II 
Calendar No. 489 
110TH CONGRESS 
1ST SESSION H. R. 2705 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 14, 2007 
Received; read twice and placed on the calendar 
AN ACT 
To amend the Compact of Free Association Amendments 
Act of 2003, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Compacts of Free As-
sociation Amendments Act of 2007’’. 
SEC. 2. APPROVAL OF AGREEMENTS. 
(a) IN GENERAL.—Section 101 of the Compact of 
Free Association Amendments Act of 2003 (48 U.S.C. 
1921) is amended— 
(1) in the first sentence of subsection (a), by in-
serting before the period at the end the following: ‘‘, 
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including Article X of the Federal Programs and 
Services Agreement Between the Government of the 
United States and the Government of the Federated 
States of Micronesia, as amended under the Agree-
ment to Amend Article X that was signed by those 
two Governments on June 30, 2004, which shall 
serve as the authority to implement the provisions 
thereof’’; and 
(2) in the first sentence of subsection (b), by in-
serting before the period at the end the following: ‘‘, 
including Article X of the Federal Programs and 
Services Agreement Between the Government of the 
United States and the Government of the Republic 
of the Marshall Islands, as amended under the 
Agreement to Amend Article X that was signed by 
those two Governments on June 18, 2004, which 
shall serve as the authority to implement the provi-
sions thereof’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be effective as of April 30, 2008. 
SEC. 3. FUNDS TO FACILITATE FEDERAL ACTIVITIES. 
Unobligated amounts appropriated before the date of 
the 
enactment 
of 
this 
Act 
pursuant 
to 
section 
105(f)(1)(A)(ii) of the Compact of Free Association 
Amendments Act of 2003 shall be available to both the 
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United States Agency for International Development and 
the Federal Emergency Management Agency to facilitate 
each agency’s activities under the Federal Programs and 
Services Agreements. 
SEC. 4. CONFORMING AMENDMENT. 
(a) IN GENERAL.—Section 105(f)(1)(A) of the Com-
pact of Free Association Amendments Act of 2003 (48 
U.S.C. 1921d(f)(1)(A)) is amended to read as follows: 
‘‘(A) EMERGENCY AND DISASTER ASSIST-
ANCE.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), section 221(a)(6) of the U.S.–FSM 
Compact and section 221(a)(5) of the 
U.S.–RMI Compact shall each be con-
strued and applied in accordance with the 
two Agreements to Amend Article X of the 
Federal Programs and Service Agreements 
signed on June 30, 2004, and on June 18, 
2004, respectively, provided that all activi-
ties carried out by the United States Agen-
cy for International Development and the 
Federal Emergency Management Agency 
under Article X of the Federal Programs 
and Services Agreements may be carried 
out notwithstanding any other provision of 
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law. In the sections referred to in this 
clause, the term ‘United States Agency for 
International Development, Office of For-
eign Disaster Assistance’ shall be con-
strued to mean ‘the United States Agency 
for International Development’. 
‘‘(ii) DEFINITION OF WILL PROVIDE 
FUNDING.—In the second sentence of 
paragraph 12 of each of the Agreements 
described in clause (i), the term ‘will pro-
vide funding’ means will provide funding 
through a transfer of funds using Stand-
ard Form 1151 or a similar document or 
through 
an 
interagency, 
reimbursable 
agreement.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall be effective as of April 30, 2008. 
SEC. 5. CLARIFICATIONS REGARDING PALAU. 
Section 105(f)(1)(B) of the Compact of Free Associa-
tion Amendments Act of 2003 (48 U.S.C. 1921d(f)(1)(B)) 
is amended— 
(1) in clause (ii)(II), by striking ‘‘and its terri-
tories’’ and inserting ‘‘, its territories, and the Re-
public of Palau’’; 
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(2) in clause (iii)(II), by striking ‘‘, or the Re-
public of the Marshall Islands’’ and inserting ‘‘, the 
Republic of the Marshall Islands, or the Republic of 
Palau’’; and 
(3) in clause (ix)— 
(A) by striking ‘‘Republic’’ both places it 
appears and inserting ‘‘government, institu-
tions, and people’’; 
(B) by striking ‘‘2007’’ and inserting 
‘‘2009’’; and 
(C) by striking ‘‘was’’ and inserting 
‘‘were’’. 
SEC. 6. AVAILABILITY OF LEGAL SERVICES. 
Section 105(f)(1)(C) of the Compact of Free Associa-
tion Amendments Act of 2003 (48 U.S.C. 1921d(f)(1)(C)) 
is amended by inserting before the period at the end the 
following: ‘‘, which shall also continue to be available to 
the citizens of the Federated States of Micronesia, the Re-
public of Palau, and the Republic of the Marshall Islands 
who legally reside in the United States (including terri-
tories and possessions)’’. 
SEC. 7. TECHNICAL AMENDMENTS. 
(a) TITLE I.— 
(1) 
SECTION
177 
AGREEMENT.—Section 
103(c)(1) of the Compact of Free Association 
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Amendments Act of 2003 (48 U.S.C. 1921b(c)(1)) is 
amended by striking ‘‘section 177’’ and inserting 
‘‘Section 177’’. 
(2) INTERPRETATION
AND
UNITED
STATES 
POLICY.—Section 104 of the Compact of Free Asso-
ciation Amendments Act of 2003 (48 U.S.C. 1921c) 
is amended— 
(A) in subsection (b)(1), by inserting ‘‘the’’ 
before ‘‘U.S.–RMI Compact,’’; 
(B) in subsection (e)— 
(i) in the matter preceding subpara-
graph (A) of paragraph (8), by striking 
‘‘to include’’ and inserting ‘‘and include’’; 
(ii) in paragraph (9)(A), by inserting 
a comma after ‘‘may’’; and 
(iii) in paragraph (10), by striking 
‘‘related to service’’ and inserting ‘‘related 
to such services’’; and 
(C) in the first sentence of subsection (j), 
by inserting ‘‘the’’ before ‘‘Interior’’. 
(3) 
SUPPLEMENTAL
PROVISIONS.—Section 
105(b)(1) of the Compact of Free Association 
Amendments Act of 2003 (48 U.S.C. 1921d(b)(1)) 
is amended by striking ‘‘Trust Fund’’ and inserting 
‘‘Trust Funds’’. 
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(b) TITLE II.— 
(1) U.S.–FSM COMPACT.—The Compact of 
Free Association, as amended, between the Govern-
ment of the United States of America and the Gov-
ernment of the Federated States of Micronesia (as 
provided in section 201(a) of the Compact of Free 
Association Amendments Act of 2003 (117 Stat. 
2757)) is amended— 
(A) in section 174— 
(i) in subsection (a), by striking 
‘‘courts’’ and inserting ‘‘court’’; and 
(ii) in subsection (b)(2), by striking 
‘‘the’’ before ‘‘November’’; 
(B) in section 177(a), by striking ‘‘, or 
Palau’’ and inserting ‘‘(or Palau)’’; 
(C) in section 179(b), by striking ‘‘amend-
ed Compact’’ and inserting ‘‘Compact, as 
amended,’’; 
(D) in section 211— 
(i) in the fourth sentence of sub-
section (a), by striking ‘‘Compact, as 
Amended, of Free Association’’ and insert-
ing ‘‘Compact of Free Association, as 
amended’’; 
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(ii) in the fifth sentence of subsection 
(a), by striking ‘‘Trust Fund Agreement,’’ 
and inserting ‘‘Agreement Between the 
Government of the United States of Amer-
ica and the Government of the Federated 
States of Micronesia Implementing Section 
215 and Section 216 of the Compact, as 
Amended, Regarding a Trust Fund (Trust 
Fund Agreement),’’; 
(iii) in subsection (b)— 
(I) in the first sentence, by strik-
ing ‘‘Government of the’’ before ‘‘Fed-
erated’’; and 
(II) in the second sentence, by 
striking ‘‘Sections 321 and 323 of the 
Compact of Free Association, as 
Amended’’ and inserting ‘‘Sections 
211(b), 321, and 323 of the Compact 
of Free Association, as amended,’’; 
and 
(iv) in the last sentence of subsection 
(d), by inserting before the period at the 
end the following: ‘‘and the Federal Pro-
grams and Services Agreement referred to 
in section 231’’; 
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(E) in the first sentence of section 215(b), 
by striking ‘‘subsection(a)’’ and inserting ‘‘sub-
section (a)’’; 
(F) in section 221— 
(i) in subsection (a)(6), by inserting 
‘‘(Federal Emergency Management Agen-
cy)’’ after ‘‘Homeland Security’’; and 
(ii) in the first sentence of subsection 
(c), by striking ‘‘agreements’’ and inserting 
‘‘agreement’’; 
(G) in the second sentence of section 222, 
by inserting ‘‘in’’ after ‘‘referred to’’; 
(H) in the second sentence of section 232, 
by striking ‘‘sections 102 (c)’’ and all that fol-
lows through ‘‘January 14, 1986)’’ and insert-
ing ‘‘section 102(b) of Public Law 108–188, 
117 Stat. 2726, December 17, 2003’’; 
(I) in the second sentence of section 252, 
by inserting ‘‘, as amended,’’ after ‘‘Compact’’; 
(J) in the first sentence of the first undes-
ignated paragraph of section 341, by striking 
‘‘Section 141’’ and inserting ‘‘section 141’’; 
(K) in section 342— 
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(i) in subsection (a), by striking ‘‘14 
U.S.C. 195’’ and inserting ‘‘section 195 of 
title 14, United States Code’’; and 
(ii) in subsection (b)— 
(I) 
by 
striking 
‘‘46 
U.S.C. 
1295(b)(6)’’ and inserting ‘‘section 
1303(b)(6) of the Merchant Marine 
Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 
and 
(II) by striking ‘‘46 U.S.C. 
1295b(b)(6)(C)’’ and inserting ‘‘sec-
tion 1303(b)(6)(C) of that Act’’; 
(L) in the third sentence of section 354(a), 
by striking ‘‘section 442 and 452’’ and insert-
ing ‘‘sections 442 and 452’’; 
(M) in section 461(h), by striking ‘‘Tele-
communications’’ and inserting ‘‘Telecommuni-
cation’’; 
(N) in section 462(b)(4), by striking ‘‘of 
Free Association’’ the second place it appears; 
and 
(O) in section 463(b), by striking ‘‘Articles 
IV’’ and inserting ‘‘Article IV’’. 
(2) U.S.–RMI COMPACT.—The Compact of 
Free Association, as amended, between the Govern-
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ment of the United States of America and the Gov-
ernment of the Republic of the Marshall Islands (as 
provided in section 201(b) of the Compact of Free 
Association Amendments Act of 2003 (117 Stat. 
2795)) is amended— 
(A) in section 174(a), by striking ‘‘court’’ 
and inserting ‘‘courts’’; 
(B) in section 177(a), by striking the 
comma before ‘‘(or Palau)’’; 
(C) in section 179(b), by striking ‘‘amend-
ed Compact,’’ and inserting ‘‘Compact, as 
amended,’’; 
(D) in section 211— 
(i) in the fourth sentence of sub-
section (a), by striking ‘‘Compact, as 
Amended, of Free Association’’ and insert-
ing ‘‘Compact of Free Association, as 
amended’’; 
(ii) in the first sentence of subsection 
(b), by striking ‘‘Agreement between the 
Government of the United States and the 
Government of the Republic of the Mar-
shall Islands Regarding Miliary Use and 
Operating Rights’’ and inserting ‘‘Agree-
ment Regarding the Military Use and Op-
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erating Rights of the Government of the 
United States in the Republic of the Mar-
shall Islands concluded Pursuant to Sec-
tions 321 and 323 of the Compact of Free 
Association, as Amended (Agreement be-
tween the Government of the United 
States and the Government of the Republic 
of the Marshall Islands Regarding Military 
Use and Operating Rights)’’; and 
(iii) in the last sentence of subsection 
(e), by inserting before the period at the 
end the following: ‘‘and the Federal Pro-
grams and Services Agreement referred to 
in section 231’’; 
(E) in section 221(a)— 
(i) in the matter preceding paragraph 
(1), by striking ‘‘Section 231’’ and insert-
ing ‘‘section 231’’; and 
(ii) in paragraph (5), by inserting 
‘‘(Federal Emergency Management Agen-
cy)’’ after ‘‘Homeland Security’’; 
(F) in the second sentence of section 232, 
by striking ‘‘sections 103(m)’’ and all that fol-
lows through ‘‘(January 14, 1986)’’ and insert-
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ing ‘‘section 103(k) of Public Law 108–188, 
117 Stat. 2734, December 17, 2003’’; 
(G) in the first sentence of section 341, by 
striking ‘‘Section 141’’ and inserting ‘‘section 
141’’; 
(H) in section 342— 
(i) in subsection (a), by striking ‘‘14 
U.S.C. 195’’ and inserting ‘‘section 195 of 
title 14, United States Code’’; and 
(ii) in subsection (b)— 
(I) 
by 
striking 
‘‘46 
U.S.C. 
1295(b)(6)’’ and inserting ‘‘section 
1303(b)(6) of the Merchant Marine 
Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 
and 
(II) by striking ‘‘46 U.S.C. 
1295b(b)(6)(C)’’ and inserting ‘‘sec-
tion 1303(b)(6)(C) of that Act’’; 
(I) in the third sentence of section 354(a), 
by striking ‘‘section 442 and 452’’ and insert-
ing ‘‘sections 442 and 452’’; 
(J) in the first sentence of section 443, by 
inserting ‘‘, as amended.’’ after ‘‘the Compact’’; 
(K) in the matter preceding paragraph (1) 
of section 461(h)— 
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(i) by striking ‘‘1978’’ and inserting 
‘‘1998’’; and 
(ii) by striking ‘‘Telecommunications’’ 
and inserting ‘‘Telecommunication Union’’; 
and 
(L) in section 463(b), by striking ‘‘Article’’ 
and inserting ‘‘Articles’’. 
SEC. 8. TRANSMISSION OF VIDEOTAPE PROGRAMMING. 
Section 111(e)(2) of title 17, United States Code, is 
amended by striking ‘‘or the Trust Territory of the Pacific 
Islands’’ and inserting ‘‘the Federated States of Micro-
nesia, the Republic of Palau, or the Republic of the Mar-
shall Islands’’. 
SEC. 9. PALAU ROAD MAINTENANCE. 
The Government of the Republic of Palau may de-
posit the payment otherwise payable to the Government 
of the United States under section 111 of Public Law 
101–219 (48 U.S.C. 1960) into a trust fund if— 
(1) the earnings of the trust fund are expended 
solely for maintenance of the road system con-
structed pursuant to section 212 of the Compact of 
Free Association between the Government of the 
United States of America and the Government of 
Palau (48 U.S.C. 1931 note); and 
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(2) the trust fund is established and operated 
pursuant to an agreement entered into between the 
Government of the United States and the Govern-
ment of the Republic of Palau. 
SEC. 10. CLARIFICATION OF TAX-FREE STATUS OF TRUST 
FUNDS. 
In the U.S.–RMI Compact, the U.S.–FSM Compact, 
and their respective trust fund subsidiary agreements, for 
the purposes of taxation by the United States or its sub-
sidiary jurisdictions, the term ‘‘State’’ means ‘‘State, ter-
ritory, or the District of Columbia’’. 
SEC. 11. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR-
EIGN RECIPIENTS. 
(a) TRANSFERS BY GRANT.—The President is au-
thorized to transfer vessels to foreign countries on a grant 
basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j), as follows: 
(1) TURKEY.—To the Government of Turkey— 
(A) the OLIVER HAZARD PERRY class 
guided missile frigates GEORGE PHILIP 
(FFG–12) and SIDES (FFG–14); and 
(B) the OSPREY class minehunter coastal 
ship BLACKHAWK (MHC–58). 
(2) LITHUANIA.—To the Government of Lith-
uania, the OSPREY class minehunter coastal ships 
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CORMORANT 
(MHC–57) 
and 
KINGFISHER 
(MHC–56). 
(b) TRANSFERS BY SALE.—The President is author-
ized to transfer vessels to foreign recipients on a sale basis 
under section 21 of the Arms Export Control Act (22 
U.S.C. 2761), as follows: 
(1) TAIWAN.—To the Taipei Economic and 
Cultural Representative Office in the United States 
(which is the Taiwan instrumentality designated 
pursuant to section 10(a) of the Taiwan Relations 
Act (22 U.S.C. 3309(a))), the OSPREY class 
minehunter coastal ships ORIOLE (MHC–55) and 
FALCON (MHC–59). 
(2) TURKEY.—To the Government of Turkey, 
the 
OSPREY 
class 
minehunter 
coastal 
ship 
SHRIKE (MHC–62). 
(c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 
of a vessel transferred to a recipient on a grant basis pur-
suant to authority provided by subsection (a) shall not be 
counted against the aggregate value of excess defense arti-
cles transferred in any fiscal year under section 516(g) 
of the Foreign Assistance Act of 1961. 
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(d) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient. 
(e) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the 
transfer of a vessel under this section, that the recipient 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed before the vessel 
joins the naval forces of the recipient performed at a ship-
yard located in the United States, including a United 
States Navy shipyard. 
(f) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the 2-year period beginning on the date of the enact-
ment of this Act. 
Passed the House of Representatives November 13, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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Calendar No. 489 
110TH CONGRESS 
1ST SESSION 
H. R. 2705 
AN ACT 
To amend the Compact of Free Association 
Amendments Act of 2003, and for other purposes. 
NOVEMBER 14, 2007 
Received; read twice and placed on the calendar 
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