89–380

108TH CONGRESS REPT. 108–262 " HOUSE OF REPRESENTATIVES ! 1st Session Part 3

COMPACT OF FREE ASSOCIATION AMENDMENTS

ACT OF 2003

SEPTEMBER 15, 2003.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. SENSENBRENNER, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany H.J. Res. 63] 

[Including cost estimate of the Congressional Budget Office]

The Committee on the Judiciary, to whom was referred the joint 

resolution (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, having considered the 

same, report favorably thereon with an amendment and recommend that the joint resolution as amended do pass.

CONTENTS 

Page 

The Amendment ...................................................................................................... 2

Purpose and Summary ............................................................................................ 71

Background and Need for the Legislation ............................................................. 71

Hearings ................................................................................................................... 81

Committee Consideration ........................................................................................ 81

Vote of the Committee ............................................................................................. 81

Committee Oversight Findings ............................................................................... 81

New Budget Authority and Tax Expenditures ...................................................... 81

Congressional Budget Office Cost Estimate .......................................................... 81

Performance Goals and Objectives ......................................................................... 85

Constitutional Authority Statement ...................................................................... 85

Section-by-Section Analysis and Discussion .......................................................... 85

Changes in Existing Law Made by the Bill, as Reported ..................................... 92

2

Markup Transcript .................................................................................................. 93

THE AMENDMENT

The amendment is as follows: 

Strike all after the resolving clause and insert the following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

(a) SHORT TITLE.—This joint resolution, together with the Table of Contents in 

subsection (b) of this section, may be cited as the ‘‘Compact of Free Association 

Amendments Act of 2003’’. 

(b) TABLE OF CONTENTS.—The table of contents for this joint resolution is as follows:

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. 

(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. 

3

(a) Compact of Free Association as amended between the Government of the United States of 

America and the Government of the Federated States of Micronesia. 

Title One—Governmental Relations 

Article I—Self-Government. 

Article II—Foreign Affairs. 

Article III—Communications. 

Article IV—Immigration. 

Article V—Representation. 

Article VI—Environmental Protection. 

Article VII—General Legal Provisions. 

Title Two—Economic Relations

Article I—Grant Assistance. 

Article II—Services and Program Assistance. 

Article III—Administrative Provisions. 

Article IV—Trade. 

Article V—Finance and Taxation. 

Title Three—Security and Defense Relations 

Article I—Authority and Responsibility. 

Article II—Defense Facilities and Operating Rights. 

Article III—Defense Treaties and International Security Agreements. 

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

Article V—General Provisions. 

Title Four—General Provisions 

Article I—Approval and Effective Date. 

Article II—Conference and Dispute Resolution. 

Article III—Amendment. 

Article IV—Termination. Article V—Survivability. 

Article VI—Definition of Terms. 

Article VII—Concluding Provisions. 

(b) Compact of Free Association as amended between the Government of the United States of 

America and the Government of the Republic of the Marshall Islands. 

Title One—Governmental Relations 

Article I—Self-Government. 

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.

TITLE I—APPROVAL OF U.S.-FSM COMPACT 

AND U.S.-RMI COMPACT; INTERPRETATION 

OF, AND U.S. POLICIES REGARDING, U.S.-FSM 

COMPACT AND U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS 

SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSOCIATION AND THE U.S.-RMI COMPACT OF FREE ASSOCIATION; REFERENCES TO SUBSIDIARY AGREEMENTS OR SEPARATE AGREEMENTS. 

(a) FEDERATED STATES OF MICRONESIA.—The Compact of Free Association, as 

amended with respect to the Federated States of Micronesia and signed by the 

4

United States and the Government of the Federated States of Micronesia and set 

forth in Title II (section 201(a)) of this joint resolution, is hereby approved, and Congress hereby consents to the subsidiary agreements and amended subsidiary agreements listed in section 462 of the U.S.-FSM Compact. Subject to the provisions of 

this joint resolution, the President is authorized to agree, in accordance with section 

411 of the U.S.-FSM Compact, to an effective date for and thereafter to implement 

such U.S.-FSM Compact. 

(b) REPUBLIC OF THE MARSHALL ISLANDS.—The Compact of Free Association, as 

amended with respect to the Republic of the Marshall Islands and signed by the 

United States and the Government of the Republic of the Marshall Islands and set 

forth in Title II (section 201(b)) of this joint resolution, is hereby approved, and Congress hereby consents to the subsidiary agreements and amended subsidiary agreements listed in section 462 of the U.S.-RMI Compact. Subject to the provisions of 

this joint resolution, the President is authorized to agree, in accordance with section 

411 of the U.S.-RMI Compact, to an effective date for and thereafter to implement 

such U.S.-RMI Compact. 

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

COMPACT; REFERENCES TO SUBSIDIARY AGREEMENTS OR SEPARATE AGREEMENTS.— (1) Any reference in this joint resolution (except references in Title II) to ‘‘the 

Compact’’ shall be treated as a reference to the Compact of Free Association set 

forth in title II of Public Law 99–239, January 14, 1986, 99 Stat. 1770. Any reference in this joint resolution to the ‘‘U.S.-FSM Compact’’ shall be treated as 

a reference to the Compact of Free Association, as amended between the Government of the United States of America and the Government of the Federated 

States of Micronesia and set forth in Title II (section 201(a)) of this joint resolution. Any reference in this joint resolution to the ‘‘U.S.-RMI Compact’’ shall be 

treated as a reference to the Compact of Free Association, as amended between 

the Government of the United States of America and the Government of the Republic of the Marshall Islands and set forth in Title II (section 201(b)) of this 

joint resolution. 

(2) Any reference to the term ‘‘subsidiary agreements’’ or ‘‘separate agreements’’ in this joint resolution shall be treated as a reference to agreements listed in section 462 of the U.S.-FSM Compact and the U.S.-RMI Compact, and any 

other agreements that the United States may from time to time enter into with 

either the government of the Federated States of Micronesia or the government 

of the Republic of the Marshall Islands, or with both such governments in accordance with the provisions of the U.S.-FSM Compact and the U.S.-RMI Compact. 

(d) AMENDMENT, CHANGE, OR TERMINATION IN THE U.S.-FSM COMPACT AND U.S.-

RMI COMPACT AND CERTAIN AGREEMENTS.—

(1) Any amendment, change, or termination by mutual agreement or by unilateral action of the Government of the United States of all or any part of the 

U.S.-FSM Compact or U.S.-RMI Compact shall not enter into force until after 

Congress has incorporated it in an Act of Congress. 

(2) The provisions of paragraph (1) shall apply—

(A) to all actions of the Government of the United States under the U.S.-

FSM Compact or U.S.-RMI Compact including, but not limited to, actions 

taken pursuant to sections 431, 441, or 442; 

(B) to any amendment, change, or termination in the Agreement Between 

the Government of the United States and the Government of the Federated 

States of Micronesia Regarding Friendship, Cooperation and Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free 

Association referred to in section 462(a)(2) of the U.S.-FSM Compact and 

the Agreement Between the Government of the United States and the Government of the Marshall Islands Regarding Mutual Security Concluded 

Pursuant to Sections 321 and 323 of the Compact of Free Association referred to in section 462(a)(5) of the U.S.-RMI Compact; 

(C) to any amendment, change, or termination of the agreements concluded pursuant to Compact section 177, and section 215(a) of the U.S.-

FSM Compact and section 216(a) of the U.S.-RMI Compact, the terms of 

which are incorporated by reference into the U.S.-FSM Compact and the 

U.S.-RMI Compact; and 

(D) to the following subsidiary agreements, or portions thereof: Articles 

III, IV and X of the agreement referred to in section 462(b)(6) of the U.S.-

RMI Compact: 

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

of the U.S.-FSM Compact. 

(ii) Articles VI, XV, and XVII of the agreement referred to in section 

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

5

(e) SUBSIDIARY AGREEMENTS DEEMED BILATERAL.—For purposes of implementation of the U.S.-FSM Compact and the U.S.-RMI Compact and this joint resolution, 

the Agreement Concluded Pursuant to Section 234 of the Compact of Free Association and referred to in section 462(a)(1) of the U.S.-FSM Compact and section 

462(a)(4) of the U.S.-RMI Compact shall be deemed to be a bilateral agreement between the United States and each other party to such subsidiary agreement. The 

consent or concurrence of any other party shall not be required for the effectiveness 

of any actions taken by the United States in conjunction with either the Federated 

States of Micronesia or the Republic of the Marshall Islands which are intended to 

affect the implementation, modification, suspension, or termination of such subsidiary agreement (or any provision thereof) as regards the mutual responsibilities 

of the United States and the party in conjunction with whom the actions are taken. 

(f) ENTRY INTO FORCE OF FUTURE AMENDMENTS TO SUBSIDIARY AGREEMENTS.—

No agreement between the United States and the government of either the Federated States of Micronesia or the Republic of the Marshall Islands which would 

amend, change, or terminate any subsidiary agreement or portion thereof, other 

than those set forth is subsection (d) of this section shall enter into force until after 

the President has transmitted such agreement to the President of the Senate and 

the Speaker of the House of Representatives together with an explanation of the 

agreement and the reasons therefor. In the case of the agreement referred to in section 462(b)(3) of the U.S.-FSM Compact and the U.S.-RMI Compact, such transmittal shall include a specific statement by the Secretary of Labor as to the necessity of such amendment, change, or termination, and the impact thereof. 

SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MICRONESIA. 

(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to sections 222 and 224 of the 

U.S.-FSM Compact, the United States shall provide non-reimbursable technical and 

training assistance as appropriate, including training and equipment for postal inspection of illicit drugs and other contraband, to enable the Government of the Federated States of Micronesia to develop and adequately enforce laws of the Federated 

States of Micronesia and to cooperate with the United States in the enforcement of 

criminal laws of the United States. Funds appropriated pursuant to section 105(j) 

of this title may be used to reimburse State or local agencies providing such assistance. 

(b) AGREEMENT ON AUDITS.—The Comptroller General (and his duly authorized 

representatives) shall have the authorities necessary to carry out his responsibilities 

under section 232 of the U.S.-FSM Compact and the agreement referred to in section 462(b)(4) of the U.S.-FSM Compact, including the following authorities: 

(1) GENERAL AUTHORITY OF THE COMPTROLLER GENERAL TO AUDIT.—

(A) The Comptroller General of the United States (and his duly authorized representatives) shall have the authority to audit—

(i) all grants, program assistance, and other assistance provided to 

the Government of the Federated States of Micronesia under Articles 

I and II of Title Two of the U.S.-FSM Compact; and 

(ii) any other assistance provided by the Government of the United 

States to the Government of the Federated States of Micronesia. 

Such authority shall include authority for the Comptroller General to conduct or cause to be conducted any of the audits provided for in section 232 

of the U.S.-FSM Compact. The authority provided in this paragraph shall 

continue for at least three years after the last such grant has been made 

or assistance has been provided. 

(B) The Comptroller General (and his duly authorized representatives) 

shall also have authority to review any audit conducted by or on behalf of 

the Government of the United States. In this connection, the Comptroller 

General shall have access to such personnel and to such records, documents, working papers, automated data and files, and other information 

relevant to such review. 

(2) COMPTROLLER GENERAL ACCESS TO RECORDS.—

(A) In carrying out paragraph (1), the Comptroller General (and his duly 

authorized representatives) shall have such access to the personnel and 

(without cost) to records, documents, working papers, automated data and 

files, and other information relevant to such audits. The Comptroller General may duplicate any such records, documents, working papers, automated data and files, or other information relevant to such audits. 

(B) Such records, documents, working papers, automated data and files, 

and other information regarding each such grant or other assistance shall 

be maintained for at least three years after the date such grant or assistance was provided and in a manner that permits such grants, assistance, 

6

and payments to be accounted for distinct from any other funds of the Government of the Federated States of Micronesia. 

(3) STATUS OF COMPTROLLER GENERAL REPRESENTATIVES.—The Comptroller 

General and his duly authorized representatives shall be immune from civil and 

criminal process relating to words spoken or written and all acts performed by 

them in their official capacity and falling within their functions, except insofar 

as such immunity may be expressly waived by the Government of the United 

States. The Comptroller General and his duly authorized representatives shall 

not be liable to arrest or detention pending trial, except in the case of a grave 

crime and pursuant to a decision by a competent judicial authority, and such 

persons shall enjoy immunity from seizure of personal property, immigration restrictions, and laws relating to alien registration, fingerprinting, and the registration of foreign agents. Such persons shall enjoy the same taxation exemptions as are set forth in Article 34 of the Vienna Convention on Diplomatic Relations. The privileges, exemptions and immunities accorded under this paragraph are not for the personal benefit of the individuals concerned but are to 

safeguard the independent exercise of their official functions. Without prejudice 

to those privileges, exemptions and immunities, it is the duty of all such persons to respect the laws and regulations of the Government of the Federated 

States of Micronesia. 

(4) AUDITS DEFINED.—As used in this subsection, the term ‘‘audits’’ includes 

financial, program, and management audits, including determining—

(A) whether the Government of the Federated States of Micronesia has 

met the requirements set forth in the U.S.-FSM Compact, or any related 

agreement entered into under the U.S.-FSM Compact, regarding the purposes for which such grants and other assistance are to be used; and 

(B) the propriety of the financial transactions of the Government of the 

Federated States of Micronesia pursuant to such grants or assistance. 

(5) COOPERATION BY FEDERATED STATES OF MICRONESIA.—The Government of 

the Federated States of Micronesia will cooperate fully with the Comptroller 

General of the United States in the conduct of such audits as the Comptroller 

General determines necessary to enable the Comptroller General to fully discharge his responsibilities under this joint resolution. 

SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RELATED TO THE REPUBLIC OF THE 

MARSHALL ISLANDS. 

(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to sections 222 and 224 of the 

U.S.-RMI Compact, the United States shall provide non-reimbursable technical and 

training assistance as appropriate, including training and equipment for postal inspection of illicit drugs and other contraband, to enable the Government of the Marshall Islands to develop and adequately enforce laws of the Marshall Islands and 

to cooperate with the United States in the enforcement of criminal laws of the 

United States. Funds appropriated pursuant to section 105(j) of this title may be 

used to reimburse State or local agencies providing such assistance. 

(b) EJIT.—

(1) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that the President of the United States shall negotiate with the Government of the Marshall Islands an agreement whereby, without prejudice as 

to any claims which have been or may be asserted by any party as to rightful 

title and ownership of any lands on Ejit, the Government of the Marshall Islands shall assure that lands on Ejit used as of January 1, 1985, by the people 

of Bikini, will continue to be available without charge for their use, until such 

time as Bikini is restored and inhabitable and the continued use of Ejit is no 

longer necessary, unless a Marshall Islands court of competent jurisdiction finally determines that there are legal impediments to continued use of Ejit by 

the people of Bikini. 

(2) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that if the impediments described in paragraph (1) do arise, the 

United States will cooperate with the Government of the Marshall Islands in 

assisting any person adversely affected by such judicial determination to remain 

on Ejit, or in locating suitable and acceptable alternative lands for such person’s 

use. 

(3) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that paragraph (1) shall not be applied in a manner which would prevent the Government of the Marshall Islands from acting in accordance with 

its constitutional processes to resolve title and ownership claims with respect 

to such lands or from taking substitute or additional measures to meet the 

needs of the people of Bikini with their democratically expressed consent and 

approval. 

7

(4) The United States and the Republic of the Marshall Islands entered into 

an agreement in furtherance of paragraphs (1) through (3) of this subsection on 

July 21, 1986. Nothing in this subsection creates any rights or obligations beyond those provided for in the original enacted version of Public Law 99–239. 

(c) SECTION 177 AGREEMENT.—

(1) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that in furtherance of the purposes of Article I of the Subsidiary 

Agreement for Implementation of Section 177 of the Compact, the payment of 

the amount specified therein shall be made by the United States under Article 

I of the Agreement between the Government of the United States and the Government of the Marshall Islands for the Implementation of section 177 of the 

Compact (hereafter in this subsection referred to as the ‘‘Section 177 Agreement’’) only after the Government of the Marshall Islands has notified the 

President of the United States as to which investment management firm has 

been selected by such Government to act as Fund Manager under Article I of 

the Section 177 Agreement. 

(2) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that in the event that the President determines that an investment 

management firm selected by the Government of the Marshall Islands does not 

meet the requirements specified in Article I of the Section 177 Agreement, the 

United States shall invoke the conference and dispute resolution procedures of 

Article II of Title Four of the Compact. Pending the resolution of such a dispute 

and until a qualified Fund Manager has been designated, the Government of 

the Marshall Islands shall place the funds paid by the United States pursuant 

to Article I of the Section 177 Agreement into an interest-bearing escrow account. Upon designation of a qualified Fund Manager, all funds in the escrow 

account shall be transferred to the control of such Fund Manager for management pursuant to the Section 177 Agreement. 

(3) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that if the Government of the Marshall Islands determines that some 

other investment firm should act as Fund Manager in place of the firm first (or 

subsequently) selected by such Government, the Government of the Marshall Islands shall so notify the President of the United States, identifying the firm selected by such Government to become Fund Manager, and the President shall 

proceed to evaluate the qualifications of such identified firm. 

(4) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that at the end of 15 years after the effective date of the Compact, the 

firm then acting as Fund Manager shall transfer to the Government of the Marshall Islands, or to such account as such Government shall so notify the Fund 

Manager, all remaining funds and assets being managed by the Fund Manager 

under the Section 177 Agreement. 

(5) The United States made the payment called for under paragraph (1) of 

this subsection in November 1986. Nothing in this subsection creates any rights 

or obligations beyond those provided for in the original enacted version of Public 

Law 99–239. 

(d) NUCLEAR TEST EFFECTS.—In the joint resolution of January 14, 1986 (Public 

Law 99–239) Congress provided that in approving the Compact, the Congress understands and intends that the peoples of Bikini, Enewetak, Rongelap, and Utrik, who 

were affected by the United States nuclear weapons testing program in the Marshall Islands, will receive the amounts of $75,000,000 (Bikini); $48,750,000 

(Enewetak); $37,500,000 (Rongelap); and $22,500,000 (Utrik), respectively, which 

amounts shall be paid out of proceeds from the fund established under Article I, section 1 of the subsidiary agreement for the implementation of section 177 of the Compact. The amounts specified in this subsection shall be in addition to any amounts 

which may be awarded to claimants pursuant to Article IV of the subsidiary agreement for the implementation of Section 177 of the Compact. Nothing in this subsection creates any rights or obligations beyond those provided for in the original 

enacted version of Public Law 99–239. 

(e) ESPOUSAL PROVISIONS.—

(1) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that it is the intention of the Congress of the United States that the 

provisions of section 177 of the Compact of Free Association and the Agreement 

between the Government of the United States and the Government of the Marshall Islands for the Implementation of Section 177 of the Compact (hereafter 

in this subsection referred to as the ‘‘Section 177 Agreement’’) constitute a full 

and final settlement of all claims described in Articles X and XI of the Section 

177 Agreement, and that any such claims be terminated and barred except insofar as provided for in the Section 177 Agreement. 

8

(2) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that in furtherance of the intention of Congress as stated in paragraph 

(1) of this subsection, the Section 177 Agreement is hereby ratified and approved. It is the explicit understanding and intent of Congress that the jurisdictional limitations set forth in Article XII of such Agreement are enacted solely 

and exclusively to accomplish the objective of Article X of such Agreement and 

only as a clarification of the effect of Article X, and are not to be construed or 

implemented separately from Article X. 

(3) The amounts specified in paragraph (1) of this subsection were paid as 

specified. Nothing in this subsection creates any rights or obligations beyond 

those provided for in the original enacted version of Public Law 99–239. The 

provisions of section 177 of the Compact, section 177 of the U.S.-FSM Compact, 

section 177 of the U.S.-RMI Compact, and the Section 177 Agreement constitute 

a full and final settlement of all claims described in Articles X and XI of the 

Section 177 Agreement, and any such claims are terminated and barred. 

(f) DOE RADIOLOGICAL HEALTH CARE PROGRAM; USDA AGRICULTURAL AND FOOD

PROGRAMS.— (1) MARSHALL ISLANDS PROGRAM.—Notwithstanding any other provision of 

law, upon the request of the Government of the Republic of the Marshall Islands, the President (either through an appropriate department or agency of the 

United States or by contract with a United States firm) shall continue to provide special medical care and logistical support thereto for the remaining 118 

(as of April 30, 2003) members of the population of Rongelap and Utrik who 

were exposed to radiation resulting from the 1954 United States thermo-nuclear 

‘‘Bravo’’ test, pursuant to Public Laws 95–134 and 96–205. 

(2) AGRICULTURAL AND FOOD PROGRAMS.—In the joint resolution of January 

14, 1986 (Public Law 99–239) Congress provided that notwithstanding any 

other provision of law, upon the request of the Government of the Marshall Islands, for the first fifteen years after the effective date of the Compact, the 

President (either through an appropriate department or agency of the United 

States or by contract with a United States firm or by a grant to the Government 

of the Republic of the Marshall Islands which may further contract only with 

a United States firm or a Republic of the Marshall Islands firm, the owners, 

officers and majority of the employees of which are citizens of the United States 

or the Republic of the Marshall Islands) shall provide technical and other assistance—

(A) without reimbursement, to continue the planting and agricultural 

maintenance program on Enewetak; 

(B) without reimbursement, to continue the food programs of the Bikini 

and Enewetak people described in section 1(d) of Article II of the Subsidiary 

Agreement for the Implementation of Section 177 of the Compact and for 

continued waterborne transportation of agricultural products to Enewetak 

including operations and maintenance of the vessel used for such purposes. 

The President shall ensure the assistance provided under these programs reflects the changes in the population since the inception of such programs. 

(3) PAYMENTS.—In the joint resolution of January 14, 1986 (Public Law 99–

239) Congress provided that payments under this subsection shall be provided 

to such extent or in such amounts as are necessary for services and other assistance provided pursuant to this subsection. It is the sense of Congress that after 

the periods of time specified in paragraphs (1) and (2) of this subsection, consideration will be given to such additional funding for these programs as may be 

necessary. Nothing in this subsection creates any rights or obligations beyond 

those provided for in the original enacted version of Public Law 99–239. 

(g) RONGELAP.—

(1) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that because Rongelap was directly affected by fallout from a 1954 

United States thermonuclear test and because the Rongelap people remain unconvinced that it is safe to continue to live on Rongelap Island, it is the intent 

of Congress to take such steps (if any) as may be necessary to overcome the effects of such fallout on the habitability of Rongelap Island, and to restore 

Rongelap Island, if necessary, so that it can be safely inhabited. Accordingly, 

it is the expectation of the Congress that the Government of the Marshall Islands shall use such portion of the funds specified in Article II, section 1(e) of 

the subsidiary agreement for the implementation of section 177 of the Compact 

as are necessary for the purpose of contracting with a qualified scientist or 

group of scientists to review the data collected by the Department of Energy relating to radiation levels and other conditions on Rongelap Island resulting from 

the thermonuclear test. It is the expectation of the Congress that the Government of the Marshall Islands, after consultation with the people of Rongelap, 

9

shall select the party to review such data, and shall contract for such review 

and for submission of a report to the President of the United States and the 

Congress as to the results thereof. 

(2) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that the purpose of the review referred to in paragraph (1) of this subsection shall be to establish whether the data cited in support of the conclusions 

as to the habitability of Rongelap Island, as set forth in the Department of Energy report entitled: ‘‘The Meaning of Radiation for Those Atolls in the Northern Part of the Marshall Islands That Were Surveyed in 1978’’, dated November 

1982, are adequate and whether such conclusions are fully supported by the 

data. If the party reviewing the data concludes that such conclusions as to habitability are fully supported by adequate data, the report to the President of the 

United States and the Congress shall so state. If the party reviewing the data 

concludes that the data are inadequate to support such conclusions as to habitability or that such conclusions as to habitability are not fully supported by the 

data, the Government of the Marshall Islands shall contract with an appropriate scientist or group of scientists to undertake a complete survey of radiation and other effects of the nuclear testing program relating to the habitability of Rongelap Island. Such sums as are necessary for such survey and report concerning the results thereof and as to steps needed to restore the habitability of Rongelap Island are authorized to be made available to the Government of the Marshall Islands. 

(3) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that it is the intent of Congress that such steps (if any) as are necessary to restore the habitability of Rongelap Island and return the Rongelap 

people to their homeland will be taken by the United States in consultation 

with the Government of the Marshall Islands and, in accordance with its authority under the Constitution of the Marshall Islands, the Rongelap local government council. Nothing in this subsection creates any rights or obligations beyond those provided for in the original enacted version of Public Law 99–239. 

(h) FOUR ATOLL HEALTH CARE PROGRAM.—

(1) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that services provided by the United States Public Health Service or 

any other United States agency pursuant to section 1(a) of Article II of the 

Agreement for the Implementation of Section 177 of the Compact (hereafter in 

this subsection referred to as the ‘‘Section 177 Agreement’’) shall be only for 

services to the people of the Atolls of Bikini, Enewetak, Rongelap, and Utrik 

who were affected by the consequences of the United States nuclear testing program, pursuant to the program described in Public Law 95–134 (91 Stat. 1159) 

and Public Law 96–205 (94 Stat. 84) and their descendants (and any other persons identified as having been so affected if such identification occurs in the 

manner described in such public laws). Nothing in this subsection shall be construed as prejudicial to the views or policies of the Government of the Marshall 

Islands as to the persons affected by the consequences of the United States nuclear testing program. 

(2) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that at the end of the first year after the effective date of the Compact 

and at the end of each year thereafter, the providing agency or agencies shall 

return to the Government of the Marshall Islands any unexpended funds to be 

returned to the Fund Manager (as described in Article I of the Section 177 

Agreement) to be covered into the Fund to be available for future use. 

(3) In the joint resolution of January 14, 1986 (Public Law 99–239) Congress 

provided that the Fund Manager shall retain the funds returned by the Government of the Marshall Islands pursuant to paragraph (2) of this subsection, shall 

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

date of the Compact, shall make from the total amount so retained and the proceeds thereof annual disbursements sufficient to continue to make payments for 

the provision of health services as specified in paragraph (1) of this subsection 

to such extent as may be provided in contracts between the Government of the 

Marshall Islands and appropriate United States providers of such health services. Nothing in this subsection creates any rights or obligations beyond those 

provided for in the original enacted version of Public Law 99–239. 

(i) ENJEBI COMMUNITY TRUST FUND.—In the joint resolution of January 14, 1986 

(Public Law 99–239) Congress provided that notwithstanding any other provision of 

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

the United States a fund having the status specified in Article V of the subsidiary 

agreement for the implementation of Section 177 of the Compact, to be known as 

the ‘‘Enjebi Community Trust Fund’’ (hereafter in this subsection referred to as the 

‘‘Fund’’), and shall credit to the Fund the amount of $7,500,000. Such amount, which 

10

shall be ex gratia, shall be in addition to and not charged against any other funds 

provided for in the Compact and its subsidiary agreements, this joint resolution, or 

any other Act. Upon receipt by the President of the United States of the agreement 

described in this subsection, the Secretary of the Treasury, upon request of the Government of the Marshall Islands, shall transfer the Fund to the Government of the 

Marshall Islands, provided that the Government of the Marshall Islands agrees as 

follows: 

(1) ENJEBI TRUST AGREEMENT.—In the joint resolution of January 14, 1986 

(Public Law 99–239) Congress provided that the Government of the Marshall 

Islands and the Enewetak Local Government Council, in consultation with the 

people of Enjebi, shall provide for the creation of the Enjebi Community Trust 

Fund and the employment of the manager of the Enewetak Fund established 

pursuant to the Section 177 Agreement as trustee and manager of the Enjebi 

Community Trust Fund, or, should the manager of the Enewetak Fund not be 

acceptable to the people of Enjebi, another United States investment manager 

with substantial experience in the administration of trusts and with funds 

under management in excess of 250 million dollars. 

(2) MONITOR CONDITIONS.—In the joint resolution of January 14, 1986 (Public 

Law 99–239) Congress provided that upon the request of the Government of the 

Marshall Islands, the United States shall monitor the radiation and other conditions on Enjebi and within one year of receiving such a request shall report to 

the Government of the Marshall Islands when the people of Enjebi may resettle 

Enjebi under circumstances where the radioactive contamination at Enjebi, including contamination derived from consumption of locally grown food products, 

can be reduced or otherwise controlled to meet whole body Federal radiation 

protection standards for the general population, including mean annual dose 

and mean 30-year cumulative dose standards. 

(3) RESETTLEMENT OF ENJEBI.—In the joint resolution of January 14, 1986 

(Public Law 99–239) Congress provided that in the event that the United States 

determines that the people of Enjebi can within 25 years of January 14, 1986, 

resettle Enjebi under the conditions set forth in paragraph (2) of this subsection, then upon such determination there shall be available to the people of 

Enjebi from the Fund such amounts as are necessary for the people of Enjebi 

to do the following, in accordance with a plan developed by the Enewetak Local 

Government Council and the people of Enjebi, and concurred with by the Government of the Marshall Islands to assure consistency with the government’s 

overall economic development plan: 

(A) Establish a community on Enjebi Island for the use of the people of 

Enjebi. 

(B) Replant Enjebi with appropriate food-bearing and other vegetation. 

(4) RESETTLEMENT OF OTHER LOCATION.—In the joint resolution of January 

14, 1986 (Public Law 99–239) Congress provided that in the event that the 

United States determines that within 25 years of January 14, 1986, the people 

of Enjebi cannot resettle Enjebi without exceeding the radiation standards set 

forth in paragraph (2) of this subsection, then the fund manager shall be directed by the trust instrument to distribute the Fund to the people of Enjebi 

for their resettlement at some other location in accordance with a plan, developed by the Enewetak Local Government Council and the people of Enjebi and 

concurred with by the Government of the Marshall Islands, to assure consistency with the government’s overall economic development plan. 

(5) INTEREST FROM FUND.—In the joint resolution of January 14, 1986 (Public 

Law 99–239) Congress provided that prior to and during the distribution of the 

corpus of the Fund pursuant to paragraphs (3) and (4) of this subsection, the 

people of Enjebi may, if they so request, receive the interest earned by the Fund 

on no less frequent a basis than quarterly. 

(6) DISCLAIMER OF LIABILITY.—In the joint resolution of January 14, 1986 

(Public Law 99–239) Congress provided that neither under the laws of the Marshall Islands nor under the laws of the United States, shall the Government 

of the United States be liable for any loss or damage to person or property in 

respect to the resettlement of Enjebi by the people of Enjebi, pursuant to the 

provision of this subsection or otherwise. 

(7) STATUS OF PAYMENT.—The ex gratia payment provided for in this subsection was made. Nothing in this subsection creates any rights or obligations 

beyond those provided for in the original enacted version of Public Law 99–239. 

(j) BIKINI ATOLL CLEANUP.—

(1) DECLARATION OF POLICY.—In the joint resolution of January 14, 1986 

(Public Law 99–239), the Congress determined and declared that it is the policy 

of the United States, to be supported by the full faith and credit of the United 

States, that because the United States, through its nuclear testing and other 

11

activities, rendered Bikini Atoll unsafe for habitation by the people of Bikini, 

the United States will fulfill its responsibility for restoring Bikini Atoll to habitability, as set forth in paragraph (2) and (3) of this subsection. 

(2) CLEANUP FUNDS.—The joint resolution of January 14, 1986 (Public Law 

99–239) authorized to be appropriated such sums as necessary to implement the 

settlement agreement of March 15, 1985, in The People of Bikini, et al. against 

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

(3) CONDITIONS OF FUNDING.—In the joint resolution of January 14, 1986 

(Public Law 99–239) the Congress provided that the funds referred to in paragraph (2) were to be made available pursuant to Article VI, Section 1 of the 

Compact Section 177 Agreement upon completion of the events set forth in the 

settlement agreement referred to in paragraph (2) of this subsection. Nothing 

in this subsection creates any rights or obligations beyond those provided for 

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

(k) AGREEMENT ON AUDITS.—The Comptroller General (and his duly authorized 

representatives) shall have the authorities necessary to carry out his responsibilities 

under section 232 of the U.S.-RMI Compact and the agreement referred to in section 

462(b)(4) of the U.S.-RMI Compact, including the following authorities: 

(1) GENERAL AUTHORITY OF THE COMPTROLLER GENERAL TO AUDIT.—

(A) The Comptroller General of the United States (and his duly authorized representatives) shall have the authority to audit—

(i) all grants, program assistance, and other assistance provided to 

the Government of the Republic of the Marshall Islands under Articles 

I and II of Title Two of the U.S.-RMI Compact; and 

(ii) any other assistance provided by the Government of the United 

States to the Government of the Republic of the Marshall Islands. 

Such authority shall include authority for the Comptroller General to conduct or cause to be conducted any of the audits provided for in section 232 

of the U.S.-RMI Compact. The authority provided in this paragraph shall 

continue for at least three years after the last such grant has been made 

or assistance has been provided. 

(B) The Comptroller General (and his duly authorized representatives) 

shall also have authority to review any audit conducted by or on behalf of 

the Government of the United States. In this connection, the Comptroller 

General shall have access to such personnel and to such records, documents, working papers, automated data and files, and other information 

relevant to such review. 

(2) COMPTROLLER GENERAL ACCESS TO RECORDS.—

(A) In carrying out paragraph (1), the Comptroller General (and his duly 

authorized representatives) shall have such access to the personnel and 

(without cost) to records, documents, working papers, automated data and 

files, and other information relevant to such audits. The Comptroller General may duplicate any such records, documents, working papers, automated data and files, or other information relevant to such audits. 

(B) Such records, documents, working papers, automated data and files, 

and other information regarding each such grant or other assistance shall 

be maintained for at least three years after the date such grant or assistance was provided and in a manner that permits such grants, assistance 

and payments to be accounted for distinct from any other funds of the Government of the Republic of the Marshall Islands. 

(3) STATUS OF COMPTROLLER GENERAL REPRESENTATIVES.—The Comptroller 

General and his duly authorized representatives shall be immune from civil and 

criminal process relating to words spoken or written and all acts performed by 

them in their official capacity and falling within their functions, except insofar 

as such immunity may be expressly waived by the Government of the United 

States. The Comptroller General and his duly authorized representatives shall 

not be liable to arrest or detention pending trial, except in the case of a grave 

crime and pursuant to a decision by a competent judicial authority, and such 

persons shall enjoy immunity from seizure of personal property, immigration restrictions, and laws relating to alien registration, fingerprinting, and the registration of foreign agents. Such persons shall enjoy the same taxation exemptions as are set forth in Article 34 of the Vienna Convention on Diplomatic Relations. The privileges, exemptions and immunities accorded under this paragraph are not for the personal benefit of the individuals concerned but are to 

safeguard the independent exercise of their official functions. Without prejudice 

to those privileges, exemptions and immunities, it is the duty of all such persons to respect the laws and regulations of the Government of the Republic of 

the Marshall Islands. 

12

(4) AUDITS DEFINED.—As used in this subsection, the term ‘‘audits’’ includes 

financial, program, and management audits, including determining— (A) whether the Government of the Republic of the Marshall Islands has 

met the requirements set forth in the U.S.-RMI Compact, or any related 

agreement entered into under the U.S.-RMI Compact, regarding the purposes for which such grants and other assistance are to be used; and 

(B) the propriety of the financial transactions of the Government of the 

Republic of the Marshall Islands pursuant to such grants or assistance. 

(5) COOPERATION BY THE REPUBLIC OF THE MARSHALL ISLANDS.—The Government of the Republic of the Marshall Islands will cooperate fully with the 

Comptroller General of the United States in the conduct of such audits as the 

Comptroller General determines necessary to enable the Comptroller General to 

fully discharge his responsibilities under this joint resolution. 

SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY REGARDING U.S.-FSM COMPACT 

AND U.S.-RMI COMPACT. 

(a) HUMAN RIGHTS.—In approving the U.S.-FSM Compact and the U.S.-RMI Compact, the Congress notes the conclusion in the Statement of Intent of the Report of 

The Future Political Status Commission of the Congress of Micronesia in July, 1969, 

that ‘‘our recommendation of a free associated state is indissolubly linked to our desire for such a democratic, representative, constitutional government’’ and notes 

that such desire and intention are reaffirmed and embodied in the Constitutions of 

the Federated States of Micronesia and the Republic of the Marshall Islands. The 

Congress also notes and specifically endorses the preamble to the U.S.-FSM Compact and the U.S.-RMI Compact, which affirms that the governments of the parties 

to the U.S.-FSM Compact and the U.S.-RMI Compact are founded upon respect for 

human rights and fundamental freedoms for all. The Secretary of State shall include in the annual reports on the status of internationally recognized human rights 

in foreign countries, which are submitted to the Congress pursuant to sections 116 

and 502B of the Foreign Assistance Act of 1961 (22 U.S.C 2151n, 2304), a full and 

complete report regarding the status of internationally recognized human rights in 

the Federated States of Micronesia and the Republic of the Marshall Islands. 

(b) IMMIGRATION AND PASSPORT SECURITY.— (1) NATURALIZED CITIZENS.—The rights of a bona fide naturalized citizen of 

the Federated States of Micronesia or the Republic of the Marshall Islands to 

enter the United States, to lawfully engage therein in occupations, and to establish residence therein as a nonimmigrant, to the extent such rights are provided 

under section 141 of the U.S.-FSM Compact and U.S.-RMI Compact, shall not 

be deemed to extend to any such naturalized citizen with respect to whom circumstances associated with the acquisition of the status of a naturalized citizen 

are such as to allow a reasonable inference, on the part of appropriate officials 

of the United States and subject to United States procedural requirements, that 

such naturalized status was acquired primarily in order to obtain such rights. 

(2) PASSPORTS.—Up to $250,000 of the grant assistance provided to the Federated States of Micronesia pursuant to section 211(a)(4) of the U.S.-FSM Compact, and up to $250,000 of the grant assistance provided to the Republic of the 

Marshall Islands pursuant to section 211(a)(4) of the U.S.-RMI Compact (or a 

greater amount of the section 211(a)(4) grant, if mutually agreed between the 

Government of the United States and the government of the Federated States 

of Micronesia or the government of the Republic of the Marshall Islands), shall 

be used for the purpose of increasing the machine-readability and security of 

passports issued by such jurisdictions. Such funds must be obligated by September 30, 2004 and in the amount and manner specified by the Secretary of 

State in consultation with the Secretary of Homeland Security and, respectively, 

with the government of the Federated States of Micronesia and the government 

of the Republic of the Marshall Islands. The United States Government is authorized to require that passports used for the purpose of seeking admission 

under section 141 of the U.S.-FSM Compact and the U.S.-RMI Compact contain 

the security enhancements funded by such assistance. 

(3) INFORMATION-SHARING.—As a condition of assistance under the U.S.-FSM 

Compact and the U.S.-RMI Compact, the governments of the Federated States 

of Micronesia and the Republic of the Marshall Islands shall develop, prior to 

October 1, 2004, the capability to provide reliable and timely information as 

may reasonably be required by the Government of the United States in enforcing criminal and security-related grounds of inadmissibility and deportability 

under the Immigration and Nationality Act, as amended, and shall provide such 

information to the Government of the United States. 

(4) TRANSITION; CONSTRUCTION OF SECTIONS 141(A)(3) AND 141(A)(4) OF THE U.S.-

FSM COMPACT AND U.S.-RMI COMPACT.—The words ‘‘the effective date of this 

Compact, as amended’’ in sections 141(a)(3) and 141(a)(4) of the U.S.-FSM ComVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00012 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
13

pact and the U.S.-RMI Compact shall be construed to read, ‘‘on the day prior 

to the enactment by the United States Congress of the Amended Compact Act.’’. 

(c) NONALIENATION OF LANDS.—The Congress endorses and encourages the maintenance of the policies of the Government of the Federated States of Micronesia and 

the Government of the Republic of the Marshall Islands to regulate, in accordance 

with their Constitutions and laws, the alienation of permanent interests in real 

property so as to restrict the acquisition of such interests to persons of Federated 

States of Micronesia citizenship and the Republic of the Marshall Islands citizenship, respectively.

(d) NUCLEAR WASTE DISPOSAL.—In approving the U.S.-FSM Compact and the 

U.S.-RMI Compact, the Congress understands that the Government of the Federated States of Micronesia and the Government of the Republic of the Marshall Islands will not permit any other government or any nongovernmental party to conduct, in the Republic of the Marshall Islands or in the Federated States of Micronesia, any of the activities specified in subsection (a) of section 314 of the U.S.-FSM 

Compact and the U.S.-RMI Compact. 

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

AREAS; RELATED AUTHORIZATION AND CONTINUING APPROPRIATION.—

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

(A) the term ‘‘affected jurisdiction’’ means American Samoa, Guam, the 

Commonwealth of the Northern Mariana Islands, or the State of Hawaii; 

and 

(B) the term ‘‘qualified nonimmigrant’’ means person admitted pursuant 

to section 141 of the U.S.-RMI or U.S.-FSM Compact, or section 141 of the 

Palau Compact who, as of a date referenced in the most recently published 

enumeration (i) is a resident of an affected jurisdiction, and (ii) has had periods of residence in American Samoa, Guam, the Commonwealth of the 

Northern Mariana Islands, or a State of the United States with a duration, 

in the aggregate, of less than 10 years; and their children under the age 

of 18 who were admitted as nonimmigrants under the U.S.-RMI Compact, 

the U.S.-FSM Compact, or the Palau Compact. As used in this subsection, 

the term ‘‘resident’’ shall be a person who has a ‘‘residence,’’ as that term 

is defined in section 101(a)(33) of the Immigration and Nationality Act, as 

amended. 

(2) AUTHORIZATION AND CONTINUING APPROPRIATION.—There is hereby authorized and appropriated to the Secretary of the Interior, out of any money in the 

Treasury not otherwise appropriated, to remain available until expended, for 

each fiscal year from 2004 through 2023, $15,000,000 for grants to affected jurisdictions to aid in defraying costs incurred by affected jurisdictions as a result 

of increased demands placed on health, educational, social, or public safety services or infrastructure related to such services due to the residence in affected 

jurisdictions of qualified nonimmigrants from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau. The grants 

shall be—

(A) awarded and administered by the Department of the Interior, Office 

of Insular Affairs, or any successor thereto, in accordance with regulations, 

policies and procedures applicable to grants so awarded and administered, 

and 

(B) used only for health, educational, social, or public safety services, or 

infrastructure related to such services, specifically affected by qualified nonimmigrants. 

(3) ENUMERATION.—The Secretary of the Interior shall conduct periodic enumerations of qualified nonimmigrants in each affected jurisdiction. The enumerations—

(A) shall be conducted at such intervals as the Secretary of the Interior 

shall determine, but no less frequently than every five years, beginning in 

fiscal year 2003; 

(B) shall be supervised by the United States Bureau of the Census or 

such other organization as the Secretary of the Interior may select; and 

(C) after fiscal year 2003, shall be funded by the Secretary of the Interior 

by deducting such sums as are necessary from funds appropriated pursuant 

to the authorization contained in paragraph (2) of this subsection. 

(4) ALLOCATION.—The Secretary of the Interior shall allocate to the government of each affected jurisdiction, on the basis of the results of the most recent 

enumeration, grants in an aggregate amount equal to the total amount of funds 

appropriated under paragraph (2) of this subsection, as reduced by any deductions authorized by subparagraph (C) of paragraph (3) of this subsection, multiplied by a ratio derived by dividing the number of qualified nonimmigrants in 

14

such affected jurisdiction by the total number of qualified nonimmigrants in all 

affected jurisdictions. 

(f) FOREIGN LOANS.—The Congress hereby reaffirms the United States position 

that the United States Government is not responsible for foreign loans or debt obtained by the Governments of the Federated States of Micronesia and the Republic 

of the Marshall Islands. 

SEC. 105. SUPPLEMENTAL PROVISIONS. 

(a) DOMESTIC PROGRAM REQUIREMENTS.—Except as may otherwise be provided in 

this joint resolution, all United States Federal programs and services extended to 

or operated in the Federated States of Micronesia or the Republic of the Marshall 

Islands are and shall remain subject to all applicable criteria, standards, reporting 

requirements, auditing procedures, and other rules and regulations applicable to 

such programs when operating in the United States (including its territories and 

commonwealths). 

(b) RELATIONS WITH THE FEDERATED STATES OF MICRONESIA AND THE REPUBLIC

OF THE MARSHALL ISLANDS.—

(1) Appropriations made pursuant to Article I of Title Two and subsection 

(a)(2) of section 221 of Article II of Title Two of the U.S.-FSM Compact and the 

U.S.-RMI Compact shall be made to the Secretary of the Interior, who shall 

have the authority necessary to fulfill his responsibilities for monitoring and 

managing the funds so appropriated consistent with the U.S.-FSM Compact and 

the U.S.-RMI Compact, including the agreements referred to in section 462(b)(4) 

of the U.S.-FSM Compact and U.S.-RMI Compact (relating to Fiscal Procedures) 

and the agreements referred to in section 462(b)(5) of the U.S.-FSM Compact 

and the U.S.-RMI Compact (regarding the Trust Fund).

(2) Appropriations made pursuant to subsections (a)(1) and (a)(3) through (6) 

of section 221 of Article II of Title Two of the U.S.-FSM Compact and subsection 

(a)(1) and (a)(3) through (5) of the U.S.-RMI Compact shall be made directly to 

the agencies named in those subsections. 

(3) Appropriations for services and programs referred to in subsection (b) of 

section 221 of Article II of Title Two of the U.S.-FSM Compact or U.S.-RMI 

Compact and appropriations for services and programs referred to in sections 

105(f) and 108(a) of this joint resolution shall be made to the relevant agencies 

in accordance with the terms of the appropriations for such services and programs. 

(4) Federal agencies providing programs and services to the Federated States 

of Micronesia and the Republic of the Marshall Islands shall coordinate with 

the Secretaries of the Interior and State regarding provision of such programs 

and services. The Secretaries of the Interior and State shall consult with the 

Secretary of the Treasury regarding overall economic conditions in the Federated States of Micronesia and the Republic of the Marshall Islands. 

(5) United States Government employees in either the Federated States of Micronesia or the Republic of the Marshall Islands are subject to the authority of 

the United States Chief of Mission, including as elaborated in section 207 of the 

Foreign Service Act and the President’s Letter of Instruction to the United 

States Chief of Mission and any order or directive of the President in effect from 

time to time. 

(6) The President is hereby authorized to appoint an Interagency Group on 

Freely Associated States’ Affairs to provide policy guidance and recommendations on implementation of the U.S.-FSM Compact and the U.S.-RMI Compact 

to Federal departments and agencies. 

(7) The three United States appointees (United States chair plus two members) to the Joint Economic Management Committee provided for in section 213 

of the U.S.-FSM Compact and Article III of the U.S.-FSM Fiscal Procedures 

Agreement referred to in section 462(b)(4) of the U.S.-FSM Compact shall be 

United States Government officers or employees. The three United States appointees (United States chair plus two members) to the Joint Economic Management and Financial Accountability Committee provided for in section 214 of the 

U.S.-RMI Compact and Article III of the U.S.-RMI Fiscal Procedures Agreement 

referred to in section 462(b)(4) of the U.S.-RMI Compact shall be United States 

Government officers or employees. 

(8) The United States voting members (United States chair plus two or more 

members) of the Trust Fund Committee appointed by the Government of the 

United States pursuant to Article 7 of the Trust Fund Agreement implementing 

section 215 of the U.S.-FSM Compact and referred to in section 462(b)(5) of the 

U.S.-FSM Compact and any alternates designated by the Government of the 

United States shall be United States Government officers or employees. The 

United States voting members (United States chair plus two or more members) 

15

of the Trust Fund Committee appointed by the Government of the United 

States pursuant to Article 7 of the Trust Fund Agreement implementing section 

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

RMI Compact and any alternates designated by the Government of the United 

States shall be United States Government officers or employees. 

(9) The Trust Fund Committee provided for in Article 7 of the U.S.-FSM 

Trust Fund Agreement implementing section 215 of the U.S.-FSM Compact 

shall be a non-profit corporation incorporated under the laws of the District of 

Columbia. To the extent that any law, rule, regulation or ordinance of the District of Columbia, or of any State or political subdivision thereof in which the 

Trust Fund Committee is incorporated or doing business, impedes or otherwise 

interferes with the performance of the functions of the Trust Fund Committee 

pursuant to this joint resolution, such law, rule, regulation, or ordinance shall 

be deemed to be preempted by this joint resolution. The Trust Fund Committee 

provided for in Article 7 of the U.S.-RMI Trust Fund Agreement implementing 

section 216 of the U.S.-RMI Compact shall be a non-profit corporation incorporated under the laws of the District of Columbia. To the extent that any law, 

rule, regulation or ordinance of the District of Columbia, or of any State or political subdivision thereof in which the Trust Fund Committee is incorporated 

or doing business, impedes or otherwise interferes with the performance of the 

functions of the Trust Fund Committee pursuant to this joint resolution, such 

law, rule, regulation, or ordinance shall be deemed to be preempted by this joint 

resolution. 

(c) CONTINUING TRUST TERRITORY AUTHORIZATION.—The authorization provided 

by the Act of June 30, 1954, as amended (68 Stat. 330) shall remain available after 

the effective date of the Compact with respect to the Federated States of Micronesia 

and the Republic of the Marshall Islands for the following purposes: 

(1) Prior to October 1, 1986, for any purpose authorized by the Compact or 

the joint resolution of January 14, 1986 (Public Law 99–239). 

(2) Transition purposes, including but not limited to, completion of projects 

and fulfillment of commitments or obligations; termination of the Trust Territory Government and termination of the High Court; health and education as 

a result of exceptional circumstances; ex gratia contributions for the populations 

of Bikini, Enewetak, Rongelap, and Utrik; and technical assistance and training 

in financial management, program administration, and maintenance of infrastructure, except that, for purposes of an orderly reduction of United States programs and services in the Federated States of Micronesia, the Marshall Islands, 

and Palau, United States programs or services not specifically authorized by the 

Compact of Free Association or by other provisions of law may continue but, unless reimbursed by the respective freely associated state, not in excess of the 

following amounts: 

(A) For fiscal year 1987, an amount not to exceed 75 per centum of the 

total amount appropriated for such programs for fiscal year 1986. 

(B) For fiscal year 1988, an amount not to exceed 50 per centum of the 

total amount appropriated for such programs for fiscal year 1986. 

(C) For fiscal year 1989, an amount not to exceed 25 per centum of the 

total amount appropriated for such programs for fiscal year 1986. 

(d) SURVIVABILITY.—In furtherance of the provisions of Title Four, Article V, sections 452 and 453 of the U.S.-FSM Compact and the U.S.-RMI Compact, any provisions of the U.S.-FSM Compact or the U.S.-RMI Compact which remain effective 

after the termination of the U.S.-FSM Compact or U.S.-RMI Compact by the act of 

any party thereto and which are affected in any manner by provisions of this title 

shall remain subject to such provisions.

(e) NONCOMPLIANCE SANCTIONS; ACTIONS INCOMPATIBLE WITH UNITED STATES AUTHORITY.—The Congress expresses its understanding that the Governments of the 

Federated States of Micronesia and the Republic of the Marshall Islands will not 

act in a manner incompatible with the authority and responsibility of the United 

States for security and defense matters in or related to the Federated States of Micronesia or the Republic of the Marshall Islands pursuant to the U.S.-FSM Compact 

or the U.S.-RMI Compact, including the agreements referred to in sections 462(a)(2) 

of the U.S.-FSM Compact and 462(a)(5) of the U.S.-RMI Compact. The Congress further expresses its intention that any such act on the part of either such Government 

will be viewed by the United States as a material breach of the U.S.-FSM Compact 

or U.S.-RMI Compact. The Government of the United States reserves the right in 

the event of such a material breach of the U.S.-FSM Compact by the Government 

of the Federated States of Micronesia or the U.S.-RMI Compact by the Government 

of the Republic of the Marshall Islands to take action, including (but not limited 

to) the suspension in whole or in part of the obligations of the Government of the 

United States to that Government. 

16

(f) CONTINUING PROGRAMS AND LAWS.— (1) FEDERATED STATES OF MICRONESIA AND REPUBLIC OF THE MARSHALL IS- LANDS.—In addition to the programs and services set forth in section 221 of the 

Compact, and pursuant to section 222 of the Compact, the programs and services of the following agencies shall be made available to the Federated States 

of Micronesia and to the Republic of the Marshall Islands: 

(A) The Legal Services Corporation. 

(B) The Public Health Service. 

(C) The Rural Housing Service (formerly, the Farmers Home Administration) in the Marshall Islands and each of the four States of the Federated 

States of Micronesia: Provided, That in lieu of continuation of the program 

in the Federated States of Micronesia, the President may agree to transfer 

to the Government of the Federated States of Micronesia without cost, the 

portfolio of the Rural Housing Service applicable to the Federated States 

of Micronesia and provide such technical assistance in management of the 

portfolio as may be requested by the Federated States of Micronesia). 

(2) TORT CLAIMS.—The provisions of section 178 of the U.S.-FSM Compact and 

the U.S.-RMI Compact regarding settlement and payment of tort claims shall 

apply to employees of any Federal agency of the Government of the United 

States (and to any other person employed on behalf of any Federal agency of 

the Government of the United States on the basis of a contractual, cooperative, 

or similar agreement) which provides any service or carries out any other function pursuant to or in furtherance of any provisions of the U.S.-FSM Compact 

or the U.S.-RMI Compact or this joint resolution, except for provisions of Title 

Three of the Compact and of the subsidiary agreements related to such Title, 

in such area to which such Agreement formerly applied. 

(3) PCB CLEANUP.—The programs and services of the Environmental Protection Agency regarding PCBs shall, to the extent applicable, as appropriate, and 

in accordance with applicable law, be construed to be made available to such 

islands. 

(g) COLLEGE OF MICRONESIA.—Until otherwise provided by Act of Congress, or 

until termination of the U.S.-FSM Compact and the U.S.-RMI Compact, the College 

of Micronesia shall retain its status as a land-grant institution and its eligibility for 

all benefits and programs available to such land-grant institutions. 

(h) TRUST TERRITORY DEBTS TO U.S. FEDERAL AGENCIES.—Neither the Government of the Federated States of Micronesia nor the Government of the Marshall Islands shall be required to pay to any department, agency, independent agency, office, or instrumentality of the United States any amounts owed to such department, 

agency, independent agency, office, or instrumentality by the Government of the 

Trust Territory of the Pacific Islands as of the effective date of the Compact. There 

is authorized to be appropriated such sums as may be necessary to carry out the 

purposes of this subsection. 

(i) USE OF DOD MEDICAL FACILITIES.—The Secretary of Defense is hereby authorized to cooperate with government authorities responsible for provision of medical 

services in the Federated States of Micronesia and the Republic of the Marshall Islands in order to permit use of medical facilities of the Department of Defense for 

persons properly referred by such authorities in accordance with Article XVII of the 

agreements referred to in section 462(b)(7) of the U.S.-FSM Compact and the U.S.-

RMI Compact. The Secretary of Health and Human Services is hereby authorized 

and directed to continue to make the services of the National Health Service Corps 

available to the residents of the Federated States of Micronesia and the Republic 

of the Marshall Islands to the same extent and for so long as such services are authorized to be provided to persons residing in any other areas within or outside the 

United States. 

(j) TECHNICAL ASSISTANCE.—Technical assistance may be provided pursuant to 

section 224 of the U.S.-FSM Compact or the U.S.-RMI Compact by Federal agencies 

and institutions of the Government of the United States to the extent such assistance may be provided to States, territories, or units of local government. Such assistance by the Forest Service, the Natural Resources Conservation Service, the 

USDA Resource Conservation and Development Program, the Fish and Wildlife 

Service, the National Marine Fisheries Service, the United States Coast Guard, and 

the Advisory Council on Historic Preservation, the Department of the Interior, and 

other agencies providing assistance under the National Historic Preservation Act 

(80 Stat. 915; 16 U.S.C. 470–470t), shall be on a nonreimbursable basis. During the 

period the U.S.-FSM Compact and the U.S.-RMI Compact are in effect, the grant 

programs under the National Historic Preservation Act shall continue to apply to 

the Federated States of Micronesia and the Republic of the Marshall Islands in the 

same manner and to the same extent as prior to the approval of the Compact. Any 

funds provided pursuant to sections 102(a), 103(a), 103(b), 103(f), 103(g), 103(h), 

17

103(j), 105(c), 105(g), 105(h), 105(i), 105(j), 105(k), 105(l), and 105(m) of this joint 

resolution shall be in addition to and not charged against any amounts to be paid 

to either the Federated States of Micronesia or the Republic of the Marshall Islands 

pursuant to the U.S.-FSM Compact, the U.S.-RMI Compact, or their related subsidiary agreements. 

(k) PRIOR SERVICE BENEFITS PROGRAM.—Notwithstanding any other provision of 

law, persons who on January 1, 1985, were eligible to receive payment under the 

Prior Service Benefits Program established within the Social Security System of the 

Trust Territory of the Pacific Islands because of their services performed for the 

United States Navy or the Government of the Trust Territory of the Pacific Islands 

prior to July 1, 1968, shall continue to receive such payments on and after the effective date of the Compact. 

(l) INDEFINITE LAND USE PAYMENTS.—There are authorized to be appropriated 

such sums as may be necessary to complete repayment by the United States of any 

debts owed for the use of various lands in the Federated States of Micronesia and 

the Marshall Islands prior to January 1, 1985. 

(m) COMMUNICABLE DISEASE CONTROL PROGRAM.—There are authorized to be appropriated for grants to the Government of the Federated States of Micronesia such 

sums as may be necessary for purposes of establishing or continuing programs for 

the control and prevention of communicable diseases, including (but not limited to) 

cholera and Hansen’s Disease. The Secretary of the Interior shall assist the Government of the Federated States of Micronesia and the Government of the Republic of 

the Marshall Islands in designing and implementing such a program. 

(n) USER FEES.—Any person in the Federated States of Micronesia or the Republic 

of the Marshall Islands shall be liable for user fees, if any, for services provided in 

the Federated States of Micronesia or the Republic of the Marshall Islands by the 

Government of the United States to the same extent as any person in the United 

States would be liable for fees, if any, for such services in the United States. 

(o) TREATMENT OF JUDGMENTS OF COURTS OF THE FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC OF PALAU.—

No judgment, whenever issued, of a court of the Federated States of Micronesia, the 

Republic of the Marshall Islands, or the Republic of Palau, against the United 

States, its departments and agencies, or officials of the United States or any other 

individuals acting on behalf of the United States within the scope of their official 

duty, shall be honored by the United States, or be subject to recognition or enforcement in a court in the United States, unless the judgment is consistent with the 

interpretation by the United States of international agreements relevant to the 

judgment. In determining the consistency of a judgment with an international 

agreement, due regard shall be given to assurances made by the Executive Branch 

to the Congress of the United States regarding the proper interpretation of the 

international agreement. 

SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE. 

(a) ASSISTANCE TO U.S. FIRMS.—In order to assist the Governments of the Federated States of Micronesia and of the Republic of the Marshall Islands through private sector firms which may be awarded contracts for construction or major repair 

of capital infrastructure within the Federated States of Micronesia or the Republic 

of the Marshall Islands, the United States shall consult with the Governments of 

the Federated States of Micronesia and the Republic of the Marshall Islands with 

respect to any such contracts, and the United States shall enter into agreements 

with such firms whereby such firms will, consistent with applicable requirements 

of such Governments—

(1) to the maximum extent possible, employ citizens of the Federated States 

of Micronesia and the Republic of the Marshall Islands; 

(2) to the extent that necessary skills are not possessed by citizens of the Federated States of Micronesia and the Republic of the Marshall Islands, provide 

on the job training, with particular emphasis on the development of skills relating to operation of machinery and routine and preventative maintenance of machinery and other facilities; and 

(3) provide specific training or other assistance in order to enable the Government to engage in long-term maintenance of infrastructure. 

Assistance by such firms pursuant to this section may not exceed 20 percent of the 

amount of the contract and shall be made available only to such firms which meet 

the definition of United States firm under the nationality rule for suppliers of services of the Agency for International Development (hereafter in this section referred 

to as ‘‘United States firms’’). There are authorized to be appropriated such sums as 

may be necessary for the purposes of this subsection. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

such sums as may be necessary to cover any additional costs incurred by the GovVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00017 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
18

ernment of the Federated States of Micronesia or the Republic of the Marshall Islands if such Governments, pursuant to an agreement entered into with the United 

States, apply a preference on the award of contracts to United States firms, provided that the amount of such preference does not exceed 10 percent of the amount 

of the lowest qualified bid from a non-United States firm for such contract. 

SEC. 107. PROHIBITION. 

The provisions of chapter 11 of title 18, United States Code, shall apply in full 

to any individual who has served as the United States negotiator of amendments 

to the Compact or its subsidiary agreements or of related agreements or who is or 

was an officer or employee of the Office in the Department of State responsible for 

negotiating amendments to the Compact or its subsidiary agreements or who is or 

was assigned or detailed to that Office or who served on the interagency group coordinating United States policy on the Compact negotiations.

SEC. 108. COMPENSATORY ADJUSTMENTS. 

(a) ADDITIONAL PROGRAMS AND SERVICES.—In addition to the programs and services set forth in Section 221 of the U.S.-FSM Compact and the U.S.-RMI Compact, 

and pursuant to Section 222 of the U.S.-FSM Compact and the U.S.-RMI Compact, 

the services and programs of the following United States agencies are authorized 

to be made available to the Federated States of Micronesia and the Republic of the 

Marshall Islands: the Small Business Administration, Economic Development Administration, and the Rural Utilities Services (formerly Rural Electrification Administration); and the programs and services of the Department of Labor under the 

Workforce Investment Act of 1998; and the programs and services of the Department of Commerce relating to tourism and to marine resource development. 

(b) FURTHER AMOUNTS.—

(1) The joint resolution of January 14, 1986 (Public Law 99–239) provided 

that the governments of the Federated States of Micronesia and the Marshall 

Islands may submit to Congress reports concerning the overall financial and 

economic impacts on such areas resulting from the effect of Title IV of that joint 

resolution upon Title Two of the Compact. There were authorized to be appropriated for fiscal years beginning after September 30, 1990, such amounts as 

necessary, but not to exceed $40 million for the Federated States of Micronesia 

and $20 million for the Marshall Islands, as provided in appropriation acts, to 

further compensate the governments of such islands (in addition to the compensation provided in subsections (a) and (b) of section 111 of the joint resolution of January 14, 1986 (Public Law 99–239) for adverse impacts, if any, on 

the finances and economies of such areas resulting from the effect of Title IV 

of that joint resolution upon Title Two of the Compact. The joint resolution of 

January 14, 1986 (Public Law 99–239) further provided that at the end of the 

initial fifteen-year term of the Compact, should any portion of the total amount 

of funds authorized in subsection 111 of that resolution not have been appropriated, such amount not yet appropriated may be appropriated, without regard 

to divisions between amounts authorized in subsection 111 for the Federated 

States of Micronesia and for the Marshall Islands, based on either or both such 

government’s showing of such adverse impact, if any, as provided in that subsection. 

(2) The governments of the Federated States of Micronesia and the Republic 

of the Marshall Islands may each submit no more than one report or request 

for further compensation under section 111 of the joint resolution of January 

14, 1986 (Public Law 99–239) and any such report or request must be submitted 

by September 30, 2004. Only adverse economic effect occurring during the initial fifteen-year term of the Compact may be considered for compensation under 

section 111 of the joint resolution of January 14, 1986 (Public Law 99–239). 

SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION. 

(a) There are authorized and appropriated to the Department of the Interior, out 

of any money in the Treasury not otherwise appropriated, to remain available until 

expended, such sums as are necessary to carry out the purposes of sections 211, 

212(b), 215, and 217 of the U.S.-FSM-Compact and sections 211, 212, 213(b), 216, 

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

(b) There are authorized to be appropriated to the Departments, agencies, and instrumentalities named in paragraphs (1) and (3) through (6) of section 221(a) of the 

U.S.-FSM Compact and paragraphs (1) and (3) through (5) of section 221(a) of the 

U.S.-RMI Compact, such sums as are necessary to carry out the purposes of sections 

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

until expended. 

19

SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC OF PALAU EMPLOYED BY 

THE GOVERNMENT OF THE UNITED STATES IN THE CONTINENTAL UNITED 

STATES. 

Section 605 of Public Law 107–67 (the Treasury and General Government Appropriations Act, 2002; 5 U.S.C. 3101 note) is amended by striking ‘‘or the Republic of 

the Philippines,’’ in the last sentence and inserting the following: ‘‘the Republic of 

the Philippines, the Federated States of Micronesia, the Republic of the Marshall 

Islands, or the Republic of Palau,’’.

TITLE II—COMPACTS OF FREE ASSOCIATION 

WITH THE FEDERATED STATES OF MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS 

SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED BETWEEN THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE FEDERATED 

STATES OF MICRONESIA AND BETWEEN THE GOVERNMENT OF THE UNITED 

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

(a) COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN THE GOVERNMENT OF

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

OF MICRONESIA.—

PREAMBLE 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 

GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA 

Affirming that their Governments and their relationship as Governments are 

founded upon respect for human rights and fundamental freedoms for all, and that 

the people of the Federated States of Micronesia have the right to enjoy self-government; and 

Affirming the common interests of the United States of America and the Federated States of Micronesia in creating and maintaining their close and mutually 

beneficial relationship through the free and voluntary association of their respective 

Governments; and 

Affirming the interest of the Government of the United States in promoting the 

economic advancement and budgetary self-reliance of the Federated States of Micronesia; and 

Recognizing that their relationship until the entry into force on November 3, 1986 

of the Compact was based upon the International Trusteeship System of the United 

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

Article 76 of the Charter, the people of the Federated States of Micronesia have progressively developed their institutions of self-government, and that in the exercise 

of their sovereign right to self-determination they, through their freely-expressed 

wishes, have adopted a Constitution appropriate to their particular circumstances; 

and 

Recognizing that the Compact reflected their common desire to terminate the 

Trusteeship and establish a government-to-government relationship which was in 

accordance with the new political status based on the freely expressed wishes of the 

people of the Federated States of Micronesia and appropriate to their particular circumstances; and 

Recognizing that the people of the Federated States of Micronesia have and retain 

their sovereignty and their sovereign right to self-determination and the inherent 

right to adopt and amend their own Constitution and form of government and that 

the approval of the entry of the Government of the Federated States of Micronesia 

into the Compact by the people of the Federated States of Micronesia constituted 

an exercise of their sovereign right to self-determination; and 

Recognizing the common desire of the people of the United States and the people 

of the Federated States of Micronesia to maintain their close government-to-government relationship, the United States and the Federated States of Micronesia: 

NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen their relationship of free association by amending the Compact, which continues to provide 

a full measure of self-government for the people of the Federated States of Micronesia; and 

20

FURTHER AGREE that the relationship of free association derives from and is 

as set forth in this Compact, as amended, by the Governments of the United States 

and the Federated States of Micronesia; and that, during such relationship of free 

association, the respective rights and responsibilities of the Government of the 

United States and the Government of the Federated States of Micronesia in regard 

to this relationship of free association derive from and are as set forth in this Compact, as amended. 

TITLE ONE 

GOVERNMENTAL RELATIONS 

Article I 

Self-Government 

Section 111

The people of the Federated States of Micronesia, acting through the Government 

established under their Constitution, are self-governing. 

Article II 

Foreign Affairs 

Section 121

(a) The Government of the Federated States of Micronesia has the capacity to conduct foreign affairs and shall do so in its own name and right, except as otherwise 

provided in this Compact, as amended. 

(b) The foreign affairs capacity of the Government of the Federated States of Micronesia includes: 

(1) the conduct of foreign affairs relating to law of the sea and marine resources matters, including the harvesting, conservation, exploration or exploitation of living and non-living resources from the sea, seabed or subsoil to the 

full extent recognized under international law; 

(2) the conduct of its commercial, diplomatic, consular, economic, trade, banking, postal, civil aviation, communications, and cultural relations, including negotiations for the receipt of developmental loans and grants and the conclusion 

of arrangements with other governments and international and intergovernmental organizations, including any matters specially benefiting its individual 

citizens. 

(c) The Government of the United States recognizes that the Government of the 

Federated States of Micronesia has the capacity to enter into, in its own name and 

right, treaties and other international agreements with governments and regional 

and international organizations. 

(d) In the conduct of its foreign affairs, the Government of the Federated States 

of Micronesia confirms that it shall act in accordance with principles of international law and shall settle its international disputes by peaceful means. 

Section 122

The Government of the United States shall support applications by the Government of the Federated States of Micronesia for membership or other participation 

in regional or international organizations as may be mutually agreed. 

Section 123

(a) In recognition of the authority and responsibility of the Government of the 

United States under Title Three, the Government of the Federated States of Micronesia shall consult, in the conduct of its foreign affairs, with the Government of the 

United States. 

(b) In recognition of the foreign affairs capacity of the Government of the Federated States of Micronesia, the Government of the United States, in the conduct 

of its foreign affairs, shall consult with the Government of the Federated States of 

Micronesia on matters that the Government of the United States regards as relating 

to or affecting the Government of the Federated States of Micronesia. 

Section 124

The Government of the United States may assist or act on behalf of the Government of the Federated States of Micronesia in the area of foreign affairs as may 

be requested and mutually agreed from time to time.The Government of the United 

States shall not be responsible to third parties for the actions of the Government 

of the Federated States of Micronesia undertaken with the assistance or through the 

agency of the Government of the United States pursuant to this section unless expressly agreed. 

Section 125

21

The Government of the United States shall not be responsible for nor obligated 

by any actions taken by the Government of the Federated States of Micronesia in 

the area of foreign affairs, except as may from time to time be expressly agreed. 

Section 126

At the request of the Government of the Federated States of Micronesia and subject to the consent of the receiving state, the Government of the United States shall 

extend consular assistance on the same basis as for citizens of the United States 

to citizens of the Federated States of Micronesia for travel outside the Federated 

States of Micronesia, the United States and its territories and possessions. 

Section 127

Except as otherwise provided in this Compact, as amended, or its related agreements, all obligations, responsibilities, rights and benefits of the Government of the 

United States as Administering Authority which resulted from the application pursuant to the Trusteeship Agreement of any treaty or other international agreement 

to the Trust Territory of the Pacific Islands on November 2, 1986, are, as of that 

date, no longer assumed and enjoyed by the Government of the United States. 

Article III 

Communications 

Section 131

(a) The Government of the Federated States of Micronesia has full authority and 

responsibility to regulate its domestic and foreign communications, and the Government of the United States shall provide communications assistance as mutually 

agreed. 

(b) On May 24, 1993, the Government of the Federated States of Micronesia elected to undertake all functions previously performed by the Government of the United 

States with respect to domestic and foreign communications, except for those functions set forth in a separate agreement entered into pursuant to this section of the 

Compact, as amended. 

Section 132

The Government of the Federated States of Micronesia shall permit the Government of the United States to operate telecommunications services in the Federated 

States of Micronesia to the extent necessary to fulfill the obligations of the Government of the United States under this Compact, as amended, in accordance with the 

terms of separate agreements entered into pursuant to this section of the Compact, 

as amended. 

Article IV 

Immigration 

Section 141

(a) In furtherance of the special and unique relationship that exists between the 

United States and the Federated States of Micronesia, under the Compact, as 

amended, any person in the following categories may be admitted to, lawfully engage in occupations, and establish residence as a nonimmigrant in the United States 

and its territories and possessions (the ‘‘United States’’) without regard to paragraph (5) or (7)(B)(i)(II) of section 212(a) of the Immigration and Nationality Act, 

as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II): 

(1) a person who, on November 2, 1986, was a citizen of the Trust Territory 

of the Pacific Islands, as defined in Title 53 of the Trust Territory Code in force 

on January 1, 1979, and has become and remains a citizen of the Federated 

States of Micronesia; 

(2) a person who acquires the citizenship of the Federated States of Micronesia at birth, on or after the effective date of the Constitution of the Federated 

States of Micronesia; 

(3) an immediate relative of a person referred to in paragraphs (1) or (2) of 

this section, provided that such immediate relative is a naturalized citizen of 

the Federated States of Micronesia who has been an actual resident there for 

not less than five years after attaining such naturalization and who holds a certificate of actual residence, and further provided, that, in the case of a spouse, 

such spouse has been married to the person referred to in paragraph (1) or (2) 

of this section for at least five years, and further provided, that the Government 

of the United States is satisfied that such naturalized citizen meets the requirement of subsection (b) of section 104 of Public Law 99–239 as it was in effect 

on the day prior to the effective date of this Compact, as amended; 

(4) a naturalized citizen of the Federated States of Micronesia who was an 

actual resident there for not less than five years after attaining such naturalizaVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00021 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
22

tion and who satisfied these requirements as of April 30, 2003, who continues 

to be an actual resident and holds a certificate of actual residence, and whose 

name is included in a list furnished by the Government of the Federated States 

of Micronesia to the Government of the United States no later than the effective 

date of the Compact, as amended, in form and content acceptable to the Government of the United States, provided, that the Government of the United States 

is satisfied that such naturalized citizen meets the requirement of subsection 

(b) of section 104 of Public Law 99–239 as it was in effect on the day prior to 

the effective date of this Compact, as amended; or 

(5) an immediate relative of a citizen of the Federated States of Micronesia, 

regardless of the immediate relative’s country of citizenship or period of residence in the Federated States of Micronesia, if the citizen of the Federated 

States of Micronesia is serving on active duty in any branch of the United 

States Armed Forces, or in the active reserves. 

(b) Notwithstanding subsection (a) of this section, a person who is coming to the 

United States pursuant to an adoption outside the United States, or for the purpose 

of adoption in the United States, is ineligible for admission under the Compact and 

the Compact, as amended. This subsection shall apply to any person who is or was 

an applicant for admission to the United States on or after March 1, 2003, including 

any applicant for admission in removal proceedings (including appellate proceedings) on or after March 1, 2003, regardless of the date such proceedings were 

commenced. This subsection shall have no effect on the ability of the Government 

of the United States or any United States State or local government to commence 

or otherwise take any action against any person or entity who has violated any law 

relating to the adoption of any person. 

(c) Notwithstanding subsection (a) of this section, no person who has been or is 

granted citizenship in the Federated States of Micronesia, or has been or is issued 

a Federated States of Micronesia passport pursuant to any investment, passport 

sale, or similar program has been or shall be eligible for admission to the United 

States under the Compact or the Compact, as amended. 

(d) A person admitted to the United States under the Compact, or the Compact, 

as amended, shall be considered to have the permission of the Government of the 

United States to accept employment in the United States. An unexpired Federated 

States of Micronesia passport with unexpired documentation issued by the Government of the United States evidencing admission under the Compact or the Compact, 

as amended, shall be considered to be documentation establishing identity and employment authorization under section 274A(b)(1)(B) of the Immigration and Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The Government of the United 

States will take reasonable and appropriate steps to implement and publicize this 

provision, and the Government of the Federated States of Micronesia will also take 

reasonable and appropriate steps to publicize this provision. 

(e) For purposes of the Compact and the Compact, as amended: 

(1) the term ‘‘residence’’ with respect to a person means the person’s principal, 

actual dwelling place in fact, without regard to intent, as provided in section 

101(a)(33) of the Immigration and Nationality Act, as amended, 8 U.S.C. 

1101(a)(33), and variations of the term ‘‘residence,’’ including ‘‘resident’’ and ‘‘reside,’’ shall be similarly construed; 

(2) the term ‘‘actual residence’’ means physical presence in the Federated 

States of Micronesia during eighty-five percent of the five-year period of residency required by section 141(a)(3) and (4); 

(3) the term ‘‘certificate of actual residence’’ means a certificate issued to a 

naturalized citizen by the Government of the Federated States of Micronesia 

stating that the citizen has complied with the actual residence requirement of 

section 141(a)(3) or (4); 

(4) the term ‘‘nonimmigrant’’ means an alien who is not an ‘‘immigrant’’ as 

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

(5) the term ‘‘immediate relative’’ means a spouse, or unmarried son or unmarried daughter less than 21 years of age. 

(f) The Immigration and Nationality Act, as amended, shall apply to any person 

admitted or seeking admission to the United States (other than a United States possession or territory where such Act does not apply) under the Compact or the Compact, as amended, and nothing in the Compact or the Compact, as amended, shall 

be construed to limit, preclude, or modify the applicability of, with respect to such 

person: 

(1) any ground of inadmissibility or deportability under such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of such Act, as provided in subsection (a) 

of this section), and any defense thereto, provided that, section 237(a)(5) of such 

Act shall be construed and applied as if it reads as follows: ‘‘any alien who has 

been admitted under the Compact, or the Compact, as amended, who cannot 

23

show that he or she has sufficient means of support in the United States, is 

deportable’’; 

(2) the authority of the Government of the United States under section 

214(a)(1) of such Act to provide that admission as a nonimmigrant shall be for 

such time and under such conditions as the Government of the United States 

may by regulations prescribe; 

(3) Except for the treatment of certain documentation for purposes of section 

274A(b)(1)(B) of such Act as provided by subsection (d) of this section of the 

Compact, as amended, any requirement under section 274A, including but not 

limited to section 274A(b)(1)(E); 

(4) Section 643 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, Public Law 104–208, and actions taken pursuant to section 

643; and 

(5) the authority of the Government of the United States otherwise to administer and enforce the Immigration and Nationality Act, as amended, or other 

United States law. 

(g) Any authority possessed by the Government of the United States under this 

section of the Compact or the Compact, as amended, may also be exercised by the 

Government of a territory or possession of the United States where the Immigration 

and Nationality Act, as amended, does not apply, to the extent such exercise of authority is lawful under a statute or regulation of such territory or possession that 

is authorized by the laws of the United States. 

(h) Subsection (a) of this section does not confer on a citizen of the Federated 

States of Micronesia the right to establish the residence necessary for naturalization 

under the Immigration and Nationality Act, as amended, or to petition for benefits 

for alien relatives under that Act. Subsection (a) of this section, however, shall not 

prevent a citizen of the Federated States of Micronesia from otherwise acquiring 

such rights or lawful permanent resident alien status in the United States. 

Section 142

(a) Any citizen or national of the United States may be admitted, to lawfully engage in occupations, and reside in the Federated States of Micronesia, subject to the 

rights of the Government of the Federated States of Micronesia to deny entry to or 

deport any such citizen or national as an undesirable alien. Any determination of 

inadmissibility or deportability shall be based on reasonable statutory grounds and 

shall be subject to appropriate administrative and judicial review within the Federated States of Micronesia. If a citizen or national of the United States is a spouse 

of a citizen of the Federated States of Micronesia, the Government of the Federated 

States of Micronesia shall allow the United States citizen spouse to establish residence. Should the Federated States of Micronesia citizen spouse predecease the 

United States citizen spouse during the marriage, the Government of the Federated 

States of Micronesia shall allow the United States citizen spouse to continue to reside in the Federated States of Micronesia. 

(b) In enacting any laws or imposing any requirements with respect to citizens 

and nationals of the United States entering the Federated States of Micronesia 

under subsection (a) of this section, including any grounds of inadmissibility or deportability, the Government of the Federated States of Micronesia shall accord to 

such citizens and nationals of the United States treatment no less favorable than 

that accorded to citizens of other countries. 

(c) Consistent with subsection (a) of this section, with respect to citizens and nationals of the United States seeking to engage in employment or invest in the Federated States of Micronesia, the Government of the Federated States of Micronesia 

shall adopt immigration-related procedures no less favorable than those adopted by 

the Government of the United States with respect to citizens of the Federated 

States of Micronesia seeking employment in the United States. 

Section 143

Any person who relinquishes, or otherwise loses, his United States nationality or 

citizenship, or his Federated States of Micronesia citizenship, shall be ineligible to 

receive the privileges set forth in sections 141 and 142. Any such person may apply 

for admission to the United States or the Federated States of Micronesia, as the 

case may be, in accordance with any other applicable laws of the United States or 

the Federated States of Micronesia relating to immigration of aliens from other 

countries. The laws of the Federated States of Micronesia or the United States, as 

the case may be, shall dictate the terms and conditions of any such person’s stay. 

Article V 

Representation 

Section 151

24

Relations between the Government of the United States and the Government of 

the Federated States of Micronesia shall be conducted in accordance with the Vienna Convention on Diplomatic Relations. In addition to diplomatic missions and 

representation, the Governments may establish and maintain other offices and designate other representatives on terms and in locations as may be mutually agreed. 

Section 152

(a) Any citizen or national of the United States who, without authority of the 

United States, acts as the agent of the Government of the Federated States of Micronesia with regard to matters specified in the provisions of the Foreign Agents 

Registration Act of 1938, as amended (22 U.S.C. 611 et seq.), that apply with respect to an agent of a foreign principal shall be subject to the requirements of such 

Act. Failure to comply with such requirements shall subject such citizen or national 

to the same penalties and provisions of law as apply in the case of the failure of 

such an agent of a foreign principal to comply with such requirements. For purposes 

of the Foreign Agents Registration Act of 1938, the Federated States of Micronesia 

shall be considered to be a foreign country. 

(b) Subsection (a) of this section shall not apply to a citizen or national of the 

United States employed by the Government of the Federated States of Micronesia 

with respect to whom the Government of the Federated States of Micronesia from 

time to time certifies to the Government of the United States that such citizen or 

national is an employee of the Federated States of Micronesia whose principal duties are other than those matters specified in the Foreign Agents Registration Act 

of 1938, as amended, that apply with respect to an agent of a foreign principal. The 

agency or officer of the United States receiving such certifications shall cause them 

to be filed with the Attorney General, who shall maintain a publicly available list 

of the persons so certified. 

Article VI 

Environmental Protection 

Section 161

The Governments of the United States and the Federated States of Micronesia declare that it is their policy to promote efforts to prevent or eliminate damage to the 

environment and biosphere and to enrich understanding of the natural resources of 

the Federated States of Micronesia. In order to carry out this policy, the Government of the United States and the Government of the Federated States of Micronesia agree to the following mutual and reciprocal undertakings. 

(a) The Government of the United States: 

(1) shall continue to apply the environmental controls in effect on November 

2, 1986 to those of its continuing activities subject to section 161(a)(2), unless 

and until those controls are modified under sections 161(a)(3) and 161(a)(4); 

(2) shall apply the National Environmental Policy Act of 1969, 83 Stat. 852, 

42 U.S.C. 4321 et seq., to its activities under the Compact, as amended, and 

its related agreements as if the Federated States of Micronesia were the United 

States; 

(3) shall comply also, in the conduct of any activity requiring the preparation 

of an Environmental Impact Statement under section 161(a)(2), with standards 

substantively similar to those required by the following laws of the United 

States, taking into account the particular environment of the Federated States 

of Micronesia: the Endangered Species Act of 1973, as amended, 87 Stat. 884, 

16 U.S.C. 1531 et seq.; the Clean Air Act, as amended, 77 Stat. 392, 42 U.S.C. 

Supp. 7401 et seq.; the Clean Water Act (Federal Water Pollution Control Act), 

as amended, 86 Stat. 896, 33 U.S.C. 1251 et seq.; Title I of the Marine Protection, Research and Sanctuaries Act of 1972 (the Ocean Dumping Act), 33 U.S.C. 

1411 et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. 2601 et 

seq.; the Solid Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and 

such other environmental protection laws of the United States and of the Federated States of Micronesia, as may be mutually agreed from time to time with 

the Government of the Federated States of Micronesia; and 

(4) shall develop, prior to conducting any activity requiring the preparation 

of an Environmental Impact Statement under section 161(a)(2), written standards and procedures, as agreed with the Government of the Federated States 

of Micronesia, to implement the substantive provisions of the laws made applicable to U.S. Government activities in the Federated States of Micronesia, pursuant to section 161(a)(3). 

(b) The Government of the Federated States of Micronesia shall continue to develop and implement standards and procedures to protect its environment. As a reciprocal obligation to the undertakings of the Government of the United States 

25

under this Article, the Federated States of Micronesia, taking into account its particular environment, shall continue to develop and implement standards for environmental protection substantively similar to those required of the Government of the 

United States by section 161(a)(3) prior to its conducting activities in the Federated 

States of Micronesia, substantively equivalent to activities conducted there by the 

Government of the United States and, as a further reciprocal obligation, shall enforce those standards. 

(c) Section 161(a), including any standard or procedure applicable thereunder, and 

section 161(b) may be modified or superseded in whole or in part by agreement of 

the Government of the United States and the Government of the Federated States 

of Micronesia. 

(d) In the event that an Environmental Impact Statement is no longer required 

under the laws of the United States for major Federal actions significantly affecting 

the quality of the human environment, the regulatory regime established under sections 161(a)(3) and 161(a)(4) shall continue to apply to such activities of the Government of the United States until amended by mutual agreement. 

(e) The President of the United States may exempt any of the activities of the 

Government of the United States under this Compact, as amended, and its related 

agreements from any environmental standard or procedure which may be applicable 

under sections 161(a)(3) and 161(a)(4) if the President determines it to be in the 

paramount interest of the Government of the United States to do so, consistent with 

Title Three of this Compact, as amended, and the obligations of the Government of 

the United States under international law. Prior to any decision pursuant to this 

subsection, the views of the Government of the Federated States of Micronesia shall 

be sought and considered to the extent practicable. If the President grants such an 

exemption, to the extent practicable, a report with his reasons for granting such exemption shall be given promptly to the Government of the Federated States of Micronesia. 

(f) The laws of the United States referred to in section 161(a)(3) shall apply to 

the activities of the Government of the United States under this Compact, as 

amended, and its related agreements only to the extent provided for in this section. 

Section 162

The Government of the Federated States of Micronesia may bring an action for 

judicial review of any administrative agency action or any activity of the Government of the United States pursuant to section 161(a) for enforcement of the obligations of the Government of the United States arising thereunder. The United States 

District Court for the District of Hawaii and the United States District Court for 

the District of Columbia shall have jurisdiction over such action or activity, and over 

actions brought under section 172(b) which relate to the activities of the Government of the United States and its officers and employees, governed by section 161, 

provided that: 

(a) Such actions may only be civil actions for any appropriate civil relief other 

than punitive damages against the Government of the United States or, where 

required by law, its officers in their official capacity; no criminal actions may 

arise under this section. 

(b) Actions brought pursuant to this section may be initiated only by the Government of the Federated States of Micronesia. 

(c) Administrative agency actions arising under section 161 shall be reviewed 

pursuant to the standard of judicial review set forth in 5 U.S.C. 706. 

(d) The United States District Court for the District of Hawaii and the United 

States District Court for the District of Columbia shall have jurisdiction to issue 

all necessary processes, and the Government of the United States agrees to submit itself to the jurisdiction of the court; decisions of the United States District 

Court shall be reviewable in the United States Court of Appeals for the Ninth 

Circuit or the United States Court of Appeals for the District of Columbia, respectively, or in the United States Supreme Court as provided by the laws of 

the United States. 

(e) The judicial remedy provided for in this section shall be the exclusive remedy for the judicial review or enforcement of the obligations of the Government 

of the United States under this Article and actions brought under section 172(b) 

which relate to the activities of the Government of the United States and its 

officers and employees governed by section 161. 

(f) In actions pursuant to this section, the Government of the Federated 

States of Micronesia shall be treated as if it were a United States citizen. 

Section 163

(a) For the purpose of gathering data necessary to study the environmental effects 

of activities of the Government of the United States subject to the requirements of 

this Article, the Government of the Federated States of Micronesia shall be granted 

access to facilities operated by the Government of the United States in the FedVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00025 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
26

erated States of Micronesia, to the extent necessary for this purpose, except to the 

extent such access would unreasonably interfere with the exercise of the authority 

and responsibility of the Government of the United States under Title Three. 

(b) The Government of the United States, in turn, shall be granted access to the 

Federated States of Micronesia for the purpose of gathering data necessary to discharge its obligations under this Article, except to the extent such access would unreasonably interfere with the exercise of the authority and responsibility of the Government of the Federated States of Micronesia under Title One, and to the extent 

necessary for this purpose shall be granted access to documents and other information to the same extent similar access is provided the Government of the Federated 

States of Micronesia under the Freedom of Information Act, 5 U.S.C. 552. 

(c) The Government of the Federated States of Micronesia shall not impede efforts 

by the Government of the United States to comply with applicable standards and 

procedures. 

Article VII 

General Legal Provisions 

Section 171

Except as provided in this Compact, as amended, or its related agreements, the 

application of the laws of the United States to the Trust Territory of the Pacific Islands by virtue of the Trusteeship Agreement ceased with respect to the Federated 

States of Micronesia on November 3, 1986, the date the Compact went into effect. 

Section 172

(a) Every citizen of the Federated States of Micronesia who is not a resident of 

the United States shall enjoy the rights and remedies under the laws of the United 

States enjoyed by any non-resident alien. 

(b) The Government of the Federated States of Micronesia and every citizen of the 

Federated States of Micronesia shall be considered to be a ‘‘person’’ within the 

meaning of the Freedom of Information Act, 5 U.S.C. 552, and of the judicial review 

provisions of the Administrative Procedure Act, 5 U.S.C. 701–706, except that only 

the Government of the Federated States of Micronesia may seek judicial review 

under the Administrative Procedure Act or judicial enforcement under the Freedom 

of Information Act when such judicial review or enforcement relates to the activities 

of the Government of the United States governed by sections 161 and 162. 

Section 173

The Governments of the United States and the Federated States of Micronesia 

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

Government of the Federated States of Micronesia in the United States pursuant 

to this Compact, as amended, and its related agreements. 

Section 174

Except as otherwise provided in this Compact, as amended, and its related agreements: 

(a) The Government of the Federated States of Micronesia, and its agencies 

and officials, shall be immune from the jurisdiction of the courts of the United 

States, and the Government of the United States, and its agencies and officials, 

shall be immune from the jurisdiction of the courts of the Federated States of 

Micronesia. 

(b) The Government of the United States accepts responsibility for and shall 

pay: 

(1) any unpaid money judgment rendered by the High Court of the Trust 

Territory of the Pacific Islands against the Government of the United 

States with regard to any cause of action arising as a result of acts or omissions of the Government of the Trust Territory of the Pacific Islands or the 

Government of the United States prior to November 3, 1986; 

(2) any claim settled by the claimant and the Government of the Trust 

Territory of the Pacific Islands but not paid as of the November 3, 1986; 

and 

(3) settlement of any administrative claim or of any action before a court 

of the Trust Territory of the Pacific Islands or the Government of the 

United States, arising as a result of acts or omissions of the Government 

of the Trust Territory of the Pacific Islands or the Government of the 

United States. 

27

(c) Any claim not referred to in section 174(b) and arising from an act or omission of the Government of the Trust Territory of the Pacific Islands or the Government of the United States prior to the effective date of the Compact shall 

be adjudicated in the same manner as a claim adjudicated according to section 

174(d). In any claim against the Government of the Trust Territory of the Pacific Islands, the Government of the United States shall stand in the place of 

the Government of the Trust Territory of the Pacific Islands. A judgment on any 

claim referred to in section 174(b) or this subsection, not otherwise satisfied by 

the Government of the United States, may be presented for certification to the 

United States Court of Appeals for the Federal Circuit, or its successor courts, 

which shall have jurisdiction therefore, notwithstanding the provisions of 28 

U.S.C. 1502, and which court’s decisions shall be reviewable as provided by the 

laws of the United States. The United States Court of Appeals for the Federal 

Circuit shall certify such judgment, and order payment thereof, unless it finds, 

after a hearing, that such judgment is manifestly erroneous as to law or fact, 

or manifestly excessive. In either of such cases the United States Court of Appeals for the Federal Circuit shall have jurisdiction to modify such judgment. 

(d) The Government of the Federated States of Micronesia shall not be immune from the jurisdiction of the courts of the United States, and the Government of the United States shall not be immune from the jurisdiction of the 

courts of the Federated States of Micronesia in any civil case in which an exception to foreign state immunity is set forth in the Foreign Sovereign Immunities 

Act (28 U.S.C. 1602 et seq.) or its successor statutes. 

Section 175

(a) A separate agreement, which shall come into effect simultaneously with this 

Compact, as amended, and shall have the force of law, shall govern mutual assistance and cooperation in law enforcement matters, including the pursuit, capture, 

imprisonment and extradition of fugitives from justice and the transfer of prisoners, 

as well as other law enforcement matters. In the United States, the laws of the 

United States governing international extradition, including 18 U.S.C. 3184, 3186 

and 3188–95, shall be applicable to the extradition of fugitives under the separate 

agreement, and the laws of the United States governing the transfer of prisoners, 

including 18 U.S.C. 4100–15, shall be applicable to the transfer of prisoners under 

the separate agreement; and 

(b) A separate agreement, which shall come into effect simultaneously with this 

Compact, as amended, and shall have the force of law, shall govern requirements 

relating to labor recruitment practices, including registration, reporting, suspension 

or revocation of authorization to recruit persons for employment in the United 

States, and enforcement for violations of such requirements. 

Section 176

The Government of the Federated States of Micronesia confirms that final judgments in civil cases rendered by any court of the Trust Territory of the Pacific Islands shall continue in full force and effect, subject to the constitutional power of 

the courts of the Federated States of Micronesia to grant relief from judgments in 

appropriate cases. 

Section 177

Section 177 of the Compact entered into force with respect to the Federated States 

of Micronesia on November 3, 1986 as follows: 

‘‘(a) The Government of the United States accepts the responsibility for compensation owing to citizens of the Marshall Islands, or the Federated States of 

Micronesia, or Palau for loss or damage to property and person of the citizens 

of the Marshall Islands, or the Federated States of Micronesia, resulting from 

the nuclear testing program which the Government of the United States conducted in the Northern Marshall Islands between June 30, 1946, and August 

18, 1958. 

‘‘(b) The Government of the United States and the Government of the Marshall Islands shall set forth in a separate agreement provisions for the just and 

adequate settlement of all such claims which have arisen in regard to the Marshall Islands and its citizens and which have not as yet been compensated or 

which in the future may arise, for the continued administration by the Government of the United States of direct radiation related medical surveillance and 

treatment programs and radiological monitoring activities and for such additional programs and activities as may be mutually agreed, and for the assumption by the Government of the Marshall Islands of responsibility for enforcement of limitations on the utilization of affected areas developed in cooperation 

with the Government of the United States and for the assistance by the Government of the United States in the exercise of such responsibility as may be mutually agreed. This separate agreement shall come into effect simultaneously with 

this Compact and shall remain in effect in accordance with its own terms. 

28

‘‘(c) The Government of the United States shall provide to the Government 

of the Marshall Islands, on a grant basis, the amount of $150 million to be paid 

and distributed in accordance with the separate agreement referred to in this 

Section, and shall provide the services and programs set forth in this separate 

agreement, the language of which is incorporated into this Compact.’’

The Compact, as amended, makes no changes to, and has no effect upon, Section 

177 of the Compact, nor does the Compact, as amended, change or affect the separate agreement referred to in Section 177 of the Compact including Articles IX and 

X of that separate agreement, and measures taken by the parties thereunder. 

Section 178

(a) The Federal agencies of the Government of the United States that provide the 

services and related programs in the Federated States of Micronesia pursuant to 

Title Two are authorized to settle and pay tort claims arising in the Federated 

States of Micronesia from the activities of such agencies or from the acts or omissions of the employees of such agencies. Except as provided in section 178(b), the 

provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply exclusively to such administrative settlements and payments. 

(b) Claims under section 178(a) that cannot be settled under section 178(a) shall 

be disposed of exclusively in accordance with Article II of Title Four. Arbitration 

awards rendered pursuant to this subsection shall be paid out of funds under 31 

U.S.C. 1304. 

(c) The Government of the United States and the Government of the Federated 

States of Micronesia shall, in the separate agreement referred to in section 231, provide for: 

(1) the administrative settlement of claims referred to in section 178(a), including designation of local agents in each State of the Federated States of Micronesia; such agents to be empowered to accept, investigate and settle such 

claims, in a timely manner, as provided in such separate agreements; and 

(2) arbitration, referred to in section 178(b), in a timely manner, at a site convenient to the claimant, in the event a claim is not otherwise settled pursuant 

to section 178(a). 

(d) The provisions of section 174(d) shall not apply to claims covered by this section. 

(e) Except as otherwise explicitly provided by law of the United States, neither 

the Government of the United States, its instrumentalities, nor any person acting 

on behalf of the Government of the United States, shall be named a party in any 

action based on, or arising out of, the activity or activities of a recipient of any grant 

or other assistance provided by the Government of the United States (or the activity 

or activities of the recipient’s agency or any other person or entity acting on behalf 

of the recipient). 

Section 179

(a) The courts of the Federated States of Micronesia shall not exercise criminal 

jurisdiction over the Government of the United States, or its instrumentalities. 

(b) The courts of the Federated States of Micronesia shall not exercise criminal 

jurisdiction over any person if the Government of the United States provides notification to the Government of the Federated States of Micronesia that such person 

was acting on behalf of the Government of the United States, for actions taken in 

furtherance of section 221 or 224 of this amended Compact, or any other provision 

of law authorizing financial, program, or service assistance to the Federated States 

of Micronesia. 

TITLE TWO 

ECONOMIC RELATIONS 

Article I 

Grant Assistance 

Section 211—Sector Grants 

(a) In order to assist the Government of the Federated States of Micronesia in its 

efforts to promote the economic advancement, budgetary self-reliance, and economic 

self-sufficiency of its people, and in recognition of the special relationship that exists 

between the Federated States of Micronesia and the United States, the Government 

of the United States shall provide assistance on a sector grant basis for a period 

of twenty years in the amounts set forth in section 216, commencing on the effective 

date of this Compact, as amended. Such grants shall be used for assistance in the 

sectors of education, health care, private sector development, the environment, public sector capacity building, and public infrastructure, or for other sectors as mutuVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00028 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
29

ally agreed, with priorities in the education and health care sectors. For each year 

such sector grant assistance is made available, the proposed division of this amount 

among these sectors shall be certified to the Government of the United States by 

the Government of the Federated States of Micronesia and shall be subject to the 

concurrence of the Government of the United States. In such case, the Government 

of the United States shall disburse the agreed upon amounts and monitor the use 

of such sector grants in accordance with the provisions of this Article and the Agreement Concerning Procedures for the Implementation of United States Economic Assistance Provided in the Compact, as Amended, of Free Association Between the 

Government of the United States of America and the Government of the Federated 

States of Micronesia (‘‘Fiscal Procedures Agreement’’) which shall come into effect 

simultaneously with this Compact, as amended. The provision of any United States 

assistance under the Compact, as amended, the Fiscal Procedures Agreement, the 

Trust Fund Agreement, or any other subsidiary agreement to the Compact, as 

amended, shall constitute ‘‘a particular distribution . . . required by the terms or 

special nature of the assistance’’ for purposes of Article XII, section 1(b) of the Constitution of the Federated States of Micronesia.

(1) EDUCATION.—United States grant assistance shall be made available in 

accordance with the plan described in subsection (c) of this section to support 

and improve the educational system of the Federated States of Micronesia and 

develop the human, financial, and material resources necessary for the Government of the Federated States of Micronesia to perform these services. Emphasis 

should be placed on advancing a quality basic education system. 

(2) HEALTH.—United States grant assistance shall be made available in accordance with the plan described in subsection (c) of this section to support and 

improve the delivery of preventive, curative and environmental care and develop the human, financial, and material resources necessary for the Government of the Federated States of Micronesia to perform these services. 

(3) PRIVATE SECTOR DEVELOPMENT.—United States grant assistance shall be 

made available in accordance with the plan described in subsection (c) of this 

section to support the efforts of the Government of the Federated States of Micronesia to attract foreign investment and increase indigenous business activity 

by vitalizing the commercial environment, ensuring fair and equitable application of the law, promoting adherence to core labor standards, and maintaining 

progress toward privatization of state-owned and partially state-owned enterprises, and engaging in other reforms. 

(4) CAPACITY BUILDING IN THE PUBLIC SECTOR.—United States grant assistance shall be made available in accordance with the plan described in subsection (c) of this section to support the efforts of the Government of the Federated States of Micronesia to build effective, accountable and transparent national, state, and local government and other public sector institutions and systems. 

(5) ENVIRONMENT.—United States grant assistance shall be made available in 

accordance with the plan described in subsection (c) of this section to increase 

environmental protection; conserve and achieve sustainable use of natural resources; and engage in environmental infrastructure planning, design construction and operation. 

(6) PUBLIC INFRASTRUCTURE.—

(i) U.S. annual grant assistance shall be made available in accordance 

with a list of specific projects included in the plan described in subsection 

(c) of this section to assist the Government of the Federated States of Micronesia in its efforts to provide adequate public infrastructure. 

(ii) INFRASTRUCTURE AND MAINTENANCE FUND.—Five percent of the annual public infrastructure grant made available under paragraph (i) of this 

subsection shall be set aside, with an equal contribution from the Government of the Federated States of Micronesia, as a contribution to an Infrastructure Maintenance Fund (IMF). Administration of the Infrastructure 

Maintenance Fund shall be governed by the Fiscal Procedures Agreement. 

(b) HUMANITARIAN ASSISTANCE.—Federated States of Micronesia Program. In recognition of the special development needs of the Federated States of Micronesia, the 

Government of the United States shall make available to the Government of the 

Federated States of Micronesia, on its request and to be deducted from the grant 

amount made available under subsection (a) of this section, a Humanitarian Assistance - Federated States of Micronesia (‘‘HAFSM’’) Program with emphasis on 

health, education, and infrastructure (including transportation), projects. The terms 

and conditions of the HAFSM shall be set forth in the Agreement Regarding the 

Military Use and Operating Rights of the Government of the United States in the 

Government of the Federated States of Micronesia Concluded Pursuant to Sections 

30

321 and 323 of the Compact of Free Association, as Amended which shall come into 

effect simultaneously with the amendments to this Compact. 

(c) DEVELOPMENT PLAN.—The Government of the Federated States of Micronesia 

shall prepare and maintain an official overall development plan. The plan shall be 

strategic in nature, shall be continuously reviewed and updated through the annual 

budget process, and shall make projections on a multi-year rolling basis. Each of the 

sectors named in subsection (a) of this section, or other sectors as mutually agreed, 

shall be accorded specific treatment in the plan. Insofar as grants funds are involved, the plan shall be subject to the concurrence of the Government of the United 

States. 

(d) DISASTER ASSISTANCE EMERGENCY FUND.—An amount of two hundred thousand dollars ($200,000) shall be provided annually, with an equal contribution from 

the Government of the Federated States of Micronesia, as a contribution to a ‘‘Disaster Assistance Emergency Fund (DAEF).’’ Any funds from the DAEF may be used 

only for assistance and rehabilitation resulting from disasters and emergencies. The 

funds will be accessed upon declaration by the Government of the Federated States 

of Micronesia, with the concurrence of the United States Chief of Mission to the 

Federated States of Micronesia. The Administration of the DAEF shall be governed 

by the Fiscal Procedures Agreement. 

Section 212 - Accountability. 

(a) Regulations and policies normally applicable to United States financial assistance to its state and local governments, as reflected in the Fiscal Procedures Agreement, shall apply to each sector grant described in section 211, and to grants administered under section 221 below, except as modified in the separate agreements referred to in section 231 of this Compact, as amended, or by United States law. The 

Government of the United States, after annual consultations with the Federated 

States of Micronesia, may attach reasonable terms and conditions, including annual 

performance indicators that are necessary to ensure effective use of United States 

assistance and reasonable progress toward achieving program objectives. The Government of the United States may seek appropriate remedies for noncompliance 

with the terms and conditions attached to the assistance, or for failure to comply 

with section 234, including withholding assistance. 

(b) The Government of the United States shall, for each fiscal year of the twenty 

years during which assistance is to be provided on a sector grant basis under section 

211, grant the Government of the Federated States of Micronesia an amount equal 

to the lesser of (i) one half of the reasonable, properly documented cost incurred during each fiscal year to conduct the annual audit required under Article VIII (2) of 

the Fiscal Procedures Agreement or (ii) $500,000. Such amount will not be adjusted 

for inflation under section 217 or otherwise. 

Section 213—Joint Economic Management Committee 

The Governments of the United States and the Federated States of Micronesia 

shall establish a Joint Economic Management Committee, composed of a U.S. chair, 

two other members from the Government of the United States and two members 

from the Government of the Federated States of Micronesia. The Joint Economic 

Management Committee shall meet at least once each year to review the audits and 

reports required under this Title, evaluate the progress made by the Federated 

States of Micronesia in meeting the objectives identified in its plan described in subsection (c) of section 211, with particular focus on those parts of the plan dealing 

with the sectors identified in subsection (a) of section 211, identify problems encountered, and recommend ways to increase the effectiveness of U.S. assistance made 

available under this Title. The establishment and operations of the Joint Economic 

Management Committee shall be governed by the Fiscal Procedures Agreement. 

Section 214—Annual Report 

The Government of the Federated States of Micronesia shall report annually to 

the President of the United States on the use of United States sector grant assistance and other assistance and progress in meeting mutually agreed program and 

economic goals. The Joint Economic Management Committee shall review and comment on the report and make appropriate recommendations based thereon. 

Section 215—Trust Fund 

(a) The United States shall contribute annually for twenty years from the effective 

date of this Compact, as amended, in the amounts set forth in section 216 into a 

Trust Fund established in accordance with the Agreement Between the Government 

of the United States of America and the Government of the Federated States of Micronesia Implementing Section 215 and Section 216 of the Compact, as Amended, 

Regarding a Trust Fund (‘‘Trust Fund Agreement’’). Upon termination of the annual 

financial assistance under section 211, the proceeds of the fund shall thereafter be 

used for the purposes described in section 211 or as otherwise mutually agreed. 

(b) The United States contribution into the Trust Fund described in subsection(a) 

of this section is conditioned on the Government of the Federated States of MicroVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00030 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
31

nesia contributing to the Trust Fund at least $30 million, prior to September 30, 

2004. Any funds received by the Federated States of Micronesia under section 111 

(d) of Public Law 99–239 (January 14, 1986), or successor provisions, would be contributed to the Trust Fund as a Federated States of Micronesia contribution. 

(c) The terms regarding the investment and management of funds and use of the 

income of the Trust Fund shall be set forth in the separate Trust Fund Agreement 

described in subsection (a) of this section. Funds derived from United States investment shall not be subject to Federal or state taxes in the United States or the Federated States of Micronesia. The Trust Fund Agreement shall also provide for annual reports to the Government of the United States and to the Government of the 

Federated States of Micronesia. The Trust Fund Agreement shall provide for appropriate distributions of trust fund proceeds to the Federated States of Micronesia and 

for appropriate remedies for the failure of the Federated States of Micronesia to use 

income of the Trust Fund for the annual grant purposes set forth in section 211. 

These remedies may include the return to the United States of the present market 

value of its contributions to the Trust Fund and the present market value of any 

undistributed income on the contributions of the United States. If this Compact, as 

amended, is terminated, the provisions of sections 451 through 453 of this Compact, 

as amended, shall govern treatment of any U.S. contributions to the Trust Fund or 

accrued interest thereon. 

Section 216—Sector Grant Funding and Trust Fund Contributions 

The funds described in sections 211, 212(b) and 215 shall be made available as 

follows:

[In millions of dollars] 

Fiscal year 

Annual 

Grants Section 211

Audit 

Grant Section 212(b) 

(amount up 

to) 

Trust 

Fund Section 215Total 

2004 ........................................................................... 76.2 .5 16 92.7

2005 ........................................................................... 76.2 .5 16 92.7

2006 ........................................................................... 76.2 .5 16 92.7

2007 ........................................................................... 75.4 .5 16.8 92.7

2008 ........................................................................... 74.6 .5 17.6 92.7

2009 ........................................................................... 73.8 .5 18.4 92.7

2010 ........................................................................... 73 .5 19.2 92.7

2011 ........................................................................... 72.2 .5 20 92.7

2012 ........................................................................... 71.4 .5 20.8 92.7

2013 ........................................................................... 70.6 .5 21.6 92.7

2014 ........................................................................... 69.8 .5 22.4 92.7

2015 ........................................................................... 69 .5 23.2 92.7

2016 ........................................................................... 68.2 .5 24 92.7

2017 ........................................................................... 67.4 .5 24.8 92.7

2018 ........................................................................... 66.6 .5 25.6 92.7

2019 ........................................................................... 65.8 .5 26.4 92.7

2020 ........................................................................... 65 .5 27.2 92.7

2021 ........................................................................... 64.2 .5 28 92.7

2022 ........................................................................... 63.4 .5 28.8 92.7

2023 ........................................................................... 62.6 .5 29.6 92.7

Section 217—Inflation Adjustment 

Except for the amounts provided for audits under section 212(b), the amounts 

stated in this Title shall be adjusted for each United States Fiscal Year by the percent that equals two-thirds of the percent change in the United States Gross Domestic Product Implicit Price Deflator, or 5 percent, whichever is less in any one year, 

using the beginning of Fiscal Year 2004 as a base. 

Section 218—Carry-Over of Unused Funds 

If in any year the funds made available by the Government of the United States 

for that year pursuant to this Article are not completely obligated by the Government of the Federated States of Micronesia, the unobligated balances shall remain 

available in addition to the funds to be provided in subsequent years. 

Article II 

Services and Program Assistance 

Section 221

(a) SERVICES.—The Government of the United States shall make available to the 

Federated States of Micronesia, in accordance with and to the extent provided in 

the Federal Programs and Services Agreement referred to in section 231, the services and related programs of: 

(1) the United States Weather Service; 

(2) the United States Postal Service; 

32

(3) the United States Federal Aviation Administration; 

(4) the United States Department of Transportation; 

(5) the Federal Deposit Insurance Corporation (for the benefit only of the 

Bank of the Federated States of Micronesia), and 

(6) the Department of Homeland Security, and the United States Agency for 

International Development, Office of Foreign Disaster Assistance. 

Upon the effective date of this Compact, as amended, the United States Departments and Agencies named or having responsibility to provide these services and 

related programs shall have the authority to implement the relevant provisions of 

the Federal Programs and Services Agreement referred to in section 231. 

(b) PROGRAMS.— (1) With the exception of the services and programs covered by subsection (a) 

of this section, and unless the Congress of the United States provides otherwise, 

the Government of the United States shall make available to the Federated 

States of Micronesia the services and programs that were available to the Federated States of Micronesia on the effective date of this Compact, as amended, 

to the extent that such services and programs continue to be available to State 

and local governments of the United States. As set forth in the Fiscal Procedures Agreement, funds provided under subsection (a) of section 211 will be considered to be local revenues of the Government of the Federated States of Micronesia when used as the local share required to obtain Federal programs and 

services. 

(2) Unless provided otherwise by U.S. law, the services and programs described in paragraph (1) of this subsection shall be extended in accordance with 

the terms of the Federal Programs and Services Agreement referred to in section 231. 

(c) The Government of the United States shall have and exercise such authority 

as is necessary to carry out its responsibilities under this Title and the separate 

agreements referred to in amended section 231, including the authority to monitor 

and administer all service and program assistance provided by the United States 

to the Federated States of Micronesia. The Federal Programs and Services Agreement referred to in amended section 231 shall also set forth the extent to which 

services and programs shall be provided to the Federated States of Micronesia. 

(d) Except as provided elsewhere in this Compact, as amended, under any separate agreement entered into under this Compact, as amended, or otherwise under 

U.S. law, all Federal domestic programs extended to or operating in the Federated 

States of Micronesia shall be subject to all applicable criteria, standards, reporting 

requirements, auditing procedures, and other rules and regulations applicable to 

such programs and services when operating in the United States. 

(e) The Government of the United States shall make available to the Federated 

States of Micronesia alternate energy development projects, studies, and conservation measures to the extent provided for the Freely Associated States in the laws 

of the United States. 

Section 222

The Government of the United States and the Government of the Federated 

States of Micronesia may agree from time to time to extend to the Federated States 

of Micronesia additional United States grant assistance, services and programs, as 

provided under the laws of the United States. Unless inconsistent with such laws, 

or otherwise specifically precluded by the Government of the United States at the 

time such additional grant assistance, services, or programs are extended, the Federal Programs and Services Agreement referred to section 231 shall apply to any 

such assistance, services or programs. 

Section 223

The Government of the Federated States of Micronesia shall make available to 

the Government of the United States at no cost such land as may be necessary for 

the operations of the services and programs provided pursuant to this Article, and 

such facilities as are provided by the Government of the Federated States of Micronesia at no cost to the Government of the United States as of the effective date of 

this Compact, as amended, or as may be mutually agreed thereafter. 

Section 224

The Government of the Federated States of Micronesia may request, from time 

to time, technical assistance from the Federal agencies and institutions of the Government of the United States, which are authorized to grant such technical assistance in accordance with its laws. If technical assistance is granted pursuant to such 

a request, the Government of the United States shall provide the technical assistance in a manner which gives priority consideration to the Federated States of Micronesia over other recipients not a part of the United States, its territories or possessions, and equivalent consideration to the Federated States of Micronesia with 

respect to other states in Free Association with the United States. Such assistance 

33

shall be made available on a reimbursable or non-reimbursable basis to the extent 

provided by United States law. 

Article III 

Administrative Provisions 

Section 231

The specific nature, extent and contractual arrangements of the services and programs provided for in section 221 of this Compact, as amended, as well as the legal 

status of agencies of the Government of the United States, their civilian employees 

and contractors, and the dependents of such personnel while present in the Federated States of Micronesia, and other arrangements in connection with the assistance, services, or programs furnished by the Government of the United States, are 

set forth in a Federal Programs and Services Agreement which shall come into effect simultaneously with this Compact, as amended. 

Section 232

The Government of the United States, in consultation with the Government of the 

Federated States of Micronesia, shall determine and implement procedures for the 

periodic audit of all grants and other assistance made under Article I of this Title 

and of all funds expended for the services and programs provided under Article II 

of this Title. Further, in accordance with the Fiscal Procedures Agreement described 

in subsection (a) of section 211, the Comptroller General of the United States shall 

have such powers and authorities as described in sections 102 (c) and 110 (c) of Public Law 99–239, 99 Stat. 1777–78, and 99 Stat. 1799 (January 14, 1986). 

Section 233

Approval of this Compact, as amended, by the Government of the United States, 

in accordance with its constitutional processes, shall constitute a pledge by the 

United States that the sums and amounts specified as sector grants in section 211 

of this Compact, as amended, shall be appropriated and paid to the Federated 

States of Micronesia for such period as those provisions of this Compact, as amended, remain in force, subject to the terms and conditions of this Title and related subsidiary agreements. 

Section 234

The Government of the Federated States of Micronesia pledges to cooperate with, 

permit, and assist if reasonably requested, designated and authorized representatives of the Government of the United States charged with investigating whether 

Compact funds, or any other assistance authorized under this Compact, as amended, have, or are being, used for purposes other than those set forth in this Compact, 

as amended, or its subsidiary agreements. In carrying out this investigative authority, such United States Government representatives may request that the Government of the Federated States of Micronesia subpoena documents and records and 

compel testimony in accordance with the laws and Constitution of the Federated 

States of Micronesia. Such assistance by the Government of the Federated States 

of Micronesia to the Government of the United States shall not be unreasonably 

withheld. The obligation of the Government of the Federated States of Micronesia 

to fulfill its pledge herein is a condition to its receiving payment of such funds or 

other assistance authorized under this Compact, as amended. The Government of 

the United States shall pay any reasonable costs for extraordinary services executed 

by the Government of the Federated States of Micronesia in carrying out the provisions of this section. 

Article IV 

Trade 

Section 241

The Federated States of Micronesia is not included in the customs territory of the 

United States. 

Section 242

The President shall proclaim the following tariff treatment for articles imported 

from the Federated States of Micronesia which shall apply during the period of effectiveness of this title: 

(a) Unless otherwise excluded, articles imported from the Federated States of 

Micronesia, subject to the limitations imposed under section 503(b) of title V of 

the Trade Act of 1974 (19 U.S.C. 2463(b)), shall be exempt from duty. 

(b) Only tuna in airtight containers provided for in heading 1604.14.22 of the 

Harmonized Tariff Schedule of the United States that is imported from the Federated States of Micronesia and the Republic of the Marshall Islands during 

any calendar year not to exceed 10 percent of apparent United States consumpVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00033 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
34

tion of tuna in airtight containers during the immediately preceding calendar 

year, as reported by the National Marine Fisheries Service, shall be exempt 

from duty; but the quantity of tuna given duty-free treatment under this paragraph for any calendar year shall be counted against the aggregated quantity 

of tuna in airtight containers that is dutiable under rate column numbered 1 

of such heading 1604.14.22 for that calendar year. 

(c) The duty-free treatment provided under subsection (a) shall not apply to—

(1) watches, clocks, and timing apparatus provided for in Chapter 91, excluding heading 9113, of the Harmonized Tariff Schedule of the United 

States; 

(2) buttons (whether finished or not finished) provided for in items 

9606.21.40 and 9606.29.20 of such Schedule; 

(3) textile and apparel articles which are subject to textile agreements; 

and 

(4) footwear, handbags, luggage, flat goods, work gloves, and leather 

wearing apparel which were not eligible articles for purposes of title V of 

the Trade Act of 1974 (19 U.S.C. 2461, et seq.) on April 1, 1984. 

(d) If the cost or value of materials produced in the customs territory of the 

United States is included with respect to an eligible article which is a product 

of the Federated States of Micronesia, an amount not to exceed 15 percent of 

the appraised value of the article at the time it is entered that is attributable 

to such United States cost or value may be applied for duty assessment purposes toward determining the percentage referred to in section 503(a)(2) of title 

V of the Trade Act of 1974. 

Section 243

Articles imported from the Federated States of Micronesia which are not exempt 

from duty under subsections (a), (b), (c), and (d) of section 242 shall be subject to 

the rates of duty set forth in column numbered 1-general of the Harmonized Tariff 

Schedule of the United States (HTSUS). 

Section 244

(a) All products of the United States imported into the Federated States of Micronesia shall receive treatment no less favorable than that accorded like products of 

any foreign country with respect to customs duties or charges of a similar nature 

and with respect to laws and regulations relating to importation, exportation, taxation, sale, distribution, storage or use. 

(b) The provisions of subsection (a) shall not apply to advantages accorded by the 

Federated States of Micronesia by virtue of their full membership in the Pacific Island Countries Trade Agreement (PICTA), done on August 18, 2001, to those governments listed in Article 26 of PICTA, as of the date the Compact, as amended, 

is signed. 

(c) Prior to entering into consultations on, or concluding, a free trade agreement 

with governments not listed in Article 26 of PICTA, the Federated States of Micronesia shall consult with the United States regarding whether or how subsection (a) 

of section 244 shall be applied. 

Article V 

Finance and Taxation 

Section 251

The currency of the United States is the official circulating legal tender of the 

Federated States of Micronesia. Should the Government of the Federated States of 

Micronesia act to institute another currency, the terms of an appropriate currency 

transitional period shall be as agreed with the Government of the United States. 

Section 252

The Government of the Federated States of Micronesia may, with respect to 

United States persons, tax income derived from sources within its respective jurisdiction, property situated therein, including transfers of such property by gift or at 

death, and products consumed therein, in such manner as the Government of the 

Federated States of Micronesia deems appropriate. The determination of the source 

of any income, or the situs of any property, shall for purposes of this Compact be 

made according to the United States Internal Revenue Code. 

Section 253

A citizen of the Federated States of Micronesia, domiciled therein, shall be exempt 

from estate, gift, and generation-skipping transfer taxes imposed by the Government of the United States, provided that such citizen of the Federated States of Micronesia is neither a citizen nor a resident of the United States. 

Section 254

35

(a) In determining any income tax imposed by the Government of the Federated 

States of Micronesia, the Government of the Federated States of Micronesia shall 

have authority to impose tax upon income derived by a resident of the Federated 

States of Micronesia from sources without the Federated States of Micronesia, in the 

same manner and to the same extent as the Government of the Federated States 

of Micronesia imposes tax upon income derived from within its own jurisdiction. If 

the Government of the Federated States of Micronesia exercises such authority as 

provided in this subsection, any individual resident of the Federated States of Micronesia who is subject to tax by the Government of the United States on income 

which is also taxed by the Government of the Federated States of Micronesia shall 

be relieved of liability to the Government of the United States for the tax which, 

but for this subsection, would otherwise be imposed by the Government of the 

United States on such income. However, the relief from liability to the United 

States Government referred to in the preceding sentence means only relief in the 

form of the foreign tax credit (or deduction in lieu thereof) available with respect 

to the income taxes of a possession of the United States, and relief in the form of 

the exclusion under section 911 of the Internal Revenue Code of 1986. For purposes 

of this section, the term ‘‘resident of the Federated States of Micronesia’’ shall be 

deemed to include any person who was physically present in the Federated States 

of Micronesia for a period of 183 or more days during any taxable year. 

(b) If the Government of the Federated States of Micronesia subjects income to 

taxation substantially similar to that imposed by the Trust Territory Code in effect 

on January 1, 1980, such Government shall be deemed to have exercised the authority described in section 254(a). 

Section 255

For purposes of section 274(h)(3)(A) of the United States Internal Revenue Code 

of 1986, the term ‘‘North American Area’’ shall include the Federated States of Micronesia. 

TITLE THREE 

SECURITY AND DEFENSE RELATIONS 

Article I 

Authority and Responsibility 

Section 311

(a) The Government of the United States has full authority and responsibility for 

security and defense matters in or relating to the Federated States of Micronesia. 

(b) This authority and responsibility includes: 

(1) the obligation to defend the Federated States of Micronesia and its people 

from attack or threats thereof as the United States and its citizens are defended; 

(2) the option to foreclose access to or use of the Federated States of Micronesia by military personnel or for the military purposes of any third country; 

and 

(3) the option to establish and use military areas and facilities in the Federated States of Micronesia, subject to the terms of the separate agreements referred to in sections 321 and 323. 

(c) The Government of the United States confirms that it shall act in accordance 

with the principles of international law and the Charter of the United Nations in 

the exercise of this authority and responsibility. 

Section 312

Subject to the terms of any agreements negotiated in accordance with sections 321 

and 323, the Government of the United States may conduct within the lands, waters 

and airspace of the Federated States of Micronesia the activities and operations necessary for the exercise of its authority and responsibility under this Title. 

Section 313

(a) The Government of the Federated States of Micronesia shall refrain from actions that the Government of the United States determines, after appropriate consultation with that Government, to be incompatible with its authority and responsibility for security and defense matters in or relating to the Federated States of Micronesia. 

(b) The consultations referred to in this section shall be conducted expeditiously 

at senior levels of the two Governments, and the subsequent determination by the 

Government of the United States referred to in this section shall be made only at 

senior interagency levels of the Government of the United States. 

36

(c) The Government of the Federated States of Micronesia shall be afforded, on 

an expeditious basis, an opportunity to raise its concerns with the United States 

Secretary of State personally and the United States Secretary of Defense personally 

regarding any determination made in accordance with this section. 

Section 314

(a) Unless otherwise agreed, the Government of the United States shall not, in 

the Federated States of Micronesia:

(1) test by detonation or dispose of any nuclear weapon, nor test, dispose of, 

or discharge any toxic chemical or biological weapon; or 

(2) test, dispose of, or discharge any other radioactive, toxic chemical or biological materials in an amount or manner which would be hazardous to public 

health or safety. 

(b) Unless otherwise agreed, other than for transit or overflight purposes or during time of a national emergency declared by the President of the United States, 

a state of war declared by the Congress of the United States or as necessary to defend against an actual or impending armed attack on the United States, the Federated States of Micronesia or the Republic of the Marshall Islands, the Government 

of the United States shall not store in the Federated States of Micronesia or the 

Republic of the Marshall Islands any toxic chemical weapon, nor any radioactive 

materials nor any toxic chemical materials intended for weapons use. 

(c) Radioactive, toxic chemical, or biological materials not intended for weapons 

use shall not be affected by section 314(b). 

(d) No material or substance referred to in this section shall be stored in the Federated States of Micronesia except in an amount and manner which would not be 

hazardous to public health or safety. In determining what shall be an amount or 

manner which would be hazardous to public health or safety under this section, the 

Government of the United States shall comply with any applicable mutual agreement, international guidelines accepted by the Government of the United States, 

and the laws of the United States and their implementing regulations. 

(e) Any exercise of the exemption authority set forth in section 161(e) shall have 

no effect on the obligations of the Government of the United States under this section or on the application of this subsection. 

(f) The provisions of this section shall apply in the areas in which the Government 

of the Federated States of Micronesia exercises jurisdiction over the living resources 

of the seabed, subsoil or water column adjacent to its coasts. 

Section 315

The Government of the United States may invite members of the armed forces 

of other countries to use military areas and facilities in the Federated States of Micronesia, in conjunction with and under the control of United States Armed Forces. 

Use by units of the armed forces of other countries of such military areas and facilities, other than for transit and overflight purposes, shall be subject to consultation 

with and, in the case of major units, approval of the Government of the Federated 

States of Micronesia. 

Section 316

The authority and responsibility of the Government of the United States under 

this Title may not be transferred or otherwise assigned. 

Article II 

Defense Facilities and Operating Rights 

Section 321

(a) Specific arrangements for the establishment and use by the Government of the 

United States of military areas and facilities in the Federated States of Micronesia 

are set forth in separate agreements, which shall remain in effect in accordance 

with the terms of such agreements. 

(b) If, in the exercise of its authority and responsibility under this Title, the Government of the United States requires the use of areas within the Federated States 

of Micronesia in addition to those for which specific arrangements are concluded 

pursuant to section 321(a), it may request the Government of the Federated States 

of Micronesia to satisfy those requirements through leases or other arrangements. 

The Government of the Federated States of Micronesia shall sympathetically consider any such request and shall establish suitable procedures to discuss it with and 

provide a prompt response to the Government of the United States. 

(c) The Government of the United States recognizes and respects the scarcity and 

special importance of land in the Federated States of Micronesia. In making any requests pursuant to section 321(b), the Government of the United States shall follow 

the policy of requesting the minimum area necessary to accomplish the required security and defense purpose, of requesting only the minimum interest in real propVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00036 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
37

erty necessary to support such purpose, and of requesting first to satisfy its requirement through public real property, where available, rather than through private 

real property. 

Section 322

The Government of the United States shall provide and maintain fixed and floating aids to navigation in the Federated States of Micronesia at least to the extent 

necessary for the exercise of its authority and responsibility under this Title. 

Section 323

The military operating rights of the Government of the United States and the 

legal status and contractual arrangements of the United States Armed Forces, their 

members, and associated civilians, while present in the Federated States of Micronesia are set forth in separate agreements, which shall remain in effect in accordance with the terms of such agreements. 

Article III 

Defense Treaties and International Security Agreements 

Section 331

Subject to the terms of this Compact, as amended, and its related agreements, the 

Government of the United States, exclusively, has assumed and enjoys, as to the 

Federated States of Micronesia, all obligations, responsibilities, rights and benefits 

of: 

(a) Any defense treaty or other international security agreement applied by the 

Government of the United States as Administering Authority of the Trust Territory 

of the Pacific Islands as of November 2, 1986. 

(b) Any defense treaty or other international security agreement to which the 

Government of the United States is or may become a party which it determines to 

be applicable in the Federated States of Micronesia. Such a determination by the 

Government of the United States shall be preceded by appropriate consultation with 

the Government of the Federated States of Micronesia. 

Article IV 

Service in Armed Forces of the United States 

Section 341

Any person entitled to the privileges set forth in Section 141 (with the exception 

of any person described in section 141(a)(5) who is not a citizen of the Federated 

States of Micronesia) shall be eligible to volunteer for service in the Armed Forces 

of the United States, but shall not be subject to involuntary induction into military 

service of the United States as long as such person has resided in the United States 

for a period of less than one year, provided that no time shall count towards this 

one year while a person admitted to the United States under the Compact, or the 

Compact, as amended, is engaged in full-time study in the United States. Any person described in section 141(a)(5) who is not a citizen of the Federated States of Micronesia shall be subject to United States laws relating to selective service. 

Section 342

The Government of the United States shall have enrolled, at any one time, at 

least one qualified student from the Federated States of Micronesia, as may be nominated by the Government of the Federated States of Micronesia, in each of: 

(a) The United States Coast Guard Academy pursuant to 14 U.S.C. 195. 

(b) The United States Merchant Marine Academy pursuant to 46 U.S.C. 

1295(b)(6), provided that the provisions of 46 U.S.C. 1295b(b)(6)(C) shall not apply 

to the enrollment of students pursuant to section 342(b) of this Compact, as amended. 

Article V 

General Provisions 

Section 351

(a) The Government of the United States and the Government of the Federated 

States of Micronesia shall continue to maintain a Joint Committee empowered to 

consider disputes arising under the implementation of this Title and its related 

agreements. 

(b) The membership of the Joint Committee shall comprise selected senior officials 

of the two Governments. The senior United States military commander in the Pacific area shall be the senior United States member of the Joint Committee. For the 

meetings of the Joint Committee, each of the two Governments may designate addiVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00037 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
38

tional or alternate representatives as appropriate for the subject matter under consideration. 

(c) Unless otherwise mutually agreed, the Joint Committee shall meet annually 

at a time and place to be designated, after appropriate consultation, by the Government of the United States. The Joint Committee also shall meet promptly upon request of either of its members. The Joint Committee shall follow such procedures, 

including the establishment of functional subcommittees, as the members may from 

time to time agree. Upon notification by the Government of the United States, the 

Joint Committee of the United States and the Federated States of Micronesia shall 

meet promptly in a combined session with the Joint Committee established and 

maintained by the Government of the United States and the Republic of the Marshall Islands to consider matters within the jurisdiction of the two Joint Committees. 

(d) Unresolved issues in the Joint Committee shall be referred to the Governments for resolution, and the Government of the Federated States of Micronesia 

shall be afforded, on an expeditious basis, an opportunity to raise its concerns with 

the United States Secretary of Defense personally regarding any unresolved issue 

which threatens its continued association with the Government of the United 

States. 

Section 352

In the exercise of its authority and responsibility under Title Three, the Government of the United States shall accord due respect to the authority and responsibility of the Government of the Federated States of Micronesia under Titles One, 

Two and Four and to the responsibility of the Government of the Federated States 

of Micronesia to assure the well-being of its people. 

Section 353

(a) The Government of the United States shall not include the Government of the 

Federated States of Micronesia as a named party to a formal declaration of war, 

without that Government’s consent. 

(b) Absent such consent, this Compact, as amended, is without prejudice, on the 

ground of belligerence or the existence of a state of war, to any claims for damages 

which are advanced by the citizens, nationals or Government of the Federated 

States of Micronesia, which arise out of armed conflict subsequent to November 3, 

1986, and which are: 

(1) petitions to the Government of the United States for redress; or 

(2) claims in any manner against the government, citizens, nationals or entities of any third country. 

(c) Petitions under section 353(b)(1) shall be treated as if they were made by citizens of the United States. 

Section 354

(a) The Government of the United States and the Government of the Federated 

States of Micronesia are jointly committed to continue their security and defense relations, as set forth in this Title. Accordingly, it is the intention of the two countries 

that the provisions of this Title shall remain binding as long as this Compact, as 

amended, remains in effect, and thereafter as mutually agreed, unless earlier terminated by mutual agreement pursuant to section 441, or amended pursuant to Article 

III of Title Four. If at any time the Government of the United States, or the Government of the Federated States of Micronesia, acting unilaterally, terminates this 

Title, such unilateral termination shall be considered to be termination of the entire 

Compact, in which case the provisions of section 442 and 452 (in the case of termination by the Government of the United States) or sections 443 and 453 (in the case 

of termination by the Government of the Federated States of Micronesia), with the 

exception of paragraph (3) of subsection (a) of section 452 or paragraph (3) of subsection (a) of section 453, as the case may be, shall apply. 

(b) The Government of the United States recognizes, in view of the special relationship between the Government of the United States and the Government of the 

Federated States of Micronesia, and in view of the existence of the separate agreement regarding mutual security concluded with the Government of the Federated 

States of Micronesia pursuant to sections 321 and 323, that, even if this Title should 

terminate, any attack on the Federated States of Micronesia during the period in 

which such separate agreement is in effect, would constitute a threat to the peace 

and security of the entire region and a danger to the United States. In the event 

of such an attack, the Government of the United States would take action to meet 

the danger to the United States and to the Federated States of Micronesia in accordance with its constitutional processes. 

(c) As reflected in Article 21(1)(b) of the Trust Fund Agreement, the Government 

of the United States and the Government of the Federated States of Micronesia further recognize, in view of the special relationship between their countries, that even 

if this Title should terminate, the Government of the Federated States of Micronesia 

39

shall refrain from actions which the Government of the United States determines, 

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

TITLE FOUR 

GENERAL PROVISIONS 

Article I 

Approval and Effective Date 

Section 411

Pursuant to section 432 of the Compact and subject to subsection (e) of section 

461 of the Compact, as amended, the Compact, as amended, shall come into effect 

upon mutual agreement between the Government of the United States and the Government of the Federated States of Micronesia subsequent to completion of the following: 

(a) Approval by the Government of the Federated States of Micronesia in accordance with its constitutional processes. 

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

constitutional processes. 

Article II 

Conference and Dispute Resolution 

Section 421

The Government of the United States shall confer promptly at the request of the 

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

Section 422

In the event the Government of the United States or the Government of the Federated States of Micronesia, after conferring pursuant to section 421, determines 

that there is a dispute and gives written notice thereof, the two Governments shall 

make a good faith effort to resolve the dispute between themselves. 

Section 423

If a dispute between the Government of the United States and the Government 

of the Federated States of Micronesia cannot be resolved within 90 days of written 

notification in the manner provided in section 422, either party to the dispute may 

refer it to arbitration in accordance with section 424. 

Section 424

Should a dispute be referred to arbitration as provided for in section 423, an Arbitration Board shall be established for the purpose of hearing the dispute and rendering a decision which shall be binding upon the two parties to the dispute unless 

the two parties mutually agree that the decision shall be advisory. Arbitration shall 

occur according to the following terms: 

(a) An Arbitration Board shall consist of a Chairman and two other members, 

each of whom shall be a citizen of a party to the dispute. Each of the two Governments which is a party to the dispute shall appoint one member to the Arbitration Board. If either party to the dispute does not fulfill the appointment requirements of this section within 30 days of referral of the dispute to arbitration 

pursuant to section 423, its member on the Arbitration Board shall be selected 

from its own standing list by the other party to the dispute. Each Government 

shall maintain a standing list of 10 candidates. The parties to the dispute shall 

jointly appoint a Chairman within 15 days after selection of the other members 

of the Arbitration Board. Failing agreement on a Chairman, the Chairman shall 

be chosen by lot from the standing lists of the parties to the dispute within 5 

days after such failure. 

(b) Unless otherwise provided in this Compact, as amended, or its related 

agreements, the Arbitration Board shall have jurisdiction to hear and render its 

final determination on all disputes arising exclusively under Articles I, II, III, 

IV and V of Title One, Title Two, Title Four, and their related agreements. 

(c) Each member of the Arbitration Board shall have one vote. Each decision 

of the Arbitration Board shall be reached by majority vote. 

(d) In determining any legal issue, the Arbitration Board may have reference to 

international law and, in such reference, shall apply as guidelines the provisions set 

forth in Article 38 of the Statute of the International Court of Justice. 

40

(e) The Arbitration Board shall adopt such rules for its proceedings as it may 

deem appropriate and necessary, but such rules shall not contravene the provisions 

of this Compact, as amended. Unless the parties provide otherwise by mutual agreement, the Arbitration Board shall endeavor to render its decision within 30 days 

after the conclusion of arguments. The Arbitration Board shall make findings of fact 

and conclusions of law and its members may issue dissenting or individual opinions. 

Except as may be otherwise decided by the Arbitration Board, one-half of all costs 

of the arbitration shall be borne by the Government of the United States and the 

remainder shall be borne by the Government of the Federated States of Micronesia. 

Article III 

Amendment 

Section 431

The provisions of this Compact, as amended, may be further amended by mutual 

agreement of the Government of the United States and the Government of the Federated States of Micronesia, in accordance with their respective constitutional processes. 

Article IV 

Termination 

Section 441

This Compact, as amended, may be terminated by mutual agreement of the Government of the Federated States of Micronesia and the Government of the United 

States, in accordance with their respective constitutional processes. Such mutual 

termination of this Compact, as amended, shall be without prejudice to the continued application of section 451 of this Compact, as amended, and the provisions of 

the Compact, as amended, set forth therein. 

Section 442

Subject to section 452, this Compact, as amended, may be terminated by the Government of the United States in accordance with its constitutional processes. Such 

termination shall be effective on the date specified in the notice of termination by 

the Government of the United States but not earlier than six months following delivery of such notice. The time specified in the notice of termination may be extended. Such termination of this Compact, as amended, shall be without prejudice 

to the continued application of section 452 of this Compact, as amended, and the 

provisions of the Compact, as amended, set forth therein. 

Section 443

This Compact, as amended, shall be terminated by the Government of the Federated States of Micronesia, pursuant to its constitutional processes, subject to section 453 if the people represented by that Government vote in a plebiscite to terminate the Compact, as amended, or by another process permitted by the FSM constitution and mutually agreed between the Governments of the United States and 

the Federated States of Micronesia. The Government of the Federated States of Micronesia shall notify the Government of the United States of its intention to call 

such a plebiscite, or to pursue another mutually agreed and constitutional process, 

which plebiscite or process shall take place not earlier than three months after delivery of such notice. The plebiscite or other process shall be administered by the 

Government of the Federated States of Micronesia in accordance with its constitutional and legislative processes. If a majority of the valid ballots cast in the plebiscite or other process favors termination, the Government of the Federated States 

of Micronesia shall, upon certification of the results of the plebiscite or other process, give notice of termination to the Government of the United States, such termination to be effective on the date specified in such notice but not earlier than three 

months following the date of delivery of such notice. The time specified in the notice 

of termination may be extended. 

Article V 

Survivability 

Section 451

(a) Should termination occur pursuant to section 441, economic and other assistance by the Government of the United States shall continue only if and as mutually 

agreed by the Governments of the United States and the Federated States of Micronesia, and in accordance with the parties’ respective constitutional processes. 

41

(b) In view of the special relationship of the United States and the Federated 

States of Micronesia, as reflected in subsections (b) and (c) of section 354 of this 

Compact, as amended, and the separate agreement entered into consistent with 

those subsections, if termination occurs pursuant to section 441 prior to the twentieth anniversary of the effective date of this Compact, as amended, the United 

States shall continue to make contributions to the Trust Fund described in section 

215 of this Compact, as amended. 

(c) In view of the special relationship of the United States and the Federated 

States of Micronesia described in subsection (b) of this section, if termination occurs 

pursuant to section 441 following the twentieth anniversary of the effective date of 

this Compact, as amended, the Federated States of Micronesia shall be entitled to 

receive proceeds from the Trust Fund described in section 215 of this Compact, as 

amended, in the manner described in those provisions and the Trust Fund Agreement governing the distribution of such proceeds. 

Section 452

(a) Should termination occur pursuant to section 442 prior to the twentieth anniversary of the effective date of this Compact, as amended, the following provisions 

of this Compact, as amended, shall remain in full force and effect until the twentieth anniversary of the effective date of this Compact, as amended, and thereafter 

as mutually agreed: 

(1) Article VI and sections 172, 173, 176 and 177 of Title One; 

(2) Sections 232 and 234 of Title Two; 

(3) Title Three; and 

(4) Articles II, III, V and VI of Title Four. 

(b) Should termination occur pursuant to section 442 before the twentieth anniversary of the effective date of the Compact, as amended: 

(1) Except as provided in paragraph (2) of this subsection and subsection (c) 

of this section, economic and other assistance by the United States shall continue only if and as mutually agreed by the Governments of the United States 

and the Federated States of Micronesia. 

(2) In view of the special relationship of the United States and the Federated 

States of Micronesia, as reflected in subsections (b) and (c) of section 354 of this 

Compact, as amended, and the separate agreement regarding mutual security, 

and the Trust Fund Agreement, the United States shall continue to make contributions to the Trust Fund described in section 215 of this Compact, as 

amended, in the manner described in the Trust Fund Agreement. 

(c) In view of the special relationship of the United States and the Federated 

States of Micronesia, as reflected in subsections 354(b) and (c) of this Compact, as 

amended, and the separate agreement regarding mutual security, and the Trust 

Fund Agreement, if termination occurs pursuant to section 442 following the twentieth anniversary of the effective date of this Compact, as amended, the Federated 

States of Micronesia shall continue to be eligible to receive proceeds from the Trust 

Fund described in section 215 of this Compact, as amended, in the manner described in those provisions and the Trust Fund Agreement. 

Section 453

(a) Should termination occur pursuant to section 443 prior to the twentieth anniversary of the effective date of this Compact, as amended, the following provisions 

of this Compact, as amended, shall remain in full force and effect until the twentieth anniversary of the effective date of this Compact, as amended, and thereafter 

as mutually agreed: 

(1) Article VI and sections 172, 173, 176 and 177 of Title One; 

(2) Sections 232 and 234 of Title Two; 

(3) Title Three; and 

(4) Articles II, III, V and VI of Title Four. 

(b) Upon receipt of notice of termination pursuant to section 443, the Government 

of the United States and the Government of the Federated States of Micronesia 

shall promptly consult with regard to their future relationship. Except as provided 

in subsection (c) and (d) of this section, these consultations shall determine the level 

of economic and other assistance, if any, which the Government of the United States 

shall provide to the Government of the Federated States of Micronesia for the period 

ending on the twentieth anniversary of the effective date of this Compact, as amended, and for any period thereafter, if mutually agreed. 

(c) In view of the special relationship of the United States and the Federated 

States of Micronesia, as reflected in subsections 354(b) and (c) of this Compact, as 

amended, and the separate agreement regarding mutual security, and the Trust 

Fund Agreement, if termination occurs pursuant to section 443 prior to the twentieth anniversary of the effective date of this Compact, as amended, the United 

States shall continue to make contributions to the Trust Fund described in section 

42

215 of this Compact, as amended, in the manner described in the Trust Fund Agreement. 

(d) In view of the special relationship of the United States and the Federated 

States of Micronesia, as reflected in subsections 354(b) and (c) of this Compact, as 

amended, and the separate agreement regarding mutual security, and the Trust 

Fund Agreement, if termination occurs pursuant to section 443 following the twentieth anniversary of the effective date of this Compact, as amended, the Federated 

States of Micronesia shall continue to be eligible to receive proceeds from the Trust 

Fund described in section 215 of this Compact, as amended, in the manner described in those provisions and the Trust Fund Agreement. 

Section 454

Notwithstanding any other provision of this Compact, as amended: 

(a) The Government of the United States reaffirms its continuing interest in 

promoting the economic advancement and budgetary self-reliance of the people 

of the Federated States of Micronesia. 

(b) The separate agreements referred to in Article II of Title Three shall remain in effect in accordance with their terms. 

Article VI 

Definition of Terms 

Section 461

For the purpose of this Compact, as amended, only, and without prejudice to the 

views of the Government of the United States or the Government of the Federated 

States of Micronesia as to the nature and extent of the jurisdiction of either of them 

under international law, the following terms shall have the following meanings: 

(a) ‘‘Trust Territory of the Pacific Islands’’ means the area established in the 

Trusteeship Agreement consisting of the former administrative districts of 

Kosrae, Yap, Ponape, the Marshall Islands and Truk as described in Title One, 

Trust Territory Code, section 1, in force on January 1, 1979. This term does not 

include the area of Palau or the Northern Mariana Islands. 

(b) ‘‘Trusteeship Agreement’’ means the agreement setting forth the terms of 

trusteeship for the Trust Territory of the Pacific Islands, approved by the Security Council of the United Nations April 2, 1947, and by the United States July 

18, 1947, entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 8 

U.N.T.S. 189. 

(c) ‘‘The Federated States of Micronesia’’ and ‘‘the Republic of the Marshall 

Islands’’ are used in a geographic sense and include the land and water areas 

to the outer limits of the territorial sea and the air space above such areas as 

now or hereafter recognized by the Government of the United States. 

(d) ‘‘Compact’’ means the Compact of Free Association Between the United 

States and the Federated States of Micronesia and the Marshall Islands, that 

was approved by the United States Congress in section 201 of Public Law 99–

239 (Jan. 14, 1986) and went into effect with respect to the Federated States 

of Micronesia on November 3, 1986. 

(e) ‘‘Compact, as amended’’ means the Compact of Free Association Between 

the United States and the Federated States of Micronesia, as amended. The effective date of the Compact, as amended, shall be on a date to be determined 

by the President of the United States, and agreed to by the Government of the 

Federated States of Micronesia, following formal approval of the Compact, as 

amended, in accordance with section 411 of this Compact, as amended. 

(f) ‘‘Government of the Federated States of Micronesia’’ means the Government established and organized by the Constitution of the Federated States of 

Micronesia including all the political subdivisions and entities comprising that 

Government. 

(g) ‘‘Government of the Republic of the Marshall Islands’’ means the Government established and organized by the Constitution of the Republic of the Marshall Islands including all the political subdivisions and entities comprising that 

Government. 

(h) The following terms shall be defined consistent with the 1998 Edition of 

the Radio Regulations of the International Telecommunications Union as follows: 

(1) ‘‘Radiocommunication’’ means telecommunication by means of radio 

waves. 

(2) ‘‘Station’’ means one or more transmitters or receivers or a combination of transmitters and receivers, including the accessory equipment, necessary at one location for carrying on a radiocommunication service, or the 

radio astronomy service. 

43

(3) ‘‘Broadcasting Service’’ means a radiocommunication service in which 

the transmissions are intended for direct reception by the general public. 

This service may include sound transmissions, television transmissions or 

other types of transmission. 

(4) ‘‘Broadcasting Station’’ means a station in the broadcasting service. 

(5) ‘‘Assignment (of a radio frequency or radio frequency channel)’’ means an authorization given by an administration for a radio station to use a 

radio frequency or radio frequency channel under specified conditions. 

(6) ‘‘Telecommunication’’ means any transmission, emission or reception 

of signs, signals, writings, images and sounds or intelligence of any nature 

by wire, radio, optical or other electromagnetic systems. 

(i) ‘‘Military Areas and Facilities’’ means those areas and facilities in the Federated States of Micronesia reserved or acquired by the Government of the Federated States of Micronesia for use by the Government of the United States, as 

set forth in the separate agreements referred to in section 321. 

(j) ‘‘Tariff Schedules of the United States’’ means the Tariff Schedules of the 

United States as amended from time to time and as promulgated pursuant to 

United States law and includes the Tariff Schedules of the United States Annotated (TSUSA), as amended. 

(k) ‘‘Vienna Convention on Diplomatic Relations’’ means the Vienna Convention on Diplomatic Relations, done April 18, 1961, 23 U.S.T. 3227, T.I.A.S. 7502, 

500 U.N.T.S. 95. 

Section 462

(a) The Government of the United States and the Government of the Federated 

States of Micronesia previously have concluded agreements pursuant to the Compact, which shall remain in effect and shall survive in accordance with their terms, 

as follows: 

(1) Agreement Concluded Pursuant to Section 234 of the Compact; 

(2) Agreement Between the Government of the United States and the Government of the Federated States of Micronesia Regarding Friendship, Cooperation 

and Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free Association; and 

(3) Agreement between the Government of the United States of America and 

the Federated States of Micronesia Regarding Aspects of the Marine Sovereignty and Jurisdiction of the Federated States of Micronesia. 

(b) The Government of the United States and the Government of the Federated 

States of Micronesia shall conclude prior to the date of submission of this Compact, 

as amended, to the legislatures of the two countries, the following related agreements which shall come into effect on the effective date of this Compact, as amended, and shall survive in accordance with their terms, as follows: 

(1) Federal Programs and Services Agreement Between the Government of 

the United States of America and the Government of the Federated States of 

Micronesia Concluded Pursuant to Article III of Title One, Article II of Title 

Two (including Section 222), and Section 231 of the Compact of Free Association, as amended which includes: 

(i) Postal Services and Related Programs; 

(ii) Weather Services and Related Programs; 

(iii) Civil Aviation Safety Service and Related Programs; 

(iv) Civil Aviation Economic Services and Related Programs; 

(v) United States Disaster Preparedness and Response Services and Related Programs; 

(vi) Federal Deposit Insurance Corporation Services and Related Programs; and 

(vii) Telecommunications Services and Related Programs. 

(2) Agreement Between the Government of the United States of America and 

the Government of the Federated States of Micronesia on Extradition, Mutual 

Assistance in Law Enforcement Matters and Penal Sanctions Concluded Pursuant to Section 175(a) of the Compact of Free Association, as amended; 

(3) Agreement Between the Government of the United States of America and 

the Government of the Federated States of Micronesia on Labor Recruitment 

Concluded Pursuant to Section 175(b) of the Compact of Free Association, as 

amended; 

(4) Agreement Concerning Procedures for the Implementation of United 

States Economic Assistance Provided in the Compact of Free Association, as 

Amended, of Free Association Between the Government of the United States of 

America and Government of the Federated States of Micronesia; 

(5) Agreement Between the Government of the United States of America and 

the Government of the Federated States of Micronesia Implementing Section 

215 and Section 216 of the Compact, as Amended, Regarding a Trust Fund; 

44

(6) Agreement Regarding the Military Use and Operating Rights of the Government of the United States in the Federated States of Micronesia Concluded 

Pursuant to Sections 211(b), 321 and 323 of the Compact of Free Association, 

as Amended; and the 

(7) Status of Forces Agreement Between the Government of the United States 

of America and the Government of the Federated States of Micronesia Concluded Pursuant to Section 323 of the Compact of Free Association, as Amended. 

Section 463

(a) Except as set forth in subsection (b) of this section, any reference in this Compact, as amended, to a provision of the United States Code or the Statutes at Large 

of the United States constitutes the incorporation of the language of such provision 

into this Compact, as amended, as such provision was in force on the effective date 

of this Compact, as amended. 

(b) Any reference in Articles IV and Article VI of Title One and Sections 174, 175, 

178 and 342 to a provision of the United States Code or the Statutes at Large of 

the United States or to the Privacy Act, the Freedom of Information Act, the Administrative Procedure Act or the Immigration and Nationality Act constitutes the incorporation of the language of such provision into this Compact, as amended, as 

such provision was in force on the effective date of this Compact, as amended, or 

as it may be amended thereafter on a non-discriminatory basis according to the constitutional processes of the United States. 

Article VII 

Concluding Provisions 

Section 471

Both the Government of the United States and the Government of the Federated 

States of Micronesia shall take all necessary steps, of a general or particular character, to ensure, no later than the entry into force date of this Compact, as amended, the conformity of its laws, regulations and administrative procedures with the 

provisions of this Compact, as amended, or in the case of subsection (d) of section 

141, as soon as reasonably possible thereafter. 

Section 472

This Compact, as amended, may be accepted, by signature or otherwise, by the 

Government of the United States and the Government of the Federated States of 

Micronesia. 

IN WITNESS WHEREOF, the undersigned, duly authorized, have signed this 

Compact of Free Association, as amended, which shall enter into force upon the exchange of diplomatic notes by which the Government of the United States of America and the Government of the Federated States of Micronesia inform each other 

about the fulfillment of their respective requirements for entry into force. 

DONE at Pohnpei, Federated States of Micronesia, in duplicate, this fourteenth 

(14) day of May, 2003, each text being equally authentic.

Signed (May 14, 2003) Signed (May 14, 2003) 

For the Government of the For the Government of the 

United States of America: Federated States of 

Micronesia:

(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

PREAMBLE 

THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 

GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS 

Affirming that their Governments and their relationship as Governments are 

founded upon respect for human rights and fundamental freedoms for all, and that 

the people of the Republic of the Marshall Islands have the right to enjoy self-government; and 

Affirming the common interests of the United States of America and the Republic 

of the Marshall Islands in creating and maintaining their close and mutually beneficial relationship through the free and voluntary association of their respective Governments; and 

Affirming the interest of the Government of the United States in promoting the 

economic advancement and budgetary self-reliance of the Republic of the Marshall 

Islands; and 

45

Recognizing that their relationship until the entry into force on October 21, 1986 

of the Compact was based upon the International Trusteeship System of the United 

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

Article 76 of the Charter, the people of the Republic of the Marshall Islands have 

progressively developed their institutions of self-government, and that in the exercise of their sovereign right to self-determination they, through their freely-expressed wishes, have adopted a Constitution appropriate to their particular circumstances; and 

Recognizing that the Compact reflected their common desire to terminate the 

Trusteeship and establish a government-to-government relationship which was in 

accordance with the new political status based on the freely expressed wishes of the 

people of the Republic of the Marshall Islands and appropriate to their particular 

circumstances; and 

Recognizing that the people of the Republic of the Marshall Islands have and retain their sovereignty and their sovereign right to self-determination and the inherent right to adopt and amend their own Constitution and form of government and 

that the approval of the entry of the Government of the Republic of the Marshall 

Islands into the Compact by the people of the Republic of the Marshall Islands constituted an exercise of their sovereign right to self-determination; and 

Recognizing the common desire of the people of the United States and the people 

of the Republic of the Marshall Islands to maintain their close government-to-government relationship, the United States and the Republic of the Marshall Islands:

NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen their relationship of free association by amending the Compact, which continues to provide 

a full measure of self-government for the people of the Republic of the Marshall Islands; and 

FURTHER AGREE that the relationship of free association derives from and is 

as set forth in this Compact, as amended, by the Governments of the United States 

and the Republic of the Marshall Islands; and that, during such relationship of free 

association, the respective rights and responsibilities of the Government of the 

United States and the Government of the Republic of the Marshall Islands in regard 

to this relationship of free association derive from and are as set forth in this Compact, as amended. 

TITLE ONE 

GOVERNMENTAL RELATIONS 

Article I 

Self-Government 

Section 111

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

Article II 

Foreign Affairs 

Section 121

(a) The Government of the Republic of the Marshall Islands has the capacity to 

conduct foreign affairs and shall do so in its own name and right, except as otherwise provided in this Compact, as amended. 

(b) The foreign affairs capacity of the Government of the Republic of the Marshall 

Islands includes: 

(1) the conduct of foreign affairs relating to law of the sea and marine resources matters, including the harvesting, conservation, exploration or exploitation of living and non-living resources from the sea, seabed or subsoil to the 

full extent recognized under international law; 

(2) the conduct of its commercial, diplomatic, consular, economic, trade, banking, postal, civil aviation, communications, and cultural relations, including negotiations for the receipt of developmental loans and grants and the conclusion 

of arrangements with other governments and international and intergovernmental organizations, including any matters specially benefiting its individual 

citizens. 

(c) The Government of the United States recognizes that the Government of the 

Republic of the Marshall Islands has the capacity to enter into, in its own name 

and right, treaties and other international agreements with governments and regional and international organizations. 

46

(d) In the conduct of its foreign affairs, the Government of the Republic of the 

Marshall Islands confirms that it shall act in accordance with principles of international law and shall settle its international disputes by peaceful means. 

Section 122

The Government of the United States shall support applications by the Government of the Republic of the Marshall Islands for membership or other participation 

in regional or international organizations as may be mutually agreed. 

Section 123

(a) In recognition of the authority and responsibility of the Government of the 

United States under Title Three, the Government of the Republic of the Marshall 

Islands shall consult, in the conduct of its foreign affairs, with the Government of 

the United States. 

(b) In recognition of the foreign affairs capacity of the Government of the Republic 

of the Marshall Islands, the Government of the United States, in the conduct of its 

foreign affairs, shall consult with the Government of the Republic of the Marshall 

Islands on matters that the Government of the United States regards as relating 

to or affecting the Government of the Republic of the Marshall Islands. 

Section 124

The Government of the United States may assist or act on behalf of the Government of the Republic of the Marshall Islands in the area of foreign affairs as may 

be requested and mutually agreed from time to time. The Government of the United 

States shall not be responsible to third parties for the actions of the Government 

of the Republic of the Marshall Islands undertaken with the assistance or through 

the agency of the Government of the United States pursuant to this section unless 

expressly agreed. 

Section 125

The Government of the United States shall not be responsible for nor obligated 

by any actions taken by the Government of the Republic of the Marshall Islands 

in the area of foreign affairs, except as may from time to time be expressly agreed. 

Section 126

At the request of the Government of the Republic of the Marshall Islands and 

subject to the consent of the receiving state, the Government of the United States 

shall extend consular assistance on the same basis as for citizens of the United 

States to citizens of the Republic of the Marshall Islands for travel outside the Republic of the Marshall Islands, the United States and its territories and possessions. 

Section 127

Except as otherwise provided in this Compact, as amended, or its related agreements, all obligations, responsibilities, rights and benefits of the Government of the 

United States as Administering Authority which resulted from the application pursuant to the Trusteeship Agreement of any treaty or other international agreement 

to the Trust Territory of the Pacific Islands on October 20, 1986, are, as of that date, 

no longer assumed and enjoyed by the Government of the United States. 

Article III 

Communications 

Section 131

(a) The Government of the Republic of the Marshall Islands has full authority and 

responsibility to regulate its domestic and foreign communications, and the Government of the United States shall provide communications assistance as mutually 

agreed. 

(b) The Government of the Republic of the Marshall Islands has elected to undertake all functions previously performed by the Government of the United States 

with respect to domestic and foreign communications, except for those functions set 

forth in a separate agreement entered into pursuant to this section of the Compact, 

as amended. 

Section 132

The Government of the Republic of the Marshall Islands shall permit the Government of the United States to operate telecommunications services in the Republic 

of the Marshall Islands to the extent necessary to fulfill the obligations of the Government of the United States under this Compact, as amended, in accordance with 

the terms of separate agreements entered into pursuant to this section of the Compact, as amended. 

Article IV 

Immigration 

Section 141

47

(a) In furtherance of the special and unique relationship that exists between the 

United States and the Republic of the Marshall Islands, under the Compact, as 

amended, any person in the following categories may be admitted to, lawfully engage in occupations, and establish residence as a nonimmigrant in the United States 

and its territories and possessions (the ‘‘United States’’) without regard to paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the Immigration and Nationality Act, 

as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II): 

(1) a person who, on October 21, 1986, was a citizen of the Trust Territory 

of the Pacific Islands, as defined in Title 53 of the Trust Territory Code in force 

on January 1, 1979, and has become and remains a citizen of the Republic of 

the Marshall Islands; 

(2) a person who acquires the citizenship of the Republic of the Marshall Islands at birth, on or after the effective date of the Constitution of the Republic 

of the Marshall Islands; 

(3) an immediate relative of a person referred to in paragraphs (1) or (2) of 

this section, provided that such immediate relative is a naturalized citizen of 

the Republic of the Marshall Islands who has been an actual resident there for 

not less than five years after attaining such naturalization and who holds a certificate of actual residence, and further provided, that, in the case of a spouse, 

such spouse has been married to the person referred to in paragraph (1) or (2) 

of this section for at least five years, and further provided, that the Government 

of the United States is satisfied that such naturalized citizen meets the requirement of subsection (b) of section 104 of Public Law 99–239 as it was in effect 

on the day prior to the effective date of this Compact, as amended; 

(4) a naturalized citizen of the Republic of the Marshall Islands who was an 

actual resident there for not less than five years after attaining such naturalization and who satisfied these requirements as of April 30, 2003, who continues 

to be an actual resident and holds a certificate of actual residence, and whose 

name is included in a list furnished by the Government of the Republic of the 

Marshall Islands to the Government of the United States no later than the effective date of the Compact, as amended, in form and content acceptable to the 

Government of the United States, provided, that the Government of the United 

States is satisfied that such naturalized citizen meets the requirement of subsection (b) of section 104 of Public Law 99–239 as it was in effect on the day 

prior to the effective date of this Compact, as amended; or 

(5) an immediate relative of a citizen of the Republic of the Marshall Islands, 

regardless of the immediate relative’s country of citizenship or period of residence in the Republic of the Marshall Islands, if the citizen of the Republic of 

the Marshall Islands is serving on active duty in any branch of the United 

States Armed Forces, or in the active reserves. 

(b) Notwithstanding subsection (a) of this section, a person who is coming to the 

United States pursuant to an adoption outside the United States, or for the purpose 

of adoption in the United States, is ineligible for admission under the Compact and 

the Compact, as amended. This subsection shall apply to any person who is or was 

an applicant for admission to the United States on or after March 1, 2003, including 

any applicant for admission in removal proceedings (including appellate proceedings) on or after March 1, 2003, regardless of the date such proceedings were 

commenced. This subsection shall have no effect on the ability of the Government 

of the United States or any United States State or local government to commence 

or otherwise take any action against any person or entity who has violated any law 

relating to the adoption of any person. 

(c) Notwithstanding subsection (a) of this section, no person who has been or is 

granted citizenship in the Republic of the Marshall Islands, or has been or is issued 

a Republic of the Marshall Islands passport pursuant to any investment, passport 

sale, or similar program has been or shall be eligible for admission to the United 

States under the Compact or the Compact, as amended. 

(d) A person admitted to the United States under the Compact, or the Compact, 

as amended, shall be considered to have the permission of the Government of the 

United States to accept employment in the United States. An unexpired Republic 

of the Marshall Islands passport with unexpired documentation issued by the Government of the United States evidencing admission under the Compact or the Compact, as amended, shall be considered to be documentation establishing identity and 

employment authorization under section 274A(b)(1)(B) of the Immigration and Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The Government of the United 

States will take reasonable and appropriate steps to implement and publicize this 

provision, and the Government of the Republic of the Marshall Islands will also take 

reasonable and appropriate steps to publicize this provision. 

(e) For purposes of the Compact and the Compact, as amended, 

48

(1) the term ‘‘residence’’ with respect to a person means the person’s principal, 

actual dwelling place in fact, without regard to intent, as provided in section 

101(a)(33) of the Immigration and Nationality Act, as amended, 8 U.S.C. 

1101(a)(33), and variations of the term ‘‘residence,’’ including ‘‘resident’’ and ‘‘re- side,’’ shall be similarly construed; 

(2) the term ‘‘actual residence’’ means physical presence in the Republic of the 

Marshall Islands during eighty-five percent of the five-year period of residency 

required by section 141(a)(3) and (4); 

(3) the term ‘‘certificate of actual residence’’ means a certificate issued to a 

naturalized citizen by the Government of the Republic of the Marshall Islands 

stating that the citizen has complied with the actual residence requirement of 

section 141(a)(3) or (4); 

(4) the term ‘‘nonimmigrant’’ means an alien who is not an ‘‘immigrant’’ as defined in section 101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and 

(5) the term ‘‘immediate relative’’ means a spouse, or unmarried son or unmarried daughter less than 21 years of age. 

(f) The Immigration and Nationality Act, as amended, shall apply to any person 

admitted or seeking admission to the United States (other than a United States possession or territory where such Act does not apply) under the Compact or the Compact, as amended, and nothing in the Compact or the Compact, as amended, shall 

be construed to limit, preclude, or modify the applicability of, with respect to such 

person: 

(1) any ground of inadmissibility or deportability under such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of such Act, as provided in subsection (a) 

of this section), and any defense thereto, provided that, section 237(a)(5) of such 

Act shall be construed and applied as if it reads as follows: ‘‘any alien who has 

been admitted under the Compact, or the Compact, as amended, who cannot 

show that he or she has sufficient means of support in the United States, is 

deportable;’’

(2) the authority of the Government of the United States under section 

214(a)(1) of such Act to provide that admission as a nonimmigrant shall be for 

such time and under such conditions as the Government of the United States 

may by regulations prescribe; 

(3) except for the treatment of certain documentation for purposes of section 

274A(b)(1)(B) of such Act as provided by subsection (d) of this section of the 

Compact, as amended, any requirement under section 274A, including but not 

limited to section 274A(b)(1)(E); 

(4) section 643 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, Public Law 104–208, and actions taken pursuant to section 

643; and 

(5) the authority of the Government of the United States otherwise to administer and enforce the Immigration and Nationality Act, as amended, or other 

United States law. 

(g) Any authority possessed by the Government of the United States under this 

section of the Compact or the Compact, as amended, may also be exercised by the 

Government of a territory or possession of the United States where the Immigration 

and Nationality Act, as amended, does not apply, to the extent such exercise of authority is lawful under a statute or regulation of such territory or possession that 

is authorized by the laws of the United States. 

(h) Subsection (a) of this section does not confer on a citizen of the Republic of 

the Marshall Islands the right to establish the residence necessary for naturalization under the Immigration and Nationality Act, as amended, or to petition for benefits for alien relatives under that Act. Subsection (a) of this section, however, shall 

not prevent a citizen of the Republic of the Marshall Islands from otherwise acquiring such rights or lawful permanent resident alien status in the United States. 

Section 142

(a) Any citizen or national of the United States may be admitted to lawfully engage in occupations, and reside in the Republic of the Marshall Islands, subject to 

the rights of the Government of the Republic of the Marshall Islands to deny entry 

to or deport any such citizen or national as an undesirable alien. Any determination 

of inadmissibility or deportability shall be based on reasonable statutory grounds 

and shall be subject to appropriate administrative and judicial review within the Republic of the Marshall Islands. If a citizen or national of the United States is a 

spouse of a citizen of the Republic of the Marshall Islands, the Government of the 

Republic of the Marshall Islands shall allow the United States citizen spouse to establish residence. Should the Republic of the Marshall Islands citizen spouse predecease the United States citizen spouse during the marriage, the Government of 

the Republic of the Marshall Islands shall allow the United States citizen spouse 

to continue to reside in the Republic of the Marshall Islands. 

49

(b) In enacting any laws or imposing any requirements with respect to citizens 

and nationals of the United States entering the Republic of the Marshall Islands 

under subsection (a) of this section, including any grounds of inadmissibility or deportability, the Government of the Republic of the Marshall Islands shall accord to 

such citizens and nationals of the United States treatment no less favorable than 

that accorded to citizens of other countries. 

(c) Consistent with subsection (a) of this section, with respect to citizens and nationals of the United States seeking to engage in employment or invest in the Republic of the Marshall Islands, the Government of the Republic of the Marshall Islands shall adopt immigration-related procedures no less favorable than those 

adopted by the Government of the United States with respect to citizens of the Republic of the Marshall Islands seeking employment in the United States. 

Section 143

Any person who relinquishes, or otherwise loses, his United States nationality or 

citizenship, or his Republic of the Marshall Islands citizenship, shall be ineligible 

to receive the privileges set forth in sections 141 and 142. Any such person may 

apply for admission to the United States or the Republic of the Marshall Islands, 

as the case may be, in accordance with any other applicable laws of the United 

States or the Republic of the Marshall Islands relating to immigration of aliens from 

other countries. The laws of the Republic of the Marshall Islands or the United 

States, as the case may be, shall dictate the terms and conditions of any such person’s stay. 

Article V 

Representation 

Section 151

Relations between the Government of the United States and the Government of 

the Republic of the Marshall Islands shall be conducted in accordance with the Vienna Convention on Diplomatic Relations. In addition to diplomatic missions and 

representation, the Governments may establish and maintain other offices and designate other representatives on terms and in locations as may be mutually agreed. 

Section 152

(a) Any citizen or national of the United States who, without authority of the 

United States, acts as the agent of the Government of the Republic of the Marshall 

Islands with regard to matters specified in the provisions of the Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 611 et seq.), that apply with respect 

to an agent of a foreign principal shall be subject to the requirements of such Act. 

Failure to comply with such requirements shall subject such citizen or national to 

the same penalties and provisions of law as apply in the case of the failure of such 

an agent of a foreign principal to comply with such requirements. For purposes of 

the Foreign Agents Registration Act of 1938, the Republic of the Marshall Islands 

shall be considered to be a foreign country. 

(b) Subsection (a) of this section shall not apply to a citizen or national of the 

United States employed by the Government of the Republic of the Marshall Islands 

with respect to whom the Government of the Republic of the Marshall Islands from 

time to time certifies to the Government of the United States that such citizen or 

national is an employee of the Republic of the Marshall Islands whose principal duties are other than those matters specified in the Foreign Agents Registration Act 

of 1938, as amended, that apply with respect to an agent of a foreign principal. The 

agency or officer of the United States receiving such certifications shall cause them 

to be filed with the Attorney General, who shall maintain a publicly available list 

of the persons so certified. 

Article VI 

Environmental Protection 

Section 161

The Governments of the United States and the Republic of the Marshall Islands 

declare that it is their policy to promote efforts to prevent or eliminate damage to 

the environment and biosphere and to enrich understanding of the natural resources of the Republic of the Marshall Islands. In order to carry out this policy, 

the Government of the United States and the Government of the Republic of the 

Marshall Islands agree to the following mutual and reciprocal undertakings: 

(a) The Government of the United States: 

(1) shall, for its activities controlled by the U.S. Army at Kwajalein Atoll 

and in the Mid-Atoll Corridor and for U.S. Army Kwajalein Atoll activities 

in the Republic of the Marshall Islands, continue to apply the EnvironVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00049 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
50

mental Standards and Procedures for United States Army Kwajalein Atoll 

Activities in the Republic of the Marshall Islands, unless and until those 

Standards or Procedures are modified by mutual agreement of the Governments of the United States and the Republic of the Marshall Islands; 

(2) shall apply the National Environmental Policy Act of 1969, 83 Stat. 

852, 42 U.S.C. 4321 et seq., to its activities under the Compact, as amended, and its related agreements as if the Republic of the Marshall Islands 

were the United States; 

(3) in the conduct of any activity not described in section 161(a)(1) requiring the preparation of an Environmental Impact Statement under section 

161(a)(2), shall comply with standards substantively similar to those required by the following laws of the United States, taking into account the 

particular environment of the Republic of the Marshall Islands; the Endangered Species Act of 1973, as amended, 16 U.S.C. 1531 et seq.; the Clean 

Air Act, as amended, 42 U.S.C. 7401 et seq.; the Clean Water Act (Federal 

Water Pollution Control Act), as amended, 33 U.S.C. 1251 et seq.; Title I 

of the Marine Protection, Research and Sanctuaries Act of 1972 (the Ocean 

Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic Substances Control Act, as 

amended, 15 U.S.C. 2601 et seq.; the Solid Waste Disposal Act, as amended, 

42 U.S.C. 6901 et seq.; and such other environmental protection laws of the 

United States and the Republic of the Marshall Islands as may be agreed 

from time to time with the Government of the Republic of the Marshall Islands; 

(4) shall, prior to conducting any activity not described in section 

161(a)(1) requiring the preparation of an Environmental Impact Statement 

under section 161(a)(2), develop, as agreed with the Government of the Republic of the Marshall Islands, written environmental standards and procedures to implement the substantive provisions of the laws made applicable 

to U.S. Government activities in the Republic of the Marshall Islands, pursuant to section 161(a)(3). 

(b) The Government of the Republic of the Marshall Islands shall continue to 

develop and implement standards and procedures to protect its environment. As 

a reciprocal obligation to the undertakings of the Government of the United 

States under this Article, the Republic of the Marshall Islands, taking into account its particular environment, shall continue to develop and implement 

standards for environmental protection substantively similar to those required 

of the Government of the United States by section 161(a)(3) prior to its conducting activities in the Republic of the Marshall Islands, substantively equivalent to activities conducted there by the Government of the United States and, 

as a further reciprocal obligation, shall enforce those standards.

(c) Section 161(a), including any standard or procedure applicable thereunder, 

and section 161(b) may be modified or superseded in whole or in part by agreement of the Government of the United States and the Government of the Republic of the Marshall Islands. 

(d) In the event that an Environmental Impact Statement is no longer required under the laws of the United States for major Federal actions significantly affecting the quality of the human environment, the regulatory regime 

established under sections 161(a)(3) and 161(a)(4) shall continue to apply to 

such activities of the Government of the United States until amended by mutual agreement. 

(e) The President of the United States may exempt any of the activities of 

the Government of the United States under this Compact, as amended, and its 

related agreements from any environmental standard or procedure which may 

be applicable under sections 161(a)(3) and 161(a)(4) if the President determines 

it to be in the paramount interest of the Government of the United States to 

do so, consistent with Title Three of this Compact, as amended, and the obligations of the Government of the United States under international law. Prior to 

any decision pursuant to this subsection, the views of the Government of the 

Republic of the Marshall Islands shall be sought and considered to the extent 

practicable. If the President grants such an exemption, to the extent practicable, a report with his reasons for granting such exemption shall be given 

promptly to the Government of the Republic of the Marshall Islands. 

(f) The laws of the United States referred to in section 161(a)(3) shall apply 

to the activities of the Government of the United States under this Compact, 

as amended, and its related agreements only to the extent provided for in this 

section. 

Section 162

The Government of the Republic of the Marshall Islands may bring an action for 

judicial review of any administrative agency action or any activity of the GovernVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00050 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
51

ment of the United States pursuant to section 161(a) for enforcement of the obligations of the Government of the United States arising thereunder. The United States 

District Court for the District of Hawaii and the United States District Court for 

the District of Columbia shall have jurisdiction over such action or activity, and over 

actions brought under section 172(b) which relate to the activities of the Government of the United States and its officers and employees, governed by section 161, 

provided that: 

(a) Such actions may only be civil actions for any appropriate civil relief other 

than punitive damages against the Government of the United States or, where 

required by law, its officers in their official capacity; no criminal actions may 

arise under this section. 

(b) Actions brought pursuant to this section may be initiated only by the Government of the Republic of the Marshall Islands. 

(c) Administrative agency actions arising under section 161 shall be reviewed 

pursuant to the standard of judicial review set forth in 5 U.S.C. 706. 

(d) The United States District Court for the District of Hawaii and the United 

States District Court for the District of Columbia shall have jurisdiction to issue 

all necessary processes, and the Government of the United States agrees to submit itself to the jurisdiction of the court; decisions of the United States District 

Court shall be reviewable in the United States Court of Appeals for the Ninth 

Circuit or the United States Court of Appeals for the District of Columbia, respectively, or in the United States Supreme Court as provided by the laws of 

the United States. 

(e) The judicial remedy provided for in this section shall be the exclusive remedy for the judicial review or enforcement of the obligations of the Government 

of the United States under this Article and actions brought under section 

172(b), which relate to the activities of the Government of the United States 

and its officers and employees governed by section 161. 

(f) In actions pursuant to this section, the Government of the Republic of the 

Marshall Islands shall be treated as if it were a United States citizen. 

Section 163

(a) For the purpose of gathering data necessary to study the environmental effects 

of activities of the Government of the United States subject to the requirements of 

this Article, the Government of the Republic of the Marshall Islands shall be granted access to facilities operated by the Government of the United States in the Republic of the Marshall Islands, to the extent necessary for this purpose, except to 

the extent such access would unreasonably interfere with the exercise of the authority and responsibility of the Government of the United States under Title Three. 

(b) The Government of the United States, in turn, shall be granted access to the 

Republic of the Marshall Islands for the purpose of gathering data necessary to discharge its obligations under this Article, except to the extent such access would unreasonably interfere with the exercise of the authority and responsibility of the Government of the Republic of the Marshall Islands under Title One, and to the extent 

necessary for this purpose shall be granted access to documents and other information to the same extent similar access is provided the Government of the Republic 

of the Marshall Islands under the Freedom of Information Act, 5 U.S.C. 552. 

(c) The Government of the Republic of the Marshall Islands shall not impede efforts by the Government of the United States to comply with applicable standards 

and procedures. 

Article VII 

General Legal Provisions 

Section 171

Except as provided in this Compact, as amended, or its related agreements, the 

application of the laws of the United States to the Trust Territory of the Pacific Islands by virtue of the Trusteeship Agreement ceased with respect to the Marshall 

Islands on October 21, 1986, the date the Compact went into effect.

Section 172

(a) Every citizen of the Republic of the Marshall Islands who is not a resident 

of the United States shall enjoy the rights and remedies under the laws of the 

United States enjoyed by any non-resident alien. 

(b) The Government of the Republic of the Marshall Islands and every citizen of 

the Republic of the Marshall Islands shall be considered to be a ‘‘person’’ within the 

meaning of the Freedom of Information Act, 5 U.S.C. 552, and of the judicial review 

provisions of the Administrative Procedure Act, 5 U.S.C. 701-706, except that only 

the Government of the Republic of the Marshall Islands may seek judicial review 

under the Administrative Procedure Act or judicial enforcement under the Freedom 

52

of Information Act when such judicial review or enforcement relates to the activities 

of the Government of the United States governed by sections 161 and 162. 

Section 173

The Governments of the United States and the Republic of the Marshall Islands 

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

Government of the Republic of the Marshall Islands in the United States pursuant 

to this Compact, Compact, as amended, and its related agreements. 

Section 174

Except as otherwise provided in this Compact, as amended, and its related agreements: 

(a) The Government of the Republic of the Marshall Islands, and its agencies 

and officials, shall be immune from the jurisdiction of the courts of the United 

States, and the Government of the United States, and its agencies and officials, 

shall be immune from the jurisdiction of the courts of the Republic of the Marshall Islands. 

(b) The Government of the United States accepts responsibility for and shall 

pay: 

(1) any unpaid money judgment rendered by the High Court of the Trust 

Territory of the Pacific Islands against the Government of the United 

States with regard to any cause of action arising as a result of acts or omissions of the Government of the Trust Territory of the Pacific Islands or the 

Government of the United States prior to October 21, 1986; 

(2) any claim settled by the claimant and the Government of the Trust 

Territory of the Pacific Islands but not paid as of the October 21, 1986; and 

(3) settlement of any administrative claim or of any action before a court 

of the Trust Territory of the Pacific Islands or the Government of the 

United States, arising as a result of acts or omissions of the Government 

of the Trust Territory of the Pacific Islands or the Government of the 

United States. 

(c) Any claim not referred to in section 174(b) and arising from an act or omission of the Government of the Trust Territory of the Pacific Islands or the Government of the United States prior to the effective date of the Compact shall 

be adjudicated in the same manner as a claim adjudicated according to section 

174(d). In any claim against the Government of the Trust Territory of the Pacific Islands, the Government of the United States shall stand in the place of 

the Government of the Trust Territory of the Pacific Islands. A judgment on any 

claim referred to in section 174(b) or this subsection, not otherwise satisfied by 

the Government of the United States, may be presented for certification to the 

United States Court of Appeals for the Federal Circuit, or its successor courts, 

which shall have jurisdiction therefore, notwithstanding the provisions of 28 

U.S.C. 1502, and which court’s decisions shall be reviewable as provided by the 

laws of the United States. The United States Court of Appeals for the Federal 

Circuit shall certify such judgment, and order payment thereof, unless it finds, 

after a hearing, that such judgment is manifestly erroneous as to law or fact, 

or manifestly excessive. In either of such cases the United States Court of Appeals for the Federal Circuit shall have jurisdiction to modify such judgment. 

(d) The Government of the Republic of the Marshall Islands shall not be immune from the jurisdiction of the courts of the United States, and the Government of the United States shall not be immune from the jurisdiction of the 

courts of the Republic of the Marshall Islands in any civil case in which an exception to foreign state immunity is set forth in the Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.) or its successor statutes. 

Section 175

(a) A separate agreement, which shall come into effect simultaneously with this 

Compact, as amended, and shall have the force of law, shall govern mutual assistance and cooperation in law enforcement matters, including the pursuit, capture, 

imprisonment and extradition of fugitives from justice and the transfer of prisoners, 

as well as other law enforcement matters. In the United States, the laws of the 

United States governing international extradition, including 18 U.S.C. 3184, 3186, 

and 3188–95, shall be applicable to the extradition of fugitives under the separate 

agreement, and the laws of the United States governing the transfer of prisoners, 

including 18 U.S.C. 4100–15, shall be applicable to the transfer of prisoners under 

the separate agreement; and 

(b) A separate agreement, which shall come into effect simultaneously with this 

Compact, as amended, and shall have the force of law, shall govern requirements 

53

relating to labor recruitment practices, including registration, reporting, suspension 

or revocation of authorization to recruit persons for employment in the United 

States, and enforcement for violations of such requirements. 

Section 176

The Government of the Republic of the Marshall Islands confirms that final judgments in civil cases rendered by any court of the Trust Territory of the Pacific Islands shall continue in full force and effect, subject to the constitutional power of 

the courts of the Republic of the Marshall Islands to grant relief from judgments 

in appropriate cases. 

Section 177

Section 177 of the Compact entered into force with respect to the Marshall Islands 

on October 21, 1986 as follows: ‘‘(a) The Government of the United States accepts the responsibility for compensation owing to citizens of the Marshall Islands, or the Federated States of 

Micronesia, (or Palau) for loss or damage to property and person of the citizens 

of the Marshall Islands, or the Federated States of Micronesia, resulting from 

the nuclear testing program which the Government of the United States conducted in the Northern Marshall Islands between June 30, 1946, and August 

18, 1958. 

(b) The Government of the United States and the Government of the Marshall 

Islands shall set forth in a separate agreement provisions for the just and adequate settlement of all such claims which have arisen in regard to the Marshall 

Islands and its citizens and which have not as yet been compensated or which 

in the future may arise, for the continued administration by the Government 

of the United States of direct radiation related medical surveillance and treatment programs and radiological monitoring activities and for such additional 

programs and activities as may be mutually agreed, and for the assumption by 

the Government of the Marshall Islands of responsibility for enforcement of limitations on the utilization of affected areas developed in cooperation with the 

Government of the United States and for the assistance by the Government of 

the United States in the exercise of such responsibility as may be mutually 

agreed. This separate agreement shall come into effect simultaneously with this 

Compact and shall remain in effect in accordance with its own terms. 

(c) The Government of the United States shall provide to the Government of 

the Marshall Islands, on a grant basis, the amount of $150 million to be paid 

and distributed in accordance with the separate agreement referred to in this 

Section, and shall provide the services and programs set forth in this separate 

agreement, the language of which is incorporated into this Compact.’’

The Compact, as amended, makes no changes to, and has no effect upon, Section 

177 of the Compact, nor does the Compact, as amended, change or affect the separate agreement referred to in Section 177 of the Compact including Articles IX and 

X of that separate agreement, and measures taken by the parties thereunder. 

Section 178

(a) The Federal agencies of the Government of the United States that provide 

services and related programs in the Republic of the Marshall Islands pursuant to 

Title Two are authorized to settle and pay tort claims arising in the Republic of the 

Marshall Islands from the activities of such agencies or from the acts or omissions 

of the employees of such agencies. Except as provided in section 178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply exclusively to such administrative settlements and payments. 

(b) Claims under section 178(a) that cannot be settled under section 178(a) shall 

be disposed of exclusively in accordance with Article II of Title Four. Arbitration 

awards rendered pursuant to this subsection shall be paid out of funds under 31 

U.S.C. 1304. 

(c) The Government of the United States and the Government of the Republic of 

the Marshall Islands shall, in the separate agreement referred to in section 231, 

provide for: 

(1) the administrative settlement of claims referred to in section 178(a), including designation of local agents in each State of the Republic of the Marshall 

Islands; such agents to be empowered to accept, investigate and settle such 

claims, in a timely manner, as provided in such separate agreements; and 

(2) arbitration, referred to in section 178(b), in a timely manner, at a site convenient to the claimant, in the event a claim is not otherwise settled pursuant 

to section 178(a). 

(d) The provisions of section 174(d) shall not apply to claims covered by this section. 

(e) Except as otherwise explicitly provided by law of the United States, this Compact, as amended, or its related agreements, neither the Government of the United 

States, its instrumentalities, nor any person acting on behalf of the Government of 

54

the United States, shall be named a party in any action based on, or arising out 

of, the activity or activities of a recipient of any grant or other assistance provided 

by the Government of the United States (or the activity or activities of the recipient’s agency or any other person or entity acting on behalf of the recipient). 

Section 179

(a) The courts of the Republic of the Marshall Islands shall not exercise criminal 

jurisdiction over the Government of the United States, or its instrumentalities. 

(b) The courts of the Republic of the Marshall Islands shall not exercise criminal 

jurisdiction over any person if the Government of the United States provides notification to the Government of the Republic of the Marshall Islands that such person 

was acting on behalf of the Government of the United States, for actions taken in 

furtherance of section 221 or 224 of this amended Compact, or any other provision 

of law authorizing financial, program, or service assistance to the Republic of the 

Marshall Islands. 

TITLE TWO 

ECONOMIC RELATIONS 

Article I 

Grant Assistance 

Section 211—Annual Grant Assistance 

(a) In order to assist the Government of the Republic of the Marshall Islands in 

its efforts to promote the economic advancement and budgetary self-reliance of its 

people, and in recognition of the special relationship that exists between the Republic of the Marshall Islands and the United States, the Government of the United 

States shall provide assistance on a grant basis for a period of twenty years in the 

amounts set forth in section 217, commencing on the effective date of this Compact, 

as amended. Such grants shall be used for assistance in education, health care, the 

environment, public sector capacity building, and private sector development, or for 

other areas as mutually agreed, with priorities in the education and health care sectors. Consistent with the medium-term budget and investment framework described 

in subsection (f) of this section, the proposed division of this amount among the 

identified areas shall require the concurrence of both the Government of the United 

States and the Government of the Republic of the Marshall Islands, through the 

Joint Economic Management and Financial Accountability Committee described in 

section 214. The Government of the United States shall disburse the grant assistance and monitor the use of such grant assistance in accordance with the provisions 

of this Article and an Agreement Concerning Procedures for the Implementation of 

United States Economic Assistance Provided in the Compact, as Amended, of Free 

Association Between the Government of the United States of America and the Government of the Republic of the Marshall Islands (‘‘Fiscal Procedures Agreement’’) 

which shall come into effect simultaneously with this Compact, as amended. 

(1) EDUCATION.—United States grant assistance shall be made available in 

accordance with the strategic framework described in subsection (f) of this section to support and improve the educational system of the Republic of the Marshall Islands and develop the human, financial, and material resources necessary for the Republic of the Marshall Islands to perform these services. Emphasis should be placed on advancing a quality basic education system. 

(2) HEALTH.—United States grant assistance shall be made available in accordance with the strategic framework described in subsection (f) of this section 

to support and improve the delivery of preventive, curative and environmental 

care and develop the human, financial, and material resources necessary for the 

Republic of the Marshall Islands to perform these services. 

(3) PRIVATE SECTOR DEVELOPMENT.—United States grant assistance shall be 

made available in accordance with the strategic framework described in subsection (f) of this section to support the efforts of the Republic of the Marshall 

Islands to attract foreign investment and increase indigenous business activity 

by vitalizing the commercial environment, ensuring fair and equitable application of the law, promoting adherence to core labor standards, maintaining 

progress toward privatization of state-owned and partially state-owned enterprises, and engaging in other reforms. 

(4) CAPACITY BUILDING IN THE PUBLIC SECTOR.—United States grant assistance shall be made available in accordance with the strategic framework described in subsection (f) of this section to support the efforts of the Republic of 

the Marshall Islands to build effective, accountable and transparent national 

and local government and other public sector institutions and systems. 

55

(5) ENVIRONMENT.—United States grant assistance shall be made available in 

accordance with the strategic framework described in subsection (f) of this section to increase environmental protection; establish and manage conservation 

areas; engage in environmental infrastructure planning, design construction 

and operation; and to involve the citizens of the Republic of the Marshall Islands in the process of conserving their country’s natural resources. 

(b) KWAJALEIN ATOLL.— (1) Of the total grant assistance made available under subsection (a) of this 

section, the amount specified herein shall be allocated annually from fiscal year 

2004 through fiscal year 2023 (and thereafter in accordance with the Agreement 

between the Government of the United States and the Government of the Republic of the Marshall Islands Regarding Military Use and Operating Rights) 

to advance the objectives and specific priorities set forth in subsections (a) and 

(d) of this section and the Fiscal Procedures Agreement, to address the special 

needs of the community at Ebeye, Kwajalein Atoll and other Marshallese communities within Kwajalein Atoll. This United States grant assistance shall be 

made available, in accordance with the medium-term budget and investment 

framework described in subsection (f) of this section, to support and improve the 

infrastructure and delivery of services and develop the human and material resources necessary for the Republic of the Marshall Islands to carry out its responsibility to maintain such infrastructure and deliver such services. The 

amount of this assistance shall be $3,100,000, with an inflation adjustment as 

provided in section 218, from fiscal year 2004 through fiscal year 2013 and the 

fiscal year 2013 level of funding, with an inflation adjustment as provided in 

section 218, will be increased by $2 million for fiscal year 2014. The fiscal year 

2014 level of funding, with an inflation adjustment as provided in section 218, 

will be made available from fiscal year 2015 through fiscal year 2023 (and 

thereafter as noted above). 

(2) The Government of the United States shall also provide to the Government of the Republic of the Marshall Islands, in conjunction with section 321(a) 

of this Compact, as amended, an annual payment from fiscal year 2004 through 

fiscal year 2023 (and thereafter in accordance with the Agreement between the 

Government of the United States and the Government of the Republic of the 

Marshall Islands Regarding Military Use and Operating Rights) of $1.9 million. 

This grant assistance will be subject to the Fiscal Procedures Agreement and 

will be adjusted for inflation under section 218 and used to address the special 

needs of the community at Ebeye, Kwajalein Atoll and other Marshallese communities within Kwajalein Atoll with emphasis on the Kwajalein landowners, 

as described in the Fiscal Procedures Agreement. 

(3) Of the total grant assistance made available under subsection (a) of this 

section, and in conjunction with section 321(a) of the Compact, as amended, 

$200,000, with an inflation adjustment as provided in section 218, shall be allocated annually from fiscal year 2004 through fiscal year 2023 (and thereafter 

as provided in the Agreement between the Government of the United States 

and the Government of the Republic of the Marshall Islands Regarding Military 

Use and Operating Rights) for a grant to support increased participation of the 

Government of the Republic of the Marshall Islands Environmental Protection 

Authority in the annual U.S. Army Kwajalein Atoll Environmental Standards 

Survey and to promote a greater Government of the Republic of the Marshall 

Islands capacity for independent analysis of the Survey’s findings and conclusions. 

(c) HUMANITARIAN ASSISTANCE-REPUBLIC OF THE MARSHALL ISLANDS PROGRAM.—

In recognition of the special development needs of the Republic of the Marshall Islands, the Government of the United States shall make available to the Government 

of the Republic of the Marshall Islands, on its request and to be deducted from the 

grant amount made available under subsection (a) of this section, a Humanitarian 

Assistance—Republic of the Marshall Islands (‘‘HARMI’’) Program with emphasis on 

health, education, and infrastructure (including transportation), projects and such 

other projects as mutually agreed. The terms and conditions of the HARMI shall 

be set forth in the Agreement Regarding the Military Use and Operating Rights of 

the Government of the United States in the Republic of the Marshall Islands Concluded Pursuant to Sections 321 and 323 of the Compact of Free Association, as 

Amended, which shall come into effect simultaneously with the amendments to this 

Compact. 

(d) PUBLIC INFRASTRUCTURE.—

(1) Unless otherwise agreed, not less than 30 percent and not more than 50 

percent of U.S. annual grant assistance provided under this section shall be 

made available in accordance with a list of specific projects included in the infrastructure improvement and maintenance plan prepared by the Government 

56

of the Republic of the Marshall Islands as part of the strategic framework described in subsection (f) of this section. 

(2) INFRASTRUCTURE MAINTENANCE FUND.—Five percent of the annual public 

infrastructure grant made available under paragraph (1) of this subsection shall 

be set aside, with an equal contribution from the Government of the Republic 

of the Marshall Islands, as a contribution to an Infrastructure Maintenance 

Fund. Administration of the Infrastructure Maintenance Fund shall be governed by the Fiscal Procedures Agreement. 

(e) DISASTER ASSISTANCE EMERGENCY FUND.—Of the total grant assistance made 

available under subsection (a) of this section, an amount of two hundred thousand 

dollars ($200,000) shall be provided annually, with an equal contribution from the 

Government of the Republic of the Marshall Islands, as a contribution to a Disaster 

Assistance Emergency Fund (‘‘DAEF’’). Any funds from the DAEF may be used only 

for assistance and rehabilitation resulting from disasters and emergencies. The 

funds will be accessed upon declaration of a State of Emergency by the Government 

of the Republic of the Marshall Islands, with the concurrence of the United States 

Chief of Mission to the Republic of the Marshall Islands. Administration of the 

DAEF shall be governed by the Fiscal Procedures Agreement. 

(f) BUDGET AND INVESTMENT FRAMEWORK.—The Government of the Republic of 

the Marshall Islands shall prepare and maintain an official medium-term budget 

and investment framework. The framework shall be strategic in nature, shall be 

continuously reviewed and updated through the annual budget process, and shall 

make projections on a multi-year rolling basis. Each of the sectors and areas named 

in subsections (a), (b), and (d) of this section, or other sectors and areas as mutually 

agreed, shall be accorded specific treatment in the framework. Those portions of the 

framework that contemplate the use of United States grant funds shall require the 

concurrence of both the Government of the United States and the Government of 

the Republic of the Marshall Islands. 

Section 212—Kwajalein Impact and Use 

The Government of the United States shall provide to the Government of the Republic of the Marshall Islands in conjunction with section 321(a) of the Compact, 

as amended, and the agreement between the Government of the United States and 

the Government of the Republic of the Marshall Islands regarding military use and 

operating rights, a payment in fiscal year 2004 of $15,000,000, with no adjustment 

for inflation. In fiscal year 2005 and through fiscal year 2013, the annual payment 

will be the fiscal year 2004 amount ($15,000,000) with an inflation adjustment as 

provided under section 218. In fiscal year 2014, the annual payment will be 

$18,000,000 (with no adjustment for inflation) or the fiscal year 2013 amount with 

an inflation adjustment under section 218, whichever is greater. For fiscal year 2015 

through fiscal year 2023 (and thereafter in accordance with the Agreement between 

the Government of the United States and the Government of the Republic of the 

Marshall Islands Regarding Military Use and Operating Rights) the annual payment will be the fiscal year 2014 amount, with an inflation adjustment as provided 

under section 218. 

Section 213—Accountability 

(a) Regulations and policies normally applicable to United States financial assistance to its state and local governments, as set forth in the Fiscal Procedures Agreement, shall apply to each grant described in section 211, and to grants administered 

under section 221 below, except as modified in the separate agreements referred to 

in section 231 of this Compact, as amended, or by U.S. law. As set forth in the Fiscal Procedures Agreement, reasonable terms and conditions, including annual performance indicators that are necessary to ensure effective use of United States assistance and reasonable progress toward achieving program objectives may be attached. In addition, the United States may seek appropriate remedies for noncompliance with the terms and conditions attached to the assistance, or for failure to comply with section 234, including withholding assistance. 

(b) The Government of the United States shall, for each fiscal year of the twenty 

years during which assistance is to be provided on a sector grant basis under section 

211 (a), grant the Government of the Republic of the Marshall Islands an amount 

equal to the lesser of (i) one half of the reasonable, properly documented cost incurred during such fiscal year to conduct the annual audit required under Article 

VIII (2) of the Fiscal Procedures Agreement or (ii) $500,000. Such amount will not 

be adjusted for inflation under section 218 or otherwise. 

Section 214—Joint Economic Management and Financial Accountability Committee 

The Governments of the United States and the Republic of the Marshall Islands 

shall establish a Joint Economic Management and Financial Accountability Committee, composed of a U.S. chair, two other members from the Government of the 

United States and two members from the Government of the Republic of the Marshall Islands. The Joint Economic Management and Financial Accountability ComVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00056 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
57

mittee shall meet at least once each year to review the audits and reports required 

under this Title and the Fiscal Procedures Agreement, evaluate the progress made 

by the Republic of the Marshall Islands in meeting the objectives identified in its 

framework described in subsection (f) of section 211, with particular focus on those 

parts of the framework dealing with the sectors and areas identified in subsection 

(a) of section 211, identify problems encountered, and recommend ways to increase 

the effectiveness of U.S. assistance made available under this Title. The establishment and operations of the Joint Economic Management and Financial Accountability Committee shall be governed by the Fiscal Procedures Agreement. 

Section 215—Annual Report 

The Government of the Republic of the Marshall Islands shall report annually to 

the President of the United States on the use of United States sector grant assistance and other assistance and progress in meeting mutually agreed program and 

economic goals. The Joint Economic Management and Financial Accountability 

Committee shall review and comment on the report and make appropriate recommendations based thereon. 

Section 216—Trust Fund 

(a) The United States shall contribute annually for twenty years from the effective 

date of the Compact, as amended, in the amounts set forth in section 217 into a 

trust fund established in accordance with the Agreement Between the Government 

of the United States of America and the Government of the Republic of the Marshall 

Islands Implementing Section 216 and Section 217 of the Compact, as Amended, Regarding a Trust Fund (‘‘Trust Fund Agreement’’), which shall come into effect simultaneously with this Compact, as amended. Upon termination of the annual grant 

assistance under section 211 (a), (d) and (e), the earnings of the fund shall thereafter be used for the purposes described in section 211 or as otherwise mutually 

agreed. 

(b) The United States contribution into the Trust Fund described in subsection 

(a) of this section is conditioned on the Government of the Republic of the Marshall 

Islands contributing to the Trust Fund at least $25,000,000, on the effective date 

of the Trust Fund Agreement or on October 1, 2003, whichever is later, $2,500,000 

prior to October 1, 2004, and $2,500,000 prior to October 1, 2005. Any funds received by the Republic of the Marshall Islands under section 111(d) of Public Law 

99–239 (January 14, 1986), or successor provisions, would be contributed to the 

Trust Fund as a Republic of the Marshall Islands’ contribution. 

(c) The terms regarding the investment and management of funds and use of the 

income of the Trust Fund shall be governed by the Trust Fund Agreement. Funds 

derived from United States investment shall not be subject to Federal or state taxes 

in the United States or any taxes in the Republic of the Marshall Islands. The Trust 

Fund Agreement shall also provide for annual reports to the Government of the 

United States and to the Government of the Republic of the Marshall Islands. The 

Trust Fund Agreement shall provide for appropriate distributions of trust fund proceeds to the Republic of the Marshall Islands and for appropriate remedies for the 

failure of the Republic of the Marshall Islands to use income of the Trust Fund for 

the annual grant purposes set forth in section 211. These remedies may include the 

return to the United States of the present market value of its contributions to the 

Trust Fund and the present market value of any undistributed income on the contributions of the United States. If this Compact, as amended, is terminated, the provisions of sections 451–453 of the Compact, as amended, and the Trust Fund Agreement shall govern treatment of any U.S. contributions to the Trust Fund or accrued 

income thereon. 

Section 217—Annual Grant Funding and Trust Fund Contributions 

The funds described in sections 211, 212, 213(b), and 216 shall be made available 

as follows:

[In millions of dollars] 

Fiscal 

year 

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

58

[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 

2012 31.2 .5 11 15.0 57.7

2013 30.7 .5 11.5 15.0 57.7

2014 32.2 .5 12 18.0 62.7

2015 31.7 .5 12.5 18.0 62.7

2016 31.2 .5 13 18.0 62.7

2017 30.7 .5 13.5 18.0 62.7

2018 30.2 .5 14 18.0 62.7

2019 29.7 .5 14.5 18.0 62.7

2020 29.2 .5 15 18.0 62.7

2021 28.7 .5 15.5 18.0 62.7

2022 28.2 .5 16 18.0 62.7

2023 27.7 .5 16.5 18.0 62.7

Section 218—Inflation Adjustment 

Except as otherwise provided, the amounts stated in this Title shall be adjusted 

for each United States Fiscal Year by the percent that equals two-thirds of the percent change in the United States Gross Domestic Product Implicit Price Deflator, 

or 5 percent, whichever is less in any one year, using the beginning of Fiscal Year 

2004 as a base. 

Section 219—Carry-Over of Unused Funds 

If in any year the funds made available by the Government of the United States 

for that year pursuant to this Article are not completely obligated by the Government of the Republic of the Marshall Islands, the unobligated balances shall remain 

available in addition to the funds to be provided in subsequent years. 

Article II 

Services and Program Assistance 

Section 221

(a) SERVICES.—The Government of the United States shall make available to the 

Republic of the Marshall Islands, in accordance with and to the extent provided in 

the Federal Programs and Services Agreement referred to in Section 231, the services and related programs of: 

(1) the United States Weather Service; 

(2) the United States Postal Service; 

(3) the United States Federal Aviation Administration; 

(4) the United States Department of Transportation; and 

(5) the Department of Homeland Security, and the United States Agency for 

International Development, Office of Foreign Disaster Assistance. 

Upon the effective date of this Compact, as amended, the United States Departments and Agencies named or having responsibility to provide these services and 

related programs shall have the authority to implement the relevant provisions of 

the Federal Programs and Services Agreement referred to in section 231. 

(b) PROGRAMS.—

(1) Other than the services and programs covered by subsection (a) of this section, and to the extent authorized by the Congress of the United States, the 

Government of the United States shall make available to the Republic of the 

Marshall Islands the services and programs that were available to the Republic 

of the Marshall Islands on the effective date of this Compact, as amended, to 

the extent that such services and programs continue to be available to State 

and local governments of the United States. As set forth in the Fiscal Procedures Agreement, funds provided under subsection (a) of section 211 shall be 

considered to be local revenues of the Government of the Republic of the Marshall Islands when used as the local share required to obtain Federal programs 

and services. 

(2) Unless provided otherwise by U.S. law, the services and programs described in paragraph (1) of this subsection shall be extended in accordance with 

the terms of the Federal Programs and Services Agreement. 

(c) The Government of the United States shall have and exercise such authority 

as is necessary to carry out its responsibilities under this Title and the Federal Programs and Services Agreement, including the authority to monitor and administer 

all service and program assistance provided by the United States to the Republic 

59

of the Marshall Islands. The Federal Programs and Services Agreement shall also 

set forth the extent to which services and programs shall be provided to the Republic of the Marshall Islands. 

(d) Except as provided elsewhere in this Compact, as amended, under any separate agreement entered into under this Compact, as amended, or otherwise under 

U.S. law, all Federal domestic programs extended to or operating in the Republic 

of the Marshall Islands shall be subject to all applicable criteria, standards, reporting requirements, auditing procedures, and other rules and regulations applicable 

to such programs and services when operating in the United States. 

(e) The Government of the United States shall make available to the Republic of 

the Marshall Islands alternate energy development projects, studies, and conservation measures to the extent provided for the Freely Associated States in the laws 

of the United States. 

Section 222

The Government of the United States and the Government of the Republic of the 

Marshall Islands may agree from time to time to extend to the Republic of the Marshall Islands additional United States grant assistance, services and programs, as 

provided under the laws of the United States. Unless inconsistent with such laws, 

or otherwise specifically precluded by the Government of the United States at the 

time such additional grant assistance, services, or programs are extended, the Federal Programs and Services Agreement shall apply to any such assistance, services 

or programs. 

Section 223

The Government of the Republic of the Marshall Islands shall make available to 

the Government of the United States at no cost such land as may be necessary for 

the operations of the services and programs provided pursuant to this Article, and 

such facilities as are provided by the Government of the Republic of the Marshall 

Islands at no cost to the Government of the United States as of the effective date 

of this Compact, as amended, or as may be mutually agreed thereafter. 

Section 224

The Government of the Republic of the Marshall Islands may request, from the 

time to time, technical assistance from the Federal agencies and institutions of the 

Government of the United States, which are authorized to grant such technical assistance in accordance with its laws. If technical assistance is granted pursuant to 

such a request, the Government of the United States shall provide the technical assistance in a manner which gives priority consideration to the Republic of the Marshall Islands over other recipients not a part of the United States, its territories or 

possessions, and equivalent consideration to the Republic of the Marshall Islands 

with respect to other states in Free Association with the United States. Such assistance shall be made available on a reimbursable or non-reimbursable basis to the 

extent provided by United States law.

Article III 

Administrative Provisions 

Section 231

The specific nature, extent and contractual arrangements of the services and programs provided for in section 221 of this Compact, as amended, as well as the legal 

status of agencies of the Government of the United States, their civilian employees 

and contractors, and the dependents of such personnel while present in the Republic 

of the Marshall Islands, and other arrangements in connection with the assistance, 

services, or programs furnished by the Government of the United States, are set 

forth in a Federal Programs and Services Agreement which shall come into effect 

simultaneously with this Compact, as amended. 

Section 232

The Government of the United States, in consultation with the Government of the 

Republic of the Marshall Islands, shall determine and implement procedures for the 

periodic audit of all grants and other assistance made under Article I of this Title 

and of all funds expended for the services and programs provided under Article II 

of this Title. Further, in accordance with the Fiscal Procedures Agreement described 

in subsection (a) of section 211, the Comptroller General of the United States shall 

have such powers and authorities as described in sections 103(m) and 110(c) of Public Law 99–239, 99 Stat. 1777–78, and 99 Stat. 1799 (January 14, 1986). 

Section 233

Approval of this Compact, as amended, by the Government of the United States, 

in accordance with its constitutional processes, shall constitute a pledge by the 

United States that the sums and amounts specified as grants in section 211 of this 

Compact, as amended, shall be appropriated and paid to the Republic of the MarVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00059 Fmt 6659 Sfmt 6621 E:\HR\OC\HR262P3.XXX HR262P3
60

shall Islands for such period as those provisions of this Compact, as amended, remain in force, provided that the Republic of the Marshall Islands complies with the 

terms and conditions of this Title and related subsidiary agreements. 

Section 234

The Government of the Republic of the Marshall Islands pledges to cooperate 

with, permit, and assist if reasonably requested, designated and authorized representatives of the Government of the United States charged with investigating 

whether Compact funds, or any other assistance authorized under this Compact, as 

amended, have, or are being, used for purposes other than those set forth in this 

Compact, as amended, or its subsidiary agreements. In carrying out this investigative authority, such United States Government representatives may request that 

the Government of the Republic of the Marshall Islands subpoena documents and 

records and compel testimony in accordance with the laws and Constitution of the 

Republic of the Marshall Islands. Such assistance by the Government of the Republic of the Marshall Islands to the Government of the United States shall not be unreasonably withheld. The obligation of the Government of the Marshall Islands to 

fulfill its pledge herein is a condition to its receiving payment of such funds or other 

assistance authorized under this Compact, as amended. The Government of the 

United States shall pay any reasonable costs for extraordinary services executed by 

the Government of the Marshall Islands in carrying out the provisions of this section. 

Article IV 

Trade 

Section 241

The Republic of the Marshall Islands is not included in the customs territory of 

the United States. 

Section 242

The President shall proclaim the following tariff treatment for articles imported 

from the Republic of the Marshall Islands which shall apply during the period of 

effectiveness of this title: 

(a) Unless otherwise excluded, articles imported from the Republic of the 

Marshall Islands, subject to the limitations imposed under section 503(b) of title 

V of the Trade Act of 1974 (19 U.S.C. 2463(b)), shall be exempt from duty. 

(b) Only tuna in airtight containers provided for in heading 1604.14.22 of the 

Harmonized Tariff Schedule of the United States that is imported from the Republic of the Marshall Islands and the Federated States of Micronesia during 

any calendar year not to exceed 10 percent of apparent United States consumption of tuna in airtight containers during the immediately preceding calendar 

year, as reported by the National Marine Fisheries Service, shall be exempt 

from duty; but the quantity of tuna given duty-free treatment under this paragraph for any calendar year shall be counted against the aggregated quantity 

of tuna in airtight containers that is dutiable under rate column numbered 1 

of such heading 1604.14.22 for that calendar year. 

(c) The duty-free treatment provided under subsection (a) shall not apply to: 

(1) watches, clocks, and timing apparatus provided for in Chapter 91, excluding heading 9113, of the Harmonized Tariff Schedule of the United 

States; 

(2) buttons (whether finished or not finished) provided for in items 

9606.21.40 and 9606.29.20 of such Schedule; 

(3) textile and apparel articles which are subject to textile agreements; 

and 

(4) footwear, handbags, luggage, flat goods, work gloves, and leather 

wearing apparel which were not eligible articles for purposes of title V of 

the Trade Act of 1974 (19 U.S.C. 2461, et seq.) on April 1, 1984. 

(d) If the cost or value of materials produced in the customs territory of the 

United States is included with respect to an eligible article which is a product 

of the Republic of the Marshall Islands, an amount not to exceed 15 percent of 

the appraised value of the article at the time it is entered that is attributable 

to such United States cost or value may be applied for duty assessment purposes toward determining the percentage referred to in section 503(a)(2) of title 

V of the Trade Act of 1974. 

Section 243

Articles imported from the Republic of the Marshall Islands which are not exempt 

from duty under subsections (a), (b), (c), and 

(d) of section 242 shall be subject to the rates of duty set forth in column numbered 1-general of the Harmonized Tariff Schedule of the United States (HTSUS). 

61

Section 244

(a) All products of the United States imported into the Republic of the Marshall 

Islands shall receive treatment no less favorable than that accorded like products 

of any foreign country with respect to customs duties or charges of a similar nature 

and with respect to laws and regulations relating to importation, exportation, taxation, sale, distribution, storage or use. 

(b) The provisions of subsection (a) shall not apply to advantages accorded by the 

Republic of the Marshall Islands by virtue of their full membership in the Pacific 

Island Countries Trade Agreement (PICTA), done on August, 18, 2001, to those governments listed in Article 26 of PICTA, as of the date the Compact, as amended, 

is signed. 

(c) Prior to entering into consultations on, or concluding, a free trade agreement 

with governments not listed in Article 26 of PICTA, the Republic of the Marshall 

Islands shall consult with the United States regarding whether or how subsection 

(a) of section 244 shall be applied. 

Article V 

Finance and Taxation 

Section 251

The currency of the United States is the official circulating legal tender of the Republic of the Marshall Islands. Should the Government of the Republic of the Marshall Islands act to institute another currency, the terms of an appropriate currency 

transitional period shall be as agreed with the Government of the United States. 

Section 252

The Government of the Republic of the Marshall Islands may, with respect to 

United States persons, tax income derived from sources within its respective jurisdiction, property situated therein, including transfers of such property by gift or at 

death, and products consumed therein, in such manner as the Government of the 

Republic of the Marshall Islands deems appropriate. The determination of the 

source of any income, or the situs of any property, shall for purposes of this Compact, as amended, be made according to the United States Internal Revenue Code. 

Section 253

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

Section 254

(a) In determining any income tax imposed by the Government of the Republic 

of the Marshall Islands, the Government of the Republic of the Marshall Islands 

shall have authority to impose tax upon income derived by a resident of the Republic of the Marshall Islands from sources without the Republic of the Marshall Islands, in the same manner and to the same extent as the Government of the Republic of the Marshall Islands imposes tax upon income derived from within its own 

jurisdiction. If the Government of the Republic of the Marshall Islands exercises 

such authority as provided in this subsection, any individual resident of the Republic of the Marshall Islands who is subject to tax by the Government of the United 

States on income which is also taxed by the Government of the Republic of the Marshall Islands shall be relieved of liability to the Government of the United States 

for the tax which, but for this subsection, would otherwise be imposed by the Government of the United States on such income. However, the relief from liability to 

the United States Government referred to in the preceding sentence means only relief in the form of the foreign tax credit (or deduction in lieu thereof) available with 

respect to the income taxes of a possession of the United States, and relief in the 

form of the exclusion under section 911 of the Internal Revenue Code of 1986. For 

purposes of this section, the term ‘‘resident of the Republic of the Marshall Islands’’

shall be deemed to include any person who was physically present in the Republic 

of the Marshall Islands for a period of 183 or more days during any taxable year. 

(b) If the Government of the Republic of the Marshall Islands subjects income to 

taxation substantially similar to that which was imposed by the Trust Territory 

Code in effect on January 1, 1980, such Government shall be deemed to have exercised the authority described in section 254(a). 

Section 255

For purposes of section 274(h)(3)(A) of the U.S. Internal Revenue Code of 1986, 

the term ‘‘North American Area’’ shall include the Republic of the Marshall Islands. 

62

TITLE THREE 

SECURITY AND DEFENSE RELATIONS 

Article I 

Authority and Responsibility 

Section 311

(a) The Government of the United States has full authority and responsibility for 

security and defense matters in or relating to the Republic of the Marshall Islands. 

(b) This authority and responsibility includes: 

(1) the obligation to defend the Republic of the Marshall Islands and its people from attack or threats thereof as the United States and its citizens are defended; 

(2) the option to foreclose access to or use of the Republic of the Marshall Islands by military personnel or for the military purposes of any third country; 

and 

(3) the option to establish and use military areas and facilities in the Republic 

of the Marshall Islands, subject to the terms of the separate agreements referred to in sections 321 and 323. 

(c) The Government of the United States confirms that it shall act in accordance 

with the principles of international law and the Charter of the United Nations in 

the exercise of this authority and responsibility.

Section 312

Subject to the terms of any agreements negotiated in accordance with sections 321 

and 323, the Government of the United States may conduct within the lands, waters 

and airspace of the Republic of the Marshall Islands the activities and operations 

necessary for the exercise of its authority and responsibility under this Title. 

Section 313

(a) The Government of the Republic of the Marshall Islands shall refrain from actions that the Government of the United States determines, after appropriate consultation with that Government, to be incompatible with its authority and responsibility for security and defense matters in or relating to the Republic of the Marshall 

Islands. 

(b) The consultations referred to in this section shall be conducted expeditiously 

at senior levels of the two Governments, and the subsequent determination by the 

Government of the United States referred to in this section shall be made only at 

senior interagency levels of the Government of the United States. 

(c) The Government of the Republic of the Marshall Islands shall be afforded, on 

an expeditious basis, an opportunity to raise its concerns with the United States 

Secretary of State personally and the United States Secretary of Defense personally 

regarding any determination made in accordance with this section. 

Section 314

(a) Unless otherwise agreed, the Government of the United States shall not, in 

the Republic of the Marshall Islands: 

(1) test by detonation or dispose of any nuclear weapon, nor test, dispose of, 

or discharge any toxic chemical or biological weapon; or 

(2) test, dispose of, or discharge any other radioactive, toxic chemical or biological materials in an amount or manner that would be hazardous to public 

health or safety. 

(b) Unless otherwise agreed, other than for transit or overflight purposes or during time of a national emergency declared by the President of the United States, 

a state of war declared by the Congress of the United States or as necessary to defend against an actual or impending armed attack on the United States, the Republic of the Marshall Islands or the Federated States of Micronesia, the Government 

of the United States shall not store in the Republic of the Marshall Islands or the 

Federated States of Micronesia any toxic chemical weapon, nor any radioactive materials nor any toxic chemical materials intended for weapons use. 

(c) Radioactive, toxic chemical, or biological materials not intended for weapons 

use shall not be affected by section 314(b). 

(d) No material or substance referred to in this section shall be stored in the Republic of the Marshall Islands except in an amount and manner which would not 

be hazardous to public health or safety. In determining what shall be an amount 

or manner which would be hazardous to public health or safety under this section, 

the Government of the United States shall comply with any applicable mutual 

agreement, international guidelines accepted by the Government of the United 

States, and the laws of the United States and their implementing regulations. 

63

(e) Any exercise of the exemption authority set forth in section 161(e) shall have 

no effect on the obligations of the Government of the United States under this section or on the application of this subsection. 

(f) The provisions of this section shall apply in the areas in which the Government 

of the Republic of the Marshall Islands exercises jurisdiction over the living resources of the seabed, subsoil or water column adjacent to its coasts. 

Section 315

The Government of the United States may invite members of the armed forces 

of other countries to use military areas and facilities in the Republic of the Marshall 

Islands, in conjunction with and under the control of United States Armed Forces. 

Use by units of the armed forces of other countries of such military areas and facilities, other than for transit and overflight purposes, shall be subject to consultation 

with and, in the case of major units, approval of the Government of the Republic 

of the Marshall Islands. 

Section 316

The authority and responsibility of the Government of the United States under 

this Title may not be transferred or otherwise assigned. 

Article II 

Defense Facilities and Operating Rights 

Section 321

(a) Specific arrangements for the establishment and use by the Government of the 

United States of military areas and facilities in the Republic of the Marshall Islands 

are set forth in separate agreements, which shall remain in effect in accordance 

with the terms of such agreements. 

(b) If, in the exercise of its authority and responsibility under this Title, the Government of the United States requires the use of areas within the Republic of the 

Marshall Islands in addition to those for which specific arrangements are concluded 

pursuant to section 321(a), it may request the Government of the Republic of the 

Marshall Islands to satisfy those requirements through leases or other arrangements. The Government of the Republic of the Marshall Islands shall sympathetically consider any such request and shall establish suitable procedures to discuss it with and provide a prompt response to the Government of the United States. 

(c) The Government of the United States recognizes and respects the scarcity and 

special importance of land in the Republic of the Marshall Islands. In making any 

requests pursuant to section 321(b), the Government of the United States shall follow the policy of requesting the minimum area necessary to accomplish the required 

security and defense purpose, of requesting only the minimum interest in real property necessary to support such purpose, and of requesting first to satisfy its requirement through public real property, where available, rather than through private 

real property. 

Section 322

The Government of the United States shall provide and maintain fixed and floating aids to navigation in the Republic of the Marshall Islands at least to the extent 

necessary for the exercise of its authority and responsibility under this Title. 

Section 323

The military operating rights of the Government of the United States and the 

legal status and contractual arrangements of the United States Armed Forces, their 

members, and associated civilians, while present in the Republic of the Marshall Islands are set forth in separate agreements, which shall remain in effect in accordance with the terms of such agreements. 

Article III 

Defense Treaties and International Security Agreements 

Section 331

Subject to the terms of this Compact, as amended, and its related agreements, the 

Government of the United States, exclusively, has assumed and enjoys, as to the 

Republic of the Marshall Islands, all obligations, responsibilities, rights and benefits 

of: 

(a) Any defense treaty or other international security agreement applied by 

the Government of the United States as Administering Authority of the Trust 

Territory of the Pacific Islands as of October 20, 1986. 

(b) Any defense treaty or other international security agreement to which the 

Government of the United States is or may become a party which it determines 

to be applicable in the Republic of the Marshall Islands. Such a determination 

64

by the Government of the United States shall be preceded by appropriate consultation with the Government of the Republic of the Marshall Islands. 

Article IV 

Service in Armed Forces of the United States 

Section 341

Any person entitled to the privileges set forth in Section 141 (with the exception 

of any person described in section 141(a)(5) who is not a citizen of the Republic of 

the Marshall Islands) shall be eligible to volunteer for service in the Armed Forces 

of the United States, but shall not be subject to involuntary induction into military 

service of the United States as long as such person has resided in the United States 

for a period of less than one year, provided that no time shall count towards this 

one year while a person admitted to the United States under the Compact, or the 

Compact, as amended, is engaged in full-time study in the United States. Any person described in section 141(a)(5) who is not a citizen of the Republic of the Marshall Islands shall be subject to United States laws relating to selective service. 

Section 342

The Government of the United States shall have enrolled, at any one time, at 

least one qualified student from the Republic of the Marshall Islands, as may be 

nominated by the Government of the Republic of the Marshall Islands, in each of: 

(a) The United States Coast Guard Academy pursuant to 14 U.S.C. 195. 

(b) The United States Merchant Marine Academy pursuant to 46 U.S.C. 

1295(b)(6), provided that the provisions of 46 U.S.C. 1295b(b)(6)(C) shall not 

apply to the enrollment of students pursuant to section 342(b) of this Compact, 

as amended. 

Article V 

General Provisions 

Section 351

(a) The Government of the United States and the Government of the Republic of 

the Marshall Islands shall continue to maintain a Joint Committee empowered to 

consider disputes arising under the implementation of this Title and its related 

agreements. 

(b) The membership of the Joint Committee shall comprise selected senior officials 

of the two Governments. The senior United States military commander in the Pacific area shall be the senior United States member of the Joint Committee. For the 

meetings of the Joint Committee, each of the two Governments may designate additional or alternate representatives as appropriate for the subject matter under consideration. 

(c) Unless otherwise mutually agreed, the Joint Committee shall meet annually 

at a time and place to be designated, after appropriate consultation, by the Government of the United States. The Joint Committee also shall meet promptly upon request of either of its members. The Joint Committee shall follow such procedures, 

including the establishment of functional subcommittees, as the members may from 

time to time agree. Upon notification by the Government of the United States, the 

Joint Committee of the United States and the Republic of the Marshall Islands shall 

meet promptly in a combined session with the Joint Committee established and 

maintained by the Government of the United States and the Government of the 

Federated States of Micronesia to consider matters within the jurisdiction of the two 

Joint Committees. 

(d) Unresolved issues in the Joint Committee shall be referred to the Governments for resolution, and the Government of the Republic of the Marshall Islands 

shall be afforded, on an expeditious basis, an opportunity to raise its concerns with 

the United States Secretary of Defense personally regarding any unresolved issue 

which threatens its continued association with the Government of the United 

States. 

Section 352

In the exercise of its authority and responsibility under Title Three, the Government of the United States shall accord due respect to the authority and responsibility of the Government of the Republic of the Marshall Islands under Titles One, 

Two and Four and to the responsibility of the Government of the Republic of the 

Marshall Islands to assure the well-being of its people. 

Section 353

(a) The Government of the United States shall not include the Government of the 

Republic of the Marshall Islands as a named party to a formal declaration of war, 

without that Government’s consent. 

65

(b) Absent such consent, this Compact, as amended, is without prejudice, on the 

ground of belligerence or the existence of a state of war, to any claims for damages 

which are advanced by the citizens, nationals or Government of the Republic of the 

Marshall Islands, which arise out of armed conflict subsequent to October 21, 1986, 

and which are: 

(5) petitions to the Government of the United States for redress; or 

(6) claims in any manner against the government, citizens, nationals or entities of any third country.

(c) Petitions under section 353(b)(1) shall be treated as if they were made by citizens of the United States. 

Section 354

(a) The Government of the United States and the Government of the Republic of 

the Marshall Islands are jointly committed to continue their security and defense 

relations, as set forth in this Title. Accordingly, it is the intention of the two countries that the provisions of this Title shall remain binding as long as this Compact, 

as amended, remains in effect, and thereafter as mutually agreed, unless earlier terminated by mutual agreement pursuant to section 441, or amended pursuant to Article III of Title Four. If at any time the Government of the United States, or the 

Government of the Republic of the Marshall Islands, acting unilaterally, terminates 

this Title, such unilateral termination shall be considered to be termination of the 

entire Compact, as amended, in which case the provisions of section 442 and 452 

(in the case of termination by the Government of the United States) or sections 443 

and 453 (in the case of termination by the Government of the Republic of the Marshall Islands), with the exception of paragraph (3) of subsection (a) of section 452 

or paragraph (3) of subsection (a) of section 453, as the case may be, shall apply. 

(b) The Government of the United States recognizes, in view of the special relationship between the Government of the United States and the Government of the 

Republic of the Marshall Islands, and in view of the existence of the separate agreement regarding mutual security concluded with the Government of the Republic of 

the Marshall Islands pursuant to sections 321 and 323, that, even if this Title 

should terminate, any attack on the Republic of the Marshall Islands during the period in which such separate agreement is in effect, would constitute a threat to the 

peace and security of the entire region and a danger to the United States. In the 

event of such an attack, the Government of the United States would take action to 

meet the danger to the United States and to the Republic of the Marshall Islands 

in accordance with its constitutional processes. 

(c) As reflected in Article 21(1)(b) of the Trust Fund Agreement, the Government 

of the United States and the Government of the Republic of the Marshall Islands 

further recognize, in view of the special relationship between their countries, that 

even if this Title should terminate, the Government of Republic of the Marshall Islands shall refrain from actions which the Government of the United States determines, after appropriate consultation with that Government, to be incompatible 

with its authority and responsibility for security and defense matters in or relating 

to the Republic of the Marshall Islands or the Federated States of Micronesia. 

TITLE FOUR 

GENERAL PROVISIONS 

Article I 

Approval and Effective Date 

Section 411

Pursuant to section 432 of the Compact and subject to subsection (e) of section 

461 of the Compact, as amended, the Compact, as amended, shall come into effect 

upon mutual agreement between the Government of the United States and the Government of the Republic of the Marshall Islands subsequent to completion of the following: 

(a) Approval by the Government of the Republic of the Marshall Islands in 

accordance with its constitutional processes. 

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

constitutional processes. 

Article II 

Conference and Dispute Resolution 

Section 421

66

The Government of the United States shall confer promptly at the request of the 

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

Section 422

In the event the Government of the United States or the Government of the Republic of the Marshall Islands, after conferring pursuant to section 421, determines 

that there is a dispute and gives written notice thereof, the two Governments shall 

make a good faith effort to resolve the dispute between themselves. 

Section 423

If a dispute between the Government of the United States and the Government 

of the Republic of the Marshall Islands cannot be resolved within 90 days of written 

notification in the manner provided in section 422, either party to the dispute may 

refer it to arbitration in accordance with section 424. 

Section 424

Should a dispute be referred to arbitration as provided for in section 423, an Arbitration Board shall be established for the purpose of hearing the dispute and rendering a decision which shall be binding upon the two parties to the dispute unless 

the two parties mutually agree that the decision shall be advisory. Arbitration shall 

occur according to the following terms: 

(a) An Arbitration Board shall consist of a Chairman and two other members, 

each of whom shall be a citizen of a party to the dispute. Each of the two Governments that is a party to the dispute shall appoint one member to the Arbitration Board. If either party to the dispute does not fulfill the appointment requirements of this section within 30 days of referral of the dispute to arbitration 

pursuant to section 423, its member on the Arbitration Board shall be selected 

from its own standing list by the other party to the dispute. Each Government 

shall maintain a standing list of 10 candidates. The parties to the dispute shall 

jointly appoint a Chairman within 15 days after selection of the other members 

of the Arbitration Board. Failing agreement on a Chairman, the Chairman shall 

be chosen by lot from the standing lists of the parties to the dispute within 5 

days after such failure. 

(b) Unless otherwise provided in this Compact, as amended, or its related 

agreements, the Arbitration Board shall have jurisdiction to hear and render its 

final determination on all disputes arising exclusively under Articles I, II, III, 

IV and V of Title One, Title Two, Title Four, and their related agreements. 

(c) Each member of the Arbitration Board shall have one vote. Each decision 

of the Arbitration Board shall be reached by majority vote. 

(d) In determining any legal issue, the Arbitration Board may have reference 

to international law and, in such reference, shall apply as guidelines the provisions set forth in Article 38 of the Statute of the International Court of Justice. 

(e) The Arbitration Board shall adopt such rules for its proceedings as it may 

deem appropriate and necessary, but such rules shall not contravene the provisions of this Compact, as amended. Unless the parties provide otherwise by mutual agreement, the Arbitration Board shall endeavor to render its decision 

within 30 days after the conclusion of arguments. The Arbitration Board shall 

make findings of fact and conclusions of law and its members may issue dissenting or individual opinions. Except as may be otherwise decided by the Arbitration Board, one-half of all costs of the arbitration shall be borne by the Government of the United States and the remainder shall be borne by the Government of the Republic of the Marshall Islands. 

Article III 

Amendment 

Section 431

The provisions of this Compact, as amended, may be further amended by mutual 

agreement of the Government of the United States and the Government of the Republic of the Marshall Islands, in accordance with their respective constitutional 

processes. 

Article IV 

Termination 

Section 441

This Compact, as amended, may be terminated by mutual agreement of the Government of the Republic of the Marshall Islands and the Government of the United 

States, in accordance with their respective constitutional processes. Such mutual 

67

termination of this Compact, as amended, shall be without prejudice to the continued application of section 451 of this Compact, as amended, and the provisions of 

the Compact, as amended, set forth therein. 

Section 442

Subject to section 452, this Compact, as amended, may be terminated by the Government of the United States in accordance with its constitutional processes. Such 

termination shall be effective on the date specified in the notice of termination by 

the Government of the United States but not earlier than six months following delivery of such notice. The time specified in the notice of termination may be extended. Such termination of this Compact, as amended, shall be without prejudice 

to the continued application of section 452 of this Compact, as amended, and the 

provisions of the Compact, as amended, set forth therein. 

Section 443

This Compact, as amended, shall be terminated by the Government of the Republic of the Marshall Islands, pursuant to its constitutional processes, subject to section 453 if the people represented by that Government vote in a plebiscite to terminate the Compact. The Government of the Republic of the Marshall Islands shall 

notify the Government of the United States of its intention to call such a plebiscite, 

which shall take place not earlier than three months after delivery of such notice. 

The plebiscite shall be administered by the Government of the Republic of the Marshall Islands in accordance with its constitutional and legislative processes, but the 

Government of the United States may send its own observers and invite observers 

from a mutually agreed party. If a majority of the valid ballots cast in the plebiscite 

favors termination, the Government of the Republic of the Marshall Islands shall, 

upon certification of the results of the plebiscite, give notice of termination to the 

Government of the United States, such termination to be effective on the date specified in such notice but not earlier than three months following the date of delivery 

of such notice. The time specified in the notice of termination may be extended. 

Article V 

Survivability 

Section 451

(a) Should termination occur pursuant to section 441, economic and other assistance by the Government of the United States shall continue only if and as mutually 

agreed by the Governments of the United States and the Republic of the Marshall 

Islands, and in accordance with the countries’ respective constitutional processes. 

(b) In view of the special relationship of the United States and the Republic of 

the Marshall Islands, as reflected in subsections (b) and (c) of section 354 of this 

Compact, as amended, and the separate agreement entered into consistent with 

those subsections, if termination occurs pursuant to section 441 prior to the twentieth anniversary of the effective date of this Compact, as amended, the United 

States shall continue to make contributions to the Trust Fund described in section 

216 of this Compact, as amended. 

(c) In view of the special relationship of the United States and the Republic of 

the Marshall Islands described in subsection (b) of this section, if termination occurs 

pursuant to section 441 following the twentieth anniversary of the effective date of 

this Compact, as amended, the Republic of the Marshall Islands shall be entitled 

to receive proceeds from the Trust Fund described in section 216 of this Compact, 

as amended, in the manner described in those provisions and the Trust Fund Agreement. 

Section 452

(a) Should termination occur pursuant to section 442 prior to the twentieth anniversary of the effective date of this Compact, as amended, the following provisions 

of this amended Compact shall remain in full force and effect until the twentieth 

anniversary of the effective date of this Compact, as amended, and thereafter as 

mutually agreed: 

(1) Article VI and sections 172, 173, 176 and 177 of Title One; 

(2) Article One and sections 232 and 234 of Title Two; 

(3) Title Three; and 

(4) Articles II, III, V and VI of Title Four. 

(b) Should termination occur pursuant to section 442 before the twentieth anniversary of the effective date of this Compact, as amended:

(1) Except as provided in paragraph (2) of this subsection and subsection (c) 

of this section, economic and other assistance by the United States shall continue only if and as mutually agreed by the Governments of the United States 

and the Republic of the Marshall Islands. 

68

(2) In view of the special relationship of the United States and the Republic 

of the Marshall Islands, as reflected in subsections (b) and (c) of section 354 of 

this Compact, as amended, and the separate agreement regarding mutual security, and the Trust Fund Agreement, the United States shall continue to make 

contributions to the Trust Fund described in section 216 of this Compact, as 

amended, in the manner described in the Trust Fund Agreement. 

(c) In view of the special relationship of the United States and the Republic of 

the Marshall Islands, as reflected in subsections 354(b) and (c) of this Compact, as 

amended, and the separate agreement regarding mutual security, and the Trust 

Fund Agreement, if termination occurs pursuant to section 442 following the twentieth anniversary of the effective date of this Compact, as amended, the Republic 

of the Marshall Islands shall continue to be eligible to receive proceeds from the 

Trust Fund described in section 216 of this Compact, as amended, in the manner 

described in those provisions and the Trust Fund Agreement. 

Section 453

(a) Should termination occur pursuant to section 443 prior to the twentieth anniversary of the effective date of this Compact, as amended, the following provisions 

of this Compact, as amended, shall remain in full force and effect until the twentieth anniversary of the effective date of this Compact, as amended, and thereafter 

as mutually agreed: 

(1) Article VI and sections 172, 173, 176 and 177 of Title One; 

(2) Sections 232 and 234 of Title Two; 

(3) Title Three; and 

(4) Articles II, III, V and VI of Title Four. 

(b) Upon receipt of notice of termination pursuant to section 443, the Government 

of the United States and the Government of the Republic of the Marshall Islands 

shall promptly consult with regard to their future relationship. Except as provided 

in subsections (c) and (d) of this section, these consultations shall determine the 

level of economic and other assistance, if any, which the Government of the United 

States shall provide to the Government of the Republic of the Marshall Islands for 

the period ending on the twentieth anniversary of the effective date of this Compact, 

as amended, and for any period thereafter, if mutually agreed. 

(c) In view of the special relationship of the United States and the Republic of 

the Marshall Islands, as reflected in subsections 354(b) and (c) of this Compact, as 

amended, and the separate agreement regarding mutual security, and the Trust 

Fund Agreement, if termination occurs pursuant to section 443 prior to the twentieth anniversary of the effective date of this Compact, as amended, the United 

States shall continue to make contributions to the Trust Fund described in section 

216 of this Compact, as amended. 

(d) In view of the special relationship of the United States and the Republic of 

the Marshall Islands, as reflected in subsections 354(b) and (c) of this Compact, as 

amended, and the separate agreement regarding mutual security, and the Trust 

Fund Agreement, if termination occurs pursuant to section 443 following the twentieth anniversary of the effective date of this Compact, as amended, the Republic 

of the Marshall Islands shall continue to be eligible to receive proceeds from the 

Trust Fund described in section 216 of this Compact, as amended, in the manner 

described in those provisions and the Trust Fund Agreement. 

Section 454

Notwithstanding any other provision of this Compact, as amended: 

(a) The Government of the United States reaffirms its continuing interest in 

promoting the economic advancement and budgetary self-reliance of the people 

of the Republic of the Marshall Islands. 

(b) The separate agreements referred to in Article II of Title Three shall remain in effect in accordance with their terms. 

Article VI 

Definition of Terms 

Section 461

For the purpose of this Compact, as amended, only, and without prejudice to the 

views of the Government of the United States or the Government of the Republic 

of the Marshall Islands as to the nature and extent of the jurisdiction of either of 

them under international law, the following terms shall have the following meanings: 

(a) ‘‘Trust Territory of the Pacific Islands’’ means the area established in the 

Trusteeship Agreement consisting of the former administrative districts of 

Kosrae, Yap, Ponape, the Marshall Islands and Truk as described in Title One, 

69

Trust Territory Code, section 1, in force on January 1, 1979. This term does not 

include the area of Palau or the Northern Mariana Islands. 

(b) ‘‘Trusteeship Agreement’’ means the agreement setting forth the terms of 

trusteeship for the Trust Territory of the Pacific Islands, approved by the Security Council of the United Nations April 2, 1947, and by the United States July 

18, 1947, entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 8 

U.N.T.S. 189. 

(c) ‘‘The Republic of the Marshall Islands’’ and ‘‘the Federated States of Micronesia’’ are used in a geographic sense and include the land and water areas to 

the outer limits of the territorial sea and the air space above such areas as now 

or hereafter recognized by the Government of the United States. 

(d) ‘‘Compact’’ means the Compact of Free Association Between the United 

States and the Federated States of Micronesia and the Marshall Islands, that 

was approved by the United States Congress in section 201 of Public Law 99–

239 (Jan. 14, 1986) and went into effect with respect to the Republic of the Marshall Islands on October 21, 1986. 

(e) ‘‘Compact, as amended’’ means the Compact of Free Association Between 

the United States and the Republic of the Marshall Islands, as amended. The 

effective date of the Compact, as amended, shall be on a date to be determined 

by the President of the United States, and agreed to by the Government of the 

Republic of the Marshall Islands, following formal approval of the Compact, as 

amended, in accordance with section 411 of this Compact, as amended. 

(f) ‘‘Government of the Republic of the Marshall Islands’’ means the Government established and organized by the Constitution of the Republic of the Marshall Islands including all the political subdivisions and entities comprising that 

Government. 

(g) ‘‘Government of the Federated States of Micronesia’’ means the Government established and organized by the Constitution of the Federated States of 

Micronesia including all the political subdivisions and entities comprising that 

Government. 

(h) The following terms shall be defined consistent with the 1978 Edition of 

the Radio Regulations of the International Telecommunications as follows: 

(1) ‘‘Radiocommunication’’ means telecommunication by means of radio 

waves. 

(2) ‘‘Station’’ means one or more transmitters or receivers or a combination of transmitters and receivers, including the accessory equipment, necessary at one location for carrying on a radiocommunication service, or the 

radio astronomy service. 

(3) ‘‘Broadcasting Service’’ means a radiocommunication service in which 

the transmissions are intended for direct reception by the general public. 

This service may include sound transmissions, television transmissions or 

other types of transmission. 

(4) ‘‘Broadcasting Station’’ means a station in the broadcasting service. 

(5) ‘‘Assignment (of a radio frequency or radio frequency channel)’’ means 

an authorization given by an administration for a radio station to use a 

radio frequency or radio frequency channel under specified conditions. 

(6) ‘‘Telecommunication’’ means any transmission, emission or reception 

of signs, signals, writings, images and sounds or intelligence of any nature 

by wire, radio, optical or other electromagnetic systems. 

(i) ‘‘Military Areas and Facilities’’ means those areas and facilities in the Republic of the Marshall Islands reserved or acquired by the Government of the 

Republic of the Marshall Islands for use by the Government of the United 

States, as set forth in the separate agreements referred to in section 321. 

(j) ‘‘Tariff Schedules of the United States’’ means the Tariff Schedules of the 

United States as amended from time to time and as promulgated pursuant to 

United States law and includes the Tariff Schedules of the United States Annotated (TSUSA), as amended. 

(k) ‘‘Vienna Convention on Diplomatic Relations’’ means the Vienna Convention on Diplomatic Relations, done April 18, 1961, 23 U.S.T. 3227, T.I.A.S. 7502, 

500 U.N.T.S. 95. 

Section 462

(a) The Government of the United States and the Government of the Republic of 

the Marshall Islands previously have concluded agreements, which shall remain in 

effect and shall survive in accordance with their terms, as follows: 

(1) Agreement Between the Government of the United States and the Government of the Marshall Islands for the Implementation of Section 177 of the Compact of Free Association; 

70

(2) Agreement Between the Government of the United States and the Government of the Marshall Islands by Persons Displaced as a Result of the United 

States Nuclear Testing Program in the Marshall Islands; 

(3) Agreement Between the Government of the United States and the Government of the Marshall Islands Regarding the Resettlement of Enjebi Island; 

(4) Agreement Concluded Pursuant to Section 234 of the Compact; and 

(5) Agreement Between the Government of the United States and the Government of the Marshall Islands Regarding Mutual Security Concluded Pursuant 

to Sections 321 and 323 of the Compact of Free Association. 

(b) The Government of the United States and the Government of the Republic of 

the Marshall Islands shall conclude prior to the date of submission of this Compact 

to the legislatures of the two countries, the following related agreements which shall 

come into effect on the effective date of this Compact, as amended, and shall survive 

in accordance with their terms, as follows: 

(1) Federal Programs and Services Agreement Between the Government of 

the United States of America and the Government of the Republic of the Marshall Islands Concluded Pursuant to Article III of Title One, Article II of Title 

Two (including Section 222), and Section 231 of the Compact of Free Association, as Amended, which include: 

(i) Postal Services and Related Programs; 

(ii) Weather Services and Related Programs; 

(iii) Civil Aviation Safety Service and Related Programs; 

(iv) Civil Aviation Economic Services and Related Programs; 

(v) United States Disaster Preparedness and Response Services and Related Programs; and 

(vi) Telecommunications Services and Related Programs. 

(2) Agreement Between the Government of the United States of America and 

the Government of the Republic of the Marshall Islands on Extradition, Mutual 

Assistance in Law Enforcement Matters and Penal Sanctions Concluded Pursuant to Section 175 (a) of the Compact of Free Association, as Amended; 

(3) Agreement Between the Government of the United States of America and 

the Government of the Republic of the Marshall Islands on Labor Recruitment 

Concluded Pursuant to Section 175 (b) of the Compact of Free Association, as 

Amended; 

(4) Agreement Concerning Procedures for the Implementation of United 

States Economic Assistance Provided in the Compact, as Amended, of Free Association Between the Government of the United States of America and the 

Government of the Republic of the Marshall Islands; 

(5) Agreement Between the Government of the United States of America and 

the Government of the Republic of the Marshall Islands Implementing Section 

216 and Section 217 of the Compact, as Amended, Regarding a Trust Fund; 

(6) Agreement Regarding the Military Use and Operating Rights of the Government of the United States in the Republic of the Marshall Islands Concluded 

Pursuant to Sections 321 and 323 of the Compact of Free Association, as 

Amended; and, 

(7) Status of Forces Agreement Between the Government of the United States 

of America and the Government of the Republic of the Marshall Islands Concluded Pursuant to Section 323 of the Compact of Free Association, as Amended. 

Section 463

(a) Except as set forth in subsection (b) of this section, any reference in this Compact, as amended, to a provision of the United States Code or the Statutes at Large 

of the United States constitutes the incorporation of the language of such provision 

into this Compact, as amended, as such provision was in force on the effective date 

of this Compact, as amended. 

(b) Any reference in Article IV and VI of Title One, and Sections 174, 175, 178 

and 342 to a provision of the United States Code or the Statutes at Large of the 

United States or to the Privacy Act, the Freedom of Information Act, the Administrative Procedure Act or the Immigration and Nationality Act constitutes the incorporation of the language of such provision into this Compact, as amended, as such 

provision was in force on the effective date of this Compact, as amended, or as it 

may be amended thereafter on a non-discriminatory basis according to the constitutional processes of the United States. 

Article VII 

Concluding Provisions 

Section 471

71

1See footnote to 48 U.S.C.A. sec. 1681. 2Pub. L. No. 99–239. 3See Presidential Proclamation 5564, dated Nov. 3, 1986, 51 Fed. Reg. 40399 (Nov. 7, 1986). 

Both the Government of the United States and the Government of the Republic 

of the Marshall Islands shall take all necessary steps, of a general or particular 

character, to ensure, no later than the entry into force date of this Compact, as 

amended, the conformity of its laws, regulations and administrative procedures with 

the provisions of this Compact, as amended, or, in the case of subsection (d) of section 141, as soon as reasonably possible thereafter. 

Section 472

This Compact, as amended, may be accepted, by signature or otherwise, by the 

Government of the United States and the Government of the Republic of the Marshall Islands. 

IN WITNESS WHEREOF, the undersigned, duly authorized, have signed this 

Compact of Free Association, as amended, which shall enter into force upon the exchange of diplomatic notes by which the Government of the United States of America and the Government of the Republic of the Marshall Islands inform each other 

about the fulfillment of their respective requirements for entry into force. 

DONE at Majuro, Republic of the Marshall Islands, in duplicate, this thirtieth 

(30) day of April, 2003, each text being equally authentic.

PURPOSE AND SUMMARY

H.J. Res. 63 would 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 amend Public 

Law 99–239. 

BACKGROUND AND NEED FOR THE LEGISLATION

BACKGROUND

In 1947, by agreement with the United Nations Security Council, 

the United States began administering certain formerly Japanesecontrolled islands groups (the Northern Mariana Islands, the Federated States of Micronesia, the Marshall Islands, and Palau) as 

the United Nations Trust Territory of the Pacific Islands.1 In 1982, 

the U.S. government and the government of the Federated States 

of Micronesia concluded a Compact of Free Association, which 

would make the Federated States an independent nation in free association with the U.S. In 1983, this compact was approved by the 

people of Micronesia in a plebiscite and in the U.S. by enactment 

of the Compact of Free Association Act of 1985.2 In 1983, the U.S. 

government and the government of the Marshall Islands concluded 

a Compact of Free Association, which would make the Marshall Islands an independent nation in free association with the U.S. Later 

that year, this compact was approved by the people of the Marshall 

Islands in a plebiscite and in the U.S. by enactment of the Compact 

of Free Association Act of 1985. The Compact of Free Association 

with the Marshall Islands went into effect on October 21, 1986; the 

Compact of Free Association with the Federated States of Micronesia went into effect on November 3, 1986.3

The Compacts provided that the U.S. would support the new nations economically with the goal of making them self-sufficient. As 

to defense matters, the Compacts provided that the U.S. would defend the nations against attack. The U.S. would also be able to establish by agreement military bases in their territory, foreclose acVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00071 Fmt 6659 Sfmt 6601 E:\HR\OC\HR262P3.XXX HR262P3
72

4Sections 311, 313 of the Compacts, found at footnote to 48 U.S.C.A. sec. 1901. 

5 Hearing of the House Resources Committee (July 17, 2002). 

6Section 141(a) of the Compacts.

cess to, or use of, the nations by military personnel or for the military purposes of third countries (military denial), and bar the nations from taking actions that were incompatible with U.S. defense 

interests (defense veto).4 As to the Marshall Islands, a major subsidiary agreement allowed the U.S. continued use of the Kwajalein 

missile test range. 

Deputy Assistant Secretary of Defense for Asian and Pacific Affairs Peter Brookes testified last year that:

The rights of the defense veto and provisions for military access and use currently contained in the Compact . . . will terminate with the expiration of the Compact on 30 September 

2003 unless the Compact is extended. The Department of Defense believes that it is in our best interest to maintain the full 

range of military access, use, and security cooperation options 

and rights that the Compact provides. 

....

[A Department of Defense] study found an important defense 

interest in continuing the use of the Kwajalein Missile Range 

and the facilities on Kwajalein Atoll. The requirements of our 

missile defense, intercontinental ballistic missile, and space operations and surveillance programs, combined with the uniqueness of Kwajalein’s location, and infrastructure investment 

make renewal of the Compact in the best interests of the Department of Defense. 

....

While it is too soon to say whether the [Federated States of Micronesia and the Marshall Islands] will be considered as candidates for increased U.S. access, basing, or operations, our 

rights under the Compact provide for sympathetic and prompt 

consideration by [their] governments of any such request by 

the U.S. In this region of potential instability and conflict, the 

U.S. right of strategic denial and the defense veto under the 

Compact are significant. Strategic denial effectively creates a 

stable and secure zone across a broad swath of the Western 

Pacific in which we can deny military basing rights to any potentially hostile third country, as well as prevent other actions 

that might be incompatible with U.S. security interests.5

Immigration Issues 

The current Compacts provide that:

[Most citizens of the the Federated States of Micronesia and 

the Marshall Islands] may enter into, lawfully engage in occupations, and establish residence as a nonimmigrant in the 

United States . . . without regard to [the requirements of the 

Immigration and Nationality Act that aliens possess passports 

and/or visas and labor certifications to enter the U.S.]. . . . 

Such persons shall be considered to have the permission of the 

Attorney General of the United States to accept employment in 

the United States.6

73

7 CIA World Factbook. 

8 Bureau of Citizenship and Immigration Services data. 

9Letter from Stuart Levey to Assistant Secretary of State for East Asian and Pacific Affairs 

James Kelley 2 (Oct. 21, 2002). 10See Immigration and Nationality Act section 101(b)(1)(F)(i). 11Pub. L. No. 106–395. 12See, e.g., Roche, Jr., Micronesia Acts to Rein in‘‘Body Brokers,’’ Balt. Sun, March 19, 2003; 

Roche, Jr., and Mariano, Ruthless Trade in‘‘Body Brokers,’’ Balt. Sun, Sept. 16, 2002; and Roche, 

Continued

A nonimmigrant is an alien who comes to the U.S. for a purely 

temporary visit, usually as a tourist or to work. If citizens of the 

Federated States of Micronesia or the Marshall Islands want to become permanent residents of the U.S., they would be eligible to the 

same extent that any alien from any other country would be eligible. 

The Federated States of Micronesia have a current estimated 

population of 108,143; the Marshall Islands have a current estimated population of 56,429.7 In fiscal year 2002, 16,707 citizens of 

Micronesia and 6,964 citizens of the Marshall Islands were admitted into the U.S. as nonimmigrants.8

In recent years, the U.S. government has expressed a number of 

concerns regarding the immigration provisions of the current Compacts:

• The ability of aliens claiming to be citizens of the nations to 

enter the U.S. without having to have passports is an open 

invitation for abuse by terrorists. In addition, the government of the Marshall Islands has in the past sold citizenship 

and passports to non-native ‘‘investors.’’ Associate Deputy 

Attorney General Stuart Levey has stated that the U.S. 

needs to ‘‘secure its borders against the entry of terrorists, 

criminals, and other aliens who may seek to exploit the Compacts as a loophole to the normal requirements to the immigration laws. In particular, [we must] improve the ability of 

the United States to address the problem presented by passport sales....’’ 9

• Americans have taken advantage of the ability of citizens of 

the nations to enter the U.S. without visas to bring in adopted children without having to meet the requirements of the 

Immigration and Nationality Act regarding foreign adoptions 

that are designed to safeguard the interests of the child and 

his or her biological parents (such as a determination by the 

Department of Homeland Security that proper care will be 

provided a child and that a child qualifies an orphan).10 In 

addition, children brought to the U.S. in this manner do not 

receive the automatic U.S. citizenship provided to foreign 

adopted children by the Adopted Orphans Citizenship Act of 

2000.11 They thus remain subject to deportation should they 

commit deportable acts. 

• Labor recruiters who arrange jobs in the United States for 

citizens of the nations have been abusing these workers, 

such as by not revealing the real nature of the jobs they will 

perform, charging prohibitive liquidated damages if the 

workers leave employment before the end of their employment contracts, and by leaving workers with no ability to return home at the conclusion of their jobs.12

74

Jr., and Mariano, Money, Migration and U.S. Missiles and Trapped in Servitude Far from Their 

Homes, Balt. Sun, Sept. 15, 2002. 13Sections 214, 215 of the Compacts. 14Section 231 of the Compacts. 15Section 431 of the Compacts. 16Section 141(c) of the amended Compacts.

The economic assistance provisions of the Compacts were to last 

for 15 years commencing on the effective date of the Compacts.13

If negotiations between the U.S. and Federated States of Micronesia and the Marshall Islands regarding extension of these provisions were not concluded by this date, the period of negotiations 

was to extend for not more than two additional years, during which 

time the U.S. government would continue to provide assistance.14

In any event, any provision of the Compacts can be amended at 

any time by mutual agreement of the parties.15

The U.S. government used the looming expiration of the economic assistance provisions to persuade the governments of the 

Federated States of Micronesia and the Marshall Islands to agree 

to changes to the immigration provisions to address the American 

concerns mentioned above during negotiations over extensions of 

the economic assistance provisions. The U.S. government and the 

government of the Federated States of Micronesia reached agreement on modifications to their Compact on May 14, 2003. Agreement was reached with the government of the Marshall Islands on 

April 30, 2003. H.J. Res. 63 is a joint resolution that amends the 

Compacts pursuant to these negotiated agreements. 

In order to address the U.S. government’s security concerns, H.J. 

Res. 63 makes four modifications:

• No person who has been granted citizenship in the Federated States of Micronesia or the Marshall Islands, or has 

been issued a Federated States of Micronesia or Marshall Islands passport pursuant to any investment, passport sale, or 

similar program, shall be eligible for admission as a nonimmigrant under the Compacts.16

• A naturalized citizen of the Federated States of Micronesia 

or the Marshall Islands is only eligible for the benefits of 

nonimmigrant entry into the U.S. under the Compacts if he 

is 1) the spouse or unmarried minor child of a citizen of the 

Federated States of Micronesia or the Marshall Islands (who 

was a citizen of the Trust Territory of the Pacific Islands before the effective date of the relevant Compact or who was 

born in the islands after the effective date of the relevant 

Compact) and has been an actual resident of the Federated 

States of Micronesia or the Marshall Islands for not less 

than 5 years after being naturalized and who holds a certificate of actual residence, and, if a spouse, has been married 

to the citizen for at least 5 years, or 2) an actual resident 

for not less than 5 years after being naturalized (as of April 

30, 2003), who continues to be an actual resident and who 

holds a certificate of actual residence and whose name is included on a list furnished by the government of the Federated States of Micronesia or the Marshall Islands not later 

than the effective date of the relevant amended Compact. In 

addition, no naturalized citizen is eligible for the imigration 

rights under the Compacts if the circumstances associated 

75

17Section 141(a) of the amended Compacts. 18Section 104(b)(2) of the amended Compacts. 19Section 104(b)(3) of the amended Compacts. 20Section 141(b) of the amended Compacts. 21Section 175(b) of the amended Compacts.

with the naturalization are such as to allow a reasonable inference on the part of appropriate officials of the U.S. that 

the naturalization was acquired primarily in order to obtain 

entry rights into the U.S.17

• The U.S. government is authorized to require that passports 

used for the purpose of seeking admission under the Compacts contain certain security enhancements funded by the 

U.S.18

• The governments of the Federated States of Micronesia and 

the Marshall Islands shall develop the capability to provide 

reliable and timely information as may be required by the 

U.S. government in enforcing criminal and security-related 

grounds of inadmissibility and deportability of the Immigration and Nationality Act, and shall provide such information.19

One modification was made to address the U.S. government’s 

concerns regarding adoptions:

• Any child who is coming to the U.S. pursuant to an adoption 

outside the country or for the purpose of adoption in the 

U.S., is ineligible for admission as a nonimmigrant under the 

Compacts. The child would have to be brought to the U.S. 

pursuant to the applicable provisions of the Immigration and 

Nationality Act.20

In order to address the U.S. government’s concerns regarding 

labor recruitment practices, separate agreements, which shall come 

into effect simultaneously with the Compacts, shall govern requirements relating to labor recruitment practices: 21

• The agreements provide that in order to safeguard the rights 

and welfare of citizens of the Federated States of Micronesia 

and the Marshall Islands seeking employment in the U.S. arranged by any recruitment or other placement service, or 

pursuant to a pre-arranged employment contract, the following requirements shall apply to any recruiter or placement service arranging or facilitating such employment in 

the U.S.:

• Every recruiter must register with the government of the 

Federated States of Micronesia or the Marshall Islands.

• The recruiter must, on a semiannual basis, update its registration by reporting the names, addresses and telephone 

numbers of all citizens of the Federated States of Micronesia or the Marshall Islands employed in the U.S. pursuant to employment arranged by the recruiter and the 

names, addresses and telephone numbers of all U.S. employers of the citizens, the fees received in connection with 

placement services, and by providing a statement as to 

whether the recruiter is receiving or has received any U.S. 

Federal or state government grant or funding in connection with the recruitment of, training, or placement of any 

76

citizens of the Federated States of Micronesia or the Marshall Islands with U.S. employers.

• The recruiter must, on a semiannual basis, update its registration by attesting that:

• it will comply with all applicable laws and regulations of 

the U.S., and of the Federated States of Micronesia and 

the Marshall Islands,

• it has not entered into any arrangement whereby the Federated States of Micronesia or Marshall Islands citizen 

employee has signed a promissory note, confession of judgment, or similar promise to pay liquidated damages should 

the employee not fully complete the terms of the recruitment or employment contract, and has not entered into 

any other debt arrangement with the employee as consideration for being placed with the U.S. employer,

• it has disclosed, and in the future will disclose, to each 

Federated States of Micronesia or Marshall Islands citizen 

recruited for employment in the U.S. the terms and conditions of employment including the duration of employment, the type of work, the rate of pay, the number of 

hours and days of week of employment, the amount of fees 

to be paid by the employee to the recruiter and any other 

employment-related fees or expenses, the taxes and related items that will be deducted from pay, all estimated 

costs that the employee will be reasonably expected to 

incur in connection with the employment, whether the employee’s transportation expenses to and from the U.S. will 

be paid by the recruiter, whether the citizen will be provided room and board (and if so, what the cost, if any, to 

the citizen will be), and whether job training will be provided to the citizen,

• it has disclosed, and in the future will disclose, to any 

Federated States of Micronesia or Marshall Islands citizen 

it proposes to recruit prior to entering into any agreement 

that the citizen has a right to change employers in the 

U.S. without any adverse immigration consequences, that 

completion of any recruitment contract shall not be a condition of the citizen’s right to remain in the U.S., that the 

citizen may have rights when the employment is terminated through no fault of the citizen at a time earlier than 

that agreed to, that entry into any liquidated damages or 

similar arrangement is forbidden, that failure to complete 

the employment contract may constitute breach of contract 

with certain legal consequences including an action by the 

recruiter for actual damages, and that the citizen may contact the U.S. Department of Labor concerning his or her 

rights and protections under U.S. law.

• The agreements provide that the governments of the Federated States of Micronesia and the Marshall Islands agree 

to suspend the privilege of any recruiter to recruit for a 1-

year period if: 1) they determine that such recruiter has materially failed to comply with the terms and conditions of an 

agreement, 2) they receive a report from the U.S. government that the recruiter has recruited or placed a citizen of 

77

22Section 141(f) of the amended Compacts. 23Sections 102(a), 103(a) of H.J. Res. 63.

theirs with a U.S. employer after being notified that the employer has violated U.S. law regarding employment standards, has engaged in a pattern of materially violating the 

terms of employment contracts with their citizens, has otherwise violated the rights of any citizen reasonably related to 

such employment or has otherwise engaged in violations of 

labor laws or safety standards, 3) they determine that suspension is otherwise appropriate, 4) the U.S. government requests such suspension, or 5) the recruiter fails to register 

as required. The governments also agree to revoke for a minimum of 5 years the privileges of any recruiter if: 1) the recruiter knowingly files a materially false registration, update, or attestation, or violates a 1-year suspension order, 2) 

they determine it is otherwise appropriate, or 3) the U.S. 

government requests this action.

• The governments of the Federated States of Micronesia and 

the Marshall Islands agree to: 1) conduct investigations as 

appropriate to determine if recruiters have materially complied with the agreements, 2) notify the U.S. government of 

suspensions or revocations, 3) cooperate with the U.S. government in any law enforcement action arising out of employment of their citizens in the U.S., 4) disseminate information about the agreement to their citizens, and 5) share 

a copy of all required documents and information with the 

U.S. government.

Finally, the amended Compacts clarify that the Immigration and 

Nationality Act applies to any person admitted or seeking admission to the U.S. under the Compacts, that nothing in the Compacts 

precludes the applicability of any ground of inadmissibility (other 

than the need for a labor certification or a visa) or deportability, 

or the right of the U.S. government to provide that admission as 

a nonimmigrant shall be for such time and under such conditions 

as it by regulations may prescribe, or the authority of the U.S. government otherwise to administer and enforce the Immigration and 

Nationality Act or other U.S. law.22

Criminal Law/Law Enforcement Provisions 

• The U.S. will provide technical and training assistance to the 

government of the Federated States of Micronesia and the 

government of the Marshall Islands to allow for the development and enforcement of their laws as well as cooperation 

with the U.S. in enforcement of U.S. laws. This section specifically identifies training and equipment for postal inspection of contraband as assistance to be provided by the U.S.23

• Any individual that:

1) served as the United States negotiator of the Compacts,

2) was an employee of the Office in the State Department 

that negotiated the Compacts, or

3) served on the interagency group coordinating United 

States policy on the Compacts negotiations.

78

24Section 107 of H.J. Res. 63. 25Section 152 of the amended Compacts. 26Section 175(a) of the amended Compacts. 27Section 179 of the amended Compacts. 28Sections 102(b)(3), 103(k)(3) of H.J. Res. 63.

is subject to the provisions of chapter 11 of title 18, U.S. 

Code, dealing with bribery, graft, and conflicts of interest.24

• For the purposes of the Foreign Agents Registration Act of 

1938, the Federated States of Micronesia and the Marshall 

Islands shall be considered countries. Any U.S. citizen or national acting as an agent for the government of the Federated States of Micronesia or the Marshall Islands without 

authority of the U.S. is subject to the requirements and the 

penalties of the Act that apply to the agent of a foreign principal. However, U.S. citizens and nationals are exempted 

from this provision if they are employed by the Federated 

States of Micronesia or the Marshall Islands and have been 

certified by the Federated States of Micronesia or the Marshall Islands as being their employees whose principal duties 

are other than those specified in the Foreign Agents Registration Act. The certifications received by the U.S. are to 

be filed with the Attorney General and made publicly available.25

• Separate agreements, having the force of law, effective simultaneously with the Compacts, will govern mutual assistance in law enforcement matters between the Federated 

States of Micronesia and the U.S. and between the Marshall 

Islands and the U.S. The extradition of fugitives and the 

transfer of prisoners are specifically enumerated as law enforcement matters governed by the agreements. In the U.S., 

U.S. law will be applicable to fugitive extradition and prisoner transfer matters.26

• The Federated States of Micronesia and the Marshall Islands shall not exercise criminal jurisdiction over the U.S. 

government. Additionally, the Federated States of Micronesia and the Marshall Islands shall not exercise criminal 

jurisdiction over any person, if the U.S. government notifies 

the government of the Federated States of Micronesia or the 

government of the Marshall Islands that such person was 

acting on behalf of the U.S., for actions taken in furtherance 

of providing assistance or services under provisions of the 

Compacts or other provision of law.27

Claims, Courts and Administrative Law Provisions 

• H.J. Res. 63 confers authority upon the Comptroller General 

to conduct audits of grants and other program assistance 

under the Compacts. It provides him and his ‘‘authorized 

representatives’’ immunity from civil and criminal process 

‘‘relating to words spoken or written and all acts performed 

by them in their official capacity . . . , except insofar at [it 

is] expressly waived by [the U.S. Government.]’’ The text further specifies that such immunity is ‘‘not for the personal 

benefit of the individuals concerned[; rather, it is intended] 

to safeguard the independent exercise of their official functions.’’ 28

79

29Section 105(f)(2) of H.J. Res. 63. 30Section 105 (o)of H.J. Res. 63. 31Sections 161, 162 of the amended Compacts. 32Section 173 of the amended Compacts.

• H.J. Res. 63 enumerates miscellaneous supplemental provisions pertaining to the Compacts. These provisions essentially clarify that Federal programs will operate on the same 

terms under the Compacts as they do in the U.S. They also 

provide that all U.S. government employees, including U.S. 

employees based on contractual, cooperative, or similar 

agreement working in the implementation and furtherance 

of the Compacts, are covered by the settlement and payment 

of tort claims provisions of the Compacts with the exception 

of employees who are tasked under the Security and Defense 

Relations title of the Compacts or tasked under a subsidiary 

agreement to that title.29

• H.J. Res. 63 provides that judgments of the courts of the 

Federated States of Micronesia, the Marshall Islands and 

Palau against the U.S. or its officers shall not be recognized 

in U.S. courts unless they are consistent with the U.S. government’s interpretation of relevant international agreements. When determining that consistency, prior Executive 

Branch assurances to Congress concerning the proper interpretation of international agreements shall be given proper 

consideration.30

• Article VI of H.J. Res. 63 addresses U.S.-Federated States of 

Micronesia and U.S.-Marshall Islands environmental protection matters. The three governments will ‘‘promote efforts to 

prevent or eliminate damage to the environment and 

biosphere....’’ The Article subsequently enumerates various Federal environmental protection laws that will apply 

under the Compacts. 

As part of the mandate set forth in Article VI, the Federated States of Micronesia and the Marshall Islands are 

empowered to seek judicial review of any (environmental) 

administrative action taken by the U.S. under the above provision. The review may be sought in U.S. district court in 

Hawaii or the District of Columbia. Decisions of these two 

courts may be appealed to the 9th Circuit or the Court of 

Appeals for the District of Columbia, respectively, as well as 

the Supreme Court.31

• Article VII of H.J. Res. 63 sets forth certain general legal 

provisions regarding the Compacts. It articulates the general 

principle that, except as otherwise provided, the governments of the U.S. and the Federated States of Micronesia 

and the Marshall Islands will adopt and enforce measures 

‘‘as may be necessary to protect the personnel, property, installations, services, programs, and official archives and documents maintained by the [three governments].’’ 32

• In general, the governments of the Federated States of Micronesia and the Marshall Islands are immune from the jurisdiction of U.S. courts and the U.S. shall not be liable in 

Federated States of Micronesia and Marshall Islands courts. 

Under this section, the U.S. accepts responsibility for certain 

80

33Section 174 of the amended Compacts. 34Section 176 of the amended Compacts. 35Section 177 of the amended Compacts. 36Section 178 of the amended Compacts. 37Section 233 of the amended Compacts.

claims decided in territorial courts before the Compacts were 

created. For other claims not defined in this section, the normal exceptions of the Foreign Sovereign Immunities Act will 

apply.33

• The Federated States of Micronesia and the Marshall Islands governments ‘‘confirm[] that final [civil] judgments 

. . . rendered by any court of the Trust Territory of the Pacific Islands shall continue in full force and effect, subject to 

the constitutional powers of [Federated States of Micronesia 

and Marshall Islands courts] to grant relief from judgment 

in appropriate cases.’’ 34

• H.J. Res 63 reiterates the agreement in the earlier Compacts 

concerning compensation by the U.S. of Federated States of 

Micronesia and Marshall Islands citizens for damages caused 

by nuclear testing in the Federated States of Micronesia or 

the Marshall Islands and acknowledges that these amendments to the Compacts in no way change that agreement.35

• The affected Federal agencies are authorized to settle and 

pay tort claims arising from acts or omissions of their employees within the Federated States of Micronesia and the 

Marshall Islands in accordance with other provisions in H.J. 

Res. 63.36

• Article II of H.J. Res. 63 addresses the matter of economic 

relations between the U.S. and the Federated States of Micronesia and the Marshall Islands. Article I, section 211, imposes the duty of the U.S. government to ‘‘provide assistance 

on a sector grant basis for [20 years to the Federated States 

of Micronesia and the Marshall Islands] . . . to promote the 

economic advancement, budgetary self-reliance, and economic self-sufficiency of its people....’’ Section 211 also 

enumerates miscellaneous programs or projects that will 

benefit from such funding (such as education, private sector 

development, and health). 

Approval of the Compacts constitutes a pledge by the U.S. 

that ‘‘the sums and amounts specified in section 211 . . . 

shall be appropriated and paid [to the Federated States of 

Micronesia and the Marshall Islands under the terms of the 

Compacts.]’’ This language may give rise to claims against 

the U.S. if such amounts are not appropriated.37

• The U.S. government may not include the Federated States 

of Micronesia government or the Marshall Islands government ‘‘as a named party to a formal declaration of war....’’

in the absence of Federated States of Micronesia or Marshall 

Islands consent. At the same time, and absent such consent, 

the Compacts will not prejudice any Federated States of Micronesia or Marshall Islands claims advanced by its citizens 

that ‘‘arise out of armed conflict subsequent to November 3, 

1986.’’ Under these terms, Federated States of Micronesia 

and Marshall Islands citizens would be permitted to petition 

81

38Section 353 of the amended Compacts. 

the U.S. for redress or submit claims against a third-party 

country, national, or entity.38

HEARINGS

No hearings were held on H.J. Res. 63 in the Committee on the 

Judiciary. 

COMMITTEE CONSIDERATION

On September 10, 2003, the Committee met in open session and 

ordered favorably reported the resolution H.J. Res. 63, as amended, 

by a voice vote, a quorum being present. The amendment consisted 

of the text of the bill as reported by the Committee on International Relations. 

VOTE OF THE COMMITTEE

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the committee notes that there were no 

recorded votes during its consideration of H.J. Res. 63. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of Rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives is inapplicable because the provisions of this legislation 

within the jurisdiction of the Committee on the Judiciary do not 

provide new budgetary authority or increased tax expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the resolution, H.J. Res. 63, the following estimate and comparison 

prepared by the Director of the Congressional Budget Office under 

section 402 of the Congressional Budget Act of 1974:

September 15, 2003. 

Hon. F. JAMES SENSENBRENNER JR., 

Chairman, Committee on the Judiciary, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed estimate for H.J. Res. 63, the Compact of Free 

Association Amendments Act of 2003, 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN. 

82

Enclosure. 

H.J. Res. 63—Compact of Free Association Amendments Act of 2003

Summary: H.J. Res. 63 would amend the Compact of Free Association of 1988 and subsidiary agreements between the United 

States and the Republic of Marshall Islands (RMI) and the Federated States of Micronesia (FSM). The compacts with RMI and 

FSM, together with the subsidiary agreements, govern the political, 

economic, and military relationship between the United States and 

these two freely associated states. Although the compact does not 

expire, certain provisions that authorized federal funding for RMI 

and FSM expired in 2001. The compact provides that expired provisions be extended until 2003 if negotiations to renew the compact 

had not concluded by 2001. 

H.J. Res. 63 would provide financial assistance for RMI and FSM 

for the next 20 years. The joint resolution would make several 

changes to the compact to increase monitoring of financial assistance, create a joint oversight committee, and establish trust funds 

to provide funds to RMI and FSM beyond 2023. The legislation also 

would provide $15 million a year for costs related to the migration 

of RMI and FSM nationals to other jurisdictions. 

Consistent with the baseline construction rules in the Balanced 

Budget and Emergency Deficit Control Act, CBO’s baseline assumes that direct spending for grants to the RMI and FSM will 

continue over the 2004–2013 period—beyond the scheduled expiration date—at an average annual cost of $157 million a year. We estimate that enacting this legislation would increase direct spending 

by around $21 million a year above the amounts assumed in our 

baseline projections. Thus, CBO estimates that enacting H.J. Res. 

63 would increase direct spending by $205 million over the 2004– 2013 period. 

In addition, the resolution would extend the authority to provide 

certain federal services for RMI and FSM for the next 20 years. 

CBO estimates that continuing those federal services would cost 

$640 million over the 2004–2013 period, subject to appropriation of 

the necessary amounts. 

H.J. Res. 63 contains an intergovernmental mandate as defined 

in the Unfunded Mandates Reform Act (UMRA), but relative to 

current law, that mandate would impose no costs on state, local, 

or tribal governments. The resolution contains no private-sector 

mandates as defined in UMRA. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.J. Res. 63 is shown in the following table. The 

costs of this legislation fall within budget function 800 (general 

government).

By fiscal year, in millions of dollars—

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 

DIRECT SPENDING

Baseline spending for Compact of Free Association under current law: 

Estimated budget authority ..................... 156 156 156 156 156 156 158 158 158 158

Estimated budget authority ..................... 156 156 156 156 156 156 158 158 158 158

Proposed changes: 

Estimated budget authority ..................... 11 13 15 18 20 22 23 25 28 30

Estimated outlays .................................... 11 13 15 18 20 22 23 25 28 30

83

By fiscal year, in millions of dollars—

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 

Spending for Compact of Free Association 

under H.J. Res. 63: 

Estimated budget authority ..................... 167 169 171 174 176 178 181 183 186 188

Estimated outlays .................................... 167 169 171 174 176 178 181 183 186 188

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Federal program services for RMI and FSM: 

Estimated authorization level .................. 60 61 62 64 65 66 68 69 70 72

Estimated outlays .................................... 45 61 62 63 65 66 67 69 70 71

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted near the start of fiscal year 2004 and that 

outlays will occur at the historical rate for grants to the RMI and 

FSM.

Direct spending 

H.J. Res. 63 would authorize and appropriate federal funds for 

economic assistance to RMI and FSM over the 2004–2003 period. 

Grant assistance would be aimed at needs for education, health, infrastructure, private-sector development, and the environment. In 

addition, the resolution would establish trust funds for RMI and 

FSM involving annual contributions for 20 years by RMI, FSM, 

and the federal government. Those trust funds are aimed at providing funds to RMI and FSM after federal grant assistance expires 

under the bill in 2023. 

CBO estimates that direct spending authorized by this legislation 

would total $1.8 billion over the 2004–2013 period. However, consistent with the Balanced Budget and Emergency Deficit Control 

Act, which specifies that certain expiring provisions should be assumed to continue for budget projection purposes, CBO’s baseline 

includes budget authority and outlays for payments to RMI and 

FSM totaling $1.6 billion over the 2004–2013 period. Thus, we estimate that H.J. Res. 63 would provide an increase in direct spending of $205 million above the baseline over the 2004–2013 period. 

The following paragraphs discuss the financial assistance that 

would be provided by this legislation. 

Republic of the Marshall Islands. Over the 2004–2013 period, 

H.J. Res. 63 would provide RMI with grants of $356 million, $99 

million in trust fund contributions, $160 million for U.S. defense 

operations on the Kwajalein Atoll, and $20 million to compensate 

the Kwajalein landholders and RMI for the use of its territory by 

the U.S. military. 

Federated States of Micronesia. Over the 2004–2013 period, H.J. 

Res. 63 would provide FSM with grants of $793 million and $195 

million in trust fund contributions. 

General Assistance. In addition, the legislation would provide 

$15 million a year for health, education, social, and infrastructure 

costs associated with the migration of RMI and FSM nationals to 

other jurisdictions. The jurisdictions that would likely receive these 

funds include Hawaii, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. CBO estimates that general assistance would cost $150 million over the 2004–2013 period. 

H.J. Res. 63 would also continue to make available services currently provided by the U.S. Postal Service (USPS) and Federal DeVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00083 Fmt 6659 Sfmt 6602 E:\HR\OC\HR262P3.XXX HR262P3
84

posit Insurance Corporation (FDIC). Spending by these agencies is 

generally not subject to the annual appropriations process. Based 

on information from the Office of Insular Affairs, CBO expects that 

mail service to RMI and FSM costs USPS approximately $1 million 

annually; this cost is reimbursed by the Department of the Interior, 

subject to the availability of appropriations. In addition, CBO expects costs to the FDIC for continuing to insure deposits in the 

Bank of the Federated States of Micronesia would be offset by fees 

assessed on the industry, resulting in no net cost to the federal 

government. 

Spending subject to appropriation 

H.J. Res. 63 also would specifically extend the authority to continue services provided to RMI and FSM by the National Weather 

Service, the Federal Aviation Administration, the Departments of 

Transportation and Homeland Security, and the Agency for International Development. Based on information from the Departments 

of State and the Interior, and the General Accounting Office (GAO), 

CBO estimates that continuing those programs for RMI and FSM 

would cost approximately $10 million annually, assuming the appropriation of the necessary amounts. 

Other federal agencies currently providing programs and services 

to RMI and FSM include the Departments of Labor, Education, Agriculture, and Health and Human Services. Most of this assistance 

is provided through those agencies’ annual appropriations. Based 

on information from GAO and the Departments of State and the 

Interior, CBO estimates that these other programs and services for 

FMI and FSM currently cost about $50 million a year. Section 109 

authorizes appropriations to continue federal services and programs to RMI and FSM, so these costs are included in this cost estimate. 

Estimated impact on state, local, and tribal governments: H.J. 

Res. 63 contains an intergovernmental mandate as defined in 

UMRA because it would explicitly prohibit states from taxing revenue generated by the trust funds established in the bill and from 

treating the funds as anything other than a nonprofit corporation. 

Since the trust funds to not currently exist, this provision would 

not affect state budgets relative to current law and the threshold 

established in UMRA ($59 million in 2003, adjusted for inflation) 

would not be exceeded. 

If H.J. Res. 63 were enacted, affected jurisdictions, including Hawaii, Guam, American Samoa, and the Commonwealth of the 

Northern Mariana Islands, would continue to incur costs for services to migrants; however, such costs are not the result of enforceable duties imposed by the federal government. The joint resolution 

would authorize $15 million per year to offset these impacts, but 

data from the jurisdictions and GAO suggest the cost may be substantially higher.

Estimated impact on the private sector: H.J. Res. 63 contains no 

private-sector mandates as defined in UMRA. 

Previous CBO estimate: On September 15, 2003, CBO transmitted a revised cost estimate of H.J. Res. 63, as reported by the 

House Committee on International Relations on September 4, 2003. 

On September 15, 2003, we transmitted a cost estimate for H.J. 

Res. 63, as ordered reported by the House Committee on Resources 

85

on September 4, 2003. All versions of this legislation would amend 

the Compact of Free Association. The House Committee on the Judiciary and the House Committee on International Relations 

versions of the legislation are similar, and our cost estimates are 

identical. However, the House Committee on Resources version 

would appropriate and authorize different amounts. Our estimates 

for the two different versions reflect those differences. 

Estimate prepared by: Federal Costs: Matthew Pickford. Impact 

on State, Local, and Tribal Governments: Sarah Puro. Impact on 

the Private Sector: Paige Piper/Bach. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

PERFORMANCE GOALS AND OBJECTIVES

The provisions of H.J. Res. 63 within the jurisdiction of the Committee on the Judiciary do not authorize funding. Therefore, clause 

3(c)(4) of rule XIII of the Rules of the House of Representatives is 

inapplicable. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds authority for this legislation in article 1, section 8, and article 3, section 1, of the Constitution. 

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

The following is a section by section analysis of the provisions of 

H.J. Res. 63 that fall within the jurisdiction of the Committee on 

the Judiciary. For a discussion of other sections, please refer to the 

report of the Committee on International Relations, H. Rept. No. 

108–262, part I. 

Section 102

Section 102(a) of H.J. Res. 63 provides that the U.S. will provide 

technical and training assistance to the government of the Federated States of Micronesia (‘‘FSM’’) to allow for the development 

and enforcement of its laws as well as cooperation with the U.S. 

in enforcement of U.S. laws. This section specifically identifies 

training and equipment for postal inspection of contraband as assistance to be provided by the U.S. 

Section 102(b) confers authority upon the Comptroller General to 

conduct audits of grants and other program assistance under the 

U.S.-FSM Compact. Paragraph (3) provides him and his ‘‘authorized representatives’’ immunity from civil and criminal process ‘‘relating to words spoken or written and all acts performed by them 

in their official capacity . . . , except insofar at [it is] expressly 

waived by [the U.S. Government.]’’ The text further specifies that 

such immunity is ‘‘not for the personal benefit of the individuals 

concerned [; rather, it is intended] to safeguard the independent exercise of their official functions.’’

Section 103

Section 103(a) of H.J. Res. 63 provides that the U.S. will provide 

technical and training assistance to the government of the Republic 

86

of the Marshall Islands (‘‘RMI’’) to allow for the development and 

enforcement of its laws as well as cooperation with the U.S. in enforcement of U.S. laws. This section specifically identifies training 

and equipment for postal inspection of contraband as assistance to 

be provided by the U.S. 

Section 103(k) confers section confers identical authority upon 

the Comptroller General to discharge his duties regarding the U.S.-

RMI Compact as section 102(b) provides regarding the U.S.-FSM 

Compact. 

Section 104

Section 104(b)(1) of H.J. Res. 63 provides that the rights of a 

bona fide naturalized citizen of the FSM or the RMI to enter the 

U.S., to lawfully engage therein in occupations, and to establish 

residence therein as a nonimmigrant, to the extent such rights are 

provided under section 141 of the Compacts, shall not be deemed 

to extend to any such naturalized citizen with respect to whom circumstances associated with the acquisition of such status of a naturalized citizen are such as to allow a reasonable inference, on the 

part of appropriate officials of the U.S. and subject to U.S. procedural requirements, that such naturalized status was acquired primarily in order to obtain such rights. Section 104(b)(2) provides that up to $250,000 of the grant assistance provided to the FSM and to the RMI pursuant to section 

211(a)(4) of the Compacts (or a greater amount of the grant, if mutually agreed between the U.S. government and the governments 

of the FSM and the RMI), shall be used for the purpose of increasing the machine-readability and security of passports issued by the 

two nations. Such funds must be obligated by September 30, 2004, 

and in the amount and manner specified by the Secretary of State 

in consultation with the Secretary of Homeland Security and, respectively, with the governments of the FSM and the RMI. The 

U.S. government is authorized to require that passports used for 

the purpose of seeking admission under section 141 of the Compacts contain the security enhancements funded by such assistance. 

Section 104(b)(3) provides that as a condition of assistance under 

the Compacts, the governments of the FSM and the RMI shall develop, prior to October 1, 2004, the capability to provide reliable 

and timely information as may reasonably be required by the U.S. 

government in enforcing criminal and security-related grounds of 

inadmissibility and deportability under the Immigration and Nationality Act (‘‘INA’’), and shall provide such information to the 

U.S. government. 

Section 104(b)(4) provides that the words ‘‘the effective date of 

this Compact, as amended’’ in sections 141(a)(3)–(4) of the Compacts shall be construed to read, ‘‘on the day prior to the enactment 

by the U.S. Congress of the Amended Compact Act.’’

Section 105

Section 105 of H.J. Res. 63 enumerates miscellaneous supplemental provisions pertaining to the Compacts. These provisions essentially clarify that Federal programs will operate on the same 

terms under the Compacts as they do in the U.S. Section 105(f)(2) 

provides that all U.S. government employees including U.S. emVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00086 Fmt 6659 Sfmt 6602 E:\HR\OC\HR262P3.XXX HR262P3
87

ployees based on contractual, cooperative, or similar agreement 

working in the implementation and furtherance of the compact are 

covered by the settlement and payment of tort claims provisions of 

the Compacts with the exception of employees who are tasked 

under the Security and Defense Relations title of the Compacts or 

tasked under a subsidiary agreement to that title. 

Section 105(o) provides that judgments of the courts of the FSM, 

the RMI, and Palau against the U.S. or its officers shall not be recognized in U.S. courts unless they are consistent with the U.S. government’s interpretation of relevant international agreements. 

When determining that consistency, prior Executive Branch assurances to Congress concerning the proper interpretation of international agreements shall be given proper consideration. 

Section 107

Section 107 of H.J. Res. 63 provides that any individual who: 1) 

served as the U.S. negotiator of the Compacts, 2) was an employee 

of the Office in the State Department that negotiated the Compacts, or 3) served on the interagency group coordinating U.S. policy on the Compacts negotiations, are subject to the provisions of 

chapter 11 of title 18, U.S. Code, dealing with bribery, graft, and 

conflicts of interest. 

Section 201

Section 201 of H.J. Res. 63 sets forth the test of the two amended 

Compacts which are identical. The rest of this discussion refers to 

the section numbers of the two Compacts as included in section 201 

of H.J. Res. 63. 

Section 141

Section 141(a) of the amended Compacts (as contained in H.J. 

Res. 63) provides that in furtherance of the special and unique relationship that exists between the U.S. and the FSM and the RMI 

under the amended Compacts, any person in the following categories may be admitted to lawfully engage in occupations and establish residence as a nonimmigrant in the U.S. and its territories 

and possessions without regard to paragraphs (5)(dealing with 

labor certifications) and (7)(B)(i)(II)(dealing with visa requirements) 

of the INA:

• a person who, on November 2, 1986, was a citizen of the 

Trust Territory of the Pacific Islands and has become and remains a citizen of the FSM or the RMI,

• a person who acquires the citizenship of the FSM or the RMI 

at birth, on or after the effective date of the Constitution of 

the FSM or the RMI, respectively,

• an immediate relative of a person referred to in the above 

two bullet points, provided that such immediate relative is 

a naturalized citizen of the FSM or the RMI who has been 

an actual resident there for not less than 5 years after attaining such naturalization and who holds a certificate of actual residence, and further provided, that, in the case of a 

spouse, such spouse has been married to the person referred 

to in the above two bullet points for at least 5 years, and further provided, that the U.S. government is satisfied that 

88

such naturalized citizen meets the requirement of subsection 

(b) of section 104 of Public Law 99–239 as it was in effect 

on the day prior to the effective date of the amended Compacts,

• a naturalized citizen of the FSM or the RMI who was an actual resident there for not less than 5 years after attaining 

such naturalization and who satisfied these requirements as 

of April 30, 2003, who continues to be an actual resident and 

holds a certificate of actual residence, and whose name is included in a list furnished by the government of the FSM or 

the RMI to the U.S. government no later than the effective 

date of the amended Compacts, in form and content acceptable to the U.S. government, provided that the U.S. government is satisfied that such naturalized citizen meets the requirement of subsection (b) of section 104 of Public Law 99–

239 as it was in effect on the day prior to the effective date 

of the amended Compacts, or

• an immediate relative of a citizen of the FSM or the RMI, 

regardless of the immediate relative’s country of citizenship 

or period of residence in the FSM or the RMI, if the citizen 

of the FSM or the RMI is serving on active duty in any 

branch of the U.S. Armed Forces or in the active reserves.

Section 141(b) provides that a person who is coming to the U.S. 

pursuant to an adoption outside the U.S., or for the purpose of 

adoption in the U.S., is ineligible for admission under the Compacts (as originally enacted and as amended). This subsection shall 

apply to any person who is or was an applicant for admission to 

the U.S. on or after March 1, 2003, including any applicant for admission in removal proceedings on or after that date, regardless of 

the date such proceedings were commenced. This subsection shall 

have no effect on the ability of the U.S. government or any U.S. 

state or local government to commence or otherwise take any action against any person or entity who has violated any law relating 

to the adoption of any person. 

Subsection 141(c) provides that no person who has been or is 

granted citizenship in the FSM or the RMI, or has been or is issued 

a FSM or RMI passport pursuant to any investment, passport sale, 

or similar program has been or shall be eligible for admission to 

the U.S. under the Compacts (as originally enacted or as amended). 

Subsection 141(d) provides that a person admitted to the U.S. 

under the Compacts (as originally enacted or as amended) shall be 

considered to have the permission of the the U.S. government to accept employment in the U.S. An unexpired FSM or RMI passport 

with unexpired documentation issued by the U.S. government evidencing admission under the Compacts (as originally enacted or as 

amended) shall be considered to be documentation establishing 

identity and employment authorization under section 274A(b)(1)(B) 

of the INA. The U.S. government will take reasonable and appropriate steps to implement and publicize this provision, and the governments of the FSM and the RMI will also take reasonable and 

appropriate steps to publicize the provision. 

Section 141(e) contains definitions of ‘‘residence,’’ ‘‘actual residence,’’ ‘‘certificate of actual residence,’’ ‘‘nonimmigrant’’ and ‘‘imVerDate jul 14 2003 16:31 Sep 17, 2003 Jkt 089380 PO 00000 Frm 00088 Fmt 6659 Sfmt 6602 E:\HR\OC\HR262P3.XXX HR262P3
89

mediate relative’’ for purposes of the Compacts (as originally enacted and as amended). 

Section 141(f) provides that the INA shall apply to any person 

admitted or seeking admission to the U.S. (other than a U.S. possession or territory where the INA does not apply) under the Compacts (as originally enacted or as amended), and nothing in the 

Compacts (as originally enacted or as amended) shall be construed 

to limit, preclude, or modify the applicability of, with respect to 

such person:

• any ground of inadmissibility or deportability under the INA 

(except for those found at sections 212(a)(5) and 

212(a)(7)(B)(i)(II) of the INA), and any defense thereto, provided that, section 237(a)(5) of the INA shall be construed 

and applied as if it reads as follows: ‘‘any alien who has been 

admitted under the Compact, or the Compact, as amended, 

who cannot show that he or she has sufficient means of support in the U.S., is deportable,’’

• the authority of the U.S. government under section 214(a)(1) 

of the INA to provide that admission as a nonimmigrant 

shall be for such time and under such conditions as the U.S. 

government may by regulations prescribe,

• the provisions of section 274A of the INA (except as modified 

by subsection 141(d)),

• the provisions of section 643 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (regarding 

habitual residence regulations), and actions taken pursuant 

to it, or

• the U.S. government’s authority otherwise to administer and 

enforce the INA or other U.S. law.

Section 141(g) provides that any authority possessed by the U.S. 

government under section 141 of the Compacts (as originally enacted or as amended) may also be exercised by the government of 

a territory or possession of the U.S. where the INA does not apply, 

to the extent such authority is lawful under a statute or regulation 

of such territory or possession that is authorized by U.S. law. 

Subsection 141(h) provides that section 141 does not confer on a 

citizen of the FSM or the RMI the right to establish the residence 

necessary for naturalization under the INA or to petition for benefits for alien relatives under the INA. Section 141, however, shall 

not prevent a citizen of the FSM or the RMI from otherwise acquiring such rights or lawful permanent resident alien status in the 

U.S. 

Section 143

Section 143 of the amended Compacts provides that any person 

who relinquishes, or otherwise loses, his U.S. nationality or citizenship, or his FSM or RMI citizenship, shall be ineligible to receive 

the privileges set forth in sections 141 and 142. Any such person 

may apply for admission to the U.S. or the FSM or the RMI, as 

the case may be, in accordance with any other applicable laws of 

the U.S. or the FSM or the RMI relating to immigration of aliens 

from other countries. The law of the FSM, the RMI, or the U.S., 

90

as the case may be, shall dictate the terms and conditions of any 

such person’s stay. 

Section 152

Section 152(a) of the amended Compacts provides that for the 

purposes of the Foreign Agents Registration Act of 1938, the FSM 

and the RMI shall be considered countries. Any U.S. citizen or national acting as an agent for the government of the FSM or the 

RMI, without authority of the U.S., is subject to the requirements 

and the penalties of the Act that apply to the agent of a foreign 

principal. 

Section 152(b) exempts from the provisions of subsection (a) U.S. 

citizens and nationals employed by the FSM or the RMI that have 

been certified by the FSM or the RMI as being employees of the 

FSM or the RMI whose principal duties are other than those specified in the Foreign Agents Registration Act. The certifications received by the U.S. are to be filed with the Attorney General and 

made publically available. 

Section 162

Article VI of H.J. Res. 63 addresses environmental protection 

matters. Section 161 of the amended Compacts states that the governments of the U.S., the FSM and the RMI will ‘‘promote efforts 

to prevent or eliminate damage to the environment and 

biosphere....’’ Section 161 subsequently enumerates various 

Federal environmental protection laws that will apply under the 

Compacts. 

As part of the mandate set forth in Article VI, section 162 empowers the FSM and the RMI to seek judicial review of any (environmental) administrative action taken by the U.S. under section 

161. The review may be sought in U.S. district court in Hawaii or 

the District of Columbia. Decisions of these two courts may be appealed to the 9th Circuit or the Court of Appeals for the District 

of Columbia, respectively, as well as the Supreme Court. 

Section 172

Section 172(a) of the amended Compacts provides that every citizen of the FSM or the RMI who is not a resident of the U.S. shall 

enjoy the rights and remedies under the laws of the U.S. enjoyed 

by any non-resident alien. 

Section 173

Article VII of H.J. Res. 63 sets forth certain general legal provisions regarding the Compacts. Section 173 of the amended Compacts articulates the general principle that, except as otherwise 

provided, the governments of the U.S., the FSM and the RMI will 

adopt and enforce measures ‘‘as may be necessary to protect the 

personnel, property, installations, services, programs, and official 

archives and documents maintained by the [three governments].’’

Section 174

Section 174 of the amended Compacts provides that, in general, 

the governments of the FSM and the RMI are immune from the jurisdiction of U.S. courts and the U.S. shall not be liable in FSM or 

RMI courts. Under this section, the U.S. accepts responsibility for 

91

certain claims decided in territorial courts before the Compacts 

were created. For other claims not defined in this section, the normal exceptions of the Foreign Sovereign Immunities Act will apply. 

Section 175

Section 175(a) of the amended Compacts provides that separate 

agreements, having the force of law, effective simultaneously with 

the Compacts, will govern mutual assistance in law enforcement 

matters between the FSM and the RMI and the U.S. The extradition of fugitives and the transfer of prisoners are specifically enumerated as law enforcement matters governed by the agreement. 

In the U.S., U.S. law will be applicable to fugitive extradition and 

prisoner transfer matters. 

Section 175(b) provides that separate agreements, which shall 

come into effect simultaneously with the amended Compacts, and 

shall have the force of law, shall govern requirements relating to 

labor recruitment practices, including registration, reporting, suspension or revocation or authorization to recruit persons for employment in the U.S., and enforcement for violations of such requirements. The separate agreements are summarized in the background section of this report. 

Section 176

Section 176 of the amended Compacts states that the FSM and 

RMI governments ‘‘confirm[] that final [civil] judgments . . . rendered by any court of the Trust Territory of the Pacific Islands 

shall continue in full force and effect, subject to the constitutional 

powers of [FSM and RMI courts] to grant relief from judgment in 

appropriate cases.’’

Section 177

Section 177 of the amended Compacts reiterates the agreement 

in the earlier Compacts concerning compensation by the U.S. of 

FSM and RMI citizens for damages caused by nuclear testing in 

the FSM and the RMI and acknowledges these amendments to the 

Compacts in no way change that agreement. 

Section 178

Section 178 of the amended Compacts authorizes the affected 

Federal agencies to settle and pay tort claims arising from acts or 

omissions of their employees within the FSM and the RMI in accordance with other provisions in H.J. Res. 63. 

Section 179

Section 179(a) of the amended Compacts provides that the FSM 

and the RMI shall not exercise criminal jurisdiction over the U.S. 

government. 

Section 179(b) provides that the FSM and the RMI shall not exercise criminal jurisdiction over any person, if the U.S. government 

notifies the government of the FSM or the RMI that such person 

was acting on behalf of the U.S., for actions taken in furtherance 

of providing assistance or services under provisions of the Compact 

or other provision of law. 

92

Section 233

Article II of H.J. Res. 63 addresses the matter of economic relations between the U.S. and the FSM and the RMI. Section 211 of 

the amended Compacts imposes the duty on the U.S. government 

to ‘‘provide assistance on a sector grant basis for [20 years to the 

FSM and the RMI] . . . to promote the economic advancement, 

budgetary self-reliance, and economic self-sufficiency of its people. . . .’’ Section 211 also enumerates miscellaneous programs or 

projects that will benefit from such funding (such as education, private sector development, and health). 

Section 233 states that approval of the Compacts constitutes a 

pledge by the U.S. that ‘‘the sums and amounts specified in section 

211 . . . shall be appropriated and paid [to the FSM and the RMI 

under the terms of the Compacts.]’’ This language may give rise to 

claims against the U.S. if such amounts are not appropriated. 

Section 353

Section 353 of the amended Compacts states that the U.S. government may not include the FSM or RMI governments ‘‘as . . . 

named part[ies] to a formal declaration of war....’’ in the absence of FSM or RMI consent. At the same time, and absent such 

consent, the Compacts will not prejudice any FSM or RMI claims 

advanced by its citizens that ‘‘arise out of armed conflict subsequent to November 3, 1986.’’ Under these terms, FSM and RMI 

citizens would be permitted to petition the U.S. for redress or submit claims against a third-party country, national, or entity. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman):

SECTION 605 OF THE TREASURY AND GENERAL 

GOVERNMENT APPROPRIATIONS ACT, 2002

(Public Law 107–67)

SEC. 605. Unless otherwise specified during the current fiscal 

year, no part of any appropriation contained in this or any other 

Act shall be used to pay the compensation of any officer or employee of the Government of the United States (including any agency the majority of the stock of which is owned by the Government 

of the United States) whose post of duty is in the continental 

United States unless such person: (1) is a citizen of the United 

States; (2) is a person in the service of the United States on the 

date of the enactment of this Act who, being eligible for citizenship, 

has filed a declaration of intention to become a citizen of the 

United States prior to such date and is actually residing in the 

United States; (3) is a person who owes allegiance to the United 

States; (4) is an alien from Cuba, Poland, South Vietnam, the countries of the former Soviet Union, or the Baltic countries lawfully 

93

admitted to the United States for permanent residence; (5) is a 

South Vietnamese, Cambodian, or Laotian refugee paroled in the 

United States after January 1, 1975; or (6) is a national of the People’s Republic of China who qualifies for adjustment of status pursuant to the Chinese Student Protection Act of 1992: Provided, That for the purpose of this section, an affidavit signed by any such 

person shall be considered prima facie evidence that the requirements of this section with respect to his or her status have been 

complied with: Provided further, That any person making a false 

affidavit shall be guilty of a felony, and, upon conviction, shall be 

fined no more than $4,000 or imprisoned for not more than 1 year, 

or both: Provided further, That the above penal clause shall be in 

addition to, and not in substitution for, any other provisions of existing law: Provided further, That any payment made to any officer 

or employee contrary to the provisions of this section shall be recoverable in action by the Federal Government. This section shall 

not apply to citizens of Ireland, Israel, øor the Republic of the Philippines,¿ the Republic of the Philippines, the Federated States of 

Micronesia, the Republic of the Marshall Islands, or the Republic 

of Palau, or to nationals of those countries allied with the United 

States in a current defense effort, or to international broadcasters 

employed by the United States Information Agency, or to temporary employment of translators, or to temporary employment in 

the field service (not to exceed 60 days) as a result of emergencies.

MARKUP TRANSCRIPT

BUSINESS MEETING 

WEDNESDAY, SEPTEMBER 10, 2003

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON THE JUDICIARY, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:07 a.m., in Room 

2141, Rayburn House Office Building, Hon. F. James Sensenbrenner, Jr. [Chairman of the Committee] presiding. 

[Intervening business.] 

Chairman SENSENBRENNER. Pursuant to notice, I now call up H. 

Joint Resolution 63, the ‘‘Compact of Free Association Amendments 

Act of 2003,’’ for purposes of markup and move its favorable recommendation to the House. Without objection, the joint resolution 

will be considered as read and open for amendment at any point, 

and the text as reported by the Committee on International Relations, which the Members have before them, will be considered as 

read and considered as the original text for purposes of amendment 

and open for amendment at any point. 

The Chair recognizes himself for 5 minutes to explain the joint 

resolution. 

Today, we are marking up H. Joint Res. 63, which amends the 

Compacts of Free Association between the United States and the 

Federated States of Micronesia and the Republic of the Marshall 

Islands. This Committee received a sequential referral to consider 

provisions of H. Joint Res. 63 under our jurisdiction after this legislation was reported by both the International Relations and Resources Committee. The referral expires on September 15th. 

94

The Compacts agreed to in the 1980s provide that the United 

States will support the island nations economically and that we can 

establish by agreement military bases in their territories and foreclose access to the nations by military personnel of third countries. 

The Compacts grant the citizens of the Federated States of Micronesia and the Republic of the Marshall Island the right to enter 

the U.S. without passports or visas as non-immigrants and work 

lawfully. In recent years, the U.S. Government has expressed a 

number of concerns regarding the immigration provisions. 

First, the ability of aliens claiming to be citizens of the two nations to enter into the U.S. without having to have passports is an 

open invitation to abuse by terrorists. In addition, the Government 

of the Marshall Islands has in the past been found to have sold 

passports. 

Second, some Americans have taken advantage of the ability of 

islanders to enter the U.S. to bring in adopted children without 

having met the requirements of the Immigration and Nationality 

Act regarding foreign adoptions, requirements that are designated 

to safeguard the interests of the adopted children and their biological parents. 

Finally, labor recruiters who arrange jobs in the United States 

for islanders have been abusing these unsophisticated workers, 

such as by not revealing the real nature of the jobs to be performed 

and charging prohibitive liquidated damages should the workers 

leave employment prematurely. 

The State Department utilized the looming expiration of the economic assistance provisions of the Compacts to persuade the nations to agree to needed modifications to the Compacts to address 

these immigration concerns and other matters. The modifications 

are continued in H. Joint Resolution 63. 

In order to address the security concerns, a number of changes 

have been made, including barring entry to the U.S. under the 

Compacts of persons who were sold passports, limiting those naturalized citizens who can enter the U.S. pursuant to the Compacts, 

and requiring passports for entry into the U.S. 

As to adoptions, any child who is coming to the U.S. pursuant 

to an adoption outside the country or for purposes of adoption in 

the U.S. is ineligible for admission as a non-immigrant under the 

Compacts. The child must be brought to the U.S. pursuant to the 

applicable provisions of the Immigration and Nationality Act. 

Separate agreements which shall come into effect simultaneously 

with the Compacts shall incorporate minimum obligations that 

labor recruiters will have to meet in order to protect Micronesians 

and Marshall Islanders who are recruited for work in the U.S. 

H. Joint Res. 63 also includes a number of provisions within the 

claims courts and criminal justice and administrative law jurisdiction of the Committee. For instance, authority is given to the 

Comptroller General to conduct audits of assistance given to the 

two nations. The Compacts are amended to provide that the governments of the nations are immune from the jurisdiction of the 

U.S. courts, and the U.S. shall not be liable in their courts, and 

Federal agencies are authorized to settle and pay tort claims deriving from acts or omissions of their employees within the two nations. 

95

As to criminal law jurisdiction, provisions of the amended Compacts allow the United States to provide technical and training assistance to the government of the two nations. This assistance will 

facilitate the development and enforcement of their respective laws 

and allow for cooperation with the U.S. and the enforcement of 

U.S. laws. 

The postal inspection of contraband, extradition of fugitives, and 

transfer of prisoners are among the mutual assistance and law enforcement matters addressed by the Compact. These issues are important not only in addressing the reality of the increased 

transnational nature of general crime, but are vitally important 

when confronting the issue of global terrorism. The joint resolution 

contains numerous beneficial changes to the Compacts of Free Association, and I urge my colleagues to support this legislation. 

The gentleman from Michigan, Mr. Conyers. 

Mr. CONYERS. Mr. Chairman, I concur with you, and I have a 

statement I’d like included in the hearing at this point. 

Chairman SENSENBRENNER. Without objection, Mr. Conyers’

statement will be included. 

[The prepared statement of Mr. Conyers follows:]

PREPARED STATEMENT OF THE HONORABLE JOHN CONYERS, JR., A REPRESENTATIVE

IN CONGRESS FROM THE STATE OF MICHIGAN, AND RANKING MEMBER, COMMITTEE

ON THE JUDICIARY

H.J. Res. 63, The Compact of Free Association with the Republic of Marshall Islands and the Federated States of Micronesia, is a non-controversial bill. The Judiciary committee has been referred the immigration provisions of this bill. 

In the 1980s the U.S. Government and the governments of the Marshall Islands 

and Micronesia approved separate compacts to make the Marshall Islands and Micronesia independent nations in free association with the U.S. Among other things, 

the Compacts provide that the Citizens of the Freely Associated States have the 

right to reside and work in the United States and its territories as lawful non-immigrants or habitual residents and are eligible to volunteer for service in the United 

States armed forces. 

H.J. Res. 63 is a joint resolution that amends the Compacts to place new restrictions on the admission of certain naturalized citizens of the Marshall Islands and 

Micronesia by requiring that the naturalized citizen has been a resident of the free 

associated state for at least 5 years. H.J. Res. 63 also prevents those who have been 

issued a Micronesia or Marshall Islands passport pursuant to any investment, passport sale, or similar program to enter the U.S. under the Compact 

Additionally, this bill authorizes the US government to require that passports 

used for the purpose of seeking admission under the Compacts contain certain security enhancement funded by the U.S. And provides that any child who is coming 

to the United States pursuant to a foreign adoption or for the purpose of being 

adopted in the United States must meet the applicable provisions of the Immigration and Nationality Act. 

H.J. Res. 63 has been approved by the International Relations Committee and has 

also been referred to the Resources Committee.

Chairman SENSENBRENNER. And without objection, all Members’

opening statements will be included. 

Are there any amendments? If there are no amendments, a reporting quorum is present. The question occurs on the motion to report House Joint Resolution 63 favorably. All in favor will say aye? 

Opposed, no? 

The ayes appear to have it. The ayes have it; the motion to report favorably is agreed to. 

Without objection, the Chairman is authorized to move to go to 

conference pursuant to House Rules. Without objection, the staff is 

directed to make any technical and conforming changes. And all 

96

Members will be given 2 days as provided by House Rules in which 

to submit additional, dissenting, supplemental, or minority views.

Æ