HJ 63 PCS 
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 sub-
section, the term ‘‘audits’’ includes financial, pro-
gram, and management audits, including deter-
mining—
(A) whether the Government of the Repub-
lic of the Marshall Islands has met the require-
ments 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 trans-
actions 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 Re-
public of the Marshall Islands will cooperate fully 
with the Comptroller General of the United States in 
the conduct of such audits as the Comptroller Gen-
HJ 63 PCS 
eral determines necessary to enable the Comptroller 
General to fully discharge his responsibilities under 
this joint resolution. 
SEC. 104. INTERPRETATION OF AND UNITED STATES POL-
ICY 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 Con-
gress of Micronesia in July, 1969, that ‘‘our recommenda-
tion 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 Fed-
erated States of Micronesia and the Republic of the Mar-
shall Islands. The Congress also notes and specifically en-
dorses 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 inter-
nationally recognized human rights in foreign countries, 
which are submitted to the Congress pursuant to sections
HJ 63 PCS 
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 Is-
lands to enter the United States, to lawfully engage 
therein in occupations, and to establish residence 
therein as a nonimmigrant, to the extent such rights 
are provided under section 141 of the U.S.-FSM 
Compact and U.S.-RMI Compact, shall not be 
deemed to extend to any such naturalized citizen 
with respect to whom circumstances associated with 
the acquisition of the status of a naturalized citizen 
are such as to allow a reasonable inference, on the 
part of appropriate officials of the United States and 
subject to United States procedural requirements, 
that such naturalized status was acquired primarily 
in order to obtain such rights. 
(2) PASSPORTS.—It is the intent of Congress 
that up to $250,000 of the grant assistance provided 
to the Federated States of Micronesia pursuant to
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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 Mi-
cronesia or the government of the Republic of the 
Marshall Islands), be used for the purpose of in-
creasing the machine-readability and security of 
passports issued by such jurisdictions. It is the in-
tent of Congress that funds be obligated by Sep-
tember 30, 2004 and in the amount and manner 
specified by the Secretary of State in consultation 
with the Secretary of Homeland Security and, re-
spectively, with the government of the Federated 
States of Micronesia and the government of the Re-
public of the Marshall Islands. The United States 
Government is authorized to require that passports 
used for the purpose of seeking admission under sec-
tion 141 of the U.S.-FSM Compact and the U.S.-
RMI Compact contain appropriate security enhance-
ments. 
(3) INFORMATION-SHARING.—It is the intent of 
Congress that the governments of the Federated
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States of Micronesia and the Republic of the Mar-
shall Islands develop, prior to October 1, 2004, the 
capability to provide reliable and timely information 
as may reasonably be required by the Government of 
the United States in enforcing criminal and security-
related grounds of inadmissibility and deportability 
under the Immigration and Nationality Act, as 
amended, 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 en-
dorses 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
HJ 63 PCS 
of Federated States of Micronesia citizenship and the Re-
public of the Marshall Islands citizenship, respectively.
(d) NUCLEAR WASTE DISPOSAL.—In approving the 
U.S.-FSM Compact and the U.S.-RMI Compact, the Con-
gress 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 govern-
ment or any nongovernmental party to conduct, in the Re-
public of the Marshall Islands or in the Federated States 
of Micronesia, any of the activities specified in subsection 
(a) of section 314 of the U.S.-FSM Compact and the U.S.-
RMI Compact.
(e) IMPACT OF COMPACTS ON GUAM, THE STATE OF 
HAWAII, THE COMMONWEALTH OF THE NORTHERN MAR-
IANA ISLANDS, AND AMERICAN SAMOA; RELATED AU-
THORIZATION AND CONTINUING APPROPRIATION.—
(1) RECONCILIATION
OF
UNREIMBURSED
IM-
PACT EXPENSES.—
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the President, to address 
previously accrued and unreimbursed impact ex-
penses, may at the request of the Governor of 
Guam or the Governor of the Commonwealth of 
the Northern Mariana Islands, reduce, release, 
or waive all or part of any amounts owed by the
HJ 63 PCS 
Government of Guam or the Government of the 
Commonwealth of the Northern Mariana Is-
lands (or either government’s autonomous agen-
cies or instrumentalities), respectively, to any 
department, agency, independent agency, office, 
or instrumentality of the United States. 
(B) TERMS AND CONDITIONS.—
(i) 
SUBSTANTIATION
OF
IMPACT 
COSTS.—Not later than 120 days after the 
date of the enactment of this resolution, 
the Governor of Guam and the Governor of 
the Commonwealth of the Northern Mar-
iana Islands shall each submit to the Sec-
retary of the Interior a report, prepared in 
consultation with an independent account-
ing firm, substantiating unreimbursed im-
pact expenses claimed for the period from 
January 14, 1986, through September 30, 
2003. Upon request of the Secretary of the 
Interior, the Governor of Guam and the 
Governor of the Commonwealth of the 
Northern Mariana Islands shall each sub-
mit to the Secretary of the Interior copies 
of all documents upon which the report
HJ 63 PCS 
submitted by that Governor under this 
clause was based. 
(ii) CONGRESSIONAL NOTIFICATION.—
The President shall notify Congress of his 
intent to exercise the authority granted in 
subparagraph (A). 
(iii) CONGRESSIONAL
REVIEW
AND 
COMMENT.— Any reduction, release, or 
waiver under this Act shall not take effect 
until 60 days after the President notifies 
Congress of his intent to approve a request 
of the Governor of Guam or the Governor 
of the Commonwealth of the Northern 
Mariana Islands. In exercising his author-
ity under this section and in determining 
whether to give final approval to a request, 
the President shall take into consideration 
comments he may receive after Congres-
sional review. 
(iv) 
EXPIRATION.—The 
authority 
granted in subparagraph (A) shall expire 
on February 28, 2005. 
(2) STATEMENT OF CONGRESSIONAL INTENT.—
In approving the Compacts, it is not the intent of 
the Congress to cause any adverse consequences for
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Guam, the State of Hawaii, the Commonwealth of 
the Northern Mariana Islands, and American 
Samoa. 
(3) ANNUAL
REPORTS
AND
RECOMMENDA-
TIONS.—One year after the date of enactment of 
this joint resolution, and at one year intervals there-
after, the Governors of Guam, the State of Hawaii, 
the Commonwealth of the Northern Mariana Is-
lands, and American Samoa may provide to the Sec-
retary of the Interior by February 1 of each year 
their comments with respect to the impacts of the 
Compacts on their respective jurisdiction. The Sec-
retary of the Interior, upon receipt of any such com-
ments, shall report to the Congress not later than 
May 1 of each year to include the following: 
(A) The Governor’s comments on the im-
pacts of the Compacts as well as the Adminis-
tration’s analysis of such impact. 
(B) Any adverse consequences resulting 
from the Compacts and recommendations for 
corrective action to eliminate those con-
sequences. 
(C) Matters relating to trade, taxation, im-
migration, labor laws, minimum wages, health, 
educational, social, and public safety services
HJ 63 PCS 
and infrastructure, and environmental regula-
tion. 
(D) With regard to immigration, statistics 
concerning the number of persons availing 
themselves of the rights described in section 
141(a) of the Compact during the year covered 
by each report. 
(E) With regard to trade, the reports shall 
include an analysis of the impact on the econ-
omy of American Samoa resulting from imports 
of canned tuna into the United States from the 
Federated States of Micronesia, and the Repub-
lic of the Marshall Islands. 
(4) COMMITMENT OF CONGRESS TO REDRESS 
ADVERSE
CONSEQUENCES.—The Congress hereby 
declares that, if any adverse consequences to Guam, 
the State of Hawaii, the Commonwealth of the 
Northern Mariana Islands, or American Samoa re-
sult from implementation of the Compacts, the Con-
gress will act sympathetically and expeditiously to 
redress those adverse consequences. 
(5) QUALIFIED NONIMMIGRANT.—For the pur-
poses of this section, the term ‘‘qualified non-
immigrant’’ means person admitted to the United 
States pursuant to:
HJ 63 PCS 
(A) section 141 of the Compact of Free 
Association between the United States and the 
Government of the Federated States of Micro-
nesia set forth in Title I; 
(B) section 141 of the Compact of Free 
Association between the United States and the 
Government of the Republic of the Marshall Is-
lands set forth in Title I; or 
(C) section 141 of the Compact of Free 
Association between the United States and the 
Government of the Republic of Palau. 
(6) AUTHORIZATION AND CONTINUING APPRO-
PRIATION.—There are hereby authorized and appro-
priated to the Secretary of the Interior, for each fis-
cal year beginning after September 30, 2003 
through 2023, $30,000,000 for grants to the govern-
ments of Guam, the State of Hawaii, the Common-
wealth of the Northern Mariana Islands, and Amer-
ican Samoa as a result of increased demands placed 
on educational, social, or public safety services or in-
frastructure related to such services due to the pres-
ence in Guam, the State of Hawaii, the Common-
wealth of the Northern Mariana Islands, or Amer-
ican Samoa of qualified nonimmigrants from the
HJ 63 PCS 
Federated States of Micronesia, the Republic of the 
Marshall Islands, or the Republic of Palau. 
(A) AWARDING.—The grants shall be—
(i) awarded and administered by the 
Department of the Interior, Office of Insu-
lar Affairs, or any successor thereto, in ac-
cordance with regulations, policies and pro-
cedures applicable to grants so awarded 
and administered; and 
(ii) used only for health, educational, 
social, or public safety services, or infra-
structure related to such services, specifi-
cally affected by qualified nonimmigrants. 
(B) ENUMERATION.—For purposes of car-
rying out this section, the Secretary of the Inte-
rior shall provide for a periodic census of quali-
fied nonimmigrants in Guam, the State of Ha-
waii, the Commonwealth of the Northern Mar-
iana Islands, and American Samoa. The enu-
meration—
(i) shall be provided by the Secretary 
of the Interior beginning in fiscal year 
2004 and thereafter in calendar years 
2005, 2010, 2015, and 2020;
HJ 63 PCS 
(ii) shall be supervised by the United 
States Bureau of the Census and any other 
supporting organization(s) as the Secretary 
of the Interior may select; and 
(iii) 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 author-
ization contained in paragraph (6) of this 
subsection. 
(C) ALLOCATION.—The Secretary of the 
Interior shall allocate to each of the govern-
ments of Guam, the State of Hawaii, the Com-
monwealth of the Northern Mariana Islands, 
and American Samoa, on the basis of the re-
sults of the most recent enumeration, grants in 
an aggregate amount equal to the total amount 
of funds appropriated under paragraph (6) of 
this subsection, as reduced by any deductions 
authorized by subparagraph (iii) of subpara-
graph (B) of paragraph (6) of this subsection, 
multiplied by a ratio derived by dividing the 
number of qualified nonimmigrants in such af-
fected jurisdiction by the total number of quali-
fied nonimmigrants in the governments of
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Guam, the Commonwealth of the Northern 
Mariana Islands, and American Samoa. 
(7) AUTHORIZATION OF APPROPRIATIONS FOR 
GRANTS.—There are hereby authorized to the Sec-
retary of the Interior for each of fiscal years 2004 
through 2023 such sums as may be necessary for 
grants to the governments of Guam, the State of 
Hawaii, the Commonwealth of the Northern Mar-
iana Islands, and American Samoa, as a result of in-
creased demands placed on educational, social, or 
public safety services or infrastructure related to 
service due to the presence in Guam, Hawaii, the 
Commonwealth of the Northern Mariana Islands, 
and American Samoa of qualified nonimmigrants 
from the Federated States of Micronesia, the Repub-
lic of the Marshall Islands, and the Republic of 
Palau. 
(8) AUTHORIZATION OF APPROPRIATIONS FOR 
THE
REIMBURSEMENT
OF
HEALTH
CARE
SERV-
ICES.—
(A) 
AUTHORIZATION.—In 
addition 
to 
amounts appropriated pursuant to the author-
ization provided in section 221(b) of Article II 
of Title Two of the U.S.-FSM Compact and the 
U.S.-RMI Compact, there are hereby authorized
HJ 63 PCS 
to be appropriated to the Secretary of the Inte-
rior such sums as may be necessary to reim-
burse designated health care providers for 
qualifying health care costs for medical debt re-
ferral claims for health care services furnished 
before October 1, 2003. 
(B) DESIGNATED
HEALTH
CARE
PRO-
VIDERS.—For purposes of subparagraph (A), 
the term ‘‘designated health care provider’’ 
means an institutional provider of health care 
services (such as a public or private hospital) 
located in Hawaii, Guam, the Commonwealth of 
the Northern Mariana Islands, or American 
Samoa. 
(C) QUALIFYING HEALTH CARE COSTS.—
For purposes of subparagraph (A), the term 
‘‘qualifying health care costs’’ means costs that 
the Secretary determines are incurred by a des-
ignated health care provider for health care 
services furnished in Hawaii, Guam, the Com-
monwealth of the Northern Mariana Islands, 
and American Samoa (as the case may be) to 
a citizen of the Republic of the Marshall Is-
lands, the Federated States of Micronesia, or 
the Republic of Palau pursuant to medical re-
HJ 63 PCS 
ferral programs in the Federated States of Mi-
cronesia and the Republic of the Marshall Is-
lands. 
(9) USE OF DOD MEDICAL FACILITIES AND 
NATIONAL HEALTH SERVICE CORPS.—
(A) DOD MEDICAL FACILITIES.—The Sec-
retary of Defense shall make available, on a 
space available and reimbursable basis, the 
medical facilities of the Department of Defense 
for use by citizens of the Federated States of 
Micronesia, the Republic of the Marshall Is-
lands, and the Republic of Palau who are prop-
erly referred to the facilities by government au-
thorities responsible for provision of medical 
services in the Federated States of Micronesia, 
the Republic of the Marshall Islands, and the 
Republic of Palau. 
(B) NATIONAL HEALTH SERVICE CORPS.—
The Secretary of Health and Human Services 
shall continue to make the services of the Na-
tional 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
HJ 63 PCS 
any other areas within or outside the United 
States. 
(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to carry out this paragraph such sums 
as are necessary for each fiscal year. 
(f) SENSE OF CONGRESS CONCERNING FUNDING OF 
PUBLIC INFRASTRUCTURE.—It is the sense of Congress 
that—
(1) not less than 30 percent of the United 
States annual grant assistance provided under sec-
tion 211 of the Compact of Free Association, as 
amended, between the Government of the United 
States of America and the Government of the Fed-
erated States of Micronesia, and not less than 30 
percent of the total amount of section 211 funds al-
located to each of the states of the Federated States 
of Micronesia, shall be invested in infrastructure im-
provements in accordance with the list of specific 
projects included in the plan described in section 
211(a)(6)(i) and for maintenance in accordance with 
section 211(a)(6)(ii); and 
(2) not less than 30 percent of the United 
States annual grant assistance provided under sec-
tion 211 of the Compact of Free Association, as
HJ 63 PCS 
amended, between the Government of the United 
States of America and the Government of the Re-
public of the Marshall Islands, shall be used for in-
frastructure improvement and maintenance in ac-
cordance with section 211(d). 
(g) FOREIGN LOANS.—The Congress hereby reaf-
firms 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. 
(h) REPORTS AND REVIEWS.—
(1) REPORT
BY
THE
PRESIDENT.—Not later 
than the end of the first full calendar year following 
enactment of this resolution, and not later than De-
cember 31 of each year thereafter, the President 
shall submit a report to Congress regarding the Fed-
erated States of Micronesia and the Republic of the 
Marshall Islands. The report shall include, at a min-
imum, the following with regard to: 
(A) General social, political, and economic 
conditions, including estimates of economic 
growth, per capita income, and migration rates. 
(B) The use and effectiveness of United 
States financial and program assistance.
HJ 63 PCS 
(C) The status of economic policy reforms 
in the Federated States of Micronesia and the 
Republic of the Marshall Islands. 
(D) The status of the efforts by the Fed-
erated States of Micronesia and the Republic of 
the Marshall Islands to attract foreign invest-
ment and to increase indigenous business activ-
ity. 
(E) Recommendations on ways to increase 
the effectiveness of United States assistance. 
(2) REVIEW.—During the year of the fifth and 
fifteenth anniversaries of the date of enactment of 
this resolution, the Government of the United States 
shall review the terms of the respective Compacts 
and shall consider the overall nature and develop-
ment of the U.S.-FSM and U.S.-RMI relationships. 
In these reviews, the Government of the United 
States shall consider the operating requirements of 
the Government of the Federated States of Micro-
nesia and the Govermment of the Republic of the 
Marshall Islands and their progress in meeting the 
development objectives set forth in their respective 
development plans. The President shall include the 
findings resulting from the reviews, and any rec-
ommendations for actions to respond to such find-
HJ 63 PCS 
ings, in the annual reports to Congress for the years 
following the reviews. 
(3) BY
THE
COMPTROLLER
GENERAL.—Not 
later than the date that is 3 years after the date of 
enactment of this joint resolution, and every 5 years 
thereafter, the Comptroller General of the United 
States shall submit to Congress a report on the Fed-
erated States of Micronesia and the Republic of the 
Marshall Islands, including the topics set forth in 
paragraph (1) and the effectiveness of administra-
tive oversight by the United States. 
(i) CONSTRUCTION
OF SECTION 141(F).—Section 
141(f)(2) of the Compact of Free Association between the 
Government of the United States of America and the Gov-
ernment of the Federated States of Micronesia and of the 
Compact of Free Association between the Government of 
the United States of America and the Government of the 
Republic of the Marshall Islands, shall be construed as 
though ‘‘, except that any such regulations that would 
have a significant effect on the admission, stay and em-
ployment privileges provided under this section shall not 
become effective until 90 days after the date of trans-
mission of the regulations to the Committee on Energy 
and Natural Resources and the Committee on the Judici-
ary of the Senate and the Committee on Resources, the
HJ 63 PCS 
Committee on International Relations, and the Committee 
on the Judiciary of the House of Representatives’’ was in-
serted after ‘‘may by regulations prescribe’’. 
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 sub-
ject to all applicable criteria, standards, reporting require-
ments, auditing procedures, and other rules and regula-
tions applicable to such programs when operating in the 
United States (including its territories and common-
wealths). 
(b) RELATIONS WITH THE FEDERATED STATES OF 
MICRONESIA AND THE REPUBLIC OF THE MARSHALL IS-
LANDS.—
(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 author-
ity necessary to fulfill his responsibilities for moni-
toring and managing the funds so appropriated con-
sistent with the U.S.-FSM Compact and the U.S.-
HJ 63 PCS 
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 Com-
pact (regarding the Trust Fund). 
(2) Appropriations made pursuant to sub-
sections (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 appro-
priations 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 re-
garding provision of such programs and services.
HJ 63 PCS 
The Secretaries of the Interior and State shall con-
sult with appropriate officials of the Asian Develop-
ment Bank and with the Secretary of the Treasury 
regarding overall economic conditions in the Fed-
erated States of Micronesia and the Republic of the 
Marshall Islands and regarding the activities of 
other donors of assistance to the Federated States 
of Micronesia and the Republic of the Marshall Is-
lands. 
(5) United States Government employees in ei-
ther the Federated States of Micronesia or the Re-
public of the Marshall Islands are subject to the au-
thority of the United States Chief of Mission, includ-
ing as elaborated in section 207 of the Foreign Serv-
ice 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)(A) The President is hereby authorized to 
appoint an Interagency Group on Freely Associated 
States’ Affairs to provide policy guidance and rec-
ommendations on implementation of the U.S.-FSM 
Compact and the U.S.-RMI Compact to Federal de-
partments and agencies.
HJ 63 PCS 
(B) It is the sense of Congress that the Sec-
retary of State and the Secretary of the Interior 
should be represented on the Interagency Group. 
(7)(A)(i) The three United States appointees 
(United States chair plus two members) to the Joint 
Economic Management Committee provided for in 
section 213 of the U.S.-FSM Compact and Article 
III of the U.S.-FSM Fiscal Procedures Agreement 
referred to in section 462(b)(4) of the U.S.-FSM 
Compact shall be United States Government officers 
or employees. 
(ii) It is the sense of Congress that at least one 
appointee each should be designated from both the 
Department of State and the Department of the In-
terior. 
(iii) Section 213 of the U.S.-FSM Compact 
shall be construed to read as though the phrase, 
‘‘and on the implementation of economic policy re-
forms designed to encourage private sector invest-
ment,’’ were inserted after ‘‘with particular focus on 
those parts of the plan dealing with the sectors iden-
tified in subsection (a) of section 211’’. 
(B)(i) The three United States appointees 
(United States chair plus two members) to the 
Joint Economic Management and Financial Ac-
HJ 63 PCS 
countability 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 Govern-
ment officers or employees. 
(ii) It is the sense of Congress that at least 
one appointee each should be designated from 
both the Department of State and the Depart-
ment of the Interior. 
(iii) Section 214 of the U.S.-RMI Compact 
shall be construed to read as though the phrase, 
‘‘and on the implementation of economic policy 
reforms designed to encourage private sector in-
vestment,’’ were inserted after ‘‘with particular 
focus on those parts of the framework dealing 
with the sectors and areas identified in sub-
section (a) of section 211’’. 
(8) It is the sense of Congress that the Sec-
retary of State and the Secretary of the Interior 
shall assure that there are personnel resources com-
mitted in the appropriate numbers and locations to 
ensure effective oversight of United States financial 
and program assistance.
HJ 63 PCS 
(9) The United States voting members (United 
States chair plus two or more members) of the 
Trust Fund Committee appointed by the Govern-
ment 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 of-
ficers or employees. The United States voting mem-
bers (United States chair plus two or more mem-
bers) of the Trust Fund Committee appointed by the 
Government of the United States pursuant to Article 
7 of the Trust Fund Agreement implementing sec-
tion 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 of-
ficers or employees. It is the sense of Congress that 
at least one appointee each should be designated 
from both the Department of State and the Depart-
ment of the Interior. 
(10) The Trust Fund Committee provided for 
in Article 7 of the U.S.-FSM Trust Fund Agreement 
implementing section 215 of the U.S.-FSM Compact
HJ 63 PCS 
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 Com-
mittee 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 pro-
vided 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 in-
corporated under the laws of the District of Colum-
bia. 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.
HJ 63 PCS 
(c) JUDICIAL TRAINING.—(1) In addition to amounts 
provided under section 211(a)(4) of the U.S.-FSM Com-
pact and the U.S.-RMI Compact, the President shall an-
nually provide $200,000 to the Government of the Fed-
erated States of Micronesia and $100,000 to the Govern-
ment of the Republic of the Marshall Islands to provide 
training for judges and officials of the judiciary. 
(2) There is hereby authorized and appropriated to 
the Secretary of the Interior, out of any funds in the 
Treasury not otherwise appropriated, to remain available 
until expended, for each fiscal year from 2004 through 
2023, $300,000, as adjusted for inflation under section 
217 of the U.S.-FSM Compact and section 218 of the 
U.S.-RMI Compact, to carry out the purposes of this sec-
tion. 
(d) CONTINUING TRUST TERRITORY AUTHORIZA-
TION.—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).
HJ 63 PCS 
(2) Transition purposes, including but not lim-
ited 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 ex-
ceptional circumstances; ex gratia contributions for 
the populations of Bikini, Enewetak, Rongelap, and 
Utrik; and technical assistance and training in fi-
nancial management, program administration, and 
maintenance of infrastructure, except that, for pur-
poses of an orderly reduction of United States pro-
grams and services in the Federated States of Mi-
cronesia, the Marshall Islands, and the Republic of 
Palau, United States programs or services not spe-
cifically authorized by the Compact of Free Associa-
tion 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 ap-
propriated for such programs for fiscal year 
1986. 
(B) For fiscal year 1988, an amount not 
to exceed 50 per centum of the total amount
HJ 63 PCS 
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 ap-
propriated for such programs for fiscal year 
1986. 
(e) 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 provi-
sions.
(f) NONCOMPLIANCE SANCTIONS; ACTIONS INCOM-
PATIBLE WITH UNITED STATES AUTHORITY.—The Con-
gress 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 incompat-
ible 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
HJ 63 PCS 
to in sections 462(a)(2) of the U.S.-FSM Compact and 
462(a)(5) of the U.S.-RMI Compact. The Congress fur-
ther 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 Fed-
erated 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 suspen-
sion in whole or in part of the obligations of the Govern-
ment of the United States to that Government. 
(g) CONTINUING PROGRAMS AND LAWS.—
(1) FEDERATED STATES OF MICRONESIA AND 
REPUBLIC OF THE MARSHALL ISLANDS.—In addi-
tion 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 fol-
lowing agencies shall be made available to the Fed-
erated States of Micronesia and to the Republic of 
the Marshall Islands: 
(A) The Government of the United States 
shall continue to make available to eligible insti-
tutions in the Federated States of Micronesia
HJ 63 PCS 
and the Republic of the Marshall Islands, and 
to students enrolled in such eligible institutions 
and in institutions in the United States and its 
territories, for fiscal years 2004 through 2023, 
grants under subpart 1 of part A of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 
1070a et seq.) on the same basis that such 
grants continue to be available to institutions 
and students in the United States. 
(B) 
SUPPLEMENTAL
EDUCATION 
GRANTS.—
(i) IN GENERAL.—In lieu of eligibility 
for appropriations under part A of title I 
of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6311 et 
seq.), part B of the Individuals with Dis-
abilities Education Act (20 U.S.C. 1411 et 
seq.), title I of the Workforce Investment 
Act of 1998 (29 U.S.C. 2801 et seq.), title 
II of the Workforce Investment Act of 
1998 (20 U.S.C. 9201 et seq.; commonly 
known as the Adult Education and Family 
Literacy Act), title I of the Carl D. Per-
kins Vocational and Technical Education 
Act of 1998 (20 U.S.C. 2321 et seq.), and
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the Head Start Act (42 U.S.C. 9831 et 
seq.), there are authorized to be appro-
priated to the Secretary of Education for 
supplemental education grants to the Fed-
erated States of Micronesia and the Re-
public of the Marshall Islands the following 
amounts: 
(I) $13,994,592 for the Fed-
erated States of Micronesia for fiscal 
year 2005 and an equivalent amount, 
as adjusted for inflation under section 
217 of the U.S.-FSM Compact, for 
each of fiscal years 2006 through 
2023. 
(II) $6,705,408 for the Republic 
of the Marshall Islands for fiscal year 
2005 and an equivalent amount, as 
adjusted for inflation under section 
218 of the U.S.-RMI Compact, for 
each of fiscal years 2006 through 
2023. 
(ii) FISCAL PROCEDURES.—Assistance 
pursuant to this subparagraph shall be dis-
bursed and monitored in accordance with 
the respective Fiscal Procedures Agree-
HJ 63 PCS 
ment referred to in section 462(b)(4) of 
the 
U.S.-FSM 
Compact 
and 
section 
462(b)(4) of the U.S.-RMI Compact. 
(iii) FORMULA EDUCATION GRANTS.—
For fiscal years 2005 through 2023, except 
as provided in clause (i), the Governments 
of the Federated States of Micronesia and 
the Republic of the Marshall Islands shall 
not receive any grant under any formula-
grant program administered by the Sec-
retary of Education or the Secretary of 
Labor, nor any grant provided through the 
Head Start Act (42 U.S.C. 9831 et seq.) 
administered by the Secretary of Health 
and Human Services. 
(iv) TRANSITION.—For fiscal year 
2004, the Governments of the Federated 
States of Micronesia and the Republic of 
the Marshall Islands shall continue to be 
eligible for appropriations under the provi-
sions of law specified in clause (i) and to 
receive grants under the programs de-
scribed in clause (iii). 
(C) COMPETITIVE EDUCATION GRANTS.—
The Governments of the Federated States of
HJ 63 PCS 
Micronesia and the Republic of the Marshall Is-
lands shall continue to be eligible for competi-
tive grants administered by the Secretary of 
Education to the extent that such grants con-
tinue to be available to State and local govern-
ments in the United States. 
(D) The Federal Emergency Management 
Agency, in the following manner: Paragraph (6) 
of section 221(a) of the U.S.-FSM Compact 
and paragraph (5) of section 221(a) of the 
U.S.-RMI Compact shall each be construed and 
applied as if each provision reads as follows: 
‘‘The Department of Homeland Security, Fed-
eral Emergency Management Agency disaster 
assistance programs and public assistance pro-
grams for public and private non-profit infra-
structure and programs provided by the United 
States Agency for International Development, 
Office of Foreign Disaster Assistance, at levels 
equivalent to those available on the day pre-
ceding the effective date of the Compacts, to re-
main available until the later of—
(i) the 10-year period beginning on 
the date of enactment of the Compacts; or
HJ 63 PCS 
(ii) the date on which the Disaster As-
sistance Emergency Fund referred to in 
section 211(d) of the U.S.-FSM Compact 
and section 211(e) of the U.S.-RMI Com-
pact attains a balance of $4,000,000. 
(E) The Legal Services Corporation. 
(F) The Public Health Service. 
(G) The Rural Housing Service (formerly, 
the Farmers Home Administration) in the Mar-
shall Islands and each of the four States of the 
Federated States of Micronesia. In lieu of con-
tinuation 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 agen-
cy of the Government of the United States (and to
HJ 63 PCS 
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 ap-
plied. 
(3) PCB CLEANUP.—The programs and serv-
ices of the Environmental Protection Agency regard-
ing PCBs shall, to the extent applicable, as appro-
priate, and in accordance with applicable law, be 
construed to be made available to such islands. 
(h) COLLEGE OF MICRONESIA.—Until otherwise pro-
vided 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 insti-
tution and its eligibility for all benefits and programs 
available to such land-grant institutions. 
(i) TRUST TERRITORY DEBTS TO U.S. FEDERAL 
AGENCIES.—Neither the Government of the Federated 
States of Micronesia nor the Government of the Marshall
HJ 63 PCS 
Islands shall be required to pay to any department, agen-
cy, 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 Is-
lands as of the effective date of the Compact. There is 
authorized to be appropriated such sums as may be nec-
essary to carry out the purposes of this subsection. 
(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 Develop-
ment 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 non-
reimbursable basis. During the period the U.S.-FSM Com-
pact and the U.S.-RMI Compact are in effect, the grant 
programs under the National Historic Preservation Act
HJ 63 PCS 
shall continue to apply to the Federated States of Micro-
nesia 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 agree-
ments. 
(k) PRIOR SERVICE BENEFITS PROGRAM.—Notwith-
standing any other provision of law, persons who on Janu-
ary 1, 1985, were eligible to receive payment under the 
Prior Service Benefits Program established within the So-
cial 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 nec-
essary to complete repayment by the United States of any
HJ 63 PCS 
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
PRO-
GRAM.—There are authorized to be appropriated for 
grants to the Government of the Federated States of Mi-
cronesia and the Government of the Republic of the Mar-
shall Islands, 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 Fed-
erated States of Micronesia and the Government of the 
Republic of the Marshall Islands in designing and imple-
menting such a program. 
(n) USER FEES.—Any person in the Federated 
States of Micronesia or the Republic of the Marshall Is-
lands shall be liable for user fees, if any, for services pro-
vided in the Federated States of Micronesia or the Repub-
lic 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
HJ 63 PCS 
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 Mar-
shall 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 judg-
ment 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. 
(p) INFLATION ADJUSTMENT.—As of Fiscal Year 
2015, if United States Gross Domestic Product Implicit 
Price Deflator average for Fiscal Years 2009 through 
2014 is greater than the United States Gross Domestic 
Product Implicit Price Deflator average for Fiscal Years 
2004 through 2008 (as reported in the Survey of Current 
Business or subsequent publication and compiled by the 
Department of Interior), then section 217 of the U.S.–
FSM Compact and paragraph 5 of Article II of the U.S.–
HJ 63 PCS 
FSM Fiscal Procedures Agreement and section 218 of the 
U.S.–RMI Compact and paragraph 5 of Article II of the 
U.S.–RMI Fiscal Procedures Agreement shall be con-
strued as if ‘‘the full’’ appeared in place of ‘‘two-thirds 
of the’’ each place those words appear. 
(q) ARMED SERVICES VOCATIONAL APTITUDE BAT-
TERY TESTING.—In furtherance of the provisions of Title 
Three, Article IV, section 341 of the U.S.-FSM and the 
U.S.-RMI Compacts, the purpose of which is to establish 
the privilege to volunteer for service in the United States 
Armed Forces, it is the sense of Congress that, to facili-
tate eligibility of Federated States of Micronesia and Re-
public of the Marshall Islands secondary school students 
to qualify for such service, the Department of Defense 
may extend the Armed Services Vocational Aptitude Bat-
tery (ASVAB) Student Testing Program (STP) and the 
ASVAB Career Exploration Program to selected sec-
ondary schools in the Federated States of Micronesia and 
the Republic of the Marshall Islands to the extent such 
programs are available to Department of Defense Depend-
ent Schools located in foreign jurisdictions. 
(r) ESTABLISHMENT OF TRUST FUNDS; EXPEDITION 
OF PROCESS.—The Trust Fund Agreement executed pur-
suant to the U.S.-FSM Compact and the Trust Fund 
Agreement executed pursuant to the U.S.-RMI Compact
HJ 63 PCS 
each provide for the establishment of a trust fund. Such 
trust fund may be established by (1) creating a new legal 
entity to constitute the trust fund or (2) assuming control 
of an existing legal entity including, without limitation, a 
trust fund or other legal entity that was established by 
or at the direction of the Government of the United 
States, the Government of the Federated States of Micro-
nesia, the Government of the Republic of the Marshall Is-
lands, or otherwise, for the purpose of facilitating or expe-
diting the establishment of the trust fund pursuant to the 
applicable Trust Fund Agreement. For the purpose of ex-
pediting the commencement of operations of a trust fund 
under either Trust Fund Agreement, such trust fund may, 
but shall not be obligated to, assume any obligations of 
an existing legal entity and take assignment of any con-
tract or other agreement to which such existing legal enti-
ty is party. Without limiting the authority that the United 
States Government may otherwise have under applicable 
law, the United States Government may, but shall not be 
obligated to, provide financial, technical, or other assist-
ance directly or indirectly to the Government of the Fed-
erated States of Micronesia or the Government of the Re-
public of the Marshall Islands for the purpose of estab-
lishing and operating trust funds or other legal entities 
that will solicit bids from, and enter into contracts with,
HJ 63 PCS 
parties willing to serve in such capacities as trustee, depos-
itary, money manager, or investment advisor, with the in-
tention that such contracts will ultimately be assumed by 
and assigned to trust funds established pursuant to a 
Trust Fund 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 pri-
vate sector firms which may be awarded contracts for con-
struction 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, con-
sistent with applicable requirements of such Govern-
ments—
(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 Mi-
cronesia and the Republic of the Marshall Islands,
HJ 63 PCS 
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 defi-
nition of United States firm under the nationality rule for 
suppliers of services of the Agency for International Devel-
opment (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
HJ 63 PCS 
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 ne-
gotiating 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 coordi-
nating United States policy on the Compact negotiations.
SEC. 108. COMPENSATORY ADJUSTMENTS. 
(a) ADDITIONAL PROGRAMS AND SERVICES.—In ad-
dition to the programs and services set forth in section 
221 of the U.S.–FSM Compact and the U.S.–RMI Com-
pact, and pursuant to section 222 of the U.S.–FSM Com-
pact and the U.S.–RMI Compact, the services and pro-
grams of the following United States agencies shall be 
made available to the Federated States of Micronesia and 
the Republic of the Marshall Islands: the Small Business 
Administration, Economic Development Administration, 
and the Rural Utilities Services (formerly Rural Elec-
trification Administration) and the programs and services
HJ 63 PCS 
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 Mar-
shall Islands may submit to Congress reports con-
cerning 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 Com-
pact. 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 gov-
ernments of such islands (in addition to the com-
pensation provided in subsections (a) and (b) of sec-
tion 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
HJ 63 PCS 
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 author-
ized 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 sub-
section. 
(2) The governments of the Federated States of 
Micronesia and the Republic of the Marshall Islands 
may each submit no more than one report or request 
for further compensation under section 111 of the 
joint resolution of January 14, 1986 (Public Law 
99–239) and any such report or request must be 
submitted by September 30, 2009. Only adverse eco-
nomic effect occurring during the initial fifteen-year 
term of the Compact may be considered for com-
pensation under section 111 of the joint resolution 
of January 14, 1986 (Public Law 99–239). 
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIA-
TION. 
(a) There are authorized and appropriated to the De-
partment of the Interior, out of any money in the Treas-
HJ 63 PCS 
ury 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 REPUB-
LIC OF PALAU EMPLOYED BY THE GOVERN-
MENT OF THE UNITED STATES IN THE CONTI-
NENTAL 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 fol-
lowing: ‘‘the Republic of the Philippines, the Federated
HJ 63 PCS 
States of Micronesia, the Republic of the Marshall Islands, 
or the Republic of Palau,’’.
TITLE II—COMPACTS OF FREE 
ASSOCIATION WITH THE FED-
ERATED STATES OF MICRO-
NESIA 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 GOV-
ERNMENT OF THE FEDERATED STATES OF 
MICRONESIA AND BETWEEN THE GOVERN-
MENT 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 FED-
ERATED 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 relation-
ship as Governments are founded upon respect for human
HJ 63 PCS 
rights and fundamental freedoms for all, and that the peo-
ple 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 cre-
ating 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 Mi-
cronesia; 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 Char-
ter; and that pursuant to Article 76 of the Charter, the 
people of the Federated States of Micronesia have progres-
sively developed their institutions of self-government, and 
that in the exercise of their sovereign right to self-deter-
mination they, through their freely-expressed wishes, have 
adopted a Constitution appropriate to their particular cir-
cumstances; and 
Recognizing that the Compact reflected their common 
desire to terminate the Trusteeship and establish a gov-
HJ 63 PCS 
ernment-to-government relationship which was in accord-
ance with the new political status based on the freely ex-
pressed wishes of the people of the Federated States of 
Micronesia and appropriate to their particular cir-
cumstances; 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 Mi-
cronesia 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-govern-
ment relationship, the United States and the Federated 
States of Micronesia: 
NOW, THEREFORE, MUTUALLY AGREE to 
continue and strengthen their relationship of free associa-
tion by amending the Compact, which continues to provide 
a full measure of self-government for the people of the 
Federated States of Micronesia; and
HJ 63 PCS 
FURTHER AGREE that the relationship of free as-
sociation 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 Mi-
cronesia 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.
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(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 exploi-
tation 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 avia-
tion, communications, and cultural relations, includ-
ing negotiations for the receipt of developmental 
loans and grants and the conclusion of arrangements 
with other governments and international and inter-
governmental 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 Micro-
nesia 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 Govern-
ment of the Federated States of Micronesia confirms that 
it shall act in accordance with principles of international
HJ 63 PCS 
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 re-
gional 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
HJ 63 PCS 
of Micronesia in the area of foreign affairs as may be re-
quested and mutually agreed from time to time.The Gov-
ernment of the United States shall not be responsible to 
third parties for the actions of the Government of the Fed-
erated States of Micronesia undertaken with the assist-
ance 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 re-
ceiving state, the Government of the United States shall 
extend consular assistance on the same basis as for citi-
zens 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
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Except as otherwise provided in this Compact, as 
amended, or its related agreements, all obligations, re-
sponsibilities, rights and benefits of the Government of the 
United States as Administering Authority which resulted 
from the application pursuant to the Trusteeship Agree-
ment 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 Mi-
cronesia has full authority and responsibility to regulate 
its domestic and foreign communications, and the Govern-
ment of the United States shall provide communications 
assistance as mutually agreed. 
(b) On May 24, 1993, the Government of the Fed-
erated States of Micronesia elected to undertake all func-
tions previously performed by the Government of the 
United States with respect to domestic and foreign com-
munications, except for those functions set forth in a sepa-
rate agreement entered into pursuant to this section of 
the Compact, as amended. 
Section 132
HJ 63 PCS 
The Government of the Federated States of Micro-
nesia 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 sec-
tion of the Compact, as amended. 
Article IV 
Immigration 
Section 141
(a) In furtherance of the special and unique relation-
ship that exists between the United States and the Fed-
erated States of Micronesia, under the Compact, as 
amended, any person in the following categories may be 
admitted to, lawfully engage in occupations in, and estab-
lish residence as a nonimmigrant in the United States and 
its territories and possessions (the ‘‘United States’’) with-
out regard to paragraph (5) or (7)(B)(i)(II) of section 
212(a) of the Immigration and Nationality Act, as amend-
ed, 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
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HJ 63 PCS 
remains a citizen of the Federated States of Micro-
nesia; 
(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 Fed-
erated 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 fur-
ther 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
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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 Micro-
nesia 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 Gov-
ernment 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
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under the Compact and the Compact, as amended. This 
subsection shall apply to any person who is or was an ap-
plicant 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 pro-
ceedings 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 Fed-
erated 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 un-
expired Federated States of Micronesia passport with un-
expired documentation issued by the Government of the
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United States evidencing admission under the Compact or 
the Compact, as amended, shall be considered to be docu-
mentation establishing identity and employment author-
ization under section 274A(b)(1)(B) of the Immigration 
and 
Nationality 
Act, 
as 
amended, 
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 per-
son 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 Na-
tionality Act, as amended, 8 U.S.C. 1101(a)(33), 
and variations of the term ‘‘residence,’’ including 
‘‘resident’’ and ‘‘reside,’’ shall be similarly con-
strued; 
(2) the term ‘‘actual residence’’ means physical 
presence in the Federated States of Micronesia dur-
ing eighty-five percent of the five-year period of resi-
dency required by section 141(a)(3) and (4);
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HJ 63 PCS 
(3) the term ‘‘certificate of actual residence’’ 
means a certificate issued to a naturalized citizen by 
the Government of the Federated States of Micro-
nesia 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 amend-
ed, shall apply to any person admitted or seeking admis-
sion to the United States (other than a United States pos-
session 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 con-
strued to limit, preclude, or modify the applicability of, 
with respect to such person: 
(1) any ground of inadmissibility or deport-
ability 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
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HJ 63 PCS 
shall be construed and applied as if it reads as fol-
lows: ‘‘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 docu-
mentation for purposes of section 274A(b)(1)(B) of 
such Act as provided by subsection (d) of this sec-
tion of the Compact, as amended, any requirement 
under section 274A, including but not limited to sec-
tion 274A(b)(1)(E); 
(4) Section 643 of the Illegal Immigration Re-
form 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.
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HJ 63 PCS 
(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 Gov-
ernment 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 pre-
vent a citizen of the Federated States of Micronesia from 
otherwise acquiring such rights or lawful permanent resi-
dent 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 Mi-
cronesia to deny entry to or deport any such citizen or 
national as an undesirable alien. Any determination of in-
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HJ 63 PCS 
admissibility or deportability shall be based on reasonable 
statutory grounds and shall be subject to appropriate ad-
ministrative 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 Micro-
nesia citizen spouse predecease the United States citizen 
spouse during the marriage, the Government of the Fed-
erated 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 require-
ments 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 citi-
zens 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 seek-
ing to engage in employment or invest in the Federated 
States of Micronesia, the Government of the Federated
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HJ 63 PCS 
States of Micronesia shall adopt immigration-related pro-
cedures no less favorable than those adopted by the Gov-
ernment 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 re-
ceive 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 relat-
ing 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 Mi-
cronesia shall be conducted in accordance with the Vienna 
Convention on Diplomatic Relations. In addition to diplo-
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matic missions and representation, the Governments may 
establish and maintain other offices and designate other 
representatives on terms and in locations as may be mutu-
ally 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 Reg-
istration 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 Govern-
ment of the United States that such citizen or national
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HJ 63 PCS 
is an employee of the Federated States of Micronesia 
whose principal duties are other than those matters speci-
fied 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 re-
ceiving such certifications shall cause them to be filed with 
the Attorney General, who shall maintain a publicly avail-
able list of the persons so certified. 
Article VI 
Environmental Protection 
Section 161
The Governments of the United States and the Fed-
erated 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 Micro-
nesia. 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),
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HJ 63 PCS 
unless and until those controls are modified under 
sections 161(a)(3) and 161(a)(4); 
(2) shall apply the National Environmental Pol-
icy Act of 1969, 83 Stat. 852, 42 U.S.C. 4321 et 
seq., to its activities under the Compact, as amend-
ed, and its related agreements as if the Federated 
States of Micronesia were the United States; 
(3) shall comply also, in the conduct of any ac-
tivity 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
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HJ 63 PCS 
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 activ-
ity requiring the preparation of an Environmental 
Impact Statement under section 161(a)(2), written 
standards and procedures, as agreed with the Gov-
ernment 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 Mi-
cronesia shall continue to develop and implement stand-
ards and procedures to protect its environment. As a re-
ciprocal obligation to the undertakings of the Government 
of the United States under this Article, the Federated 
States of Micronesia, taking into account its particular en-
vironment, shall continue to develop and implement stand-
ards 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
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United States and, as a further reciprocal obligation, shall 
enforce those standards. 
(c) Section 161(a), including any standard or proce-
dure 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 Govern-
ment of the Federated States of Micronesia. 
(d) In the event that an Environmental Impact State-
ment 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 proce-
dure 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 Com-
pact, 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 Gov-
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HJ 63 PCS 
ernment 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 prac-
ticable, a report with his reasons for granting such exemp-
tion shall be given promptly to the Government of the Fed-
erated States of Micronesia. 
(f) The laws of the United States referred to in sec-
tion 161(a)(3) shall apply to the activities of the Govern-
ment of the United States under this Compact, as amend-
ed, and its related agreements only to the extent provided 
for in this section. 
Section 162
The Government of the Federated States of Micro-
nesia may bring an action for judicial review of any admin-
istrative agency action or any activity of the Government 
of the United States pursuant to section 161(a) for en-
forcement of the obligations of the Government of the 
United States arising thereunder. The United States Dis-
trict 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 ac-
tions brought under section 172(b) which relate to the ac-
tivities of the Government of the United States and its 
officers and employees, governed by section 161, provided 
that:
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HJ 63 PCS 
(a) Such actions may only be civil actions for 
any appropriate civil relief other than punitive dam-
ages 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 Fed-
erated States of Micronesia. 
(c) Administrative agency actions arising under 
section 161 shall be reviewed pursuant to the stand-
ard 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 juris-
diction to issue all necessary processes, and the Gov-
ernment 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.
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nesia for the purpose of gathering data necessary to dis-
charge its obligations under this Article, except to the ex-
tent such access would unreasonably interfere with the ex-
ercise of the authority and responsibility of the Govern-
ment 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 Mi-
cronesia 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 re-
spect to the Federated States of Micronesia on November 
3, 1986, the date the Compact went into effect. 
Section 172
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(a) Every citizen of the Federated States of Micro-
nesia 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 Mi-
cronesia and every citizen of the Federated States of Mi-
cronesia 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 Adminis-
trative 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 Proce-
dure 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 Fed-
erated 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
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its related agreements and by the Government of the Fed-
erated 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 im-
mune from the jurisdiction of the courts of the Fed-
erated States of Micronesia. 
(b) The Government of the United States ac-
cepts 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 ac-
tion 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
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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 Govern-
ment 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 Govern-
ment of the Trust Territory of the Pacific Islands or 
the Government of the United States prior to the ef-
fective 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 Govern-
ment 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 re-
ferred 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 Cir-
cuit, or its successor courts, which shall have juris-
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diction 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 hear-
ing, 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 jurisdic-
tion of the courts of the United States, and the Gov-
ernment 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 ex-
ception 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 ef-
fect 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
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pursuit, capture, imprisonment and extradition of fugi-
tives 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 ex-
tradition, 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 ef-
fect simultaneously with this Compact, as amended, and 
shall have the force of law, shall govern requirements re-
lating to labor recruitment practices, including registra-
tion, 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 Micro-
nesia 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 con-
stitutional power of the courts of the Federated States of 
Micronesia to grant relief from judgments in appropriate 
cases.
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Section 177
Section 177 of the Compact entered into force with 
respect to the Federated States of Micronesia on Novem-
ber 3, 1986 as follows: 
‘‘(a) The Government of the United States ac-
cepts 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, re-
sulting 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 surveil-
lance and treatment programs and radiological mon-
itoring activities and for such additional programs
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and activities as may be mutually agreed, and for 
the assumption by the Government of the Marshall 
Islands of responsibility for enforcement of limita-
tions 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 responsi-
bility as may be mutually agreed. This separate 
agreement shall come into effect simultaneously with 
this Compact and shall remain in effect in accord-
ance 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 pro-
vide the services and programs set forth in this sep-
arate agreement, the language of which is incor-
porated 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 in-
cluding Articles IX and X of that separate agreement, and 
measures taken by the parties thereunder.
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Section 178
(a) The Federal agencies of the Government of the 
United States that provide the services and related pro-
grams in the Federated States of Micronesia pursuant to 
Title Two are authorized to settle and pay tort claims aris-
ing in the Federated States of Micronesia from the activi-
ties 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 settle-
ments and payments. 
(b) Claims under section 178(a) that cannot be set-
tled 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, pro-
vide for: 
(1) the administrative settlement of claims re-
ferred 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 ac-
cept, investigate and settle such claims, in a timely
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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 claim-
ant, 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 be-
half 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 agen-
cy 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 Govern-
ment 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
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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 Fed-
erated States of Micronesia in its efforts to promote the 
economic advancement, budgetary self-reliance, and eco-
nomic 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 Govern-
ment 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 ef-
fective 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
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the education and health care sectors. For each year such 
sector grant assistance is made available, the proposed di-
vision of this amount among these sectors shall be certified 
to the Government of the United States by the Govern-
ment 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 mon-
itor 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 Eco-
nomic Assistance Provided in the Compact, as Amended, 
of Free Association Between the Government of the 
United States of America and the Government of the Fed-
erated States of Micronesia (‘‘Fiscal Procedures Agree-
ment’’) 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 Constitu-
tion of the Federated States of Micronesia.
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(1) EDUCATION.—United States grant assist-
ance 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 Mi-
cronesia 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, finan-
cial, and material resources necessary for the Gov-
ernment 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 Govern-
ment of the Federated States of Micronesia to at-
tract foreign investment and increase indigenous 
business activity by vitalizing the commercial envi-
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ronment, ensuring fair and equitable application of 
the law, promoting adherence to core labor stand-
ards, and maintaining progress toward privatization 
of state-owned and partially state-owned enterprises, 
and engaging in other reforms. 
(4) CAPACITY BUILDING IN THE PUBLIC SEC-
TOR.—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 Micro-
nesia to build effective, accountable and transparent 
national, state, and local government and other pub-
lic sector institutions and systems. 
(5) ENVIRONMENT.—United States grant as-
sistance 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 en-
gage in environmental infrastructure planning, de-
sign construction and operation. 
(6) PUBLIC INFRASTRUCTURE.—
(i) U.S. annual grant assistance shall be 
made available in accordance with a list of spe-
cific projects included in the plan described in 
subsection (c) of this section to assist the Gov-
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ernment of the Federated States of Micronesia 
in its efforts to provide adequate public infra-
structure. 
(ii) INFRASTRUCTURE AND MAINTENANCE 
FUND.—Five percent of the annual public in-
frastructure grant made available under para-
graph (i) of this subsection shall be set aside, 
with an equal contribution from the Govern-
ment of the Federated States of Micronesia, as 
a contribution to an Infrastructure Maintenance 
Fund (IMF). Administration of the Infrastruc-
ture Maintenance Fund shall be governed by 
the Fiscal Procedures Agreement. 
(b) HUMANITARIAN ASSISTANCE.—Federated States 
of Micronesia Program. In recognition of the special devel-
opment 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 Hu-
manitarian Assistance - Federated States of Micronesia 
(‘‘HAFSM’’) Program with emphasis on health, edu-
cation, and infrastructure (including transportation), 
projects. The terms and conditions of the HAFSM shall 
be set forth in the Agreement Regarding the Military Use
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and Operating Rights of the Government of the United 
States in the Government of the Federated States of Mi-
cronesia 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 main-
tain 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 in-
volved, 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 declara-
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tion by the Government of the Federated States of Micro-
nesia, with the concurrence of the United States Chief of 
Mission to the Federated States of Micronesia. The Ad-
ministration 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 Agree-
ment, 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 Micro-
nesia, may attach reasonable terms and conditions, includ-
ing annual performance indicators that are necessary to 
ensure effective use of United States assistance and rea-
sonable 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 assist-
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ance is to be provided on a sector grant basis under sec-
tion 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 dur-
ing 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 Fed-
erated States of Micronesia shall establish a Joint Eco-
nomic 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 Fed-
erated States of Micronesia. The Joint Economic Manage-
ment Committee shall meet at least once each year to re-
view the audits and reports required under this Title, 
evaluate the progress made by the Federated States of Mi-
cronesia in meeting the objectives identified in its plan de-
scribed 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 prob-
lems encountered, and recommend ways to increase the 
effectiveness of U.S. assistance made available under this 
Title. The establishment and operations of the Joint Eco-
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nomic Management Committee shall be governed by the 
Fiscal Procedures Agreement. 
Section 214 - Annual Report 
The Government of the Federated States of Micro-
nesia 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 Com-
pact, 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 sec-
tion 211 or as otherwise mutually agreed.
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(b) The United States contribution into the Trust 
Fund described in subsection(a) of this section is condi-
tioned on the Government of the Federated States of Mi-
cronesia contributing to the Trust Fund at least $30 mil-
lion, 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 manage-
ment 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 Fed-
eral 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 pro-
ceeds to the Federated States of Micronesia and for appro-
priate remedies for the failure of the Federated States of 
Micronesia to use income of the Trust Fund for the an-
nual grant purposes set forth in section 211. These rem-
edies may include the return to the United States of the
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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 sec-
tions 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 Con-
tributions 
The funds described in sections 211, 212(b) and 215 
shall be made available as follows:
[In millions of dollars] 
Fiscal year 
Annual Grants 
Section 211
Audit Grant
Section 212(b) 
(amount up to) 
Trust Fund
Section 215
Total 
2004 ..............................................
76.2 
.5 
92.7
2005 ..............................................
76.2 
.5 
92.7
2006 ..............................................
76.2 
.5 
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 ..............................................
.5 
19.2 
92.7
2011 ..............................................
72.2 
.5 
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 ..............................................
.5 
23.2 
92.7
2016 ..............................................
68.2 
.5 
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 ..............................................
.5 
27.2 
92.7
2021 ..............................................
64.2 
.5 
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
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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 Gov-
ernment of the United States for that year pursuant to 
this Article are not completely obligated by the Govern-
ment of the Federated States of Micronesia, the unobli-
gated 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 Mi-
cronesia, 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 Admin-
istration; 
(4) the United States Department of Transpor-
tation;
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(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 Develop-
ment, 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 pro-
grams shall have the authority to implement the relevant 
provisions of the Federal Programs and Services Agree-
ment referred to in section 231. 
(b) PROGRAMS.—
(1) With the exception of the services and pro-
grams 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 Mi-
cronesia the services and programs that were avail-
able to the Federated States of Micronesia on the ef-
fective date of this Compact, as amended, to the ex-
tent 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
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section 211 will be considered to be local revenues 
of the Government of the Federated States of Micro-
nesia 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 agree-
ments referred to in amended section 231, including the 
authority to monitor and administer all service and pro-
gram assistance provided by the United States to the Fed-
erated 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 pro-
grams shall be provided to the Federated States of Micro-
nesia. 
(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 oper-
ating in the Federated States of Micronesia shall be sub-
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ject to all applicable criteria, standards, reporting require-
ments, auditing procedures, and other rules and regula-
tions applicable to such programs and services when oper-
ating 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 Gov-
ernment 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 oth-
erwise 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 Micro-
nesia shall make available to the Government of the 
United States at no cost such land as may be necessary
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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 Micro-
nesia may request, from time to time, technical assistance 
from the Federal agencies and institutions of the Govern-
ment 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 con-
sideration to the Federated States of Micronesia over 
other recipients not a part of the United States, its terri-
tories 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.
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Article III 
Administrative Provisions 
Section 231
The specific nature, extent and contractual arrange-
ments of the services and programs provided for in section 
221 of this Compact, as amended, as well as the legal sta-
tus of agencies of the Government of the United States, 
their civilian employees and contractors, and the depend-
ents of such personnel while present in the Federated 
States of Micronesia, and other arrangements in connec-
tion 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 Micro-
nesia, 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
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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 Gov-
ernment of the United States, in accordance with its con-
stitutional processes, shall constitute a pledge by the 
United States that the sums and amounts specified as sec-
tor 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 Micro-
nesia pledges to cooperate with, permit, and assist if rea-
sonably requested, designated and authorized representa-
tives of the Government of the United States charged with 
investigating whether Compact funds, or any other assist-
ance 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 agree-
ments. In carrying out this investigative authority, such 
United States Government representatives may request
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that the Government of the Federated States of Micro-
nesia subpoena documents and records and compel testi-
mony 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 unreason-
ably 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 effec-
tiveness of this title:
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(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 con-
sumption of tuna in airtight containers during the 
immediately preceding calendar year, as reported by 
the National Marine Fisheries Service, shall be ex-
empt from duty; but the quantity of tuna given 
duty-free treatment under this paragraph for any 
calendar year shall be counted against the aggre-
gated 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
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9113, of the Harmonized Tariff Schedule of the 
United States; 
(2) buttons (whether finished or not fin-
ished) 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 in-
cluded 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 de-
termining 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 Mi-
cronesia which are not exempt from duty under sub-
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sections (a), (b), (c), and (d) of section 242 shall be sub-
ject 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 regula-
tions 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 Micro-
nesia by virtue of their full membership in the Pacific Is-
land Countries Trade Agreement (PICTA), done on Au-
gust 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 con-
cluding, a free trade agreement with governments not list-
ed in Article 26 of PICTA, the Federated States of Micro-
nesia shall consult with the United States regarding 
whether or how subsection (a) of section 244 shall be ap-
plied.
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Article V 
Finance and Taxation 
Section 251
The currency of the United States is the official cir-
culating legal tender of the Federated States of Micro-
nesia. 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 Micro-
nesia may, with respect to United States persons, tax in-
come derived from sources within its respective jurisdic-
tion, property situated therein, including transfers of such 
property by gift or at death, and products consumed there-
in, in such manner as the Government of the Federated 
States of Micronesia deems appropriate. The determina-
tion of the source of any income, or the situs of any prop-
erty, 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, dom-
iciled therein, shall be exempt from estate, gift, and gen-
eration-skipping transfer taxes imposed by the Govern-
ment of the United States, provided that such citizen of
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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 exer-
cises 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 im-
posed 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 in-
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come taxes of a possession of the United States, and relief 
in the form of the exclusion under section 911 of the Inter-
nal 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 Mi-
cronesia 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 Mi-
cronesia. 
TITLE THREE 
SECURITY AND DEFENSE RELATIONS 
Article I 
Authority and Responsibility 
Section 311
(a) The Government of the United States has full au-
thority and responsibility for security and defense matters 
in or relating to the Federated States of Micronesia.
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(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 per-
sonnel 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 Micro-
nesia, subject to the terms of the separate agree-
ments 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 inter-
national 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
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(a) The Government of the Federated States of Mi-
cronesia shall refrain from actions that the Government 
of the United States determines, after appropriate con-
sultation with that Government, to be incompatible with 
its authority and responsibility for security and defense 
matters in or relating to the Federated States of Micro-
nesia. 
(b) The consultations referred to in this section shall 
be conducted expeditiously at senior levels of the two Gov-
ernments, and the subsequent determination by the Gov-
ernment of the United States referred to in this section 
shall be made only at senior interagency levels of the Gov-
ernment of the United States. 
(c) The Government of the Federated States of Mi-
cronesia shall be afforded, on an expeditious basis, an op-
portunity to raise its concerns with the United States Sec-
retary 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 Micro-
nesia:
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(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 ra-
dioactive, 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 emer-
gency 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 ra-
dioactive materials nor any toxic chemical materials in-
tended for weapons use. 
(c) Radioactive, toxic chemical, or biological materials 
not intended for weapons use shall not be affected by sec-
tion 314(b). 
(d) No material or substance referred to in this sec-
tion shall be stored in the Federated States of Micronesia 
except in an amount and manner which would not be haz-
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ardous 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 Govern-
ment 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 re-
sources 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 Mi-
cronesia, 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 facili-
ties, other than for transit and overflight purposes, shall 
be subject to consultation with and, in the case of major
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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 trans-
ferred 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 responsi-
bility 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 dis-
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cuss it with and provide a prompt response to the Govern-
ment 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 re-
quests pursuant to section 321(b), the Government of the 
United States shall follow the policy of requesting the min-
imum area necessary to accomplish the required security 
and defense purpose, of requesting only the minimum in-
terest 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 nec-
essary 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 ar-
rangements of the United States Armed Forces, their 
members, and associated civilians, while present in the 
Federated States of Micronesia are set forth in separate
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Any person entitled to the privileges set forth in Sec-
tion 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 serv-
ice in the Armed Forces of the United States, but shall 
not be subject to involuntary induction into military serv-
ice 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 en-
rolled, 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 pursu-
ant 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 pro-
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visions 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 Pa-
cific area shall be the senior United States member of the 
Joint Committee. For the meetings of the Joint Com-
mittee, each of the two Governments may designate addi-
tional or alternate representatives as appropriate for the 
subject matter under consideration. 
(c) Unless otherwise mutually agreed, the Joint Com-
mittee shall meet annually at a time and place to be des-
ignated, after appropriate consultation, by the Govern-
ment 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
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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 Com-
mittee 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 jurisdic-
tion 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 De-
fense 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.
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Section 353
(a) The Government of the United States shall not 
include the Government of the Federated States of Micro-
nesia 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 Govern-
ment 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 govern-
ment, 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
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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 ter-
mination of the entire Compact, in which case the provi-
sions 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 para-
graph (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 Micro-
nesia 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 sepa-
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rate 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 Re-
public of the Marshall Islands. 
TITLE FOUR 
GENERAL PROVISIONS 
Article I 
Approval and Effective Date 
Section 411
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Pursuant to section 432 of the Compact and subject 
to subsection (e) of section 461 of the Compact, as amend-
ed, 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 Mi-
cronesia subsequent to completion of the following: 
(a) Approval by the Government of the Fed-
erated States of Micronesia in accordance with its 
constitutional processes. 
(b) Approval by the Government of the United 
States in accordance with its constitutional proc-
esses. 
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 Fed-
erated 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
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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 Mi-
cronesia cannot be resolved within 90 days of written noti-
fication in the manner provided in section 422, either 
party to the dispute may refer it to arbitration in accord-
ance with section 424. 
Section 424
Should a dispute be referred to arbitration as pro-
vided for in section 423, an Arbitration Board shall be 
established for the purpose of hearing the dispute and ren-
dering a decision which shall be binding upon the two par-
ties 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 ap-
pointment requirements of this section within 30
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days of referral of the dispute to arbitration pursu-
ant 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 Chair-
man within 15 days after selection of the other 
members of the Arbitration Board. Failing agree-
ment 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 Arbitra-
tion Board shall have jurisdiction to hear and render 
its final determination on all disputes arising exclu-
sively under Articles I, II, III, IV and V of Title 
One, Title Two, Title Four, and their related agree-
ments. 
(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
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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 other-
wise by mutual agreement, the Arbitration Board shall en-
deavor to render its decision within 30 days after the con-
clusion 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 Govern-
ment of the United States and the remainder shall be 
borne by the Government of the Federated States of Mi-
cronesia. 
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.
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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 ap-
plication 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.
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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 Gov-
ernment 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 proc-
ess 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 Govern-
ment 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.
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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 re-
flected in subsections (b) and (c) of section 354 of this 
Compact, as amended, and the separate agreement en-
tered into consistent with those subsections, if termination 
occurs pursuant to section 441 prior to the twentieth anni-
versary 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 pur-
suant to section 441 following the twentieth anniversary
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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, eco-
nomic and other assistance by the United States 
shall continue only if and as mutually agreed by the
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Governments of the United States and the Fed-
erated States of Micronesia. 
(2) In view of the special relationship of the 
United States and the Federated States of Micro-
nesia, as reflected in subsections (b) and (c) of sec-
tion 354 of this Compact, as amended, and the sepa-
rate agreement regarding mutual security, and the 
Trust Fund Agreement, the United States shall con-
tinue to make contributions to the Trust Fund de-
scribed in section 215 of this Compact, as amended, 
in the manner described in the Trust Fund Agree-
ment. 
(c) In view of the special relationship of the United 
States and the Federated States of Micronesia, as re-
flected 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 an-
niversary of the effective date of this Compact, as amend-
ed, the Federated States of Micronesia shall continue to 
be eligible to receive proceeds from the Trust Fund de-
scribed in section 215 of this Compact, as amended, in 
the manner described in those provisions and the Trust 
Fund Agreement. 
Section 453
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(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 relation-
ship. 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 Govern-
ment of the United States shall provide to the Government 
of the Federated States of Micronesia for the period end-
ing 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 re-
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flected 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 anni-
versary 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 re-
flected 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 an-
niversary of the effective date of this Compact, as amend-
ed, the Federated States of Micronesia shall continue to 
be eligible to receive proceeds from the Trust Fund de-
scribed 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:
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(a) The Government of the United States reaf-
firms its continuing interest in promoting the eco-
nomic advancement and budgetary self-reliance of 
the people of the Federated States of Micronesia. 
(b) The separate agreements referred to in Ar-
ticle II of Title Three shall remain in effect in ac-
cordance 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 Is-
lands 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.
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(b) ‘‘Trusteeship Agreement’’ means the agree-
ment 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, en-
tered 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 As-
sociation Between the United States and the Fed-
erated States of Micronesia and the Marshall Is-
lands, that was approved by the United States Con-
gress in section 201 of Public Law 99–239 (Jan. 14, 
1986) and went into effect with respect to the Fed-
erated States of Micronesia on November 3, 1986. 
(e) ‘‘Compact, as amended’’ means the Com-
pact of Free Association Between the United States 
and the Federated States of Micronesia, as amend-
ed. The effective date of the Compact, as amended, 
shall be on a date to be determined by the President
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HJ 63 PCS 
of the United States, and agreed to by the Govern-
ment of the Federated States of Micronesia, fol-
lowing formal approval of the Compact, as amended, 
in accordance with section 411 of this Compact, as 
amended. 
(f) ‘‘Government of the Federated States of Mi-
cronesia’’ means the Government established and or-
ganized 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 Mar-
shall Islands’’ means the Government established 
and organized by the Constitution of the Republic of 
the Marshall Islands including all the political sub-
divisions and entities comprising that Government. 
(h) The following terms shall be defined con-
sistent with the 1998 Edition of the Radio Regula-
tions of the International Telecommunications Union 
as follows: 
(1) ‘‘Radiocommunication’’ means tele-
communication by means of radio waves. 
(2) ‘‘Station’’ means one or more transmit-
ters or receivers or a combination of transmit-
ters and receivers, including the accessory 
equipment, necessary at one location for car-
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to Sections 321 and 323 of the Compact of Free As-
sociation; and 
(3) Agreement between the Government of the 
United States of America and the Federated States 
of Micronesia Regarding Aspects of the Marine Sov-
ereignty 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 Pro-
grams;
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HJ 63 PCS 
(iii) Civil Aviation Safety Service and Re-
lated 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 Re-
lated 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 Re-
cruitment 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 Assist-
ance Provided in the Compact of Free Association,
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HJ 63 PCS 
as Amended, of Free Association Between the Gov-
ernment of the United States of America and Gov-
ernment 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 Con-
cluded 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 Micro-
nesia 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 sec-
tion, any reference in this Compact, as amended, to a pro-
vision 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,
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HJ 63 PCS 
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 provi-
sion 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 incor-
poration of the language of such provision into this Com-
pact, 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 ac-
cording 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 char-
acter, 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 provi-
sions of this Compact, as amended, or in the case of sub-
185
HJ 63 PCS 
section (d) of section 141, as soon as reasonably possible 
thereafter. 
Section 472
This Compact, as amended, may be accepted, by sig-
nature or otherwise, by the Government of the United 
States and the Government of the Federated States of Mi-
cronesia. 
IN WITNESS WHEREOF, the undersigned, duly 
authorized, have signed this Compact of Free Association, 
as amended, which shall enter into force upon the ex-
change 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
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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 relation-
ship as Governments are founded upon respect for human 
rights and fundamental freedoms for all, and that the peo-
ple 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 bene-
ficial relationship through the free and voluntary associa-
tion 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 Char-
ter; and that pursuant to Article 76 of the Charter, the 
people of the Republic of the Marshall Islands have pro-
gressively developed their institutions of self-government,
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HJ 63 PCS 
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 par-
ticular circumstances; and 
Recognizing that the Compact reflected their common 
desire to terminate the Trusteeship and establish a gov-
ernment-to-government relationship which was in accord-
ance with the new political status based on the freely ex-
pressed wishes of the people of the Republic of the Mar-
shall Islands and appropriate to their particular cir-
cumstances; 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 inher-
ent 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 Mar-
shall 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 Mar-
shall Islands to maintain their close government-to-gov-
ernment relationship, the United States and the Republic 
of the Marshall Islands:
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HJ 63 PCS 
NOW, THEREFORE, MUTUALLY AGREE to 
continue and strengthen their relationship of free associa-
tion 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 as-
sociation 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 Mar-
shall Islands in regard to this relationship of free associa-
tion 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.
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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 exploi-
tation 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 avia-
tion, communications, and cultural relations, includ-
ing negotiations for the receipt of developmental 
loans and grants and the conclusion of arrangements 
with other governments and international and inter-
governmental 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 Is-
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HJ 63 PCS 
lands 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 Govern-
ment 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
191
HJ 63 PCS 
Government of the United States regards as relating to 
or affecting the Government of the Republic of the Mar-
shall 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 as-
sistance 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 re-
ceiving state, the Government of the United States shall 
extend consular assistance on the same basis as for citi-
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zens 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, re-
sponsibilities, rights and benefits of the Government of the 
United States as Administering Authority which resulted 
from the application pursuant to the Trusteeship Agree-
ment 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 Govern-
ment 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
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HJ 63 PCS 
respect to domestic and foreign communications, except 
for those functions set forth in a separate agreement en-
tered into pursuant to this section of the Compact, as 
amended. 
Section 132
The Government of the Republic of the Marshall Is-
lands 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 sec-
tion of the Compact, as amended. 
Article IV 
Immigration 
Section 141
(a) In furtherance of the special and unique relation-
ship that exists between the United States and the Repub-
lic of the Marshall Islands, under the Compact, as amend-
ed, any person in the following categories may be admitted 
to, lawfully engage in occupations in, and establish resi-
dence as a nonimmigrant in the United States and its ter-
ritories and possessions (the ‘‘United States’’) without re-
gard to paragraphs (5) or (7)(B)(i)(II) of section 212(a)
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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 Is-
lands; 
(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 para-
graph (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
195
HJ 63 PCS 
section 104 of Public Law 99–239 as it was in effect 
on the day prior to the effective date of this Com-
pact, 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 nat-
uralization 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 Is-
lands 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 Gov-
ernment 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 Re-
public of the Marshall Islands, regardless of the im-
mediate 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
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HJ 63 PCS 
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 ap-
plicant 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 pro-
ceedings 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 Re-
public 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.
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(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 un-
expired Republic of the Marshall Islands passport with un-
expired documentation issued by the Government of the 
United States evidencing admission under the Compact or 
the Compact, as amended, shall be considered to be docu-
mentation establishing identity and employment author-
ization under section 274A(b)(1)(B) of the Immigration 
and 
Nationality 
Act, 
as 
amended, 
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 per-
son 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 Na-
tionality Act, as amended, 8 U.S.C. 1101(a)(33), 
and variations of the term ‘‘residence,’’ including
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HJ 63 PCS 
‘‘resident’’ and ‘‘reside,’’ shall be similarly con-
strued; 
(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 Is-
lands 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 amend-
ed, shall apply to any person admitted or seeking admis-
sion to the United States (other than a United States pos-
session 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 con-
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HJ 63 PCS 
strued to limit, preclude, or modify the applicability of, 
with respect to such person: 
(1) any ground of inadmissibility or deport-
ability 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 fol-
lows: ‘‘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 docu-
mentation for purposes of section 274A(b)(1)(B) of 
such Act as provided by subsection (d) of this sec-
tion of the Compact, as amended, any requirement 
under section 274A, including but not limited to sec-
tion 274A(b)(1)(E);
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(4) section 643 of the Illegal Immigration Re-
form 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 Gov-
ernment 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 pre-
vent a citizen of the Republic of the Marshall Islands from
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otherwise acquiring such rights or lawful permanent resi-
dent 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 na-
tional as an undesirable alien. Any determination of inad-
missibility or deportability shall be based on reasonable 
statutory grounds and shall be subject to appropriate ad-
ministrative 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 Mar-
shall Islands, the Government of the Republic of the Mar-
shall 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 Re-
public 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 require-
ments with respect to citizens and nationals of the United 
States entering the Republic of the Marshall Islands under
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subsection (a) of this section, including any grounds of 
inadmissibility or deportability, the Government of the Re-
public of the Marshall Islands shall accord to such citizens 
and nationals of the United States treatment no less fa-
vorable 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 seek-
ing 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 pro-
cedures no less favorable than those adopted by the Gov-
ernment 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
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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 Mar-
shall Islands shall be conducted in accordance with the 
Vienna Convention on Diplomatic Relations. In addition 
to diplomatic missions and representation, the Govern-
ments may establish and maintain other offices and des-
ignate 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
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requirements. For purposes of the Foreign Agents Reg-
istration 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 Govern-
ment 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 speci-
fied 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 re-
ceiving such certifications shall cause them to be filed with 
the Attorney General, who shall maintain a publicly avail-
able list of the persons so certified. 
Article VI 
Environmental Protection 
Section 161
The Governments of the United States and the Re-
public 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
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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 mu-
tual 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 Com-
pact, 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 de-
scribed in section 161(a)(1) requiring the prep-
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aration of an Environmental Impact Statement 
under section 161(a)(2), shall comply with 
standards substantively similar to those re-
quired by the following laws of the United 
States, taking into account the particular envi-
ronment of the Republic of the Marshall Is-
lands; 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 Con-
trol 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 Sub-
stances 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 State-
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ment 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 applica-
ble to U.S. Government activities in the Repub-
lic 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 im-
plement standards and procedures to protect its en-
vironment. As a reciprocal obligation to the under-
takings of the Government of the United States 
under this Article, the Republic of the Marshall Is-
lands, taking into account its particular environ-
ment, 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 con-
ducting activities in the Republic of the Marshall Is-
lands, substantively equivalent to activities con-
ducted there by the Government of the United 
States and, as a further reciprocal obligation, shall 
enforce those standards.
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(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 signifi-
cantly affecting the quality of the human environ-
ment, the regulatory regime established under sec-
tions 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 ex-
empt 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 Presi-
dent 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