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[House Report 108-262]
[From the U.S. Government Publishing Office]

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
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.
        (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 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.
  (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, 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.
          (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.
          (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, 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 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 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.
          (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 Compact and 
        the U.S.-RMI Compact shall be construed to read, ``on the day 
        prior to the enactment by the United States Congress of the 
        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 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) 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.
  (f) Continuing Programs and Laws.--
          (1) Federated states of micronesia and republic of the 
        marshall islands.--In addition to the programs and services set 
        forth in section 221 of the Compact, and pursuant to section 
        222 of the Compact, the programs and services of the following 
        agencies shall be made available to the Federated States of 
        Micronesia and to the Republic of the Marshall Islands:
                  (A) 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), 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 Government of the Federated States of Micronesia 
or the Republic of the Marshall Islands if such Governments, pursuant 
to an agreement entered into with the United States, apply a preference 
on the award of contracts to United States firms, provided that the 
amount of such preference does not exceed 10 percent of the amount of 
the lowest qualified bid from a non-United States firm for such 
contract.

SEC. 107. PROHIBITION.

  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.

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
  FURTHER AGREE that the relationship of free association derives from 
and is as set forth in this Compact, as amended, by the Governments of 
the United States and the Federated States of Micronesia; and that, 
during such relationship of free association, the respective rights and 
responsibilities of the Government of the United States and the 
Government of the Federated States of Micronesia in regard to this 
relationship of free association derive from and are as set forth in 
this Compact, as amended.

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

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

                               Article II

                            Foreign Affairs

Section 121
  (a) The Government of the Federated States of Micronesia has the 
capacity to conduct foreign affairs and shall do so in its own name and 
right, except as otherwise provided in this Compact, as amended.
  (b) The foreign affairs capacity of the Government of the Federated 
States of Micronesia includes:
          (1) the conduct of foreign affairs relating to law of the sea 
        and marine resources matters, including the harvesting, 
        conservation, exploration or exploitation of living and non-
        living resources from the sea, seabed or subsoil to the full 
        extent recognized under international law;
          (2) the conduct of its commercial, diplomatic, consular, 
        economic, trade, banking, postal, civil aviation, 
        communications, and cultural relations, including negotiations 
        for the receipt of developmental loans and grants and the 
        conclusion of arrangements with other governments and 
        international and intergovernmental organizations, including 
        any matters specially benefiting its individual citizens.
  (c) The Government of the United States recognizes that the 
Government of the Federated States of Micronesia has the capacity to 
enter into, in its own name and right, treaties and other international 
agreements with governments and regional and international 
organizations.
  (d) In the conduct of its foreign affairs, the Government of the 
Federated States of Micronesia confirms that it shall act in accordance 
with principles of international law and shall settle its international 
disputes by peaceful means.
Section 122
  The Government of the United States shall support applications by the 
Government of the Federated States of Micronesia for membership or 
other participation in regional or international organizations as may 
be mutually agreed.
Section 123
  (a) In recognition of the authority and responsibility of the 
Government of the United States under Title Three, the Government of 
the Federated States of Micronesia shall consult, in the conduct of its 
foreign affairs, with the Government of the United States.
  (b) In recognition of the foreign affairs capacity of the Government 
of the Federated States of Micronesia, the Government of the United 
States, in the conduct of its foreign affairs, shall consult with the 
Government of the Federated States of Micronesia on matters that the 
Government of the United States regards as relating to or affecting the 
Government of the Federated States of Micronesia.
Section 124
  The Government of the United States may assist or act on behalf of 
the Government of the Federated States of Micronesia in the area of 
foreign affairs as may be requested and mutually agreed from time to 
time.The Government of the United States shall not be responsible to 
third parties for the actions of the Government of the Federated States 
of Micronesia undertaken with the assistance or through the agency of 
the Government of the United States pursuant to this section unless 
expressly agreed.
Section 125
  The Government of the United States shall not be responsible for nor 
obligated by any actions taken by the Government of the Federated 
States of Micronesia in the area of foreign affairs, except as may from 
time to time be expressly agreed.
Section 126
  At the request of the Government of the Federated States of 
Micronesia and subject to the consent of the receiving state, the 
Government of the United States shall extend consular assistance on the 
same basis as for citizens of the United States to citizens of the 
Federated States of Micronesia for travel outside the Federated States 
of Micronesia, the United States and its territories and possessions.
Section 127
  Except as otherwise provided in this Compact, as amended, or its 
related agreements, all obligations, responsibilities, rights and 
benefits of the Government of the United States as Administering 
Authority which resulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other international agreement to 
the Trust Territory of the Pacific Islands on November 2, 1986, are, as 
of that date, no longer assumed and enjoyed by the Government of the 
United States.

                              Article III

                             Communications

Section 131
  (a) The Government of the Federated States of Micronesia has full 
authority and responsibility to regulate its domestic and foreign 
communications, and the Government of the United States shall provide 
communications assistance as mutually agreed.
  (b) On May 24, 1993, the Government of the Federated States of 
Micronesia elected to undertake all functions previously performed by 
the Government of the United States with respect to domestic and 
foreign communications, except for those functions set forth in a 
separate agreement entered into pursuant to this section of the 
Compact, as amended.
Section 132
  The Government of the Federated States of Micronesia shall permit the 
Government of the United States to operate telecommunications services 
in the Federated States of Micronesia to the extent necessary to 
fulfill the obligations of the Government of the United States under 
this Compact, as amended, in accordance with the terms of separate 
agreements entered into pursuant to this section of the Compact, as 
amended.

                               Article IV

                              Immigration

Section 141
  (a) In furtherance of the special and unique relationship that exists 
between the United States and the Federated States of Micronesia, under 
the Compact, as amended, any person in the following categories may be 
admitted to, lawfully engage in occupations, and establish residence as 
a nonimmigrant in the United States and its territories and possessions 
(the ``United States'') without regard to paragraph (5) or 
(7)(B)(i)(II) of section 212(a) of the Immigration and Nationality Act, 
as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II):
          (1) a person who, on November 2, 1986, was a citizen of the 
        Trust Territory of the Pacific Islands, as defined in Title 53 
        of the Trust Territory Code in force on January 1, 1979, and 
        has become and remains a citizen of the Federated States of 
        Micronesia;
          (2) a person who acquires the citizenship of the Federated 
        States of Micronesia at birth, on or after the effective date 
        of the Constitution of the Federated States of Micronesia;
          (3) an immediate relative of a person referred to in 
        paragraphs (1) or (2) of this section, provided that such 
        immediate relative is a naturalized citizen of the Federated 
        States of Micronesia who has been an actual resident there for 
        not less than five years after attaining such naturalization 
        and who holds a certificate of actual residence, and further 
        provided, that, in the case of a spouse, such spouse has been 
        married to the person referred to in paragraph (1) or (2) of 
        this section for at least five years, and further provided, 
        that the Government of the United States is satisfied that such 
        naturalized citizen meets the requirement of subsection (b) of 
        section 104 of Public Law 99-239 as it was in effect on the day 
        prior to the effective date of this Compact, as amended;
          (4) a naturalized citizen of the Federated States of 
        Micronesia who was an actual resident there for not less than 
        five years after attaining such naturalization and who 
        satisfied these requirements as of April 30, 2003, who 
        continues to be an actual resident and holds a certificate of 
        actual residence, and whose name is included in a list 
        furnished by the Government of the Federated States of 
        Micronesia to the Government of the United States no later than 
        the effective date of the Compact, as amended, in form and 
        content acceptable to the Government of the United States, 
        provided, that the Government of the United States is satisfied 
        that such naturalized citizen meets the requirement of 
        subsection (b) of section 104 of Public Law 99-239 as it was in 
        effect on the day prior to the effective date of this Compact, 
        as amended; or
          (5) an immediate relative of a citizen of the Federated 
        States of Micronesia, regardless of the immediate relative's 
        country of citizenship or period of residence in the Federated 
        States of Micronesia, if the citizen of the Federated States of 
        Micronesia is serving on active duty in any branch of the 
        United States Armed Forces, or in the active reserves.
  (b) Notwithstanding subsection (a) of this section, a person who is 
coming to the United States pursuant to an adoption outside the United 
States, or for the purpose of adoption in the United States, is 
ineligible for admission under the Compact and the Compact, as amended. 
This subsection shall apply to any person who is or was an applicant 
for admission to the United States on or after March 1, 2003, including 
any applicant for admission in removal proceedings (including appellate 
proceedings) on or after March 1, 2003, regardless of the date such 
proceedings were commenced. This subsection shall have no effect on the 
ability of the Government of the United States or any United States 
State or local government to commence or otherwise take any action 
against any person or entity who has violated any law relating to the 
adoption of any person.
  (c) Notwithstanding subsection (a) of this section, no person who has 
been or is granted citizenship in the Federated States of Micronesia, 
or has been or is issued a Federated States of Micronesia passport 
pursuant to any investment, passport sale, or similar program has been 
or shall be eligible for admission to the United States under the 
Compact or the Compact, as amended.
  (d) A person admitted to the United States under the Compact, or the 
Compact, as amended, shall be considered to have the permission of the 
Government of the United States to accept employment in the United 
States. An unexpired Federated States of Micronesia passport with 
unexpired documentation issued by the Government of the United States 
evidencing admission under the Compact or the Compact, as amended, 
shall be considered to be documentation establishing identity and 
employment authorization under section 274A(b)(1)(B) of the Immigration 
and Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The 
Government of the United States will take reasonable and appropriate 
steps to implement and publicize this provision, and the Government of 
the Federated States of Micronesia will also take reasonable and 
appropriate steps to publicize this provision.
  (e) For purposes of the Compact and the Compact, as amended:
          (1) the term ``residence'' with respect to a person means the 
        person's principal, actual dwelling place in fact, without 
        regard to intent, as provided in section 101(a)(33) of the 
        Immigration and Nationality Act, as amended, 8 U.S.C. 
        1101(a)(33), and variations of the term ``residence,'' 
        including ``resident'' and ``reside,'' shall be similarly 
        construed;
          (2) the term ``actual residence'' means physical presence in 
        the Federated States of Micronesia during eighty-five percent 
        of the five-year period of residency required by section 
        141(a)(3) and (4);
          (3) the term ``certificate of actual residence'' means a 
        certificate issued to a naturalized citizen by the Government 
        of the Federated States of Micronesia stating that the citizen 
        has complied with the actual residence requirement of section 
        141(a)(3) or (4);
          (4) the term ``nonimmigrant'' means an alien who is not an 
        ``immigrant'' as defined in section 101(a)(15) of such Act, 8 
        U.S.C. 1101(a)(15); and
          (5) the term ``immediate relative'' means a spouse, or 
        unmarried son or unmarried daughter less than 21 years of age.
  (f) The Immigration and Nationality Act, as amended, shall apply to 
any person admitted or seeking admission to the United States (other 
than a United States possession or territory where such Act does not 
apply) under the Compact or the Compact, as amended, and nothing in the 
Compact or the Compact, as amended, shall be construed to limit, 
preclude, or modify the applicability of, with respect to such person:
          (1) any ground of inadmissibility or deportability under such 
        Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of such 
        Act, as provided in subsection (a) of this section), and any 
        defense thereto, provided that, section 237(a)(5) of such Act 
        shall be construed and applied as if it reads as follows: ``any 
        alien who has been admitted under the Compact, or the Compact, 
        as amended, who cannot show that he or she has sufficient means 
        of support in the United States, is deportable'';
          (2) the authority of the Government of the United States 
        under section 214(a)(1) of such Act to provide that admission 
        as a nonimmigrant shall be for such time and under such 
        conditions as the Government of the United States may by 
        regulations prescribe;
          (3) Except for the treatment of certain documentation for 
        purposes of section 274A(b)(1)(B) of such Act as provided by 
        subsection (d) of this section of the Compact, as amended, any 
        requirement under section 274A, including but not limited to 
        section 274A(b)(1)(E);
          (4) Section 643 of the Illegal Immigration Reform and 
        Immigrant Responsibility Act of 1996, Public Law 104-208, and 
        actions taken pursuant to section 643; and
          (5) the authority of the Government of the United States 
        otherwise to administer and enforce the Immigration and 
        Nationality Act, as amended, or other United States law.
  (g) Any authority possessed by the Government of the United States 
under this section of the Compact or the Compact, as amended, may also 
be exercised by the Government of a territory or possession of the 
United States where the Immigration and Nationality Act, as amended, 
does not apply, to the extent such exercise of authority is lawful 
under a statute or regulation of such territory or possession that is 
authorized by the laws of the United States.
  (h) Subsection (a) of this section does not confer on a citizen of 
the Federated States of Micronesia the right to establish the residence 
necessary for naturalization under the Immigration and Nationality Act, 
as amended, or to petition for benefits for alien relatives under that 
Act. Subsection (a) of this section, however, shall not prevent a 
citizen of the Federated States of Micronesia from otherwise acquiring 
such rights or lawful permanent resident alien status in the United 
States.
Section 142
  (a) Any citizen or national of the United States may be admitted, to 
lawfully engage in occupations, and reside in the Federated States of 
Micronesia, subject to the rights of the Government of the Federated 
States of Micronesia to deny entry to or deport any such citizen or 
national as an undesirable alien. Any determination of inadmissibility 
or deportability shall be based on reasonable statutory grounds and 
shall be subject to appropriate administrative and judicial review 
within the Federated States of Micronesia. If a citizen or national of 
the United States is a spouse of a citizen of the Federated States of 
Micronesia, the Government of the Federated States of Micronesia shall 
allow the United States citizen spouse to establish residence. Should 
the Federated States of Micronesia citizen spouse predecease the United 
States citizen spouse during the marriage, the Government of the 
Federated States of Micronesia shall allow the United States citizen 
spouse to continue to reside in the Federated States of Micronesia.
  (b) In enacting any laws or imposing any requirements with respect to 
citizens and nationals of the United States entering the Federated 
States of Micronesia under subsection (a) of this section, including 
any grounds of inadmissibility or deportability, the Government of the 
Federated States of Micronesia shall accord to such citizens and 
nationals of the United States treatment no less favorable than that 
accorded to citizens of other countries.
  (c) Consistent with subsection (a) of this section, with respect to 
citizens and nationals of the United States seeking to engage in 
employment or invest in the Federated States of Micronesia, the 
Government of the Federated States of Micronesia shall adopt 
immigration-related procedures no less favorable than those adopted by 
the Government of the United States with respect to citizens of the 
Federated States of Micronesia seeking employment in the United States.
Section 143
  Any person who relinquishes, or otherwise loses, his United States 
nationality or citizenship, or his Federated States of Micronesia 
citizenship, shall be ineligible to receive the privileges set forth in 
sections 141 and 142. Any such person may apply for admission to the 
United States or the Federated States of Micronesia, as the case may 
be, in accordance with any other applicable laws of the United States 
or the Federated States of Micronesia relating to immigration of aliens 
from other countries. The laws of the Federated States of Micronesia or 
the United States, as the case may be, shall dictate the terms and 
conditions of any such person's stay.

                               Article V

                             Representation

Section 151
  Relations between the Government of the United States and the 
Government of the Federated States of Micronesia shall be conducted in 
accordance with the Vienna Convention on Diplomatic Relations. In 
addition to diplomatic missions and representation, the Governments may 
establish and maintain other offices and designate other 
representatives on terms and in locations as may be mutually agreed.
Section 152
  (a) Any citizen or national of the United States who, without 
authority of the United States, acts as the agent of the Government of 
the Federated States of Micronesia with regard to matters specified in 
the provisions of the Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 611 et seq.), that apply with respect to an agent of 
a foreign principal shall be subject to the requirements of such Act. 
Failure to comply with such requirements shall subject such citizen or 
national to the same penalties and provisions of law as apply in the 
case of the failure of such an agent of a foreign principal to comply 
with such requirements. For purposes of the Foreign Agents Registration 
Act of 1938, the Federated States of Micronesia shall be considered to 
be a foreign country.
  (b) Subsection (a) of this section shall not apply to a citizen or 
national of the United States employed by the Government of the 
Federated States of Micronesia with respect to whom the Government of 
the Federated States of Micronesia from time to time certifies to the 
Government of the United States that such citizen or national is an 
employee of the Federated States of Micronesia whose principal duties 
are other than those matters specified in the Foreign Agents 
Registration Act of 1938, as amended, that apply with respect to an 
agent of a foreign principal. The agency or officer of the United 
States receiving such certifications shall cause them to be filed with 
the Attorney General, who shall maintain a publicly available list of 
the persons so certified.

                               Article VI

                        Environmental Protection

Section 161
  The Governments of the United States and the Federated States of 
Micronesia declare that it is their policy to promote efforts to 
prevent or eliminate damage to the environment and biosphere and to 
enrich understanding of the natural resources of the Federated States 
of Micronesia. In order to carry out this policy, the Government of the 
United States and the Government of the Federated States of Micronesia 
agree to the following mutual and reciprocal undertakings.
  (a) The Government of the United States:
          (1) shall continue to apply the environmental controls in 
        effect on November 2, 1986 to those of its continuing 
        activities subject to section 161(a)(2), unless and until those 
        controls are modified under sections 161(a)(3) and 161(a)(4);
          (2) shall apply the National Environmental Policy Act of 
        1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities 
        under the Compact, as amended, and its related agreements as if 
        the Federated States of Micronesia were the United States;
          (3) shall comply also, in the conduct of any activity 
        requiring the preparation of an Environmental Impact Statement 
        under section 161(a)(2), with standards substantively similar 
        to those required by the following laws of the United States, 
        taking into account the particular environment of the Federated 
        States of Micronesia: the Endangered Species Act of 1973, as 
        amended, 87 Stat. 884, 16 U.S.C. 1531 et seq.; the Clean Air 
        Act, as amended, 77 Stat. 392, 42 U.S.C. Supp. 7401 et seq.; 
        the Clean Water Act (Federal Water Pollution Control Act), as 
        amended, 86 Stat. 896, 33 U.S.C. 1251 et seq.; Title I of the 
        Marine Protection, Research and Sanctuaries Act of 1972 (the 
        Ocean Dumping Act), 33 U.S.C. 1411 et seq.; the Toxic 
        Substances Control Act, as amended, 15 U.S.C. 2601 et seq.; the 
        Solid Waste Disposal Act, as amended, 42 U.S.C. 6901 et seq.; 
        and such other environmental protection laws of the United 
        States and of the Federated States of Micronesia, as may be 
        mutually agreed from time to time with the Government of the 
        Federated States of Micronesia; and
          (4) shall develop, prior to conducting any activity requiring 
        the preparation of an Environmental Impact Statement under 
        section 161(a)(2), written standards and procedures, as agreed 
        with the Government of the Federated States of Micronesia, to 
        implement the substantive provisions of the laws made 
        applicable to U.S. Government activities in the Federated 
        States of Micronesia, pursuant to section 161(a)(3).
  (b) The Government of the Federated States of Micronesia shall 
continue to develop and implement standards and procedures to protect 
its environment. As a reciprocal obligation to the undertakings of the 
Government of the United States under this Article, the Federated 
States of Micronesia, taking into account its particular environment, 
shall continue to develop and implement standards for environmental 
protection substantively similar to those required of the Government of 
the United States by section 161(a)(3) prior to its conducting 
activities in the Federated States of Micronesia, substantively 
equivalent to activities conducted there by the Government of the 
United States and, as a further reciprocal obligation, shall enforce 
those standards.
  (c) Section 161(a), including any standard or procedure applicable 
thereunder, and section 161(b) may be modified or superseded in whole 
or in part by agreement of the Government of the United States and the 
Government of the Federated States of Micronesia.
  (d) In the event that an Environmental Impact Statement is no longer 
required under the laws of the United States for major Federal actions 
significantly affecting the quality of the human environment, the 
regulatory regime established under sections 161(a)(3) and 161(a)(4) 
shall continue to apply to such activities of the Government of the 
United States until amended by mutual agreement.
  (e) The President of the United States may exempt any of the 
activities of the Government of the United States under this Compact, 
as amended, and its related agreements from any environmental standard 
or procedure which may be applicable under sections 161(a)(3) and 
161(a)(4) if the President determines it to be in the paramount 
interest of the Government of the United States to do so, consistent 
with Title Three of this Compact, as amended, and the obligations of 
the Government of the United States under international law. Prior to 
any decision pursuant to this subsection, the views of the Government 
of the Federated States of Micronesia shall be sought and considered to 
the extent practicable. If the President grants such an exemption, to 
the extent practicable, a report with his reasons for granting such 
exemption shall be given promptly to the Government of the Federated 
States of Micronesia.
  (f) The laws of the United States referred to in section 161(a)(3) 
shall apply to the activities of the Government of the United States 
under this Compact, as amended, and its related agreements only to the 
extent provided for in this section.
Section 162
  The Government of the Federated States of Micronesia may bring an 
action for judicial review of any administrative agency action or any 
activity of the Government of the United States pursuant to section 
161(a) for enforcement of the obligations of the Government of the 
United States arising thereunder. The United States District Court for 
the District of Hawaii and the United States District Court for the 
District of Columbia shall have jurisdiction over such action or 
activity, and over actions brought under section 172(b) which relate to 
the activities of the Government of the United States and its officers 
and employees, governed by section 161, provided that:
          (a) Such actions may only be civil actions for any 
        appropriate civil relief other than punitive damages against 
        the Government of the United States or, where required by law, 
        its officers in their official capacity; no criminal actions 
        may arise under this section.
          (b) Actions brought pursuant to this section may be initiated 
        only by the Government of the Federated States of Micronesia.
          (c) Administrative agency actions arising under section 161 
        shall be reviewed pursuant to the standard of judicial review 
        set forth in 5 U.S.C. 706.
          (d) The United States District Court for the District of 
        Hawaii and the United States District Court for the District of 
        Columbia shall have jurisdiction to issue all necessary 
        processes, and the Government of the United States agrees to 
        submit itself to the jurisdiction of the court; decisions of 
        the United States District Court shall be reviewable in the 
        United States Court of Appeals for the Ninth Circuit or the 
        United States Court of Appeals for the District of Columbia, 
        respectively, or in the United States Supreme Court as provided 
        by the laws of the United States.
          (e) The judicial remedy provided for in this section shall be 
        the exclusive remedy for the judicial review or enforcement of 
        the obligations of the Government of the United States under 
        this Article and actions brought under section 172(b) which 
        relate to the activities of the Government of the United States 
        and its officers and employees governed by section 161.
          (f) In actions pursuant to this section, the Government of 
        the Federated States of Micronesia shall be treated as if it 
        were a United States citizen.
Section 163
  (a) For the purpose of gathering data necessary to study the 
environmental effects of activities of the Government of the United 
States subject to the requirements of this Article, the Government of 
the Federated States of Micronesia shall be granted access to 
facilities operated by the Government of the United States in the 
Federated States of Micronesia, to the extent necessary for this 
purpose, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the United States under Title Three.
  (b) The Government of the United States, in turn, shall be granted 
access to the Federated States of Micronesia for the purpose of 
gathering data necessary to discharge its obligations under this 
Article, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the Federated States of Micronesia under Title One, and to the 
extent necessary for this purpose shall be granted access to documents 
and other information to the same extent similar access is provided the 
Government of the Federated States of Micronesia under the Freedom of 
Information Act, 5 U.S.C. 552.
  (c) The Government of the Federated States of Micronesia shall not 
impede efforts by the Government of the United States to comply with 
applicable standards and procedures.

                              Article VII

                        General Legal Provisions

Section 171
  Except as provided in this Compact, as amended, or its related 
agreements, the application of the laws of the United States to the 
Trust Territory of the Pacific Islands by virtue of the Trusteeship 
Agreement ceased with respect to the Federated States of Micronesia on 
November 3, 1986, the date the Compact went into effect.
Section 172
  (a) Every citizen of the Federated States of Micronesia who is not a 
resident of the United States shall enjoy the rights and remedies under 
the laws of the United States enjoyed by any non-resident alien.
  (b) The Government of the Federated States of Micronesia and every 
citizen of the Federated States of Micronesia shall be considered to be 
a ``person'' within the meaning of the Freedom of Information Act, 5 
U.S.C. 552, and of the judicial review provisions of the Administrative 
Procedure Act, 5 U.S.C. 701-706, except that only the Government of the 
Federated States of Micronesia may seek judicial review under the 
Administrative Procedure Act or judicial enforcement under the Freedom 
of Information Act when such judicial review or enforcement relates to 
the activities of the Government of the United States governed by 
sections 161 and 162.
Section 173
  The Governments of the United States and the Federated States of 
Micronesia agree to adopt and enforce such measures, consistent with 
this Compact, as amended, and its related agreements, as may be 
necessary to protect the personnel, property, installations, services, 
programs and official archives and documents maintained by the 
Government of the United States in the Federated States of Micronesia 
pursuant to this Compact, as amended, and its related agreements and by 
the Government of the Federated States of Micronesia in the United 
States pursuant to this Compact, as amended, and its related 
agreements.
Section 174
  Except as otherwise provided in this Compact, as amended, and its 
related agreements:
          (a) The Government of the Federated States of Micronesia, and 
        its agencies and officials, shall be immune from the 
        jurisdiction of the 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.
          (c) Any claim not referred to in section 174(b) and arising 
        from an act or omission of the Government of the Trust 
        Territory of the Pacific Islands or the Government of the 
        United States prior to the effective date of the Compact shall 
        be adjudicated in the same manner as a claim adjudicated 
        according to section 174(d). In any claim against the 
        Government of the Trust Territory of the Pacific Islands, the 
        Government of the United States shall stand in the place of the 
        Government of the Trust Territory of the Pacific Islands. A 
        judgment on any claim referred to in section 174(b) or this 
        subsection, not otherwise satisfied by the Government of the 
        United States, may be presented for certification to the United 
        States Court of Appeals for the Federal Circuit, or its 
        successor courts, which shall have jurisdiction therefore, 
        notwithstanding the provisions of 28 U.S.C. 1502, and which 
        court's decisions shall be reviewable as provided by the laws 
        of the United States. The United States Court of Appeals for 
        the Federal Circuit shall certify such judgment, and order 
        payment thereof, unless it finds, after a hearing, that such 
        judgment is manifestly erroneous as to law or fact, or 
        manifestly excessive. In either of such cases the United States 
        Court of Appeals for the Federal Circuit shall have 
        jurisdiction to modify such judgment.
          (d) The Government of the Federated States of Micronesia 
        shall not be immune from the jurisdiction of the courts of the 
        United States, and the Government of the United States shall 
        not be immune from the jurisdiction of the courts of the 
        Federated States of Micronesia in any civil case in which an 
        exception to foreign state immunity is set forth in the Foreign 
        Sovereign Immunities Act (28 U.S.C. 1602 et seq.) or its 
        successor statutes.
Section 175
  (a) A separate agreement, which shall come into effect simultaneously 
with this Compact, as amended, and shall have the force of law, shall 
govern mutual assistance and cooperation in law enforcement matters, 
including the pursuit, capture, imprisonment and extradition of 
fugitives from justice and the transfer of prisoners, as well as other 
law enforcement matters. In the United States, the laws of the United 
States governing international extradition, including 18 U.S.C. 3184, 
3186 and 3188-95, shall be applicable to the extradition of fugitives 
under the separate agreement, and the laws of the United States 
governing the transfer of prisoners, including 18 U.S.C. 4100-15, shall 
be applicable to the transfer of prisoners under the separate 
agreement; and
  (b) A separate agreement, which shall come into effect simultaneously 
with this Compact, as amended, and shall have the force of law, shall 
govern requirements relating to labor recruitment practices, including 
registration, reporting, suspension or revocation of authorization to 
recruit persons for employment in the United States, and enforcement 
for violations of such requirements.
Section 176
  The Government of the Federated States of Micronesia confirms that 
final judgments in civil cases rendered by any court of the Trust 
Territory of the Pacific Islands shall continue in full force and 
effect, subject to the constitutional power of the courts of the 
Federated States of Micronesia to grant relief from judgments in 
appropriate cases.
Section 177
  Section 177 of the Compact entered into force with respect to the 
Federated States of Micronesia on November 3, 1986 as follows:
          ``(a) The Government of the United States accepts the 
        responsibility for compensation owing to citizens of the 
        Marshall Islands, or the Federated States of Micronesia, or 
        Palau for loss or damage to property and person of the citizens 
        of the Marshall Islands, or the Federated States of Micronesia, 
        resulting from the nuclear testing program which the Government 
        of the United States conducted in the Northern Marshall Islands 
        between June 30, 1946, and August 18, 1958.
          ``(b) The Government of the United States and the Government 
        of the Marshall Islands shall set forth in a separate agreement 
        provisions for the just and adequate settlement of all such 
        claims which have arisen in regard to the Marshall Islands and 
        its citizens and which have not as yet been compensated or 
        which in the future may arise, for the continued administration 
        by the Government of the United States of direct radiation 
        related medical surveillance and treatment programs and 
        radiological monitoring activities and for such additional 
        programs and activities as may be mutually agreed, and for the 
        assumption by the Government of the Marshall Islands of 
        responsibility for enforcement of limitations on the 
        utilization of affected areas developed in cooperation with the 
        Government of the United States and for the assistance by the 
        Government of the United States in the exercise of such 
        responsibility as may be mutually agreed. This separate 
        agreement shall come into effect simultaneously with this 
        Compact and shall remain in effect in accordance with its own 
        terms.
          ``(c) The Government of the United States shall provide to 
        the Government of the Marshall Islands, on a grant basis, the 
        amount of $150 million to be paid and distributed in accordance 
        with the separate agreement referred to in this Section, and 
        shall provide the services and programs set forth in this 
        separate agreement, the language of which is incorporated into 
        this Compact.''
  The Compact, as amended, makes no changes to, and has no effect upon, 
Section 177 of the Compact, nor does the Compact, as amended, change or 
affect the separate agreement referred to in Section 177 of the Compact 
including Articles IX and X of that separate agreement, and measures 
taken by the parties thereunder.
Section 178
  (a) The Federal agencies of the Government of the United States that 
provide the services and related programs in the Federated States of 
Micronesia pursuant to Title Two are authorized to settle and pay tort 
claims arising in the Federated States of Micronesia from the 
activities of such agencies or from the acts or omissions of the 
employees of such agencies. Except as provided in section 178(b), the 
provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply exclusively 
to such administrative settlements and payments.
  (b) Claims under section 178(a) that cannot be settled under section 
178(a) shall be disposed of exclusively in accordance with Article II 
of Title Four. Arbitration awards rendered pursuant to this subsection 
shall be paid out of funds under 31 U.S.C. 1304.
  (c) The Government of the United States and the Government of the 
Federated States of Micronesia shall, in the separate agreement 
referred to in section 231, provide for:
          (1) the administrative settlement of claims referred to in 
        section 178(a), including designation of local agents in each 
        State of the Federated States of Micronesia; such agents to be 
        empowered to accept, investigate and settle such claims, in a 
        timely manner, as provided in such separate agreements; and
          (2) arbitration, referred to in section 178(b), in a timely 
        manner, at a site convenient to the claimant, in the event a 
        claim is not otherwise settled pursuant to section 178(a).
  (d) The provisions of section 174(d) shall not apply to claims 
covered by this section.
  (e) Except as otherwise explicitly provided by law of the United 
States, neither the Government of the United States, its 
instrumentalities, nor any person acting on behalf of the Government of 
the United States, shall be named a party in any action based on, or 
arising out of, the activity or activities of a recipient of any grant 
or other assistance provided by the Government of the United States (or 
the activity or activities of the recipient's agency or any other 
person or entity acting on behalf of the recipient).
Section 179
  (a) The courts of the Federated States of Micronesia shall not 
exercise criminal jurisdiction over the Government of the United 
States, or its instrumentalities.
  (b) The courts of the Federated States of Micronesia shall not 
exercise criminal jurisdiction over any person if the Government of the 
United States provides notification to the Government of the Federated 
States of Micronesia that such person was acting on behalf of the 
Government of the United States, for actions taken in furtherance of 
section 221 or 224 of this amended Compact, or any other provision of 
law authorizing financial, program, or service assistance to the 
Federated States of Micronesia.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

Section 211--Sector Grants
  (a) In order to assist the Government of the Federated States of 
Micronesia in its efforts to promote the economic advancement, 
budgetary self-reliance, and economic self-sufficiency of its people, 
and in recognition of the special relationship that exists between the 
Federated States of Micronesia and the United States, the Government of 
the United States shall provide assistance on a sector grant basis for 
a period of twenty years in the amounts set forth in section 216, 
commencing on the effective date of this Compact, as amended. Such 
grants shall be used for assistance in the sectors of education, health 
care, private sector development, the environment, public sector 
capacity building, and public infrastructure, or for other sectors as 
mutually agreed, with priorities in the education and health care 
sectors. For each year such sector grant assistance is made available, 
the proposed division of this amount among these sectors shall be 
certified to the Government of the United States by the Government of 
the Federated States of Micronesia and shall be subject to the 
concurrence of the Government of the United States. In such case, the 
Government of the United States shall disburse the agreed upon amounts 
and monitor the use of such sector grants in accordance with the 
provisions of this Article and the Agreement Concerning Procedures for 
the Implementation of United States Economic Assistance Provided in the 
Compact, as Amended, of Free Association Between the Government of the 
United States of America and the Government of the Federated States of 
Micronesia (``Fiscal Procedures Agreement'') which shall come into 
effect simultaneously with this Compact, as amended. The provision of 
any United States assistance under the Compact, as amended, the Fiscal 
Procedures Agreement, the Trust Fund Agreement, or any other subsidiary 
agreement to the Compact, as amended, shall constitute ``a particular 
distribution . . . required by the terms or special nature of the 
assistance'' for purposes of Article XII, section 1(b) of the 
Constitution of the Federated States of Micronesia.
          (1) Education.--United States grant assistance shall be made 
        available in accordance with the plan described in subsection 
        (c) of this section to support and improve the educational 
        system of the Federated States of Micronesia and develop the 
        human, financial, and material resources necessary for the 
        Government of the Federated States of Micronesia to perform 
        these services. Emphasis should be placed on advancing a 
        quality basic education system.
          (2) Health.--United States grant assistance shall be made 
        available in accordance with the plan described in subsection 
        (c) of this section to support and improve the delivery of 
        preventive, curative and environmental care and develop the 
        human, financial, and material resources necessary for the 
        Government of the Federated States of Micronesia to perform 
        these services.
          (3) Private sector development.--United States grant 
        assistance shall be made available in accordance with the plan 
        described in subsection (c) of this section to support the 
        efforts of the Government of the Federated States of Micronesia 
        to attract foreign investment and increase indigenous business 
        activity by vitalizing the commercial environment, ensuring 
        fair and equitable application of the law, promoting adherence 
        to core labor standards, and maintaining progress toward 
        privatization of state-owned and partially state-owned 
        enterprises, and engaging in other reforms.
          (4) Capacity building in the public sector.--United States 
        grant assistance shall be made available in accordance with the 
        plan described in subsection (c) of this section to support the 
        efforts of the Government of the Federated States of Micronesia 
        to build effective, accountable and transparent national, 
        state, and local government and other public sector 
        institutions and systems.
          (5) Environment.--United States grant assistance shall be 
        made available in accordance with the plan described in 
        subsection (c) of this section to increase environmental 
        protection; conserve and achieve sustainable use of natural 
        resources; and engage in environmental infrastructure planning, 
        design construction and operation.
          (6) Public infrastructure.--
                  (i) U.S. annual grant assistance shall be made 
                available in accordance with a list of specific 
                projects included in the plan described in subsection 
                (c) of this section to assist the Government of the 
                Federated States of Micronesia in its efforts to 
                provide adequate public infrastructure.
                  (ii) Infrastructure and maintenance Fund.--Five 
                percent of the annual public infrastructure grant made 
                available under paragraph (i) of this subsection shall 
                be set aside, with an equal contribution from the 
                Government of the Federated States of Micronesia, as a 
                contribution to an Infrastructure Maintenance Fund 
                (IMF). Administration of the Infrastructure Maintenance 
                Fund shall be governed by the Fiscal Procedures 
                Agreement.
  (b) Humanitarian Assistance.--Federated States of Micronesia Program. 
In recognition of the special development needs of the Federated States 
of Micronesia, the Government of the United States shall make available 
to the Government of the Federated States of Micronesia, on its request 
and to be deducted from the grant amount made available under 
subsection (a) of this section, a Humanitarian Assistance - Federated 
States of Micronesia (``HAFSM'') Program with emphasis on health, 
education, and infrastructure (including transportation), projects. The 
terms and conditions of the HAFSM shall be set forth in the Agreement 
Regarding the Military Use and Operating Rights of the Government of 
the United States in the Government of the Federated States of 
Micronesia Concluded Pursuant to Sections 321 and 323 of the Compact of 
Free Association, as Amended which shall come into effect 
simultaneously with the amendments to this Compact.
  (c) Development Plan.--The Government of the Federated States of 
Micronesia shall prepare and maintain an official overall development 
plan. The plan shall be strategic in nature, shall be continuously 
reviewed and updated through the annual budget process, and shall make 
projections on a multi-year rolling basis. Each of the sectors named in 
subsection (a) of this section, or other sectors as mutually agreed, 
shall be accorded specific treatment in the plan. Insofar as grants 
funds are involved, the plan shall be subject to the concurrence of the 
Government of the United States.
  (d) Disaster Assistance Emergency Fund.--An amount of two hundred 
thousand dollars ($200,000) shall be provided annually, with an equal 
contribution from the Government of the Federated States of Micronesia, 
as a contribution to a ``Disaster Assistance Emergency Fund (DAEF).'' 
Any funds from the DAEF may be used only for assistance and 
rehabilitation resulting from disasters and emergencies. The funds will 
be accessed upon declaration by the Government of the Federated States 
of Micronesia, with the concurrence of the United States Chief of 
Mission to the Federated States of Micronesia. The Administration of 
the DAEF shall be governed by the Fiscal Procedures Agreement.
Section 212 - Accountability.
  (a) Regulations and policies normally applicable to United States 
financial assistance to its state and local governments, as reflected 
in the Fiscal Procedures Agreement, shall apply to each sector grant 
described in section 211, and to grants administered under section 221 
below, except as modified in the separate agreements referred to in 
section 231 of this Compact, as amended, or by United States law. The 
Government of the United States, after annual consultations with the 
Federated States of Micronesia, may attach reasonable terms and 
conditions, including annual performance indicators that are necessary 
to ensure effective use of United States assistance and reasonable 
progress toward achieving program objectives. The Government of the 
United States may seek appropriate remedies for noncompliance with the 
terms and conditions attached to the assistance, or for failure to 
comply with section 234, including withholding assistance.
  (b) The Government of the United States shall, for each fiscal year 
of the twenty years during which assistance is to be provided on a 
sector grant basis under section 211, grant the Government of the 
Federated States of Micronesia an amount equal to the lesser of (i) one 
half of the reasonable, properly documented cost incurred during each 
fiscal year to conduct the annual audit required under Article VIII (2) 
of the Fiscal Procedures Agreement or (ii) $500,000. Such amount will 
not be adjusted for inflation under section 217 or otherwise.
Section 213--Joint Economic Management Committee
  The Governments of the United States and the Federated States of 
Micronesia shall establish a Joint Economic Management Committee, 
composed of a U.S. chair, two other members from the Government of the 
United States and two members from the Government of the Federated 
States of Micronesia. The Joint Economic Management Committee shall 
meet at least once each year to review the audits and reports required 
under this Title, evaluate the progress made by the Federated States of 
Micronesia in meeting the objectives identified in its plan described 
in subsection (c) of section 211, with particular focus on those parts 
of the plan dealing with the sectors identified in subsection (a) of 
section 211, identify problems encountered, and recommend ways to 
increase the effectiveness of U.S. assistance made available under this 
Title. The establishment and operations of the Joint Economic 
Management Committee shall be governed by the Fiscal Procedures 
Agreement.
Section 214--Annual Report
  The Government of the Federated States of Micronesia shall report 
annually to the President of the United States on the use of United 
States sector grant assistance and other assistance and progress in 
meeting mutually agreed program and economic goals. The Joint Economic 
Management Committee shall review and comment on the report and make 
appropriate recommendations based thereon.
Section 215--Trust Fund
  (a) The United States shall contribute annually for twenty years from 
the effective date of this Compact, as amended, in the amounts set 
forth in section 216 into a Trust Fund established in accordance with 
the Agreement Between the Government of the United States of America 
and the Government of the Federated States of Micronesia Implementing 
Section 215 and Section 216 of the Compact, as Amended, Regarding a 
Trust Fund (``Trust Fund Agreement''). Upon termination of the annual 
financial assistance under section 211, the proceeds of the fund shall 
thereafter be used for the purposes described in section 211 or as 
otherwise mutually agreed.
  (b) The United States contribution into the Trust Fund described in 
subsection(a) of this section is conditioned on the Government of the 
Federated States of Micronesia contributing to the Trust Fund at least 
$30 million, prior to September 30, 2004. Any funds received by the 
Federated States of Micronesia under section 111 (d) of Public Law 99-
239 (January 14, 1986), or successor provisions, would be contributed 
to the Trust Fund as a Federated States of Micronesia contribution.
  (c) The terms regarding the investment and management of funds and 
use of the income of the Trust Fund shall be set forth in the separate 
Trust Fund Agreement described in subsection (a) of this section. Funds 
derived from United States investment shall not be subject to Federal 
or state taxes in the United States or the Federated States of 
Micronesia. The Trust Fund Agreement shall also provide for annual 
reports to the Government of the United States and to the Government of 
the Federated States of Micronesia. The Trust Fund Agreement shall 
provide for appropriate distributions of trust fund proceeds to the 
Federated States of Micronesia and for appropriate remedies for the 
failure of the Federated States of Micronesia to use income of the 
Trust Fund for the annual grant purposes set forth in section 211. 
These remedies may include the return to the United States of the 
present market value of its contributions to the Trust Fund and the 
present market value of any undistributed income on the contributions 
of the United States. If this Compact, as amended, is terminated, the 
provisions of sections 451 through 453 of this Compact, as amended, 
shall govern treatment of any U.S. contributions to the Trust Fund or 
accrued interest thereon.
Section 216--Sector Grant Funding and Trust Fund Contributions
  The funds described in sections 211, 212(b) and 215 shall be made 
available as follows:

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

Section 217--Inflation Adjustment
  Except for the amounts provided for audits under section 212(b), the 
amounts stated in this Title shall be adjusted for each United States 
Fiscal Year by the percent that equals two-thirds of the percent change 
in the United States Gross Domestic Product Implicit Price Deflator, or 
5 percent, whichever is less in any one year, using the beginning of 
Fiscal Year 2004 as a base.
Section 218--Carry-Over of Unused Funds
  If in any year the funds made available by the Government of the 
United States for that year pursuant to this Article are not completely 
obligated by the Government of the Federated States of Micronesia, the 
unobligated balances shall remain available in addition to the funds to 
be provided in subsequent years.
  Article II
  Services and Program Assistance
Section 221
  (a) Services.--The Government of the United States shall make 
available to the Federated States of Micronesia, in accordance with and 
to the extent provided in the Federal Programs and Services Agreement 
referred to in section 231, the services and related programs of:
          (1) the United States Weather Service;
          (2) the United States Postal Service;
          (3) the United States Federal Aviation Administration;
          (4) the United States Department of Transportation;
          (5) the Federal Deposit Insurance Corporation (for the 
        benefit only of the Bank of the Federated States of 
        Micronesia), and
          (6) the Department of Homeland Security, and the United 
        States Agency for International Development, Office of Foreign 
        Disaster Assistance.
Upon the effective date of this Compact, as amended, the United States 
Departments and Agencies named or having responsibility to provide 
these services and related programs shall have the authority to 
implement the relevant provisions of the Federal Programs and Services 
Agreement referred to in section 231.
  (b) Programs.--
          (1) With the exception of the services and programs covered 
        by subsection (a) of this section, and unless the Congress of 
        the United States provides otherwise, the Government of the 
        United States shall make available to the Federated States of 
        Micronesia the services and programs that were available to the 
        Federated States of Micronesia on the effective date of this 
        Compact, as amended, to the extent that such services and 
        programs continue to be available to State and local 
        governments of the United States. As set forth in the Fiscal 
        Procedures Agreement, funds provided under subsection (a) of 
        section 211 will be considered to be local revenues of the 
        Government of the Federated States of Micronesia when used as 
        the local share required to obtain Federal programs and 
        services.
          (2) Unless provided otherwise by U.S. law, the services and 
        programs described in paragraph (1) of this subsection shall be 
        extended in accordance with the terms of the Federal Programs 
        and Services Agreement referred to in section 231.
  (c) The Government of the United States shall have and exercise such 
authority as is necessary to carry out its responsibilities under this 
Title and the separate agreements referred to in amended section 231, 
including the authority to monitor and administer all service and 
program assistance provided by the United States to the Federated 
States of Micronesia. The Federal Programs and Services Agreement 
referred to in amended section 231 shall also set forth the extent to 
which services and programs shall be provided to the Federated States 
of Micronesia.
  (d) Except as provided elsewhere in this Compact, as amended, under 
any separate agreement entered into under this Compact, as amended, or 
otherwise under U.S. law, all Federal domestic programs extended to or 
operating in the Federated States of Micronesia shall be subject to all 
applicable criteria, standards, reporting requirements, auditing 
procedures, and other rules and regulations applicable to such programs 
and services when operating in the United States.
  (e) The Government of the United States shall make available to the 
Federated States of Micronesia alternate energy development projects, 
studies, and conservation measures to the extent provided for the 
Freely Associated States in the laws of the United States.
Section 222
  The Government of the United States and the Government of the 
Federated States of Micronesia may agree from time to time to extend to 
the Federated States of Micronesia additional United States grant 
assistance, services and programs, as provided under the laws of the 
United States. Unless inconsistent with such laws, or otherwise 
specifically precluded by the Government of the United States at the 
time such additional grant assistance, services, or programs are 
extended, the Federal Programs and Services Agreement referred to 
section 231 shall apply to any such assistance, services or programs.
Section 223
  The Government of the Federated States of Micronesia shall make 
available to the Government of the United States at no cost such land 
as may be necessary for the operations of the services and programs 
provided pursuant to this Article, and such facilities as are provided 
by the Government of the Federated States of Micronesia at no cost to 
the Government of the United States as of the effective date of this 
Compact, as amended, or as may be mutually agreed thereafter.
Section 224
  The Government of the Federated States of Micronesia may request, 
from time to time, technical assistance from the Federal agencies and 
institutions of the Government of the United States, which are 
authorized to grant such technical assistance in accordance with its 
laws. If technical assistance is granted pursuant to such a request, 
the Government of the United States shall provide the technical 
assistance in a manner which gives priority consideration to the 
Federated States of Micronesia over other recipients not a part of the 
United States, its territories or possessions, and equivalent 
consideration to the Federated States of Micronesia with respect to 
other states in Free Association with the United States. Such 
assistance shall be made available on a reimbursable or non-
reimbursable basis to the extent provided by United States law.

                              Article III

                       Administrative Provisions

Section 231
  The specific nature, extent and contractual arrangements of the 
services and programs provided for in section 221 of this Compact, as 
amended, as well as the legal status of agencies of the Government of 
the United States, their civilian employees and contractors, and the 
dependents of such personnel while present in the Federated States of 
Micronesia, and other arrangements in connection with the assistance, 
services, or programs furnished by the Government of the United States, 
are set forth in a Federal Programs and Services Agreement which shall 
come into effect simultaneously with this Compact, as amended.
Section 232
  The Government of the United States, in consultation with the 
Government of the Federated States of Micronesia, shall determine and 
implement procedures for the periodic audit of all grants and other 
assistance made under Article I of this Title and of all funds expended 
for the services and programs provided under Article II of this Title. 
Further, in accordance with the Fiscal Procedures Agreement described 
in subsection (a) of section 211, the Comptroller General of the United 
States shall have such powers and authorities as described in sections 
102 (c) and 110 (c) of Public Law 99-239, 99 Stat. 1777-78, and 99 
Stat. 1799 (January 14, 1986).
Section 233
  Approval of this Compact, as amended, by the Government of the United 
States, in accordance with its constitutional processes, shall 
constitute a pledge by the United States that the sums and amounts 
specified as sector grants in section 211 of this Compact, as amended, 
shall be appropriated and paid to the Federated States of Micronesia 
for such period as those provisions of this Compact, as amended, remain 
in force, subject to the terms and conditions of this Title and related 
subsidiary agreements.
Section 234
  The Government of the Federated States of Micronesia pledges to 
cooperate with, permit, and assist if reasonably requested, designated 
and authorized representatives of the Government of the United States 
charged with investigating whether Compact funds, or any other 
assistance authorized under this Compact, as amended, have, or are 
being, used for purposes other than those set forth in this Compact, as 
amended, or its subsidiary agreements. In carrying out this 
investigative authority, such United States Government representatives 
may request that the Government of the Federated States of Micronesia 
subpoena documents and records and compel testimony in accordance with 
the laws and Constitution of the Federated States of Micronesia. Such 
assistance by the Government of the Federated States of Micronesia to 
the Government of the United States shall not be unreasonably withheld. 
The obligation of the Government of the Federated States of Micronesia 
to fulfill its pledge herein is a condition to its receiving payment of 
such funds or other assistance authorized under this Compact, as 
amended. The Government of the United States shall pay any reasonable 
costs for extraordinary services executed by the Government of the 
Federated States of Micronesia in carrying out the provisions of this 
section.

                               Article IV

                                 Trade

Section 241
  The Federated States of Micronesia is not included in the customs 
territory of the United States.
Section 242
  The President shall proclaim the following tariff treatment for 
articles imported from the Federated States of Micronesia which shall 
apply during the period of effectiveness of this title:
          (a) Unless otherwise excluded, articles imported from the 
        Federated States of Micronesia, subject to the limitations 
        imposed under section 503(b) of title V of the Trade Act of 
        1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
          (b) Only tuna in airtight containers provided for in heading 
        1604.14.22 of the Harmonized Tariff Schedule of the United 
        States that is imported from the Federated States of Micronesia 
        and the Republic of the Marshall Islands during any calendar 
        year not to exceed 10 percent of apparent United States 
        consumption of tuna in airtight containers during the 
        immediately preceding calendar year, as reported by the 
        National Marine Fisheries Service, shall be exempt from duty; 
        but the quantity of tuna given duty-free treatment under this 
        paragraph for any calendar year shall be counted against the 
        aggregated quantity of tuna in airtight containers that is 
        dutiable under rate column numbered 1 of such heading 
        1604.14.22 for that calendar year.
          (c) The duty-free treatment provided under subsection (a) 
        shall not apply to--
                  (1) watches, clocks, and timing apparatus provided 
                for in Chapter 91, excluding heading 9113, of the 
                Harmonized Tariff Schedule of the United States;
                  (2) buttons (whether finished or not finished) 
                provided for in items 9606.21.40 and 9606.29.20 of such 
                Schedule;
                  (3) textile and apparel articles which are subject to 
                textile agreements; and
                  (4) footwear, handbags, luggage, flat goods, work 
                gloves, and leather wearing apparel which were not 
                eligible articles for purposes of title V of the Trade 
                Act of 1974 (19 U.S.C. 2461, et seq.) on April 1, 1984.
          (d) If the cost or value of materials produced in the customs 
        territory of the United States is included with respect to an 
        eligible article which is a product of the Federated States of 
        Micronesia, an amount not to exceed 15 percent of the appraised 
        value of the article at the time it is entered that is 
        attributable to such United States cost or value may be applied 
        for duty assessment purposes toward determining the percentage 
        referred to in section 503(a)(2) of title V of the Trade Act of 
        1974.
Section 243
  Articles imported from the Federated States of Micronesia which are 
not exempt from duty under subsections (a), (b), (c), and (d) of 
section 242 shall be subject to the rates of duty set forth in column 
numbered 1-general of the Harmonized Tariff Schedule of the United 
States (HTSUS).
Section 244
  (a) All products of the United States imported into the Federated 
States of Micronesia shall receive treatment no less favorable than 
that accorded like products of any foreign country with respect to 
customs duties or charges of a similar nature and with respect to laws 
and regulations relating to importation, exportation, taxation, sale, 
distribution, storage or use.
  (b) The provisions of subsection (a) shall not apply to advantages 
accorded by the Federated States of Micronesia by virtue of their full 
membership in the Pacific Island Countries Trade Agreement (PICTA), 
done on August 18, 2001, to those governments listed in Article 26 of 
PICTA, as of the date the Compact, as amended, is signed.
  (c) Prior to entering into consultations on, or concluding, a free 
trade agreement with governments not listed in Article 26 of PICTA, the 
Federated States of Micronesia shall consult with the United States 
regarding whether or how subsection (a) of section 244 shall be 
applied.

                               Article V

                          Finance and Taxation

Section 251
  The currency of the United States is the official circulating legal 
tender of the Federated States of Micronesia. Should the Government of 
the Federated States of Micronesia act to institute another currency, 
the terms of an appropriate currency transitional period shall be as 
agreed with the Government of the United States.
Section 252
  The Government of the Federated States of Micronesia may, with 
respect to United States persons, tax income derived from sources 
within its respective jurisdiction, property situated therein, 
including transfers of such property by gift or at death, and products 
consumed therein, in such manner as the Government of the Federated 
States of Micronesia deems appropriate. The determination of the source 
of any income, or the situs of any property, shall for purposes of this 
Compact be made according to the United States Internal Revenue Code.
Section 253
  A citizen of the Federated States of Micronesia, domiciled therein, 
shall be exempt from estate, gift, and generation-skipping transfer 
taxes imposed by the Government of the United States, provided that 
such citizen of the Federated States of Micronesia is neither a citizen 
nor a resident of the United States.
Section 254
  (a) In determining any income tax imposed by the Government of the 
Federated States of Micronesia, the Government of the Federated States 
of Micronesia shall have authority to impose tax upon income derived by 
a resident of the Federated States of Micronesia from sources without 
the Federated States of Micronesia, in the same manner and to the same 
extent as the Government of the Federated States of Micronesia imposes 
tax upon income derived from within its own jurisdiction. If the 
Government of the Federated States of Micronesia exercises such 
authority as provided in this subsection, any individual resident of 
the Federated States of Micronesia who is subject to tax by the 
Government of the United States on income which is also taxed by the 
Government of the Federated States of Micronesia shall be relieved of 
liability to the Government of the United States for the tax which, but 
for this subsection, would otherwise be imposed by the Government of 
the United States on such income. However, the relief from liability to 
the United States Government referred to in the preceding sentence 
means only relief in the form of the foreign tax credit (or deduction 
in lieu thereof) available with respect to the income taxes of a 
possession of the United States, and relief in the form of the 
exclusion under section 911 of the Internal Revenue Code of 1986. For 
purposes of this section, the term ``resident of the Federated States 
of Micronesia'' shall be deemed to include any person who was 
physically present in the Federated States of Micronesia for a period 
of 183 or more days during any taxable year.
  (b) If the Government of the Federated States of Micronesia subjects 
income to taxation substantially similar to that imposed by the Trust 
Territory Code in effect on January 1, 1980, such Government shall be 
deemed to have exercised the authority described in section 254(a).
Section 255
  For purposes of section 274(h)(3)(A) of the United States Internal 
Revenue Code of 1986, the term ``North American Area'' shall include 
the Federated States of Micronesia.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

Section 311
  (a) The Government of the United States has full authority and 
responsibility for security and defense matters in or relating to the 
Federated States of Micronesia.
  (b) This authority and responsibility includes:
          (1) the obligation to defend the Federated States of 
        Micronesia and its people from attack or threats thereof as the 
        United States and its citizens are defended;
          (2) the option to foreclose access to or use of the Federated 
        States of Micronesia by military personnel or for the military 
        purposes of any third country; and
          (3) the option to establish and use military areas and 
        facilities in the Federated States of Micronesia, subject to 
        the terms of the separate agreements referred to in sections 
        321 and 323.
  (c) The Government of the United States confirms that it shall act in 
accordance with the principles of international law and the Charter of 
the United Nations in the exercise of this authority and 
responsibility.
Section 312
  Subject to the terms of any agreements negotiated in accordance with 
sections 321 and 323, the Government of the United States may conduct 
within the lands, waters and airspace of the Federated States of 
Micronesia the activities and operations necessary for the exercise of 
its authority and responsibility under this Title.
Section 313
  (a) The Government of the Federated States of Micronesia shall 
refrain from actions that the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Federated States of Micronesia.
  (b) The consultations referred to in this section shall be conducted 
expeditiously at senior levels of the two Governments, and the 
subsequent determination by the Government of the United States 
referred to in this section shall be made only at senior interagency 
levels of the Government of the United States.
  (c) The Government of the Federated States of Micronesia shall be 
afforded, on an expeditious basis, an opportunity to raise its concerns 
with the United States Secretary of State personally and the United 
States Secretary of Defense personally regarding any determination made 
in accordance with this section.
Section 314
  (a) Unless otherwise agreed, the Government of the United States 
shall not, in the Federated States of Micronesia:
          (1) test by detonation or dispose of any nuclear weapon, nor 
        test, dispose of, or discharge any toxic chemical or biological 
        weapon; or
          (2) test, dispose of, or discharge any other radioactive, 
        toxic chemical or biological materials in an amount or manner 
        which would be hazardous to public health or safety.
  (b) Unless otherwise agreed, other than for transit or overflight 
purposes or during time of a national emergency declared by the 
President of the United States, a state of war declared by the Congress 
of the United States or as necessary to defend against an actual or 
impending armed attack on the United States, the Federated States of 
Micronesia or the Republic of the Marshall Islands, the Government of 
the United States shall not store in the Federated States of Micronesia 
or the Republic of the Marshall Islands any toxic chemical weapon, nor 
any radioactive materials nor any toxic chemical materials intended for 
weapons use.
  (c) Radioactive, toxic chemical, or biological materials not intended 
for weapons use shall not be affected by section 314(b).
  (d) No material or substance referred to in this section shall be 
stored in the Federated States of Micronesia except in an amount and 
manner which would not be hazardous to public health or safety. In 
determining what shall be an amount or manner which would be hazardous 
to public health or safety under this section, the Government of the 
United States shall comply with any applicable mutual agreement, 
international guidelines accepted by the Government of the United 
States, and the laws of the United States and their implementing 
regulations.
  (e) Any exercise of the exemption authority set forth in section 
161(e) shall have no effect on the obligations of the Government of the 
United States under this section or on the application of this 
subsection.
  (f) The provisions of this section shall apply in the areas in which 
the Government of the Federated States of Micronesia exercises 
jurisdiction over the living resources of the seabed, subsoil or water 
column adjacent to its coasts.
Section 315
  The Government of the United States may invite members of the armed 
forces of other countries to use military areas and facilities in the 
Federated States of Micronesia, in conjunction with and under the 
control of United States Armed Forces. Use by units of the armed forces 
of other countries of such military areas and facilities, other than 
for transit and overflight purposes, shall be subject to consultation 
with and, in the case of major units, approval of the Government of the 
Federated States of Micronesia.
Section 316
  The authority and responsibility of the Government of the United 
States under this Title may not be transferred or otherwise assigned.

                               Article II

                Defense Facilities and Operating Rights

Section 321
  (a) Specific arrangements for the establishment and use by the 
Government of the United States of military areas and facilities in the 
Federated States of Micronesia are set forth in separate agreements, 
which shall remain in effect in accordance with the terms of such 
agreements.
  (b) If, in the exercise of its authority and responsibility under 
this Title, the Government of the United States requires the use of 
areas within the Federated States of Micronesia in addition to those 
for which specific arrangements are concluded pursuant to section 
321(a), it may request the Government of the Federated States of 
Micronesia to satisfy those requirements through leases or other 
arrangements. The Government of the Federated States of Micronesia 
shall sympathetically consider any such request and shall establish 
suitable procedures to discuss it with and provide a prompt response to 
the Government of the United States.
  (c) The Government of the United States recognizes and respects the 
scarcity and special importance of land in the Federated States of 
Micronesia. In making any requests pursuant to section 321(b), the 
Government of the United States shall follow the policy of requesting 
the minimum area necessary to accomplish the required security and 
defense purpose, of requesting only the minimum interest in real 
property necessary to support such purpose, and of requesting first to 
satisfy its requirement through public real property, where available, 
rather than through private real property.
Section 322
  The Government of the United States shall provide and maintain fixed 
and floating aids to navigation in the Federated States of Micronesia 
at least to the extent necessary for the exercise of its authority and 
responsibility under this Title.
Section 323
  The military operating rights of the Government of the United States 
and the legal status and contractual arrangements of the United States 
Armed Forces, their members, and associated civilians, while present in 
the Federated States of Micronesia are set forth in separate 
agreements, which shall remain in effect in accordance with the terms 
of such agreements.

                              Article III

         Defense Treaties and International Security Agreements

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

                               Article IV

              Service in Armed Forces of the United States

Section 341
  Any person entitled to the privileges set forth in Section 141 (with 
the exception of any person described in section 141(a)(5) who is not a 
citizen of the Federated States of Micronesia) shall be eligible to 
volunteer for service in the Armed Forces of the United States, but 
shall not be subject to involuntary induction into military service of 
the United States as long as such person has resided in the United 
States for a period of less than one year, provided that no time shall 
count towards this one year while a person admitted to the United 
States under the Compact, or the Compact, as amended, is engaged in 
full-time study in the United States. Any person described in section 
141(a)(5) who is not a citizen of the Federated States of Micronesia 
shall be subject to United States laws relating to selective service.
Section 342
  The Government of the United States shall have enrolled, at any one 
time, at least one qualified student from the Federated States of 
Micronesia, as may be nominated by the Government of the Federated 
States of Micronesia, in each of:
  (a) The United States Coast Guard Academy pursuant to 14 U.S.C. 195.
  (b) The United States Merchant Marine Academy pursuant to 46 U.S.C. 
1295(b)(6), provided that the provisions of 46 U.S.C. 1295b(b)(6)(C) 
shall not apply to the enrollment of students pursuant to section 
342(b) of this Compact, as amended.

                               Article V

                           General Provisions

Section 351
  (a) The Government of the United States and the Government of the 
Federated States of Micronesia shall continue to maintain a Joint 
Committee empowered to consider disputes arising under the 
implementation of this Title and its related agreements.
  (b) The membership of the Joint Committee shall comprise selected 
senior officials of the two Governments. The senior United States 
military commander in the Pacific area shall be the senior United 
States member of the Joint Committee. For the meetings of the Joint 
Committee, each of the two Governments may designate additional or 
alternate representatives as appropriate for the subject matter under 
consideration.
  (c) Unless otherwise mutually agreed, the Joint Committee shall meet 
annually at a time and place to be designated, after appropriate 
consultation, by the Government of the United States. The Joint 
Committee also shall meet promptly upon request of either of its 
members. The Joint Committee shall follow such procedures, including 
the establishment of functional subcommittees, as the members may from 
time to time agree. Upon notification by the Government of the United 
States, the Joint Committee of the United States and the Federated 
States of Micronesia shall meet promptly in a combined session with the 
Joint Committee established and maintained by the Government of the 
United States and the Republic of the Marshall Islands to consider 
matters within the jurisdiction of the two Joint Committees.
  (d) Unresolved issues in the Joint Committee shall be referred to the 
Governments for resolution, and the Government of the Federated States 
of Micronesia shall be afforded, on an expeditious basis, an 
opportunity to raise its concerns with the United States Secretary of 
Defense personally regarding any unresolved issue which threatens its 
continued association with the Government of the United States.
Section 352
  In the exercise of its authority and responsibility under Title 
Three, the Government of the United States shall accord due respect to 
the authority and responsibility of the Government of the Federated 
States of Micronesia under Titles One, Two and Four and to the 
responsibility of the Government of the Federated States of Micronesia 
to assure the well-being of its people.
Section 353
  (a) The Government of the United States shall not include the 
Government of the Federated States of Micronesia as a named party to a 
formal declaration of war, without that Government's consent.
  (b) Absent such consent, this Compact, as amended, is without 
prejudice, on the ground of belligerence or the existence of a state of 
war, to any claims for damages which are advanced by the citizens, 
nationals or Government of the Federated States of Micronesia, which 
arise out of armed conflict subsequent to November 3, 1986, and which 
are:
          (1) petitions to the Government of the United States for 
        redress; or
          (2) claims in any manner against the government, citizens, 
        nationals or entities of any third country.
  (c) Petitions under section 353(b)(1) shall be treated as if they 
were made by citizens of the United States.
Section 354
  (a) The Government of the United States and the Government of the 
Federated States of Micronesia are jointly committed to continue their 
security and defense relations, as set forth in this Title. 
Accordingly, it is the intention of the two countries that the 
provisions of this Title shall remain binding as long as this Compact, 
as amended, remains in effect, and thereafter as mutually agreed, 
unless earlier terminated by mutual agreement pursuant to section 441, 
or amended pursuant to Article III of Title Four. If at any time the 
Government of the United States, or the Government of the Federated 
States of Micronesia, acting unilaterally, terminates this Title, such 
unilateral termination shall be considered to be termination of the 
entire Compact, in which case the provisions of section 442 and 452 (in 
the case of termination by the Government of the United States) or 
sections 443 and 453 (in the case of termination by the Government of 
the Federated States of Micronesia), with the exception of paragraph 
(3) of subsection (a) of section 452 or paragraph (3) of subsection (a) 
of section 453, as the case may be, shall apply.
  (b) The Government of the United States recognizes, in view of the 
special relationship between the Government of the United States and 
the Government of the Federated States of Micronesia, and in view of 
the existence of the separate agreement regarding mutual security 
concluded with the Government of the Federated States of Micronesia 
pursuant to sections 321 and 323, that, even if this Title should 
terminate, any attack on the Federated States of Micronesia during the 
period in which such separate agreement is in effect, would constitute 
a threat to the peace and security of the entire region and a danger to 
the United States. In the event of such an attack, the Government of 
the United States would take action to meet the danger to the United 
States and to the Federated States of Micronesia in accordance with its 
constitutional processes.
  (c) As reflected in Article 21(1)(b) of the Trust Fund Agreement, the 
Government of the United States and the Government of the Federated 
States of Micronesia further recognize, in view of the special 
relationship between their countries, that even if this Title should 
terminate, the Government of the Federated States of Micronesia shall 
refrain from actions which the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Federated States of Micronesia or 
the Republic of the Marshall Islands.

                               TITLE FOUR

                           GENERAL PROVISIONS

                               Article I

                      Approval and Effective Date

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

                               Article II

                   Conference and Dispute Resolution

Section 421
  The Government of the United States shall confer promptly at the 
request of the Government of the Federated States of Micronesia and 
that Government shall confer promptly at the request of the Government 
of the United States on matters relating to the provisions of this 
Compact, as amended, or of its related agreements.
Section 422
  In the event the Government of the United States or the Government of 
the Federated States of Micronesia, after conferring pursuant to 
section 421, determines that there is a dispute and gives written 
notice thereof, the two Governments shall make a good faith effort to 
resolve the dispute between themselves.
Section 423
  If a dispute between the Government of the United States and the 
Government of the Federated States of Micronesia cannot be resolved 
within 90 days of written notification in the manner provided in 
section 422, either party to the dispute may refer it to arbitration in 
accordance with section 424.
Section 424
  Should a dispute be referred to arbitration as provided for in 
section 423, an Arbitration Board shall be established for the purpose 
of hearing the dispute and rendering a decision which shall be binding 
upon the two parties to the dispute unless the two parties mutually 
agree that the decision shall be advisory. Arbitration shall occur 
according to the following terms:
          (a) An Arbitration Board shall consist of a Chairman and two 
        other members, each of whom shall be a citizen of a party to 
        the dispute. Each of the two Governments which is a party to 
        the dispute shall appoint one member to the Arbitration Board. 
        If either party to the dispute does not fulfill the appointment 
        requirements of this section within 30 days of referral of the 
        dispute to arbitration pursuant to section 423, its member on 
        the Arbitration Board shall be selected from its own standing 
        list by the other party to the dispute. Each Government shall 
        maintain a standing list of 10 candidates. The parties to the 
        dispute shall jointly appoint a Chairman within 15 days after 
        selection of the other members of the Arbitration Board. 
        Failing agreement on a Chairman, the Chairman shall be chosen 
        by lot from the standing lists of the parties to the dispute 
        within 5 days after such failure.
          (b) Unless otherwise provided in this Compact, as amended, or 
        its related agreements, the Arbitration Board shall have 
        jurisdiction to hear and render its final determination on all 
        disputes arising exclusively under Articles I, II, III, IV and 
        V of Title One, Title Two, Title Four, and their related 
        agreements.
          (c) Each member of the Arbitration Board shall have one vote. 
        Each decision of the Arbitration Board shall be reached by 
        majority vote.
  (d) In determining any legal issue, the Arbitration Board may have 
reference to international law and, in such reference, shall apply as 
guidelines the provisions set forth in Article 38 of the Statute of the 
International Court of Justice.
  (e) The Arbitration Board shall adopt such rules for its proceedings 
as it may deem appropriate and necessary, but such rules shall not 
contravene the provisions of this Compact, as amended. Unless the 
parties provide otherwise by mutual agreement, the Arbitration Board 
shall endeavor to render its decision within 30 days after the 
conclusion of arguments. The Arbitration Board shall make findings of 
fact and conclusions of law and its members may issue dissenting or 
individual opinions. Except as may be otherwise decided by the 
Arbitration Board, one-half of all costs of the arbitration shall be 
borne by the Government of the United States and the remainder shall be 
borne by the Government of the Federated States of Micronesia.

                              Article III

                               Amendment

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

                               Article IV

                              Termination

Section 441
  This Compact, as amended, may be terminated by mutual agreement of 
the Government of the Federated States of Micronesia and the Government 
of the United States, in accordance with their respective 
constitutional processes. Such mutual termination of this Compact, as 
amended, shall be without prejudice to the continued application of 
section 451 of this Compact, as amended, and the provisions of the 
Compact, as amended, set forth therein.
Section 442
  Subject to section 452, this Compact, as amended, may be terminated 
by the Government of the United States in accordance with its 
constitutional processes. Such termination shall be effective on the 
date specified in the notice of termination by the Government of the 
United States but not earlier than six months following delivery of 
such notice. The time specified in the notice of termination may be 
extended. Such termination of this Compact, as amended, shall be 
without prejudice to the continued application of section 452 of this 
Compact, as amended, and the provisions of the Compact, as amended, set 
forth therein.
Section 443
  This Compact, as amended, shall be terminated by the Government of 
the Federated States of Micronesia, pursuant to its constitutional 
processes, subject to section 453 if the people represented by that 
Government vote in a plebiscite to terminate the Compact, as amended, 
or by another process permitted by the FSM constitution and mutually 
agreed between the Governments of the United States and the Federated 
States of Micronesia. The Government of the Federated States of 
Micronesia shall notify the Government of the United States of its 
intention to call such a plebiscite, or to pursue another mutually 
agreed and constitutional process, which plebiscite or process shall 
take place not earlier than three months after delivery of such notice. 
The plebiscite or other process shall be administered by the Government 
of the Federated States of Micronesia in accordance with its 
constitutional and legislative processes. If a majority of the valid 
ballots cast in the plebiscite or other process favors termination, the 
Government of the Federated States of Micronesia shall, upon 
certification of the results of the plebiscite or other process, give 
notice of termination to the Government of the United States, such 
termination to be effective on the date specified in such notice but 
not earlier than three months following the date of delivery of such 
notice. The time specified in the notice of termination may be 
extended.

                               Article V

                             Survivability

Section 451
  (a) Should termination occur pursuant to section 441, economic and 
other assistance by the Government of the United States shall continue 
only if and as mutually agreed by the Governments of the United States 
and the Federated States of Micronesia, and in accordance with the 
parties' respective constitutional processes.
  (b) In view of the special relationship of the United States and the 
Federated States of Micronesia, as reflected in subsections (b) and (c) 
of section 354 of this Compact, as amended, and the separate agreement 
entered into consistent with those subsections, if termination occurs 
pursuant to section 441 prior to the twentieth anniversary of the 
effective date of this Compact, as amended, the United States shall 
continue to make contributions to the Trust Fund described in section 
215 of this Compact, as amended.
  (c) In view of the special relationship of the United States and the 
Federated States of Micronesia described in subsection (b) of this 
section, if termination occurs pursuant to section 441 following the 
twentieth anniversary of the effective date of this Compact, as 
amended, the Federated States of Micronesia shall be entitled to 
receive proceeds from the Trust Fund described in section 215 of this 
Compact, as amended, in the manner described in those provisions and 
the Trust Fund Agreement governing the distribution of such proceeds.
Section 452
  (a) Should termination occur pursuant to section 442 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this Compact, as amended, shall 
remain in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
          (1) Article VI and sections 172, 173, 176 and 177 of Title 
        One;
          (2) Sections 232 and 234 of Title Two;
          (3) Title Three; and
          (4) Articles II, III, V and VI of Title Four.
  (b) Should termination occur pursuant to section 442 before the 
twentieth anniversary of the effective date of the Compact, as amended:
          (1) Except as provided in paragraph (2) of this subsection 
        and subsection (c) of this section, economic and other 
        assistance by the United States shall continue only if and as 
        mutually agreed by the Governments of the United States and the 
        Federated States of Micronesia.
          (2) In view of the special relationship of the United States 
        and the Federated States of Micronesia, as reflected in 
        subsections (b) and (c) of section 354 of this Compact, as 
        amended, and the separate agreement regarding mutual security, 
        and the Trust Fund Agreement, the United States shall continue 
        to make contributions to the Trust Fund described in section 
        215 of this Compact, as amended, in the manner described in the 
        Trust Fund Agreement.
  (c) In view of the special relationship of the United States and the 
Federated States of Micronesia, as reflected in subsections 354(b) and 
(c) of this Compact, as amended, and the separate agreement regarding 
mutual security, and the Trust Fund Agreement, if termination occurs 
pursuant to section 442 following the twentieth anniversary of the 
effective date of this Compact, as amended, the Federated States of 
Micronesia shall continue to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this Compact, as amended, in the 
manner described in those provisions and the Trust Fund Agreement.
Section 453
  (a) Should termination occur pursuant to section 443 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this Compact, as amended, shall 
remain in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
          (1) Article VI and sections 172, 173, 176 and 177 of Title 
        One;
          (2) Sections 232 and 234 of Title Two;
          (3) Title Three; and
          (4) Articles II, III, V and VI of Title Four.
  (b) Upon receipt of notice of termination pursuant to section 443, 
the Government of the United States and the Government of the Federated 
States of Micronesia shall promptly consult with regard to their future 
relationship. Except as provided in subsection (c) and (d) of this 
section, these consultations shall determine the level of economic and 
other assistance, if any, which the Government of the United States 
shall provide to the Government of the Federated States of Micronesia 
for the period ending on the twentieth anniversary of the effective 
date of this Compact, as amended, and for any period thereafter, if 
mutually agreed.
  (c) In view of the special relationship of the United States and the 
Federated States of Micronesia, as reflected in subsections 354(b) and 
(c) of this Compact, as amended, and the separate agreement regarding 
mutual security, and the Trust Fund Agreement, if termination occurs 
pursuant to section 443 prior to the twentieth anniversary of the 
effective date of this Compact, as amended, the United States shall 
continue to make contributions to the Trust Fund described in section 
215 of this Compact, as amended, in the manner described in the Trust 
Fund Agreement.
  (d) In view of the special relationship of the United States and the 
Federated States of Micronesia, as reflected in subsections 354(b) and 
(c) of this Compact, as amended, and the separate agreement regarding 
mutual security, and the Trust Fund Agreement, if termination occurs 
pursuant to section 443 following the twentieth anniversary of the 
effective date of this Compact, as amended, the Federated States of 
Micronesia shall continue to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this Compact, as amended, in the 
manner described in those provisions and the Trust Fund Agreement.
Section 454
  Notwithstanding any other provision of this Compact, as amended:
          (a) The Government of the United States reaffirms its 
        continuing interest in promoting the economic advancement and 
        budgetary self-reliance of the people of the Federated States 
        of Micronesia.
          (b) The separate agreements referred to in Article II of 
        Title Three shall remain in effect in accordance with their 
        terms.

                               Article VI

                          Definition of Terms

Section 461
  For the purpose of this Compact, as amended, only, and without 
prejudice to the views of the Government of the United States or the 
Government of the Federated States of Micronesia as to the nature and 
extent of the jurisdiction of either of them under international law, 
the following terms shall have the following meanings:
          (a) ``Trust Territory of the Pacific Islands'' means the area 
        established in the Trusteeship Agreement consisting of the 
        former administrative districts of Kosrae, Yap, Ponape, the 
        Marshall Islands and Truk as described in Title One, Trust 
        Territory Code, section 1, in force on January 1, 1979. This 
        term does not include the area of Palau or the Northern Mariana 
        Islands.
          (b) ``Trusteeship Agreement'' means the agreement setting 
        forth the terms of trusteeship for the Trust Territory of the 
        Pacific Islands, approved by the Security Council of the United 
        Nations April 2, 1947, and by the United States July 18, 1947, 
        entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 
        8 U.N.T.S. 189.
           (c) ``The Federated States of Micronesia'' and ``the 
        Republic of the Marshall Islands'' are used in a geographic 
        sense and include the land and water areas to the outer limits 
        of the territorial sea and the air space above such areas as 
        now or hereafter recognized by the Government of the United 
        States.
          (d) ``Compact'' means the Compact of Free Association Between 
        the United States and the Federated States of Micronesia and 
        the Marshall Islands, that was approved by the United States 
        Congress in section 201 of Public Law 99-239 (Jan. 14, 1986) 
        and went into effect with respect to the Federated States of 
        Micronesia on November 3, 1986.
          (e) ``Compact, as amended'' means the Compact of Free 
        Association Between the United States and the Federated States 
        of Micronesia, as amended. The effective date of the Compact, 
        as amended, shall be on a date to be determined by the 
        President of the United States, and agreed to by the Government 
        of the Federated States of Micronesia, following formal 
        approval of the Compact, as amended, in accordance with section 
        411 of this Compact, as amended.
          (f) ``Government of the Federated States of Micronesia'' 
        means the Government established and organized by the 
        Constitution of the Federated States of Micronesia including 
        all the political subdivisions and entities comprising that 
        Government.
          (g) ``Government of the Republic of the Marshall Islands'' 
        means the Government established and organized by the 
        Constitution of the Republic of the Marshall Islands including 
        all the political subdivisions and entities comprising that 
        Government.
          (h) The following terms shall be defined consistent with the 
        1998 Edition of the Radio Regulations of the International 
        Telecommunications Union as follows:
                  (1) ``Radiocommunication'' means telecommunication by 
                means of radio waves.
                  (2) ``Station'' means one or more transmitters or 
                receivers or a combination of transmitters and 
                receivers, including the accessory equipment, necessary 
                at one location for carrying on a radiocommunication 
                service, or the radio astronomy service.
                  (3) ``Broadcasting Service'' means a 
                radiocommunication service in which the transmissions 
                are intended for direct reception by the general 
                public. This service may include sound transmissions, 
                television transmissions or other types of 
                transmission.
                  (4) ``Broadcasting Station'' means a station in the 
                broadcasting service.
                  (5) ``Assignment (of a radio frequency or radio 
                frequency channel)'' means an authorization given by an 
                administration for a radio station to use a radio 
                frequency or radio frequency channel under specified 
                conditions.
                  (6) ``Telecommunication'' means any transmission, 
                emission or reception of signs, signals, writings, 
                images and sounds or intelligence of any nature by 
                wire, radio, optical or other electromagnetic systems.
          (i) ``Military Areas and Facilities'' means those areas and 
        facilities in the Federated States of Micronesia reserved or 
        acquired by the Government of the Federated States of 
        Micronesia for use by the Government of the United States, as 
        set forth in the separate agreements referred to in section 
        321.
          (j) ``Tariff Schedules of the United States'' means the 
        Tariff Schedules of the United States as amended from time to 
        time and as promulgated pursuant to United States law and 
        includes the Tariff Schedules of the United States Annotated 
        (TSUSA), as amended.
          (k) ``Vienna Convention on Diplomatic Relations'' means the 
        Vienna Convention on Diplomatic Relations, done April 18, 1961, 
        23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
  (a) The Government of the United States and the Government of the 
Federated States of Micronesia previously have concluded agreements 
pursuant to the Compact, which shall remain in effect and shall survive 
in accordance with their terms, as follows:
          (1) Agreement Concluded Pursuant to Section 234 of the 
        Compact;
          (2) Agreement Between the Government of the United States and 
        the Government of the Federated States of Micronesia Regarding 
        Friendship, Cooperation and Mutual Security Concluded Pursuant 
        to Sections 321 and 323 of the Compact of Free Association; and
          (3) Agreement between the Government of the United States of 
        America and the Federated States of Micronesia Regarding 
        Aspects of the Marine Sovereignty and Jurisdiction of the 
        Federated States of Micronesia.
  (b) The Government of the United States and the Government of the 
Federated States of Micronesia shall conclude prior to the date of 
submission of this Compact, as amended, to the legislatures of the two 
countries, the following related agreements which shall come into 
effect on the effective date of this Compact, as amended, and shall 
survive in accordance with their terms, as follows:
          (1) Federal Programs and Services Agreement Between the 
        Government of the United States of America and the Government 
        of the Federated States of Micronesia Concluded Pursuant to 
        Article III of Title One, Article II of Title Two (including 
        Section 222), and Section 231 of the Compact of Free 
        Association, as amended which includes:
                  (i) Postal Services and Related Programs;
                  (ii) Weather Services and Related Programs;
                  (iii) Civil Aviation Safety Service and Related 
                Programs;
                  (iv) Civil Aviation Economic Services and Related 
                Programs;
                  (v) United States Disaster Preparedness and Response 
                Services and Related Programs;
                  (vi) Federal Deposit Insurance Corporation Services 
                and Related Programs; and
                  (vii) Telecommunications Services and Related 
                Programs.
          (2) Agreement Between the Government of the United States of 
        America and the Government of the Federated States of 
        Micronesia on Extradition, Mutual Assistance in Law Enforcement 
        Matters and Penal Sanctions Concluded Pursuant to Section 
        175(a) of the Compact of Free Association, as amended;
          (3) Agreement Between the Government of the United States of 
        America and the Government of the Federated States of 
        Micronesia on Labor Recruitment Concluded Pursuant to Section 
        175(b) of the Compact of Free Association, as amended;
          (4) Agreement Concerning Procedures for the Implementation of 
        United States Economic Assistance Provided in the Compact of 
        Free Association, as Amended, of Free Association Between the 
        Government of the United States of America and Government of 
        the Federated States of Micronesia;
          (5) Agreement Between the Government of the United States of 
        America and the Government of the Federated States of 
        Micronesia Implementing Section 215 and Section 216 of the 
        Compact, as Amended, Regarding a Trust Fund;
          (6) Agreement Regarding the Military Use and Operating Rights 
        of the Government of the United States in the Federated States 
        of Micronesia Concluded Pursuant to Sections 211(b), 321 and 
        323 of the Compact of Free Association, as Amended; and the
          (7) Status of Forces Agreement Between the Government of the 
        United States of America and the Government of the Federated 
        States of Micronesia Concluded Pursuant to Section 323 of the 
        Compact of Free Association, as Amended.
Section 463
  (a) Except as set forth in subsection (b) of this section, any 
reference in this Compact, as amended, to a provision of the United 
States Code or the Statutes at Large of the United States constitutes 
the incorporation of the language of such provision into this Compact, 
as amended, as such provision was in force on the effective date of 
this Compact, as amended.
  (b) Any reference in Articles IV and Article VI of Title One and 
Sections 174, 175, 178 and 342 to a provision of the United States Code 
or the Statutes at Large of the United States or to the Privacy Act, 
the Freedom of Information Act, the Administrative Procedure Act or the 
Immigration and Nationality Act constitutes the incorporation of the 
language of such provision into this Compact, as amended, as such 
provision was in force on the effective date of this Compact, as 
amended, or as it may be amended thereafter on a non-discriminatory 
basis according to the constitutional processes of the United States.

                              Article VII

                         Concluding Provisions

Section 471
  Both the Government of the United States and the Government of the 
Federated States of Micronesia shall take all necessary steps, of a 
general or particular character, to ensure, no later than the entry 
into force date of this Compact, as amended, the conformity of its 
laws, regulations and administrative procedures with the provisions of 
this Compact, as amended, or in the case of subsection (d) of section 
141, as soon as reasonably possible thereafter.
Section 472
  This Compact, as amended, may be accepted, by signature or otherwise, 
by the Government of the United States and the Government of the 
Federated States of Micronesia.
  IN WITNESS WHEREOF, the undersigned, duly authorized, have signed 
this Compact of Free Association, as amended, which shall enter into 
force upon the exchange of diplomatic notes by which the Government of 
the United States of America and the Government of the Federated States 
of Micronesia inform each other about the fulfillment of their 
respective requirements for entry into force.
  DONE at Pohnpei, Federated States of Micronesia, in duplicate, this 
fourteenth (14) day of May, 2003, each text being equally authentic.

Signed (May 14, 2003)               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
  Recognizing that their relationship until the entry into force on 
October 21, 1986 of the Compact was based upon the International 
Trusteeship System of the United Nations Charter, and in particular 
Article 76 of the Charter; and that pursuant to Article 76 of the 
Charter, the people of the Republic of the Marshall Islands have 
progressively developed their institutions of self-government, and that 
in the exercise of their sovereign right to self-determination they, 
through their freely-expressed wishes, have adopted a Constitution 
appropriate to their particular circumstances; and
  Recognizing that the Compact reflected their common desire to 
terminate the Trusteeship and establish a government-to-government 
relationship which was in accordance with the new political status 
based on the freely expressed wishes of the people of the Republic of 
the Marshall Islands and appropriate to their particular circumstances; 
and
  Recognizing that the people of the Republic of the Marshall Islands 
have and retain their sovereignty and their sovereign right to self-
determination and the inherent right to adopt and amend their own 
Constitution and form of government and that the approval of the entry 
of the Government of the Republic of the Marshall Islands into the 
Compact by the people of the Republic of the Marshall Islands 
constituted an exercise of their sovereign right to self-determination; 
and
  Recognizing the common desire of the people of the United States and 
the people of the Republic of the Marshall Islands to maintain their 
close government-to-government relationship, the United States and the 
Republic of the Marshall Islands:
  NOW, THEREFORE, MUTUALLY AGREE to continue and strengthen their 
relationship of free association by amending the Compact, which 
continues to provide a full measure of self-government for the people 
of the Republic of the Marshall Islands; and
  FURTHER AGREE that the relationship of free association derives from 
and is as set forth in this Compact, as amended, by the Governments of 
the United States and the Republic of the Marshall Islands; and that, 
during such relationship of free association, the respective rights and 
responsibilities of the Government of the United States and the 
Government of the Republic of the Marshall Islands in regard to this 
relationship of free association derive from and are as set forth in 
this Compact, as amended.

                               TITLE ONE

                         GOVERNMENTAL RELATIONS

                               Article I

                            Self-Government

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

                               Article II

                            Foreign Affairs

Section 121
  (a) The Government of the Republic of the Marshall Islands has the 
capacity to conduct foreign affairs and shall do so in its own name and 
right, except as otherwise provided in this Compact, as amended.
  (b) The foreign affairs capacity of the Government of the Republic of 
the Marshall Islands includes:
          (1) the conduct of foreign affairs relating to law of the sea 
        and marine resources matters, including the harvesting, 
        conservation, exploration or exploitation of living and non-
        living resources from the sea, seabed or subsoil to the full 
        extent recognized under international law;
          (2) the conduct of its commercial, diplomatic, consular, 
        economic, trade, banking, postal, civil aviation, 
        communications, and cultural relations, including negotiations 
        for the receipt of developmental loans and grants and the 
        conclusion of arrangements with other governments and 
        international and intergovernmental organizations, including 
        any matters specially benefiting its individual citizens.
  (c) The Government of the United States recognizes that the 
Government of the Republic of the Marshall Islands has the capacity to 
enter into, in its own name and right, treaties and other international 
agreements with governments and regional and international 
organizations.
  (d) In the conduct of its foreign affairs, the Government of the 
Republic of the Marshall Islands confirms that it shall act in 
accordance with principles of international law and shall settle its 
international disputes by peaceful means.
Section 122
  The Government of the United States shall support applications by the 
Government of the Republic of the Marshall Islands for membership or 
other participation in regional or international organizations as may 
be mutually agreed.
Section 123
  (a) In recognition of the authority and responsibility of the 
Government of the United States under Title Three, the Government of 
the Republic of the Marshall Islands shall consult, in the conduct of 
its foreign affairs, with the Government of the United States.
  (b) In recognition of the foreign affairs capacity of the Government 
of the Republic of the Marshall Islands, the Government of the United 
States, in the conduct of its foreign affairs, shall consult with the 
Government of the Republic of the Marshall Islands on matters that the 
Government of the United States regards as relating to or affecting the 
Government of the Republic of the Marshall Islands.
Section 124
  The Government of the United States may assist or act on behalf of 
the Government of the Republic of the Marshall Islands in the area of 
foreign affairs as may be requested and mutually agreed from time to 
time. The Government of the United States shall not be responsible to 
third parties for the actions of the Government of the Republic of the 
Marshall Islands undertaken with the assistance or through the agency 
of the Government of the United States pursuant to this section unless 
expressly agreed.
Section 125
  The Government of the United States shall not be responsible for nor 
obligated by any actions taken by the Government of the Republic of the 
Marshall Islands in the area of foreign affairs, except as may from 
time to time be expressly agreed.
Section 126
  At the request of the Government of the Republic of the Marshall 
Islands and subject to the consent of the receiving state, the 
Government of the United States shall extend consular assistance on the 
same basis as for citizens of the United States to citizens of the 
Republic of the Marshall Islands for travel outside the Republic of the 
Marshall Islands, the United States and its territories and 
possessions.
Section 127
  Except as otherwise provided in this Compact, as amended, or its 
related agreements, all obligations, responsibilities, rights and 
benefits of the Government of the United States as Administering 
Authority which resulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other international agreement to 
the Trust Territory of the Pacific Islands on October 20, 1986, are, as 
of that date, no longer assumed and enjoyed by the Government of the 
United States.

                              Article III

                             Communications

Section 131
  (a) The Government of the Republic of the Marshall Islands has full 
authority and responsibility to regulate its domestic and foreign 
communications, and the Government of the United States shall provide 
communications assistance as mutually agreed.
  (b) The Government of the Republic of the Marshall Islands has 
elected to undertake all functions previously performed by the 
Government of the United States with respect to domestic and foreign 
communications, except for those functions set forth in a separate 
agreement entered into pursuant to this section of the Compact, as 
amended.
Section 132
  The Government of the Republic of the Marshall Islands shall permit 
the Government of the United States to operate telecommunications 
services in the Republic of the Marshall Islands to the extent 
necessary to fulfill the obligations of the Government of the United 
States under this Compact, as amended, in accordance with the terms of 
separate agreements entered into pursuant to this section of the 
Compact, as amended.

                               Article IV

                              Immigration

Section 141
  (a) In furtherance of the special and unique relationship that exists 
between the United States and the Republic of the Marshall Islands, 
under the Compact, as amended, any person in the following categories 
may be admitted to, lawfully engage in occupations, and establish 
residence as a nonimmigrant in the United States and its territories 
and possessions (the ``United States'') without regard to paragraphs 
(5) or (7)(B)(i)(II) of section 212(a) of the Immigration and 
Nationality Act, as amended, 8 U.S.C. 1182(a)(5) or (7)(B)(i)(II):
          (1) a person who, on October 21, 1986, was a citizen of the 
        Trust Territory of the Pacific Islands, as defined in Title 53 
        of the Trust Territory Code in force on January 1, 1979, and 
        has become and remains a citizen of the Republic of the 
        Marshall Islands;
          (2) a person who acquires the citizenship of the Republic of 
        the Marshall Islands at birth, on or after the effective date 
        of the Constitution of the Republic of the Marshall Islands;
          (3) an immediate relative of a person referred to in 
        paragraphs (1) or (2) of this section, provided that such 
        immediate relative is a naturalized citizen of the Republic of 
        the Marshall Islands who has been an actual resident there for 
        not less than five years after attaining such naturalization 
        and who holds a certificate of actual residence, and further 
        provided, that, in the case of a spouse, such spouse has been 
        married to the person referred to in paragraph (1) or (2) of 
        this section for at least five years, and further provided, 
        that the Government of the United States is satisfied that such 
        naturalized citizen meets the requirement of subsection (b) of 
        section 104 of Public Law 99-239 as it was in effect on the day 
        prior to the effective date of this Compact, as amended;
          (4) a naturalized citizen of the Republic of the Marshall 
        Islands who was an actual resident there for not less than five 
        years after attaining such naturalization and who satisfied 
        these requirements as of April 30, 2003, who continues to be an 
        actual resident and holds a certificate of actual residence, 
        and whose name is included in a list furnished by the 
        Government of the Republic of the Marshall Islands to the 
        Government of the United States no later than the effective 
        date of the Compact, as amended, in form and content acceptable 
        to the Government of the United States, provided, that the 
        Government of the United States is satisfied that such 
        naturalized citizen meets the requirement of subsection (b) of 
        section 104 of Public Law 99-239 as it was in effect on the day 
        prior to the effective date of this Compact, as amended; or
          (5) an immediate relative of a citizen of the Republic of the 
        Marshall Islands, regardless of the immediate relative's 
        country of citizenship or period of residence in the Republic 
        of the Marshall Islands, if the citizen of the Republic of the 
        Marshall Islands is serving on active duty in any branch of the 
        United States Armed Forces, or in the active reserves.
  (b) Notwithstanding subsection (a) of this section, a person who is 
coming to the United States pursuant to an adoption outside the United 
States, or for the purpose of adoption in the United States, is 
ineligible for admission under the Compact and the Compact, as amended. 
This subsection shall apply to any person who is or was an applicant 
for admission to the United States on or after March 1, 2003, including 
any applicant for admission in removal proceedings (including appellate 
proceedings) on or after March 1, 2003, regardless of the date such 
proceedings were commenced. This subsection shall have no effect on the 
ability of the Government of the United States or any United States 
State or local government to commence or otherwise take any action 
against any person or entity who has violated any law relating to the 
adoption of any person.
  (c) Notwithstanding subsection (a) of this section, no person who has 
been or is granted citizenship in the Republic of the Marshall Islands, 
or has been or is issued a Republic of the Marshall Islands passport 
pursuant to any investment, passport sale, or similar program has been 
or shall be eligible for admission to the United States under the 
Compact or the Compact, as amended.
  (d) A person admitted to the United States under the Compact, or the 
Compact, as amended, shall be considered to have the permission of the 
Government of the United States to accept employment in the United 
States. An unexpired Republic of the Marshall Islands passport with 
unexpired documentation issued by the Government of the United States 
evidencing admission under the Compact or the Compact, as amended, 
shall be considered to be documentation establishing identity and 
employment authorization under section 274A(b)(1)(B) of the Immigration 
and Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The 
Government of the United States will take reasonable and appropriate 
steps to implement and publicize this provision, and the Government of 
the Republic of the Marshall Islands will also take reasonable and 
appropriate steps to publicize this provision.
  (e) For purposes of the Compact and the Compact, as amended,
          (1) the term ``residence'' with respect to a person means the 
        person's principal, actual dwelling place in fact, without 
        regard to intent, as provided in section 101(a)(33) of the 
        Immigration and Nationality Act, as amended, 8 U.S.C. 
        1101(a)(33), and variations of the term ``residence,'' 
        including ``resident'' and ``reside,'' shall be similarly 
        construed;
          (2) the term ``actual residence'' means physical presence in 
        the Republic of the Marshall Islands during eighty-five percent 
        of the five-year period of residency required by section 
        141(a)(3) and (4);
          (3) the term ``certificate of actual residence'' means a 
        certificate issued to a naturalized citizen by the Government 
        of the Republic of the Marshall Islands stating that the 
        citizen has complied with the actual residence requirement of 
        section 141(a)(3) or (4);
          (4) the term ``nonimmigrant'' means an alien who is not an 
        ``immigrant'' as defined in section 101(a)(15) of such Act, 8 
        U.S.C. 1101(a)(15); and
          (5) the term ``immediate relative'' means a spouse, or 
        unmarried son or unmarried daughter less than 21 years of age.
  (f) The Immigration and Nationality Act, as amended, shall apply to 
any person admitted or seeking admission to the United States (other 
than a United States possession or territory where such Act does not 
apply) under the Compact or the Compact, as amended, and nothing in the 
Compact or the Compact, as amended, shall be construed to limit, 
preclude, or modify the applicability of, with respect to such person:
          (1) any ground of inadmissibility or deportability under such 
        Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of such 
        Act, as provided in subsection (a) of this section), and any 
        defense thereto, provided that, section 237(a)(5) of such Act 
        shall be construed and applied as if it reads as follows: ``any 
        alien who has been admitted under the Compact, or the Compact, 
        as amended, who cannot show that he or she has sufficient means 
        of support in the United States, is deportable;''
          (2) the authority of the Government of the United States 
        under section 214(a)(1) of such Act to provide that admission 
        as a nonimmigrant shall be for such time and under such 
        conditions as the Government of the United States may by 
        regulations prescribe;
          (3) except for the treatment of certain documentation for 
        purposes of section 274A(b)(1)(B) of such Act as provided by 
        subsection (d) of this section of the Compact, as amended, any 
        requirement under section 274A, including but not limited to 
        section 274A(b)(1)(E);
          (4) section 643 of the Illegal Immigration Reform and 
        Immigrant Responsibility Act of 1996, Public Law 104-208, and 
        actions taken pursuant to section 643; and
          (5) the authority of the Government of the United States 
        otherwise to administer and enforce the Immigration and 
        Nationality Act, as amended, or other United States law.
  (g) Any authority possessed by the Government of the United States 
under this section of the Compact or the Compact, as amended, may also 
be exercised by the Government of a territory or possession of the 
United States where the Immigration and Nationality Act, as amended, 
does not apply, to the extent such exercise of authority is lawful 
under a statute or regulation of such territory or possession that is 
authorized by the laws of the United States.
  (h) Subsection (a) of this section does not confer on a citizen of 
the Republic of the Marshall Islands the right to establish the 
residence necessary for naturalization under the Immigration and 
Nationality Act, as amended, or to petition for benefits for alien 
relatives under that Act. Subsection (a) of this section, however, 
shall not prevent a citizen of the Republic of the Marshall Islands 
from otherwise acquiring such rights or lawful permanent resident alien 
status in the United States.
Section 142
  (a) Any citizen or national of the United States may be admitted to 
lawfully engage in occupations, and reside in the Republic of the 
Marshall Islands, subject to the rights of the Government of the 
Republic of the Marshall Islands to deny entry to or deport any such 
citizen or national as an undesirable alien. Any determination of 
inadmissibility or deportability shall be based on reasonable statutory 
grounds and shall be subject to appropriate administrative and judicial 
review within the Republic of the Marshall Islands. If a citizen or 
national of the United States is a spouse of a citizen of the Republic 
of the Marshall Islands, the Government of the Republic of the Marshall 
Islands shall allow the United States citizen spouse to establish 
residence. Should the Republic of the Marshall Islands citizen spouse 
predecease the United States citizen spouse during the marriage, the 
Government of the Republic of the Marshall Islands shall allow the 
United States citizen spouse to continue to reside in the Republic of 
the Marshall Islands.
  (b) In enacting any laws or imposing any requirements with respect to 
citizens and nationals of the United States entering the Republic of 
the Marshall Islands under subsection (a) of this section, including 
any grounds of inadmissibility or deportability, the Government of the 
Republic of the Marshall Islands shall accord to such citizens and 
nationals of the United States treatment no less favorable than that 
accorded to citizens of other countries.
  (c) Consistent with subsection (a) of this section, with respect to 
citizens and nationals of the United States seeking to engage in 
employment or invest in the Republic of the Marshall Islands, the 
Government of the Republic of the Marshall Islands shall adopt 
immigration-related procedures no less favorable than those adopted by 
the Government of the United States with respect to citizens of the 
Republic of the Marshall Islands seeking employment in the United 
States.
Section 143
  Any person who relinquishes, or otherwise loses, his United States 
nationality or citizenship, or his Republic of the Marshall Islands 
citizenship, shall be ineligible to receive the privileges set forth in 
sections 141 and 142. Any such person may apply for admission to the 
United States or the Republic of the Marshall Islands, as the case may 
be, in accordance with any other applicable laws of the United States 
or the Republic of the Marshall Islands relating to immigration of 
aliens from other countries. The laws of the Republic of the Marshall 
Islands or the United States, as the case may be, shall dictate the 
terms and conditions of any such person's stay.

                               Article V

                             Representation

Section 151
  Relations between the Government of the United States and the 
Government of the Republic of the Marshall Islands shall be conducted 
in accordance with the Vienna Convention on Diplomatic Relations. In 
addition to diplomatic missions and representation, the Governments may 
establish and maintain other offices and designate other 
representatives on terms and in locations as may be mutually agreed.
Section 152
  (a) Any citizen or national of the United States who, without 
authority of the United States, acts as the agent of the Government of 
the Republic of the Marshall Islands with regard to matters specified 
in the provisions of the Foreign Agents Registration Act of 1938, as 
amended (22 U.S.C. 611 et seq.), that apply with respect to an agent of 
a foreign principal shall be subject to the requirements of such Act. 
Failure to comply with such requirements shall subject such citizen or 
national to the same penalties and provisions of law as apply in the 
case of the failure of such an agent of a foreign principal to comply 
with such requirements. For purposes of the Foreign Agents Registration 
Act of 1938, the Republic of the Marshall Islands shall be considered 
to be a foreign country.
  (b) Subsection (a) of this section shall not apply to a citizen or 
national of the United States employed by the Government of the 
Republic of the Marshall Islands with respect to whom the Government of 
the Republic of the Marshall Islands from time to time certifies to the 
Government of the United States that such citizen or national is an 
employee of the Republic of the Marshall Islands whose principal duties 
are other than those matters specified in the Foreign Agents 
Registration Act of 1938, as amended, that apply with respect to an 
agent of a foreign principal. The agency or officer of the United 
States receiving such certifications shall cause them to be filed with 
the Attorney General, who shall maintain a publicly available list of 
the persons so certified.

                               Article VI

                        Environmental Protection

Section 161
  The Governments of the United States and the Republic of the Marshall 
Islands declare that it is their policy to promote efforts to prevent 
or eliminate damage to the environment and biosphere and to enrich 
understanding of the natural resources of the Republic of the Marshall 
Islands. In order to carry out this policy, the Government of the 
United States and the Government of the Republic of the Marshall 
Islands agree to the following mutual and reciprocal undertakings:
          (a) The Government of the United States:
                  (1) shall, for its activities controlled by the U.S. 
                Army at Kwajalein Atoll and in the Mid-Atoll Corridor 
                and for U.S. Army Kwajalein Atoll activities in the 
                Republic of the Marshall Islands, continue to apply the 
                Environmental Standards and Procedures for United 
                States Army Kwajalein Atoll Activities in the Republic 
                of the Marshall Islands, unless and until those 
                Standards or Procedures are modified by mutual 
                agreement of the Governments of the United States and 
                the Republic of the Marshall Islands;
                  (2) shall apply the National Environmental Policy Act 
                of 1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its 
                activities under the Compact, as amended, and its 
                related agreements as if the Republic of the Marshall 
                Islands were the United States;
                  (3) in the conduct of any activity not described in 
                section 161(a)(1) requiring the preparation of an 
                Environmental Impact Statement under section 161(a)(2), 
                shall comply with standards substantively similar to 
                those required by the following laws of the United 
                States, taking into account the particular environment 
                of the Republic of the Marshall Islands; the Endangered 
                Species Act of 1973, as amended, 16 U.S.C. 1531 et 
                seq.; the Clean Air Act, as amended, 42 U.S.C. 7401 et 
                seq.; the Clean Water Act (Federal Water Pollution 
                Control Act), as amended, 33 U.S.C. 1251 et seq.; Title 
                I of the Marine Protection, Research and Sanctuaries 
                Act of 1972 (the Ocean Dumping Act), 33 U.S.C. 1411 et 
                seq.; the Toxic Substances Control Act, as amended, 15 
                U.S.C. 2601 et seq.; the Solid Waste Disposal Act, as 
                amended, 42 U.S.C. 6901 et seq.; and such other 
                environmental protection laws of the United States and 
                the Republic of the Marshall Islands as may be agreed 
                from time to time with the Government of the Republic 
                of the Marshall Islands;
                  (4) shall, prior to conducting any activity not 
                described in section 161(a)(1) requiring the 
                preparation of an Environmental Impact Statement under 
                section 161(a)(2), develop, as agreed with the 
                Government of the Republic of the Marshall Islands, 
                written environmental standards and procedures to 
                implement the substantive provisions of the laws made 
                applicable to U.S. Government activities in the 
                Republic of the Marshall Islands, pursuant to section 
                161(a)(3).
          (b) The Government of the Republic of the Marshall Islands 
        shall continue to develop and implement standards and 
        procedures to protect its environment. As a reciprocal 
        obligation to the undertakings of the Government of the United 
        States under this Article, the Republic of the Marshall 
        Islands, taking into account its particular environment, shall 
        continue to develop and implement standards for environmental 
        protection substantively similar to those required of the 
        Government of the United States by section 161(a)(3) prior to 
        its conducting activities in the Republic of the Marshall 
        Islands, substantively equivalent to activities conducted there 
        by the Government of the United States and, as a further 
        reciprocal obligation, shall enforce those standards.
          (c) Section 161(a), including any standard or procedure 
        applicable thereunder, and section 161(b) may be modified or 
        superseded in whole or in part by agreement of the Government 
        of the United States and the Government of the Republic of the 
        Marshall Islands.
          (d) In the event that an Environmental Impact Statement is no 
        longer required under the laws of the United States for major 
        Federal actions significantly affecting the quality of the 
        human environment, the regulatory regime established under 
        sections 161(a)(3) and 161(a)(4) shall continue to apply to 
        such activities of the Government of the United States until 
        amended by mutual agreement.
          (e) The President of the United States may exempt any of the 
        activities of the Government of the United States under this 
        Compact, as amended, and its related agreements from any 
        environmental standard or procedure which may be applicable 
        under sections 161(a)(3) and 161(a)(4) if the President 
        determines it to be in the paramount interest of the Government 
        of the United States to do so, consistent with Title Three of 
        this Compact, as amended, and the obligations of the Government 
        of the United States under international law. Prior to any 
        decision pursuant to this subsection, the views of the 
        Government of the Republic of the Marshall Islands shall be 
        sought and considered to the extent practicable. If the 
        President grants such an exemption, to the extent practicable, 
        a report with his reasons for granting such exemption shall be 
        given promptly to the Government of the Republic of the 
        Marshall Islands.
          (f) The laws of the United States referred to in section 
        161(a)(3) shall apply to the activities of the Government of 
        the United States under this Compact, as amended, and its 
        related agreements only to the extent provided for in this 
        section.
Section 162
  The Government of the Republic of the Marshall Islands may bring an 
action for judicial review of any administrative agency action or any 
activity of the Government of the United States pursuant to section 
161(a) for enforcement of the obligations of the Government of the 
United States arising thereunder. The United States District Court for 
the District of Hawaii and the United States District Court for the 
District of Columbia shall have jurisdiction over such action or 
activity, and over actions brought under section 172(b) which relate to 
the activities of the Government of the United States and its officers 
and employees, governed by section 161, provided that:
          (a) Such actions may only be civil actions for any 
        appropriate civil relief other than punitive damages against 
        the Government of the United States or, where required by law, 
        its officers in their official capacity; no criminal actions 
        may arise under this section.
          (b) Actions brought pursuant to this section may be initiated 
        only by the Government of the Republic of the Marshall Islands.
          (c) Administrative agency actions arising under section 161 
        shall be reviewed pursuant to the standard of judicial review 
        set forth in 5 U.S.C. 706.
          (d) The United States District Court for the District of 
        Hawaii and the United States District Court for the District of 
        Columbia shall have jurisdiction to issue all necessary 
        processes, and the Government of the United States agrees to 
        submit itself to the jurisdiction of the court; decisions of 
        the United States District Court shall be reviewable in the 
        United States Court of Appeals for the Ninth Circuit or the 
        United States Court of Appeals for the District of Columbia, 
        respectively, or in the United States Supreme Court as provided 
        by the laws of the United States.
          (e) The judicial remedy provided for in this section shall be 
        the exclusive remedy for the judicial review or enforcement of 
        the obligations of the Government of the United States under 
        this Article and actions brought under section 172(b), which 
        relate to the activities of the Government of the United States 
        and its officers and employees governed by section 161.
          (f) In actions pursuant to this section, the Government of 
        the Republic of the Marshall Islands shall be treated as if it 
        were a United States citizen.
Section 163
  (a) For the purpose of gathering data necessary to study the 
environmental effects of activities of the Government of the United 
States subject to the requirements of this Article, the Government of 
the Republic of the Marshall Islands shall be granted access to 
facilities operated by the Government of the United States in the 
Republic of the Marshall Islands, to the extent necessary for this 
purpose, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the United States under Title Three.
  (b) The Government of the United States, in turn, shall be granted 
access to the Republic of the Marshall Islands for the purpose of 
gathering data necessary to discharge its obligations under this 
Article, except to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the Government 
of the Republic of the Marshall Islands under Title One, and to the 
extent necessary for this purpose shall be granted access to documents 
and other information to the same extent similar access is provided the 
Government of the Republic of the Marshall Islands under the Freedom of 
Information Act, 5 U.S.C. 552.
  (c) The Government of the Republic of the Marshall Islands shall not 
impede efforts by the Government of the United States to comply with 
applicable standards and procedures.

                              Article VII

                        General Legal Provisions

Section 171
  Except as provided in this Compact, as amended, or its related 
agreements, the application of the laws of the United States to the 
Trust Territory of the Pacific Islands by virtue of the Trusteeship 
Agreement ceased with respect to the Marshall Islands on October 21, 
1986, the date the Compact went into effect.
Section 172
  (a) Every citizen of the Republic of the Marshall Islands who is not 
a resident of the United States shall enjoy the rights and remedies 
under the laws of the United States enjoyed by any non-resident alien.
  (b) The Government of the Republic of the Marshall Islands and every 
citizen of the Republic of the Marshall Islands shall be considered to 
be a ``person'' within the meaning of the Freedom of Information Act, 5 
U.S.C. 552, and of the judicial review provisions of the Administrative 
Procedure Act, 5 U.S.C. 701-706, except that only the Government of the 
Republic of the Marshall Islands may seek judicial review under the 
Administrative Procedure Act or judicial enforcement under the Freedom 
of Information Act when such judicial review or enforcement relates to 
the activities of the Government of the United States governed by 
sections 161 and 162.
Section 173
  The Governments of the United States and the Republic of the Marshall 
Islands agree to adopt and enforce such measures, consistent with this 
Compact, as amended, and its related agreements, as may be necessary to 
protect the personnel, property, installations, services, programs and 
official archives and documents maintained by the Government of the 
United States in the Republic of the Marshall Islands pursuant to this 
Compact, as amended, and its related agreements and by the Government 
of the Republic of the Marshall Islands in the United States pursuant 
to this Compact, Compact, as amended, and its related agreements.
Section 174
  Except as otherwise provided in this Compact, as amended, and its 
related agreements:
          (a) The Government of the Republic of the Marshall Islands, 
        and its agencies and officials, shall be immune from the 
        jurisdiction of the 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 relating to labor recruitment practices, including 
registration, reporting, suspension or revocation of authorization to 
recruit persons for employment in the United States, and enforcement 
for violations of such requirements.
Section 176
  The Government of the Republic of the Marshall Islands confirms that 
final judgments in civil cases rendered by any court of the Trust 
Territory of the Pacific Islands shall continue in full force and 
effect, subject to the constitutional power of the courts of the 
Republic of the Marshall Islands to grant relief from judgments in 
appropriate cases.
Section 177
  Section 177 of the Compact entered into force with respect to the 
Marshall Islands on October 21, 1986 as follows:
          ``(a) The Government of the United States accepts the 
        responsibility for compensation owing to citizens of the 
        Marshall Islands, or the Federated States of Micronesia, (or 
        Palau) for loss or damage to property and person of the 
        citizens of the Marshall Islands, or the Federated States of 
        Micronesia, resulting from the nuclear testing program which 
        the Government of the United States conducted in the Northern 
        Marshall Islands between June 30, 1946, and August 18, 1958.
          (b) The Government of the United States and the Government of 
        the Marshall Islands shall set forth in a separate agreement 
        provisions for the just and adequate settlement of all such 
        claims which have arisen in regard to the Marshall Islands and 
        its citizens and which have not as yet been compensated or 
        which in the future may arise, for the continued administration 
        by the Government of the United States of direct radiation 
        related medical surveillance and treatment programs and 
        radiological monitoring activities and for such additional 
        programs and activities as may be mutually agreed, and for the 
        assumption by the Government of the Marshall Islands of 
        responsibility for enforcement of limitations on the 
        utilization of affected areas developed in cooperation with the 
        Government of the United States and for the assistance by the 
        Government of the United States in the exercise of such 
        responsibility as may be mutually agreed. This separate 
        agreement shall come into effect simultaneously with this 
        Compact and shall remain in effect in accordance with its own 
        terms.
          (c) The Government of the United States shall provide to the 
        Government of the Marshall Islands, on a grant basis, the 
        amount of $150 million to be paid and distributed in accordance 
        with the separate agreement referred to in this Section, and 
        shall provide the services and programs set forth in this 
        separate agreement, the language of which is incorporated into 
        this Compact.''
The Compact, as amended, makes no changes to, and has no effect upon, 
Section 177 of the Compact, nor does the Compact, as amended, change or 
affect the separate agreement referred to in Section 177 of the Compact 
including Articles IX and X of that separate agreement, and measures 
taken by the parties thereunder.
Section 178
  (a) The Federal agencies of the Government of the United States that 
provide services and related programs in the Republic of the Marshall 
Islands pursuant to Title Two are authorized to settle and pay tort 
claims arising in the Republic of the Marshall Islands from the 
activities of such agencies or from the acts or omissions of the 
employees of such agencies. Except as provided in section 178(b), the 
provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall apply exclusively 
to such administrative settlements and payments.
  (b) Claims under section 178(a) that cannot be settled under section 
178(a) shall be disposed of exclusively in accordance with Article II 
of Title Four. Arbitration awards rendered pursuant to this subsection 
shall be paid out of funds under 31 U.S.C. 1304.
  (c) The Government of the United States and the Government of the 
Republic of the Marshall Islands shall, in the separate agreement 
referred to in section 231, provide for:
          (1) the administrative settlement of claims referred to in 
        section 178(a), including designation of local agents in each 
        State of the Republic of the Marshall Islands; such agents to 
        be empowered to accept, investigate and settle such claims, in 
        a timely manner, as provided in such separate agreements; and
          (2) arbitration, referred to in section 178(b), in a timely 
        manner, at a site convenient to the claimant, in the event a 
        claim is not otherwise settled pursuant to section 178(a).
  (d) The provisions of section 174(d) shall not apply to claims 
covered by this section.
  (e) Except as otherwise explicitly provided by law of the United 
States, this Compact, as amended, or its related agreements, neither 
the Government of the United States, its instrumentalities, nor any 
person acting on behalf of the Government of the United States, shall 
be named a party in any action based on, or arising out of, the 
activity or activities of a recipient of any grant or other assistance 
provided by the Government of the United States (or the activity or 
activities of the recipient's agency or any other person or entity 
acting on behalf of the recipient).
Section 179
  (a) The courts of the Republic of the Marshall Islands shall not 
exercise criminal jurisdiction over the Government of the United 
States, or its instrumentalities.
  (b) The courts of the Republic of the Marshall Islands shall not 
exercise criminal jurisdiction over any person if the Government of the 
United States provides notification to the Government of the Republic 
of the Marshall Islands that such person was acting on behalf of the 
Government of the United States, for actions taken in furtherance of 
section 221 or 224 of this amended Compact, or any other provision of 
law authorizing financial, program, or service assistance to the 
Republic of the Marshall Islands.

                               TITLE TWO

                           ECONOMIC RELATIONS

                               Article I

                            Grant Assistance

Section 211--Annual Grant Assistance
  (a) In order to assist the Government of the Republic of the Marshall 
Islands in its efforts to promote the economic advancement and 
budgetary self-reliance of its people, and in recognition of the 
special relationship that exists between the Republic of the Marshall 
Islands and the United States, the Government of the United States 
shall provide assistance on a grant basis for a period of twenty years 
in the amounts set forth in section 217, commencing on the effective 
date of this Compact, as amended. Such grants shall be used for 
assistance in education, health care, the environment, public sector 
capacity building, and private sector development, or for other areas 
as mutually agreed, with priorities in the education and health care 
sectors. Consistent with the medium-term budget and investment 
framework described in subsection (f) of this section, the proposed 
division of this amount among the identified areas shall require the 
concurrence of both the Government of the United States and the 
Government of the Republic of the Marshall Islands, through the Joint 
Economic Management and Financial Accountability Committee described in 
section 214. The Government of the United States shall disburse the 
grant assistance and monitor the use of such grant assistance in 
accordance with the provisions of this Article and an Agreement 
Concerning Procedures for the Implementation of United States Economic 
Assistance Provided in the Compact, as Amended, of Free Association 
Between the Government of the United States of America and the 
Government of the Republic of the Marshall Islands (``Fiscal Procedures 
Agreement'') which shall come into effect simultaneously with this 
Compact, as amended.
          (1) Education.--United States grant assistance shall be made 
        available in accordance with the strategic framework described 
        in subsection (f) of this section to support and improve the 
        educational system of the Republic of the Marshall Islands and 
        develop the human, financial, and material resources necessary 
        for the Republic of the Marshall Islands to perform these 
        services. Emphasis should be placed on advancing a quality 
        basic education system.
          (2) Health.--United States grant assistance shall be made 
        available in accordance with the strategic framework described 
        in subsection (f) of this section to support and improve the 
        delivery of preventive, curative and environmental care and 
        develop the human, financial, and material resources necessary 
        for the Republic of the Marshall Islands to perform these 
        services.
          (3) Private sector development.--United States grant 
        assistance shall be made available in accordance with the 
        strategic framework described in subsection (f) of this section 
        to support the efforts of the Republic of the Marshall Islands 
        to attract foreign investment and increase indigenous business 
        activity by vitalizing the commercial environment, ensuring 
        fair and equitable application of the law, promoting adherence 
        to core labor standards, maintaining progress toward 
        privatization of state-owned and partially state-owned 
        enterprises, and engaging in other reforms.
          (4) Capacity building in the public sector.--United States 
        grant assistance shall be made available in accordance with the 
        strategic framework described in subsection (f) of this section 
        to support the efforts of the Republic of the Marshall Islands 
        to build effective, accountable and transparent national and 
        local government and other public sector institutions and 
        systems.
          (5) Environment.--United States grant assistance shall be 
        made available in accordance with the strategic framework 
        described in subsection (f) of this section to increase 
        environmental protection; establish and manage conservation 
        areas; engage in environmental infrastructure planning, design 
        construction and operation; and to involve the citizens of the 
        Republic of the Marshall Islands in the process of conserving 
        their country's natural resources.
  (b) Kwajalein Atoll.--
          (1) Of the total grant assistance made available under 
        subsection (a) of this section, the amount specified herein 
        shall be allocated annually from fiscal year 2004 through 
        fiscal year 2023 (and thereafter in accordance with the 
        Agreement between the Government of the United States and the 
        Government of the Republic of the Marshall Islands Regarding 
        Military Use and Operating Rights) to advance the objectives 
        and specific priorities set forth in subsections (a) and (d) of 
        this section and the Fiscal Procedures Agreement, to address 
        the special needs of the community at Ebeye, Kwajalein Atoll 
        and other Marshallese communities within Kwajalein Atoll. This 
        United States grant assistance shall be made available, in 
        accordance with the medium-term budget and investment framework 
        described in subsection (f) of this section, to support and 
        improve the infrastructure and delivery of services and develop 
        the human and material resources necessary for the Republic of 
        the Marshall Islands to carry out its responsibility to 
        maintain such infrastructure and deliver such services. The 
        amount of this assistance shall be $3,100,000, with an 
        inflation adjustment as provided in section 218, from fiscal 
        year 2004 through fiscal year 2013 and the fiscal year 2013 
        level of funding, with an inflation adjustment as provided in 
        section 218, will be increased by $2 million for fiscal year 
        2014. The fiscal year 2014 level of funding, with an inflation 
        adjustment as provided in section 218, will be made available 
        from fiscal year 2015 through fiscal year 2023 (and thereafter 
        as noted above).
          (2) The Government of the United States shall also provide to 
        the Government of the Republic of the Marshall Islands, in 
        conjunction with section 321(a) of this Compact, as amended, an 
        annual payment from fiscal year 2004 through fiscal year 2023 
        (and thereafter in accordance with the Agreement between the 
        Government of the United States and the Government of the 
        Republic of the Marshall Islands Regarding Military Use and 
        Operating Rights) of $1.9 million. This grant assistance will 
        be subject to the Fiscal Procedures Agreement and will be 
        adjusted for inflation under section 218 and used to address 
        the special needs of the community at Ebeye, Kwajalein Atoll 
        and other Marshallese communities within Kwajalein Atoll with 
        emphasis on the Kwajalein landowners, as described in the 
        Fiscal Procedures Agreement.
          (3) Of the total grant assistance made available under 
        subsection (a) of this section, and in conjunction with section 
        321(a) of the Compact, as amended, $200,000, with an inflation 
        adjustment as provided in section 218, shall be allocated 
        annually from fiscal year 2004 through fiscal year 2023 (and 
        thereafter as provided in the Agreement between the Government 
        of the United States and the Government of the Republic of the 
        Marshall Islands Regarding Military Use and Operating Rights) 
        for a grant to support increased participation of the 
        Government of the Republic of the Marshall Islands 
        Environmental Protection Authority in the annual U.S. Army 
        Kwajalein Atoll Environmental Standards Survey and to promote a 
        greater Government of the Republic of the Marshall Islands 
        capacity for independent analysis of the Survey's findings and 
        conclusions.
  (c) Humanitarian Assistance-Republic of the Marshall Islands 
Program.--In recognition of the special development needs of the 
Republic of the Marshall Islands, the Government of the United States 
shall make available to the Government of the Republic of the Marshall 
Islands, on its request and to be deducted from the grant amount made 
available under subsection (a) of this section, a Humanitarian 
Assistance--Republic of the Marshall Islands (``HARMI'') Program with 
emphasis on health, education, and infrastructure (including 
transportation), projects and such other projects as mutually agreed. 
The terms and conditions of the HARMI shall be set forth in the 
Agreement Regarding the Military Use and Operating Rights of the 
Government of the United States in the Republic of the Marshall Islands 
Concluded Pursuant to Sections 321 and 323 of the Compact of Free 
Association, as Amended, which shall come into effect simultaneously 
with the amendments to this Compact.
  (d) Public Infrastructure.--
          (1) Unless otherwise agreed, not less than 30 percent and not 
        more than 50 percent of U.S. annual grant assistance provided 
        under this section shall be made available in accordance with a 
        list of specific projects included in the infrastructure 
        improvement and maintenance plan prepared by the Government of 
        the Republic of the Marshall Islands as part of the strategic 
        framework described in subsection (f) of this section.
          (2) Infrastructure Maintenance Fund.--Five percent of the 
        annual public infrastructure grant made available under 
        paragraph (1) of this subsection shall be set aside, with an 
        equal contribution from the Government of the Republic of the 
        Marshall Islands, as a contribution to an Infrastructure 
        Maintenance Fund. Administration of the Infrastructure 
        Maintenance Fund shall be governed by the Fiscal Procedures 
        Agreement.
  (e) Disaster Assistance Emergency Fund.--Of the total grant 
assistance made available under subsection (a) of this section, an 
amount of two hundred thousand dollars ($200,000) shall be provided 
annually, with an equal contribution from the Government of the 
Republic of the Marshall Islands, as a contribution to a Disaster 
Assistance Emergency Fund (``DAEF''). Any funds from the DAEF may be 
used only for assistance and rehabilitation resulting from disasters 
and emergencies. The funds will be accessed upon declaration of a State 
of Emergency by the Government of the Republic of the Marshall Islands, 
with the concurrence of the United States Chief of Mission to the 
Republic of the Marshall Islands. Administration of the DAEF shall be 
governed by the Fiscal Procedures Agreement.
  (f) Budget and Investment Framework.--The Government of the Republic 
of the Marshall Islands shall prepare and maintain an official medium-
term budget and investment framework. The framework shall be strategic 
in nature, shall be continuously reviewed and updated through the 
annual budget process, and shall make projections on a multi-year 
rolling basis. Each of the sectors and areas named in subsections (a), 
(b), and (d) of this section, or other sectors and areas as mutually 
agreed, shall be accorded specific treatment in the framework. Those 
portions of the framework that contemplate the use of United States 
grant funds shall require the concurrence of both the Government of the 
United States and the Government of the Republic of the Marshall 
Islands.
Section 212--Kwajalein Impact and Use
  The Government of the United States shall provide to the Government 
of the Republic of the Marshall Islands in conjunction with section 
321(a) of the Compact, as amended, and the agreement between the 
Government of the United States and the Government of the Republic of 
the Marshall Islands regarding military use and operating rights, a 
payment in fiscal year 2004 of $15,000,000, with no adjustment for 
inflation. In fiscal year 2005 and through fiscal year 2013, the annual 
payment will be the fiscal year 2004 amount ($15,000,000) with an 
inflation adjustment as provided under section 218. In fiscal year 
2014, the annual payment will be $18,000,000 (with no adjustment for 
inflation) or the fiscal year 2013 amount with an inflation adjustment 
under section 218, whichever is greater. For fiscal year 2015 through 
fiscal year 2023 (and thereafter in accordance with the Agreement 
between the Government of the United States and the Government of the 
Republic of the Marshall Islands Regarding Military Use and Operating 
Rights) the annual payment will be the fiscal year 2014 amount, with an 
inflation adjustment as provided under section 218.
Section 213--Accountability
  (a) Regulations and policies normally applicable to United States 
financial assistance to its state and local governments, as set forth 
in the Fiscal Procedures Agreement, shall apply to each grant described 
in section 211, and to grants administered under section 221 below, 
except as modified in the separate agreements referred to in section 
231 of this Compact, as amended, or by U.S. law. As set forth in the 
Fiscal Procedures Agreement, reasonable terms and conditions, including 
annual performance indicators that are necessary to ensure effective 
use of United States assistance and reasonable progress toward 
achieving program objectives may be attached. In addition, the United 
States may seek appropriate remedies for noncompliance with the terms 
and conditions attached to the assistance, or for failure to comply 
with section 234, including withholding assistance.
  (b) The Government of the United States shall, for each fiscal year 
of the twenty years during which assistance is to be provided on a 
sector grant basis under section 211 (a), grant the Government of the 
Republic of the Marshall Islands an amount equal to the lesser of (i) 
one half of the reasonable, properly documented cost incurred during 
such fiscal year to conduct the annual audit required under Article 
VIII (2) of the Fiscal Procedures Agreement or (ii) $500,000. Such 
amount will not be adjusted for inflation under section 218 or 
otherwise.
Section 214--Joint Economic Management and Financial Accountability 
Committee
  The Governments of the United States and the Republic of the Marshall 
Islands shall establish a Joint Economic Management and Financial 
Accountability Committee, composed of a U.S. chair, two other members 
from the Government of the United States and two members from the 
Government of the Republic of the Marshall Islands. The Joint Economic 
Management and Financial Accountability Committee shall meet at least 
once each year to review the audits and reports required under this 
Title and the Fiscal Procedures Agreement, evaluate the progress made 
by the Republic of the Marshall Islands in meeting the objectives 
identified in its framework described in subsection (f) of section 211, 
with particular focus on those parts of the framework dealing with the 
sectors and areas identified in subsection (a) of section 211, identify 
problems encountered, and recommend ways to increase the effectiveness 
of U.S. assistance made available under this Title. The establishment 
and operations of the Joint Economic Management and Financial 
Accountability Committee shall be governed by the Fiscal Procedures 
Agreement.
Section 215--Annual Report
  The Government of the Republic of the Marshall Islands shall report 
annually to the President of the United States on the use of United 
States sector grant assistance and other assistance and progress in 
meeting mutually agreed program and economic goals. The Joint Economic 
Management and Financial Accountability Committee shall review and 
comment on the report and make appropriate recommendations based 
thereon.
Section 216--Trust Fund
  (a) The United States shall contribute annually for twenty years from 
the effective date of the Compact, as amended, in the amounts set forth 
in section 217 into a trust fund established in accordance with the 
Agreement Between the Government of the United States of America and 
the Government of the Republic of the Marshall Islands Implementing 
Section 216 and Section 217 of the Compact, as Amended, Regarding a 
Trust Fund (``Trust Fund Agreement''), which shall come into effect 
simultaneously with this Compact, as amended. Upon termination of the 
annual grant assistance under section 211 (a), (d) and (e), the 
earnings of the fund shall thereafter be used for the purposes 
described in section 211 or as otherwise mutually agreed.
  (b) The United States contribution into the Trust Fund described in 
subsection (a) of this section is conditioned on the Government of the 
Republic of the Marshall Islands contributing to the Trust Fund at 
least $25,000,000, on the effective date of the Trust Fund Agreement or 
on October 1, 2003, whichever is later, $2,500,000 prior to October 1, 
2004, and $2,500,000 prior to October 1, 2005. Any funds received by 
the Republic of the Marshall Islands under section 111(d) of Public Law 
99-239 (January 14, 1986), or successor provisions, would be 
contributed to the Trust Fund as a Republic of the Marshall Islands' 
contribution.
  (c) The terms regarding the investment and management of funds and 
use of the income of the Trust Fund shall be governed by the Trust Fund 
Agreement. Funds derived from United States investment shall not be 
subject to Federal or state taxes in the United States or any taxes in 
the Republic of the Marshall Islands. The Trust Fund Agreement shall 
also provide for annual reports to the Government of the United States 
and to the Government of the Republic of the Marshall Islands. The 
Trust Fund Agreement shall provide for appropriate distributions of 
trust fund proceeds to the Republic of the Marshall Islands and for 
appropriate remedies for the failure of the Republic of the Marshall 
Islands to use income of the Trust Fund for the annual grant purposes 
set forth in section 211. These remedies may include the return to the 
United States of the present market value of its contributions to the 
Trust Fund and the present market value of any undistributed income on 
the contributions of the United States. If this Compact, as amended, is 
terminated, the provisions of sections 451-453 of the Compact, as 
amended, and the Trust Fund Agreement shall govern treatment of any 
U.S. contributions to the Trust Fund or accrued income thereon.
Section 217--Annual Grant Funding and Trust Fund Contributions
  The funds described in sections 211, 212, 213(b), and 216 shall be 
made available as follows:

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

Section 218--Inflation Adjustment
  Except as otherwise provided, the amounts stated in this Title shall 
be adjusted for each United States Fiscal Year by the percent that 
equals two-thirds of the percent change in the United States Gross 
Domestic Product Implicit Price Deflator, or 5 percent, whichever is 
less in any one year, using the beginning of Fiscal Year 2004 as a 
base.
Section 219--Carry-Over of Unused Funds
  If in any year the funds made available by the Government of the 
United States for that year pursuant to this Article are not completely 
obligated by the Government of the Republic of the Marshall Islands, 
the unobligated balances shall remain available in addition to the 
funds to be provided in subsequent years.

                               Article II

                    Services and Program Assistance

Section 221
  (a) Services.--The Government of the United States shall make 
available to the Republic of the Marshall Islands, in accordance with 
and to the extent provided in the Federal Programs and Services 
Agreement referred to in Section 231, the services and related programs 
of:
          (1) the United States Weather Service;
          (2) the United States Postal Service;
          (3) the United States Federal Aviation Administration;
          (4) the United States Department of Transportation; and
          (5) the Department of Homeland Security, and the United 
        States Agency for International Development, Office of Foreign 
        Disaster Assistance.
Upon the effective date of this Compact, as amended, the United States 
Departments and Agencies named or having responsibility to provide 
these services and related programs shall have the authority to 
implement the relevant provisions of the Federal Programs and Services 
Agreement referred to in section 231.
  (b) Programs.--
          (1) Other than the services and programs covered by 
        subsection (a) of this section, and to the extent authorized by 
        the Congress of the United States, the Government of the United 
        States shall make available to the Republic of the Marshall 
        Islands the services and programs that were available to the 
        Republic of the Marshall Islands on the effective date of this 
        Compact, as amended, to the extent that such services and 
        programs continue to be available to State and local 
        governments of the United States. As set forth in the Fiscal 
        Procedures Agreement, funds provided under subsection (a) of 
        section 211 shall be considered to be local revenues of the 
        Government of the Republic of the Marshall Islands when used as 
        the local share required to obtain Federal programs and 
        services.
          (2) Unless provided otherwise by U.S. law, the services and 
        programs described in paragraph (1) of this subsection shall be 
        extended in accordance with the terms of the Federal Programs 
        and Services Agreement.
  (c) The Government of the United States shall have and exercise such 
authority as is necessary to carry out its responsibilities under this 
Title and the Federal Programs and Services Agreement, including the 
authority to monitor and administer all service and program assistance 
provided by the United States to the Republic of the Marshall Islands. 
The Federal Programs and Services Agreement shall also set forth the 
extent to which services and programs shall be provided to the Republic 
of the Marshall Islands.
  (d) Except as provided elsewhere in this Compact, as amended, under 
any separate agreement entered into under this Compact, as amended, or 
otherwise under U.S. law, all Federal domestic programs extended to or 
operating in the Republic of the Marshall Islands shall be subject to 
all applicable criteria, standards, reporting requirements, auditing 
procedures, and other rules and regulations applicable to such programs 
and services when operating in the United States.
  (e) The Government of the United States shall make available to the 
Republic of the Marshall Islands alternate energy development projects, 
studies, and conservation measures to the extent provided for the 
Freely Associated States in the laws of the United States.
Section 222
  The Government of the United States and the Government of the 
Republic of the Marshall Islands may agree from time to time to extend 
to the Republic of the Marshall Islands additional United States grant 
assistance, services and programs, as provided under the laws of the 
United States. Unless inconsistent with such laws, or otherwise 
specifically precluded by the Government of the United States at the 
time such additional grant assistance, services, or programs are 
extended, the Federal Programs and Services Agreement shall apply to 
any such assistance, services or programs.
Section 223
  The Government of the Republic of the Marshall Islands shall make 
available to the Government of the United States at no cost such land 
as may be necessary for the operations of the services and programs 
provided pursuant to this Article, and such facilities as are provided 
by the Government of the Republic of the Marshall Islands at no cost to 
the Government of the United States as of the effective date of this 
Compact, as amended, or as may be mutually agreed thereafter.
Section 224
  The Government of the Republic of the Marshall Islands may request, 
from the time to time, technical assistance from the Federal agencies 
and institutions of the Government of the United States, which are 
authorized to grant such technical assistance in accordance with its 
laws. If technical assistance is granted pursuant to such a request, 
the Government of the United States shall provide the technical 
assistance in a manner which gives priority consideration to the 
Republic of the Marshall Islands over other recipients not a part of 
the United States, its territories or possessions, and equivalent 
consideration to the Republic of the Marshall Islands with respect to 
other states in Free Association with the United States. Such 
assistance shall be made available on a reimbursable or non-
reimbursable basis to the extent provided by United States law.

                              Article III

                       Administrative Provisions

Section 231
  The specific nature, extent and contractual arrangements of the 
services and programs provided for in section 221 of this Compact, as 
amended, as well as the legal status of agencies of the Government of 
the United States, their civilian employees and contractors, and the 
dependents of such personnel while present in the Republic of the 
Marshall Islands, and other arrangements in connection with the 
assistance, services, or programs furnished by the Government of the 
United States, are set forth in a Federal Programs and Services 
Agreement which shall come into effect simultaneously with this 
Compact, as amended.
Section 232
  The Government of the United States, in consultation with the 
Government of the Republic of the Marshall Islands, shall determine and 
implement procedures for the periodic audit of all grants and other 
assistance made under Article I of this Title and of all funds expended 
for the services and programs provided under Article II of this Title. 
Further, in accordance with the Fiscal Procedures Agreement described 
in subsection (a) of section 211, the Comptroller General of the United 
States shall have such powers and authorities as described in sections 
103(m) and 110(c) of Public Law 99-239, 99 Stat. 1777-78, and 99 Stat. 
1799 (January 14, 1986).
Section 233
  Approval of this Compact, as amended, by the Government of the United 
States, in accordance with its constitutional processes, shall 
constitute a pledge by the United States that the sums and amounts 
specified as grants in section 211 of this Compact, as amended, shall 
be appropriated and paid to the Republic of the Marshall Islands for 
such period as those provisions of this Compact, as amended, remain in 
force, provided that the Republic of the Marshall Islands complies with 
the terms and conditions of this Title and related subsidiary 
agreements.
Section 234
  The Government of the Republic of the Marshall Islands pledges to 
cooperate with, permit, and assist if reasonably requested, designated 
and authorized representatives of the Government of the United States 
charged with investigating whether Compact funds, or any other 
assistance authorized under this Compact, as amended, have, or are 
being, used for purposes other than those set forth in this Compact, as 
amended, or its subsidiary agreements. In carrying out this 
investigative authority, such United States Government representatives 
may request that the Government of the Republic of the Marshall Islands 
subpoena documents and records and compel testimony in accordance with 
the laws and Constitution of the Republic of the Marshall Islands. Such 
assistance by the Government of the Republic of the Marshall Islands to 
the Government of the United States shall not be unreasonably withheld. 
The obligation of the Government of the Marshall Islands to fulfill its 
pledge herein is a condition to its receiving payment of such funds or 
other assistance authorized under this Compact, as amended. The 
Government of the United States shall pay any reasonable costs for 
extraordinary services executed by the Government of the Marshall 
Islands in carrying out the provisions of this section.

                               Article IV

                                 Trade

Section 241
  The Republic of the Marshall Islands is not included in the customs 
territory of the United States.
Section 242
  The President shall proclaim the following tariff treatment for 
articles imported from the Republic of the Marshall Islands which shall 
apply during the period of effectiveness of this title:
          (a) Unless otherwise excluded, articles imported from the 
        Republic of the Marshall Islands, subject to the limitations 
        imposed under section 503(b) of title V of the Trade Act of 
        1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
          (b) Only tuna in airtight containers provided for in heading 
        1604.14.22 of the Harmonized Tariff Schedule of the United 
        States that is imported from the Republic of the Marshall 
        Islands and the Federated States of Micronesia during any 
        calendar year not to exceed 10 percent of apparent United 
        States consumption of tuna in airtight containers during the 
        immediately preceding calendar year, as reported by the 
        National Marine Fisheries Service, shall be exempt from duty; 
        but the quantity of tuna given duty-free treatment under this 
        paragraph for any calendar year shall be counted against the 
        aggregated quantity of tuna in airtight containers that is 
        dutiable under rate column numbered 1 of such heading 
        1604.14.22 for that calendar year.
          (c) The duty-free treatment provided under subsection (a) 
        shall not apply to:
                  (1) watches, clocks, and timing apparatus provided 
                for in Chapter 91, excluding heading 9113, of the 
                Harmonized Tariff Schedule of the United States;
                  (2) buttons (whether finished or not finished) 
                provided for in items 9606.21.40 and 9606.29.20 of such 
                Schedule;
                  (3) textile and apparel articles which are subject to 
                textile agreements; and
                  (4) footwear, handbags, luggage, flat goods, work 
                gloves, and leather wearing apparel which were not 
                eligible articles for purposes of title V of the Trade 
                Act of 1974 (19 U.S.C. 2461, et seq.) on April 1, 1984.
          (d) If the cost or value of materials produced in the customs 
        territory of the United States is included with respect to an 
        eligible article which is a product of the Republic of the 
        Marshall Islands, an amount not to exceed 15 percent of the 
        appraised value of the article at the time it is entered that 
        is attributable to such United States cost or value may be 
        applied for duty assessment purposes toward determining the 
        percentage referred to in section 503(a)(2) of title V of the 
        Trade Act of 1974.
Section 243
  Articles imported from the Republic of the Marshall Islands which are 
not exempt from duty under subsections (a), (b), (c), and
  (d) of section 242 shall be subject to the rates of duty set forth in 
column numbered 1-general of the Harmonized Tariff Schedule of the 
United States (HTSUS).
Section 244
  (a) All products of the United States imported into the Republic of 
the Marshall Islands shall receive treatment no less favorable than 
that accorded like products of any foreign country with respect to 
customs duties or charges of a similar nature and with respect to laws 
and regulations relating to importation, exportation, taxation, sale, 
distribution, storage or use.
  (b) The provisions of subsection (a) shall not apply to advantages 
accorded by the Republic of the Marshall Islands by virtue of their 
full membership in the Pacific Island Countries Trade Agreement 
(PICTA), done on August, 18, 2001, to those governments listed in 
Article 26 of PICTA, as of the date the Compact, as amended, is signed.
  (c) Prior to entering into consultations on, or concluding, a free 
trade agreement with governments not listed in Article 26 of PICTA, the 
Republic of the Marshall Islands shall consult with the United States 
regarding whether or how subsection (a) of section 244 shall be 
applied.

                               Article V

                          Finance and Taxation

Section 251
  The currency of the United States is the official circulating legal 
tender of the Republic of the Marshall Islands. Should the Government 
of the Republic of the Marshall Islands act to institute another 
currency, the terms of an appropriate currency transitional period 
shall be as agreed with the Government of the United States.
Section 252
  The Government of the Republic of the Marshall Islands may, with 
respect to United States persons, tax income derived from sources 
within its respective jurisdiction, property situated therein, 
including transfers of such property by gift or at death, and products 
consumed therein, in such manner as the Government of the Republic of 
the Marshall Islands deems appropriate. The determination of the source 
of any income, or the situs of any property, shall for purposes of this 
Compact, as amended, be made according to the United States Internal 
Revenue Code.
Section 253
  A citizen of the Republic of the Marshall Islands, domiciled therein, 
shall be exempt from estate, gift, and generation-skipping transfer 
taxes imposed by the Government of the United States, provided that 
such citizen of the Republic of the Marshall Islands is neither a 
citizen nor a resident of the United States.
Section 254
  (a) In determining any income tax imposed by the Government of the 
Republic of the Marshall Islands, the Government of the Republic of the 
Marshall Islands shall have authority to impose tax upon income derived 
by a resident of the Republic of the Marshall Islands from sources 
without the Republic of the Marshall Islands, in the same manner and to 
the same extent as the Government of the Republic of the Marshall 
Islands imposes tax upon income derived from within its own 
jurisdiction. If the Government of the Republic of the Marshall Islands 
exercises such authority as provided in this subsection, any individual 
resident of the Republic of the Marshall Islands who is subject to tax 
by the Government of the United States on income which is also taxed by 
the Government of the Republic of the Marshall Islands shall be 
relieved of liability to the Government of the United States for the 
tax which, but for this subsection, would otherwise be imposed by the 
Government of the United States on such income. However, the relief 
from liability to the United States Government referred to in the 
preceding sentence means only relief in the form of the foreign tax 
credit (or deduction in lieu thereof) available with respect to the 
income taxes of a possession of the United States, and relief in the 
form of the exclusion under section 911 of the Internal Revenue Code of 
1986. For purposes of this section, the term ``resident of the Republic 
of the Marshall Islands'' shall be deemed to include any person who was 
physically present in the Republic of the Marshall Islands for a period 
of 183 or more days during any taxable year.
  (b) If the Government of the Republic of the Marshall Islands 
subjects income to taxation substantially similar to that which was 
imposed by the Trust Territory Code in effect on January 1, 1980, such 
Government shall be deemed to have exercised the authority described in 
section 254(a).
Section 255
  For purposes of section 274(h)(3)(A) of the U.S. Internal Revenue 
Code of 1986, the term ``North American Area'' shall include the 
Republic of the Marshall Islands.

                              TITLE THREE

                     SECURITY AND DEFENSE RELATIONS

                               Article I

                      Authority and Responsibility

Section 311
  (a) The Government of the United States has full authority and 
responsibility for security and defense matters in or relating to the 
Republic of the Marshall Islands.
  (b) This authority and responsibility includes:
          (1) the obligation to defend the Republic of the Marshall 
        Islands and its people from attack or threats thereof as the 
        United States and its citizens are defended;
          (2) the option to foreclose access to or use of the Republic 
        of the Marshall Islands by military personnel or for the 
        military purposes of any third country; and
          (3) the option to establish and use military areas and 
        facilities in the Republic of the Marshall Islands, subject to 
        the terms of the separate agreements referred to in sections 
        321 and 323.
  (c) The Government of the United States confirms that it shall act in 
accordance with the principles of international law and the Charter of 
the United Nations in the exercise of this authority and 
responsibility.
Section 312
  Subject to the terms of any agreements negotiated in accordance with 
sections 321 and 323, the Government of the United States may conduct 
within the lands, waters and airspace of the Republic of the Marshall 
Islands the activities and operations necessary for the exercise of its 
authority and responsibility under this Title.
Section 313
  (a) The Government of the Republic of the Marshall Islands shall 
refrain from actions that the Government of the United States 
determines, after appropriate consultation with that Government, to be 
incompatible with its authority and responsibility for security and 
defense matters in or relating to the Republic of the Marshall Islands.
  (b) The consultations referred to in this section shall be conducted 
expeditiously at senior levels of the two Governments, and the 
subsequent determination by the Government of the United States 
referred to in this section shall be made only at senior interagency 
levels of the Government of the United States.
  (c) The Government of the Republic of the Marshall Islands shall be 
afforded, on an expeditious basis, an opportunity to raise its concerns 
with the United States Secretary of State personally and the United 
States Secretary of Defense personally regarding any determination made 
in accordance with this section.
Section 314
  (a) Unless otherwise agreed, the Government of the United States 
shall not, in the Republic of the Marshall Islands:
          (1) test by detonation or dispose of any nuclear weapon, nor 
        test, dispose of, or discharge any toxic chemical or biological 
        weapon; or
          (2) test, dispose of, or discharge any other radioactive, 
        toxic chemical or biological materials in an amount or manner 
        that would be hazardous to public health or safety.
  (b) Unless otherwise agreed, other than for transit or overflight 
purposes or during time of a national emergency declared by the 
President of the United States, a state of war declared by the Congress 
of the United States or as necessary to defend against an actual or 
impending armed attack on the United States, the Republic of the 
Marshall Islands or the Federated States of Micronesia, the Government 
of the United States shall not store in the Republic of the Marshall 
Islands or the Federated States of Micronesia any toxic chemical 
weapon, nor any radioactive materials nor any toxic chemical materials 
intended for weapons use.
  (c) Radioactive, toxic chemical, or biological materials not intended 
for weapons use shall not be affected by section 314(b).
  (d) No material or substance referred to in this section shall be 
stored in the Republic of the Marshall Islands except in an amount and 
manner which would not be hazardous to public health or safety. In 
determining what shall be an amount or manner which would be hazardous 
to public health or safety under this section, the Government of the 
United States shall comply with any applicable mutual agreement, 
international guidelines accepted by the Government of the United 
States, and the laws of the United States and their implementing 
regulations.
  (e) Any exercise of the exemption authority set forth in section 
161(e) shall have no effect on the obligations of the Government of the 
United States under this section or on the application of this 
subsection.
  (f) The provisions of this section shall apply in the areas in which 
the Government of the Republic of the Marshall Islands exercises 
jurisdiction over the living resources of the seabed, subsoil or water 
column adjacent to its coasts.
Section 315
  The Government of the United States may invite members of the armed 
forces of other countries to use military areas and facilities in the 
Republic of the Marshall Islands, in conjunction with and under the 
control of United States Armed Forces. Use by units of the armed forces 
of other countries of such military areas and facilities, other than 
for transit and overflight purposes, shall be subject to consultation 
with and, in the case of major units, approval of the Government of the 
Republic of the Marshall Islands.
Section 316
  The authority and responsibility of the Government of the United 
States under this Title may not be transferred or otherwise assigned.

                               Article II

                Defense Facilities and Operating Rights

Section 321
  (a) Specific arrangements for the establishment and use by the 
Government of the United States of military areas and facilities in the 
Republic of the Marshall Islands are set forth in separate agreements, 
which shall remain in effect in accordance with the terms of such 
agreements.
  (b) If, in the exercise of its authority and responsibility under 
this Title, the Government of the United States requires the use of 
areas within the Republic of the Marshall Islands in addition to those 
for which specific arrangements are concluded pursuant to section 
321(a), it may request the Government of the Republic of the Marshall 
Islands to satisfy those requirements through leases or other 
arrangements. The Government of the Republic of the Marshall Islands 
shall sympathetically consider any such request and shall establish 
suitable procedures to discuss it with and provide a prompt response to 
the Government of the United States.
  (c) The Government of the United States recognizes and respects the 
scarcity and special importance of land in the Republic of the Marshall 
Islands. In making any requests pursuant to section 321(b), the 
Government of the United States shall follow the policy of requesting 
the minimum area necessary to accomplish the required security and 
defense purpose, of requesting only the minimum interest in real 
property necessary to support such purpose, and of requesting first to 
satisfy its requirement through public real property, where available, 
rather than through private real property.
Section 322
  The Government of the United States shall provide and maintain fixed 
and floating aids to navigation in the Republic of the Marshall Islands 
at least to the extent necessary for the exercise of its authority and 
responsibility under this Title.
Section 323
  The military operating rights of the Government of the United States 
and the legal status and contractual arrangements of the United States 
Armed Forces, their members, and associated civilians, while present in 
the Republic of the Marshall Islands are set forth in separate 
agreements, which shall remain in effect in accordance with the terms 
of such agreements.

                              Article III

         Defense Treaties and International Security Agreements

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

                               Article IV

              Service in Armed Forces of the United States

Section 341
  Any person entitled to the privileges set forth in Section 141 (with 
the exception of any person described in section 141(a)(5) who is not a 
citizen of the Republic of the Marshall Islands) shall be eligible to 
volunteer for service in the Armed Forces of the United States, but 
shall not be subject to involuntary induction into military service of 
the United States as long as such person has resided in the United 
States for a period of less than one year, provided that no time shall 
count towards this one year while a person admitted to the United 
States under the Compact, or the Compact, as amended, is engaged in 
full-time study in the United States. Any person described in section 
141(a)(5) who is not a citizen of the Republic of the Marshall Islands 
shall be subject to United States laws relating to selective service.
Section 342
  The Government of the United States shall have enrolled, at any one 
time, at least one qualified student from the Republic of the Marshall 
Islands, as may be nominated by the Government of the Republic of the 
Marshall Islands, in each of:
          (a) The United States Coast Guard Academy pursuant to 14 
        U.S.C. 195.
          (b) The United States Merchant Marine Academy pursuant to 46 
        U.S.C. 1295(b)(6), provided that the provisions of 46 U.S.C. 
        1295b(b)(6)(C) shall not apply to the enrollment of students 
        pursuant to section 342(b) of this Compact, as amended.

                               Article V

                           General Provisions

Section 351
  (a) The Government of the United States and the Government of the 
Republic of the Marshall Islands shall continue to maintain a Joint 
Committee empowered to consider disputes arising under the 
implementation of this Title and its related agreements.
  (b) The membership of the Joint Committee shall comprise selected 
senior officials of the two Governments. The senior United States 
military commander in the Pacific area shall be the senior United 
States member of the Joint Committee. For the meetings of the Joint 
Committee, each of the two Governments may designate additional or 
alternate representatives as appropriate for the subject matter under 
consideration.
  (c) Unless otherwise mutually agreed, the Joint Committee shall meet 
annually at a time and place to be designated, after appropriate 
consultation, by the Government of the United States. The Joint 
Committee also shall meet promptly upon request of either of its 
members. The Joint Committee shall follow such procedures, including 
the establishment of functional subcommittees, as the members may from 
time to time agree. Upon notification by the Government of the United 
States, the Joint Committee of the United States and the Republic of 
the Marshall Islands shall meet promptly in a combined session with the 
Joint Committee established and maintained by the Government of the 
United States and the Government of the Federated States of Micronesia 
to consider matters within the jurisdiction of the two Joint 
Committees.
  (d) Unresolved issues in the Joint Committee shall be referred to the 
Governments for resolution, and the Government of the Republic of the 
Marshall Islands shall be afforded, on an expeditious basis, an 
opportunity to raise its concerns with the United States Secretary of 
Defense personally regarding any unresolved issue which threatens its 
continued association with the Government of the United States.
Section 352
  In the exercise of its authority and responsibility under Title 
Three, the Government of the United States shall accord due respect to 
the authority and responsibility of the Government of the Republic of 
the Marshall Islands under Titles One, Two and Four and to the 
responsibility of the Government of the Republic of the Marshall 
Islands to assure the well-being of its people.
Section 353
  (a) The Government of the United States shall not include the 
Government of the Republic of the Marshall Islands as a named party to 
a formal declaration of war, without that Government's consent.
  (b) Absent such consent, this Compact, as amended, is without 
prejudice, on the ground of belligerence or the existence of a state of 
war, to any claims for damages which are advanced by the citizens, 
nationals or Government of the Republic of the Marshall Islands, which 
arise out of armed conflict subsequent to October 21, 1986, and which 
are:
          (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
  The Government of the United States shall confer promptly at the 
request of the Government of the Republic of the Marshall Islands and 
that Government shall confer promptly at the request of the Government 
of the United States on matters relating to the provisions of this 
Compact, as amended, or of its related agreements.
Section 422
  In the event the Government of the United States or the Government of 
the Republic of the Marshall Islands, after conferring pursuant to 
section 421, determines that there is a dispute and gives written 
notice thereof, the two Governments shall make a good faith effort to 
resolve the dispute between themselves.
Section 423
  If a dispute between the Government of the United States and the 
Government of the Republic of the Marshall Islands cannot be resolved 
within 90 days of written notification in the manner provided in 
section 422, either party to the dispute may refer it to arbitration in 
accordance with section 424.
Section 424
  Should a dispute be referred to arbitration as provided for in 
section 423, an Arbitration Board shall be established for the purpose 
of hearing the dispute and rendering a decision which shall be binding 
upon the two parties to the dispute unless the two parties mutually 
agree that the decision shall be advisory. Arbitration shall occur 
according to the following terms:
          (a) An Arbitration Board shall consist of a Chairman and two 
        other members, each of whom shall be a citizen of a party to 
        the dispute. Each of the two Governments that is a party to the 
        dispute shall appoint one member to the Arbitration Board. If 
        either party to the dispute does not fulfill the appointment 
        requirements of this section within 30 days of referral of the 
        dispute to arbitration pursuant to section 423, its member on 
        the Arbitration Board shall be selected from its own standing 
        list by the other party to the dispute. Each Government shall 
        maintain a standing list of 10 candidates. The parties to the 
        dispute shall jointly appoint a Chairman within 15 days after 
        selection of the other members of the Arbitration Board. 
        Failing agreement on a Chairman, the Chairman shall be chosen 
        by lot from the standing lists of the parties to the dispute 
        within 5 days after such failure.
          (b) Unless otherwise provided in this Compact, as amended, or 
        its related agreements, the Arbitration Board shall have 
        jurisdiction to hear and render its final determination on all 
        disputes arising exclusively under Articles I, II, III, IV and 
        V of Title One, Title Two, Title Four, and their related 
        agreements.
          (c) Each member of the Arbitration Board shall have one vote. 
        Each decision of the Arbitration Board shall be reached by 
        majority vote.
          (d) In determining any legal issue, the Arbitration Board may 
        have reference to international law and, in such reference, 
        shall apply as guidelines the provisions set forth in Article 
        38 of the Statute of the International Court of Justice.
          (e) The Arbitration Board shall adopt such rules for its 
        proceedings as it may deem appropriate and necessary, but such 
        rules shall not contravene the provisions of this Compact, as 
        amended. Unless the parties provide otherwise by mutual 
        agreement, the Arbitration Board shall endeavor to render its 
        decision within 30 days after the conclusion of arguments. The 
        Arbitration Board shall make findings of fact and conclusions 
        of law and its members may issue dissenting or individual 
        opinions. Except as may be otherwise decided by the Arbitration 
        Board, one-half of all costs of the arbitration shall be borne 
        by the Government of the United States and the remainder shall 
        be borne by the Government of the Republic of the Marshall 
        Islands.

                              Article III

                               Amendment

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

                               Article IV

                              Termination

Section 441
  This Compact, as amended, may be terminated by mutual agreement of 
the Government of the Republic of the Marshall Islands and the 
Government of the United States, in accordance with their respective 
constitutional processes. Such mutual termination of this Compact, as 
amended, shall be without prejudice to the continued application of 
section 451 of this Compact, as amended, and the provisions of the 
Compact, as amended, set forth therein.
Section 442
  Subject to section 452, this Compact, as amended, may be terminated 
by the Government of the United States in accordance with its 
constitutional processes. Such termination shall be effective on the 
date specified in the notice of termination by the Government of the 
United States but not earlier than six months following delivery of 
such notice. The time specified in the notice of termination may be 
extended. Such termination of this Compact, as amended, shall be 
without prejudice to the continued application of section 452 of this 
Compact, as amended, and the provisions of the Compact, as amended, set 
forth therein.
Section 443
  This Compact, as amended, shall be terminated by the Government of 
the Republic of the Marshall Islands, pursuant to its constitutional 
processes, subject to section 453 if the people represented by that 
Government vote in a plebiscite to terminate the Compact. The 
Government of the Republic of the Marshall Islands shall notify the 
Government of the United States of its intention to call such a 
plebiscite, which shall take place not earlier than three months after 
delivery of such notice. The plebiscite shall be administered by the 
Government of the Republic of the Marshall Islands in accordance with 
its constitutional and legislative processes, but the Government of the 
United States may send its own observers and invite observers from a 
mutually agreed party. If a majority of the valid ballots cast in the 
plebiscite favors termination, the Government of the Republic of the 
Marshall Islands shall, upon certification of the results of the 
plebiscite, give notice of termination to the Government of the United 
States, such termination to be effective on the date specified in such 
notice but not earlier than three months following the date of delivery 
of such notice. The time specified in the notice of termination may be 
extended.

                               Article V

                             Survivability

Section 451
  (a) Should termination occur pursuant to section 441, economic and 
other assistance by the Government of the United States shall continue 
only if and as mutually agreed by the Governments of the United States 
and the Republic of the Marshall Islands, and in accordance with the 
countries' respective constitutional processes.
  (b) In view of the special relationship of the United States and the 
Republic of the Marshall Islands, as reflected in subsections (b) and 
(c) of section 354 of this Compact, as amended, and the separate 
agreement entered into consistent with those subsections, if 
termination occurs pursuant to section 441 prior to the twentieth 
anniversary of the effective date of this Compact, as amended, the 
United States shall continue to make contributions to the Trust Fund 
described in section 216 of this Compact, as amended.
  (c) In view of the special relationship of the United States and the 
Republic of the Marshall Islands described in subsection (b) of this 
section, if termination occurs pursuant to section 441 following the 
twentieth anniversary of the effective date of this Compact, as 
amended, the Republic of the Marshall Islands shall be entitled to 
receive proceeds from the Trust Fund described in section 216 of this 
Compact, as amended, in the manner described in those provisions and 
the Trust Fund Agreement.
Section 452
  (a) Should termination occur pursuant to section 442 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this amended Compact shall remain 
in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
          (1) Article VI and sections 172, 173, 176 and 177 of Title 
        One;
          (2) Article One and sections 232 and 234 of Title Two;
          (3) Title Three; and
          (4) Articles II, III, V and VI of Title Four.
  (b) Should termination occur pursuant to section 442 before the 
twentieth anniversary of the effective date of this Compact, as 
amended:
          (1) Except as provided in paragraph (2) of this subsection 
        and subsection (c) of this section, economic and other 
        assistance by the United States shall continue only if and as 
        mutually agreed by the Governments of the United States and the 
        Republic of the Marshall Islands.
          (2) In view of the special relationship of the United States 
        and the Republic of the Marshall Islands, as reflected in 
        subsections (b) and (c) of section 354 of this Compact, as 
        amended, and the separate agreement regarding mutual security, 
        and the Trust Fund Agreement, the United States shall continue 
        to make contributions to the Trust Fund described in section 
        216 of this Compact, as amended, in the manner described in the 
        Trust Fund Agreement.
  (c) In view of the special relationship of the United States and the 
Republic of the Marshall Islands, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 442 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Republic of the 
Marshall Islands shall continue to be eligible to receive proceeds from 
the Trust Fund described in section 216 of this Compact, as amended, in 
the manner described in those provisions and the Trust Fund Agreement.
Section 453
  (a) Should termination occur pursuant to section 443 prior to the 
twentieth anniversary of the effective date of this Compact, as 
amended, the following provisions of this Compact, as amended, shall 
remain in full force and effect until the twentieth anniversary of the 
effective date of this Compact, as amended, and thereafter as mutually 
agreed:
          (1) Article VI and sections 172, 173, 176 and 177 of Title 
        One;
          (2) Sections 232 and 234 of Title Two;
          (3) Title Three; and
          (4) Articles II, III, V and VI of Title Four.
  (b) Upon receipt of notice of termination pursuant to section 443, 
the Government of the United States and the Government of the Republic 
of the Marshall Islands shall promptly consult with regard to their 
future relationship. Except as provided in subsections (c) and (d) of 
this section, these consultations shall determine the level of economic 
and other assistance, if any, which the Government of the United States 
shall provide to the Government of the Republic of the Marshall Islands 
for the period ending on the twentieth anniversary of the effective 
date of this Compact, as amended, and for any period thereafter, if 
mutually agreed.
  (c) In view of the special relationship of the United States and the 
Republic of the Marshall Islands, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 443 prior to the twentieth anniversary of 
the effective date of this Compact, as amended, the United States shall 
continue to make contributions to the Trust Fund described in section 
216 of this Compact, as amended.
  (d) In view of the special relationship of the United States and the 
Republic of the Marshall Islands, as reflected in subsections 354(b) 
and (c) of this Compact, as amended, and the separate agreement 
regarding mutual security, and the Trust Fund Agreement, if termination 
occurs pursuant to section 443 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Republic of the 
Marshall Islands shall continue to be eligible to receive proceeds from 
the Trust Fund described in section 216 of this Compact, as amended, in 
the manner described in those provisions and the Trust Fund Agreement.
Section 454
  Notwithstanding any other provision of this Compact, as amended:
          (a) The Government of the United States reaffirms its 
        continuing interest in promoting the economic advancement and 
        budgetary self-reliance of the people of the Republic of the 
        Marshall Islands.
          (b) The separate agreements referred to in Article II of 
        Title Three shall remain in effect in accordance with their 
        terms.

                               Article VI

                          Definition of Terms

Section 461
  For the purpose of this Compact, as amended, only, and without 
prejudice to the views of the Government of the United States or the 
Government of the Republic of the Marshall Islands as to the nature and 
extent of the jurisdiction of either of them under international law, 
the following terms shall have the following meanings:
          (a) ``Trust Territory of the Pacific Islands'' means the area 
        established in the Trusteeship Agreement consisting of the 
        former administrative districts of Kosrae, Yap, Ponape, the 
        Marshall Islands and Truk as described in Title One, Trust 
        Territory Code, section 1, in force on January 1, 1979. This 
        term does not include the area of Palau or the Northern Mariana 
        Islands.
          (b) ``Trusteeship Agreement'' means the agreement setting 
        forth the terms of trusteeship for the Trust Territory of the 
        Pacific Islands, approved by the Security Council of the United 
        Nations April 2, 1947, and by the United States July 18, 1947, 
        entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 1665, 
        8 U.N.T.S. 189.
          (c) ``The Republic of the Marshall Islands'' and ``the 
        Federated States of Micronesia'' are used in a geographic sense 
        and include the land and water areas to the outer limits of the 
        territorial sea and the air space above such areas as now or 
        hereafter recognized by the Government of the United States.
          (d) ``Compact'' means the Compact of Free Association Between 
        the United States and the Federated States of Micronesia and 
        the Marshall Islands, that was approved by the United States 
        Congress in section 201 of Public Law 99-239 (Jan. 14, 1986) 
        and went into effect with respect to the Republic of the 
        Marshall Islands on October 21, 1986.
          (e) ``Compact, as amended'' means the Compact of Free 
        Association Between the United States and the Republic of the 
        Marshall Islands, as amended. The effective date of the 
        Compact, as amended, shall be on a date to be determined by the 
        President of the United States, and agreed to by the Government 
        of the Republic of the Marshall Islands, following formal 
        approval of the Compact, as amended, in accordance with section 
        411 of this Compact, as amended.
          (f) ``Government of the Republic of the Marshall Islands'' 
        means the Government established and organized by the 
        Constitution of the Republic of the Marshall Islands including 
        all the political subdivisions and entities comprising that 
        Government.
          (g) ``Government of the Federated States of Micronesia'' 
        means the Government established and organized by the 
        Constitution of the Federated States of Micronesia including 
        all the political subdivisions and entities comprising that 
        Government.
          (h) The following terms shall be defined consistent with the 
        1978 Edition of the Radio Regulations of the International 
        Telecommunications as follows:
                  (1) ``Radiocommunication'' means telecommunication by 
                means of radio waves.
                  (2) ``Station'' means one or more transmitters or 
                receivers or a combination of transmitters and 
                receivers, including the accessory equipment, necessary 
                at one location for carrying on a radiocommunication 
                service, or the radio astronomy service.
                  (3) ``Broadcasting Service'' means a 
                radiocommunication service in which the transmissions 
                are intended for direct reception by the general 
                public. This service may include sound transmissions, 
                television transmissions or other types of 
                transmission.
                  (4) ``Broadcasting Station'' means a station in the 
                broadcasting service.
                  (5) ``Assignment (of a radio frequency or radio 
                frequency channel)'' means an authorization given by an 
                administration for a radio station to use a radio 
                frequency or radio frequency channel under specified 
                conditions.
                  (6) ``Telecommunication'' means any transmission, 
                emission or reception of signs, signals, writings, 
                images and sounds or intelligence of any nature by 
                wire, radio, optical or other electromagnetic systems.
          (i) ``Military Areas and Facilities'' means those areas and 
        facilities in the Republic of the Marshall Islands reserved or 
        acquired by the Government of the Republic of the Marshall 
        Islands for use by the Government of the United States, as set 
        forth in the separate agreements referred to in section 321.
          (j) ``Tariff Schedules of the United States'' means the 
        Tariff Schedules of the United States as amended from time to 
        time and as promulgated pursuant to United States law and 
        includes the Tariff Schedules of the United States Annotated 
        (TSUSA), as amended.
          (k) ``Vienna Convention on Diplomatic Relations'' means the 
        Vienna Convention on Diplomatic Relations, done April 18, 1961, 
        23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
  (a) The Government of the United States and the Government of the 
Republic of the Marshall Islands previously have concluded agreements, 
which shall remain in effect and shall survive in accordance with their 
terms, as follows:
          (1) Agreement Between the Government of the United States and 
        the Government of the Marshall Islands for the Implementation 
        of Section 177 of the Compact of Free Association;
          (2) Agreement Between the Government of the United States and 
        the Government of the Marshall Islands by Persons Displaced as 
        a Result of the United States Nuclear Testing Program in the 
        Marshall Islands;
          (3) Agreement Between the Government of the United States and 
        the Government of the Marshall Islands Regarding the 
        Resettlement of Enjebi Island;
          (4) Agreement Concluded Pursuant to Section 234 of the 
        Compact; and
          (5) Agreement Between the Government of the United States and 
        the Government of the Marshall Islands Regarding Mutual 
        Security Concluded Pursuant to Sections 321 and 323 of the 
        Compact of Free Association.
  (b) The Government of the United States and the Government of the 
Republic of the Marshall Islands shall conclude prior to the date of 
submission of this Compact to the legislatures of the two countries, 
the following related agreements which shall come into effect on the 
effective date of this Compact, as amended, and shall survive in 
accordance with their terms, as follows:
          (1) Federal Programs and Services Agreement Between the 
        Government of the United States of America and the Government 
        of the Republic of the Marshall Islands Concluded Pursuant to 
        Article III of Title One, Article II of Title Two (including 
        Section 222), and Section 231 of the Compact of Free 
        Association, as Amended, which include:
                  (i) Postal Services and Related Programs;
                  (ii) Weather Services and Related Programs;
                  (iii) Civil Aviation Safety Service and Related 
                Programs;
                  (iv) Civil Aviation Economic Services and Related 
                Programs;
                  (v) United States Disaster Preparedness and Response 
                Services and Related Programs; and
                  (vi) Telecommunications Services and Related 
                Programs.
          (2) Agreement Between the Government of the United States of 
        America and the Government of the Republic of the Marshall 
        Islands on Extradition, Mutual Assistance in Law Enforcement 
        Matters and Penal Sanctions Concluded Pursuant to Section 175 
        (a) of the Compact of Free Association, as Amended;
          (3) Agreement Between the Government of the United States of 
        America and the Government of the Republic of the Marshall 
        Islands on Labor Recruitment Concluded Pursuant to Section 175 
        (b) of the Compact of Free Association, as Amended;
          (4) Agreement Concerning Procedures for the Implementation of 
        United States Economic Assistance Provided in the Compact, as 
        Amended, of Free Association Between the Government of the 
        United States of America and the Government of the Republic of 
        the Marshall Islands;
          (5) Agreement Between the Government of the United States of 
        America and the Government of the Republic of the Marshall 
        Islands Implementing Section 216 and Section 217 of the 
        Compact, as Amended, Regarding a Trust Fund;
          (6) Agreement Regarding the Military Use and Operating Rights 
        of the Government of the United States in the Republic of the 
        Marshall Islands Concluded Pursuant to Sections 321 and 323 of 
        the Compact of Free Association, as Amended; and,
          (7) Status of Forces Agreement Between the Government of the 
        United States of America and the Government of the Republic of 
        the Marshall Islands Concluded Pursuant to Section 323 of the 
        Compact of Free Association, as Amended.
Section 463
  (a) Except as set forth in subsection (b) of this section, any 
reference in this Compact, as amended, to a provision of the United 
States Code or the Statutes at Large of the United States constitutes 
the incorporation of the language of such provision into this Compact, 
as amended, as such provision was in force on the effective date of 
this Compact, as amended.
  (b) Any reference in Article IV and VI of Title One, and Sections 
174, 175, 178 and 342 to a provision of the United States Code or the 
Statutes at Large of the United States or to the Privacy Act, the 
Freedom of Information Act, the Administrative Procedure Act or the 
Immigration and Nationality Act constitutes the incorporation of the 
language of such provision into this Compact, as amended, as such 
provision was in force on the effective date of this Compact, as 
amended, or as it may be amended thereafter on a non-discriminatory 
basis according to the constitutional processes of the United States.

                              Article VII

                         Concluding Provisions

Section 471
  Both the Government of the United States and the Government of the 
Republic of the Marshall Islands shall take all necessary steps, of a 
general or particular character, to ensure, no later than the entry 
into force date of this Compact, as amended, the conformity of its 
laws, regulations and administrative procedures with the provisions of 
this Compact, as amended, or, in the case of subsection (d) of section 
141, as soon as reasonably possible thereafter.
Section 472
  This Compact, as amended, may be accepted, by signature or otherwise, 
by the Government of the United States and the Government of the 
Republic of the Marshall Islands.
  IN WITNESS WHEREOF, the undersigned, duly authorized, have signed 
this Compact of Free Association, as amended, which shall enter into 
force upon the exchange of diplomatic notes by which the Government of 
the United States of America and the Government of the Republic of the 
Marshall Islands inform each other about the fulfillment of their 
respective requirements for entry into force.
  DONE at Majuro, Republic of the Marshall Islands, in duplicate, this 
thirtieth (30) day of April, 2003, each text being equally authentic.

                          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 
Japanese-controlled 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\
---------------------------------------------------------------------------
    \1\ See footnote to 48 U.S.C.A. sec. 1681.
    \2\ Pub. L. No. 99-239.
    \3\ See Presidential Proclamation 5564, dated Nov. 3, 1986, 51 Fed. 
Reg. 40399 (Nov. 7, 1986).
---------------------------------------------------------------------------
    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 access 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.
---------------------------------------------------------------------------
    \4\ Sections 311, 313 of the Compacts, found at footnote to 48 
U.S.C.A. sec. 1901.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \5\ Hearing of the House Resources Committee (July 17, 2002).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
    \6\ Section 141(a) of the Compacts.

    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\
---------------------------------------------------------------------------
    \7\ CIA World Factbook.
    \8\ Bureau of Citizenship and Immigration Services data.
---------------------------------------------------------------------------
    In recent years, the U.S. government has expressed a number 
of concerns regarding the immigration provisions of the current 
Compacts:

         LThe 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\
---------------------------------------------------------------------------
    \9\ Letter from Stuart Levey to Assistant Secretary of State for 
East Asian and Pacific Affairs James Kelley 2 (Oct. 21, 2002).

         LAmericans 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.
---------------------------------------------------------------------------
    \10\ See Immigration and Nationality Act section 101(b)(1)(F)(i).
    \11\ Pub. L. No. 106-395.

         LLabor 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\
---------------------------------------------------------------------------
    \12\ See, 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, Jr., 
and Mariano, Money, Migration and U.S. Missiles and Trapped in 
Servitude Far from Their Homes, Balt. Sun, Sept. 15, 2002.

    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\
---------------------------------------------------------------------------
    \13\ Sections 214, 215 of the Compacts.
    \14\ Section 231 of the Compacts.
    \15\ Section 431 of the Compacts.
---------------------------------------------------------------------------
    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:

         LNo 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\
---------------------------------------------------------------------------
    \16\ Section 141(c) of the amended Compacts.

         LA 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 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\
---------------------------------------------------------------------------
    \17\ Section 141(a) of the amended Compacts.

         LThe 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\
---------------------------------------------------------------------------
    \18\ Section 104(b)(2) of the amended Compacts.

         LThe 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\
---------------------------------------------------------------------------
    \19\ Section 104(b)(3) of the amended Compacts.

    One modification was made to address the U.S. government's 
---------------------------------------------------------------------------
concerns regarding adoptions:

         LAny 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\
---------------------------------------------------------------------------
    \20\ Section 141(b) of the amended Compacts.

    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\
---------------------------------------------------------------------------
    \21\ Section 175(b) of the amended Compacts.

         LThe 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.:

           LEvery recruiter must register with the 
        government of the Federated States of Micronesia or the 
        Marshall Islands.

           LThe 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 citizens 
        of the Federated States of Micronesia or the Marshall 
        Islands with U.S. employers.

         LThe recruiter must, on a semiannual basis, 
        update its registration by attesting that:

           Lit will comply with all applicable laws and 
        regulations of the U.S., and of the Federated States of 
        Micronesia and the Marshall Islands,

           Lit 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,

           Lit 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,

           Lit 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.

         LThe 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 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.

         LThe 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\
---------------------------------------------------------------------------
    \22\ Section 141(f) of the amended Compacts.
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Criminal Law/Law Enforcement Provisions
         LThe 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\
---------------------------------------------------------------------------
    \23\ Sections 102(a), 103(a) of H.J. Res. 63.

---------------------------------------------------------------------------
         LAny individual that:

            1) Lserved as the United States negotiator of the 
        Compacts,

            2) Lwas an employee of the Office in the State 
        Department that negotiated the Compacts, or

            3) Lserved on the interagency group coordinating 
        United States policy on the Compacts negotiations.

          Lis subject to the provisions of chapter 11 of title 
        18, U.S. Code, dealing with bribery, graft, and 
        conflicts of interest.\24\
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    \24\ Section 107 of H.J. Res. 63.

         LFor 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\
---------------------------------------------------------------------------
    \25\ Section 152 of the amended Compacts.

         LSeparate 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\
---------------------------------------------------------------------------
    \26\ Section 175(a) of the amended Compacts.

         LThe 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\
---------------------------------------------------------------------------
    \27\ Section 179 of the amended Compacts.
---------------------------------------------------------------------------
Claims, Courts and Administrative Law Provisions
         LH.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\
---------------------------------------------------------------------------
    \28\ Sections 102(b)(3), 103(k)(3) of H.J. Res. 63.

         LH.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\
---------------------------------------------------------------------------
    \29\ Section 105(f)(2) of H.J. Res. 63.

         LH.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\
---------------------------------------------------------------------------
    \30\ Section 105 (o)of H.J. Res. 63.

         LArticle 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.
          L 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\
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    \31\ Sections 161, 162 of the amended Compacts.

         LArticle 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\
---------------------------------------------------------------------------
    \32\ Section 173 of the amended Compacts.

         LIn 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 
        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\
---------------------------------------------------------------------------
    \33\ Section 174 of the amended Compacts.

         LThe 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\
---------------------------------------------------------------------------
    \34\ Section 176 of the amended Compacts.

         LH.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\
---------------------------------------------------------------------------
    \35\ Section 177 of the amended Compacts.

         LThe 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\
---------------------------------------------------------------------------
    \36\ Section 178 of the amended Compacts.

         LArticle 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).
          L  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\
---------------------------------------------------------------------------
    \37\ Section 233 of the amended Compacts.

         LThe 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 the U.S. for redress or 
        submit claims against a third-party country, national, 
        or entity.\38\
---------------------------------------------------------------------------
    \38\ Section 353 of the amended Compacts.
---------------------------------------------------------------------------

                                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.
    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 
serviceswould 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
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 Deposit 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 
FederatedStates 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 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 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. employees 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:

         La 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,

         La 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,

         Lan 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 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,

         La 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

         Lan 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 ``immediate 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:

         Lany 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,''

         Lthe 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,

         Lthe provisions of section 274A of the INA 
        (except as modified by subsection 141(d)),

         Lthe 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

         Lthe 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., 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 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.

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 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, [or 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.
    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.
    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 Members will be given 2 days as provided by House Rules 
in which to submit additional, dissenting, supplemental, or 
minority views.

                                
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