II 

Calendar No. 489 

110TH CONGRESS 

1ST SESSION H. R. 2705 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 14, 2007 

Received; read twice and placed on the calendar 

AN ACT 

To amend the Compact of Free Association Amendments 

Act of 2003, 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 ‘‘Compacts of Free As5 sociation Amendments Act of 2007’’. 

6 SEC. 2. APPROVAL OF AGREEMENTS. 

7 (a) IN GENERAL.—Section 101 of the Compact of 

8 Free Association Amendments Act of 2003 (48 U.S.C. 

9 1921) is amended— 

10 (1) in the first sentence of subsection (a), by in11 serting before the period at the end the following: ‘‘, 


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1 including Article X of the Federal Programs and 

2 Services Agreement Between the Government of the 

3 United States and the Government of the Federated 

4 States of Micronesia, as amended under the Agree5 ment to Amend Article X that was signed by those 

6 two Governments on June 30, 2004, which shall 

7 serve as the authority to implement the provisions 

8 thereof’’; and 

9 (2) in the first sentence of subsection (b), by in10 serting before the period at the end the following: ‘‘, 

11 including Article X of the Federal Programs and 

12 Services Agreement Between the Government of the 

13 United States and the Government of the Republic 

14 of the Marshall Islands, as amended under the 

15 Agreement to Amend Article X that was signed by 

16 those two Governments on June 18, 2004, which 

17 shall serve as the authority to implement the provi18 sions thereof’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 subsection (a) shall be effective as of April 30, 2008. 

21 SEC. 3. FUNDS TO FACILITATE FEDERAL ACTIVITIES. 

22 Unobligated amounts appropriated before the date of 

23 the enactment of this Act pursuant to section 

24 105(f)(1)(A)(ii) of the Compact of Free Association 

25 Amendments Act of 2003 shall be available to both the 


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1 United States Agency for International Development and 

2 the Federal Emergency Management Agency to facilitate 

3 each agency’s activities under the Federal Programs and 

4 Services Agreements. 

5 SEC. 4. CONFORMING AMENDMENT. 

6 (a) IN GENERAL.—Section 105(f)(1)(A) of the Com7 pact of Free Association Amendments Act of 2003 (48 

8 U.S.C. 1921d(f)(1)(A)) is amended to read as follows: 

9 ‘‘(A) EMERGENCY AND DISASTER ASSIST10 ANCE.— 

11 ‘‘(i) IN GENERAL.—Subject to clause 

12 (ii), section 221(a)(6) of the U.S.–FSM 

13 Compact and section 221(a)(5) of the 

14 U.S.–RMI Compact shall each be con15 strued and applied in accordance with the 

16 two Agreements to Amend Article X of the 

17 Federal Programs and Service Agreements 

18 signed on June 30, 2004, and on June 18, 

19 2004, respectively, provided that all activi20 ties carried out by the United States Agen21 cy for International Development and the 

22 Federal Emergency Management Agency 

23 under Article X of the Federal Programs 

24 and Services Agreements may be carried 

25 out notwithstanding any other provision of 


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1 law. In the sections referred to in this 

2 clause, the term ‘United States Agency for 

3 International Development, Office of For4 eign Disaster Assistance’ shall be con5 strued to mean ‘the United States Agency 

6 for International Development’. 

7 ‘‘(ii) DEFINITION OF WILL PROVIDE

8 FUNDING.—In the second sentence of 

9 paragraph 12 of each of the Agreements 

10 described in clause (i), the term ‘will pro11 vide funding’ means will provide funding 

12 through a transfer of funds using Stand13 ard Form 1151 or a similar document or 

14 through an interagency, reimbursable 

15 agreement.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 subsection (a) shall be effective as of April 30, 2008. 

18 SEC. 5. CLARIFICATIONS REGARDING PALAU. 

19 Section 105(f)(1)(B) of the Compact of Free Associa20 tion Amendments Act of 2003 (48 U.S.C. 1921d(f)(1)(B)) 

21 is amended— 

22 (1) in clause (ii)(II), by striking ‘‘and its terri23 tories’’ and inserting ‘‘, its territories, and the Re24 public of Palau’’; 


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1 (2) in clause (iii)(II), by striking ‘‘, or the Re2 public of the Marshall Islands’’ and inserting ‘‘, the 

3 Republic of the Marshall Islands, or the Republic of 

4 Palau’’; and 

5 (3) in clause (ix)— 

6 (A) by striking ‘‘Republic’’ both places it 

7 appears and inserting ‘‘government, institu8 tions, and people’’; 

9 (B) by striking ‘‘2007’’ and inserting 

10 ‘‘2009’’; and 

11 (C) by striking ‘‘was’’ and inserting 

12 ‘‘were’’. 

13 SEC. 6. AVAILABILITY OF LEGAL SERVICES. 

14 Section 105(f)(1)(C) of the Compact of Free Associa15 tion Amendments Act of 2003 (48 U.S.C. 1921d(f)(1)(C)) 

16 is amended by inserting before the period at the end the 

17 following: ‘‘, which shall also continue to be available to 

18 the citizens of the Federated States of Micronesia, the Re19 public of Palau, and the Republic of the Marshall Islands 

20 who legally reside in the United States (including terri21 tories and possessions)’’. 

22 SEC. 7. TECHNICAL AMENDMENTS. 

23 (a) TITLE I.— 

24 (1) SECTION 177 AGREEMENT.—Section 

25 103(c)(1) of the Compact of Free Association 


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1 Amendments Act of 2003 (48 U.S.C. 1921b(c)(1)) is 

2 amended by striking ‘‘section 177’’ and inserting 

3 ‘‘Section 177’’. 

4 (2) INTERPRETATION AND UNITED STATES

5 POLICY.—Section 104 of the Compact of Free Asso6 ciation Amendments Act of 2003 (48 U.S.C. 1921c) 

7 is amended— 

8 (A) in subsection (b)(1), by inserting ‘‘the’’ 

9 before ‘‘U.S.–RMI Compact,’’; 

10 (B) in subsection (e)— 

11 (i) in the matter preceding subpara12 graph (A) of paragraph (8), by striking 

13 ‘‘to include’’ and inserting ‘‘and include’’; 

14 (ii) in paragraph (9)(A), by inserting 

15 a comma after ‘‘may’’; and 

16 (iii) in paragraph (10), by striking 

17 ‘‘related to service’’ and inserting ‘‘related 

18 to such services’’; and 

19 (C) in the first sentence of subsection (j), 

20 by inserting ‘‘the’’ before ‘‘Interior’’. 

21 (3) SUPPLEMENTAL PROVISIONS.—Section 

22 105(b)(1) of the Compact of Free Association 

23 Amendments Act of 2003 (48 U.S.C. 1921d(b)(1)) 

24 is amended by striking ‘‘Trust Fund’’ and inserting 

25 ‘‘Trust Funds’’. 


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1 (b) TITLE II.— 

2 (1) U.S.–FSM COMPACT.—The Compact of 

3 Free Association, as amended, between the Govern4 ment of the United States of America and the Gov5 ernment of the Federated States of Micronesia (as 

6 provided in section 201(a) of the Compact of Free 

7 Association Amendments Act of 2003 (117 Stat. 

8 2757)) is amended— 

9 (A) in section 174— 

10 (i) in subsection (a), by striking 

11 ‘‘courts’’ and inserting ‘‘court’’; and 

12 (ii) in subsection (b)(2), by striking 

13 ‘‘the’’ before ‘‘November’’; 

14 (B) in section 177(a), by striking ‘‘, or 

15 Palau’’ and inserting ‘‘(or Palau)’’; 

16 (C) in section 179(b), by striking ‘‘amend17 ed Compact’’ and inserting ‘‘Compact, as 

18 amended,’’; 

19 (D) in section 211— 

20 (i) in the fourth sentence of sub21 section (a), by striking ‘‘Compact, as 

22 Amended, of Free Association’’ and insert23 ing ‘‘Compact of Free Association, as 

24 amended’’; 


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1 (ii) in the fifth sentence of subsection 

2 (a), by striking ‘‘Trust Fund Agreement,’’ 

3 and inserting ‘‘Agreement Between the 

4 Government of the United States of Amer5 ica and the Government of the Federated 

6 States of Micronesia Implementing Section 

7 215 and Section 216 of the Compact, as 

8 Amended, Regarding a Trust Fund (Trust 

9 Fund Agreement),’’; 

10 (iii) in subsection (b)— 

11 (I) in the first sentence, by strik12 ing ‘‘Government of the’’ before ‘‘Fed13 erated’’; and 

14 (II) in the second sentence, by 

15 striking ‘‘Sections 321 and 323 of the 

16 Compact of Free Association, as 

17 Amended’’ and inserting ‘‘Sections 

18 211(b), 321, and 323 of the Compact 

19 of Free Association, as amended,’’; 

20 and 

21 (iv) in the last sentence of subsection 

22 (d), by inserting before the period at the 

23 end the following: ‘‘and the Federal Pro24 grams and Services Agreement referred to 

25 in section 231’’; 


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1 (E) in the first sentence of section 215(b), 

2 by striking ‘‘subsection(a)’’ and inserting ‘‘sub3 section (a)’’; 

4 (F) in section 221— 

5 (i) in subsection (a)(6), by inserting 

6 ‘‘(Federal Emergency Management Agen7 cy)’’ after ‘‘Homeland Security’’; and 

8 (ii) in the first sentence of subsection 

9 (c), by striking ‘‘agreements’’ and inserting 

10 ‘‘agreement’’; 

11 (G) in the second sentence of section 222, 

12 by inserting ‘‘in’’ after ‘‘referred to’’; 

13 (H) in the second sentence of section 232, 

14 by striking ‘‘sections 102 (c)’’ and all that fol15 lows through ‘‘January 14, 1986)’’ and insert16 ing ‘‘section 102(b) of Public Law 108–188, 

17 117 Stat. 2726, December 17, 2003’’; 

18 (I) in the second sentence of section 252, 

19 by inserting ‘‘, as amended,’’ after ‘‘Compact’’; 

20 (J) in the first sentence of the first undes21 ignated paragraph of section 341, by striking 

22 ‘‘Section 141’’ and inserting ‘‘section 141’’; 

23 (K) in section 342— 


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1 (i) in subsection (a), by striking ‘‘14 

2 U.S.C. 195’’ and inserting ‘‘section 195 of 

3 title 14, United States Code’’; and 

4 (ii) in subsection (b)— 

5 (I) by striking ‘‘46 U.S.C. 

6 1295(b)(6)’’ and inserting ‘‘section 

7 1303(b)(6) of the Merchant Marine 

8 Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 

9 and 

10 (II) by striking ‘‘46 U.S.C. 

11 1295b(b)(6)(C)’’ and inserting ‘‘sec12 tion 1303(b)(6)(C) of that Act’’; 

13 (L) in the third sentence of section 354(a), 

14 by striking ‘‘section 442 and 452’’ and insert15 ing ‘‘sections 442 and 452’’; 

16 (M) in section 461(h), by striking ‘‘Tele17 communications’’ and inserting ‘‘Telecommuni18 cation’’; 

19 (N) in section 462(b)(4), by striking ‘‘of 

20 Free Association’’ the second place it appears; 

21 and 

22 (O) in section 463(b), by striking ‘‘Articles 

23 IV’’ and inserting ‘‘Article IV’’. 

24 (2) U.S.–RMI COMPACT.—The Compact of 

25 Free Association, as amended, between the GovernVerDate Aug 31 2005 01:43 Nov 15, 2007 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2705.PCS H2705

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1 ment of the United States of America and the Gov2 ernment of the Republic of the Marshall Islands (as 

3 provided in section 201(b) of the Compact of Free 

4 Association Amendments Act of 2003 (117 Stat. 

5 2795)) is amended— 

6 (A) in section 174(a), by striking ‘‘court’’ 

7 and inserting ‘‘courts’’; 

8 (B) in section 177(a), by striking the 

9 comma before ‘‘(or Palau)’’; 

10 (C) in section 179(b), by striking ‘‘amend11 ed Compact,’’ and inserting ‘‘Compact, as 

12 amended,’’; 

13 (D) in section 211— 

14 (i) in the fourth sentence of sub15 section (a), by striking ‘‘Compact, as 

16 Amended, of Free Association’’ and insert17 ing ‘‘Compact of Free Association, as 

18 amended’’; 

19 (ii) in the first sentence of subsection 

20 (b), by striking ‘‘Agreement between the 

21 Government of the United States and the 

22 Government of the Republic of the Mar23 shall Islands Regarding Miliary Use and 

24 Operating Rights’’ and inserting ‘‘Agree25 ment Regarding the Military Use and OpVerDate Aug 31 2005 01:43 Nov 15, 2007 Jkt 069200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2705.PCS H2705

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1 erating Rights of the Government of the 

2 United States in the Republic of the Mar3 shall Islands concluded Pursuant to Sec4 tions 321 and 323 of the Compact of Free 

5 Association, as Amended (Agreement be6 tween the Government of the United 

7 States and the Government of the Republic 

8 of the Marshall Islands Regarding Military 

9 Use and Operating Rights)’’; and 

10 (iii) in the last sentence of subsection 

11 (e), by inserting before the period at the 

12 end the following: ‘‘and the Federal Pro13 grams and Services Agreement referred to 

14 in section 231’’; 

15 (E) in section 221(a)— 

16 (i) in the matter preceding paragraph 

17 (1), by striking ‘‘Section 231’’ and insert18 ing ‘‘section 231’’; and 

19 (ii) in paragraph (5), by inserting 

20 ‘‘(Federal Emergency Management Agen21 cy)’’ after ‘‘Homeland Security’’; 

22 (F) in the second sentence of section 232, 

23 by striking ‘‘sections 103(m)’’ and all that fol24 lows through ‘‘(January 14, 1986)’’ and insertVerDate Aug 31 2005 01:43 Nov 15, 2007 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2705.PCS H2705

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1 ing ‘‘section 103(k) of Public Law 108–188, 

2 117 Stat. 2734, December 17, 2003’’; 

3 (G) in the first sentence of section 341, by 

4 striking ‘‘Section 141’’ and inserting ‘‘section 

5 141’’; 

6 (H) in section 342— 

7 (i) in subsection (a), by striking ‘‘14 

8 U.S.C. 195’’ and inserting ‘‘section 195 of 

9 title 14, United States Code’’; and 

10 (ii) in subsection (b)— 

11 (I) by striking ‘‘46 U.S.C. 

12 1295(b)(6)’’ and inserting ‘‘section 

13 1303(b)(6) of the Merchant Marine 

14 Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 

15 and 

16 (II) by striking ‘‘46 U.S.C. 

17 1295b(b)(6)(C)’’ and inserting ‘‘sec18 tion 1303(b)(6)(C) of that Act’’; 

19 (I) in the third sentence of section 354(a), 

20 by striking ‘‘section 442 and 452’’ and insert21 ing ‘‘sections 442 and 452’’; 

22 (J) in the first sentence of section 443, by 

23 inserting ‘‘, as amended.’’ after ‘‘the Compact’’; 

24 (K) in the matter preceding paragraph (1) 

25 of section 461(h)— 


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1 (i) by striking ‘‘1978’’ and inserting 

2 ‘‘1998’’; and 

3 (ii) by striking ‘‘Telecommunications’’ 

4 and inserting ‘‘Telecommunication Union’’; 

5 and 

6 (L) in section 463(b), by striking ‘‘Article’’ 

7 and inserting ‘‘Articles’’. 

8 SEC. 8. TRANSMISSION OF VIDEOTAPE PROGRAMMING. 

9 Section 111(e)(2) of title 17, United States Code, is 

10 amended by striking ‘‘or the Trust Territory of the Pacific 

11 Islands’’ and inserting ‘‘the Federated States of Micro12 nesia, the Republic of Palau, or the Republic of the Mar13 shall Islands’’. 

14 SEC. 9. PALAU ROAD MAINTENANCE. 

15 The Government of the Republic of Palau may de16 posit the payment otherwise payable to the Government 

17 of the United States under section 111 of Public Law 

18 101–219 (48 U.S.C. 1960) into a trust fund if— 

19 (1) the earnings of the trust fund are expended 

20 solely for maintenance of the road system con21 structed pursuant to section 212 of the Compact of 

22 Free Association between the Government of the 

23 United States of America and the Government of 

24 Palau (48 U.S.C. 1931 note); and 


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1 (2) the trust fund is established and operated 

2 pursuant to an agreement entered into between the 

3 Government of the United States and the Govern4 ment of the Republic of Palau. 

5 SEC. 10. CLARIFICATION OF TAX-FREE STATUS OF TRUST 

6 FUNDS. 

7 In the U.S.–RMI Compact, the U.S.–FSM Compact, 

8 and their respective trust fund subsidiary agreements, for 

9 the purposes of taxation by the United States or its sub10 sidiary jurisdictions, the term ‘‘State’’ means ‘‘State, ter11 ritory, or the District of Columbia’’. 

12 SEC. 11. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR13 EIGN RECIPIENTS. 

14 (a) TRANSFERS BY GRANT.—The President is au15 thorized to transfer vessels to foreign countries on a grant 

16 basis under section 516 of the Foreign Assistance Act of 

17 1961 (22 U.S.C. 2321j), as follows: 

18 (1) TURKEY.—To the Government of Turkey— 

19 (A) the OLIVER HAZARD PERRY class 

20 guided missile frigates GEORGE PHILIP 

21 (FFG–12) and SIDES (FFG–14); and 

22 (B) the OSPREY class minehunter coastal 

23 ship BLACKHAWK (MHC–58). 

24 (2) LITHUANIA.—To the Government of Lith25 uania, the OSPREY class minehunter coastal ships 


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1 CORMORANT (MHC–57) and KINGFISHER 

2 (MHC–56). 

3 (b) TRANSFERS BY SALE.—The President is author4 ized to transfer vessels to foreign recipients on a sale basis 

5 under section 21 of the Arms Export Control Act (22 

6 U.S.C. 2761), as follows: 

7 (1) TAIWAN.—To the Taipei Economic and 

8 Cultural Representative Office in the United States 

9 (which is the Taiwan instrumentality designated 

10 pursuant to section 10(a) of the Taiwan Relations 

11 Act (22 U.S.C. 3309(a))), the OSPREY class 

12 minehunter coastal ships ORIOLE (MHC–55) and 

13 FALCON (MHC–59). 

14 (2) TURKEY.—To the Government of Turkey, 

15 the OSPREY class minehunter coastal ship 

16 SHRIKE (MHC–62). 

17 (c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF

18 TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 

19 of a vessel transferred to a recipient on a grant basis pur20 suant to authority provided by subsection (a) shall not be 

21 counted against the aggregate value of excess defense arti22 cles transferred in any fiscal year under section 516(g) 

23 of the Foreign Assistance Act of 1961. 


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1 (d) COSTS OF TRANSFERS.—Any expense incurred by 

2 the United States in connection with a transfer authorized 

3 by this section shall be charged to the recipient. 

4 (e) REPAIR AND REFURBISHMENT IN UNITED

5 STATES SHIPYARDS.—To the maximum extent prac6 ticable, the President shall require, as a condition of the 

7 transfer of a vessel under this section, that the recipient 

8 to which the vessel is transferred have such repair or re9 furbishment of the vessel as is needed before the vessel 

10 joins the naval forces of the recipient performed at a ship11 yard located in the United States, including a United 

12 States Navy shipyard. 

13 (f) EXPIRATION OF AUTHORITY.—The authority to 

14 transfer a vessel under this section shall expire at the end 

15 of the 2-year period beginning on the date of the enact16 ment of this Act. 

Passed the House of Representatives November 13, 

2007. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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Calendar No. 489 

110TH CONGRESS 

1ST SESSION H. R. 2705 

AN ACT 

To amend the Compact of Free Association 

Amendments Act of 2003, and for other purposes. 

NOVEMBER 14, 2007 

Received; read twice and placed on the calendar 


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