic of the Marshall Islands inform each other about

17 the fulfillment of their respective requirements for entry

18 into force.

19 DONE at Majuro, Republic of the Marshall Islands,

20 in duplicate, this thirtieth (30) day of April, 2003, each

21 text being equally authentic.


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Mr. SMITH OF NEW JERSEY. The Chair recognizes the gentleman 

from Iowa, the Subcommittee on Asia and the Pacific Chairman for 

a motion. 

Mr. LEACH. Mr. Chairman, the Subcommittee on Asia and the 

Pacific reports favorably the resolution H.J. Res. 63 with the single 

amendment in the nature of a substitute and moves its favorable 

recommendation to the full House. 

Mr. SMITH OF NEW JERSEY. Mr. Leach is recognized to explain 

the bill. 

Mr. LEACH. Thank you, Mr. Chairman. As my colleagues may be 

aware, the economic assistance provisions of the current Compact 

of Free Association with the Federated States of Micronesia and 

the Republic of the Marshall Islands expired in 2001 but were extended for 2 years while the U.S. renegotiated the expired provisions with the islands, also known as the Freely Associated States. 

However, these negotiations were only completed late this spring, 

leaving Congress with little time to act before these authorities expire on September 30 of this year. Hence the need for expeditious 

action on the legislation. 

In this regard the Subcommittee held a hearing on the newly renegotiated Compacts on June 18, receiving extensive testimony 

from the Department of State and Interior, the General Accounting 

Office, as well as testimony for the record from the Governments 

of the FSM and RMI. 

Most recently, on July 18, the Subcommittee marked up H.J. 

Res. 63 and reported it favorably to the Committee with several 

modest technical amendments. By background, the United States 

has shared a uniquely close and mutually beneficial relationship 

with the peoples of Micronesia and the Marshall Islands. For nearly 40 years after the Second World War, the U.S. administered 

both islands as United Nations trust territories. In 1986, Micronesia and the Marshall Islands chose to become sovereign states 

and entered into a Compact of Free Association with the United 

States. The Compact was intended to ensure self-government for 

the new island nations, to assist them in their economic development toward self-sufficiency, and to advance certain mutual security objectives. 

It is my strong view that the interests of the peoples of the 

United States and these Pacific Islands have been well served by 

the Compact. Our former trust territories have emerged as sovereign democracies. America’s strategic interest in the Western Pacific has been protected, and the bonds of friendship forged during 

World War II have only strengthened with the passage of time. 

The passage of time, however, also revealed a number of deficiencies in the first Compact, particularly concerning management 

of funds, planning and oversight. Fortunately, however, drawing on 

the work of the Subcommittee on Asia and the Pacific, under the 

leadership of the former Chairman, Doug Bereuter, and extensive 

work by the General Accounting Office, the new agreement completely redesigns the way Compact funds are used, thereby significantly strengthening these agreements. 

The amended Compacts and related agreements address a number of issues. They preserve the United States defense veto and assure continued United States military access to Kwajalein Atoll deVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00270 Fmt 6633 Sfmt 6633 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL
267

fense sites until at least 2066, and possibly 2086, at the United 

States option. 

The amended Compact also strengthens one key additional 

area—immigration—by adding new restrictions and clarifying the 

applicability of the Immigration Nationality Act to Compact migrants. 

The amended Compacts are complex and should be generally 

supportable by Congress. There are, however, two areas of concerns 

that the Committee may well want to address further or clarify as 

the legislation advances. One relates to the proposed termination 

of FEMA’s role in providing disaster assistance under the amended 

Compacts and the future of educational assistance, such as Pell 

grants, provided by the Freely Associated States outside of the 

Compact and its related agreements. Here I would like to inform 

Members that all of the relevant authorizing Committees, on a bipartisan, bicameral basis, are working together with the Administration to talk through these complex substantive and jurisdictional 

issues in a timely manner. 

It is my strong hope and intent to gain further clarification on 

several of these questions by the time this legislation is considered 

by the full House. Nevertheless, recognizing that further clarifications and minor adjustments in language may still be contemplated, I feel comfortable in bringing this Compact as negotiated by the Administration with the FSM and RMI to the Committee for approval. 

I thank the Chair. 

[The prepared statement of Mr. Leach follows:]

PREPARED STATEMENT OF THE HONORABLE JAMES A. LEACH, A REPRESENTATIVE IN

CONGRESS FROM THE STATE OF IOWA

H.J. RES. 63

Thank you, Mr. Chairman. 

As my colleagues may be aware, the economic assistance provisions of the current 

Compact of Free Association with the Federated States of Micronesia (FSM) and the 

Republic of the Marshall Islands (RMI) expired in 2001, but were extended for two 

years while the U.S. renegotiated the expiring provisions with the islands—also 

known as the Freely Associated States. However, those negotiations were only completed late this Spring, leaving Congress with little time to act before those authorities expire on September 30th of this year. Hence the need for expeditious action 

on this legislation. 

In this regard, the Subcommittee held a hearing on the newly renegotiated Compacts on June 18, receiving extensive testimony from the Departments of State and 

Interior, the General Accounting Office, as well as testimony for the record from the 

governments of the FSM and RMI. Most recently, on July 18 the Subcommittee 

marked up H.J. Res. 63 and reported it favorably to the Committee with several 

modest technical amendments. 

By background, the U.S. has shared a uniquely close and mutually beneficial relationship with the peoples of Micronesia and the Marshall Islands. For nearly forty 

years after the Second World War, the U.S. administered both islands as United Nations Trust Territories. In 1986, Micronesia and the Marshall Islands chose to become sovereign states and entered into a Compact of Free Association with the 

United States. The compact was intended to ensure self-government for the new island nations, to assist them in their economic development toward self-sufficiency 

and to advance certain mutual security objectives. 

It is my strong view that the interests of the peoples of the U.S. and these Pacific 

islands have been well-served by the Compact. Our former trust territories have 

emerged as sovereign democracies; America’s strategic interests in the Western Pacific have been protected; and the bonds of friendship forged during World War Two 

have only strengthened with the passage of time. 

268

The passage of time, however, revealed a number of deficiencies in the first Compact, particularly concerning management of funds, planning, and oversight. Fortunately, however, drawing on the work of the Asia Subcommittee under the leadership of former Chairman Bereuter and extensive work by the General Accounting 

Office, the new agreement completely redesigns the way Compact funds are used, 

thereby significantly strengthening these agreements. 

Here I would like to draw the Committee’s attention to the impressive new accountability provisions of the amended Compacts. According to the GAO, the amended Compacts include enhanced reporting and monitoring measures that should substantially improve accountability if fully implemented. For example, assistance 

under the amended Compacts will be provided through grants targeted to priority 

areas, including health and education, with specific terms and conditions attached. 

Annual reporting and consultation requirements will be expanded and funds could 

be withheld for noncompliance with Compact terms and conditions. 

More broadly, the amended Compacts of Free Association with the FSM and RMI to renew expiring assistance would require about $3.5 billion in funding over the 

next 20 years, with a larger amount being possible if the U.S. exercises its option 

to extend military use rights on Kwajalein Atoll. The amended Compacts would provide decreasing levels of annual aid over a 20-year term, with U.S. grant assistance 

expiring at the end of that period. At the same time, the Compacts would require 

the capitalization of a trust fund for each country to generate annual interest earnings that would replace U.S. grant assistance in 2023. 

The amended Compacts and related agreements address other key issues. They 

preserve the U.S. ‘‘defense veto’’ and assure continued U.S. military access to Kwajalein Atoll defense sites until at least 2066, and possibly to 2086 at the U.S. option. 

The amended Compact also strengthens one key additional area, immigration, by 

adding new restrictions and clarifying the applicability of the Immigration and Nationality Act to Compact migrants. 

The amended Compacts are complex and should be generally supportable by Congress. There are, however, two areas of ongoing concern that the Committee may 

well want to address further or clarify as the legislation advances: the proposed termination of FEMA’s role in providing disaster assistance under the amended Compacts, and the future of educational assistance, such as Pell Grants, provided to the 

Freely Associated States outside of the Compact and its related agreements. 

Here I would like to inform Members that all of the relevant authorizing Committees, on a bipartisan and bicameral basis, are working together with the Administration to talk through these complex substantive and jurisdictional issues in a 

timely manner. It is my strong hope and intent to gain further clarification on several of these questions by the time this legislation is considered by the full House.

Mr. SMITH OF NEW JERSEY. I thank the Chairman for his comments. The Chair recognizes Mr. Faleomavaega. 

Mr. FALEOMAVAEGA. Mr. Chairman, I move to strike the last 

word. 

Mr. SMITH OF NEW JERSEY. The gentleman is recognized for 5 

minutes. 

Mr. FALEOMAVAEGA. Mr. Chairman I want to thank our distinguished Chairman of the Subcommittee on Asia and the Pacific, 

Mr. Leach, for his leadership and also for his sensitivity to some 

of the concerns that I have indicated earlier during the course of 

the hearings that were held in this Committee and in the Committee on Resources. 

These special Compacts that we have had with the Republic of 

the Marshall Islands and also with the Federated States of Micronesia, Mr. Chairman, points out a very unique political relationship 

with these Micronesian entities. At the height of the Cold War, I 

don’t know if many of our colleagues quite well remember, our total 

testing program, nuclear testing program, took place in the Marshall Islands. Some 67 nuclear devices were detonated, including 

the first hydrogen bomb that was also tested in the Marshall Islands. 

We also have in the Marshall Islands the Kwajalein missile 

range facility which over the years has facilitated our ICBMs being 

269

fired from Vandenberg Air Force Base. It really is a tremendous 

contribution not only to our national security, but is something 

that our country should also be very appreciative of: the sacrifices 

and the contributions that our Micronesian friends have given to 

our Nation. 

Given the fact of the closures of Subic Naval Station and Clark 

Air Force Base, the Department of Defense has given even greater 

importance to these Micronesian Islands. I should call it ‘‘front,’’ as 

a way to understand how important they are as part of our strategic umbrella in this part of the world, especially in the Pacific. 

As Mr. Leach had indicated earlier, I do appreciate the gentleman’s poignant concerns, because it was my intention to introduce 

some amendments, especially on the question of FEMA and the 

educational programs that have been questioned and are not being 

made available for the Federated States of Micronesia and the Republic of the Marshall Islands. 

My concern, Mr. Chairman, is given the fact that when the Compact was first implemented 15 years ago, these Micronesian entities had no infrastructure whatsoever. They had no educational 

system in place. I just feel very, very strongly that we ought to continue giving these programs so that at least it will give them a better opportunity, especially for the younger generation of the Micronesians to pursue higher education, not only with the community 

colleges that are now established but also for transferring their college education to universities throughout the United States. 

It is my understanding also that with Chairman Leach and the 

members of the staff that we will be working to provide for some 

of these areas that I have expressed concerns about and that 

Chairman Leach had indicated earlier. 

With that, Mr. Chairman, I——

Mr. LEACH. Will the gentleman yield briefly? 

Mr. FALEOMAVAEGA. I gladly yield my time. 

Mr. LEACH. Let me say to the gentleman, first, the Committee 

ought to be aware that the gentleman has really brought distinguished leadership to the Committee on these issues. And I am 

personally very appreciative of his thoughtful judgment and extraordinary knowledge. And I would be very hopeful that we can 

make it clear by the end of this process that educational opportunity will be provided in a credible way. I think it is in the strong 

interest of the people of the islands and also deeply in the interest 

of the United States and our friendship in the region. 

I also am very concerned about the disaster potential that could 

develop in terms of the kinds of storms that the islands are susceptible to. And so hopefully there will be some understandings that 

can be developed as this process continues. 

Mr. FALEOMAVAEGA. I thank the gentleman for his comments. 

Given the fact that there is also the desire on the part of the Administration to cooperate with U.S., to work closely in seeing that 

we make some improvements to address the concerns that the 

Members of our Committee had given earlier, especially from the 

good lady from California, who is our former Ambassador to FSM. 

But I do want to thank Chairman Leach for his concerns and accepting my offer to continue working on this as we go through the 

270

process. And with that Mr. Chairman, I yield back the balance of 

my time. 

Mr. SMITH OF NEW JERSEY. Are there any other Members wishing to be heard? Mrs. Napolitano. 

Mrs. NAPOLITANO. Thank you, Mr. Chairman. I join my colleagues in supporting this legislation and urge my other colleagues 

to do so as well. 

Mr. Chairman, I am very pleased that our Committee is moving 

forward today with the renewal of the Compacts of Free Association with the Federated States of Micronesia and the Republic of 

the Marshall Islands. With the approval of these Compacts, the 

United States will further solidify our relationship with the Western Pacific Nations, both of which are close allies and are making 

an ongoing contribution to our national defense. 

To understand the importance of renewing the Compacts, we 

must remember our Nation’s history in the region. During World 

War II, American soldiers liberated the Pacific, island by island, in 

the brutal bloody battles that were held, that happened in those islands. And after the war, the United States administered Micronesia and the Marshalls, maintaining a vitally important base in 

the atoll. 

In the ’40s and ’50s, the United States conducted both underwater and atmospheric nuclear tests in the Marshall Islands. The 

Marshallese people were dramatically affected by these nuclear 

tests, and some entire islands still to this day remain uninhabitable. Since the independence of the Marshall Islands and Micronesia in 1986, the ties between our Nations have grown even 

stronger, and when this Committee approved the Compact in 1986 

we received a good bargain. Funds would flow to the Island Nations in return for the strategic denial and defense veto. 

The Kwajalein Army Base is vitally important to American missile test and as a listening post to the world. I have heard that not 

only from the Committee reports but also from my good friend, 

former Ambassador to Micronesia, Senator Watson. And while we 

undoubtedly further our Nation’s security interest with approval of 

the Compact, the U.S. insufficiently monitored expenditures of the 

funds and did little to promote economic development in those islands. 

These Compacts before us ensure that the funds provided to 

those two will be better spent in the future and will promote sound 

economic development and will focus on education and health care. 

This also will establish the trust fund for both nations to ensure 

that they can work toward becoming self-sufficient in the next 20 

years. 

And as Congress moved forwards with this legislation, Mr. Chair, 

as we work with our relevant Committees in the House and Senate, I will also work to ensure that various U.S. educational programs will operate in both nations and can be fully preserved. 

Mr. Chairman, this legislation before us promotes our Nation’s 

national security interest, furthers our relationship with the Marshalls and Micronesia, and protects American taxpayer dollars, and 

I urge its approval. 

Thank you, and I yield back the balance of my time. 

Mr. SMITH OF NEW JERSEY. Thank you. 

271

Any other Member wishing to be heard? If not, are there any 

amendments to the pending legislation? If not, the question occurs 

on the amendment. 

All those in favor will say aye. Opposed, say no. 

The question occurs on the amendment in the nature of a substitute. Without objection, the previous question is ordered and further proceedings are postponed. 

The next item on the agenda is H.R. 2620, the Trafficking Victims Protection Reauthorization Act of 2003 for purposes of markup 

and move its favorable recommendation to the House. Without objection, the bill will be considered as read and open for amendment 

at any point. 

[H.R. 2620 follows:]

272

1

I

108TH CONGRESS

1ST SESSION H. R. 2620

To authorize appropriations for fiscal years 2004 and 2005 for the Trafficking

Victims Protection Act of 2000, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 26, 2003

Mr. SMITH of New Jersey (for himself, Mr. LANTOS, Mr. PITTS, Ms. SLAUGHTER, and Ms. ESHOO) introduced the following bill; which was referred

to the Committee on International Relations, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To authorize appropriations for fiscal years 2004 and 2005

for the Trafficking Victims Protection Act of 2000, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Trafficking Victims

5 Protection Reauthorization Act of 2003’’.

6 SEC. 2. FINDINGS.

7 Congress finds the following:


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2

•HR 2620 IH

1 (1) Trafficking in persons continues to victimize

2 countless men, women, and children in the United

3 States and abroad.

4 (2) Since the enactment of the Trafficking Vic5 tims Protection Act of 2000 (division A of Public

6 Law 106–386), the United States Government has

7 made significant progress in investigating and pros8 ecuting acts of trafficking and in responding to the

9 needs of victims of trafficking in the United States

10 and abroad.

11 (3) On the other hand, victims of trafficking

12 have faced unintended obstacles in the process of se13 curing needed assistance, including admission to the

14 United States under section 101(a)(15)(T)(i) of the

15 Immigration and Nationality Act.

16 (4) Additional research is needed to fully under17 stand the phenomenon of trafficking in persons and

18 to determine the most effective strategies for com19 bating trafficking in persons.

20 (5) Corruption amongst law enforcement au21 thorities continues to undermine the efforts by gov22 ernments to investigate, prosecute, and convict traf23 fickers.

24 (6) International Law Enforcement Academies

25 should be more fully utilized in the effort to train


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3

•HR 2620 IH

1 law enforcement authorities, prosecutors, and mem2 bers of the judiciary to address trafficking in per3 sons-related crimes.

4 SEC. 3. ENHANCING PREVENTION OF TRAFFICKING IN PER5 SONS.

6 (a) TERMINATION OF CERTAIN GRANTS, CONTRACTS

7 AND COOPERATIVE AGREEMENTS.—

8 (1) TERMINATION.—

9 (A) IN GENERAL.—The President shall en10 sure that any grant, contract, or cooperative

11 agreement provided or entered into by a Fed12 eral department or agency under which funds

13 described in paragraph (2) are to be provided

14 to a private entity, in whole or in part, shall in15 clude a condition that authorizes the depart16 ment or agency to terminate the grant, con17 tract, or cooperative agreement, without pen18 alty, if the grantee or any subgrantee, or the

19 contractor or any subcontractor (i) engages in

20 severe forms of trafficking in persons or has

21 procured a commercial sex act during the pe22 riod of time that the grant, contract, or cooper23 ative agreement is in effect, or (ii) uses forced

24 labor in the performance of the grant, contract,

25 or cooperative agreement.


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4

•HR 2620 IH

1 (B) DEFINITION.—In subparagraph (A),

2 the term ‘‘severe forms of trafficking in per3 sons’’ has the meaning given the term in sec4 tion 103(8) of the Trafficking Victims Protec5 tion Act of 2000 (22 U.S.C. 7102(8)).

6 (2) ASSISTANCE DESCRIBED.—Funds referred

7 to in paragraph (1) are funds made available to

8 carry out any program, project, or activity funded

9 under major functional budget category 150 (relat10 ing to international affairs).

11 (b) BORDER INTERDICTION, PUBLIC INFORMATION

12 PROGRAMS, AND COMBATING INTERNATIONAL SEX TOUR13 ISM.—Section 106 of the Trafficking Victims Protection

14 Act of 2000 (22 U.S.C. 7104) is amended—

15 (1) by redesignating subsection (c) as sub16 section (f);

17 (2) by inserting after subsection (b) the fol18 lowing new subsections:

19 ‘‘(c) BORDER INTERDICTION.—The President shall

20 establish and carry out programs of border interdiction

21 by providing grants to nongovernmental organizations

22 that provide for transit shelters operating at key border

23 crossings and that help train survivors of trafficking in

24 persons to work with local law enforcement as border mon25 itors to help identify traffickers and trafficking victims to


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•HR 2620 IH

1 stop the cross-border transit of victims. The President

2 shall ensure that any program established under this sub3 section provides the opportunity for any trafficking victim

4 who is freed to return to his or her previous residence if

5 the victim so chooses.

6 ‘‘(d) INTERNATIONAL MEDIA.—The President shall

7 establish and carry out programs that support the produc8 tion of television and radio programs, including documen9 taries, to inform vulnerable populations overseas of the

10 dangers of trafficking, including fostering linkages be11 tween individuals working in the media in different coun12 tries to determine the best methods for informing such

13 populations through such media.

14 ‘‘(e) COMBATING INTERNATIONAL SEX TOURISM.—

15 ‘‘(1) DEVELOPMENT AND DISSEMINATION OF

16 MATERIALS.—The President, pursuant to such regu17 lations as may be prescribed, shall (A) require that

18 airlines organized under the laws of the United

19 States and other airlines operating in the United

20 States develop and disseminate materials alerting

21 travelers that sex tourism (as defined in section

22 2423(c–e) of title 18, United States Code) is illegal,

23 will be prosecuted, and presents dangers to those in24 volved, and (B) encourage such airlines to work with

25 nongovernmental organizations in developing these


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•HR 2620 IH

1 materials. Such materials may include, for example,

2 brochures, public service announcements, and bill3 boards.

4 ‘‘(2) MONITORING OF COMPLIANCE.—The

5 President shall monitor compliance with the require6 ments of paragraph (1).’’; and

7 (3) in subsection (f) (as redesignated), by strik8 ing ‘‘initiatives described in subsections (a) and (b)’’

9 and inserting ‘‘initiatives and programs described in

10 subsections (a) through (e)’’.

11 SEC. 4. ENHANCING PROTECTION FOR TRAFFICKING VIC12 TIMS.

13 (a) AMENDMENTS TO TRAFFICKING VICTIMS PRO14 TECTION ACT OF 2000.—

15 (1) COOPERATION BETWEEN FOREIGN GOVERN16 MENTS AND NONGOVERNMENTAL ORGANIZATIONS.—

17 Section 107(a)(1)(B) of the Trafficking Victims Pro18 tection Act of 2000 (22 U.S.C. 7105(a)(1)(B)) is

19 amended by adding at the end before the period the

20 following: ‘‘, and by facilitating contact between rel21 evant foreign government agencies and such non22 governmental organizations to facilitate cooperation

23 between the foreign governments and such organiza24 tions’’.


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1 (2) ASSISTANCE FOR FAMILY MEMBERS OF VIC2 TIMS OF TRAFFICKING IN UNITED STATES.—Section

3 107(b)(1) of the Trafficking Victims Protection Act

4 of 2000 (22 U.S.C. 7105(b)(1)) is amended—

5 (A) in subparagraph (A), by inserting ‘‘, or

6 an alien classified as a nonimmigrant under

7 section 101(a)(15)(T)(ii),’’ after ‘‘in persons’’;

8 and

9 (B) in subparagraph (B), by inserting

10 ‘‘and aliens classified as a nonimmigrant under

11 section 101(a)(15)(T)(ii),’’ after ‘‘United

12 States,’’.

13 (3) CERTIFICATION OF VICTIMS OF A SEVERE

14 FORM OF TRAFFICKING IN PERSONS.—Section

15 107(b)(1)(E)(i)(I) of the Trafficking Victims Protec16 tion Act of 2000 (22 U.S.C. 7105(b)(1)(E)(i)(I)) is

17 amended by striking ‘‘the investigation and prosecu18 tion’’ and inserting ‘‘any Federal, State, or local in19 vestigation or prosecution’’.

20 (4) PRIVATE RIGHT OF ACTION.—Section

21 107(b) of the Trafficking Victims Protection Act of

22 2000 (22 U.S.C. 7105(b)) is amended by adding at

23 the end the following new paragraph:

24 ‘‘(3) CIVIL ACTION.—An individual who is a

25 victim of a violation of section 1589, 1590, or 1591


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1 of title 18, United States Code, may bring a civil ac2 tion in any appropriate district court of the United

3 States. The court may award actual damages, puni4 tive damages, reasonable attorneys’ fees, and other

5 litigation costs reasonably incurred.’’.

6 (b) AMENDMENTS TO IMMIGRATION AND NATION7 ALITY ACT.—

8 (1) DEFINITIONS.—Section 101(a)(15)(T) of

9 the Immigration and Nationality Act (8 U.S.C.

10 1101(a)(15)(T)) is amended—

11 (A) in clause (i)(III)(aa), by inserting

12 ‘‘from any Federal, State, or local law enforce13 ment agency’’ after ‘‘reasonable request’’;

14 (B) in clause (i)(III)(bb), by striking ‘‘15

15 years of age,’’ and inserting ‘‘18 years of age,’’;

16 and

17 (C) in clause (ii)(I), by inserting ‘‘unmar18 ried siblings under 18 years of age,’’ before

19 ‘‘and parents’’.

20 (2) ADMISSION OF NONIMMIGRANTS.—Section

21 214(n)(3) of the Immigration and Nationality Act (8

22 U.S.C. 1184(n)(3)) is amended by inserting ‘‘sib23 lings,’’ before ‘‘or parents’’.

24 (3) ADJUSTMENT OF STATUS.—Section 245(l)

25 of the Immigration and Nationality Act (8 U.S.C.


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1 1255(l)) (as added by section 107(f) of Public Law

2 106–386) is amended—

3 (A) in paragraph (1)—

4 (i) by striking ‘‘admitted under that

5 section’’ and inserting ‘‘admitted under

6 section 101(a)(15)(T)(ii)’’; and

7 (ii) by inserting ‘‘sibling,’’ after ‘‘par8 ents,’’; and

9 (B) in paragraph (3)(B), by inserting ‘‘sib10 lings,’’ after ‘‘daughters,’’.

11 (c) WAIVER OF PUBLIC CHARGE GROUND FOR INAD12 MISSIBILITY; PENALTIES FOR UNLAWFUL DISCLOSURE

13 OF INFORMATION.—Section 214(n) of the Immigration

14 and Nationality Act (8 U.S.C. 1184(n)) is amended by

15 adding at the end the following:

16 ‘‘(4) In determining the admissibility of an alien

17 under section 101(a)(15)(T), section 212(a)(4) shall not

18 apply.

19 ‘‘(5)(A) Except as otherwise provided in this para20 graph, in no case may the Secretary of State, the Sec21 retary of Homeland Security, or any other official or em22 ployee of the Department of State or the Department of

23 Homeland Security (including any bureau or agency of ei24 ther of such Departments) permit use by, or disclosure

25 to, anyone, other than a sworn officer or employee of one


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1 of such Departments for legitimate Department purposes,

2 of any information that relates to an alien who has prop3 erly filed a bona fide application for, or been granted, a

4 visa or nonimmigrant status under section

5 101(a)(15)(T)(i).

6 ‘‘(B) The limitation under subparagraph (A) shall

7 terminate when the application described in such subpara8 graph is denied and all opportunities for appeal of the de9 nial have been exhausted.

10 ‘‘(C) The Secretary of State and the Secretary of

11 Homeland Security may each provide, in each Secretary’s

12 discretion, for the disclosure of information described in

13 subparagraph (A) in the same manner and circumstances

14 as census information may be disclosed by the Secretary

15 of Commerce under section 8 of title 13, United States

16 Code.

17 ‘‘(D) The Secretary of State and the Secretary of

18 Homeland Security may each provide, in each Secretary’s

19 discretion, for the disclosure of information described in

20 subparagraph (A) to law enforcement officials to be used

21 solely for a legitimate law enforcement purpose, such as

22 the implementation of section 105(a) of this Act, section

23 414(c) of the Uniting and Strengthening America by Pro24 viding Appropriate Tools Required to Intercept and Ob25 struct Terrorism (USA PATRIOT ACT) Act of 2001 (8


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1 U.S.C. 1365a note), and the interoperable electronic data

2 system described in section 202 of the Enhanced Border

3 Security and Visa Entry Reform Act of 2002 (8 U.S.C.

4 1722).

5 ‘‘(E) Subparagraph (A) shall not be construed as pre6 venting disclosure of information in connection with judi7 cial review of a determination in a manner that protects

8 the confidentiality of such information.

9 ‘‘(F) Subparagraph (A) shall not be construed to su10 persede section 222(f).

11 ‘‘(G) Subparagraph (A) shall not apply if the alien

12 is an adult and has waived the restrictions of such sub13 paragraph.

14 ‘‘(H) Whoever willfully uses, publishes, or permits in15 formation to be disclosed in violation of this paragraph

16 shall be subject to appropriate disciplinary action and sub17 ject to a civil money penalty of not more than $5,000 for

18 each such violation.’’.

19 SEC. 5. ENHANCING PROSECUTIONS OF TRAFFICKERS.

20 (a) SEX TRAFFICKING OF CHILDREN OR BY FORCE,

21 FRAUD, OR COERCION.—Section 1591 of title 18, United

22 States Code, is amended—

23 (1) in the heading, by inserting a comma after

24 ‘‘FRAUD’’;


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1 (2) in subsection (a)(1), by striking ‘‘in or af2 fecting interstate commerce’’ and inserting ‘‘in or af3 fecting interstate or foreign commerce, or within the

4 special maritime and territorial jurisdiction of the

5 United States’’; and

6 (3) in subsection (b), by striking ‘‘the person

7 transported’’ each place it appears and inserting

8 ‘‘the person recruited, enticed, harbored, trans9 ported, provided, or obtained’’.

10 (b) DEFINITION OF RACKETEERING ACTIVITY.—Sec11 tion 1961(1) of title 18, United States Code, is amended

12 by inserting after ‘‘murder-for-hire),’’ the following: ‘‘sec13 tion 1589 (relating to forced labor), section 1590 (relating

14 to trafficking with respect to peonage, slavery, involuntary

15 servitude, or forced labor), section 1591 (relating to sex

16 trafficking of children or by force, fraud, or coercion),’’.

17 SEC. 6. ENHANCING UNITED STATES EFFORTS TO COMBAT

18 TRAFFICKING.

19 (a) REPORT.—

20 (1) IN GENERAL.—Section 105(d) of the Vic21 tims of Trafficking and Violence Protection Act of

22 2000 (22 U.S.C. 7103(d)) is amended by adding at

23 the end the following new paragraph:

24 ‘‘(7) Not later than February 1, 2004, and

25 2005, the Task Force, acting through the Office to


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1 Monitor and Combat Trafficking of the Department

2 of State (established under subsection (e)), shall

3 submit to the Committee on Ways and Means, the

4 Committee on International Relations, and the Com5 mittee on the Judiciary of the House of Representa6 tives and the Committee on Finance, the Committee

7 on Foreign Relations, and the Committee on the Ju8 diciary of the Senate, a report on Federal agencies

9 that are implementing any provision of this division,

10 or any amendment made by this division, which shall

11 include, at a minimum, information on—

12 ‘‘(A) the number of persons who received

13 benefits or other services under section 107(b)

14 in connection with programs or activities fund15 ed or administered by the Secretary of Health

16 and Human Services, the Secretary of Labor,

17 the Board of Directors of the Legal Services

18 Corporation, and other appropriate Federal

19 agencies during the preceding fiscal year;

20 ‘‘(B) the number of persons who have been

21 granted continued presence in the United

22 States under section 107(c)(3) during the pre23 ceding fiscal year;

24 ‘‘(C) the number of persons who have ap25 plied for, been granted, or been denied a visa or


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1 otherwise provided status under section

2 101(a)(15)(T)(i) of the Immigration and Na3 tionality Act (8 U.S.C. 1101(a)(15)(T)(i)) dur4 ing the preceding fiscal year;

5 ‘‘(D) the number of persons who have been

6 charged or convicted under one or more of sec7 tions 1581, 1583, 1584, 1589, 1590, 1591,

8 1592, or 1594 of title 18, United States Code,

9 during the preceding fiscal year and the sen10 tences imposed against each such person;

11 ‘‘(E) the amount, recipient, and purpose of

12 each grant issued by any Federal agency to

13 carry out the purposes of sections 106 and 107

14 of this Act, or section 134 of the Foreign As15 sistance Act of 1961, during the preceding fis16 cal year; and

17 ‘‘(F) the nature of training conducted pur18 suant to section 107(c)(4) during the preceding

19 fiscal year.’’.

20 (2) CONFORMING AMENDMENT.—Section

21 107(b)(1) of the Victims of Trafficking and Violence

22 Protection Act of 2000 (22 U.S.C. 7105(b)(1)) is

23 amended by striking subparagraph (D).

24 (b) SUPPORT FOR THE TASK FORCE.—


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1 (1) AMENDMENT.—The second sentence of sec2 tion 105(e) of the Victims of Trafficking and Vio3 lence Protection Act of 2000 (22 U.S.C. 7103(e)) is

4 amended by inserting at the end before the period

5 the following: ‘‘, who shall be appointed by the

6 President, by and with the advice and consent of the

7 Senate, with the rank of Ambassador-at-Large’’.

8 (2) APPLICABILITY.—The individual who holds

9 the position of Director of the Office to Monitor and

10 Combat Trafficking of the Department of State may

11 continue to hold such position notwithstanding the

12 amendment made by paragraph (1).

13 (c) SENIOR POLICY OPERATING GROUP.—

14 (1) AMENDMENT.—Section 105 of the Victims

15 of Trafficking and Violence Protection Act of 2000

16 (22 U.S.C. 7103) is amended by adding at the end

17 the following new subsection:

18 ‘‘(f) SENIOR POLICY OPERATING GROUP.—

19 ‘‘(1) ESTABLISHMENT.—There shall be estab20 lished within the Task Force a Senior Policy Oper21 ating Group.

22 ‘‘(2) MEMBERSHIP; RELATED MATTERS.—

23 ‘‘(A) IN GENERAL.—The Operating Group

24 shall consist of the senior officials designated as

25 representatives of the appointed members of the


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1 Task Force (pursuant to Executive Order

2 13257 of February 13, 2002).

3 ‘‘(B) CHAIRPERSON.—The Operating

4 Group shall be chaired by the Director of the

5 Office to Monitor and Combat Trafficking of

6 the Department of State.

7 ‘‘(C) MEETINGS.—The Operating Group

8 shall meet on a regular basis at the call of the

9 Chairperson.

10 ‘‘(3) DUTIES.—The Operating Group shall co11 ordinate activities of Federal departments and agen12 cies regarding policies (including grants and grant

13 policies) involving the international trafficking in

14 persons and the implementation of this division.

15 ‘‘(4) AVAILABILITY OF INFORMATION.—The

16 Operating Group shall fully share information re17 garding plans of Federal departments and agencies,

18 before and after final agency decisions are made, on

19 all matters regarding grants, grant policies, and

20 other significant actions regarding the international

21 trafficking in persons and the implementation of this

22 division.’’.

23 (2) CONFORMING AMENDMENT.—Section 406

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1 propriations Act, 2003 (as contained in division B of

2 Public Law 108–7) is hereby repealed.

3 (d) MINIMUM STANDARDS FOR THE ELIMINATION OF

4 TRAFFICKING.—Section 108(b) of the Victims of Traf5 ficking and Violence Protection Act of 2000 (22 U.S.C.

6 7106(b)) is amended—

7 (1) in paragraph (1)—

8 (A) by striking ‘‘that take place wholly or

9 partly within the territory of the country’’ and

10 inserting ‘‘, and convicts and sentences persons

11 responsible for such acts, that take place wholly

12 or partly within the territory of the country’’;

13 and

14 (B) by adding at the end the following new

15 sentence: ‘‘After reasonable requests from the

16 Department of State for data regarding inves17 tigations, prosecutions, convictions, and sen18 tences, a government which does not provide

19 such data consistent with its resources shall be

20 presumed not to have vigorously investigated,

21 prosecuted, convicted or sentenced such acts.’’;

22 and

23 (2) in paragraph (7)—


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1 (A) by striking ‘‘and prosecutes’’ and in2 serting ‘‘, prosecutes, convicts, and sentences’’;

3 and

4 (B) by adding at the end the following new

5 sentence: ‘‘After reasonable requests from the

6 Department of State for data regarding such

7 investigations, prosecutions, convictions, and

8 sentences, a government which does not provide

9 such data consistent with its resources shall be

10 presumed not to have vigorously investigated,

11 prosecuted, convicted, or sentenced such acts.’’.

12 (e) ENHANCING UNITED STATES ASSISTANCE.—Sec13 tion 134(b)of the Foreign Assistance Act of 1961 (22

14 U.S.C. 2152d(b)) is amended by adding at the end the

15 following new sentence: ‘‘Assistance may be provided

16 under this section notwithstanding section 660 of this

17 Act.’’.

18 (f) RESEARCH RELATING TO TRAFFICKING IN PER19 SONS.—

20 (1) IN GENERAL.—The Victims of Trafficking

21 and Violence Protection Act of 2000 (22 U.S.C.

22 7101 et seq.) is amended by inserting after section

23 112 the following new section:


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1 ‘‘SEC. 112A. RESEARCH ON DOMESTIC AND INTERNATIONAL

2 TRAFFICKING IN PERSONS.

3 ‘‘The President, acting through the Council of Eco4 nomic Advisors, the National Research Council of the Na5 tional Academies, the Secretary of Labor, the Secretary

6 of Health and Human Services, the Attorney General, the

7 Secretary of State, the Administrator of the United States

8 Agency for International Development, and the Director

9 of Central Intelligence, shall carry out research, including

10 by providing grants to nongovernmental organizations,

11 which furthers the purposes of this division and provides

12 data to address the problems identified in the findings of

13 this division. Such research initiatives shall, to the max14 imum extent practicable, include, but not be limited to,

15 the following:

16 ‘‘(1) The economic causes and consequences of

17 trafficking in persons.

18 ‘‘(2) The effectiveness of programs and initia19 tives funded or administered by Federal agencies to

20 prevent trafficking in persons and to protect and as21 sist victims of trafficking.

22 ‘‘(3) The interrelationship between trafficking

23 in persons and global health risks.’’.

24 (2) CONFORMING AMENDMENT.—The table of

25 contents of the Victims of Trafficking and Violence

26 Protection Act of 2000 is amended by inserting after


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1 the item relating to section 112 the following new

2 item:

‘‘Sec. 112A. Research on domestic and international trafficking in persons.’’.

3 SEC. 7. AUTHORIZATION OF APPROPRIATIONS; RELATED

4 MATTERS.

5 Section 113 of the Trafficking Victims Protection Act

6 of 2000 (22 U.S.C. 7110) is amended—

7 (1) in subsection (a), by striking ‘‘and

8 $3,000,000 for each of the fiscal years 2002 and

9 2003’’ and inserting ‘‘, $3,000,000 for each of the

10 fiscal years 2002 and 2003, and $4,000,000 for

11 each of the fiscal years 2004 and 2005’’;

12 (2) in subsection (b), by adding at the end be13 fore the period the following: ‘‘and $15,000,000 for

14 each of the fiscal years 2004 and 2005’’;

15 (3) in subsection (c)—

16 (A) in paragraph (1) to read as follows:

17 ‘‘(1) BILATERAL ASSISTANCE TO COMBAT TRAF18 FICKING.—

19 ‘‘(A) PREVENTION.—To carry out the pur20 poses of section 106, there are authorized to be

21 appropriated to the Secretary of State

22 $15,000,000 for each of the fiscal years 2004

23 and 2005.

24 ‘‘(B) PROTECTION.—To carry out the pur25 poses of section 107(a), there are authorized to


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1 be appropriated to the Secretary of State

2 $15,000,000 for each of the fiscal years 2003

3 and 2005.

4 ‘‘(C) PROSECUTION AND MEETING MIN5 IMUM STANDARDS.—To carry out the purposes

6 of section 134 of the Foreign Assistance Act of

7 1961, there are authorized to be appropriated

8 $15,000,000 for each of the fiscal years 2004

9 and 2005 to assist in promoting prosecution of

10 traffickers and otherwise to assist countries in

11 meeting the minimum standards described in

12 section 108 of this Act, including $250,000 for

13 each such fiscal year to carry out training ac14 tivities for law enforcement officers, prosecu15 tors, and members of the judiciary with respect

16 to trafficking in persons at the International

17 Law Enforcement Academies.’’; and

18 (B) in paragraph (2), by striking ‘‘for each

19 of the fiscal years 2001, 2002, and 2003’’ and

20 inserting ‘‘for each of the fiscal years 2001

21 through 2005’’;

22 (4) in subsection (d)—

23 (A) by adding at the end before the period

24 the following: ‘‘and $15,000,000 for each of the

25 fiscal years 2004 and 2005’’; and


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1 (B) by adding at the end the following new

2 sentence: ‘‘To carry out the purposes of section

3 134 of the Foreign Assistance Act of 1961 (as

4 added by section 109), there are authorized to

5 be appropriated to the President, acting

6 through the Attorney General, $250,000 for

7 each of fiscal years 2004 and 2005 to carry out

8 training activities for law enforcement officers,

9 prosecutors, and members of the judiciary with

10 respect to trafficking in persons at the Inter11 national Law Enforcement Academies.’’;

12 (5) in subsection (e)—

13 (A) in paragraphs (1) and (2), by striking

14 ‘‘for fiscal year 2003’’ each place it appears and

15 inserting ‘‘for each of the fiscal years 2003

16 through 2005’’; and

17 (B) by adding at the end the following new

18 paragraph:

19 ‘‘(3) RESEARCH.—To carry out the purposes of

20 section 112A, there are authorized to be appro21 priated to the President $300,000 for fiscal year

22 2004 and $300,000 for fiscal year 2005.’’;

23 (6) in subsection (f), by adding at the end be24 fore the period the following: ‘‘and $10,000,000 for

25 each of the fiscal years 2004 and 2005’’; and


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1 (7) by adding at the end the following new sub2 section:

3 ‘‘(g) LIMITATION ON USE OF FUNDS.—

4 ‘‘(1) RESTRICTION ON PROGRAMS.—No funds

5 made available to carry out this division, or any

6 amendment made by this division, may be used to

7 promote, support, or advocate the legalization or

8 practice of prostitution. Nothing in the preceding

9 sentence shall be construed to preclude assistance

10 designed to promote the purposes of this Act by

11 ameliorating the suffering of, or health risks to, vic12 tims while they are being trafficked or after they are

13 out of the situation that resulted from such victims

14 being trafficked.

15 ‘‘(2) RESTRICTION ON ORGANIZATIONS.—No

16 funds made available to carry out this division, or

17 any amendment made by this division, may be used

18 to implement any program that targets victims of se19 vere forms of trafficking in persons described in sec20 tion 103(8)(A) of this Act through any organization

21 that has not stated in either a grant application, a

22 grant agreement, or both, that it does not promote,

23 support, or advocate the legalization or practice of

24 prostitution. The preceding sentence shall not apply

25 to organizations that provide services to individuals


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1 solely after they are no longer engaged in activities

2 that resulted from such victims being trafficked.’’.

3 SEC. 8. TECHNICAL CORRECTIONS.

4 (a) IMMIGRATION AND NATIONALITY ACT.—

5 (1) CLASSES OF NONIMMIGRANT ALIENS.—Sec6 tion 101(a)(15) of the Immigration and Nationality

7 Act (8 U.S.C. 1101(a)(15)) is amended—

8 (A) by moving the margins of subpara9 graphs (T) and (U) 2 ems to the left;

10 (B) in subparagraph (T), by striking

11 ‘‘214(n),’’ and inserting ‘‘214(o),’’;

12 (C) in subparagraph (U), by striking

13 ‘‘214(o),’’ and inserting ‘‘214(p),’’; and

14 (D) in subparagraph (V), by striking

15 ‘‘214(o),’’ and inserting ‘‘214(q),’’.

16 (2) CLASSES OF ALIENS INELIGIBLE FOR VISAS

17 AND ADMISSION.—Section 212(d) of the Immigra18 tion and Nationality Act (8 U.S.C. 1182(d)) is

19 amended by redesignating the paragraph (13) added

20 by section 1513(e) of the Battered Immigrant

21 Women Protection Act of 2000 (title V of division

22 B of Public Law 106–386; 114 Stat. 1536) as para23 graph (14).

24 (3) ADMISSION OF NONIMMIGRANTS.—Section

25 214 of the Immigration and Nationality Act (8


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1 U.S.C. 1184) is amended by redesignating sub2 sections (m) (as added by section 105 of Public Law

3 106–313), (n) (as added by section 107(e) of Public

4 Law 106–386), (o) (as added by section 1513(c) of

5 Public Law 106–386), (o) (as added by section

6 1102(b) of the Legal Immigration Family Equity

7 Act), and (p) (as added by section 1503(b) of the

8 Legal Immigration Family Equity Act) as sub9 sections (n), (o), (p), (q), and (r), respectively.

10 (4) ADJUSTMENT OF STATUS OF NON11 IMMIGRANTS.—Section 245 of the Immigration and

12 Nationality Act (8 U.S.C. 1255) is amended—

13 (A) in the subsection (l) added by section

14 107(f) of Public Law 106–386, by redesig15 nating the second paragraph (2), and para16 graphs (3) and (4), as paragraphs (3), (4), and

17 (5), respectively; and

18 (B) by redesignating the subsection (l)

19 added by section 1513(f) of Public Law 106–

20 386 as subsection (m).

21 (b) TRAFFICKING VICTIMS PROTECTION ACT OF

22 2000.—(1) Section 103(7)(A)(i) of the Trafficking Vic23 tims Protection Act of 2000 (22 U.S.C. 7102(7)(A)(i)) is

24 amended by inserting after ‘‘part II of that Act’’ the folVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00300 Fmt 6633 Sfmt 6601 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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1 lowing: ‘‘in support of programs of nongovernmental orga2 nizations’’.

3 (2) Section 107(g) of the Trafficking Victims Protec4 tion Act of 2000 (22 U.S.C. 7105(g)) is amended by strik5 ing ‘‘214(n)(1)’’ and inserting ‘‘214(o)(2)’’.

Æ


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Mr. SMITH OF NEW JERSEY. And the Chair yields himself 5 minutes to explain this piece of legislation. Let me just make the point 

to my colleagues that back in 2000 we passed landmark legislation 

that established a comprehensive reaction, and really with a number of proactive elements to it, to try to mitigate this modern-day 

slavery that we call human trafficking. It was a bipartisan bill. Mr. 

Davidson, Mr. Lantos and I—and many of us worked night after 

night. It took almost 2 years to enact that legislation. 

Its desire was to protect the victims, the women who have been 

trafficked, or the men—but most of them are women—to provide 

very serious sanctions and criminal penalties and civil penalties on 

those who traffic. It focuses on the governments around the world 

that are complicit or acquiescing to this horrific problem called 

human trafficking. 

That legislation has made a difference. But we are now at the 

point of a need to reauthorize many of the money aspects, although 

much of it was permanent law. And what you have before you 

today is a comprehensive reauthorization. Mr. Lantos is the principal cosponsor. I have introduced the bill, Mr. Pitts is a cosponsor, 

and we have a very broad bipartisan group of individuals in an attempt to make a good piece of legislation even better. 

The legislation has a number of very serious components. We 

have discovered, as in any piece of legislation, there are always 

glitches, something you miss the first time around. These are fixed 

and remedied with the pending legislation before you and I would 

hope that every Member can support this. 

I yield to Mr. Lantos. 

[The prepared statement of Mr. Smith follows:]

PREPARED STATEMENT OF THE HONORABLE CHRISTOPHER H. SMITH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY, AND VICE CHAIRMAN, COMMITTEE ON INTERNATIONAL RELATIONS

H.R. 2620

Chairman Hyde, I thank you for taking up this reauthorization legislation as a 

priority matter. Your leadership and the leadership of this Committee in passing 

the Trafficking Victims Protection Act, and generally being champions for victims 

of trafficking, has made the difference in U.S. law and in the countless lives of those 

victimized through this modern-day slavery. 

Mr. Chairman, I introduced the Trafficking Victims Protection Reauthorization 

Act of 2003, H.R. 2620, along with my good friends Mr. Lantos and Mr. Pitts, because our work in fighting the scourge of human trafficking did not end when the 

President signed the Trafficking Victims Protection Act in October 2000. We have 

not yet eradicated modern-day slavery and, until that day comes, all governments 

must continuously reinforce their efforts to end this endemic violation of human 

rights and human dignity. 

As a result of the TVPA, and our government’s resulting allocation of resources 

to combat trafficking, federal prosecutors initiated prosecutions of 79 traffickers in 

the past two years. That is three times as many as in the two previous years. Nearly 400 survivors of trafficking in the United States have received assistance through 

the Department of Health and Human Services to begin recovering from their trauma and to rebuild their shattered lives. Thanks to the efforts of the State Department, USAID, and the spotlight put on the issue through the annual TIP Report, 

governments worldwide are also taking action against human trafficking. 

But, despite these inroads, countless people continue to be bought and sold for exploitation every day. Victims are facing unintended obstacles in the process of securing needed assistance, including the ‘‘T visa.’’ Law enforcement officials have not yet 

seriously addressed trafficking in persons as an organized crime activity. We haven’t 

yet targeted sex tourism as a contributing factor in the demand for trafficked persons in prostitution. And more specialized, objective research is needed to effectively 

299

counter the phenomenon of trafficking. H.R. 2620 would address these and other 

areas of concern, as well as authorizing funding to continue the U.S. Government’s 

efforts against trafficking. 

H.R. 2620 is the product of months of consultation with the nongovernmental organizations and U.S. Government officials implementing the TVPA. It has five operative sections. 

First, H.R. 2620 would expand the U.S. Government’s trafficking prevention activities by directing the President to create programs that train trafficking survivors 

to educate border and law enforcement officials to identify traffickers and victims 

of trafficking, and the appropriate manner in which to treat such victims. It also 

directs the creation of media programs to inform vulnerable populations and the 

general public about the human rights abuses involved in trafficking. 

The bill would address the involvement of U.S. Government contractors in trafficking. This issue was raised with the Committee last year during a hearing about 

DynCorp contractors’ complicity in human trafficking while working on U.S. Government contracts in Bosnia. H.R. 2620 ensures that trafficking will be a matter of 

discussion between U.S. Government agencies and contractors by requiring that 

grants, contracts or cooperative agreements must contain a clause allowing the U.S. 

Government to terminate the grant, contract or cooperative agreement if the grantee or contractor (a) engages in severe forms of trafficking in persons or procures a 

commercial sex act while the grant, contract, or cooperative agreement is in effect, 

or (b) uses forced labor in the performance of the grant, contract, or cooperative 

agreement. 

H.R. 2620 also seeks to discourage U.S. citizens and others in the U.S. from creating a demand for trafficking through sex tourism. Under the bill, airlines organized under U.S. law, or operating in the U.S., would be required to develop and 

disseminate materials alerting travelers that sex tourism is illegal and will be prosecuted under U.S. law. Much to the dismay of NGOs that have offered to work with 

U.S. airlines on such a program, U.S. carriers have not been willing to do so voluntarily. Air France, on the other hand, has been disseminating such material for 

some time. 

In its second operative section—section number 4 in the bill—H.R. 2620 would enhance protections for trafficking victims by urging the U.S. Government to facilitate 

contact between foreign governments and NGOs, with a view to improving publicprivate cooperation in protecting victims. The remainder of this section addresses 

issues beyond this Committee’s jurisdiction, such as improvements to the TVPA that 

overcome obstacles to obtaining T-visas and other benefits to which victims are entitled. The bill would also make changes to immigration laws to better fulfill the 

TVPA’s intention to treat victims of trafficking similarly to refugees. 

Likewise the third operative section of H.R. 2620, section number 5, falls outside 

this committee’s jurisdiction, but is designed to increase prosecutions of traffickers 

by expanding the jurisdictional basis for prosecuting acts of sex trafficking and by 

add the trafficking offenses created by the TVPA to the list of ‘‘racketeering activities’’ for purposes of the Federal RICO statute. 

Fourth, H.R. 2620 would improve U.S. efforts to combat trafficking. To accomplish 

this, the Interagency Task Force would be required, for the next two years, to report 

on federal trafficking programs and initiatives. The bill would give the Director of 

the State Department’s Anti-Trafficking Office the rank of ‘‘Ambassador-at-Large.’’ 

The bill would require the establishment of a Senior Policy Operating Group to coordinate international trafficking in persons activities of Federal departments and 

agencies. H.R. 2620 also directs the President, through various departments and 

agencies, to conduct specialized research in the area of trafficking in persons. Perhaps most significantly, H.R. 2620 would clarify one of the TVPA criteria for determining whether a foreign government is meeting minimum standards to combat 

trafficking by requiring that the State Department must consider foreign government’s records on convictions and sentences for acts of trafficking, in addition to investigations and prosecutions as the TVPA currently provides. 

Finally, the bill authorizes appropriations for fiscal years 2004 and 2005 to continue our government’s efforts in this area. In fiscal year 2002, the U.S. Government 

allocated $68.2 million to combat trafficking. H.R. 2620 authorizes $105.85 million 

for each of fiscal years 2004 and 2005. The bill also creates a new proviso that no 

funds may be used to promote, support, or advocate the legalization or practice of 

prostitution. Any organization receiving funds must state in a grant application and/

or agreement that it does not promote, support, or advocate the legalization or practice of prostitution. 

Mr. Chairman, the Trafficking Victims Protection Act of 2000 enjoyed broad, bipartisan support in both Houses of Congress. We are making progress in our battle 

against modern day slavery, but clearly there is still much work to be done by govVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00303 Fmt 6633 Sfmt 6621 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL
300

ernment authorities, by civil society, by our faith communities, and by all men and 

women of good will. As lawmakers, we have the opportunity to make our contribution to this endeavor. I strongly urge my colleagues to support this commonsense 

reauthorization bill to support and enhance the good work which has been undertaken.

Mr. LANTOS. Thank you very much, Mr. Chairman. Let me first 

pay public tribute to you for your extraordinary leadership on this 

issue which all of us on both sides of the aisle have admired. I 

would like to ask permission to place my prepared statement in the 

record for the benefit of saving some time; also my prepared statement on the other issues that we are considering. 

I also want to commend my good friends, Mr. Leach and Mr. 

Faleomavaega on their work with respect to the previous legislation. And if I may, Mr. Chairman, I want to recognize three members of the Democratic staff for their excellent work on these three 

bills: David Abramowitz on trafficking and torture victims; Hans 

Hogrfe on torture victims; and Peter Yeo on the Compact of Free 

Association. 

And I yield back the balance of my time. 

[The prepared statement of Mr. Lantos follows:]

PREPARED STATEMENT OF THE HONORABLE TOM LANTOS, A REPRESENTATIVE IN

CONGRESS FROM THE STATE OF CALIFORNIA

H.R. 2620

Mr. Chairman, I am proud to co-sponsor H.R. 2620, the Trafficking Victims Protection Act of 2003, with my good friend from New Jersey, the Vice-Chairman of 

the Committee. And I would like to congratulate him for his continuing dedication 

to the critical issue of trafficking in persons. 

Mr. Chairman, in the 106th Congress, Mr. Smith and our former colleague, Sam 

Gejdenson of Connecticut, expended enormous energy to pass the Trafficking Victims Protection Act of 2000. At that time, thousands of men and women were being 

forced to labor in our fields without pay, to work endless hours in sweatshops, and 

to serve in sexual slavery in cities across this country. U.S. prosecution of traffickers 

faltered because attorneys in our Department of Justice did not have the right tools 

to pursue the new forms of trafficking, which often relied on threats, not chains, 

and on document fraud, not bills of sale. 

Overseas, millions of people were being used as chattel, and the brothels of Bombay and Bangkok were overflowing with prostitutes, many young girls, who were 

forced to provide sex. Governments were barely aware of what was happening to 

their own people, and where they were, they usually blamed the victims and forgot 

about them. 

Today the picture is visibly brighter. Because of the enactment of the Trafficking 

Victims Protection Act of 2000, the Attorney General is prosecuting cases from 

American Samoa to New Jersey. 

Victims are coming forward because of the federal benefits we are offering to 

them, treating them like the refugees that they are. The naming of countries that 

are not making significant efforts to combat trafficking and the threat of sanctions 

against them are forcing measurable changes in the way that governments around 

the world are facing this modern day form of slavery. Modern day slavery is under 

assault from all directions. 

But Mr. Speaker, we need to do more. In the two-and-a-half years since the enactment of the trafficking legislation, we have learned much more about the phenomena of trafficking and how to combat it. The legislation before us today, the 

Trafficking Victims Reauthorization Act of 2003, implements these new lessons. 

Drawing from the conference earlier this year held by the Department of State, 

this bill authorizes new strategies for prevention, including using trafficking victims 

to identify traffickers at the borders and deterring sex tourism, which is part of the 

fuel of sex slavery around the world. 

It increases protection by making measured expansions of the visa category for 

trafficking victims and related provisions to better enable cooperation, particularly 

with respect to state and local trafficking prosecutions, which are increasingly the 

front line of law enforcement in this area. And it enhances prosecution of traffickers 

301

by, for example, ensuring that trafficking is treated like the organized crime that 

it is. 

Perhaps most critically, it demonstrates Congressional commitment to fighting 

this scourge by authorizing additional funds for U.S. agencies to combat this human 

rights crisis around the world. 

Mr. Chairman, this is a good bipartisan bill and I urge all my colleagues to support it.

Mr. SMITH OF NEW JERSEY. I thank you. Without objection, your 

full statement, Mr. Lantos, and that of all Members will be made 

a part of the record, and that goes for mine as well. 

Let me just—I do have an amendment in the nature of a substitute at the desk and the clerk will designate. 

[The information referred to follows:]

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1

H.L.C.

AMENDMENT IN THE NATURE OF A SUBSTITUTE

TO H.R. 2620

OFFERED BY MR. SMITH OF NEW JERSEY

Strike all after the enacting clause and insert the

following:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Trafficking Victims

3 Protection Reauthorization Act of 2003’’.

4 SEC. 2. FINDINGS.

5 Congress finds the following:

6 (1) Trafficking in persons continues to victimize

7 countless men, women, and children in the United

8 States and abroad.

9 (2) Since the enactment of the Trafficking Vic10 tims Protection Act of 2000 (division A of Public

11 Law 106–386), the United States Government has

12 made significant progress in investigating and pros13 ecuting acts of trafficking and in responding to the

14 needs of victims of trafficking in the United States

15 and abroad.

16 (3) On the other hand, victims of trafficking

17 have faced unintended obstacles in the process of se18 curing needed assistance, including admission to the


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1 United States under section 101(a)(15)(T)(i) of the

2 Immigration and Nationality Act.

3 (4) Additional research is needed to fully under4 stand the phenomenon of trafficking in persons and

5 to determine the most effective strategies for com6 bating trafficking in persons.

7 (5) Corruption among foreign law enforcement

8 authorities continues to undermine the efforts by

9 governments to investigate, prosecute, and convict

10 traffickers.

11 (6) International Law Enforcement Academies

12 should be more fully utilized in the effort to train

13 law enforcement authorities, prosecutors, and mem14 bers of the judiciary to address trafficking in per15 sons-related crimes.

16 SEC. 3. ENHANCING PREVENTION OF TRAFFICKING IN PER17 SONS.

18 (a) BORDER INTERDICTION, PUBLIC INFORMATION

19 PROGRAMS, AND COMBATING INTERNATIONAL SEX TOUR20 ISM.—Section 106 of the Trafficking Victims Protection

21 Act of 2000 (22 U.S.C. 7104) is amended—

22 (1) by redesignating subsection (c) as sub23 section (f);

24 (2) by inserting after subsection (b) the fol25 lowing new subsections:


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1 ‘‘(c) BORDER INTERDICTION.—The President shall

2 establish and carry out programs of foreign border inter3 diction by providing grants to nongovernmental organiza4 tions that provide for transit shelters operating at key bor5 der crossings and that help train survivors of trafficking

6 in persons to educate and train border guards and offi7 cials, and other local law enforcement officials, to identify

8 traffickers and victims of severe forms of trafficking, and

9 the appropriate manner in which to treat such victims, as

10 well as, to the extent appropriate, monitoring the imple11 mentation of border interdiction programs, including help12 ing in the identification of such victims to stop the cross13 border transit of victims. The President shall ensure that

14 any program established under this subsection provides

15 the opportunity for any trafficking victim who is freed to

16 return to his or her previous residence if the victim so

17 chooses.

18 ‘‘(d) INTERNATIONAL MEDIA.—The President shall

19 establish and carry out programs that support the produc20 tion of television and radio programs, including documen21 taries, to inform vulnerable populations overseas of the

22 dangers of trafficking, and to increase awareness of the

23 public in countries of destination regarding the slave-like

24 practices and other human rights abuses involved in traf25 ficking, including fostering linkages between individuals


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1 working in the media in different countries to determine

2 the best methods for informing such populations through

3 such media.

4 ‘‘(e) COMBATING INTERNATIONAL SEX TOURISM.—

5 ‘‘(1) DEVELOPMENT AND DISSEMINATION OF

6 MATERIALS.—The President, pursuant to such regu7 lations as may be prescribed, shall (A) require that

8 airlines organized under the laws of the United

9 States and other airlines operating in the United

10 States develop and disseminate materials alerting

11 travelers that sex tourism (as defined in section

12 2423(b-e) of title 18, United States Code) is illegal,

13 will be prosecuted, and presents dangers to those in14 volved, and (B) encourage such airlines to work with

15 nongovernmental organizations in developing these

16 materials. Such materials may include, for example,

17 brochures, public service announcements, and bill18 boards.

19 ‘‘(2) MONITORING OF COMPLIANCE.—The

20 President shall monitor compliance with the require21 ments of paragraph (1).’’; and

22 (3) in subsection (f) (as redesignated), by strik23 ing ‘‘initiatives described in subsections (a) and (b)’’

24 and inserting ‘‘initiatives and programs described in

25 subsections (a) through (e)’’.


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1 (b) TERMINATION OF CERTAIN GRANTS, CONTRACTS

2 AND COOPERATIVE AGREEMENTS.—Section 106 of such

3 Act (as amended by subsection (a)) is further amended

4 by adding at the end the following new subsection:

5 ‘‘(g) TERMINATION OF CERTAIN GRANTS, CON6 TRACTS AND COOPERATIVE AGREEMENTS.—

7 ‘‘(1) TERMINATION.—

8 ‘‘(A) IN GENERAL.—The President shall

9 ensure that any grant, contract, or cooperative

10 agreement provided or entered into by a Fed11 eral department or agency under which funds

12 described in paragraph (2) are to be provided

13 to a private entity, in whole or in part, shall in14 clude a condition that authorizes the depart15 ment or agency to terminate the grant, con16 tract, or cooperative agreement, without pen17 alty, if the grantee or any subgrantee, or the

18 contractor or any subcontractor (i) engages in

19 severe forms of trafficking in persons or has

20 procured a commercial sex act during the pe21 riod of time that the grant, contract, or cooper22 ative agreement is in effect, or (ii) uses forced

23 labor in the performance of the grant, contract,

24 or cooperative agreement.


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1 ‘‘(B) DEFINITION.—In subparagraph (A),

2 the term ‘severe forms of trafficking in persons’

3 has the meaning given the term in section

4 103(8) of the Trafficking Victims Protection

5 Act of 2000 (22 U.S.C. 7102(8)).

6 ‘‘(2) ASSISTANCE DESCRIBED.—Funds referred

7 to in paragraph (1) are funds made available to

8 carry out any program, project, or activity funded

9 under major functional budget category 150 (relat10 ing to international affairs).’’.

11 SEC. 4. ENHANCING PROTECTION FOR TRAFFICKING VIC12 TIMS.

13 (a) AMENDMENTS TO TRAFFICKING VICTIMS PRO14 TECTION ACT OF 2000.—

15 (1) COOPERATION BETWEEN FOREIGN GOVERN16 MENTS AND NONGOVERNMENTAL ORGANIZATIONS.—

17 Section 107(a)(1)(B) of the Trafficking Victims Pro18 tection Act of 2000 (22 U.S.C. 7105(a)(1)(B)) is

19 amended by adding at the end before the period the

20 following: ‘‘, and by facilitating contact between rel21 evant foreign government agencies and such non22 governmental organizations to facilitate cooperation

23 between the foreign governments and such organiza24 tions’’.


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1 (2) ASSISTANCE FOR FAMILY MEMBERS OF VIC2 TIMS OF TRAFFICKING IN UNITED STATES.—Section

3 107(b)(1) of the Trafficking Victims Protection Act

4 of 2000 (22 U.S.C. 7105(b)(1)) is amended—

5 (A) in subparagraph (A), by inserting ‘‘, or

6 an alien classified as a nonimmigrant under

7 section 101(a)(15)(T)(ii),’’ after ‘‘in persons’’;

8 and

9 (B) in subparagraph (B), by inserting

10 ‘‘and aliens classified as a nonimmigrant under

11 section 101(a)(15)(T)(ii),’’ after ‘‘United

12 States,’’.

13 (3) CERTIFICATION OF VICTIMS OF A SEVERE

14 FORM OF TRAFFICKING IN PERSONS.—Section

15 107(b)(1)(E)(i)(I) of the Trafficking Victims Protec16 tion Act of 2000 (22 U.S.C. 7105(b)(1)(E)(i)(I)) is

17 amended by striking ‘‘the investigation and prosecu18 tion’’ and inserting ‘‘any Federal, State, or local in19 vestigation or prosecution’’.

20 (4) PRIVATE RIGHT OF ACTION.—Section

21 107(b) of the Trafficking Victims Protection Act of

22 2000 (22 U.S.C. 7105(b)) is amended by adding at

23 the end the following new paragraph:

24 ‘‘(3) CIVIL ACTION.—An individual who is a

25 victim of a violation of section 1589, 1590, or 1591


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1 of title 18, United States Code, may bring a civil ac2 tion in any appropriate district court of the United

3 States. The court may award actual damages, puni4 tive damages, reasonable attorneys’ fees, and other

5 litigation costs reasonably incurred.’’.

6 (b) AMENDMENTS TO IMMIGRATION AND NATION7 ALITY ACT.—

8 (1) DEFINITIONS.—Section 101(a)(15)(T) of

9 the Immigration and Nationality Act (8 U.S.C.

10 1101(a)(15)(T)) is amended—

11 (A) in clause (i)(III)(aa), by inserting

12 ‘‘from any Federal, State, or local law enforce13 ment agency’’ after ‘‘reasonable request’’;

14 (B) in clause (i)(III)(bb), by striking ‘‘15

15 years of age,’’ and inserting ‘‘18 years of age,’’;

16 and

17 (C) in clause (ii)(I), by inserting ‘‘unmar18 ried siblings under 18 years of age,’’ before

19 ‘‘and parents’’.

20 (2) ADMISSION OF NONIMMIGRANTS.—Section

21 214(n)(3) of the Immigration and Nationality Act (8

22 U.S.C. 1184(n)(3)) is amended by inserting ‘‘sib23 lings,’’ before ‘‘or parents’’.

24 (3) ADJUSTMENT OF STATUS.—Section 245(l)

25 of the Immigration and Nationality Act (8 U.S.C.


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H.L.C.

1 1255(l)) (as added by section 107(f) of Public Law

2 106–386) is amended—

3 (A) in paragraph (1)—

4 (i) by striking ‘‘admitted under that

5 section’’ and inserting ‘‘admitted under

6 section 101(a)(15)(T)(ii)’’; and

7 (ii) by inserting ‘‘sibling,’’ after ‘‘par8 ents,’’; and

9 (B) in paragraph (3)(B), by inserting ‘‘sib10 lings,’’ after ‘‘daughters,’’.

11 (c) WAIVER OF PUBLIC CHARGE GROUND FOR INAD12 MISSIBILITY; PENALTIES FOR UNLAWFUL DISCLOSURE

13 OF INFORMATION.—Section 214(n) of the Immigration

14 and Nationality Act (8 U.S.C. 1184(n)) is amended by

15 adding at the end the following:

16 ‘‘(4) In determining the admissibility of an alien

17 under section 101(a)(15)(T), section 212(a)(4) shall not

18 apply.

19 ‘‘(5)(A) Except as otherwise provided in this para20 graph, in no case may the Secretary of State, the Sec21 retary of Homeland Security, or any other official or em22 ployee of the Department of State or the Department of

23 Homeland Security (including any bureau or agency of ei24 ther of such Departments) permit use by, or disclosure

25 to, anyone, other than a sworn officer or employee of one


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1 of such Departments for legitimate Department purposes,

2 of any information that relates to an alien who has prop3 erly filed a bona fide application for, or been granted, a

4 visa or nonimmigrant status under section

5 101(a)(15)(T)(i).

6 ‘‘(B) The limitation under subparagraph (A) shall

7 terminate when the application described in such subpara8 graph is denied and all opportunities for appeal of the de9 nial have been exhausted.

10 ‘‘(C) The Secretary of State and the Secretary of

11 Homeland Security may each provide, in each Secretary’s

12 discretion, for the disclosure of information described in

13 subparagraph (A) in the same manner and circumstances

14 as census information may be disclosed by the Secretary

15 of Commerce under section 8 of title 13, United States

16 Code.

17 ‘‘(D) The Secretary of State and the Secretary of

18 Homeland Security may each provide, in each Secretary’s

19 discretion, for the disclosure of information described in

20 subparagraph (A) to law enforcement officials to be used

21 solely for a legitimate law enforcement purpose, such as

22 the implementation of section 105(a) of this Act, section

23 414(c) of the Uniting and Strengthening America by Pro24 viding Appropriate Tools Required to Intercept and Ob25 struct Terrorism (USA PATRIOT ACT) Act of 2001 (8


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H.L.C.

1 U.S.C. 1365a note), and the interoperable electronic data

2 system described in section 202 of the Enhanced Border

3 Security and Visa Entry Reform Act of 2002 (8 U.S.C.

4 1722).

5 ‘‘(E) Subparagraph (A) shall not be construed as pre6 venting disclosure of information in connection with judi7 cial review of a determination in a manner that protects

8 the confidentiality of such information.

9 ‘‘(F) Subparagraph (A) shall not be construed to su10 persede section 222(f).

11 ‘‘(G) Subparagraph (A) shall not apply if the alien

12 is an adult and has waived the restrictions of such sub13 paragraph.

14 ‘‘(H) Whoever willfully uses, publishes, or permits in15 formation to be disclosed in violation of this paragraph

16 shall be subject to appropriate disciplinary action and sub17 ject to a civil money penalty of not more than $5,000 for

18 each such violation.’’.

19 SEC. 5. ENHANCING PROSECUTIONS OF TRAFFICKERS.

20 (a) SEX TRAFFICKING OF CHILDREN OR BY FORCE,

21 FRAUD, OR COERCION.—Section 1591 of title 18, United

22 States Code, is amended—

23 (1) in the heading, by inserting a comma after

24 ‘‘FRAUD’’;


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H.L.C.

1 (2) in subsection (a)(1), by striking ‘‘in or af2 fecting interstate commerce’’ and inserting ‘‘in or af3 fecting interstate or foreign commerce, or within the

4 special maritime and territorial jurisdiction of the

5 United States’’; and

6 (3) in subsection (b), by striking ‘‘the person

7 transported’’ each place it appears and inserting

8 ‘‘the person recruited, enticed, harbored, trans9 ported, provided, or obtained’’.

10 (b) DEFINITION OF RACKETEERING ACTIVITY.—Sec11 tion 1961(1) of title 18, United States Code, is amended

12 by inserting after ‘‘murder-for-hire),’’ the following: ‘‘sec13 tion 1589 (relating to forced labor), section 1590 (relating

14 to trafficking with respect to peonage, slavery, involuntary

15 servitude, or forced labor), section 1591 (relating to sex

16 trafficking of children or by force, fraud, or coercion),’’.

17 SEC. 6. ENHANCING UNITED STATES EFFORTS TO COMBAT

18 TRAFFICKING.

19 (a) REPORT.—

20 (1) IN GENERAL.—Section 105(d) of the Vic21 tims of Trafficking and Violence Protection Act of

22 2000 (22 U.S.C. 7103(d)) is amended by adding at

23 the end the following new paragraph:

24 ‘‘(7) Not later than February 1, 2004, and

25 2005, the Task Force, acting through the Office to


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1 Monitor and Combat Trafficking of the Department

2 of State (established under subsection (e)), shall

3 submit to the Committee on Ways and Means, the

4 Committee on International Relations, and the Com5 mittee on the Judiciary of the House of Representa6 tives and the Committee on Finance, the Committee

7 on Foreign Relations, and the Committee on the Ju8 diciary of the Senate, a report on Federal agencies

9 that are implementing any provision of this division,

10 or any amendment made by this division, which shall

11 include, at a minimum, information on—

12 ‘‘(A) the number of persons who received

13 benefits or other services under section 107(b)

14 in connection with programs or activities fund15 ed or administered by the Secretary of Health

16 and Human Services, the Secretary of Labor,

17 the Board of Directors of the Legal Services

18 Corporation, and other appropriate Federal

19 agencies during the preceding fiscal year;

20 ‘‘(B) the number of persons who have been

21 granted continued presence in the United

22 States under section 107(c)(3) during the pre23 ceding fiscal year;

24 ‘‘(C) the number of persons who have ap25 plied for, been granted, or been denied a visa or


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1 otherwise provided status under section

2 101(a)(15)(T)(i) of the Immigration and Na3 tionality Act (8 U.S.C. 1101(a)(15)(T)(i)) dur4 ing the preceding fiscal year;

5 ‘‘(D) the number of persons who have been

6 charged or convicted under one or more of sec7 tions 1581, 1583, 1584, 1589, 1590, 1591,

8 1592, or 1594 of title 18, United States Code,

9 during the preceding fiscal year and the sen10 tences imposed against each such person;

11 ‘‘(E) the amount, recipient, and purpose of

12 each grant issued by any Federal agency to

13 carry out the purposes of sections 106 and 107

14 of this Act, or section 134 of the Foreign As15 sistance Act of 1961, during the preceding fis16 cal year;

17 ‘‘(F) the nature of training conducted pur18 suant to section 107(c)(4) during the preceding

19 fiscal year; and

20 ‘‘(G) the activities undertaken by the Sen21 ior Policy Operating Group to carry out its re22 sponsibilities under section 105(f) of this divi23 sion.’’.

24 (2) CONFORMING AMENDMENT.—Section

25 107(b)(1) of the Victims of Trafficking and Violence


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1 Protection Act of 2000 (22 U.S.C. 7105(b)(1)) is

2 amended by striking subparagraph (D).

3 (b) SUPPORT FOR THE TASK FORCE.—

4 (1) AMENDMENT.—The second sentence of sec5 tion 105(e) of the Victims of Trafficking and Vio6 lence Protection Act of 2000 (22 U.S.C. 7103(e)) is

7 amended by inserting at the end before the period

8 the following: ‘‘, who shall be appointed by the

9 President, by and with the advice and consent of the

10 Senate, with the rank of Ambassador-at-Large’’.

11 (2) APPLICABILITY.—The individual who holds

12 the position of Director of the Office to Monitor and

13 Combat Trafficking of the Department of State may

14 continue to hold such position notwithstanding the

15 amendment made by paragraph (1).

16 (c) SENIOR POLICY OPERATING GROUP.—

17 (1) AMENDMENT.—Section 105 of the Victims

18 of Trafficking and Violence Protection Act of 2000

19 (22 U.S.C. 7103) is amended by adding at the end

20 the following new subsection:

21 ‘‘(f) SENIOR POLICY OPERATING GROUP.—

22 ‘‘(1) ESTABLISHMENT.—There shall be estab23 lished within the Task Force a Senior Policy Oper24 ating Group.

25 ‘‘(2) MEMBERSHIP; RELATED MATTERS.—


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1 ‘‘(A) IN GENERAL.—The Operating Group

2 shall consist of the senior officials designated as

3 representatives of the appointed members of the

4 Task Force (pursuant to Executive Order

5 13257 of February 13, 2002).

6 ‘‘(B) CHAIRPERSON.—The Operating

7 Group shall be chaired by the Director of the

8 Office to Monitor and Combat Trafficking of

9 the Department of State.

10 ‘‘(C) MEETINGS.—The Operating Group

11 shall meet on a regular basis at the call of the

12 Chairperson.

13 ‘‘(3) DUTIES.—The Operating Group shall co14 ordinate activities of Federal departments and agen15 cies regarding policies (including grants and grant

16 policies) involving the international trafficking in

17 persons and the implementation of this division.

18 ‘‘(4) AVAILABILITY OF INFORMATION.—Each

19 Federal department or agency represented on the

20 Operating Group shall fully share all information

21 with such Group regarding the department or agen22 cy’s plans, before and after final agency decisions

23 are made, on all matters relating to grants, grant

24 policies, and other significant actions regarding the


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1 international trafficking in persons and the imple2 mentation of this division.

3 ‘‘(5) REGULATIONS.—Not later than 90 days

4 after the date of the enactment of the Trafficking

5 Victims Protection Reauthorization Act of 2003, the

6 President shall promulgate regulations to implement

7 this section, including regulations to carry out para8 graph (4).’’.

9 (2) CONFORMING AMENDMENT.—Section 406

10 of the Department of State and Related Agency Ap11 propriations Act, 2003 (as contained in division B of

12 Public Law 108–7) is hereby repealed.

13 (d) MINIMUM STANDARDS FOR THE ELIMINATION OF

14 TRAFFICKING.—Section 108(b) of the Victims of Traf15 ficking and Violence Protection Act of 2000 (22 U.S.C.

16 7106(b)) is amended—

17 (1) in paragraph (1)—

18 (A) by striking ‘‘that take place wholly or

19 partly within the territory of the country’’ and

20 inserting ‘‘, and convicts and sentences persons

21 responsible for such acts, that take place wholly

22 or partly within the territory of the country’’;

23 and

24 (B) by adding at the end the following new

25 sentence: ‘‘After reasonable requests from the


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18

H.L.C.

1 Department of State for data regarding inves2 tigations, prosecutions, convictions, and sen3 tences, a government which does not provide

4 such data consistent with its resources shall be

5 presumed not to have vigorously investigated,

6 prosecuted, convicted or sentenced such acts.’’;

7 and

8 (2) in paragraph (7)—

9 (A) by striking ‘‘and prosecutes’’ and in10 serting ‘‘, prosecutes, convicts, and sentences’’;

11 and

12 (B) by adding at the end the following new

13 sentence: ‘‘After reasonable requests from the

14 Department of State for data regarding such

15 investigations, prosecutions, convictions, and

16 sentences, a government which does not provide

17 such data consistent with its resources shall be

18 presumed not to have vigorously investigated,

19 prosecuted, convicted, or sentenced such acts.’’.

20 (e) ENHANCING UNITED STATES ASSISTANCE.—Sec21 tion 134(b)of the Foreign Assistance Act of 1961 (22

22 U.S.C. 2152d(b)) is amended by adding at the end the

23 following new sentence: ‘‘Assistance may be provided

24 under this section notwithstanding section 660 of this

25 Act.’’.


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19

H.L.C.

1 (f) RESEARCH RELATING TO TRAFFICKING IN PER2 SONS.—

3 (1) IN GENERAL.—The Victims of Trafficking

4 and Violence Protection Act of 2000 (22 U.S.C.

5 7101 et seq.) is amended by inserting after section

6 112 the following new section:

7 ‘‘SEC. 112A. RESEARCH ON DOMESTIC AND INTERNATIONAL

8 TRAFFICKING IN PERSONS.

9 ‘‘The President, acting through the Council of Eco10 nomic Advisors, the National Research Council of the Na11 tional Academies, the Secretary of Labor, the Secretary

12 of Health and Human Services, the Attorney General, the

13 Secretary of State, the Administrator of the United States

14 Agency for International Development, and the Director

15 of Central Intelligence, shall carry out research, including

16 by providing grants to nongovernmental organizations,

17 which furthers the purposes of this division and provides

18 data to address the problems identified in the findings of

19 this division. Such research initiatives shall, to the max20 imum extent practicable, include, but not be limited to,

21 the following:

22 ‘‘(1) The economic causes and consequences of

23 trafficking in persons.

24 ‘‘(2) The effectiveness of programs and initia25 tives funded or administered by Federal agencies to


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H.L.C.

1 prevent trafficking in persons and to protect and as2 sist victims of trafficking.

3 ‘‘(3) The interrelationship between trafficking

4 in persons and global health risks.’’.

5 (2) CONFORMING AMENDMENT.—The table of

6 contents of the Victims of Trafficking and Violence

7 Protection Act of 2000 is amended by inserting after

8 the item relating to section 112 the following new

9 item:

‘‘Sec. 112A. Research on domestic and international trafficking in persons.’’.

10 SEC. 7. AUTHORIZATION OF APPROPRIATIONS; RELATED

11 MATTERS.

12 Section 113 of the Trafficking Victims Protection Act

13 of 2000 (22 U.S.C. 7110) is amended—

14 (1) in subsection (a)—

15 (A) by striking ‘‘105’’ and inserting

16 ‘‘105(e), 105(f),’’; and

17 (B) by striking ‘‘and $3,000,000 for each

18 of the fiscal years 2002 and 2003’’ and insert19 ing ‘‘, $3,000,000 for each of the fiscal years

20 2002 and 2003, and $5,000,000 for each of the

21 fiscal years 2004 and 2005’’;

22 (2) in subsection (b), by adding at the end be23 fore the period the following: ‘‘and $15,000,000 for

24 each of the fiscal years 2004 and 2005’’;

25 (3) in subsection (c)—


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21

H.L.C.

1 (A) in paragraph (1) to read as follows:

2 ‘‘(1) BILATERAL ASSISTANCE TO COMBAT TRAF3 FICKING.—

4 ‘‘(A) PREVENTION.—To carry out the pur5 poses of section 106, there are authorized to be

6 appropriated to the Secretary of State

7 $10,000,000 for each of the fiscal years 2004

8 and 2005.

9 ‘‘(B) PROTECTION.—To carry out the pur10 poses of section 107(a), there are authorized to

11 be appropriated to the Secretary of State

12 $15,000,000 for fiscal year 2003 and

13 $10,000,000 for each of the fiscal years 2004

14 and 2005.

15 ‘‘(C) PROSECUTION AND MEETING MIN16 IMUM STANDARDS.—To carry out the purposes

17 of section 134 of the Foreign Assistance Act of

18 1961, there are authorized to be appropriated

19 $10,000,000 for each of the fiscal years 2004

20 and 2005 to assist in promoting prosecution of

21 traffickers and otherwise to assist countries in

22 meeting the minimum standards described in

23 section 108 of this Act, including $250,000 for

24 each such fiscal year to carry out training ac25 tivities for law enforcement officers, prosecuVerDate Mar 21 2002 12:21 Nov 09, 2003 Jkt 088500 PO 00000 Frm 00326 Fmt 6633 Sfmt 6601 F:\WORK\FULL\M072303\88500 HINTREL1 PsN: SHIRL

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H.L.C.

1 tors, and members of the judiciary with respect

2 to trafficking in persons at the International

3 Law Enforcement Academies.’’; and

4 (B) in paragraph (2), by striking ‘‘for each

5 of the fiscal years 2001, 2002, and 2003’’ and

6 inserting ‘‘for each of the fiscal years 2001

7 through 2005’’;

8 (4) in subsection (d)—

9 (A) by adding at the end before the period

10 the following: ‘‘and $15,000,000 for each of the

11 fiscal years 2004 and 2005’’; and

12 (B) by adding at the end the following new

13 sentence: ‘‘To carry out the purposes of section

14 134 of the Foreign Assistance Act of 1961 (as

15 added by section 109), there are authorized to

16 be appropriated to the President, acting

17 through the Attorney General, $250,000 for

18 each of fiscal years 2004 and 2005 to carry out

19 training activities for law enforcement officers,

20 prosecutors, and members of the judiciary with

21 respect to trafficking in persons at the Inter22 national Law Enforcement Academies.’’;

23 (5) in subsection (e)—

24 (A) in paragraphs (1) and (2), by striking

25 ‘‘for fiscal year 2003’’ each place it appears and


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23

H.L.C.

1 inserting ‘‘for each of the fiscal years 2003

2 through 2005’’; and

3 (B) by adding at the end the following new

4 paragraph:

5 ‘‘(3) RESEARCH.—To carry out the purposes of

6 section 112A, there are authorized to be appro7 priated to the President $300,000 for fiscal year

8 2004 and $300,000 for fiscal year 2005.’’;

9 (6) in subsection (f), by adding at the end be10 fore the period the following: ‘‘and $10,000,000 for

11 each of the fiscal years 2004 and 2005’’; and

12 (7) by adding at the end the following new sub13 section:

14 ‘‘(g) LIMITATION ON USE OF FUNDS.—

15 ‘‘(1) RESTRICTION ON PROGRAMS.—No funds

16 made available to carry out this division, or any

17 amendment made by this division, may be used to

18 promote, support, or advocate the legalization or

19 practice of prostitution. Nothing in the preceding

20 sentence shall be construed to preclude assistance

21 designed to promote the purposes of this Act by

22 ameliorating the suffering of, or health risks to, vic23 tims while they are being trafficked or after they are

24 out of the situation that resulted from such victims

25 being trafficked.


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H.L.C.

1 ‘‘(2) RESTRICTION ON ORGANIZATIONS.—No

2 funds made available to carry out this division, or

3 any amendment made by this division, may be used

4 to implement any program that targets victims of se5 vere forms of trafficking in persons described in sec6 tion 103(8)(A) of this Act through any organization

7 that has not stated in either a grant application, a

8 grant agreement, or both, that it does not promote,

9 support, or advocate the legalization or practice of

10 prostitution. The preceding sentence shall not apply

11 to organizations that provide services to individuals

12 solely after they are no longer engaged in activities

13 that resulted from such victims being trafficked.’’.

14 SEC. 8. TECHNICAL CORRECTIONS.

15 (a) IMMIGRATION AND NATIONALITY ACT.—

16 (1) CLASSES OF NONIMMIGRANT ALIENS.—Sec17 tion 101(a)(15) of the Immigration and Nationality

18 Act (8 U.S.C. 1101(a)(15)) is amended—

19 (A) by moving the margins of subpara20 graphs (T) and (U) 2 ems to the left;

21 (B) in subparagraph (T), by striking

22 ‘‘214(n),’’ and inserting ‘‘214(o),’’;

23 (C) in subparagraph (U), by striking

24 ‘‘214(o),’’ and inserting ‘‘214(p),’’; and


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H.L.C.

1 (D) in subparagraph (V), by striking

2 ‘‘214(o),’’ and inserting ‘‘214(q),’’.

3 (2) CLASSES OF ALIENS INELIGIBLE FOR VISAS

4 AND ADMISSION.—Section 212(d) of the Immigra5 tion and Nationality Act (8 U.S.C. 1182(d)) is

6 amended by redesignating the paragraph (13) added

7 by section 1513(e) of the Battered Immigrant

8 Women Protection Act of 2000 (title V of division

9 B of Public Law 106–386; 114 Stat. 1536) as para10 graph (14).

11 (3) ADMISSION OF NONIMMIGRANTS.—Section

12 214 of the Immigration and Nationality Act (8

13 U.S.C. 1184) is amended by redesignating sub14 sections (m) (as added by section 105 of Public Law

15 106–313), (n) (as added by section 107(e) of Public

16 Law 106–386), (o) (as added by section 1513(c) of

17 Public Law 106–386), (o) (as added by section

18 1102(b) of the Legal Immigration Family Equity

19 Act), and (p) (as added by section 1503(b) of the

20 Legal Immigration Family Equity Act) as sub21 sections (n), (o), (p), (q), and (r), respectively.

22 (4) ADJUSTMENT OF STATUS OF NON23 IMMIGRANTS.—Section 245 of the Immigration and

24 Nationality Act (8 U.S.C. 1255) is amended—


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26

H.L.C.

1 (A) in the subsection (l) added by section

2 107(f) of Public Law 106–386, by redesig3 nating the second paragraph (2), and para4 graphs (3) and (4), as paragraphs (3), (4), and

5 (5), respectively; and

6 (B) by redesignating the subsection (l)

7 added by section 1513(f) of Public Law 106–

8 386 as subsection (m).

9 (b) TRAFFICKING VICTIMS PROTECTION ACT OF

10 2000.—(1) Section 103(7)(A)(i) of the Trafficking Vic11 tims Protection Act of 2000 (22 U.S.C. 7102(7)(A)(i)) is

12 amended by inserting after ‘‘part II of that Act’’ the fol13 lowing: ‘‘in support of programs of nongovernmental orga14 nizations’’.

15 (2) Section 107(g) of the Trafficking Victims Protec16 tion Act of 2000 (22 U.S.C. 7105(g)) is amended by strik17 ing ‘‘214(n)(1)’’ and inserting ‘‘214(o)(2)’’.


88500e.ABA
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The CLERK. Amendment in the nature of a substitute offered by 

Mr. Smith: Strike all after the enacting clause——

Mr. SMITH OF NEW JERSEY. Without objection, the amendment in 

the nature of a substitute will be considered as read. And just very 

briefly, this is a comprehensive substitute that again as we worked 

through the original text in a bipartisan way with Mr. Lantos and 

his staff and my staff as well, and the Committee staff. And we 

have produced a product, I think, that makes major changes in a 

number of areas to make a good bill, a good law, even better. 

And would anybody want to be heard on the pending amendment? 

Mr. SMITH OF MICHIGAN. Mr. Chairman, could you give us just 

the highlights between the original bill and the changes of the substitute? 

Mr. SMITH OF NEW JERSEY. Okay. What we’re doing is we have 

a number of pieces of provisions in this to make the T visa, which 

was that visa that we established for the traffic victims, much 

more usable. We have found that the 15- to 18-year-olds, for example, were not getting the T visa in a timely fashion because of some 

glitches in the law that were unattended. That’s fixed in a technical fashion in this legislation. 

We have made better language dealing with sex tourism. We 

know for a fact and it’s already current law that sex tourism is illegal and has a very significant penalty for those who engage in it. 

Our new provision in the law makes it better by requiring the airlines, either through pamphlets or some other means, to make 

their passengers aware that this is illegal. This is really an alert 

system, so that we can mitigate that kind of activity we will. 

I think if more people are informed. The bill would also enhance 

protections for trafficking victims by urging the U.S. Government 

to facilitate contact between foreign governments and NGOs. We 

have found over the last 3 years that has not happened often 

enough. 

This amendment seeks—and the underlying bill did it as well—

but this does it in a more comprehensive fashion. One of the provisions that we have in the bill and in the amendment in the nature 

of a substitute is to make the Anti-Trafficking Office—right now, 

John Miller, our former colleague is the head of that office. This 

amendment would raise or elevate his position to Ambassador at 

Large. And that is a very important, we think, recognition of the 

work not only that he is doing individually, but what the office 

ought to be all about. 

If this is as a high of a priority issue that we claim it is, and 

it is—just like religious persecution, we have an Ambassador at 

Large, John Hanford who works on religious persecution issues—

trafficking ought to be similar, horizontally important in terms of 

its stature, Ambassador at Large doing this work as well. 

So again, it is a bill filled with tweaks, changes, upgrades, and 

the amendment in the nature of a substitute simply further works 

with it in a multiple of areas. There is no real divergence from the 

original pending legislation. 

Mr. SMITH OF MICHIGAN. Thank you. 

Mr. FALEOMAVAEGA. Will the Chairman yield just for further 

verification? 

329

Mr. SMITH OF NEW JERSEY. Mr. Faleomavaega. 

Mr. FALEOMAVAEGA. Just for further clarification. I certainly 

would appreciate the Chairman’s assistance again on the issue of 

T visas, by way of making sure that there is no abuse of the use 

of the T visa to the extent that people pretend like they are subjected to human trafficking when they jump into the T visa program, when in fact they really are not affected or are not in any 

way subjected to the things that we are trying to protect them 

from, like being forced labor and all of that. 

I wanted to ask the Chairman if the T visa program is structured 

in such a way that we don’t have abuse in its use. 

Mr. SMITH OF NEW JERSEY. I want to assure the gentleman, Mr. 

Faleomavaega, that if anything, the T visa has been too narrowly 

construed by the Department. What we are trying to do is to make 

sure that every trafficked person—and again we are talking mostly 

about women—is given the opportunity not to be returned to that 

cycle of violence that they have now just recently escaped from. 

As you know, prior to the trafficking legislation in the year 2000, 

the customary way of dealing with someone who was rescued from 

a brothel and had been trafficked was to put them on a plane and 

send them back to Kiev or Saint Petersburg or some other point 

where the cycle of violence would continue afresh. The legislation 

has changed that. But now we have found that there have been 

some gaps and we are trying to close those gaps. 

Mr. FALEOMAVAEGA. Thank you. 

Mr. SMITH OF NEW JERSEY. So I don’t think of any of our immigration or asylum or any protection programs, this one probably 

more than just about any other is less likely to lend itself to exploitation and abuse. 

Are there any amendments to the pending amendment in the nature of a substitute? 

Mr. TANCREDO. No amendment, Mr. Chairman, but I do have a 

question. 

Mr. SMITH OF NEW JERSEY. Go ahead. 

Mr. TANCREDO. Mr. Chairman, just to follow on with Mr. 

Faleomavaega’s question to you, are there provisions in the bill 

that are still there, or were they weakened by your amendment to 

the bill, that change the way in which people have to go about 

proving their status as a trafficked person? 

Mr. SMITH OF NEW JERSEY. No, nothing is weakend. Nothing has 

changed in that regard. What we found—here was one of the 

glitches that we fix in this legislation. Those who are under 18 who 

are found to have been trafficked, there is a presumption that they 

don’t have to prove force or fraud or coercion by reason of their 

minor status. 

Unfortunately, when it came to the T visa, the 15 to 18 year-olds 

had to participate in and be involved in the prosecution, putting an 

onerous burden on a 15-year-old to be part of a prosecution against 

a trafficker. Even though the standard is they don’t have to be the 

chief witness, but we believe that if we are going to provide them 

with this ability to find safe haven here, we ought not to put that 

additional burden of being part of a prosecution. They can do so 

voluntarily, but they don’t have to do it as a prerequisite of getting 

330

the T visa, and that was a major oversight in the original legislation. 

We heard back from many of the NGOs who deal with asylum 

seekers, and especially women who have been exploited in this 

way, and it was especially for a young teenager too much of a wall 

for them to climb, to be part of a prosecution in that way. Again, 

voluntarily they can do it, but there is no mandatory aspect to it. 

Mr. FALEOMAVAEGA. Will the Chairman yield further? 

Mr. SMITH OF NEW JERSEY. Sure. 

Mr. TANCREDO. Thank you, Mr. Chairman. 

Mr. FALEOMAVAEGA. I’m sorry to ask so many questions, but I 

think on the basis of my presumption that the human trafficking 

issues are probably worse in the Asian Pacific region simply because of the numbers, and probably more, I was just curious if 

there was any provision in the proposed substitute where there is 

better identification in the region to make sure that they are addressed properly and in a more forceful fashion. 

In other words, my concern is that if the trafficking is occurring 

in the Asian Pacific 10 times worse than it is in other parts of the 

world, I would hope that some provision is given that the resources 

obviously ought to be emphasized in the areas where it is most 

common. 

And here again, I make this presumption that I think human 

trafficking in the Asian Pacific region occurs a lot more often and 

there are probably greater abuses there than in other regions of 

the world. I just wondered if the Chairman has given any provisions to address the concern that there is a priority, a sense of 

emergency, to really address those areas where it is most prevalent. 

Mr. SMITH OF NEW JERSEY. I appreciate the question and your 

point is very well taken. We have a provision in the bill, and it is 

in the amendment in the nature of a substitute, that requires better analysis and study. What we have found is that we are still 

dealing, even now, 3 years later, with a dearth of information with 

regards to what is really going on. I mean, the State Department 

this year put out its third report, the Trafficking in Persons Report. 

It is the best of each of the reports that have been put out, but it 

still lacks a lot of basic information that we need to know. 

And you know, just to get back to what are some of the changes 

that we made in this bill—and maybe I should have gone through 

my 10-minute speech. What we found in the original bill, we talked 

about the importance in judging nations, whether or not they are 

serious about mitigating and ending trafficking, as to whether or 

not they get investigations and prosecutions. 

Well, we didn’t take it the step further and say convictions and 

sentencing, and it turned out that that’s one of the games that we 

think is being played. You can arrest somebody and then nothing 

happens. We want to know how many people went to jail, especially the ring leaders in these trafficking operations, and use that 

as a better criteria. 

But in terms of regional we are—and your point will be well 

taken I think with the Administration. They need to look in your 

part of the world as well, to make sure that it is adequately covered. 

331

We also have an increase in the authorization from 68.2 million 

to 105.8 million because we have recognized that the resources still 

are not enough. This is a war. This is human slavery. And it seems 

to me if we are serious about it, we need to match with enhanced 

authorizations and appropriations that need. So your point was 

very well taken. 

Mr. FALEOMAVAEGA. Thank you. 

Mr. SMITH OF NEW JERSEY. Are there any amendments by my 

colleagues? If not, the question occurs on the amendment in the nature of a substitute. 

All those in favor say aye. Those opposed say no. 

The ayes have it. Without objection, the previous question, we 

will take this as ordered and we will take this up later in the day. 

Let me now present to the Committee the third item on our 

agenda, and it is H.R. 1813, the Torture Victims Relief Authorization Act of 2003 for purposes of markup and move its favorable recommendation to the House. Without objection, the bill will be considered as read and open for amendment at any point. 

[H.R. 1813 follows:]

332

1

I

108TH CONGRESS

1ST SESSION H. R. 1813

To amend the Torture Victims Relief Act of 1998 to authorize appropriations

to provide assistance for domestic and foreign centers and programs

for the treatment of victims of torture, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 11, 2003

Mr. SMITH of New Jersey (for himself, Mr. LANTOS, Mr. PITTS, Mr. MCGOVERN, Ms. MCCOLLUM, and Mr. SABO) introduced the following bill; which

was referred to the Committee on International Relations, and in addition

to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Torture Victims Relief Act of 1998 to authorize appropriations to provide assistance for domestic and

foreign centers and programs for the treatment of victims of torture, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Torture Victims Relief

5 Reauthorization Act of 2003’’.


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2

•HR 1813 IH

1 SEC. 2. AUTHORIZATION OF APPROPRIATIONS FOR DOMES2 TIC TREATMENT CENTERS FOR VICTIMS OF

3 TORTURE.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 5(b)(1) of the Torture Victims Relief Act of 1998 (22

6 U.S.C. 2152 note) is amended to read as follows:

7 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—Of

8 the amounts authorized to be appropriated for the

9 Department of Health and Human Services for fis10 cal years 2004, 2005, and 2006, there are author11 ized to be appropriated to carry out subsection (a)

12 (relating to assistance for domestic centers and pro13 grams for the treatment of victims of torture)

14 $20,000,000 for fiscal year 2004, $25,000,000 for

15 fiscal year 2005, and $30,000,000 for fiscal year

16 2006.’’.

17 (b) EFFECTIVE DATE.—The amendment made by

18 subsection (a) shall take effect October 1, 2003.

19 SEC. 3. AUTHORIZATION OF APPROPRIATIONS FOR FOR20 EIGN TREATMENT CENTERS FOR VICTIMS OF

21 TORTURE.

22 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

23 4(b)(1) of the Torture Victims Relief Act of 1998 (22

24 U.S.C. 2152 note) is amended to read as follows:

25 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—Of

26 the amounts authorized to be appropriated for fiscal


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3

•HR 1813 IH

1 years 2004, 2005, and 2006 pursuant to chapter 1

2 of part I of the Foreign Assistance Act of 1961,

3 there are authorized to be appropriated to the Presi4 dent to carry out section 130 of such Act (relating

5 to assistance for centers in foreign countries and

6 programs for the treatment of victims of torture)

7 $11,000,000 for fiscal year 2004, $12,000,000 for

8 fiscal year 2005, and $13,000,000 for fiscal year

9 2006.’’.

10 (b) EFFECTIVE DATE.—The amendment made by

11 subsection (a) shall take effect October 1, 2003.

12 SEC. 4. AUTHORIZATION OF APPROPRIATIONS FOR THE

13 UNITED STATES CONTRIBUTION TO THE

14 UNITED NATIONS VOLUNTARY FUND FOR

15 VICTIMS OF TORTURE.

16 Of the amounts authorized to be appropriated for fis17 cal years 2004, 2005, and 2006 pursuant to chapter 3

18 of part I of the Foreign Assistance Act of 1961, there

19 are authorized to be appropriated to the President for a

20 voluntary contribution to the United Nations Voluntary

21 Fund for Victims of Torture $6,000,000 for fiscal year

22 2004, $7,000,000 for fiscal year 2005, and $8,000,000

23 for fiscal year 2006.

Æ


88500b.AAD
335

Mr. SMITH OF NEW JERSEY. I recognize myself for my opening 

statement. And let me just make a couple of very brief opening 

points. This legislation builds on two previous Torture Victims Relief Acts which have been signed into law. It is a necessary reauthorization because the authorizations are running out. 

It increases the amount of money, modestly, for the foreign programs, as Mr. Lantos, who is the prime cosponsor of this and I 

have worked on this very, very diligently. As a result of torture by 

despotic countries all over the world we have a world filled with 

walking wounded, and that’s no less of a case here in the United 

States. The estimates are that upwards of 500,000 people in America have been the victims of torture, and there are torture victims 

relief centers throughout this country, about 23, 24 strong that are 

funded by the United States Government. We reauthorized it in 

this bill, although Energy and Commerce has jurisdiction over that 

part and will take that up shortly. But the purpose is to try to help 

those people who are suffering the nightmare of torture and to give 

them help. 

The most common problem is post-traumatic stress disorder, and 

we have found that with the right regimen—and we have had at 

this witness table frequently, witnesses who have gone through 

this horror, and they have spoken in superlatives about what happens when they are given the opportunity and the right psychiatric 

and medical regimen to come to a healing. 

That’s what this legislation is all about. And again, like I said, 

it just modestly increases the amount of money under our jurisdiction to $11 million for 2004, $12 million for 2005 and $13 million 

for 2006, a very modest increase from the current $10 million. And 

again this money is well spent. 

I have visited myself these centers abroad, most recently in Romania. And when you talk to the clientele, the people who suffered 

under Nicolae Ceaucescu and were in his prison camps and suffered the cruel lash of the Securitate, they are on the road to recovery and to healing as a direct result of this legislation. So I would 

hope my colleagues could support it. 

And I would like to yield to Mr. Lantos, the principal cosponsor 

and a very strong supporter of this entire effort. 

Mr. LANTOS. Thank you, Mr. Chairman. I ask unanimous consent 

that my written statement be introduced in the record. 

Mr. SMITH OF NEW JERSEY. Without objection, sir. 

Mr. LANTOS. I want to pay tribute to you for your strong leadership on this most important issue for many years. And I want to 

pay tribute to a lady who is not here, a Danish physician, my very 

dear friend, Doctor Inga Genefke, who 29 years ago began this 

international movement of assisting victims of torture in Copenhagen, Denmark and has continued with her husband, also a physician, without any interruption for 3 decades now. She is really 

the founding mother of a movement globally to assist victims of torture, and I want to be certain that the record reflects our admiration and support for her work, and I yield back the balance of my 

time. 

[The prepared statement of Mr. Lantos follows:]

336

PREPARED STATEMENT OF THE HONORABLE TOM LANTOS, A REPRESENTATIVE IN

CONGRESS FROM THE STATE OF CALIFORNIA

H.R. 1813

Mr. Chairman, I strongly support this legislation, and urge my colleagues to do 

so as well. 

The Torture Victims Relief Reauthorization Act of 2003 is a testament to the outstanding national and international efforts our nation is undertaking to combat the 

most despicable of all human rights violations, the increased use of torture around 

the world. 

As the main Democratic sponsor of this measure, I would like to commend the 

gentleman from New Jersey, Mr. Smith, for his longstanding leadership on this 

issue, and congratulate him for all of his work to support heroic endeavors around 

the world to treat the victims of torture. 

Mr. Chairman, governments worldwide constantly fail to defend the basic human 

rights of their citizens, including the obligation to refrain from torture. Although 

exact figures are difficult to discern, Amnesty International estimates that 117 

countries worldwide still practice torture. Pakistan, Guatemala, Zimbabwe, and 

China consistently rank high on this list of governments who employ torture as a 

means of controlling their citizens. 

The ramifications of torture practices are beyond the realm of our comprehension. 

Torture leaves no victim unscarred; it shapes the remainder of their lives. Torture 

survivors need psychological and physical therapy to cope with the post-traumatic 

stress that afflicts them daily. Recovering from torture is a long-term process; it can 

take years before torture survivors can once again feel emotionally stable and comfortable in society. 

Mr. Chairman, it sometimes just takes one person to stand strong against the 

darkness of human rights violations. The torture victims treatment center community is fortunate enough to have such a person in my good friend, Dr. Inge Genefke. 

Dr. Genefke started her work for torture victims as co-founder of the Danish Medical Group of Amnesty International in 1974. Dr. Genefke, a medical doctor, observed that during the treatment of torture victims, the physical wounds of those 

lucky enough to survive the torture ordeal heal with time, but the trauma of her 

clients remain much longer. For decades, Dr. Genefke has promoted a multi-disciplinary treatment approach, integrating physical and psychological care, and has been 

an international leader on this critically-important subject. 

An estimated 500,000 foreign torture survivors reside in the United States and 

as many as 100 million exist worldwide. More than 250 treatment centers operate 

internationally with the sole purpose of providing crucial services to torture survivors. In the U.S., the Center for Victims of Torture in Minnesota was the first of 

its kind in the United States and the third torture victim’s center in the world. 

Those centers are among those funded through the Torture Victims Relief Act, 

and their work is the only hope for people who have been tortured. 

Mr. Chairman, I urge my colleagues to strongly support this bill, and I again 

thank you for marking it up today.

Mr. SMITH OF NEW JERSEY. I thank my good friend for his comments and for his very strong support. Are there any other Members who would like to be heard on this legislation. Are there any 

amendments to it? If not—Mrs. Napolitano, please. 

Mrs. NAPOLITANO. Mr. Chair, thank you. I’d like unanimous consent to introduce my remarks into the record. And I fully support 

the thrust of this legislation and commend you for looking at what 

can eventually be the assistance to bring people together, make 

them whole and working members of our society, which we sometimes neglect to do. And so I thank you all for your part in this 

and yield back the balance of my time. 

Mr. SMITH OF NEW JERSEY. Without objection, your statement 

and that of any other Member who would like to be heard on this 

will be made part of the record, and those who went to lunch because they thought this might have been put off until later on 

today. 

337

As you know, the time of this markup was changed a couple of 

times. We will be meeting later on today, and I would hope that 

Members could make that so we could get the requisite quorum to 

report these bills out. 

Without objection, the previous question is ordered and further 

proceedings are postponed. And, as I said, the Committee will 

stand in recess. 

We will reconvene in H–139 to vote on final passage on these 

three bills. We will alert Members as soon as possible about that. 

It will obviously be contingent on the Floor schedule. I want to 

thank Members for being here and again, I want to thank Mr. Lantos for his support. 

[Whereupon, at 12:15 p.m, the Committee recessed, to reconvene 

in Room H–139 at 4:35 p.m., the same day.] 

Mr. SMITH OF NEW JERSEY. [Presiding.] The Chair notes the 

presence of a reporting quorum. And the question occurs on the 

motion to report the following bills favorably to the House, as 

amended, upon which the previous question was ordered: H.J. Res. 

63, to approve the Compact of Free Association; H.R. 1813, the Torture Victims Relief Reauthorization Act of 2003; and H.R. 2620, 

Trafficking Victims Protection Reauthorization Act of 2003. 

All those in favor, signify by saying aye. 

Opposed, no. 

The ayes have it and the motion is agreed to. And I thank you 

all. 

Without objection, the Chairman is authorized to move to go to 

conference pursuant to House rule 22. 

Without objection, the staff is directed to make technical and 

conforming changes. Thank you. 

[Whereupon, at 4:36 p.m., the Committee was adjourned.] 

(339)

A P P E N D I X 

MATERIAL SUBMITTED FOR THE HEARING RECORD

PREPARED STATEMENT OF THE HONORABLE DIANE E. WATSON, A REPRESENTATIVE IN

CONGRESS FROM THE STATE OF CALIFORNIA

H.J. RES. 63

Mr. Chairman, 

I join my colleague Rep. Faleomavaega on the issue of Education. I am deeply concerned by a message sent by this Congress to the Freely Associated States. Although the issues were considered in another committee, the recent elimination of 

IDEA and Head Start assistance shocks me. This action coupled with threatened 

Pell Grant eligibility next year, could cripple the ability of the FAS to cultivate education. The RMI and FSM children have only just begun to benefit from the establishment of an integrated education system. 

Head Start is the cornerstone of education in the islands. In my years teaching, 

I have witnessed the impact of early structured education. Young students are much 

better equipped to enter the educational system, and they are exposed to the importance of their education at an early age. 

Changing focus to the older students, the elimination of Pell Grant assistance 

would decimate the college system in the FAS altogether. A large portion of the 

funds to run the College of Micronesia are obtained through Pell Grants. Not only 

would the college collapse, but many officials feel that island suicide is directly connected with educational opportunities. The College of Micronesia is the only higher 

education facility in the FSM. 

In conclusion, I am pleased with the overall progress of the new Compact of Free 

Association. With a few minor adjustments, such as the reinstatement of FEMA assistance, this Congress can produce a Compact to be proud of. I urge my colleagues 

to understand the importance of the FAS. This unique relationship is entrusted to 

the International Relations Committee. Please give proper consideration to a significant Foreign Policy decision that will affect the US–FAS relations for years to come.

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