108TH CONGRESS
1ST SESSION
H. J. RES. 63
JOINT RESOLUTION
To approve the ‘‘Compact of Free Association, as amended
between the Government of the United States of America
and the Government of the Federated States of Micro-
nesia’’, and the ‘‘Compact of Free Association, as amend-
ed between the Government of the United States of
America and the Government of the Republic of the
Marshall Islands’’, and otherwise to amend Public Law
99–239, and to appropriate for the purposes of amended
Public Law 99–239 for fiscal years ending on or before
September 30, 2023, and for other purposes.
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Whereas the United States, in accordance with section 231
of the Compact of Free Association set forth in Title II
of Public Law 99–239, January 14, 1986, 99 Stat. 1770,
entered into negotiations with the Governments of the
Federated States of Micronesia and the Republic of the
Marshall Islands; and
Whereas these negotiations, in accordance with section 431 of
the Compact, resulted in the ‘‘Compact of Free Associa-
tion, as amended between the Government of the United
States of America and the Government of the Federated
States of Micronesia’’, and the ‘‘Compact of Free Asso-
ciation, as amended between the Government of the
United States of America and the Government of the Re-
public of the Marshall Islands’’, which, together with
their related agreements, were signed by the Government
of the United States and the Governments of the Fed-
erated States of Micronesia and the Republic of the Mar-
shall Islands on May 14, and April 30, 2003, respec-
tively: Now, therefore, be it
Resolved by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This joint resolution, together
with the Table of Contents in subsection (b) of this sec-
tion, may be cited as the ‘‘Compact of Free Association
Amendments Act of 2003’’.
(b) TABLE OF CONTENTS.—The table of contents for
this joint resolution is as follows:
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TITLE I—APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COM-
PACT; INTERPRETATION OF, AND UNITED STATES POLICIES
REGARDING, U.S.-FSM COMPACT AND U.S.-RMI COMPACT; SUP-
PLEMENTAL PROVISIONS
Sec. 101. Approval of U.S.-FSM Compact of Free Association and U.S.-RMI
Compact of Free Association.
(a) Federated States of Micronesia.
(b) Republic of the Marshall Islands.
(c) References to the Compact, the U.S.-FSM Compact and the
U.S.-RMI Compact; References to Subsidiary Agreements or
Separate Agreements.
(d) Amendment, Change, or Termination in the U.S.-FSM
Compact and the U.S.-RMI Compact and Certain Agree-
ments.
(e) Subsidiary Agreement Deemed Bilateral.
(f) Entry Into Force of Future Amendments to Subsidiary
Agreements.
Sec. 102. Agreements With Federated States of Micronesia.
(a) Law Enforcement Assistance.
(b) Agreement on Audits.
Sec. 103. Agreements With and Other Provisions Related to the Republic of the
Marshall Islands.
(a) Law Enforcement Assistance.
(b) Ejit.
(c) Kwajalein.
(d) Section 177 Agreement.
(e) Nuclear Test Effects.
(f) Espousal Provisions.
(g) DOE Radiological Health Care Program; USDA Agricul-
tural and Food Programs.
(h) Rongelap.
(i) Four Atoll Health Care Program.
(j) Enjebi Community Trust Fund.
(k) Bikini Atoll Cleanup.
(l) Agreement on Audits.
Sec. 104. Interpretation of and United States Policy Regarding U.S.-FSM Com-
pact and U.S.-RMI Compact.
(a) Human Rights.
(b) Immigration and Passport Security.
(c) Nonalienation of Lands.
(d) Nuclear Waste Disposal.
(e) Impact of Compacts on Guam, the State of Hawaii, the
Commonwealth of the Northern Mariana Islands, and Amer-
ican Samoa; Related Authorization and Continuing Appro-
priation.
(f) Sense of Congress Concerning Funding of Public Infrastruc-
ture.
(g) Foreign Loans.
(h) Reports and Reviews.
(i) Construction of Section 141(F).
Sec. 105. Supplemental Provisions.
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(a) Domestic Program Requirements.
(b) Relations With the Federated States of Micronesia and the
Republic of the Marshall Islands.
(c) Judicial Training.
(d) Continuing Trust Territory Authorization.
(e) Survivability; Actions Incompatible with United States Au-
thority.
(f) Noncompliance Sanctions.
(g) Continuing Programs and Laws.
(h) College of Micronesia.
(i) Trust Territory Debts to U.S. Federal Agencies.
(j) Technical Assistance.
(k) Prior Service Benefits Program.
(l) Indefinite Land Use Payments.
(m) Communicable Disease Control Program.
(n) User Fees.
(o) Treatment of Judgments of Courts of the Federated States
of Micronesia, the Republic of the Marshall Islands, and the
Republic of Palau.
(p) Inflation Adjustment.
(q) Armed Aervices Vocational Aptitude Battery Testing.
(r) Establishment of Trust Funds; Expedition of Process.
Sec. 106. Construction Contract Assistance.
(a) Assistance to U.S. Firms.
(b) Authorization of Appropriations.
Sec. 107. Prohibition.
Sec. 108. Compensatory Adjustments.
(a) Additional Programs and Services.
(b) Further Amounts.
Sec. 109. Authorization and Continuing Appropriation.
Sec. 110. Payment of Citizens of the Federated States of Micronesia, the Re-
public of the Marshall Islands, and the Republic of Palau Em-
ployed by the Government of the United States in the Conti-
nental United States.
TITLE II—COMPACTS OF FREE ASSOCIATION WITH THE FED-
ERATED STATES OF MICRONESIA AND THE REPUBLIC OF THE
MARSHALL ISLANDS
Sec. 201. Compacts of Free Association, as Amended Between the Government
of the United States and the Government of the Federated
States of Micronesia and Between the Government of the
United States and the Government of the Republic of the Mar-
shall Islands.
(a) Compact of Free Association as amended between the Gov-
ernment of the United States of America and the Govern-
ment of the Federated States of Micronesia.
Title One—Governmental Relations
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Article I—Self-Government.
Article II—Foreign Affairs.
Article III—Communications.
Article IV—Immigration.
Article V—Representation.
Article VI—Environmental Protection.
Article VII—General Legal Provisions.
Title Two—Economic Relations
Article I—Grant Assistance.
Article II—Services and Program Assistance.
Article III—Administrative Provisions.
Article IV—Trade.
Article V—Finance and Taxation.
Title Three—Security and Defense Relations
Article I—Authority and Responsibility.
Article II—Defense Facilities and Operating Rights.
Article III—Defense Treaties and International Security Agree-
ments.
Article IV—Service in Armed Forces of the United States.
Article V—General Provisions.
Title Four—General Provisions
Article I—Approval and Effective Date.
Article II—Conference and Dispute Resolution.
Article III—Amendment.
Article IV—Termination.
Article V—Survivability.
Article VI—Definition of Terms.
Article VII—Concluding Provisions.
(b) Compact of Free Association, as Amended Between the
Government of the United States of America and the Govern-
ment of the Republic of the Marshall Islands.
Title One—Governmental Relations
Article I—Self-Government.
Article II—Foreign Affairs.
Article III—Communications.
Article IV—Immigration.
Article V—Representation.
Article VI—Environmental Protection.
Article VII—General Legal Provisions.
Title Two—Economic Relations
Article I—Grant Assistance.
Article II—Services and Program Assistance.
Article III—Administrative Provisions.
Article IV—Trade.
Article V—Finance and Taxation.
Title Three—Security and Defense Relations
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Article I—Authority and Responsibility.
Article II—Defense Facilities and Operating Rights.
Article III—Defense Treaties and International Security Agree-
ments.
Article IV—Service in Armed Forces of the United States.
Article V—General Provisions.
Title Four—General Provisions
Article I—Approval and Effective Date.
Article II—Conference and Dispute Resolution.
Article III—Amendment.
Article IV—Termination.
Article V—Survivability.
Article VI—Definition of Terms.
Article VII—Concluding Provisions.
TITLE I—APPROVAL OF U.S.-FSM
COMPACT AND U.S.-RMI COM-
PACT; INTERPRETATION OF,
AND U.S. POLICIES REGARD-
ING, U.S.-FSM COMPACT AND
U.S.-RMI COMPACT; SUPPLE-
MENTAL PROVISIONS
SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSO-
CIATION AND THE U.S.-RMI COMPACT OF
FREE ASSOCIATION; REFERENCES TO SUB-
SIDIARY AGREEMENTS OR SEPARATE AGREE-
MENTS.
(a) FEDERATED
STATES
OF
MICRONESIA.—The
Compact of Free Association, as amended with respect to
the Federated States of Micronesia and signed by the
United States and the Government of the Federated
States of Micronesia and set forth in Title II (section
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201(a)) of this joint resolution, is hereby approved, and
Congress hereby consents to the subsidiary agreements
and amended subsidiary agreements listed in section 462
of the U.S.-FSM Compact. Subject to the provisions of
this joint resolution, the President is authorized to agree,
in accordance with section 411 of the U.S.-FSM Compact,
to an effective date for and thereafter to implement such
U.S.-FSM Compact.
(b) REPUBLIC OF THE MARSHALL ISLANDS.—The
Compact of Free Association, as amended with respect to
the Republic of the Marshall Islands and signed by the
United States and the Government of the Republic of the
Marshall Islands and set forth in Title II (section 201(b))
of this joint resolution, is hereby approved, and Congress
hereby consents to the subsidiary agreements and amend-
ed subsidiary agreements listed in section 462 of the U.S.-
RMI Compact. Subject to the provisions of this joint reso-
lution, the President is authorized to agree, in accordance
with section 411 of the U.S.-RMI Compact, to an effective
date for and thereafter to implement such U.S.-RMI Com-
pact.
(c) REFERENCES TO THE COMPACT, THE U.S.-FSM
COMPACT, AND THE U.S.-RMI COMPACT; REFERENCES
TO SUBSIDIARY AGREEMENTS
OR SEPARATE AGREE-
MENTS.—
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(1) Any reference in this joint resolution (ex-
cept references in title II) to ‘‘the Compact’’ shall be
treated as a reference to the Compact of Free Asso-
ciation set forth in title II of Public Law 99–239,
January 14, 1986 (99 Stat. 1770). Any reference in
this joint resolution to the ‘‘U.S.-FSM Compact’’
shall be treated as a reference to the Compact of
Free Association, as amended between the Govern-
ment of the United States of America and the Gov-
ernment of the Federated States of Micronesia and
set forth in Title II (section 201(a)) of this joint res-
olution. Any reference in this joint resolution to the
‘‘U.S.-RMI Compact’’ shall be treated as a reference
to the Compact of Free Association, as amended be-
tween the Government of the United States of
America and the Government of the Republic of the
Marshall Islands and set forth in Title II (section
201(b)) of this joint resolution.
(2) Any reference to the term ‘‘subsidiary
agreements’’ or ‘‘separate agreements’’ in this joint
resolution shall be treated as a reference to agree-
ments listed in section 462 of the U.S.-FSM Com-
pact and the U.S.-RMI Compact, and any other
agreements that the United States may from time to
time enter into with either the government of the
•HJ 63 EH
Federated States of Micronesia or the government of
the Republic of the Marshall Islands, or with both
such governments in accordance with the provisions
of the U.S.-FSM Compact and the U.S.-RMI Com-
pact.
(d) AMENDMENT, CHANGE, OR TERMINATION IN THE
U.S.-FSM COMPACT AND U.S.-RMI COMPACT AND CER-
TAIN AGREEMENTS.—
(1) Any amendment, change, or termination by
mutual agreement or by unilateral action of the Gov-
ernment of the United States of all or any part of
the U.S.-FSM Compact or U.S.-RMI Compact shall
not enter into force until after Congress has incor-
porated it in an Act of Congress.
(2) The provisions of paragraph (1) shall
apply—
(A) to all actions of the Government of the
United States under the U.S.-FSM Compact or
U.S.-RMI Compact including, but not limited
to, actions taken pursuant to sections 431, 441,
or 442;
(B) to any amendment, change, or termi-
nation in the Agreement Between the Govern-
ment of the United States and the Government
of the Federated States of Micronesia Regard-
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ing Friendship, Cooperation and Mutual Secu-
rity Concluded Pursuant to Sections 321 and
323 of the Compact of Free Association re-
ferred to in section 462(a)(2) of the U.S.-FSM
Compact and the Agreement Between the Gov-
ernment of the United States and the Govern-
ment of the Marshall Islands Regarding Mutual
Security Concluded Pursuant to Sections 321
and 323 of the Compact of Free Association re-
ferred to in section 462(a)(5) of the U.S.-RMI
Compact;
(C) to any amendment, change, or termi-
nation of the agreements concluded pursuant to
Compact section 177, and section 215(a) of the
U.S.-FSM Compact and section 216(a) of the
U.S.-RMI Compact, the terms of which are in-
corporated by reference into the U.S.-FSM
Compact and the U.S.-RMI Compact; and
(D) to the following subsidiary agreements,
or portions thereof: Articles III, IV and X of
the agreement referred to in section 462(b)(6)
of the U.S.-RMI Compact:
(i) Article III and IV of the agree-
ment referred to in section 462(b)(6) of
the U.S.-FSM Compact.
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(ii) Articles VI, XV, and XVII of the
agreement referred to in section 462(b)(7)
of the U.S.-FSM Compact and U.S.-RMI
Compact.
(e) SUBSIDIARY
AGREEMENTS
DEEMED
BILAT-
ERAL.—For purposes of implementation of the U.S.-FSM
Compact and the U.S.-RMI Compact and this joint resolu-
tion, the Agreement Concluded Pursuant to Section 234
of the Compact of Free Association and referred to in sec-
tion 462(a)(1) of the U.S.-FSM Compact and section
462(a)(4) of the U.S.-RMI Compact shall be deemed to
be a bilateral agreement between the United States and
each other party to such subsidiary agreement. The con-
sent or concurrence of any other party shall not be re-
quired for the effectiveness of any actions taken by the
United States in conjunction with either the Federated
States of Micronesia or the Republic of the Marshall Is-
lands which are intended to affect the implementation,
modification, suspension, or termination of such sub-
sidiary agreement (or any provision thereof) as regards
the mutual responsibilities of the United States and the
party in conjunction with whom the actions are taken.
(f) ENTRY INTO FORCE OF FUTURE AMENDMENTS
TO SUBSIDIARY AGREEMENTS.—No agreement between
the United States and the government of either the Fed-
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erated States of Micronesia or the Republic of the Mar-
shall Islands which would amend, change, or terminate
any subsidiary agreement or portion thereof, other than
those set forth is subsection (d) of this section shall enter
into force until after the President has transmitted such
agreement to the President of the Senate and the Speaker
of the House of Representatives together with an expla-
nation of the agreement and the reasons therefor. In the
case of the agreement referred to in section 462(b)(3) of
the U.S.-FSM Compact and the U.S.-RMI Compact, such
transmittal shall include a specific statement by the Sec-
retary of Labor as to the necessity of such amendment,
change, or termination, and the impact thereof.
SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MI-
CRONESIA.
(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to
sections 222 and 224 of the U.S.-FSM Compact, the
United States shall provide nonreimbursable technical and
training assistance as appropriate, including training and
equipment for postal inspection of illicit drugs and other
contraband, to enable the Government of the Federated
States of Micronesia to develop and adequately enforce
laws of the Federated States of Micronesia and to cooper-
ate with the United States in the enforcement of criminal
laws of the United States. Funds appropriated pursuant
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to section 105(j) of this title may be used to reimburse
State or local agencies providing such assistance.
(b) AGREEMENT ON AUDITS.—The Comptroller Gen-
eral (and his duly authorized representatives) shall have
the authorities necessary to carry out his responsibilities
under section 232 of the U.S.-FSM Compact and the
agreement referred to in section 462(b)(4) of the U.S.-
FSM Compact, including the following authorities:
(1) GENERAL
AUTHORITY
OF
THE
COMP-
TROLLER GENERAL TO AUDIT.—
(A) The Comptroller General of the United
States (and his duly authorized representatives)
shall have the authority to audit—
(i) all grants, program assistance, and
other assistance provided to the Govern-
ment of the Federated States of Micro-
nesia under Articles I and II of Title Two
of the U.S.-FSM Compact; and
(ii) any other assistance provided by
the Government of the United States to
the Government of the Federated States of
Micronesia.
Such authority shall include authority for the
Comptroller General to conduct or cause to be
conducted any of the audits provided for in sec-
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tion 232 of the U.S.-FSM Compact. The au-
thority provided in this paragraph shall con-
tinue for at least ten years after the last such
grant has been made or assistance has been
provided.
(B) The Comptroller General (and his duly
authorized representatives) shall also have au-
thority to review any audit conducted by or on
behalf of the Government of the United States.
In this connection, the Comptroller General
shall have access to such personnel and to such
records, documents, working papers, automated
data and files, and other information relevant
to such review.
(2) 
COMPTROLLER
GENERAL
ACCESS
TO
RECORDS.—
(A) In carrying out paragraph (1), the
Comptroller General (and his duly authorized
representatives) shall have such access to the
personnel and (without cost) to records, docu-
ments, working papers, automated data and
files, and other information relevant to such au-
dits. The Comptroller General may duplicate
any such records, documents, working papers,
•HJ 63 EH
automated data and files, or other information
relevant to such audits.
(B) Such records, documents, working pa-
pers, automated data and files, and other infor-
mation regarding each such grant or other as-
sistance shall be maintained for at least ten
years after the date such grant or assistance
was provided and in a manner that permits
such grants, assistance, and payments to be ac-
counted for distinct from any other funds of the
Government of the Federated States of Micro-
nesia.
(3) STATUS OF COMPTROLLER GENERAL REP-
RESENTATIVES.—The Comptroller General and his
duly authorized representatives shall be immune
from civil and criminal process relating to words
spoken or written and all acts performed by them in
their official capacity and falling within their func-
tions, except insofar as such immunity may be ex-
pressly waived by the Government of the United
States. The Comptroller General and his duly au-
thorized representatives shall not be liable to arrest
or detention pending trial, except in the case of a
grave crime and pursuant to a decision by a com-
petent judicial authority, and such persons shall
•HJ 63 EH
enjoy immunity from seizure of personal property,
immigration restrictions, and laws relating to alien
registration, fingerprinting, and the registration of
foreign agents. Such persons shall enjoy the same
taxation exemptions as are set forth in Article 34 of
the Vienna Convention on Diplomatic Relations. The
privileges, exemptions and immunities accorded
under this paragraph are not for the personal ben-
efit of the individuals concerned but are to safeguard
the independent exercise of their official functions.
Without prejudice to those privileges, exemptions
and immunities, it is the duty of all such persons to
respect the laws and regulations of the Government
of the Federated States of Micronesia.
(4) AUDITS DEFINED.—As used in this sub-
section, the term ‘‘audits’’ includes financial, pro-
gram, 
and 
management 
audits, 
including
determining—
(A) whether the Government of the Fed-
erated States of Micronesia has met the re-
quirements set forth in the U.S.-FSM Compact,
or any related agreement entered into under the
U.S.-FSM Compact, regarding the purposes for
which such grants and other assistance are to
be used; and
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(B) the propriety of the financial trans-
actions of the Government of the Federated
States of Micronesia pursuant to such grants or
assistance.
(5) COOPERATION BY FEDERATED STATES OF
MICRONESIA.—The Government of the Federated
States of Micronesia will cooperate fully with the
Comptroller General of the United States in the con-
duct of such audits as the Comptroller General de-
termines necessary to enable the Comptroller Gen-
eral to fully discharge his responsibilities under this
joint resolution.
SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RE-
LATED TO THE REPUBLIC OF THE MARSHALL
ISLANDS.
(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to
sections 222 and 224 of the U.S.-RMI Compact, the
United States shall provide non-reimbursable technical
and training assistance as appropriate, including training
and equipment for postal inspection of illicit drugs and
other contraband, to enable the Government of the Mar-
shall Islands to develop and adequately enforce laws of the
Marshall Islands and to cooperate with the United States
in the enforcement of criminal laws of the United States.
Funds appropriated pursuant to section 105(j) of this title
•HJ 63 EH
may be used to reimburse State or local agencies providing
such assistance.
(b) EJIT.—
(1) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that the
President of the United States shall negotiate with
the Government of the Marshall Islands an agree-
ment whereby, without prejudice as to any claims
which have been or may be asserted by any party as
to rightful title and ownership of any lands on Ejit,
the Government of the Marshall Islands shall assure
that lands on Ejit used as of January 1, 1985, by
the people of Bikini, will continue to be available
without charge for their use, until such time as Bi-
kini is restored and inhabitable and the continued
use of Ejit is no longer necessary, unless a Marshall
Islands court of competent jurisdiction finally deter-
mines that there are legal impediments to continued
use of Ejit by the people of Bikini.
(2) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that if the
impediments described in paragraph (1) do arise,
the United States will cooperate with the Govern-
ment of the Marshall Islands in assisting any person
adversely affected by such judicial determination to
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remain on Ejit, or in locating suitable and accept-
able alternative lands for such person’s use.
(3) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that para-
graph (1) shall not be applied in a manner which
would prevent the Government of the Marshall Is-
lands from acting in accordance with its constitu-
tional processes to resolve title and ownership claims
with respect to such lands or from taking substitute
or additional measures to meet the needs of the peo-
ple of Bikini with their democratically expressed con-
sent and approval.
(c) KWAJALEIN.—
(1) It is the policy of the United States that
payment of funds by the Government of the Mar-
shall Islands to the landowners of Kwajalein Atoll in
accordance with the land use agreement dated Octo-
ber 19, 1982, or as amended or superceded, and any
related allocation agreements, is required in order to
ensure that the Government of the United States
will be able to fulfill its obligation and responsibil-
ities under Title Three of the Compact and the sub-
sidiary agreements concluded pursuant to the Com-
pact.
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(2)(A) If the Government of the Marshall Is-
lands fails to make payments in accordance with
paragraph (1), the Government of the United States
shall initiate procedures under section 313 of the
Compact and consult with the Government of the
Marshall Islands with respect to the basis for the
nonpayment of funds.
(B) The United States shall expeditiously re-
solve the matter of any nonpayment of funds re-
quired under paragraph (1) pursuant to section 313
of the Compact and the authority and responsibility
of the Government of the United States for security
and defense matters in or relating to the Marshall
Islands.
(C) This paragraph shall be enforced in accord-
ance with section 105(f)(2).
(3) Until such time as the Government of the
Marshall Islands and the landowners of Kwajalein
Atoll have concluded an agreement amending or
superceding the land use agreement dated October
19, 1982, any amounts paid by the United States to
the Government of the Marshall Islands in excess of
the amounts required to be paid pursuant to the
land use agreement dated October 19, 1982, shall be
paid into, and held in, an interest bearing account
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in a United States financial institution by the Gov-
ernment of the Republic of the Marshall Islands.
(4)(A) The Government of the Republic of the
Marshall Islands shall notify the Government of the
United States when an agreement amending or
superceding the land use agreement dated October
19, 1982, is concluded.
(B) If no agreement amending or superceding
the land use agreement dated October 19, 1982, is
concluded by the date five years after the date of en-
actment of this resolution, the President shall report
to Congress on the intentions of the United States
with respect to the use of Kwajalein Atoll after
2016, and on any plans to relocate activities carried
out at Kwajalein Atoll.
(d) SECTION 177 AGREEMENT.—
(1) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that in fur-
therance of the purposes of Article I of the Sub-
sidiary Agreement for Implementation of Section
177 of the Compact, the payment of the amount
specified therein shall be made by the United States
under Article I of the Agreement between the Gov-
ernment of the United States and the Government
of the Marshall Islands for the Implementation of
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section 177 of the Compact (hereafter in this sub-
section referred to as the ‘‘Section 177 Agreement’’)
only after the Government of the Marshall Islands
has notified the President of the United States as to
which investment management firm has been se-
lected by such Government to act as Fund Manager
under Article I of the Section 177 Agreement.
(2) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that in the
event that the President determines that an invest-
ment management firm selected by the Government
of the Marshall Islands does not meet the require-
ments specified in Article I of the Section 177
Agreement, the United States shall invoke the con-
ference and dispute resolution procedures of Article
II of Title Four of the Compact. Pending the resolu-
tion of such a dispute and until a qualified Fund
Manager has been designated, the Government of
the Marshall Islands shall place the funds paid by
the United States pursuant to Article I of the Sec-
tion 177 Agreement into an interest-bearing escrow
account. Upon designation of a qualified Fund Man-
ager, all funds in the escrow account shall be trans-
ferred to the control of such Fund Manager for
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derstands and intends that the peoples of Bikini,
Enewetak, Rongelap, and Utrik, who were affected by the
United States nuclear weapons testing program in the
Marshall Islands, will receive the amounts of $75,000,000
(Bikini); 
$48,750,000 
(Enewetak); 
$37,500,000
(Rongelap); and $22,500,000 (Utrik), respectively, which
amounts shall be paid out of proceeds from the fund estab-
lished under Article I, section 1 of the subsidiary agree-
ment for the implementation of section 177 of the Com-
pact. The amounts specified in this subsection shall be in
addition to any amounts which may be awarded to claim-
ants pursuant to Article IV of the subsidiary agreement
for the implementation of Section 177 of the Compact.
Nothing in this subsection creates any rights or obliga-
tions beyond those provided for in the original enacted
version of Public Law 99–239.
(f) ESPOUSAL PROVISIONS.—
(1) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that it is
the intention of the Congress of the United States
that the provisions of section 177 of the Compact of
Free Association and the Agreement between the
Government of the United States and the Govern-
ment of the Marshall Islands for the Implementation
of Section 177 of the Compact (hereafter in this
•HJ 63 EH
subsection referred to as the ‘‘Section 177 Agree-
ment’’) constitute a full and final settlement of all
claims described in Articles X and XI of the Section
177 Agreement, and that any such claims be termi-
nated and barred except insofar as provided for in
the Section 177 Agreement.
(2) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that in fur-
therance of the intention of Congress as stated in
paragraph (1) of this subsection, the Section 177
Agreement is hereby ratified and approved. It is the
explicit understanding and intent of Congress that
the jurisdictional limitations set forth in Article XII
of such Agreement are enacted solely and exclusively
to accomplish the objective of Article X of such
Agreement and only as a clarification of the effect
of Article X, and are not to be construed or imple-
mented separately from Article X.
(g) DOE RADIOLOGICAL HEALTH CARE PROGRAM;
USDA AGRICULTURAL AND FOOD PROGRAMS.—
(1) Notwithstanding any other provision of law,
upon the request of the Government of the Republic
of the Marshall Islands, the President (either
through an appropriate department or agency of the
United States or by contract with a United States
•HJ 63 EH
firm) shall continue to provide special medical care
and logistical support thereto for the remaining
members of the population of Rongelap and Utrik
who were exposed to radiation resulting from the
1954 United States thermo-nuclear ‘‘Bravo’’ test,
pursuant to Public Laws 95–134 and 96–205.
(2)(A) In the joint resolution of January 14,
1986 (Public Law 99–239), Congress provided that
notwithstanding any other provision of law, upon the
request of the Government of the Marshall Islands,
for the first fifteen years after the effective date of
the Compact, the President (either through an ap-
propriate department or agency of the United States
or by contract with a United States firm or by a
grant to the Government of the Republic of the Mar-
shall Islands which may further contract only with
a United States firm or a Republic of the Marshall
Islands firm, the owners, officers and majority of the
employees of which are citizens of the United States
or the Republic of the Marshall Islands) shall pro-
vide technical and other assistance—
(i) without reimbursement, to continue the
planting and agricultural maintenance program
on Enewetak, as provided in subparagraph (C);
•HJ 63 EH
(ii) without reimbursement, to continue the
food programs of the Bikini and Enewetak peo-
ple described in section 1(d) of Article II of the
Subsidiary Agreement for the Implementation
of Section 177 of the Compact and for contin-
ued waterborne transportation of agricultural
products to Enewetak including operations and
maintenance of the vessel used for such pur-
poses.
(B) The President shall ensure the assistance
provided under these programs reflects the changes
in the population since the inception of such pro-
grams.
(C)(i) The planting and agricultural mainte-
nance program on Enewetak shall be funded at a
level of not less than $1,300,000 per year, as ad-
justed for inflation under section 218 of the U.S.-
RMI Compact.
(ii) There is hereby authorized and appro-
priated 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, $1,300,000, as adjusted
for inflation under section 218 of the U.S.-RMI
•HJ 63 EH
Compact, to carry out the planting and agricultural
maintenance program.
(3) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that pay-
ments under this subsection shall be provided to
such extent or in such amounts as are necessary for
services and other assistance provided pursuant to
this subsection. It is the sense of Congress that after
the periods of time specified in paragraphs (1) and
(2) of this subsection, consideration will be given to
such additional funding for these programs as may
be necessary.
(h) RONGELAP.—
(1) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that be-
cause Rongelap was directly affected by fallout from
a 1954 United States thermonuclear test and be-
cause the Rongelap people remain unconvinced that
it is safe to continue to live on Rongelap Island, it
is the intent of Congress to take such steps (if any)
as may be necessary to overcome the effects of such
fallout on the habitability of Rongelap Island, and to
restore Rongelap Island, if necessary, so that it can
be safely inhabited. Accordingly, it is the expectation
of the Congress that the Government of the Mar-
•HJ 63 EH
shall Islands shall use such portion of the funds
specified in Article II, section 1(e) of the subsidiary
agreement for the implementation of section 177 of
the Compact as are necessary for the purpose of
contracting with a qualified scientist or group of sci-
entists to review the data collected by the Depart-
ment of Energy relating to radiation levels and other
conditions on Rongelap Island resulting from the
thermonuclear test. It is the expectation of the Con-
gress that the Government of the Marshall Islands,
after consultation with the people of Rongelap, shall
select the party to review such data, and shall con-
tract for such review and for submission of a report
to the President of the United States and the Con-
gress as to the results thereof.
(2) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that the
purpose of the review referred to in paragraph (1)
of this subsection shall be to establish whether the
data cited in support of the conclusions as to the
habitability of Rongelap Island, as set forth in the
Department of Energy report entitled: ‘‘The Mean-
ing of Radiation for Those Atolls in the Northern
Part of the Marshall Islands That Were Surveyed in
1978’’, dated November 1982, are adequate and
•HJ 63 EH
whether such conclusions are fully supported by the
data. If the party reviewing the data concludes that
such conclusions as to habitability are fully sup-
ported by adequate data, the report to the President
of the United States and the Congress shall so state.
If the party reviewing the data concludes that the
data are inadequate to support such conclusions as
to habitability or that such conclusions as to habit-
ability are not fully supported by the data, the Gov-
ernment of the Marshall Islands shall contract with
an appropriate scientist or group of scientists to un-
dertake a complete survey of radiation and other ef-
fects of the nuclear testing program relating to the
habitability of Rongelap Island. Such sums as are
necessary for such survey and report concerning the
results thereof and as to steps needed to restore the
habitability of Rongelap Island are authorized to be
made available to the Government of the Marshall
Islands.
(3) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that it is
the intent of Congress that such steps (if any) as
are necessary to restore the habitability of Rongelap
Island and return the Rongelap people to their
homeland will be taken by the United States in con-
•HJ 63 EH
sultation with the Government of the Marshall Is-
lands and, in accordance with its authority under
the Constitution of the Marshall Islands, the
Rongelap local government council.
(i) FOUR ATOLL HEALTH CARE PROGRAM.—
(1) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that serv-
ices provided by the United States Public Health
Service or any other United States agency pursuant
to section 1(a) of Article II of the Agreement for the
Implementation of Section 177 of the Compact
(hereafter in this subsection referred to as the ‘‘Sec-
tion 177 Agreement’’) shall be only for services to
the people of the Atolls of Bikini, Enewetak,
Rongelap, and Utrik who were affected by the con-
sequences of the United States nuclear testing pro-
gram, pursuant to the program described in Public
Law 95–134 (91 Stat. 1159) and Public Law 96–
205 (94 Stat. 84) and their descendants (and any
other persons identified as having been so affected
if such identification occurs in the manner described
in such public laws). Nothing in this subsection shall
be construed as prejudicial to the views or policies
of the Government of the Marshall Islands as to the
•HJ 63 EH
persons affected by the consequences of the United
States nuclear testing program.
(2) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that at the
end of the first year after the effective date of the
Compact and at the end of each year thereafter, the
providing agency or agencies shall return to the Gov-
ernment of the Marshall Islands any unexpended
funds to be returned to the Fund Manager (as de-
scribed in Article I of the Section 177 Agreement)
to be covered into the Fund to be available for fu-
ture use.
(3) In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that the
Fund Manager shall retain the funds returned by
the Government of the Marshall Islands pursuant to
paragraph (2) of this subsection, shall invest and
manage such funds, and at the end of 15 years after
the effective date of the Compact, shall make from
the total amount so retained and the proceeds there-
of annual disbursements sufficient to continue to
make payments for the provision of health services
as specified in paragraph (1) of this subsection to
such extent as may be provided in contracts between
the Government of the Marshall Islands and appro-
•HJ 63 EH
priate United States providers of such health serv-
ices.
(j) ENJEBI COMMUNITY TRUST FUND.—In the joint
resolution of January 14, 1986 (Public Law 99–239) Con-
gress provided that notwithstanding any other provision
of law, the Secretary of the Treasury shall establish on
the books of the Treasury of the United States a fund
having the status specified in Article V of the subsidiary
agreement for the implementation of Section 177 of the
Compact, to be known as the ‘‘Enjebi Community Trust
Fund’’ (hereafter in this subsection referred to as the
‘‘Fund’’), and shall credit to the Fund the amount of
$7,500,000. Such amount, which shall be ex gratia, shall
be in addition to and not charged against any other funds
provided for in the Compact and its subsidiary agree-
ments, this joint resolution, or any other Act. Upon receipt
by the President of the United States of the agreement
described in this subsection, the Secretary of the Treas-
ury, upon request of the Government of the Marshall Is-
lands, shall transfer the Fund to the Government of the
Marshall Islands, provided that the Government of the
Marshall Islands agrees as follows:
(1) ENJEBI TRUST AGREEMENT.—In the joint
resolution of January 14, 1986 (Public Law 99–
239) Congress provided that the Government of the
•HJ 63 EH
Marshall Islands and the Enewetak Local Govern-
ment Council, in consultation with the people of
Enjebi, shall provide for the creation of the Enjebi
Community Trust Fund and the employment of the
manager of the Enewetak Fund established pursu-
ant to the Section 177 Agreement as trustee and
manager of the Enjebi Community Trust Fund, or,
should the manager of the Enewetak Fund not be
acceptable to the people of Enjebi, another United
States investment manager with substantial experi-
ence in the administration of trusts and with funds
under management in excess of 250 million dollars.
(2) MONITOR CONDITIONS.—In the joint resolu-
tion of January 14, 1986 (Public Law 99–239) Con-
gress provided that upon the request of the Govern-
ment of the Marshall Islands, the United States
shall monitor the radiation and other conditions on
Enjebi and within one year of receiving such a re-
quest shall report to the Government of the Marshall
Islands when the people of Enjebi may resettle
Enjebi under circumstances where the radioactive
contamination at Enjebi, including contamination
derived from consumption of locally grown food
products, can be reduced or otherwise controlled to
meet whole body Federal radiation protection stand-
•HJ 63 EH
ards for the general population, including mean an-
nual dose and mean 30-year cumulative dose stand-
ards.
(3) RESETTLEMENT OF ENJEBI.—In the joint
resolution of January 14, 1986 (Public Law 99–
239) Congress provided that in the event that the
United States determines that the people of Enjebi
can within 25 years of January 14, 1986, resettle
Enjebi under the conditions set forth in paragraph
(2) of this subsection, then upon such determination
there shall be available to the people of Enjebi from
the Fund such amounts as are necessary for the
people of Enjebi to do the following, in accordance
with a plan developed by the Enewetak Local Gov-
ernment Council and the people of Enjebi, and con-
curred with by the Government of the Marshall Is-
lands to assure consistency with the government’s
overall economic development plan:
(A) Establish a community on Enjebi Is-
land for the use of the people of Enjebi.
(B) Replant Enjebi with appropriate food-
bearing and other vegetation.
(4) RESETTLEMENT OF OTHER LOCATION.—In
the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that in the event
•HJ 63 EH
that the United States determines that within 25
years of January 14, 1986, the people of Enjebi can-
not resettle Enjebi without exceeding the radiation
standards set forth in paragraph (2) of this sub-
section, then the fund manager shall be directed by
the trust instrument to distribute the Fund to the
people of Enjebi for their resettlement at some other
location in accordance with a plan, developed by the
Enewetak Local Government Council and the people
of Enjebi and concurred with by the Government of
the Marshall Islands, to assure consistency with the
government’s overall economic development plan.
(5) INTEREST FROM FUND.—In the joint reso-
lution of January 14, 1986 (Public Law 99–239)
Congress provided that prior to and during the dis-
tribution of the corpus of the Fund pursuant to
paragraphs (3) and (4) of this subsection, the people
of Enjebi may, if they so request, receive the interest
earned by the Fund on no less frequent a basis than
quarterly.
(6) DISCLAIMER OF LIABILITY.—In the joint
resolution of January 14, 1986 (Public Law 99–
239) Congress provided that neither under the laws
of the Marshall Islands nor under the laws of the
United States, shall the Government of the United
•HJ 63 EH
States be liable for any loss or damage to person or
property in respect to the resettlement of Enjebi by
the people of Enjebi, pursuant to the provision of
this subsection or otherwise.
(k) BIKINI ATOLL CLEANUP.—
(1) DECLARATION
OF
POLICY.—In the joint
resolution of January 14, 1986 (Public Law 99–
239), the Congress determined and declared that it
is the policy of the United States, to be supported
by the full faith and credit of the United States,
that because the United States, through its nuclear
testing and other activities, rendered Bikini Atoll
unsafe for habitation by the people of Bikini, the
United States will fulfill its responsibility for restor-
ing Bikini Atoll to habitability, as set forth in para-
graph (2) and (3) of this subsection.
(2) CLEANUP FUNDS.—The joint resolution of
January 14, 1986 (Public Law 99–239) authorized
to be appropriated such sums as necessary to imple-
ment the settlement agreement of March 15, 1985,
in The People of Bikini, et al. against United States
of America, et al., Civ. No. 84–0425 (D. Ha.).
(3) CONDITIONS
OF
FUNDING.—In the joint
resolution of January 14, 1986 (Public Law 99–
239) the Congress provided that the funds referred
•HJ 63 EH
Such authority shall include authority for the
Comptroller General to conduct or cause to be
conducted any of the audits provided for in sec-
tion 232 of the U.S.-RMI Compact. The au-
thority provided in this paragraph shall con-
tinue for at least three years after the last such
grant has been made or assistance has been
provided.
(B) The Comptroller General (and his duly
authorized representatives) shall also have au-
thority to review any audit conducted by or on
behalf of the Government of the United States.
In this connection, the Comptroller General
shall have access to such personnel and to such
records, documents, working papers, automated
data and files, and other information relevant
to such review.
(2) 
COMPTROLLER
GENERAL
ACCESS
TO
RECORDS.—
(A) In carrying out paragraph (1), the
Comptroller General (and his duly authorized
representatives) shall have such access to the
personnel and (without cost) to records, docu-
ments, working papers, automated data and
files, and other information relevant to such au-
•HJ 63 EH
dits. The Comptroller General may duplicate
any such records, documents, working papers,
automated data and files, or other information
relevant to such audits.
(B) Such records, documents, working pa-
pers, automated data and files, and other infor-
mation regarding each such grant or other as-
sistance shall be maintained for at least three
years after the date such grant or assistance
was provided and in a manner that permits
such grants, assistance and payments to be ac-
counted for distinct from any other funds of the
Government of the Republic of the Marshall Is-
lands.
(3) STATUS OF COMPTROLLER GENERAL REP-
RESENTATIVES.—The Comptroller General and his
duly authorized representatives shall be immune
from civil and criminal process relating to words
spoken or written and all acts performed by them in
their official capacity and falling within their func-
tions, except insofar as such immunity may be ex-
pressly waived by the Government of the United
States. The Comptroller General and his duly au-
thorized representatives shall not be liable to arrest
or detention pending trial, except in the case of a
•HJ 63 EH
grave crime and pursuant to a decision by a com-
petent judicial authority, and such persons shall
enjoy immunity from seizure of personal property,
immigration restrictions, and laws relating to alien
registration, fingerprinting, and the registration of
foreign agents. Such persons shall enjoy the same
taxation exemptions as are set forth in Article 34 of
the Vienna Convention on Diplomatic Relations. The
privileges, exemptions and immunities accorded
under this paragraph are not for the personal ben-
efit of the individuals concerned but are to safeguard
the independent exercise of their official functions.
Without prejudice to those privileges, exemptions
and immunities, it is the duty of all such persons to
respect the laws and regulations of the Government
of the Republic of the Marshall Islands.
(4) AUDITS DEFINED.—As used in this sub-
section, the term ‘‘audits’’ includes financial, pro-
gram, 
and 
management 
audits, 
including
determining—
(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
•HJ 63 EH
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-
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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-
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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:
•HJ 63 EH
(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
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
•HJ 63 EH
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:
(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
•HJ 63 EH
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
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-
•HJ 63 EH
fied nonimmigrants in Guam, the State of Ha-
waii, the Commonwealth of the Northern Mar-
iana Islands, and American Samoa. The
enumeration—
(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;
(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
•HJ 63 EH
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
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.
•HJ 63 EH
(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
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
•HJ 63 EH
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-
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.
•HJ 63 EH
(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
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
•HJ 63 EH
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
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
•HJ 63 EH
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.
(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
•HJ 63 EH
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-
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
•HJ 63 EH
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
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.—
•HJ 63 EH
(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.-
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)
•HJ 63 EH
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.
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
•HJ 63 EH
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.
(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,
•HJ 63 EH
‘‘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-
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
•HJ 63 EH
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.
(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
•HJ 63 EH
State or political subdivision thereof in which the
Trust Fund Committee is incorporated or doing
business, impedes or otherwise interferes with the
performance of the functions of the Trust Fund
Committee pursuant to this joint resolution, such
law, rule, regulation, or ordinance shall be deemed
to be preempted by this joint resolution.
(c) 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
•HJ 63 EH
after the effective date of the Compact with respect to the
Federated States of Micronesia and the Republic of the
Marshall Islands for the following purposes:
(1) Prior to October 1, 1986, for any purpose
authorized by the Compact or the joint resolution of
January 14, 1986 (Public Law 99–239).
(2) Transition purposes, including but not 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:
•HJ 63 EH
(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
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
•HJ 63 EH
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
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-
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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-
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
•HJ 63 EH
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
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
•HJ 63 EH
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
(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.
•HJ 63 EH
(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
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-
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
United States to the same extent as any person in the
United States would be liable for fees, if any, for such
services in the United States.
(o) TREATMENT OF JUDGMENTS OF COURTS OF THE
FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF
THE
MARSHALL
ISLANDS, AND
THE
REPUBLIC
OF
PALAU.—No judgment, whenever issued, of a court of the
Federated States of Micronesia, the Republic of the 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
•HJ 63 EH
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.–
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
•HJ 63 EH
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
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
•HJ 63 EH
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,
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
Governments—
•HJ 63 EH
(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,
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
•HJ 63 EH
Government of the Federated States of Micronesia or the
Republic of the Marshall Islands if such Governments,
pursuant to an agreement entered into with the United
States, apply a preference on the award of contracts to
United States firms, provided that the amount of such
preference does not exceed 10 percent of the amount of
the lowest qualified bid from a non-United States firm for
such contract.
SEC. 107. PROHIBITION.
The provisions of chapter 11 of title 18, United
States Code, shall apply in full to any individual who has
served as the United States negotiator of amendments to
the Compact or its subsidiary agreements or of related
agreements or who is or was an officer or employee of
the Office in the Department of State responsible for 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-
•HJ 63 EH
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
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
•HJ 63 EH
(Public Law 99–239) for adverse impacts, if any, on
the finances and economies of such areas resulting
from the effect of Title IV of that joint resolution
upon Title Two of the Compact. The joint resolution
of January 14, 1986 (Public Law 99–239) further
provided that at the end of the initial fifteen-year
term of the Compact, should any portion of the total
amount of funds authorized in subsection 111 of
that resolution not have been appropriated, such
amount not yet appropriated may be appropriated,
without regard to divisions between amounts 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-
•HJ 63 EH
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-
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.
•HJ 63 EH
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
States of Micronesia, the Republic of the Marshall Islands,
or the Republic of Palau,’’.
•HJ 63 EH
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
rights and fundamental freedoms for all, and that the peo-
•HJ 63 EH
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-
ernment-to-government relationship which was in accord-
•HJ 63 EH
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
FURTHER AGREE that the relationship of free as-
sociation derives from and is as set forth in this Compact,
•HJ 63 EH
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.
(b) The foreign affairs capacity of the Government
of the Federated States of Micronesia includes:
•HJ 63 EH
(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
law and shall settle its international disputes by peaceful
means.
Section 122
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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
•HJ 63 EH
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
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
101
•HJ 63 EH
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
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
102
•HJ 63 EH
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
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
103
•HJ 63 EH
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);
(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
104
•HJ 63 EH
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
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
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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.
(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-
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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-
admissibility or deportability shall be based on reasonable
statutory grounds and shall be subject to appropriate ad-
ministrative and judicial review within the Federated
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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
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
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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-
matic missions and representation, the Governments may
establish and maintain other offices and designate other
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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),
unless and until those controls are modified under
sections 161(a)(3) and 161(a)(4);
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(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
States and of the Federated States of Micronesia, as
may be mutually agreed from time to time with the
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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
United States and, as a further reciprocal obligation, shall
enforce those standards.
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(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-
ernment of the Federated States of Micronesia shall be
sought and considered to the extent practicable. If the
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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:
(a) Such actions may only be civil actions for
any appropriate civil relief other than punitive dam-
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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.
(e) The judicial remedy provided for in this sec-
tion shall be the exclusive remedy for the judicial re-
view or enforcement of the obligations of the Gov-
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ernment of the United States under this Article and
actions brought under section 172(b) which relate to
the activities of the Government of the United
States and its officers and employees governed by
section 161.
(f) In actions pursuant to this section, the Gov-
ernment of the Federated States of Micronesia shall
be treated as if it were a United States citizen.
Section 163
(a) For the purpose of gathering data necessary to
study the environmental effects of activities of the Govern-
ment of the United States subject to the requirements of
this Article, the Government of the Federated States of
Micronesia shall be granted access to facilities operated
by the Government of the United States in the Federated
States of Micronesia, to the extent necessary for this pur-
pose, except to the extent such access would unreasonably
interfere with the exercise of the authority and responsi-
bility of the Government of the United States under Title
Three.
(b) The Government of the United States, in turn,
shall be granted access to the Federated States of Micro-
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-
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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
(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.
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(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
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
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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
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
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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-
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
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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
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-
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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.
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:
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‘‘(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
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
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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.
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
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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
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-
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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
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
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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
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-
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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.
(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
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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-
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.
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(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-
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-
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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
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
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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-
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-
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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-
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
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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-
nomic Management Committee shall be governed by the
Fiscal Procedures Agreement.
Section 214 - Annual Report
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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.
(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-
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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
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-
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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
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
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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;
(5) the Federal Deposit Insurance Corporation
(for the benefit only of the Bank of the Federated
States of Micronesia), and
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(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
section 211 will be considered to be local revenues
of the Government of the Federated States of Micro-
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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-
ject to all applicable criteria, standards, reporting require-
ments, auditing procedures, and other rules and regula-
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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
for the operations of the services and programs provided
pursuant to this Article, and such facilities as are provided
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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.
Article III
Administrative Provisions
Section 231
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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
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).
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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
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
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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:
(a) Unless otherwise excluded, articles imported
from the Federated States of Micronesia, subject to
the limitations imposed under section 503(b) of title
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•HJ 63 EH
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
9113, of the Harmonized Tariff Schedule of the
United States;
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(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-
sections (a), (b), (c), and (d) of section 242 shall be sub-
ject to the rates of duty set forth in column numbered
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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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•HJ 63 EH
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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agreements, which shall remain in effect in accordance
with the terms of such agreements.
Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended,
and its related agreements, the Government of the United
States, exclusively, has assumed and enjoys, as to the Fed-
erated States of Micronesia, all obligations, responsibil-
ities, rights and benefits of:
(a) Any defense treaty or other international security
agreement applied by the Government of the United
States as Administering Authority of the Trust Territory
of the Pacific Islands as of November 2, 1986.
(b) Any defense treaty or other international security
agreement to which the Government of the United States
is or may become a party which it determines to be appli-
cable in the Federated States of Micronesia. Such a deter-
mination by the Government of the United States shall
be preceded by appropriate consultation with the Govern-
ment of the Federated States of Micronesia.
Article IV
Service in Armed Forces of the United States
Section 341
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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.