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showing of such adverse impact, if any, as provided
in that subsection.
(2) The governments of the Federated States of
Micronesia and the Republic of the Marshall Islands
may each submit no more than one report or request
for further compensation under section 111 of the
joint resolution of January 14, 1986 (Public Law 99–
239) and any such report or request must be sub-
mitted by September 30, 2009. Only adverse economic
effects occurring during the initial 15-year term of
the Compact may be considered for compensation
under section 111 of the joint resolution of January
14, 1986 (Public Law 99–239).
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIA-
TION.
(a) There are authorized and appropriated to the De-
partment of the Interior, out of any funds in the Treasury
not otherwise appropriated, to remain available until ex-
pended, such sums as are necessary to carry out the pur-
poses of sections 105(f)(1) and 105(i) of this Act, 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 De-
partments, agencies, and instrumentalities named in para-
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graphs (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 re-
main available until expended.
SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED
STATES OF MICRONESIA, THE REPUBLIC OF
THE MARSHALL ISLANDS, AND THE REPUBLIC
OF PALAU EMPLOYED BY THE GOVERNMENT
OF THE UNITED STATES IN THE CONTI-
NENTAL UNITED STATES.
Section 605 of Public Law 107–67 (the Treasury and
General Government Appropriations Act, 2002) is amended
by striking ‘‘or the Republic of the Philippines,’’ in the last
sentence and inserting the following: ‘‘the Republic of the
Philippines, the Federated States of Micronesia, the Repub-
lic of the Marshall Islands, or the Republic of Palau,’’.
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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 GOVERNMENT
OF THE FEDERATED STATES OF MICRONESIA
AND BETWEEN THE GOVERNMENT OF THE
UNITED STATES OF AMERICA AND THE GOV-
ERNMENT OF THE REPUBLIC OF THE MAR-
SHALL ISLANDS.
(a) COMPACT OF FREE ASSOCIATION, AS AMENDED,
BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA
AND
THE GOVERNMENT
OF
THE FEDERATED
STATES OF MICRONESIA.—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 is as follows:
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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 people
of the Federated States of Micronesia have the right to enjoy
self-government; and
Affirming the common interests of the United States
of America and the Federated States of Micronesia in 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 budg-
etary self-reliance of the Federated States of Micronesia;
and
Recognizing that their relationship until the entry into
force on November 3, 1986 of the Compact was based upon
the International Trusteeship System of the United Nations
Charter, and in particular Article 76 of the Charter; and
that pursuant to Article 76 of the Charter, the people of
the Federated States of Micronesia have progressively devel-
oped their institutions of self-government, and that in the
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exercise of their sovereign right to self-determination they,
through their freely-expressed wishes, have adopted a Con-
stitution appropriate to their particular circumstances; and
Recognizing that the Compact reflected their common
desire to terminate the Trusteeship and establish a govern-
ment-to-government relationship which was in accordance
with the new political status based on the freely expressed
wishes of the people of the Federated States of Micronesia
and appropriate to their particular circumstances; and
Recognizing that the people of the Federated States of
Micronesia have and retain their sovereignty and their sov-
ereign right to self-determination and the inherent right to
adopt and amend their own Constitution and form of gov-
ernment and that the approval of the entry of the Govern-
ment of the Federated States of Micronesia into the Com-
pact by the people of the Federated States of Micronesia
constituted an exercise of their sovereign right to self-deter-
mination; and
Recognizing the common desire of the people of the
United States and the people of the Federated States of Mi-
cronesia to maintain their close government-to-government
relationship, the United States and the Federated States of
Micronesia:
NOW, THEREFORE, MUTUALLY AGREE to con-
tinue and strengthen their relationship of free association
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by amending the Compact, which continues to provide a
full measure of self-government for the people of the Fed-
erated States of Micronesia; and
FURTHER AGREE that the relationship of free asso-
ciation derives from and is as set forth in this Compact,
as amended, by the Governments of the United States and
the Federated States of Micronesia; and that, during such
relationship of free association, the respective rights and re-
sponsibilities 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, act-
ing through the Government established under their Con-
stitution, are self-governing.
Article II
Foreign Affairs
Section 121
(a) The Government of the Federated States of Micro-
nesia has the capacity to conduct foreign affairs and shall
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it shall act in accordance with principles of international
law and shall settle its international disputes by peaceful
means.
Section 122
The Government of the United States shall support ap-
plications by the Government of the Federated States of Mi-
cronesia for membership or other participation in regional
or international organizations as may be mutually agreed.
Section 123
(a) In recognition of the authority and responsibility
of the Government of the United States under Title Three,
the Government of the Federated States of Micronesia shall
consult, in the conduct of its foreign affairs, with the Gov-
ernment of the United States.
(b) In recognition of the foreign affairs capacity of the
Government of the Federated States of Micronesia, the Gov-
ernment 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 Govern-
ment 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-
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quested and mutually agreed from time to time. The Gov-
ernment of the United States shall not be responsible to
third parties for the actions of the Government of the Fed-
erated States of Micronesia undertaken with the assistance
or through the agency of the Government of the United
States pursuant to this section unless expressly agreed.
Section 125
The Government of the United States shall not be re-
sponsible for nor obligated by any actions taken by the Gov-
ernment of the Federated States of Micronesia in the area
of foreign affairs, except as may from time to time be ex-
pressly agreed.
Section 126
At the request of the Government of the Federated
States of Micronesia and subject to the consent of the receiv-
ing state, the Government of the United States shall extend
consular assistance on the same basis as for citizens of the
United States to citizens of the Federated States of Micro-
nesia 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, respon-
sibilities, rights and benefits of the Government of the
United States as Administering Authority which resulted
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from the application pursuant to the Trusteeship Agreement
of any treaty or other international agreement to the Trust
Territory of the Pacific Islands on November 2, 1986, are,
as of that date, no longer assumed and enjoyed by the Gov-
ernment of the United States.
Article III
Communications
Section 131
(a) The Government of the Federated States of Micro-
nesia has full authority and responsibility to regulate its
domestic and foreign communications, and the Government
of the United States shall provide communications assist-
ance as mutually agreed.
(b) On May 24, 1993, the Government of the Federated
States of Micronesia elected to undertake all functions pre-
viously performed by the Government of the United States
with respect to domestic and foreign communications, ex-
cept for those functions set forth in a separate agreement
entered into pursuant to this section of the Compact, as
amended.
Section 132
The Government of the Federated States of Micronesia
shall permit the Government of the United States to operate
telecommunications services in the Federated States of Mi-
cronesia to the extent necessary to fulfill the obligations of
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the Government of the United States under this Compact,
as amended, in accordance with the terms of separate agree-
ments entered into pursuant to this section 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 Federated
States of Micronesia, under the Compact, as amended, any
person in the following categories may be admitted to, law-
fully engage in occupations, and establish residence as a
nonimmigrant in the United States and its territories and
possessions (the ‘‘United States’’) without regard to para-
graph (5) or (7)(B)(i)(II) of section 212(a) of the Immigra-
tion and Nationality Act, as amended, 8 U.S.C. 1182(a)(5)
or (7)(B)(i)(II):
(1) a person who, on November 2, 1986, was a
citizen of the Trust Territory of the Pacific Islands,
as defined in Title 53 of the Trust Territory Code in
force on January 1, 1979, and has become and re-
mains a citizen of the Federated States of Micronesia;
(2) a person who acquires the citizenship of the
Federated States of Micronesia at birth, on or after
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the effective date of the Constitution of the Federated
States of Micronesia;
(3) an immediate relative of a person referred to
in paragraphs (1) or (2) of this section, provided that
such immediate relative is a naturalized citizen of the
Federated States of Micronesia who has been an ac-
tual resident there for not less than five years after
attaining such naturalization and who holds a certifi-
cate of actual residence, and further provided, that, in
the case of a spouse, such spouse has been married to
the person referred to in paragraph (1) or (2) of this
section for at least five years, and further provided,
that the Government of the United States is satisfied
that such naturalized citizen meets the requirement of
subsection (b) of section 104 of Public Law 99–239 as
it was in effect on the day prior to the effective date
of this Compact, as amended;
(4) a naturalized citizen of the Federated States
of Micronesia who was an actual resident there for
not less than five years after attaining such natu-
ralization and who satisfied these requirements as of
April 30, 2003, who continues to be an actual resi-
dent and holds a certificate of actual residence, and
whose name is included in a list furnished by the
Government of the Federated States of Micronesia to
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the Government of the United States no later than the
effective date of the Compact, as amended, in form
and content acceptable to the Government of the
United States, provided, that the Government of the
United States is satisfied that such naturalized cit-
izen 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 Fed-
erated States of Micronesia, regardless of the imme-
diate relative’s country of citizenship or period of res-
idence in the Federated States of Micronesia, if the
citizen of the Federated States of Micronesia is serv-
ing 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 sub-
section shall apply to any person who is or was an appli-
cant for admission to the United States on or after March
1, 2003, including any applicant for admission in removal
proceedings (including appellate proceedings) on or after
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March 1, 2003, regardless of the date such proceedings were
commenced. This subsection shall have no effect on the abil-
ity 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 vio-
lated 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 Fed-
erated States of Micronesia passport pursuant to any in-
vestment, 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 unex-
pired Federated States of Micronesia passport with unex-
pired 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 authoriza-
tion under section 274A(b)(1)(B) of the Immigration and
Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The
Government of the United States will take reasonable and
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appropriate steps to implement and publicize this provi-
sion, and the Government of the Federated States of Micro-
nesia will also take reasonable and appropriate steps to
publicize this provision.
(e) For purposes of the Compact and the Compact, as
amended:
(1) the term ‘‘residence’’ with respect to a person
means the person’s principal, actual dwelling place in
fact, without regard to intent, as provided in section
101(a)(33) of the Immigration and Nationality Act,
as amended, 8 U.S.C. 1101(a)(33), and variations of
the term ‘‘residence,’’ including ‘‘resident’’ and ‘‘re-
side,’’ shall be similarly construed;
(2) the term ‘‘actual residence’’ means physical
presence in the Federated States of Micronesia during
eighty-five percent of the five-year period of residency
required by section 141(a)(3) and (4);
(3) the term ‘‘certificate of actual residence’’
means a certificate issued to a naturalized citizen by
the Government of the Federated States of Micronesia
stating that the citizen has complied with the actual
residence requirement of section 141(a)(3) or (4);
(4) the term ‘‘nonimmigrant’’ means an alien
who is not an ‘‘immigrant’’ as defined in section
101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and
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(5) the term ‘‘immediate relative’’ means a
spouse, or unmarried son or unmarried daughter less
than 21 years of age.
(f) The Immigration and Nationality Act, as amended,
shall apply to any person admitted or seeking admission
to the United States (other than a United States possession
or territory where such Act does not apply) under the Com-
pact or the Compact, as amended, and nothing in the Com-
pact or the Compact, as amended, shall be construed to
limit, preclude, or modify the applicability of, with respect
to such person:
(1) any ground of inadmissibility or deport-
ability under such Act (except sections 212(a)(5) and
212(a)(7)(B)(i)(II) of such Act, as provided in sub-
section (a) of this section), and any defense thereto,
provided that, section 237(a)(5) of such Act shall be
construed and applied as if it reads as follows: ‘‘any
alien who has been admitted under the Compact, or
the Compact, as amended, who cannot show that he
or she has sufficient means of support in the United
States, is deportable’’;
(2) the authority of the Government of the
United States under section 214(a)(1) of such Act to
provide that admission as a nonimmigrant shall be
for such time and under such conditions as the Gov-
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ernment of the United States may by regulations pre-
scribe;
(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 section
of the Compact, as amended, any requirement under
section 274A, including but not limited to section
274A(b)(1)(E);
(4) Section 643 of the Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996, Pub-
lic Law 104–208, and actions taken pursuant to sec-
tion 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 Com-
pact, as amended, may also be exercised by the Government
of a territory or possession of the United States where the
Immigration and Nationality Act, as amended, does not
apply, to the extent such exercise of authority is lawful
under a statute or regulation of such territory or possession
that is authorized by the laws of the United States.
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(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. Sub-
section (a) of this section, however, shall not prevent a cit-
izen of the Federated States of Micronesia from otherwise
acquiring such rights or lawful permanent resident alien
status in the United States.
Section 142
(a) Any citizen or national of the United States may
be admitted, to lawfully engage in occupations, and reside
in the Federated States of Micronesia, subject to the rights
of the Government of the Federated States of Micronesia to
deny entry to or deport any such citizen or national as
an undesirable alien. Any determination of inadmissibility
or deportability shall be based on reasonable statutory
grounds and shall be subject to appropriate administrative
and judicial review within the Federated States of Micro-
nesia. If a citizen or national of the United States is a
spouse of a citizen of the Federated States of Micronesia,
the Government of the Federated States of Micronesia shall
allow the United States citizen spouse to establish residence.
Should the Federated States of Micronesia citizen spouse
predecease the United States citizen spouse during the mar-
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riage, the Government of the Federated States of Micronesia
shall allow the United States citizen spouse to continue to
reside in the Federated States of Micronesia.
(b) In enacting any laws or imposing any 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 in-
admissibility or deportability, the Government of the Fed-
erated States of Micronesia shall accord to such citizens and
nationals of the United States treatment no less favorable
than that accorded to citizens of other countries.
(c) Consistent with subsection (a) of this section, with
respect to citizens and nationals of the United States 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 proce-
dures no less favorable than those adopted by the Govern-
ment of the United States with respect to citizens of the
Federated States of Micronesia seeking employment in the
United States.
Section 143
Any person who relinquishes, or otherwise loses, his
United States nationality or citizenship, or his Federated
States of Micronesia citizenship, shall be ineligible to re-
ceive the privileges set forth in sections 141 and 142. Any
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such person may apply for admission to the United States
or the Federated States of Micronesia, as the case may be,
in accordance with any other applicable laws of the United
States or the Federated States of Micronesia relating to im-
migration of aliens from other countries. The laws of the
Federated States of Micronesia or the United States, as the
case may be, shall dictate the terms and conditions of any
such person’s stay.
Article V
Representation
Section 151
Relations between the Government of the United States
and the Government of the Federated States of Micronesia
shall be conducted in accordance with the Vienna Conven-
tion on Diplomatic Relations. In addition to diplomatic
missions and representation, the Governments may estab-
lish and maintain other offices and designate other rep-
resentatives on terms and in locations as may be mutually
agreed.
Section 152
(a) Any citizen or national of the United States who,
without authority of the United States, acts as the agent
of the Government of the Federated States of Micronesia
with regard to matters specified in the provisions of the
Foreign Agents Registration Act of 1938, as amended (22
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U.S.C. 611 et seq.), that apply with respect to an agent
of a foreign principal shall be subject to the requirements
of such Act. Failure to comply with such requirements shall
subject such citizen or national to the same penalties and
provisions of law as apply in the case of the failure of such
an agent of a foreign principal to comply with such require-
ments. For purposes of the Foreign Agents Registration Act
of 1938, the Federated States of Micronesia shall be consid-
ered to be a foreign country.
(b) Subsection (a) of this section shall not apply to
a citizen or national of the United States employed by the
Government of the Federated States of Micronesia with re-
spect to whom the Government of the Federated States of
Micronesia from time to time certifies to the Government
of the United States that such citizen or national is an em-
ployee of the Federated States of Micronesia whose prin-
cipal duties are other than those matters specified in the
Foreign Agents Registration Act of 1938, as amended, that
apply with respect to an agent of a foreign principal. The
agency or officer of the United States receiving such certifi-
cations shall cause them to be filed with the Attorney Gen-
eral, who shall maintain a publicly available list of the per-
sons so certified.
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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 Micronesia.
In order to carry out this policy, the Government of the
United States and the Government of the Federated States
of Micronesia agree to the following mutual and reciprocal
undertakings.
(a) The Government of the United States:
(1) shall continue to apply the environmental
controls in effect on November 2, 1986 to those of its
continuing activities subject to section 161(a)(2), un-
less and until those controls are modified under sec-
tions 161(a)(3) and 161(a)(4);
(2) shall apply the National Environmental Pol-
icy Act of 1969, 83 Stat. 852, 42 U.S.C. 4321 et seq.,
to its activities under the Compact, as amended, and
its related agreements as if the Federated States of
Micronesia were the United States;
(3) shall comply also, in the conduct of any ac-
tivity requiring the preparation of an Environmental
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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 (Fed-
eral Water Pollution Control Act), as amended, 86
Stat. 896, 33 U.S.C. 1251 et seq.; Title I of the Ma-
rine 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 Govern-
ment 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 Govern-
ment of the Federated States of Micronesia, to imple-
ment the substantive provisions of the laws made ap-
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plicable to U.S. Government activities in the Fed-
erated States of Micronesia, pursuant to section
161(a)(3).
(b) The Government of the Federated States of Micro-
nesia shall continue to develop and implement standards
and procedures to protect its environment. As a reciprocal
obligation to the undertakings of the Government of the
United States under this Article, the Federated States of
Micronesia, taking into account its particular environment,
shall continue to develop and implement standards for envi-
ronmental 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 con-
ducted there by the Government of the United States and,
as a further reciprocal obligation, shall enforce those stand-
ards.
(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 Government
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
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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 agree-
ments from any environmental standard or procedure
which may be applicable under sections 161(a)(3) and
161(a)(4) if the President determines it to be in the para-
mount interest of the Government of the United States to
do so, consistent with Title Three of this Compact, as
amended, and the obligations of the Government of the
United States under international law. Prior to any deci-
sion pursuant to this subsection, the views of the Govern-
ment of the Federated States of Micronesia shall be sought
and considered to the extent practicable. If the President
grants such an exemption, to the extent practicable, a report
with his reasons for granting such exemption shall be given
promptly to the Government of the Federated States of Mi-
cronesia.
(f) The laws of the United States referred to in section
161(a)(3) shall apply to the activities of the Government
of the United States under this Compact, as amended, and
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its related agreements only to the extent provided for in this
section.
Section 162
The Government of the Federated States of Micronesia
may bring an action for judicial review of any administra-
tive agency action or any activity of the Government of the
United States pursuant to section 161(a) for enforcement
of the obligations of the Government of the United States
arising thereunder. The United States District Court for the
District of Hawaii and the United States District Court
for the District of Columbia shall have jurisdiction over
such action or activity, and over actions brought under sec-
tion 172(b) which relate to the activities of the Government
of the United States and its officers and employees, gov-
erned by section 161, provided that:
(a) Such actions may only be civil actions for
any appropriate civil relief other than punitive dam-
ages against the Government of the United States or,
where required by law, its officers in their official ca-
pacity; no criminal actions may arise under this sec-
tion.
(b) Actions brought pursuant to this section may
be initiated only by the Government of the Federated
States of Micronesia.
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(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 Dis-
trict of Hawaii and the United States District Court
for the District of Columbia shall have jurisdiction to
issue all necessary processes, and the Government of
the United States agrees to submit itself to the juris-
diction 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 Co-
lumbia, 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 Govern-
ment of the United States under this Article and ac-
tions 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
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(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 Micro-
nesia shall be granted access to facilities operated by the
Government of the United States in the Federated States
of Micronesia, to the extent necessary for this purpose, ex-
cept to the extent such access would unreasonably interfere
with the exercise of the authority and responsibility of the
Government of the United States under Title Three.
(b) The Government of the United States, in turn, shall
be granted access to the Federated States of Micronesia for
the purpose of gathering data necessary to discharge its ob-
ligations under this Article, except to the extent such access
would unreasonably interfere with the exercise of the au-
thority and responsibility of the Government of the Fed-
erated States of Micronesia under Title One, and to the ex-
tent 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 Micro-
nesia shall not impede efforts by the Government of the
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United States to comply with applicable standards and
procedures.
Article VII
General Legal Provisions
Section 171
Except as provided in this Compact, as amended, or
its related agreements, the application of the laws of the
United States to the Trust Territory of the Pacific Islands
by virtue of the Trusteeship Agreement ceased with respect
to the Federated States of Micronesia on November 3, 1986,
the date the Compact went into effect.
Section 172
(a) Every citizen of the Federated States of Micronesia
who is not a resident of the United States shall enjoy the
rights and remedies under the laws of the United States
enjoyed by any non-resident alien.
(b) The Government of the Federated States of Micro-
nesia and every citizen of the Federated States of Micro-
nesia shall be considered to be a ‘‘person’’ within the mean-
ing of the Freedom of Information Act, 5 U.S.C. 552, and
of the judicial review provisions of the Administrative Pro-
cedure Act, 5 U.S.C. 701–706, except that only the Govern-
ment of the Federated States of Micronesia may seek judi-
cial review under the Administrative Procedure Act or judi-
cial enforcement under the Freedom of Information Act
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when such judicial review or enforcement relates to the ac-
tivities 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 Govern-
ment of the United States in the Federated States of Micro-
nesia pursuant to this Compact, as amended, and its re-
lated agreements and by the Government of the Federated
States of Micronesia in the United States pursuant to this
Compact, as amended, and its related agreements.
Section 174
Except as otherwise provided in this Compact, as
amended, and its related agreements:
(a) The Government of the Federated States of
Micronesia, and its agencies and officials, shall be
immune from the jurisdiction of the court of the
United States, and the Government of the United
States, and its agencies and officials, shall be immune
from the jurisdiction of the courts of the Federated
States of Micronesia.
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(b) The Government of the United States accepts
responsibility for and shall pay:
(1) any unpaid money judgment rendered
by the High Court of the Trust Territory of the
Pacific Islands against the Government of the
United States with regard to any cause of action
arising as a result of acts or omissions of the
Government of the Trust Territory of the Pacific
Islands or the Government of the United States
prior to November 3, 1986;
(2) any claim settled by the claimant and
the Government of the Trust Territory of the Pa-
cific 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 Ter-
ritory of the Pacific Islands or the Government
of the United States, arising as a result of acts
or omissions of the Government of the Trust Ter-
ritory 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 effec-
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tive date of the Compact shall be adjudicated in the
same manner as a claim adjudicated according to sec-
tion 174(d). In any claim against the Government of
the Trust Territory of the Pacific Islands, the Govern-
ment of the United States shall stand in the place of
the Government of the Trust Territory of the Pacific
Islands. A judgment on any claim referred to in sec-
tion 174(b) or this subsection, not otherwise satisfied
by the Government of the United States, may be pre-
sented for certification to the United States Court of
Appeals for the Federal Circuit, or its successor
courts, which shall have jurisdiction therefore, not-
withstanding the provisions of 28 U.S.C. 1502, and
which court’s decisions shall be reviewable as provided
by the laws of the United States. The United States
Court of Appeals for the Federal Circuit shall certify
such judgment, and order payment thereof, unless it
finds, after a hearing, that such judgment is mani-
festly erroneous as to law or fact, or manifestly exces-
sive. In either of such cases the United States Court
of Appeals for the Federal Circuit shall have jurisdic-
tion to modify such judgment.
(d) The Government of the Federated States of
Micronesia shall not be immune from the jurisdiction
of the courts of the United States, and the Govern-
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ment of the United States shall not be immune from
the jurisdiction of the courts of the Federated States
of Micronesia in any civil case in which an exception
to foreign state immunity is set forth in the Foreign
Sovereign Immunities Act (28 U.S.C. 1602 et seq.) or
its successor statutes.
Section 175
(a) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall
have the force of law, shall govern mutual assistance and
cooperation in law enforcement matters, including the pur-
suit, capture, imprisonment and extradition of fugitives
from justice and the transfer of prisoners, as well as other
law enforcement matters. In the United States, the laws of
the United States governing international extradition, in-
cluding 18 U.S.C. 3184, 3186 and 3188–95, shall be appli-
cable to the extradition of fugitives under the separate
agreement, and the laws of the United States governing the
transfer of prisoners, including 18 U.S.C. 4100–15, shall
be applicable to the transfer of prisoners under the separate
agreement; and
(b) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall
have the force of law, shall govern requirements relating to
labor recruitment practices, including registration, report-
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‘‘(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 citi-
zens and which have not as yet been compensated or
which in the future may arise, for the continued ad-
ministration by the Government of the United States
of direct radiation related medical surveillance and
treatment programs and radiological monitoring ac-
tivities and for such additional programs and activi-
ties as may be mutually agreed, and for the assump-
tion by the Government of the Marshall Islands of re-
sponsibility for enforcement of limitations on the uti-
lization of affected areas developed in cooperation
with the Government of the United States and for the
assistance by the Government of the United States in
the exercise of such responsibility as may be mutually
agreed. This separate agreement shall come into effect
simultaneously with this Compact and shall remain
in effect in accordance with its own terms.
‘‘(c) The Government of the United States shall
provide to the Government of the Marshall Islands, on
a grant basis, the amount of $150 million to be paid
and distributed in accordance with the separate
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agreement referred to in this Section, and shall pro-
vide the services and programs set forth in this sepa-
rate agreement, the language of which is incorporated
into this Compact.’’
The Compact, as amended, makes no changes to, and
has no effect upon, Section 177 of the Compact, nor does
the Compact, as amended, change or affect the separate
agreement referred to in Section 177 of the Compact includ-
ing 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
Title Two are authorized to settle and pay tort claims aris-
ing in the Federated States of Micronesia from the activities
of such agencies or from the acts or omissions of the employ-
ees of such agencies. Except as provided in section 178(b),
the provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall
apply exclusively to such administrative settlements and
payments.
(b) Claims under section 178(a) that cannot be settled
under section 178(a) shall be disposed of exclusively in ac-
cordance with Article II of Title Four. Arbitration awards
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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 Gov-
ernment of the Federated States of Micronesia shall, in the
separate agreement referred to in section 231, provide 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 accept,
investigate and settle such claims, in a timely man-
ner, as provided in such separate agreements; and
(2) arbitration, referred to in section 178(b), in
a timely manner, at a site convenient to the claim-
ant, in the event a claim is not otherwise settled pur-
suant 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 activ-
ity or activities of a recipient of any grant or other assist-
ance provided by the Government of the United States (or
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the activity or activities of the recipient’s agency or any
other person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Federated States of Micronesia
shall not exercise criminal jurisdiction over the Government
of the United States, or its instrumentalities.
(b) The courts of the Federated States of Micronesia
shall not exercise criminal jurisdiction over any person if
the Government of the United States provides notification
to the Government of the Federated States of Micronesia
that such person was acting on behalf of the Government
of the United States, for actions taken in furtherance of sec-
tion 221 or 224 of this amended Compact, or any other
provision of law authorizing financial, program, or service
assistance to the Federated States of Micronesia.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Sector Grants
(a) In order to assist the Government of the Federated
States of Micronesia in its efforts to promote the economic
advancement, budgetary self-reliance, and economic self-suf-
ficiency of its people, and in recognition of the special rela-
tionship that exists between the Federated States of Micro-
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nesia and the United States, the Government of the United
States shall provide assistance on a sector grant basis for
a period of twenty years in the amounts set forth in section
216, commencing on the effective date of this Compact, as
amended. Such grants shall be used for assistance in the
sectors of education, health care, private sector development,
the environment, public sector capacity building, and pub-
lic infrastructure, or for other sectors as mutually agreed,
with priorities in the education and health care sectors. For
each year such sector grant assistance is made available,
the proposed division of this amount among these sectors
shall be certified to the Government of the United States
by the Government of the Federated States of Micronesia
and shall be subject to the concurrence of the Government
of the United States. In such case, the Government of the
United States shall disburse the agreed upon amounts and
monitor the use of such sector grants in accordance with
the provisions of this Article and the Agreement Concerning
Procedures for the Implementation of United States 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 Federated
States of Micronesia (‘‘Fiscal Procedures Agreement’’)
which shall come into effect simultaneously with this Com-
pact, as amended. The provision of any United States as-
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sistance under the Compact, as amended, the Fiscal Proce-
dures Agreement, the Trust Fund Agreement, or any other
subsidiary agreement to the Compact, as amended, shall
constitute ‘‘a particular distribution . . . required by the
terms or special nature of the assistance’’ for purposes of
Article XII, section 1(b) of the Constitution of the Federated
States of Micronesia.
(1) EDUCATION.—United States grant assistance
shall be made available in accordance with the plan
described in subsection (c) of this section to support
and improve the educational system of the Federated
States of Micronesia and develop the human, finan-
cial, and material resources necessary for the Govern-
ment of the Federated States of Micronesia to perform
these services. Emphasis should be placed on advanc-
ing a quality basic education system.
(2) HEALTH.—United States grant assistance
shall be made available in accordance with the plan
described in subsection (c) of this section to support
and improve the delivery of preventive, curative and
environmental care and develop the human, financial,
and material resources necessary for the Government
of the Federated States of Micronesia to perform these
services.
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(3) PRIVATE
SECTOR
DEVELOPMENT.—United
States grant assistance shall be made available in ac-
cordance with the plan described in subsection (c) of
this section to support the efforts of the Government
of the Federated States of Micronesia to attract for-
eign investment and increase indigenous business ac-
tivity by vitalizing the commercial environment, en-
suring fair and equitable application of the law, pro-
moting adherence to core labor standards, and main-
taining progress toward privatization of state-owned
and partially state-owned enterprises, and engaging
in other reforms.
(4) CAPACITY
BUILDING
IN
THE
PUBLIC
SEC-
TOR.—United States grant assistance shall be made
available in accordance with the plan described in
subsection (c) of this section to support the efforts of
the Government of the Federated States of Micronesia
to build effective, accountable and transparent na-
tional, state, and local government and other public
sector institutions and systems.
(5) ENVIRONMENT.—United States grant assist-
ance shall be made available in accordance with the
plan described in subsection (c) of this section to in-
crease environmental protection; conserve and achieve
sustainable use of natural resources; and engage in
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environmental infrastructure planning, design con-
struction 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 Govern-
ment of the Federated States of Micronesia in its
efforts to provide adequate public infrastructure.
(ii) INFRASTRUCTURE
AND
MAINTENANCE
FUND.—Five percent of the annual public infra-
structure grant made available under paragraph
(i) of this subsection shall be set aside, with an
equal contribution from the Government of the
Federated States of Micronesia, as a contribution
to an Infrastructure Maintenance Fund (IMF).
Administration of the Infrastructure Mainte-
nance Fund shall be governed by the Fiscal Pro-
cedures Agreement.
(b) HUMANITARIAN ASSISTANCE.—Federated States of
Micronesia Program. In recognition of the special develop-
ment needs of the Federated States of Micronesia, the Gov-
ernment 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
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available under subsection (a) of this section, a Humani-
tarian Assistance - Federated States of Micronesia
(‘‘HAFSM’’) Program with emphasis on health, education,
and infrastructure (including transportation), projects. The
terms and conditions of the HAFSM shall be set forth in
the Agreement Regarding the Military Use and Operating
Rights of the Government of the United States in the Gov-
ernment of the Federated States of Micronesia Concluded
Pursuant to Sections 321 and 323 of the Compact of Free
Association, as Amended which shall come into effect simul-
taneously with the amendments to this Compact.
(c) DEVELOPMENT PLAN.—The Government of the
Federated States of Micronesia shall prepare and maintain
an official overall development plan. The plan shall be stra-
tegic in nature, shall be continuously reviewed and updated
through the annual budget process, and shall make projec-
tions on a multi-year rolling basis. Each of the sectors
named in subsection (a) of this section, or other sectors as
mutually agreed, shall be accorded specific treatment in the
plan. Insofar as grants funds are involved, the plan shall
be subject to the concurrence of the Government of the
United States.
(d) DISASTER ASSISTANCE EMERGENCY FUND.—An
amount of two hundred thousand dollars ($200,000) shall
be provided annually, with an equal contribution from the
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Government of the Federated States of Micronesia, as a con-
tribution 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 Admin-
istration of the DAEF shall be governed by the Fiscal Proce-
dures Agreement.
Section 212 - Accountability.
(a) Regulations and policies normally applicable to
United States financial assistance to its state and local gov-
ernments, as reflected in the Fiscal Procedures Agreement,
shall apply to each sector grant described in section 211,
and to grants administered under section 221 below, except
as modified in the separate agreements referred to in section
231 of this Compact, as amended, or by United States law.
The Government of the United States, after annual con-
sultations with the Federated States of Micronesia, may at-
tach reasonable terms and conditions, including annual
performance indicators that are necessary to ensure effective
use of United States assistance and reasonable progress to-
ward achieving program objectives. The Government of the
United States may seek appropriate remedies for non-
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compliance with the terms and conditions attached to the
assistance, or for failure to comply with section 234, includ-
ing withholding assistance.
(b) The Government of the United States shall, for each
fiscal year of the twenty years during which assistance is
to be provided on a sector grant basis under section 211,
grant the Government of the Federated States of Micronesia
an amount equal to the lesser of (i) one half of the reason-
able, properly documented cost incurred during each fiscal
year to conduct the annual audit required under Article
VIII (2) of the Fiscal Procedures Agreement or (ii)
$500,000. Such amount will not be adjusted for inflation
under section 217 or otherwise.
Section 213 - Joint Economic Management Committee
The Governments of the United States and the Fed-
erated States of Micronesia shall establish a Joint Economic
Management Committee, composed of a U.S. chair, two
other members from the Government of the United States
and two members from the Government of the Federated
States of Micronesia. The Joint Economic Management
Committee shall meet at least once each year to review the
audits and reports required under this Title, evaluate the
progress made by the Federated States of Micronesia in
meeting the objectives identified in its plan described in
subsection (c) of section 211, with particular focus on those
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parts of the plan dealing with the sectors identified in sub-
section (a) of section 211, identify problems encountered,
and recommend ways to increase the effectiveness of U.S.
assistance made available under this Title. The establish-
ment and operations of the Joint Economic Management
Committee shall be governed by the Fiscal Procedures Agree-
ment.
Section 214 - Annual Report
The Government of the Federated States of Micronesia
shall report annually to the President of the United States
on the use of United States sector grant assistance and other
assistance and progress in meeting mutually agreed pro-
gram and economic goals. The Joint Economic Manage-
ment Committee shall review and comment on the report
and make appropriate recommendations based thereon.
Section 215 - Trust Fund
(a) The United States shall contribute annually for
twenty years from the effective date of this Compact, as
amended, in the amounts set forth in section 216 into a
Trust Fund established in accordance with the Agreement
Between the Government of the United States of America
and the Government of the Federated States of Micronesia
Implementing Section 215 and Section 216 of the Compact,
as Amended, Regarding a Trust Fund (‘‘Trust Fund Agree-
ment’’). Upon termination of the annual financial assist-
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ance under section 211, the proceeds of the fund shall there-
after be used for the purposes described in section 211 or
as otherwise mutually agreed.
(b) The United States contribution into the Trust
Fund described in subsection(a) of this section is condi-
tioned on the Government of the Federated States of Micro-
nesia contributing to the Trust Fund at least $30 million,
prior to September 30, 2004. Any funds received by the Fed-
erated 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 Federal or state
taxes in the United States or the Federated States of Micro-
nesia. The Trust Fund Agreement shall also provide for an-
nual reports to the Government of the United States and
to the Government of the Federated States of Micronesia.
The Trust Fund Agreement shall provide for appropriate
distributions of trust fund proceeds to the Federated States
of Micronesia and for appropriate remedies for the failure
of the Federated States of Micronesia to use income of the
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Trust Fund for the annual grant purposes set forth in sec-
tion 211. These remedies may include the return to the
United States of the present market value of its contribu-
tions to the Trust Fund and the present market value of
any undistributed income on the contributions of the
United States. If this Compact, as amended, is terminated,
the provisions of sections 451 through 453 of this Compact,
as amended, shall govern treatment of any U.S. contribu-
tions 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 sec-
tion 212(b), the amounts stated in this Title shall be ad-
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justed 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 be-
ginning of Fiscal Year 2004 as a base.
Section 218 - Carry-Over of Unused Funds
If in any year the funds made available by the Govern-
ment of the United States for that year pursuant to this
Article are not completely obligated by the Government of
the Federated States of Micronesia, the unobligated balances
shall remain available in addition to the funds to be pro-
vided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) SERVICES.—The Government of the United States
shall make available to the Federated States of Micronesia,
in accordance with and to the extent provided in the Fed-
eral 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 Adminis-
tration;
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set forth in the Fiscal Procedures Agreement, funds
provided under subsection (a) of section 211 will be
considered to be local revenues of the Government of
the Federated States of Micronesia when used as the
local share required to obtain Federal programs and
services.
(2) Unless provided otherwise by U.S. law, the
services and programs described in paragraph (1) of
this subsection shall be extended in accordance with
the terms of the Federal Programs and Services
Agreement referred to in section 231.
(c) The Government of the United States shall have
and exercise such authority as is necessary to carry out its
responsibilities under this Title and the separate agree-
ments referred to in amended section 231, including the au-
thority to monitor and administer all service and program
assistance provided by the United States to the Federated
States of Micronesia. The Federal Programs and Services
Agreement referred to in amended section 231 shall also set
forth the extent to which services and programs shall be pro-
vided to the Federated States of Micronesia.
(d) Except as provided elsewhere in this Compact, as
amended, under any separate agreement entered into under
this Compact, as amended, or otherwise under U.S. law,
all Federal domestic programs extended to or operating in
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the Federated States of Micronesia shall be subject to all
applicable criteria, standards, reporting requirements, au-
diting procedures, and other rules and regulations applica-
ble to such programs and services when operating in the
United States.
(e) The Government of the United States shall make
available to the Federated States of Micronesia alternate en-
ergy development projects, studies, and conservation meas-
ures 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 Govern-
ment 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 pro-
grams, as provided under the laws of the United States.
Unless inconsistent with such laws, or otherwise specifically
precluded by the Government of the United States at the
time such additional grant assistance, services, or programs
are extended, the Federal Programs and Services Agreement
referred to section 231 shall apply to any such assistance,
services or programs.
Section 223
The Government of the Federated States of Micronesia
shall make available to the Government of the United States
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at no cost such land as may be necessary for the operations
of the services and programs provided pursuant to this Arti-
cle, and such facilities as are provided by the Government
of the Federated States of Micronesia at no cost to the Gov-
ernment of the United States as of the effective date of this
Compact, as amended, or as may be mutually agreed there-
after.
Section 224
The Government of the Federated States of Micronesia
may request, from time to time, technical assistance from
the Federal agencies and institutions of the Government of
the United States, which are authorized to grant such tech-
nical assistance in accordance with its laws. If technical
assistance is granted pursuant to such a request, the Gov-
ernment of the United States shall provide the technical as-
sistance in a manner which gives priority consideration to
the Federated States of Micronesia over other recipients not
a part of the United States, its territories or possessions,
and equivalent consideration to the Federated States of Mi-
cronesia with respect to other states in Free Association
with the United States. Such assistance shall be made avail-
able on a reimbursable or non-reimbursable basis to the ex-
tent provided by United States law.
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Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrange-
ments of the services and programs provided for in section
221 of this Compact, as amended, as well as the legal status
of agencies of the Government of the United States, their
civilian employees and contractors, and the dependents of
such personnel while present in the Federated States of Mi-
cronesia, and other arrangements in connection with the
assistance, services, or programs furnished by the Govern-
ment of the United States, are set forth in a Federal Pro-
grams and Services Agreement which shall come into effect
simultaneously with this Compact, as amended.
Section 232
The Government of the United States, in consultation
with the Government of the Federated States of Micronesia,
shall determine and implement procedures for the periodic
audit of all grants and other assistance made under Article
I of this Title and of all funds expended for the services
and programs provided under Article II of this Title. Fur-
ther, 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
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Public Law 99–239, 99 Stat. 1777–78, and 99 Stat. 1799
(January 14, 1986).
Section 233
Approval of this Compact, as amended, by the Govern-
ment of the United States, in accordance with its constitu-
tional processes, shall constitute a pledge by the United
States that the sums and amounts specified as sector grants
in section 211 of this Compact, as amended, shall be appro-
priated and paid to the Federated States of Micronesia for
such period as those provisions of this Compact, as amend-
ed, remain in force, subject to the terms and conditions of
this Title and related subsidiary agreements.
Section 234
The Government of the Federated States of Micronesia
pledges to cooperate with, permit, and assist if reasonably
requested, designated and authorized representatives of the
Government of the United States charged with investigating
whether Compact funds, or any other assistance authorized
under this Compact, as amended, have, or are being, used
for purposes other than those set forth in this Compact, as
amended, or its subsidiary agreements. In carrying out this
investigative authority, such United States Government
representatives may request that the Government of the Fed-
erated States of Micronesia subpoena documents and
records and compel testimony in accordance with the laws
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and Constitution of the Federated States of Micronesia.
Such assistance by the Government of the Federated States
of Micronesia to the Government of the United States shall
not be unreasonably withheld. The obligation of the Govern-
ment 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 treat-
ment for articles imported from the Federated States of Mi-
cronesia which shall apply during the period of effectiveness
of this title:
(a) Unless otherwise excluded, articles imported
from the Federated States of Micronesia, subject to the
limitations imposed under section 503(b) of title V of
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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 aggregated quantity
of tuna in airtight containers that is dutiable under
rate column numbered 1 of such heading 1604.14.22
for that calendar year.
(c) The duty-free treatment provided under sub-
section (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 included
with respect to an eligible article which is a product
of the Federated States of Micronesia, an amount not
to exceed 15 percent of the appraised value of the arti-
cle at the time it is entered that is attributable to
such United States cost or value may be applied for
duty assessment purposes toward determining the per-
centage 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 Micro-
nesia which are not exempt from duty under subsections
(a), (b), (c), and (d) of section 242 shall be subject to the
rates of duty set forth in column numbered 1-general of the
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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 August
18, 2001, to those governments listed in Article 26 of
PICTA, as of the date the Compact, as amended, is signed.
(c) Prior to entering into consultations on, or con-
cluding, a free trade agreement with governments not listed
in Article 26 of PICTA, the Federated States of Micronesia
shall consult with the United States regarding whether or
how subsection (a) of section 244 shall be applied.
Article V
Finance and Taxation
Section 251
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The currency of the United States is the official circu-
lating legal tender of the Federated States of Micronesia.
Should the Government of the Federated States of Micro-
nesia act to institute another currency, the terms of an ap-
propriate currency transitional period shall be as agreed
with the Government of the United States.
Section 252
The Government of the Federated States of Micronesia
may, with respect to United States persons, tax income de-
rived from sources within its respective jurisdiction, prop-
erty situated therein, including transfers of such property
by gift or at death, and products consumed therein, in such
manner as the Government of the Federated States of Micro-
nesia deems appropriate. The determination of the source
of any income, or the situs of any property, shall for pur-
poses of this Compact be made according to the United
States Internal Revenue Code.
Section 253
A citizen of the Federated States of Micronesia, domi-
ciled therein, shall be exempt from estate, gift, and genera-
tion-skipping transfer taxes imposed by the Government of
the United States, provided that such citizen of the Fed-
erated States of Micronesia is neither a citizen nor a resi-
dent of the United States.
Section 254
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(a) In determining any income tax imposed by the
Government of the Federated States of Micronesia, the Gov-
ernment 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 Fed-
erated States of Micronesia exercises such authority as pro-
vided in this subsection, any individual resident of the Fed-
erated States of Micronesia who is subject to tax by the Gov-
ernment 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 oth-
erwise be imposed by the Government of the United States
on such income. However, the relief from liability to the
United States Government referred to in the preceding sen-
tence means only relief in the form of the foreign tax credit
(or deduction in lieu thereof) available with respect to the
income taxes of a possession of the United States, and relief
in the form of the exclusion under section 911 of the Inter-
nal Revenue Code of 1986. For purposes of this section, the
term ‘‘resident of the Federated States of Micronesia’’ shall
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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 Micro-
nesia subjects income to taxation substantially similar to
that imposed by the Trust Territory Code in effect on Janu-
ary 1, 1980, such Government shall be deemed to have exer-
cised 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.
(b) This authority and responsibility includes:
(1) the obligation to defend the Federated States
of Micronesia and its people from attack or threats
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thereof as the United States and its citizens are de-
fended;
(2) the option to foreclose access to or use of the
Federated States of Micronesia by military personnel
or for the military purposes of any third country;
and
(3) the option to establish and use military areas
and facilities in the Federated States of Micronesia,
subject to the terms of the separate agreements re-
ferred 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
(a) The Government of the Federated States of Micro-
nesia shall refrain from actions that the Government of the
United States determines, after appropriate consultation
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with that Government, to be incompatible with its authority
and responsibility for security and defense matters in or
relating to the Federated States of Micronesia.
(b) The consultations referred to in this section shall
be conducted expeditiously at senior levels of the two Gov-
ernments, and the subsequent determination by the Govern-
ment of the United States referred to in this section shall
be made only at senior interagency levels of the Government
of the United States.
(c) The Government of the Federated States of Micro-
nesia shall be afforded, on an expeditious basis, an oppor-
tunity 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:
(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 radio-
active, toxic chemical or biological materials in an
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amount or manner which would be hazardous to pub-
lic health or safety.
(b) Unless otherwise agreed, other than for transit or
overflight purposes or during time of a national emergency
declared by the President of the United States, a state of
war declared by the Congress of the United States or as
necessary to defend against an actual or impending armed
attack on the United States, the Federated States of Micro-
nesia or the Republic of the Marshall Islands, the Govern-
ment of the United States shall not store in the Federated
States of Micronesia or the Republic of the Marshall Islands
any toxic chemical weapon, nor any radioactive materials
nor any toxic chemical materials intended for weapons use.
(c) Radioactive, toxic chemical, or biological materials
not intended for weapons use shall not be affected by section
314(b).
(d) No material or substance referred to in this section
shall be stored in the Federated States of Micronesia except
in an amount and manner which would not be hazardous
to public health or safety. In determining what shall be an
amount or manner which would be hazardous to public
health or safety under this section, the Government of the
United States shall comply with any applicable mutual
agreement, international guidelines accepted by the Govern-
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ment of the United States, and the laws of the United States
and their implementing regulations.
(e) Any exercise of the exemption authority set forth
in section 161(e) shall have no effect on the obligations of
the Government of the United States under this section or
on the application of this subsection.
(f) The provisions of this section shall apply in the
areas in which the Government of the Federated States of
Micronesia exercises jurisdiction over the living resources
of the seabed, subsoil or water column adjacent to its coasts.
Section 315
The Government of the United States may invite mem-
bers of the armed forces of other countries to use military
areas and facilities in the Federated States of Micronesia,
in conjunction with and under the control of United States
Armed Forces. Use by units of the armed forces of other
countries of such military areas and facilities, other than
for transit and overflight purposes, shall be subject to con-
sultation with and, in the case of major units, approval
of the Government of the Federated States of Micronesia.
Section 316
The authority and responsibility of the Government of
the United States under this Title may not be transferred
or otherwise assigned.
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imum area necessary to accomplish the required security
and defense purpose, of requesting only the minimum inter-
est 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 Fed-
erated States of Micronesia at least to the extent necessary
for the exercise of its authority and responsibility under
this Title.
Section 323
The military operating rights of the Government of the
United States and the legal status and contractual arrange-
ments of the United States Armed Forces, their members,
and associated civilians, while present in the Federated
States of Micronesia are set forth in separate agreements,
which shall remain in effect in accordance with the terms
of such agreements.
Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended, and
its related agreements, the Government of the United States,
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exclusively, has assumed and enjoys, as to the Federated
States of Micronesia, all obligations, responsibilities, rights
and benefits of:
(a) Any defense treaty or other international security
agreement applied by the Government of the United States
as Administering Authority of the Trust Territory of the
Pacific Islands as of November 2, 1986.
(b) Any defense treaty or other international security
agreement to which the Government of the United States
is or may become a party which it determines to be applica-
ble 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 Government
of the Federated States of Micronesia.
Article IV
Service in Armed Forces of the United States
Section 341
Any person entitled to the privileges set forth in Sec-
tion 141 (with the exception of any person described in sec-
tion 141(a)(5) who is not a citizen of the Federated States
of Micronesia) shall be eligible to volunteer for service in
the Armed Forces of the United States, but shall not be sub-
ject to involuntary induction into military service of the
United States as long as such person has resided in the
United States for a period of less than one year, provided
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that no time shall count towards this one year while a per-
son 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 pursuant
to 14 U.S.C. 195.
(b) The United States Merchant Marine Academy pur-
suant to 46 U.S.C. 1295(b)(6), provided that the provisions
of 46 U.S.C. 1295b(b)(6)(C) shall not apply to the enroll-
ment of students pursuant to section 342(b) of this Com-
pact, as amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia shall con-
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tinue to maintain a Joint Committee empowered to con-
sider disputes arising under the implementation of this
Title and its related agreements.
(b) The membership of the Joint Committee shall com-
prise selected senior officials of the two Governments. The
senior United States military commander in the Pacific
area shall be the senior United States member of the Joint
Committee. For the meetings of the Joint Committee, each
of the two Governments may designate additional or alter-
nate 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 Government
of the United States. The Joint Committee also shall meet
promptly upon request of either of its members. The Joint
Committee shall follow such procedures, including the estab-
lishment of functional subcommittees, as the members may
from time to time agree. Upon notification by the Govern-
ment of the United States, the Joint Committee of the
United States and the Federated States of Micronesia shall
meet promptly in a combined session with the Joint Com-
mittee established and maintained by the Government of
the United States and the Republic of the Marshall Islands
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to consider matters within the jurisdiction of the two Joint
Committees.
(d) Unresolved issues in the Joint Committee shall be
referred to the Governments for resolution, and the Govern-
ment of the Federated States of Micronesia shall be afforded,
on an expeditious basis, an opportunity to raise its con-
cerns with the United States Secretary of Defense person-
ally regarding any unresolved issue which threatens its con-
tinued association with the Government of the United
States.
Section 352
In the exercise of its authority and responsibility
under Title Three, the Government of the United States
shall accord due respect to the authority and responsibility
of the Government of the Federated States of Micronesia
under Titles One, Two and Four and to the responsibility
of the Government of the Federated States of Micronesia to
assure the well-being of its people.
Section 353
(a) The Government of the United States shall not in-
clude the Government of the Federated States of Micronesia
as a named party to a formal declaration of war, without
that Government’s consent.
(b) Absent such consent, this Compact, as amended, is
without prejudice, on the ground of belligerence or the exist-
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ence of a state of war, to any claims for damages which
are advanced by the citizens, nationals or Government of
the Federated States of Micronesia, which arise out of
armed conflict subsequent to November 3, 1986, and which
are:
(1) petitions to the Government of the United
States for redress; or
(2) claims in any manner against the 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 Gov-
ernment of the Federated States of Micronesia are jointly
committed to continue their security and defense relations,
as set forth in this Title. Accordingly, it is the intention
of the two countries that the provisions of this Title shall
remain binding as long as this Compact, as amended, re-
mains 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 termi-
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nation shall be considered to be termination of the entire
Compact, in which case the provisions of section 442 and
452 (in the case of termination by the Government of the
United States) or sections 443 and 453 (in the case of ter-
mination by the Government of the Federated States of Mi-
cronesia), with the exception of paragraph (3) of subsection
(a) of section 452 or paragraph (3) of subsection (a) of sec-
tion 453, as the case may be, shall apply.
(b) The Government of the United States recognizes,
in view of the special relationship between the Government
of the United States and the Government of the Federated
States of Micronesia, and in view of the existence of the
separate agreement regarding mutual security concluded
with the Government of the Federated States of Micronesia
pursuant to sections 321 and 323, that, even if this Title
should terminate, any attack on the Federated States of Mi-
cronesia during the period in which such separate agree-
ment 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
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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 Gov-
ernment of the Federated States of Micronesia shall refrain
from actions which the Government of the United States
determines, after appropriate consultation with that Gov-
ernment, to be incompatible with its authority and respon-
sibility for security and defense matters in or relating to
the Federated States of Micronesia or the Republic of the
Marshall Islands.
TITLE FOUR
GENERAL PROVISIONS
Article I
Approval and Effective Date
Section 411
Pursuant to section 432 of the Compact and subject
to subsection (e) of section 461 of the Compact, as amended,
the Compact, as amended, shall come into effect upon mu-
tual agreement between the Government of the United
States and the Government of the Federated States of Micro-
nesia subsequent to completion of the following:
(a) Approval by the Government of the Federated
States of Micronesia in accordance with its constitu-
tional processes.
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standing lists of the parties to the dispute within 5
days after such failure.
(b) Unless otherwise provided in this Compact,
as amended, or its related agreements, the Arbitration
Board shall have jurisdiction to hear and render its
final determination on all disputes arising exclusively
under Articles I, II, III, IV and V of Title One, Title
Two, Title Four, and their related agreements.
(c) Each member of the Arbitration Board shall
have one vote. Each decision of the Arbitration Board
shall be reached by majority vote.
(d) In determining any legal issue, the Arbitra-
tion Board may have reference to international law
and, in such reference, shall apply as guidelines the
provisions set forth in Article 38 of the Statute of the
International Court of Justice.
(e) The Arbitration Board shall adopt such rules
for its proceedings as it may deem appropriate and
necessary, but such rules shall not contravene the pro-
visions of this Compact, as amended. Unless the par-
ties provide otherwise by mutual agreement, the Arbi-
tration Board shall endeavor to render its decision
within 30 days after the conclusion of arguments. The
Arbitration Board shall make findings of fact and
conclusions of law and its members may issue dis-
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senting or individual opinions. Except as may be oth-
erwise decided by the Arbitration Board, one-half of
all costs of the arbitration shall be borne by the Gov-
ernment of the United States and the remainder shall
be borne by the Government of the Federated States
of Micronesia.
Article III
Amendment
Section 431
The provisions of this Compact, as amended, may be
further amended by mutual agreement of the Government
of the United States and the Government of the Federated
States of Micronesia, in accordance with their respective
constitutional processes.
Article IV
Termination
Section 441
This Compact, as amended, may be terminated by mu-
tual agreement of the Government of the Federated States
of Micronesia and the Government of the United States, in
accordance with their respective constitutional processes.
Such mutual termination of this Compact, as amended,
shall be without prejudice to the continued application of
section 451 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
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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 termi-
nation 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 no-
tice. The time specified in the notice of termination may
be extended. Such termination of this Compact, as amended,
shall be without prejudice to the continued application of
section 452 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
Section 443
This Compact, as amended, shall be terminated by the
Government of the Federated States of Micronesia, pursuant
to its constitutional processes, subject to section 453 if the
people represented by that Government vote in a plebiscite
to terminate the Compact, as amended, or by another proc-
ess permitted by the FSM constitution and mutually agreed
between the Governments of the United States and the Fed-
erated States of Micronesia. The Government of the Fed-
erated States of Micronesia shall notify the Government of
the United States of its intention to call such a plebiscite,
or to pursue another mutually agreed and constitutional
process, which plebiscite or process shall take place not ear-
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lier than three months after delivery of such notice. The
plebiscite or other process shall be administered by the Gov-
ernment of the Federated States of Micronesia in accord-
ance with its constitutional and legislative processes. If a
majority of the valid ballots cast in the plebiscite or other
process favors termination, the Government of the Federated
States of Micronesia shall, upon certification of the results
of the plebiscite or other process, give notice of termination
to the Government of the United States, such termination
to be effective on the date specified in such notice but not
earlier than three months following the date of delivery of
such notice. The time specified in the notice of termination
may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441,
economic and other assistance by the Government of the
United States shall continue only if and as mutually agreed
by the Governments of the United States and the Federated
States of Micronesia, and in accordance with the parties’
respective constitutional processes.
(b) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections (b) and (c) of section 354 of this Compact,
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as amended, and the separate agreement entered into con-
sistent with those subsections, if termination occurs pursu-
ant to section 441 prior to the twentieth anniversary of the
effective date of this Compact, as amended, the United
States shall continue to make contributions to the Trust
Fund described in section 215 of this Compact, as amended.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia described in
subsection (b) of this section, if termination occurs pursu-
ant to section 441 following the twentieth anniversary of
the effective date of this Compact, as amended, the Fed-
erated States of Micronesia shall be entitled to receive pro-
ceeds from the Trust Fund described in section 215 of this
Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement governing the
distribution of such proceeds.
Section 452
(a) Should termination occur pursuant to section 442
prior to the twentieth anniversary of the effective date of
this Compact, as amended, the following provisions of this
Compact, as amended, shall remain in full force and effect
until the twentieth anniversary of the effective date of this
Compact, as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and
177 of Title One;
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(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Should termination occur pursuant to section 442
before the twentieth anniversary of the effective date of the
Compact, as amended:
(1) Except as provided in paragraph (2) of this
subsection and subsection (c) of this section, economic
and other assistance by the United States shall con-
tinue only if and as mutually agreed by the Govern-
ments of the United States and the Federated States
of Micronesia.
(2) In view of the special relationship of the
United States and the Federated States of Micronesia,
as reflected in subsections (b) and (c) of section 354
of this Compact, as amended, and the separate agree-
ment regarding mutual security, and the Trust Fund
Agreement, the United States shall continue to make
contributions to the Trust Fund described in section
215 of this Compact, as amended, in the manner de-
scribed in the Trust Fund Agreement.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia, as reflected
in subsections 354(b) and (c) of this Compact, as amended,
and the separate agreement regarding mutual security, and
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the Trust Fund Agreement, if termination occurs pursuant
to section 442 following the twentieth anniversary of the
effective date of this Compact, as amended, the Federated
States of Micronesia shall continue to be eligible to receive
proceeds from the Trust Fund described in section 215 of
this Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 453
(a) Should termination occur pursuant to section 443
prior to the twentieth anniversary of the effective date of
this Compact, as amended, the following provisions of this
Compact, as amended, shall remain in full force and effect
until the twentieth anniversary of the effective date of this
Compact, as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and
177 of Title One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Upon receipt of notice of termination pursuant to
section 443, the Government of the United States and the
Government of the Federated States of Micronesia shall
promptly consult with regard to their future relationship.
Except as provided in subsection (c) and (d) of this section,
these consultations shall determine the level of economic and
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this Compact, as amended, in the manner described in those
provisions and the Trust Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact,
as amended:
(a) The Government of the United States reaf-
firms its continuing interest in promoting the eco-
nomic advancement and budgetary self-reliance of the
people of the Federated States of Micronesia.
(b) The separate agreements referred to in Article
II of Title Three shall remain in effect in accordance
with their terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only,
and without prejudice to the views of the Government of
the United States or the Government of the Federated States
of Micronesia as to the nature and extent of the jurisdiction
of either of them under international law, the following
terms shall have the following meanings:
(a) ‘‘Trust Territory of the Pacific Islands’’
means the area established in the Trusteeship Agree-
ment consisting of the former administrative districts
of Kosrae, Yap, Ponape, the Marshall Islands and
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Truk as described in Title One, Trust Territory Code,
section 1, in force on January 1, 1979. This term
does not include the area of Palau or the Northern
Mariana Islands.
(b) ‘‘Trusteeship Agreement’’ means the agree-
ment setting forth the terms of trusteeship for the
Trust Territory of the Pacific Islands, approved by
the Security Council of the United Nations April 2,
1947, and by the United States July 18, 1947, en-
tered into force July 18, 1947, 61 Stat. 3301, T.I.A.S.
1665, 8 U.N.T.S. 189.
(c) ‘‘The Federated States of Micronesia’’ and
‘‘the Republic of the Marshall Islands’’ are used in a
geographic sense and include the land and water
areas to the outer limits of the territorial sea and the
air space above such areas as now or hereafter recog-
nized by the Government of the United States.
(d) ‘‘Compact’’ means the Compact of Free Asso-
ciation Between the United States and the Federated
States of Micronesia and the Marshall Islands, that
was approved by the United States Congress in sec-
tion 201 of Public Law 99–239 (Jan. 14, 1986) and
went into effect with respect to the Federated States
of Micronesia on November 3, 1986.
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(e) ‘‘Compact, as amended’’ means the Compact
of Free Association Between the United States and
the Federated States of Micronesia, as amended. The
effective date of the Compact, as amended, shall be on
a date to be determined by the President of the United
States, and agreed to by the Government of the Fed-
erated States of Micronesia, following formal ap-
proval of the Compact, as amended, in accordance
with section 411 of this Compact, as amended.
(f) ‘‘Government of the Federated States of Mi-
cronesia’’ means the Government established and or-
ganized by the Constitution of the Federated States of
Micronesia including all the political subdivisions
and entities comprising that Government.
(g) ‘‘Government of the Republic of the Marshall
Islands’’ means the Government established and orga-
nized by the Constitution of the Republic of the Mar-
shall Islands including all the political subdivisions
and entities comprising that Government.
(h) The following terms shall be defined con-
sistent with the 1998 Edition of the Radio Regula-
tions of the International Telecommunications Union
as follows:
(1) ‘‘Radiocommunication’’ means tele-
communication by means of radio waves.
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(2) ‘‘Station’’ means one or more transmit-
ters or receivers or a combination of transmitters
and receivers, including the accessory equipment,
necessary at one location for carrying on a
radiocommunication service, or the radio astron-
omy service.
(3) 
‘‘Broadcasting 
Service’’ 
means 
a
radiocommunication service in which the trans-
missions are intended for direct reception by the
general public. This service may include sound
transmissions, television transmissions or other
types of transmission.
(4) ‘‘Broadcasting Station’’ means a station
in the broadcasting service.
(5) ‘‘Assignment (of a radio frequency or
radio frequency channel)’’ means an authoriza-
tion given by an administration for a radio sta-
tion to use a radio frequency or radio frequency
channel under specified conditions.
(6) ‘‘Telecommunication’’ means any trans-
mission, emission or reception of signs, signals,
writings, images and sounds or intelligence of
any nature by wire, radio, optical or other elec-
tromagnetic systems.
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(i) ‘‘Military Areas and Facilities’’ means those
areas and facilities in the Federated States of Micro-
nesia reserved or acquired by the Government of the
Federated States of Micronesia for use by the Govern-
ment of the United States, as set forth in the separate
agreements referred to in section 321.
(j) ‘‘Tariff Schedules of the United States’’
means the Tariff Schedules of the United States as
amended from time to time and as promulgated pur-
suant to United States law and includes the Tariff
Schedules of the United States Annotated (TSUSA),
as amended.
(k) ‘‘Vienna Convention on Diplomatic Rela-
tions’’ means the Vienna Convention on Diplomatic
Relations, done April 18, 1961, 23 U.S.T. 3227,
T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
(a) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia previously
have concluded agreements pursuant to the Compact, which
shall remain in effect and shall survive in accordance with
their terms, as follows:
(1) Agreement Concluded Pursuant to Section
234 of the Compact;
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(2) Agreement Between the Government of the
United States and the Government of the Federated
States of Micronesia Regarding Friendship, Coopera-
tion and Mutual Security Concluded Pursuant to
Sections 321 and 323 of the Compact of Free Associa-
tion; and
(3) Agreement between the Government of the
United States of America and the Federated States of
Micronesia Regarding Aspects of the Marine Sov-
ereignty and Jurisdiction of the Federated States of
Micronesia.
(b) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia shall con-
clude prior to the date of submission of this Compact, as
amended, to the legislatures of the two countries, the fol-
lowing related agreements which shall come into effect on
the effective date of this Compact, as amended, and shall
survive in accordance with their terms, as follows:
(1) Federal Programs and Services Agreement
Between the Government of the United States of
America and the Government of the Federated States
of Micronesia Concluded Pursuant to Article III of
Title One, Article II of Title Two (including Section
222), and Section 231 of the Compact of Free Asso-
ciation, as amended which includes:
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(i) Postal Services and Related Programs;
(ii) Weather Services and Related Pro-
grams;
(iii) Civil Aviation Safety Service and Re-
lated Programs;
(iv) Civil Aviation Economic Services and
Related Programs;
(v) United States Disaster Preparedness
and Response Services and Related Programs;
(vi) Federal Deposit Insurance Corporation
Services and Related Programs; and
(vii) Telecommunications Services and Re-
lated Programs.
(2) Agreement Between the Government of the
United States of America and the Government of the
Federated States of Micronesia on Extradition, Mu-
tual Assistance in Law Enforcement Matters and
Penal Sanctions Concluded Pursuant to Section
175(a) of the Compact of Free Association, as amend-
ed;
(3) Agreement Between the Government of the
United States of America and the Government of the
Federated States of Micronesia on Labor Recruitment
Concluded Pursuant to Section 175(b) of the Compact
of Free Association, as amended;
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(4) Agreement Concerning Procedures for the Im-
plementation of United States Economic Assistance
Provided in the Compact of Free Association, as
Amended, of Free Association Between the Govern-
ment of the United States of America and Govern-
ment of the Federated States of Micronesia;
(5) Agreement Between the Government of the
United States of America and the Government of the
Federated States of Micronesia Implementing Section
215 and Section 216 of the Compact, as Amended,
Regarding a Trust Fund;
(6) Agreement Regarding the Military Use and
Operating Rights of the Government of the United
States in the Federated States of Micronesia Con-
cluded Pursuant to Sections 211(b), 321 and 323 of
the Compact of Free Association, as Amended; and
the
(7) Status of Forces Agreement Between the Gov-
ernment of the United States of America and the Gov-
ernment of the Federated States of Micronesia Con-
cluded Pursuant to Section 323 of the Compact of
Free Association, as Amended.
Section 463
(a) Except as set forth in subsection (b) of this section,
any reference in this Compact, as amended, to a provision
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of the United States Code or the Statutes at Large of the
United States constitutes the incorporation of the language
of such provision into this Compact, as amended, as such
provision was in force on the effective date of this Compact,
as amended.
(b) Any reference in Articles IV and Article VI of Title
One and Sections 174, 175, 178 and 342 to a provision
of the United States Code or the Statutes at Large of the
United States or to the Privacy Act, the Freedom of Infor-
mation Act, the Administrative Procedure Act or the Immi-
gration and Nationality Act constitutes the incorporation
of the language of such provision into this Compact, as
amended, as such provision was in force on the effective
date of this Compact, as amended, or as it may be amended
thereafter on a non-discriminatory basis according to the
constitutional processes of the United States.
Article VII
Concluding Provisions
Section 471
Both the Government of the United States and the Gov-
ernment of the Federated States of Micronesia shall take
all necessary steps, of a general or particular character, to
ensure, no later than the entry into force date of this Com-
pact, as amended, the conformity of its laws, regulations
and administrative procedures with the provisions of this
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Compact, as amended, or in the case of subsection (d) of
section 141, as soon as reasonably possible thereafter.
Section 472
This Compact, as amended, may be accepted, by signa-
ture or otherwise, by the Government of the United States
and the Government of the Federated States of Micronesia.
IN WITNESS WHEREOF, the undersigned, duly au-
thorized, have signed this Compact of Free Association, as
amended, which shall enter into force upon the exchange
of diplomatic notes by which the Government of the United
States of America and the Government of the Federated
States of Micronesia inform each other about the fulfillment
of their respective requirements for entry into force.
DONE at Pohnpei, Federated States of Micronesia, in
duplicate, this fourteenth (14) day of May, 2003, each text
being equally authentic.
Signed (May 14, 2003)
Signed (May 14, 2003)
For the Government of the
For the Government of the
United States of America:
Federated States of
Micronesia:
(b) COMPACT OF FREE ASSOCIATION, AS AMENDED,
BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF
THE MARSHALL ISLANDS.—The Compact of Free Associa-
tion, as amended, between the Government of the United
States of America and the Government of the Republic of
the Marshall Islands is as follows:
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PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE
REPUBLIC OF THE MARSHALL ISLANDS
Affirming that their Governments and their relation-
ship as Governments are founded upon respect for human
rights and fundamental freedoms for all, and that the people
of the Republic of the Marshall Islands have the right to
enjoy self-government; and
Affirming the common interests of the United States
of America and the Republic of the Marshall Islands in 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 budg-
etary self-reliance of the Republic of the Marshall Islands;
and
Recognizing that their relationship until the entry into
force on October 21, 1986 of the Compact was based upon
the International Trusteeship System of the United Nations
Charter, and in particular Article 76 of the Charter; and
that pursuant to Article 76 of the Charter, the people of
the Republic of the Marshall Islands have progressively de-
veloped their institutions of self-government, and that in
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the exercise of their sovereign right to self-determination
they, through their freely-expressed wishes, have adopted a
Constitution appropriate to their particular circumstances;
and
Recognizing that the Compact reflected their common
desire to terminate the Trusteeship and establish a govern-
ment-to-government relationship which was in accordance
with the new political status based on the freely expressed
wishes of the people of the Republic of the Marshall Islands
and appropriate to their particular circumstances; and
Recognizing that the people of the Republic of the Mar-
shall Islands have and retain their sovereignty and their
sovereign right to self-determination and the inherent right
to adopt and amend their own Constitution and form of
government and that the approval of the entry of the Gov-
ernment of the Republic of the Marshall Islands into the
Compact by the people of the Republic of the Marshall Is-
lands constituted an exercise of their sovereign right to self-
determination; and
Recognizing the common desire of the people of the
United States and the people of the Republic of the Marshall
Islands to maintain their close government-to-government
relationship, the United States and the Republic of the Mar-
shall Islands:
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NOW, THEREFORE, MUTUALLY AGREE to con-
tinue and strengthen their relationship of free association
by amending the Compact, which continues to provide a
full measure of self-government for the people of the Repub-
lic of the Marshall Islands; and
FURTHER AGREE that the relationship of free asso-
ciation derives from and is as set forth in this Compact,
as amended, by the Governments of the United States and
the Republic of the Marshall Islands; and that, during such
relationship of free association, the respective rights and re-
sponsibilities of the Government of the United States and
the Government of the Republic of the Marshall Islands in
regard to this relationship of free association derive from
and are as set forth in this Compact, as amended.
TITLE ONE
GOVERNMENTAL RELATIONS
Article I
Self-Government
Section 111
The people of the Republic of the Marshall Islands, act-
ing through the Government established under their Con-
stitution, are self-governing.
Article II
Foreign Affairs
Section 121
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(a) The Government of the Republic of the Marshall
Islands has the capacity to conduct foreign affairs and shall
do so in its own name and right, except as otherwise pro-
vided in this Compact, as amended.
(b) The foreign affairs capacity of the Government of
the Republic of the Marshall Islands includes:
(1) the conduct of foreign affairs relating to law
of the sea and marine resources matters, including the
harvesting, conservation, exploration or exploitation
of living and non-living resources from the sea, seabed
or subsoil to the full extent recognized under inter-
national 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 intergovern-
mental organizations, including any matters specially
benefiting its individual citizens.
(c) The Government of the United States recognizes
that the Government of the Republic of the Marshall Islands
has the capacity to enter into, in its own name and right,
treaties and other international agreements with govern-
ments and regional and international organizations.
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(d) In the conduct of its foreign affairs, the Govern-
ment of the Republic of the Marshall Islands confirms that
it shall act in accordance with principles of international
law and shall settle its international disputes by peaceful
means.
Section 122
The Government of the United States shall support ap-
plications by the Government of the Republic of the Mar-
shall Islands 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 Republic of the Marshall Islands
shall consult, in the conduct of its foreign affairs, with the
Government of the United States.
(b) In recognition of the foreign affairs capacity of the
Government of the Republic of the Marshall Islands, the
Government of the United States, in the conduct of its for-
eign affairs, shall consult with the Government of the Re-
public of the Marshall Islands on matters that the Govern-
ment of the United States regards as relating to or affecting
the Government of the Republic of the Marshall Islands.
Section 124
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The Government of the United States may assist or
act on behalf of the Government of the Republic of the Mar-
shall Islands in the area of foreign affairs as may be re-
quested and mutually agreed from time to time. The Gov-
ernment of the United States shall not be responsible to
third parties for the actions of the Government of the Re-
public of the Marshall Islands 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 re-
sponsible for nor obligated by any actions taken by the Gov-
ernment of the Republic of the Marshall Islands in the area
of foreign affairs, except as may from time to time be ex-
pressly agreed.
Section 126
At the request of the Government of the Republic of
the Marshall Islands and subject to the consent of the receiv-
ing state, the Government of the United States shall extend
consular assistance on the same basis as for citizens of the
United States to citizens of the Republic of the Marshall
Islands for travel outside the Republic of the Marshall Is-
lands, the United States and its territories and possessions.
Section 127
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Except as otherwise provided in this Compact, as
amended, or its related agreements, all obligations, respon-
sibilities, rights and benefits of the Government of the
United States as Administering Authority which resulted
from the application pursuant to the Trusteeship Agreement
of any treaty or other international agreement to the Trust
Territory of the Pacific Islands on October 20, 1986, are,
as of that date, no longer assumed and enjoyed by the Gov-
ernment of the United States.
Article III
Communications
Section 131
(a) The Government of the Republic of the Marshall
Islands has full authority and responsibility to regulate its
domestic and foreign communications, and the Government
of the United States shall provide communications assist-
ance as mutually agreed.
(b) The Government of the Republic of the Marshall
Islands has elected to undertake all functions previously
performed by the Government of the United States with re-
spect to domestic and foreign communications, except for
those functions set forth in a separate agreement entered
into pursuant to this section of the Compact, as amended.
Section 132
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The Government of the Republic of the Marshall Is-
lands shall permit the Government of the United States to
operate telecommunications services in the Republic of the
Marshall Islands to the extent necessary to fulfill the obliga-
tions of the Government of the United States under this
Compact, as amended, in accordance with the terms of sepa-
rate agreements entered into pursuant to this section of the
Compact, as amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relation-
ship that exists between the United States and the Republic
of the Marshall Islands, under the Compact, as amended,
any person in the following categories may be admitted to
lawfully engage in occupations, and establish residence as
a nonimmigrant in the United States and its territories
and possessions (the ‘‘United States’’) without regard to
paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the Im-
migration and Nationality Act, as amended, 8 U.S.C.
1182(a)(5) or (7)(B)(i)(II):
(1) a person who, on October 21, 1986, was a
citizen of the Trust Territory of the Pacific Islands,
as defined in Title 53 of the Trust Territory Code in
force on January 1, 1979, and has become and re-
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mains a citizen of the Republic of the Marshall Is-
lands;
(2) a person who acquires the citizenship of the
Republic of the Marshall Islands at birth, on or after
the effective date of the Constitution of the Republic
of the Marshall Islands;
(3) an immediate relative of a person referred to
in paragraphs (1) or (2) of this section, provided that
such immediate relative is a naturalized citizen of the
Republic of the Marshall Islands who has been an ac-
tual resident there for not less than five years after
attaining such naturalization and who holds a certifi-
cate of actual residence, and further provided, that, in
the case of a spouse, such spouse has been married to
the person referred to in paragraph (1) or (2) of this
section for at least five years, and further provided,
that the Government of the United States is satisfied
that such naturalized citizen meets the requirement of
subsection (b) of section 104 of Public Law 99–239 as
it was in effect on the day prior to the effective date
of this Compact, as amended;
(4) a naturalized citizen of the Republic of the
Marshall Islands who was an actual resident there for
not less than five years after attaining such natu-
ralization and who satisfied these requirements as of
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April 30, 2003, who continues to be an actual resi-
dent and holds a certificate of actual residence, and
whose name is included in a list furnished by the
Government of the Republic of the Marshall Islands to
the Government of the United States no later than the
effective date of the Compact, as amended, in form
and content acceptable to the Government of the
United States, provided, that the Government of the
United States is satisfied that such naturalized cit-
izen meets the requirement of subsection (b) of section
104 of Public Law 99–239 as it was in effect on the
day prior to the effective date of this Compact, as
amended; or
(5) an immediate relative of a citizen of the Re-
public of the Marshall Islands, regardless of the imme-
diate relative’s country of citizenship or period of res-
idence in the Republic of the Marshall Islands, if the
citizen of the Republic of the Marshall Islands is serv-
ing 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 sub-
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section shall apply to any person who is or was an appli-
cant for admission to the United States on or after March
1, 2003, including any applicant for admission in removal
proceedings (including appellate proceedings) on or after
March 1, 2003, regardless of the date such proceedings were
commenced. This subsection shall have no effect on the abil-
ity 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 vio-
lated 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 Repub-
lic of the Marshall Islands, or has been or is issued a Repub-
lic of the Marshall Islands passport pursuant to any invest-
ment, 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 unex-
pired Republic of the Marshall Islands passport with unex-
pired 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-
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mentation establishing identity and employment authoriza-
tion under section 274A(b)(1)(B) of the Immigration and
Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The
Government of the United States will take reasonable and
appropriate steps to implement and publicize this provi-
sion, and the Government of the Republic of the Marshall
Islands will also take reasonable and appropriate steps to
publicize this provision.
(e) For purposes of the Compact and the Compact, as
amended:
(1) the term ‘‘residence’’ with respect to a person
means the person’s principal, actual dwelling place in
fact, without regard to intent, as provided in section
101(a)(33) of the Immigration and Nationality Act,
as amended, 8 U.S.C. 1101(a)(33), and variations of
the term ‘‘residence,’’ including ‘‘resident’’ and ‘‘re-
side,’’ shall be similarly construed;
(2) the term ‘‘actual residence’’ means physical
presence in the Republic of the Marshall Islands 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 Republic of the Marshall Is-
lands stating that the citizen has complied with the
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actual residence requirement of section 141(a)(3) or
(4);
(4) the term ‘‘nonimmigrant’’ means an alien
who is not an ‘‘immigrant’’ as defined in section
101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and
(5) the term ‘‘immediate relative’’ means a
spouse, or unmarried son or unmarried daughter less
than 21 years of age.
(f) The Immigration and Nationality Act, as amended,
shall apply to any person admitted or seeking admission
to the United States (other than a United States possession
or territory where such Act does not apply) under the Com-
pact or the Compact, as amended, and nothing in the Com-
pact or the Compact, as amended, shall be construed to
limit, preclude, or modify the applicability of, with respect
to such person:
(1) any ground of inadmissibility or deport-
ability under such Act (except sections 212(a)(5) and
212(a)(7)(B)(i)(II) of such Act, as provided in sub-
section (a) of this section), and any defense thereto,
provided that, section 237(a)(5) of such Act shall be
construed and applied as if it reads as follows: ‘‘any
alien who has been admitted under the Compact, or
the Compact, as amended, who cannot show that he
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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 Gov-
ernment of the United States may by regulations pre-
scribe;
(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 section
of the Compact, as amended, any requirement under
section 274A, including but not limited to section
274A(b)(1)(E);
(4) section 643 of the Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996, Pub-
lic Law 104–208, and actions taken pursuant to sec-
tion 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 Com-
pact, as amended, may also be exercised by the Government
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of a territory or possession of the United States where the
Immigration and Nationality Act, as amended, does not
apply, to the extent such exercise of authority is lawful
under a statute or regulation of such territory or possession
that is authorized by the laws of the United States.
(h) Subsection (a) of this section does not confer on
a citizen of the Republic of the Marshall Islands the right
to establish the residence necessary for naturalization under
the Immigration and Nationality Act, as amended, or to
petition for benefits for alien relatives under that Act. Sub-
section (a) of this section, however, shall not prevent a cit-
izen of the Republic of the Marshall Islands from otherwise
acquiring such rights or lawful permanent resident alien
status in the United States.
Section 142
(a) Any citizen or national of the United States may
be admitted to lawfully engage in occupations, and reside
in the Republic of the Marshall Islands, subject to the rights
of the Government of the Republic of the Marshall Islands
to deny entry to or deport any such citizen or national as
an undesirable alien. Any determination of inadmissibility
or deportability shall be based on reasonable statutory
grounds and shall be subject to appropriate administrative
and judicial review within the Republic of the Marshall Is-
lands. If a citizen or national of the United States is a
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spouse of a citizen of the Republic of the Marshall Islands,
the Government of the Republic of the Marshall Islands
shall allow the United States citizen spouse to establish resi-
dence. Should the Republic of the Marshall Islands citizen
spouse predecease the United States citizen spouse during
the marriage, the Government of the Republic of the Mar-
shall Islands shall allow the United States citizen spouse
to continue to reside in the Republic of the Marshall Is-
lands.
(b) In enacting any laws or imposing any require-
ments with respect to citizens and nationals of the United
States entering the Republic of the Marshall Islands under
subsection (a) of this section, including any grounds of in-
admissibility or deportability, the Government of the Re-
public of the Marshall Islands shall accord to such citizens
and nationals of the United States treatment no less favor-
able than that accorded to citizens of other countries.
(c) Consistent with subsection (a) of this section, with
respect to citizens and nationals of the United States seek-
ing to engage in employment or invest in the Republic of
the Marshall Islands, the Government of the Republic of the
Marshall Islands shall adopt immigration-related proce-
dures no less favorable than those adopted by the Govern-
ment of the United States with respect to citizens of the
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Republic of the Marshall Islands seeking employment in the
United States.
Section 143
Any person who relinquishes, or otherwise loses, his
United States nationality or citizenship, or his Republic
of the Marshall Islands citizenship, shall be ineligible to re-
ceive the privileges set forth in sections 141 and 142. Any
such person may apply for admission to the United States
or the Republic of the Marshall Islands, as the case may
be, in accordance with any other applicable laws of the
United States or the Republic of the Marshall Islands relat-
ing to immigration of aliens from other countries. The laws
of the Republic of the Marshall Islands or the United States,
as the case may be, shall dictate the terms and conditions
of any such person’s stay.
Article V
Representation
Section 151
Relations between the Government of the United States
and the Government of the Republic of the Marshall Islands
shall be conducted in accordance with the Vienna Conven-
tion on Diplomatic Relations. In addition to diplomatic
missions and representation, the Governments may estab-
lish and maintain other offices and designate other rep-
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resentatives on terms and in locations as may be mutually
agreed.
Section 152
(a) Any citizen or national of the United States who,
without authority of the United States, acts as the agent
of the Government of the Republic of the Marshall Islands
with regard to matters specified in the provisions of the
Foreign Agents Registration Act of 1938, as amended (22
U.S.C. 611 et seq.), that apply with respect to an agent
of a foreign principal shall be subject to the requirements
of such Act. Failure to comply with such requirements shall
subject such citizen or national to the same penalties and
provisions of law as apply in the case of the failure of such
an agent of a foreign principal to comply with such require-
ments. For purposes of the Foreign Agents Registration Act
of 1938, the Republic of the Marshall Islands shall be con-
sidered to be a foreign country.
(b) Subsection (a) of this section shall not apply to
a citizen or national of the United States employed by the
Government of the Republic of the Marshall Islands with
respect to whom the Government of the Republic of the Mar-
shall Islands from time to time certifies to the Government
of the United States that such citizen or national is an em-
ployee of the Republic of the Marshall Islands whose prin-
cipal duties are other than those matters specified in the
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Foreign Agents Registration Act of 1938, as amended, that
apply with respect to an agent of a foreign principal. The
agency or officer of the United States receiving such certifi-
cations shall cause them to be filed with the Attorney Gen-
eral, who shall maintain a publicly available list of the per-
sons so certified.
Article VI
Environmental Protection
Section 161
The Governments of the United States and the Repub-
lic of the Marshall Islands declare that it is their policy
to promote efforts to prevent or eliminate damage to the
environment and biosphere and to enrich understanding of
the natural resources of the Republic of the Marshall Is-
lands. In order to carry out this policy, the Government
of the United States and the Government of the Republic
of the Marshall Islands agree to the following mutual and
reciprocal undertakings:
(a) The Government of the United States:
(1) shall, for its activities controlled by the
U.S. Army at Kwajalein Atoll and in the Mid-
Atoll Corridor and for U.S. Army Kwajalein
Atoll activities in the Republic of the Marshall
Islands, continue to apply the Environmental
Standards and Procedures for United States
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Army Kwajalein Atoll Activities in the Republic
of the Marshall Islands, unless and until those
Standards or Procedures are modified by mutual
agreement of the Governments of the United
States and the Republic of the Marshall Islands;
(2) shall apply the National Environmental
Policy Act of 1969, 83 Stat. 852, 42 U.S.C. 4321
et seq., to its activities under the Compact, as
amended, and its related agreements as if the
Republic of the Marshall Islands were the United
States;
(3) in the conduct of any activity not de-
scribed in section 161(a)(1) requiring the prepa-
ration of an Environmental Impact Statement
under section 161(a)(2), shall comply with
standards substantively similar to those required
by the following laws of the United States, tak-
ing into account the particular environment of
the Republic of the Marshall Islands; the Endan-
gered Species Act of 1973, as amended, 16
U.S.C. 1531 et seq.; the Clean Air Act, as
amended, 42 U.S.C. 7401 et seq.; the Clean
Water Act (Federal Water Pollution Control
Act), as amended, 33 U.S.C. 1251 et seq.; Title
I of the Marine Protection, Research and Sanc-
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tuaries 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 environ-
mental protection laws of the United States and
the Republic of the Marshall Islands as may be
agreed from time to time with the Government of
the Republic of the Marshall Islands;
(4) shall, prior to conducting any activity
not described in section 161(a)(1) requiring the
preparation of an Environmental Impact State-
ment under section 161(a)(2), develop, as agreed
with the Government of the Republic of the Mar-
shall Islands, written environmental standards
and procedures to implement the substantive
provisions of the laws made applicable to U.S.
Government activities in the Republic of the
Marshall Islands, pursuant to section 161(a)(3).
(b) The Government of the Republic of the Mar-
shall Islands shall continue to develop and implement
standards and procedures to protect its environment.
As a reciprocal obligation to the undertakings of the
Government of the United States under this Article,
the Republic of the Marshall Islands, taking into ac-
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count its particular environment, shall continue to
develop and implement standards for environmental
protection substantively similar to those required of
the Government of the United States by section
161(a)(3) prior to its conducting activities in the Re-
public of the Marshall Islands, substantively equiva-
lent to activities conducted there by the Government
of the United States and, as a further reciprocal obli-
gation, shall enforce those standards.
(c) Section 161(a), including any standard or
procedure applicable thereunder, and section 161(b)
may be modified or superseded in whole or in part
by agreement of the Government of the United States
and the Government of the Republic of the Marshall
Islands.
(d) In the event that an Environmental Impact
Statement is no longer required under the laws of the
United States for major Federal actions significantly
affecting the quality of the human environment, the
regulatory regime established under sections 161(a)(3)
and 161(a)(4) shall continue to apply to such activi-
ties of the Government of the United States until
amended by mutual agreement.
(e) The President of the United States may ex-
empt any of the activities of the Government of the
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by virtue of the Trusteeship Agreement ceased with respect
to the Marshall Islands on October 21, 1986, the date the
Compact went into effect.
Section 172
(a) Every citizen of the Republic of the Marshall Is-
lands who is not a resident of the United States shall enjoy
the rights and remedies under the laws of the United States
enjoyed by any non-resident alien.
(b) The Government of the Republic of the Marshall
Islands and every citizen of the Republic of the Marshall
Islands shall be considered to be a ‘‘person’’ within the
meaning of the Freedom of Information Act, 5 U.S.C. 552,
and of the judicial review provisions of the Administrative
Procedure Act, 5 U.S.C. 701–706, except that only the Gov-
ernment of the Republic of the Marshall Islands may seek
judicial review under the Administrative Procedure Act or
judicial enforcement under the Freedom of Information Act
when such judicial review or enforcement relates to the ac-
tivities of the Government of the United States governed by
sections 161 and 162.
Section 173
The Governments of the United States and the Repub-
lic of the Marshall Islands agree to adopt and enforce such
measures, consistent with this Compact, as amended, and
its related agreements, as may be necessary to protect the
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personnel, property, installations, services, programs and
official archives and documents maintained by the Govern-
ment of the United States in the Republic of the Marshall
Islands pursuant to this Compact, as amended, and its re-
lated agreements and by the Government of the Republic
of the Marshall Islands in the United States pursuant to
this Compact, Compact, as amended, and its related agree-
ments.
Section 174
Except as otherwise provided in this Compact, as
amended, and its related agreements:
(a) The Government of the Republic of the Mar-
shall Islands, and its agencies and officials, shall be
immune from the jurisdiction of the court of the
United States, and the Government of the United
States, and its agencies and officials, shall be immune
from the jurisdiction of the courts of the Republic of
the Marshall Islands.
(b) The Government of the United States accepts
responsibility for and shall pay:
(1) any unpaid money judgment rendered
by the High Court of the Trust Territory of the
Pacific Islands against the Government of the
United States with regard to any cause of action
arising as a result of acts or omissions of the
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Government of the Trust Territory of the Pacific
Islands or the Government of the United States
prior to October 21, 1986;
(2) any claim settled by the claimant and
the Government of the Trust Territory of the Pa-
cific Islands but not paid as of October 21, 1986;
and
(3) settlement of any administrative claim
or of any action before a court of the Trust Ter-
ritory of the Pacific Islands or the Government
of the United States, arising as a result of acts
or omissions of the Government of the Trust Ter-
ritory 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 effec-
tive date of the Compact shall be adjudicated in the
same manner as a claim adjudicated according to sec-
tion 174(d). In any claim against the Government of
the Trust Territory of the Pacific Islands, the Govern-
ment of the United States shall stand in the place of
the Government of the Trust Territory of the Pacific
Islands. A judgment on any claim referred to in sec-
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tion 174(b) or this subsection, not otherwise satisfied
by the Government of the United States, may be pre-
sented for certification to the United States Court of
Appeals for the Federal Circuit, or its successor
courts, which shall have jurisdiction therefore, not-
withstanding the provisions of 28 U.S.C. 1502, and
which court’s decisions shall be reviewable as provided
by the laws of the United States. The United States
Court of Appeals for the Federal Circuit shall certify
such judgment, and order payment thereof, unless it
finds, after a hearing, that such judgment is mani-
festly erroneous as to law or fact, or manifestly exces-
sive. In either of such cases the United States Court
of Appeals for the Federal Circuit shall have jurisdic-
tion to modify such judgment.
(d) The Government of the Republic of the Mar-
shall Islands 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 Republic of
the Marshall Islands in any civil case in which an
exception to foreign state immunity is set forth in the
Foreign Sovereign Immunities Act (28 U.S.C. 1602 et
seq.) or its successor statutes.
Section 175
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(a) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall
have the force of law, shall govern mutual assistance and
cooperation in law enforcement matters, including the pur-
suit, capture, imprisonment and extradition of fugitives
from justice and the transfer of prisoners, as well as other
law enforcement matters. In the United States, the laws of
the United States governing international extradition, in-
cluding 18 U.S.C. 3184, 3186, and 3188–95, shall be appli-
cable to the extradition of fugitives under the separate
agreement, and the laws of the United States governing the
transfer of prisoners, including 18 U.S.C. 4100–15, shall
be applicable to the transfer of prisoners under the separate
agreement; and
(b) A separate agreement, which shall come into effect
simultaneously with this Compact, as amended, and shall
have the force of law, shall govern requirements relating to
labor recruitment practices, including registration, report-
ing, suspension or revocation of authorization to recruit
persons for employment in the United States, and enforce-
ment for violations of such requirements.
Section 176
The Government of the Republic of the Marshall Is-
lands confirms that final judgments in civil cases rendered
by any court of the Trust Territory of the Pacific Islands
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shall continue in full force and effect, subject to the constitu-
tional power of the courts of the Republic of the Marshall
Islands to grant relief from judgments in appropriate cases.
Section 177
Section 177 of the Compact entered into force with re-
spect to the Marshall Islands on October 21, 1986 as follows:
‘‘(a) The Government of the United States ac-
cepts the responsibility for compensation owing to
citizens of the Marshall Islands, or the Federated
States of Micronesia, (or Palau) for loss or damage
to property and person of the citizens of the Marshall
Islands, or the Federated States of Micronesia, result-
ing from the nuclear testing program which the Gov-
ernment of the United States conducted in the North-
ern Marshall Islands between June 30, 1946, and Au-
gust 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 citi-
zens and which have not as yet been compensated or
which in the future may arise, for the continued ad-
ministration by the Government of the United States
of direct radiation related medical surveillance and
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treatment programs and radiological monitoring ac-
tivities and for such additional programs and activi-
ties as may be mutually agreed, and for the assump-
tion by the Government of the Marshall Islands of re-
sponsibility for enforcement of limitations on the uti-
lization of affected areas developed in cooperation
with the Government of the United States and for the
assistance by the Government of the United States in
the exercise of such responsibility as may be mutually
agreed. This separate agreement shall come into effect
simultaneously with this Compact and shall remain
in effect in accordance with its own terms.
‘‘(c) The Government of the United States shall
provide to the Government of the Marshall Islands, on
a grant basis, the amount of $150 million to be paid
and distributed in accordance with the separate
agreement referred to in this Section, and shall pro-
vide the services and programs set forth in this sepa-
rate agreement, the language of which is incorporated
into this Compact.’’
The Compact, as amended, makes no changes to, and has
no effect upon, Section 177 of the Compact, nor does the
Compact, as amended, change or affect the separate agree-
ment referred to in Section 177 of the Compact including
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Articles IX and X of that separate agreement, and measures
taken by the parties thereunder.
Section 178
(a) The Federal agencies of the Government of the
United States that provide services and related programs
in the Republic of the Marshall Islands pursuant to Title
Two are authorized to settle and pay tort claims arising
in the Republic of the Marshall Islands from the activities
of such agencies or from the acts or omissions of the employ-
ees of such agencies. Except as provided in section 178(b),
the provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall
apply exclusively to such administrative settlements and
payments.
(b) Claims under section 178(a) that cannot be settled
under section 178(a) shall be disposed of exclusively in ac-
cordance 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 Gov-
ernment of the Republic of the Marshall Islands shall, in
the separate agreement referred to in section 231, provide
for:
(1) the administrative settlement of claims re-
ferred to in section 178(a), including designation of
local agents in each State of the Republic of the Mar-
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shall Islands; such agents to be empowered to accept,
investigate and settle such claims, in a timely man-
ner, as provided in such separate agreements; and
(2) arbitration, referred to in section 178(b), in
a timely manner, at a site convenient to the claim-
ant, in the event a claim is not otherwise settled pur-
suant to section 178(a).
(d) The provisions of section 174(d) shall not apply
to claims covered by this section.
(e) Except as otherwise explicitly provided by law of
the United States, this Compact, as amended, or its related
agreements, neither the Government of the United States,
its instrumentalities, nor any person acting on behalf of
the Government of the United States, shall be named a
party in any action based on, or arising out of, the activity
or activities of a recipient of any grant or other assistance
provided by the Government of the United States (or the
activity or activities of the recipient’s agency or any other
person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Republic of the Marshall Islands
shall not exercise criminal jurisdiction over the Government
of the United States, or its instrumentalities.
(b) The courts of the Republic of the Marshall Islands
shall not exercise criminal jurisdiction over any person if
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the Government of the United States provides notification
to the Government of the Republic of the Marshall Islands
that such person was acting on behalf of the Government
of the United States, for actions taken in furtherance of sec-
tion 221 or 224 of this amended Compact, or any other
provision of law authorizing financial, program, or service
assistance to the Republic of the Marshall Islands.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Annual Grant Assistance
(a) In order to assist the Government of the Republic
of the Marshall Islands in its efforts to promote the eco-
nomic advancement and budgetary self-reliance of its peo-
ple, and in recognition of the special relationship that exists
between the Republic of the Marshall Islands and the United
States, the Government of the United States shall provide
assistance on a grant basis for a period of twenty years
in the amounts set forth in section 217, commencing on the
effective date of this Compact, as amended. Such grants
shall be used for assistance in education, health care, the
environment, public sector capacity building, and private
sector development, or for other areas as mutually agreed,
with priorities in the education and health care sectors.
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Consistent with the medium-term budget and investment
framework described in subsection (f) of this section, the
proposed division of this amount among the identified areas
shall require the concurrence of both the Government of the
United States and the Government of the Republic of the
Marshall Islands, through the Joint Economic Management
and Financial Accountability Committee described in sec-
tion 214. The Government of the United States shall dis-
burse the grant assistance and monitor the use of such grant
assistance in accordance with the provisions of this Article
and an Agreement Concerning Procedures for the Imple-
mentation of United States Economic Assistance Provided
in the Compact, as Amended, of Free Association Between
the Government of the United States of America and the
Government of the Republic of the Marshall Islands (‘‘Fiscal
Procedures Agreement’’) which shall come into effect simul-
taneously with this Compact, as amended.
(1) EDUCATION.—United States grant assistance
shall be made available in accordance with the stra-
tegic framework described in subsection (f) of this sec-
tion to support and improve the educational system
of the Republic of the Marshall Islands and develop
the human, financial, and material resources nec-
essary for the Republic of the Marshall Islands to per-
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form these services. Emphasis should be placed on ad-
vancing a quality basic education system.
(2) HEALTH.—United States grant assistance
shall be made available in accordance with the stra-
tegic framework described in subsection (f) of this sec-
tion to support and improve the delivery of preven-
tive, curative and environmental care and develop the
human, financial, and material resources necessary
for the Republic of the Marshall Islands to perform
these services.
(3) PRIVATE
SECTOR
DEVELOPMENT.—United
States grant assistance shall be made available in ac-
cordance with the strategic framework described in
subsection (f) of this section to support the efforts of
the Republic of the Marshall Islands to attract foreign
investment and increase indigenous business activity
by vitalizing the commercial environment, ensuring
fair and equitable application of the law, promoting
adherence to core labor standards, maintaining
progress toward privatization of state-owned and par-
tially state-owned enterprises, and engaging in other
reforms.
(4) CAPACITY
BUILDING
IN
THE
PUBLIC
SEC-
TOR.—United States grant assistance shall be made
available in accordance with the strategic framework
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described in subsection (f) of this section to support
the efforts of the Republic of the Marshall Islands to
build effective, accountable and transparent national
and local government and other public sector institu-
tions and systems.
(5) ENVIRONMENT.—United States grant assist-
ance shall be made available in accordance with the
strategic framework described in subsection (f) of this
section to increase environmental protection; establish
and manage conservation areas; engage in environ-
mental infrastructure planning, design construction
and operation; and to involve the citizens of the Re-
public of the Marshall Islands in the process of con-
serving their country’s natural resources.
(b) KWAJALEIN ATOLL.—
(1) Of the total grant assistance made available
under subsection (a) of this section, the amount speci-
fied herein shall be allocated annually from fiscal
year 2004 through fiscal year 2023 (and thereafter in
accordance with the Agreement between the Govern-
ment of the United States and the Government of the
Republic of the Marshall Islands Regarding Military
Use and Operating Rights) to advance the objectives
and specific priorities set forth in subsections (a) and
(d) of this section and the Fiscal Procedures Agree-
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ment, to address the special needs of the community
at Ebeye, Kwajalein Atoll and other Marshallese com-
munities within Kwajalein Atoll. This United States
grant assistance shall be made available, in accord-
ance with the medium-term budget and investment
framework described in subsection (f) of this section,
to support and improve the infrastructure and deliv-
ery of services and develop the human and material
resources necessary for the Republic of the Marshall
Islands to carry out its responsibility to maintain
such infrastructure and deliver such services. The
amount of this assistance shall be $3,100,000, with an
inflation adjustment as provided in section 218, from
fiscal year 2004 through fiscal year 2013 and the fis-
cal year 2013 level of funding, with an inflation ad-
justment as provided in section 218, will be increased
by $2 million for fiscal year 2014. The fiscal year
2014 level of funding, with an inflation adjustment as
provided in section 218, will be made available from
fiscal year 2015 through fiscal year 2023 (and there-
after as noted above).
(2) The Government of the United States shall
also provide to the Government of the Republic of the
Marshall Islands, in conjunction with section 321(a)
of this Compact, as amended, an annual payment
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from fiscal year 2004 through fiscal year 2023 (and
thereafter in accordance with the Agreement between
the Government of the United States and the Govern-
ment of the Republic of the Marshall Islands Regard-
ing Military Use and Operating Rights) of $1.9 mil-
lion. This grant assistance will be subject to the Fis-
cal Procedures Agreement and will be adjusted for in-
flation under section 218 and used to address the spe-
cial needs of the community at Ebeye, Kwajalein
Atoll and other Marshallese communities within
Kwajalein Atoll with emphasis on the Kwajalein
landowners, as described in the Fiscal Procedures
Agreement.
(3) Of the total grant assistance made available
under subsection (a) of this section, and in conjunc-
tion with section 321(a) of the Compact, as amended,
$200,000, with an inflation adjustment as provided
in section 218, shall be allocated annually from fiscal
year 2004 through fiscal year 2023 (and thereafter as
provided in the Agreement between the Government of
the United States and the Government of the Republic
of the Marshall Islands Regarding Military Use and
Operating Rights) for a grant to support increased
participation of the Government of the Republic of the
Marshall Islands Environmental Protection Authority
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in the annual U.S. Army Kwajalein Atoll Environ-
mental Standards Survey and to promote a greater
Government of the Republic of the Marshall Islands
capacity for independent analysis of the Survey’s
findings and conclusions.
(c) HUMANITARIAN ASSISTANCE—REPUBLIC OF THE
MARSHALL ISLANDS PROGRAM.—In recognition of the spe-
cial development needs of the Republic of the Marshall Is-
lands, the Government of the United States shall make
available to the Government of the Republic of the Marshall
Islands, on its request and to be deducted from the grant
amount made available under subsection (a) of this section,
a Humanitarian Assistance—Republic of the Marshall Is-
lands (‘‘HARMI’’) Program with emphasis on health, edu-
cation, and infrastructure (including transportation),
projects and such other projects as mutually agreed. The
terms and conditions of the HARMI shall be set forth in
the Agreement Regarding the Military Use and Operating
Rights of the Government of the United States in the Repub-
lic of the Marshall Islands Concluded Pursuant to Sections
321 and 323 of the Compact of Free Association, as Amend-
ed, which shall come into effect simultaneously with the
amendments to this Compact.
(d) PUBLIC INFRASTRUCTURE.—
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HJ 63 EAS
(1) Unless otherwise agreed, not less than 30 per-
cent and not more than 50 percent of U.S. annual
grant assistance provided under this section shall be
made available in accordance with a list of specific
projects included in the infrastructure improvement
and maintenance plan prepared by the Government
of the Republic of the Marshall Islands as part of the
strategic framework described in subsection (f) of this
section.
(2) INFRASTRUCTURE MAINTENANCE FUND.—
Five percent of the annual public infrastructure grant
made available under paragraph (1) of this subsection
shall be set aside, with an equal contribution from the
Government of the Republic of the Marshall Islands,
as a contribution to an Infrastructure Maintenance
Fund. Administration of the Infrastructure Mainte-
nance Fund shall be governed by the Fiscal Proce-
dures Agreement.
(e) DISASTER ASSISTANCE EMERGENCY FUND.—Of
the total grant assistance made available under subsection
(a) of this section, an amount of two hundred thousand dol-
lars ($200,000) shall be provided annually, with an equal
contribution from the Government of the Republic of the
Marshall Islands, as a contribution to a Disaster Assistance
Emergency Fund (‘‘DAEF’’). Any funds from the DAEF
†
232
HJ 63 EAS
may be used only for assistance and rehabilitation resulting
from disasters and emergencies. The funds will be accessed
upon declaration of a State of Emergency by the Govern-
ment of the Republic of the Marshall Islands, with the con-
currence of the United States Chief of Mission to the Repub-
lic of the Marshall Islands. Administration of the DAEF
shall be governed by the Fiscal Procedures Agreement.
(f) BUDGET
AND INVESTMENT FRAMEWORK.—The
Government of the Republic of the Marshall Islands shall
prepare and maintain an official medium-term budget and
investment framework. The framework shall be strategic in
nature, shall be continuously reviewed and updated through
the annual budget process, and shall make projections on
a multi-year rolling basis. Each of the sectors and areas
named in subsections (a), (b), and (d) of this section, or
other sectors and areas as mutually agreed, shall be ac-
corded specific treatment in the framework. Those portions
of the framework that contemplate the use of United States
grant funds shall require the concurrence of both the Gov-
ernment of the United States and the Government of the
Republic of the Marshall Islands.
Section 212 - Kwajalein Impact and Use
The Government of the United States shall provide to
the Government of the Republic of the Marshall Islands in
conjunction with section 321(a) of the Compact, as amend-
†
233
HJ 63 EAS
ed, and the agreement between the Government of the
United States and the Government of the Republic of the
Marshall Islands regarding military use and operating
rights, a payment in fiscal year 2004 of $15,000,000, with
no adjustment for inflation. In fiscal year 2005 and
through fiscal year 2013, the annual payment will be the
fiscal year 2004 amount ($15,000,000) with an inflation
adjustment as provided under section 218. In fiscal year
2014, the annual payment will be $18,000,000 (with no ad-
justment for inflation) or the fiscal year 2013 amount with
an inflation adjustment under section 218, whichever is
greater. For fiscal year 2015 through fiscal year 2023 (and
thereafter in accordance with the Agreement between the
Government of the United States and the Government of
the Republic of the Marshall Islands Regarding Military
Use and Operating Rights) the annual payment will be the
fiscal year 2014 amount, with an inflation adjustment as
provided under section 218.
Section 213 - Accountability
(a) Regulations and policies normally applicable to
United States financial assistance to its state and local gov-
ernments, as set forth in the Fiscal Procedures Agreement,
shall apply to each grant described in section 211, and to
grants administered under section 221 below, except as
modified in the separate agreements referred to in section
†
234
HJ 63 EAS
231 of this Compact, as amended, or by U.S. law. As set
forth in the Fiscal Procedures Agreement, reasonable terms
and conditions, including annual performance indicators
that are necessary to ensure effective use of United States
assistance and reasonable progress toward achieving pro-
gram objectives may be attached. In addition, the United
States may seek appropriate remedies for noncompliance
with the terms and conditions attached to the assistance,
or for failure to comply with section 234, including with-
holding assistance.
(b) The Government of the United States shall, for each
fiscal year of the twenty years during which assistance is
to be provided on a sector grant basis under section 211
(a), grant the Government of the Republic of the Marshall
Islands an amount equal to the lesser of (i) one half of the
reasonable, properly documented cost incurred during such
fiscal year to conduct the annual audit required under Arti-
cle VIII (2) of the Fiscal Procedures Agreement or (ii)
$500,000. Such amount will not be adjusted for inflation
under section 218 or otherwise.
Section 214 - Joint Economic Management and Financial
Accountability Committee
The Governments of the United States and the Repub-
lic of the Marshall Islands shall establish a Joint Economic
Management and Financial Accountability Committee,
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HJ 63 EAS
composed of a U.S. chair, two other members from the Gov-
ernment of the United States and two members from the
Government of the Republic of the Marshall Islands. The
Joint Economic Management and Financial Accountability
Committee shall meet at least once each year to review the
audits and reports required under this Title and the Fiscal
Procedures Agreement, evaluate the progress made by the
Republic of the Marshall Islands in meeting the objectives
identified in its framework described in subsection (f) of
section 211, with particular focus on those parts of the
framework dealing with the sectors and areas identified in
subsection (a) of section 211, identify problems encountered,
and recommend ways to increase the effectiveness of U.S.
assistance made available under this Title. The establish-
ment and operations of the Joint Economic Management
and Financial Accountability Committee shall be governed
by the Fiscal Procedures Agreement.
Section 215 - Annual Report
The Government of the Republic of the Marshall Is-
lands shall report annually to the President of the United
States on the use of United States sector grant assistance
and other assistance and progress in meeting mutually
agreed program and economic goals. The Joint Economic
Management and Financial Accountability Committee
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236
HJ 63 EAS
shall review and comment on the report and make appro-
priate recommendations based thereon.
Section 216 - Trust Fund
(a) The United States shall contribute annually for
twenty years from the effective date of the Compact, as
amended, in the amounts set forth in section 217 into a
trust fund established in accordance with the Agreement Be-
tween the Government of the United States of America and
the Government of the Republic of the Marshall Islands Im-
plementing Section 216 and Section 217 of the Compact,
as Amended, Regarding a Trust Fund (‘‘Trust Fund Agree-
ment’’), which shall come into effect simultaneously with
this Compact, as amended. Upon termination of the annual
grant assistance under section 211 (a), (d) and (e), the
earnings of the fund shall thereafter be used for the purposes
described in section 211 or as otherwise mutually agreed.
(b) The United States contribution into the Trust
Fund described in subsection (a) of this section is condi-
tioned on the Government of the Republic of the Marshall
Islands contributing to the Trust Fund at least
$25,000,000, on the effective date of the Trust Fund Agree-
ment or on October 1, 2003, whichever is later, $2,500,000
prior to October 1, 2004, and $2,500,000 prior to October
1, 2005. Any funds received by the Republic of the Marshall
Islands under section 111(d) of Public Law 99–239 (Janu-
†
237
HJ 63 EAS
ary 14, 1986), or successor provisions, would be contributed
to the Trust Fund as a Republic of the Marshall Islands’
contribution.
(c) The terms regarding the investment and manage-
ment of funds and use of the income of the Trust Fund shall
be governed by the Trust Fund Agreement. Funds derived
from United States investment shall not be subject to Fed-
eral or state taxes in the United States or any taxes in
the Republic of the Marshall Islands. The Trust Fund
Agreement shall also provide for annual reports to the Gov-
ernment of the United States and to the Government of the
Republic of the Marshall Islands. The Trust Fund Agree-
ment shall provide for appropriate distributions of trust
fund proceeds to the Republic of the Marshall Islands and
for appropriate remedies for the failure of the Republic of
the Marshall Islands to use income of the Trust Fund for
the annual grant purposes set forth in section 211. These
remedies may include the return to the United States of
the present market value of its contributions to the Trust
Fund and the present market value of any undistributed
income on the contributions of the United States. If this
Compact, as amended, is terminated, the provisions of sec-
tions 451–453 of the Compact, as amended, and the Trust
Fund Agreement shall govern treatment of any U.S. con-
tributions to the Trust Fund or accrued income thereon.
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HJ 63 EAS
Section 217 - Annual Grant Funding and Trust Fund Con-
tributions
The funds described in sections 211, 212, 213(b), and
216 shall be made available as follows:
[In millions of dollars]
Fiscal year
Annual Grants
Section 211
Audit Grant
Section 213(b)
Trust Fund
Section 216
(a&c)
Kwajalein Im-
pact Section 212
Total
2004 ..........................
35.2
.5
15.0
57.7
2005 ..........................
34.7
.5
7.5
15.0
57.7
2006 ..........................
34.2
.5
15.0
57.7
2007 ..........................
33.7
.5
8.5
15.0
57.7
2008 ..........................
33.2
.5
15.0
57.7
2009 ..........................
32.7
.5
9.5
15.0
57.7
2010 ..........................
32.2
.5
15.0
57.7
2011 ..........................
31.7
.5
10.5
15.0
57.7
2012 ..........................
31.2
.5
15.0
57.7
2013 ..........................
30.7
.5
11.5
15.0
57.7
2014 ..........................
32.2
.5
18.0
62.7
2015 ..........................
31.7
.5
12.5
18.0
62.7
2016 ..........................
31.2
.5
18.0
62.7
2017 ..........................
30.7
.5
13.5
18.0
62.7
2018 ..........................
30.2
.5
18.0
62.7
2019 ..........................
29.7
.5
14.5
18.0
62.7
2020 ..........................
29.2
.5
18.0
62.7
2021 ..........................
28.7
.5
15.5
18.0
62.7
2022 ..........................
28.2
.5
18.0
62.7
2023 ..........................
27.7
.5
16.5
18.0
62.7
Section 218 - Inflation Adjustment
Except as otherwise provided, the amounts stated in
this Title shall be adjusted for each United States Fiscal
Year by the percent that equals two-thirds of the percent
change in the United States Gross Domestic Product Im-
plicit Price Deflator, or 5 percent, whichever is less in any
one year, using the beginning of Fiscal Year 2004 as a base.
Section 219 - Carry-Over of Unused Funds
If in any year the funds made available by the Govern-
ment of the United States for that year pursuant to this
Article are not completely obligated by the Government of
the Republic of the Marshall Islands, the unobligated bal-
†
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HJ 63 EAS
ances shall remain available in addition to the funds to
be provided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) SERVICES.—The Government of the United States
shall make available to the Republic of the Marshall Islands,
in accordance with and to the extent provided in the Fed-
eral Programs and Services Agreement referred to in Sec-
tion 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 Adminis-
tration;
(4) the United States Department of Transpor-
tation; and
(5) 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 programs
shall have the authority to implement the relevant provi-
sions of the Federal Programs and Services Agreement re-
ferred to in section 231.
†
240
HJ 63 EAS
(b) PROGRAMS.—
(1) Other than the services and programs covered
by subsection (a) of this section, and to the extent au-
thorized by the Congress of the United States, the
Government of the United States shall make available
to the Republic of the Marshall Islands the services
and programs that were available to the Republic of
the Marshall Islands on the effective date of this Com-
pact, as amended, to the extent that such services and
programs continue to be available to State and local
governments of the United States. As set forth in the
Fiscal Procedures Agreement, funds provided under
subsection (a) of section 211 shall be considered to be
local revenues of the Government of the Republic of
the Marshall Islands when used as the local share re-
quired to obtain Federal programs and services.
(2) Unless provided otherwise by U.S. law, the
services and programs described in paragraph (1) of
this subsection shall be extended in accordance with
the terms of the Federal Programs and Services
Agreement.
(c) The Government of the United States shall have
and exercise such authority as is necessary to carry out its
responsibilities under this Title and the Federal Programs
and Services Agreement, including the authority to monitor
†
241
HJ 63 EAS
and administer all service and program assistance provided
by the United States to the Republic of the Marshall Is-
lands. The Federal Programs and Services Agreement shall
also set forth the extent to which services and programs shall
be provided to the Republic of the Marshall Islands.
(d) Except as provided elsewhere in this Compact, as
amended, under any separate agreement entered into under
this Compact, as amended, or otherwise under U.S. law,
all Federal domestic programs extended to or operating in
the Republic of the Marshall Islands shall be subject to all
applicable criteria, standards, reporting requirements, au-
diting procedures, and other rules and regulations applica-
ble to such programs and services when operating in the
United States.
(e) The Government of the United States shall make
available to the Republic of the Marshall Islands alternate
energy development projects, studies, and conservation
measures to the extent provided for the Freely Associated
States in the laws of the United States.
Section 222
The Government of the United States and the Govern-
ment of the Republic of the Marshall Islands may agree
from time to time to extend to the Republic of the Marshall
Islands additional United States grant assistance, services
and programs, as provided under the laws of the United
†
242
HJ 63 EAS
States. Unless inconsistent with such laws, or otherwise spe-
cifically precluded by the Government of the United States
at the time such additional grant assistance, services, or
programs are extended, the Federal Programs and Services
Agreement shall apply to any such assistance, services or
programs.
Section 223
The Government of the Republic of the Marshall Is-
lands shall make available to the Government of the United
States at no cost such land as may be necessary for the
operations of the services and programs provided pursuant
to this Article, and such facilities as are provided by the
Government of the Republic of the Marshall Islands at no
cost to the Government of the United States as of the effec-
tive date of this Compact, as amended, or as may be mutu-
ally agreed thereafter.
Section 224
The Government of the Republic of the Marshall Is-
lands may request, from the time to time, technical assist-
ance from the Federal agencies and institutions of the Gov-
ernment 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 tech-
nical assistance in a manner which gives priority consider-
†
243
HJ 63 EAS
ation to the Republic of the Marshall Islands over other re-
cipients not a part of the United States, its territories or
possessions, and equivalent consideration to the Republic of
the Marshall Islands with respect to other states in Free
Association with the United States. Such assistance shall
be made available on a reimbursable or non-reimbursable
basis to the extent provided by United States law.
Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrange-
ments of the services and programs provided for in section
221 of this Compact, as amended, as well as the legal status
of agencies of the Government of the United States, their
civilian employees and contractors, and the dependents of
such personnel while present in the Republic of the Marshall
Islands, and other arrangements in connection with the as-
sistance, 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 simul-
taneously with this Compact, as amended.
Section 232
The Government of the United States, in consultation
with the Government of the Republic of the Marshall Is-
lands, shall determine and implement procedures for the
†
244
HJ 63 EAS
periodic audit of all grants and other assistance made
under Article I of this Title and of all funds expended for
the services and programs provided under Article II of this
Title. Further, in accordance with the Fiscal Procedures
Agreement described in subsection (a) of section 211, the
Comptroller General of the United States shall have such
powers and authorities as described in sections 103(m) and
110(c) of Public Law 99–239, 99 Stat. 1777–78, and 99
Stat. 1799 (January 14, 1986).
Section 233
Approval of this Compact, as amended, by the Govern-
ment of the United States, in accordance with its constitu-
tional processes, shall constitute a pledge by the United
States that the sums and amounts specified as grants in
section 211 of this Compact, as amended, shall be appro-
priated and paid to the Republic of the Marshall Islands
for such period as those provisions of this Compact, as
amended, remain in force, provided that the Republic of
the Marshall Islands complies with the terms and condi-
tions of this Title and related subsidiary agreements.
Section 234
The Government of the Republic of the Marshall Is-
lands 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
†
245
HJ 63 EAS
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 agreements. In
carrying out this investigative authority, such United
States Government representatives may request that the
Government of the Republic of the Marshall Islands sub-
poena documents and records and compel testimony in ac-
cordance with the laws and Constitution of the Republic
of the Marshall Islands. Such assistance by the Government
of the Republic of the Marshall Islands to the Government
of the United States shall not be unreasonably withheld. The
obligation of the Government of the Marshall Islands to ful-
fill its pledge herein is a condition to its receiving payment
of such funds or other assistance authorized under this Com-
pact, as amended. The Government of the United States
shall pay any reasonable costs for extraordinary services
executed by the Government of the Marshall Islands in car-
rying out the provisions of this section.
Article IV
Trade
Section 241
The Republic of the Marshall Islands is not included
in the customs territory of the United States.
Section 242
†
246
HJ 63 EAS
The President shall proclaim the following tariff treat-
ment for articles imported from the Republic of the Mar-
shall Islands which shall apply during the period of effec-
tiveness of this title:
(a) Unless otherwise excluded, articles imported
from the Republic of the Marshall Islands, subject to
the limitations imposed under section 503(b) of title
V of the Trade Act of 1974 (19 U.S.C. 2463(b)), shall
be exempt from duty.
(b) Only tuna in airtight containers provided for
in heading 1604.14.22 of the Harmonized Tariff
Schedule of the United States that is imported from
the Republic of the Marshall Islands and the Fed-
erated States of Micronesia during any calendar year
not to exceed 10 percent of apparent United States
consumption of tuna in airtight containers during the
immediately preceding calendar year, as reported by
the National Marine Fisheries Service, shall be 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 aggregated quantity
of tuna in airtight containers that is dutiable under
rate column numbered 1 of such heading 1604.14.22
for that calendar year.
†
247
HJ 63 EAS
(c) The duty-free treatment provided under sub-
section (a) shall not apply to:
(1) watches, clocks, and timing apparatus
provided for in Chapter 91, excluding heading
9113, of the Harmonized Tariff Schedule of the
United States;
(2) buttons (whether finished or not 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 included
with respect to an eligible article which is a product
of the Republic of the Marshall Islands, an amount
not to exceed 15 percent of the appraised value of the
article at the time it is entered that is attributable to
such United States cost or value may be applied for
duty assessment purposes toward determining the per-
†
248
HJ 63 EAS
centage referred to in section 503(a)(2) of title V of
the Trade Act of 1974.
Section 243
Articles imported from the Republic of the Marshall
Islands which are not exempt from duty under subsections
(a), (b), (c), and (d) of section 242 shall be subject to the
rates of duty set forth in column numbered 1-general of the
Harmonized Tariff Schedule of the United States
(HTSUS).
Section 244
(a) All products of the United States imported into
the Republic of the Marshall Islands shall receive treatment
no less favorable than that accorded like products of any
foreign country with respect to customs duties or charges
of a similar nature and with respect to laws and 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 Republic of the Marshall Is-
lands by virtue of their full membership in the Pacific Is-
land Countries Trade Agreement (PICTA), done on August
18, 2001, to those governments listed in Article 26 of
PICTA, as of the date the Compact, as amended, is signed.
(c) Prior to entering into consultations on, or con-
cluding, a free trade agreement with governments not listed
†
249
HJ 63 EAS
in Article 26 of PICTA, the Republic of the Marshall Is-
lands shall consult with the United States regarding wheth-
er or how subsection (a) of section 244 shall be applied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official circu-
lating legal tender of the Republic of the Marshall Islands.
Should the Government of the Republic of the Marshall Is-
lands act to institute another currency, the terms of an ap-
propriate currency transitional period shall be as agreed
with the Government of the United States.
Section 252
The Government of the Republic of the Marshall Is-
lands may, with respect to United States persons, tax in-
come derived from sources within its respective jurisdiction,
property situated therein, including transfers of such prop-
erty by gift or at death, and products consumed therein,
in such manner as the Government of the Republic of the
Marshall Islands deems appropriate. The determination of
the source of any income, or the situs of any property, shall
for purposes of this Compact, as amended, be made accord-
ing to the United States Internal Revenue Code.
Section 253
†
250
HJ 63 EAS
A citizen of the Republic of the Marshall Islands, domi-
ciled therein, shall be exempt from estate, gift, and genera-
tion-skipping transfer taxes imposed by the Government of
the United States, provided that such citizen of the Republic
of the Marshall Islands is neither a citizen nor a resident
of the United States.
Section 254
(a) In determining any income tax imposed by the
Government of the Republic of the Marshall Islands, the
Government of the Republic of the Marshall Islands shall
have authority to impose tax upon income derived by a resi-
dent of the Republic of the Marshall Islands from sources
without the Republic of the Marshall Islands, in the same
manner and to the same extent as the Government of the
Republic of the Marshall Islands imposes tax upon income
derived from within its own jurisdiction. If the Government
of the Republic of the Marshall Islands exercises such au-
thority as provided in this subsection, any individual resi-
dent of the Republic of the Marshall Islands who is subject
to tax by the Government of the United States on income
which is also taxed by the Government of the Republic of
the Marshall Islands shall be relieved of liability to the Gov-
ernment of the United States for the tax which, but for this
subsection, would otherwise be imposed by the Government
of the United States on such income. However, the relief
†
251
HJ 63 EAS
from liability to the United States Government referred to
in the preceding sentence means only relief in the form of
the foreign tax credit (or deduction in lieu thereof) available
with respect to the income taxes of a possession of the
United States, and relief in the form of the exclusion under
section 911 of the Internal Revenue Code of 1986. For pur-
poses of this section, the term ‘‘resident of the Republic of
the Marshall Islands’’ shall be deemed to include any person
who was physically present in the Republic of the Marshall
Islands for a period of 183 or more days during any taxable
year.
(b) If the Government of the Republic of the Marshall
Islands subjects income to taxation substantially similar to
that which was imposed by the Trust Territory Code in ef-
fect on January 1, 1980, such Government shall be deemed
to have exercised the authority described in section 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the U.S. Inter-
nal Revenue Code of 1986, the term ‘‘North American Area’’
shall include the Republic of the Marshall Islands.
TITLE THREE
SECURITY AND DEFENSE RELATIONS
Article I
Authority and Responsibility
Section 311
†
252
HJ 63 EAS
(a) The Government of the United States has full au-
thority and responsibility for security and defense matters
in or relating to the Republic of the Marshall Islands.
(b) This authority and responsibility includes:
(1) the obligation to defend the Republic of the
Marshall Islands and its people from attack or threats
thereof as the United States and its citizens are de-
fended;
(2) the option to foreclose access to or use of the
Republic of the Marshall Islands by military per-
sonnel or for the military purposes of any third coun-
try; and
(3) the option to establish and use military areas
and facilities in the Republic of the Marshall Islands,
subject to the terms of the separate agreements re-
ferred 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 Republic of the Marshall Islands the activi-
†
253
HJ 63 EAS
ties and operations necessary for the exercise of its author-
ity and responsibility under this Title.
Section 313
(a) The Government of the Republic of the Marshall
Islands shall refrain from actions that the Government of
the United States determines, after appropriate consulta-
tion with that Government, to be incompatible with its au-
thority and responsibility for security and defense matters
in or relating to the Republic of the Marshall Islands.
(b) The consultations referred to in this section shall
be conducted expeditiously at senior levels of the two Gov-
ernments, and the subsequent determination by the Govern-
ment of the United States referred to in this section shall
be made only at senior interagency levels of the Government
of the United States.
(c) The Government of the Republic of the Marshall
Islands shall be afforded, on an expeditious basis, an oppor-
tunity 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 Republic of the Marshall Is-
lands:
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254
HJ 63 EAS
(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 radio-
active, toxic chemical or biological materials in an
amount or manner that would be hazardous to public
health or safety.
(b) Unless otherwise agreed, other than for transit or
overflight purposes or during time of a national emergency
declared by the President of the United States, a state of
war declared by the Congress of the United States or as
necessary to defend against an actual or impending armed
attack on the United States, the Republic of the Marshall
Islands or the Federated States of Micronesia, the Govern-
ment of the United States shall not store in the Republic
of the Marshall Islands or the Federated States of Micro-
nesia any toxic chemical weapon, nor any radioactive ma-
terials nor any toxic chemical materials intended for weap-
ons use.
(c) Radioactive, toxic chemical, or biological materials
not intended for weapons use shall not be affected by section
314(b).
(d) No material or substance referred to in this section
shall be stored in the Republic of the Marshall Islands ex-
cept in an amount and manner which would not be haz-
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ardous to public health or safety. In determining what shall
be an amount or manner which would be hazardous to pub-
lic health or safety under this section, the Government of
the United States shall comply with any applicable mutual
agreement, international guidelines accepted by the Govern-
ment of the United States, and the laws of the United States
and their implementing regulations.
(e) Any exercise of the exemption authority set forth
in section 161(e) shall have no effect on the obligations of
the Government of the United States under this section or
on the application of this subsection.
(f) The provisions of this section shall apply in the
areas in which the Government of the Republic of the Mar-
shall Islands exercises jurisdiction over the living resources
of the seabed, subsoil or water column adjacent to its coasts.
Section 315
The Government of the United States may invite mem-
bers of the armed forces of other countries to use military
areas and facilities in the Republic of the Marshall Islands,
in conjunction with and under the control of United States
Armed Forces. Use by units of the armed forces of other
countries of such military areas and facilities, other than
for transit and overflight purposes, shall be subject to con-
sultation with and, in the case of major units, approval
of the Government of the Republic of the Marshall Islands.
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Section 316
The authority and responsibility of the Government of
the United States under this Title may not be transferred
or otherwise assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and
use by the Government of the United States of military
areas and facilities in the Republic of the Marshall Islands
are set forth in separate agreements, which shall remain
in effect in accordance with the terms of such agreements.
(b) If, in the exercise of its authority and responsibility
under this Title, the Government of the United States re-
quires the use of areas within the Republic of the Marshall
Islands in addition to those for which specific arrangements
are concluded pursuant to section 321(a), it may request
the Government of the Republic of the Marshall Islands to
satisfy those requirements through leases or other arrange-
ments. The Government of the Republic of the Marshall Is-
lands shall sympathetically consider any such request and
shall establish suitable procedures to discuss it with and
provide a prompt response to the Government of the United
States.
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(c) The Government of the United States recognizes
and respects the scarcity and special importance of land
in the Republic of the Marshall Islands. In making any
requests pursuant to section 321(b), the Government of the
United States shall follow the policy of requesting the min-
imum area necessary to accomplish the required security
and defense purpose, of requesting only the minimum inter-
est 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 Re-
public of the Marshall Islands 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 arrange-
ments of the United States Armed Forces, their members,
and associated civilians, while present in the Republic of
the Marshall Islands are set forth in separate agreements,
which shall remain in effect in accordance with the terms
of such agreements.
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Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended, and
its related agreements, the Government of the United States,
exclusively, has assumed and enjoys, as to the Republic of
the Marshall Islands, all obligations, responsibilities, rights
and benefits of:
(a) Any defense treaty or other international se-
curity agreement applied by the Government of the
United States as Administering Authority of the
Trust Territory of the Pacific Islands as of October
20, 1986.
(b) Any defense treaty or other international se-
curity agreement to which the Government of the
United States is or may become a party which it de-
termines to be applicable in the Republic of the Mar-
shall Islands. Such a determination by the Govern-
ment of the United States shall be preceded by appro-
priate consultation with the Government of the Re-
public of the Marshall Islands.
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 sec-
tion 141(a)(5) who is not a citizen of the Republic of the
Marshall Islands) shall be eligible to volunteer for service
in the Armed Forces of the United States, but shall not be
subject to involuntary induction into military service of the
United States as long as such person has resided in the
United States for a period of less than one year, provided
that no time shall count towards this one year while a per-
son admitted to the United States under the Compact, or
the Compact, as amended, is engaged in full-time study in
the United States. Any person described in section
141(a)(5) who is not a citizen of the Republic of the Mar-
shall Islands 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 Republic of the Marshall Islands, as may be nominated
by the Government of the Republic of the Marshall Islands,
in each of:
(a) The United States Coast Guard Academy
pursuant to 14 U.S.C. 195.
(b) The United States Merchant Marine Acad-
emy pursuant to 46 U.S.C. 1295(b)(6), provided that
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the provisions of 46 U.S.C. 1295b(b)(6)(C) shall not
apply to the enrollment of students pursuant to sec-
tion 342(b) of this Compact, as amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Gov-
ernment of the Republic of the Marshall Islands shall con-
tinue to maintain a Joint Committee empowered to con-
sider disputes arising under the implementation of this
Title and its related agreements.
(b) The membership of the Joint Committee shall com-
prise selected senior officials of the two Governments. The
senior United States military commander in the Pacific
area shall be the senior United States member of the Joint
Committee. For the meetings of the Joint Committee, each
of the two Governments may designate additional or alter-
nate 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 Government
of the United States. The Joint Committee also shall meet
promptly upon request of either of its members. The Joint
Committee shall follow such procedures, including the estab-
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lishment of functional subcommittees, as the members may
from time to time agree. Upon notification by the Govern-
ment of the United States, the Joint Committee of the
United States and the Republic of the Marshall Islands
shall meet promptly in a combined session with the Joint
Committee established and maintained by the Government
of the United States and the Government of the Federated
States of Micronesia to consider matters within the jurisdic-
tion of the two Joint Committees.
(d) Unresolved issues in the Joint Committee shall be
referred to the Governments for resolution, and the Govern-
ment of the Republic of the Marshall Islands shall be af-
forded, on an expeditious basis, an opportunity to raise its
concerns with the United States Secretary of Defense per-
sonally regarding any unresolved issue which threatens its
continued association with the Government of the United
States.
Section 352
In the exercise of its authority and responsibility
under Title Three, the Government of the United States
shall accord due respect to the authority and responsibility
of the Government of the Republic of the Marshall Islands
under Titles One, Two and Four and to the responsibility
of the Government of the Republic of the Marshall Islands
to assure the well-being of its people.
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Section 353
(a) The Government of the United States shall not in-
clude the Government of the Republic of the Marshall Is-
lands 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 exist-
ence of a state of war, to any claims for damages which
are advanced by the citizens, nationals or Government of
the Republic of the Marshall Islands, which arise out of
armed conflict subsequent to October 21, 1986, and which
are:
(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 Gov-
ernment of the Republic of the Marshall Islands are jointly
committed to continue their security and defense relations,
as set forth in this Title. Accordingly, it is the intention
of the two countries that the provisions of this Title shall