171
•HJ 63 EH
The time specified in the notice of termination may be
extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section
441, economic and other assistance by the Government of
the United States shall continue only if and as mutually
agreed by the Governments of the United States and the
Federated States of Micronesia, and in accordance with
the parties’ respective constitutional processes.
(b) In view of the special relationship of the United
States and the Federated States of Micronesia, as re-
flected in subsections (b) and (c) of section 354 of this
Compact, as amended, and the separate agreement en-
tered into consistent with those subsections, if termination
occurs pursuant to section 441 prior to the twentieth anni-
versary of the effective date of this Compact, as amended,
the United States shall continue to make contributions to
the Trust Fund described in section 215 of this Compact,
as amended.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia described
in subsection (b) of this section, if termination occurs pur-
suant to section 441 following the twentieth anniversary
172
•HJ 63 EH
of the effective date of this Compact, as amended, the
Federated States of Micronesia shall be entitled to receive
proceeds from the Trust Fund described in section 215
of this Compact, as amended, in the manner described in
those provisions and the Trust Fund Agreement governing
the distribution of such proceeds.
Section 452
(a) Should termination occur pursuant to section 442
prior to the twentieth anniversary of the effective date of
this Compact, as amended, the following provisions of this
Compact, as amended, shall remain in full force and effect
until the twentieth anniversary of the effective date of this
Compact, as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and
177 of Title One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Should termination occur pursuant to section 442
before the twentieth anniversary of the effective date of
the Compact, as amended:
(1) Except as provided in paragraph (2) of this
subsection and subsection (c) of this section, eco-
nomic and other assistance by the United States
shall continue only if and as mutually agreed by the
173
•HJ 63 EH
Governments of the United States and the Fed-
erated States of Micronesia.
(2) In view of the special relationship of the
United States and the Federated States of Micro-
nesia, as reflected in subsections (b) and (c) of sec-
tion 354 of this Compact, as amended, and the sepa-
rate agreement regarding mutual security, and the
Trust Fund Agreement, the United States shall con-
tinue to make contributions to the Trust Fund de-
scribed in section 215 of this Compact, as amended,
in the manner described in the Trust Fund Agree-
ment.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia, as re-
flected in subsections 354(b) and (c) of this Compact, as
amended, and the separate agreement regarding mutual
security, and the Trust Fund Agreement, if termination
occurs pursuant to section 442 following the twentieth an-
niversary of the effective date of this Compact, as amend-
ed, the Federated States of Micronesia shall continue to
be eligible to receive proceeds from the Trust Fund de-
scribed in section 215 of this Compact, as amended, in
the manner described in those provisions and the Trust
Fund Agreement.
Section 453
174
•HJ 63 EH
(a) Should termination occur pursuant to section 443
prior to the twentieth anniversary of the effective date of
this Compact, as amended, the following provisions of this
Compact, as amended, shall remain in full force and effect
until the twentieth anniversary of the effective date of this
Compact, as amended, and thereafter as mutually agreed:
(1) Article VI and sections 172, 173, 176 and
177 of Title One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Upon receipt of notice of termination pursuant
to section 443, the Government of the United States and
the Government of the Federated States of Micronesia
shall promptly consult with regard to their future relation-
ship. Except as provided in subsection (c) and (d) of this
section, these consultations shall determine the level of
economic and other assistance, if any, which the Govern-
ment of the United States shall provide to the Government
of the Federated States of Micronesia for the period end-
ing on the twentieth anniversary of the effective date of
this Compact, as amended, and for any period thereafter,
if mutually agreed.
(c) In view of the special relationship of the United
States and the Federated States of Micronesia, as re-
175
•HJ 63 EH
flected in subsections 354(b) and (c) of this Compact, as
amended, and the separate agreement regarding mutual
security, and the Trust Fund Agreement, if termination
occurs pursuant to section 443 prior to the twentieth anni-
versary of the effective date of this Compact, as amended,
the United States shall continue to make contributions to
the Trust Fund described in section 215 of this Compact,
as amended, in the manner described in the Trust Fund
Agreement.
(d) In view of the special relationship of the United
States and the Federated States of Micronesia, as re-
flected in subsections 354(b) and (c) of this Compact, as
amended, and the separate agreement regarding mutual
security, and the Trust Fund Agreement, if termination
occurs pursuant to section 443 following the twentieth an-
niversary of the effective date of this Compact, as amend-
ed, the Federated States of Micronesia shall continue to
be eligible to receive proceeds from the Trust Fund de-
scribed in section 215 of this Compact, as amended, in
the manner described in those provisions and the Trust
Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact,
as amended:
176
•HJ 63 EH
(a) The Government of the United States reaf-
firms its continuing interest in promoting the eco-
nomic advancement and budgetary self-reliance of
the people of the Federated States of Micronesia.
(b) The separate agreements referred to in Ar-
ticle II of Title Three shall remain in effect in ac-
cordance with their terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only,
and without prejudice to the views of the Government of
the United States or the Government of the Federated
States of Micronesia as to the nature and extent of the
jurisdiction of either of them under international law, the
following terms shall have the following meanings:
(a) ‘‘Trust Territory of the Pacific Islands’’
means the area established in the Trusteeship
Agreement consisting of the former administrative
districts of Kosrae, Yap, Ponape, the Marshall Is-
lands and Truk as described in Title One, Trust
Territory Code, section 1, in force on January 1,
1979. This term does not include the area of Palau
or the Northern Mariana Islands.
177
•HJ 63 EH
(b) ‘‘Trusteeship Agreement’’ means the agree-
ment setting forth the terms of trusteeship for the
Trust Territory of the Pacific Islands, approved by
the Security Council of the United Nations April 2,
1947, and by the United States July 18, 1947, en-
tered into force July 18, 1947, 61 Stat. 3301,
T.I.A.S. 1665, 8 U.N.T.S. 189.
(c) ‘‘The Federated States of Micronesia’’ and
‘‘the Republic of the Marshall Islands’’ are used in
a geographic sense and include the land and water
areas to the outer limits of the territorial sea and
the air space above such areas as now or hereafter
recognized by the Government of the United States.
(d) ‘‘Compact’’ means the Compact of Free As-
sociation Between the United States and the Fed-
erated States of Micronesia and the Marshall Is-
lands, that was approved by the United States Con-
gress in section 201 of Public Law 99–239 (Jan. 14,
1986) and went into effect with respect to the Fed-
erated States of Micronesia on November 3, 1986.
(e) ‘‘Compact, as amended’’ means the Com-
pact of Free Association Between the United States
and the Federated States of Micronesia, as amend-
ed. The effective date of the Compact, as amended,
shall be on a date to be determined by the President
178
•HJ 63 EH
of the United States, and agreed to by the Govern-
ment of the Federated States of Micronesia, fol-
lowing formal approval of the Compact, as amended,
in accordance with section 411 of this Compact, as
amended.
(f) ‘‘Government of the Federated States of Mi-
cronesia’’ means the Government established and or-
ganized by the Constitution of the Federated States
of Micronesia including all the political subdivisions
and entities comprising that Government.
(g) ‘‘Government of the Republic of the Mar-
shall Islands’’ means the Government established
and organized by the Constitution of the Republic of
the Marshall Islands including all the political sub-
divisions and entities comprising that Government.
(h) The following terms shall be defined con-
sistent with the 1998 Edition of the Radio Regula-
tions of the International Telecommunications Union
as follows:
(1) ‘‘Radiocommunication’’ means tele-
communication by means of radio waves.
(2) ‘‘Station’’ means one or more transmit-
ters or receivers or a combination of transmit-
ters and receivers, including the accessory
equipment, necessary at one location for car-
179
•HJ 63 EH
rying on a radiocommunication service, or the
radio astronomy 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 sta-
tion 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
transmission, emission or reception of signs,
signals, writings, images and sounds or intel-
ligence of any nature by wire, radio, optical or
other electromagnetic systems.
(i) ‘‘Military Areas and Facilities’’ means those
areas and facilities in the Federated States of Micro-
nesia reserved or acquired by the Government of the
Federated States of Micronesia for use by the Gov-
180
•HJ 63 EH
ernment 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
Government of the Federated States of Micronesia pre-
viously have concluded agreements pursuant to the Com-
pact, which shall remain in effect and shall survive in ac-
cordance with their terms, as follows:
(1) Agreement Concluded Pursuant to Section
234 of the Compact;
(2) Agreement Between the Government of the
United States and the Government of the Federated
States of Micronesia Regarding Friendship, Co-
operation and Mutual Security Concluded Pursuant
181
•HJ 63 EH
to Sections 321 and 323 of the Compact of Free As-
sociation; and
(3) Agreement between the Government of the
United States of America and the Federated States
of Micronesia Regarding Aspects of the Marine Sov-
ereignty and Jurisdiction of the Federated States of
Micronesia.
(b) The Government of the United States and the
Government of the Federated States of Micronesia shall
conclude prior to the date of submission of this Compact,
as amended, to the legislatures of the two countries, the
following related agreements which shall come into effect
on the effective date of this Compact, as amended, and
shall survive in accordance with their terms, as follows:
(1) Federal Programs and Services Agreement
Between the Government of the United States of
America and the Government of the Federated
States of Micronesia Concluded Pursuant to Article
III of Title One, Article II of Title Two (including
Section 222), and Section 231 of the Compact of
Free Association, as amended which includes:
(i) Postal Services and Related Programs;
(ii) Weather Services and Related Pro-
grams;
182
•HJ 63 EH
(iii) Civil Aviation Safety Service and Re-
lated Programs;
(iv) Civil Aviation Economic Services and
Related Programs;
(v) United States Disaster Preparedness
and Response Services and Related Programs;
(vi) Federal Deposit Insurance Corporation
Services and Related Programs; and
(vii) Telecommunications Services and Re-
lated Programs.
(2) Agreement Between the Government of the
United States of America and the Government of
the Federated States of Micronesia on Extradition,
Mutual Assistance in Law Enforcement Matters and
Penal Sanctions Concluded Pursuant to Section
175(a) of the Compact of Free Association, as
amended;
(3) Agreement Between the Government of the
United States of America and the Government of
the Federated States of Micronesia on Labor Re-
cruitment Concluded Pursuant to Section 175(b) of
the Compact of Free Association, as amended;
(4) Agreement Concerning Procedures for the
Implementation of United States Economic Assist-
ance Provided in the Compact of Free Association,
183
•HJ 63 EH
as Amended, of Free Association Between the Gov-
ernment of the United States of America and Gov-
ernment of the Federated States of Micronesia;
(5) Agreement Between the Government of the
United States of America and the Government of
the Federated States of Micronesia Implementing
Section 215 and Section 216 of the Compact, as
Amended, Regarding a Trust Fund;
(6) Agreement Regarding the Military Use and
Operating Rights of the Government of the United
States in the Federated States of Micronesia Con-
cluded Pursuant to Sections 211(b), 321 and 323 of
the Compact of Free Association, as Amended; and
the
(7) Status of Forces Agreement Between the
Government of the United States of America and
the Government of the Federated States of Micro-
nesia Concluded Pursuant to Section 323 of the
Compact of Free Association, as Amended.
Section 463
(a) Except as set forth in subsection (b) of this sec-
tion, any reference in this Compact, as amended, to a pro-
vision of the United States Code or the Statutes at Large
of the United States constitutes the incorporation of the
language of such provision into this Compact, as amended,
184
•HJ 63 EH
as such provision was in force on the effective date of this
Compact, as amended.
(b) Any reference in Articles IV and Article VI of
Title One and Sections 174, 175, 178 and 342 to a provi-
sion of the United States Code or the Statutes at Large
of the United States or to the Privacy Act, the Freedom
of Information Act, the Administrative Procedure Act or
the Immigration and Nationality Act constitutes the incor-
poration of the language of such provision into this Com-
pact, as amended, as such provision was in force on the
effective date of this Compact, as amended, or as it may
be amended thereafter on a non-discriminatory basis ac-
cording to the constitutional processes of the United
States.
Article VII
Concluding Provisions
Section 471
Both the Government of the United States and the
Government of the Federated States of Micronesia shall
take all necessary steps, of a general or particular char-
acter, to ensure, no later than the entry into force date
of this Compact, as amended, the conformity of its laws,
regulations and administrative procedures with the provi-
sions of this Compact, as amended, or in the case of sub-
185
•HJ 63 EH
section (d) of section 141, as soon as reasonably possible
thereafter.
Section 472
This Compact, as amended, may be accepted, by sig-
nature or otherwise, by the Government of the United
States and the Government of the Federated States of Mi-
cronesia.
IN WITNESS WHEREOF, the undersigned, duly
authorized, have signed this Compact of Free Association,
as amended, which shall enter into force upon the ex-
change of diplomatic notes by which the Government of
the United States of America and the Government of the
Federated States of Micronesia inform each other about
the fulfillment of their respective requirements for entry
into force.
DONE at Pohnpei, Federated States of Micronesia,
in duplicate, this fourteenth (14) day of May, 2003, each
text being equally authentic.
Signed (May 14, 2003)
Signed (May 14, 2003)
For the Government of the
For the Government of the
United States of America:
Federated States of
Micronesia:
(b) COMPACT OF FREE ASSOCIATION, AS AMENDED,
BETWEEN THE GOVERNMENT OF THE UNITED STATES
OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC
OF THE MARSHALL ISLANDS
186
•HJ 63 EH
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE
REPUBLIC OF THE MARSHALL ISLANDS
Affirming that their Governments and their relation-
ship as Governments are founded upon respect for human
rights and fundamental freedoms for all, and that the peo-
ple of the Republic of the Marshall Islands have the right
to enjoy self-government; and
Affirming the common interests of the United States
of America and the Republic of the Marshall Islands in
creating and maintaining their close and mutually bene-
ficial relationship through the free and voluntary associa-
tion of their respective Governments; and
Affirming the interest of the Government of the
United States in promoting the economic advancement
and budgetary self-reliance of the Republic of the Marshall
Islands; and
Recognizing that their relationship until the entry
into force on October 21, 1986 of the Compact was based
upon the International Trusteeship System of the United
Nations Charter, and in particular Article 76 of the Char-
ter; and that pursuant to Article 76 of the Charter, the
people of the Republic of the Marshall Islands have pro-
gressively developed their institutions of self-government,
187
•HJ 63 EH
and that in the exercise of their sovereign right to self-
determination they, through their freely-expressed wishes,
have adopted a Constitution appropriate to their par-
ticular circumstances; and
Recognizing that the Compact reflected their common
desire to terminate the Trusteeship and establish a gov-
ernment-to-government relationship which was in accord-
ance with the new political status based on the freely ex-
pressed wishes of the people of the Republic of the Mar-
shall Islands and appropriate to their particular cir-
cumstances; and
Recognizing that the people of the Republic of the
Marshall Islands have and retain their sovereignty and
their sovereign right to self-determination and the inher-
ent right to adopt and amend their own Constitution and
form of government and that the approval of the entry
of the Government of the Republic of the Marshall Islands
into the Compact by the people of the Republic of the Mar-
shall Islands constituted an exercise of their sovereign
right to self-determination; and
Recognizing the common desire of the people of the
United States and the people of the Republic of the Mar-
shall Islands to maintain their close government-to-gov-
ernment relationship, the United States and the Republic
of the Marshall Islands:
188
•HJ 63 EH
NOW, THEREFORE, MUTUALLY AGREE to
continue and strengthen their relationship of free associa-
tion by amending the Compact, which continues to provide
a full measure of self-government for the people of the
Republic of the Marshall Islands; and
FURTHER AGREE that the relationship of free as-
sociation derives from and is as set forth in this Compact,
as amended, by the Governments of the United States and
the Republic of the Marshall Islands; and that, during
such relationship of free association, the respective rights
and responsibilities of the Government of the United
States and the Government of the Republic of the Mar-
shall Islands in regard to this relationship of free associa-
tion derive from and are as set forth in this Compact, as
amended.
TITLE ONE
GOVERNMENTAL RELATIONS
Article I
Self-Government
Section 111
The people of the Republic of the Marshall Islands,
acting through the Government established under their
Constitution, are self-governing.
189
•HJ 63 EH
Article II
Foreign Affairs
Section 121
(a) The Government of the Republic of the Marshall
Islands has the capacity to conduct foreign affairs and
shall do so in its own name and right, except as otherwise
provided in this Compact, as amended.
(b) The foreign affairs capacity of the Government
of the Republic of the Marshall Islands includes:
(1) the conduct of foreign affairs relating to law
of the sea and marine resources matters, including
the harvesting, conservation, exploration or exploi-
tation of living and non-living resources from the
sea, seabed or subsoil to the full extent recognized
under international law;
(2) the conduct of its commercial, diplomatic,
consular, economic, trade, banking, postal, civil avia-
tion, communications, and cultural relations, includ-
ing negotiations for the receipt of developmental
loans and grants and the conclusion of arrangements
with other governments and international and inter-
governmental organizations, including any matters
specially benefiting its individual citizens.
(c) The Government of the United States recognizes
that the Government of the Republic of the Marshall Is-
190
•HJ 63 EH
lands has the capacity to enter into, in its own name and
right, treaties and other international agreements with
governments and regional and international organizations.
(d) In the conduct of its foreign affairs, the Govern-
ment of the Republic of the Marshall Islands confirms that
it shall act in accordance with principles of international
law and shall settle its international disputes by peaceful
means.
Section 122
The Government of the United States shall support
applications by the Government of the Republic of the
Marshall Islands for membership or other participation in
regional or international organizations as may be mutually
agreed.
Section 123
(a) In recognition of the authority and responsibility
of the Government of the United States under Title Three,
the Government of the Republic of the Marshall Islands
shall consult, in the conduct of its foreign affairs, with
the Government of the United States.
(b) In recognition of the foreign affairs capacity of
the Government of the Republic of the Marshall Islands,
the Government of the United States, in the conduct of
its foreign affairs, shall consult with the Government of
the Republic of the Marshall Islands on matters that the
191
•HJ 63 EH
Government of the United States regards as relating to
or affecting the Government of the Republic of the Mar-
shall Islands.
Section 124
The Government of the United States may assist or
act on behalf of the Government of the Republic of the
Marshall Islands in the area of foreign affairs as may be
requested and mutually agreed from time to time. The
Government of the United States shall not be responsible
to third parties for the actions of the Government of the
Republic of the Marshall Islands undertaken with the as-
sistance or through the agency of the Government of the
United States pursuant to this section unless expressly
agreed.
Section 125
The Government of the United States shall not be
responsible for nor obligated by any actions taken by the
Government of the Republic of the Marshall Islands in the
area of foreign affairs, except as may from time to time
be expressly agreed.
Section 126
At the request of the Government of the Republic of
the Marshall Islands and subject to the consent of the re-
ceiving state, the Government of the United States shall
extend consular assistance on the same basis as for citi-
192
•HJ 63 EH
zens of the United States to citizens of the Republic of
the Marshall Islands for travel outside the Republic of the
Marshall Islands, the United States and its territories and
possessions.
Section 127
Except as otherwise provided in this Compact, as
amended, or its related agreements, all obligations, re-
sponsibilities, rights and benefits of the Government of the
United States as Administering Authority which resulted
from the application pursuant to the Trusteeship Agree-
ment of any treaty or other international agreement to the
Trust Territory of the Pacific Islands on October 20,
1986, are, as of that date, no longer assumed and enjoyed
by the Government of the United States.
Article III
Communications
Section 131
(a) The Government of the Republic of the Marshall
Islands has full authority and responsibility to regulate its
domestic and foreign communications, and the Govern-
ment of the United States shall provide communications
assistance as mutually agreed.
(b) The Government of the Republic of the Marshall
Islands has elected to undertake all functions previously
performed by the Government of the United States with
193
•HJ 63 EH
respect to domestic and foreign communications, except
for those functions set forth in a separate agreement en-
tered into pursuant to this section of the Compact, as
amended.
Section 132
The Government of the Republic of the Marshall Is-
lands shall permit the Government of the United States
to operate telecommunications services in the Republic of
the Marshall Islands to the extent necessary to fulfill the
obligations of the Government of the United States under
this Compact, as amended, in accordance with the terms
of separate agreements entered into pursuant to this sec-
tion of the Compact, as amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relation-
ship that exists between the United States and the Repub-
lic of the Marshall Islands, under the Compact, as amend-
ed, any person in the following categories may be admitted
to, lawfully engage in occupations in, and establish resi-
dence as a nonimmigrant in the United States and its ter-
ritories and possessions (the ‘‘United States’’) without re-
gard to paragraphs (5) or (7)(B)(i)(II) of section 212(a)
194
•HJ 63 EH
of the Immigration and Nationality Act, as amended, 8
U.S.C. 1182(a)(5) or (7)(B)(i)(II):
(1) a person who, on October 21, 1986, was a
citizen of the Trust Territory of the Pacific Islands,
as defined in Title 53 of the Trust Territory Code
in force on January 1, 1979, and has become and
remains a citizen of the Republic of the Marshall Is-
lands;
(2) a person who acquires the citizenship of the
Republic of the Marshall Islands at birth, on or after
the effective date of the Constitution of the Republic
of the Marshall Islands;
(3) an immediate relative of a person referred
to in paragraphs (1) or (2) of this section, provided
that such immediate relative is a naturalized citizen
of the Republic of the Marshall Islands who has
been an actual resident there for not less than five
years after attaining such naturalization and who
holds a certificate of actual residence, and further
provided, that, in the case of a spouse, such spouse
has been married to the person referred to in para-
graph (1) or (2) of this section for at least five
years, and further provided, that the Government of
the United States is satisfied that such naturalized
citizen meets the requirement of subsection (b) of
195
•HJ 63 EH
section 104 of Public Law 99–239 as it was in effect
on the day prior to the effective date of this Com-
pact, as amended;
(4) a naturalized citizen of the Republic of the
Marshall Islands who was an actual resident there
for not less than five years after attaining such nat-
uralization and who satisfied these requirements as
of April 30, 2003, who continues to be an actual
resident and holds a certificate of actual residence,
and whose name is included in a list furnished by
the Government of the Republic of the Marshall Is-
lands to the Government of the United States no
later than the effective date of the Compact, as
amended, in form and content acceptable to the Gov-
ernment of the United States, provided, that the
Government of the United States is satisfied that
such naturalized citizen meets the requirement of
subsection (b) of section 104 of Public Law 99–239
as it was in effect on the day prior to the effective
date of this Compact, as amended; or
(5) an immediate relative of a citizen of the Re-
public of the Marshall Islands, regardless of the im-
mediate relative’s country of citizenship or period of
residence in the Republic of the Marshall Islands, if
the citizen of the Republic of the Marshall Islands
196
•HJ 63 EH
is serving on active duty in any branch of the United
States Armed Forces, or in the active reserves.
(b) Notwithstanding subsection (a) of this section, a
person who is coming to the United States pursuant to
an adoption outside the United States, or for the purpose
of adoption in the United States, is ineligible for admission
under the Compact and the Compact, as amended. This
subsection shall apply to any person who is or was an ap-
plicant for admission to the United States on or after
March 1, 2003, including any applicant for admission in
removal proceedings (including appellate proceedings) on
or after March 1, 2003, regardless of the date such pro-
ceedings were commenced. This subsection shall have no
effect on the ability of the Government of the United
States or any United States State or local government to
commence or otherwise take any action against any person
or entity who has violated any law relating to the adoption
of any person.
(c) Notwithstanding subsection (a) of this section, no
person who has been or is granted citizenship in the Re-
public of the Marshall Islands, or has been or is issued
a Republic of the Marshall Islands passport pursuant to
any investment, passport sale, or similar program has
been or shall be eligible for admission to the United States
under the Compact or the Compact, as amended.
197
•HJ 63 EH
(d) A person admitted to the United States under the
Compact, or the Compact, as amended, shall be considered
to have the permission of the Government of the United
States to accept employment in the United States. An un-
expired Republic of the Marshall Islands passport with un-
expired documentation issued by the Government of the
United States evidencing admission under the Compact or
the Compact, as amended, shall be considered to be docu-
mentation establishing identity and employment author-
ization under section 274A(b)(1)(B) of the Immigration
and 
Nationality 
Act, 
as 
amended, 
U.S.C.
1324a(b)(1)(B). The Government of the United States
will take reasonable and appropriate steps to implement
and publicize this provision, and the Government of the
Republic of the Marshall Islands will also take reasonable
and appropriate steps to publicize this provision.
(e) For purposes of the Compact and the Compact,
as amended,
(1) the term ‘‘residence’’ with respect to a per-
son means the person’s principal, actual dwelling
place in fact, without regard to intent, as provided
in section 101(a)(33) of the Immigration and Na-
tionality Act, as amended, 8 U.S.C. 1101(a)(33),
and variations of the term ‘‘residence,’’ including
198
•HJ 63 EH
‘‘resident’’ and ‘‘reside,’’ shall be similarly con-
strued;
(2) the term ‘‘actual residence’’ means physical
presence in the Republic of the Marshall Islands
during eighty-five percent of the five-year period of
residency required by section 141(a)(3) and (4);
(3) the term ‘‘certificate of actual residence’’
means a certificate issued to a naturalized citizen by
the Government of the Republic of the Marshall Is-
lands stating that the citizen has complied with the
actual residence requirement of section 141(a)(3) or
(4);
(4) the term ‘‘nonimmigrant’’ means an alien
who is not an ‘‘immigrant’’ as defined in section
101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and
(5) the term ‘‘immediate relative’’ means a
spouse, or unmarried son or unmarried daughter
less than 21 years of age.
(f) The Immigration and Nationality Act, as amend-
ed, shall apply to any person admitted or seeking admis-
sion to the United States (other than a United States pos-
session or territory where such Act does not apply) under
the Compact or the Compact, as amended, and nothing
in the Compact or the Compact, as amended, shall be con-
199
•HJ 63 EH
strued to limit, preclude, or modify the applicability of,
with respect to such person:
(1) any ground of inadmissibility or deport-
ability under such Act (except sections 212(a)(5)
and 212(a)(7)(B)(i)(II) of such Act, as provided in
subsection (a) of this section), and any defense
thereto, provided that, section 237(a)(5) of such Act
shall be construed and applied as if it reads as fol-
lows: ‘‘any alien who has been admitted under the
Compact, or the Compact, as amended, who cannot
show that he or she has sufficient means of support
in the United States, is deportable;’’
(2) the authority of the Government of the
United States under section 214(a)(1) of such Act
to provide that admission as a nonimmigrant shall
be for such time and under such conditions as the
Government of the United States may by regulations
prescribe;
(3) except for the treatment of certain docu-
mentation for purposes of section 274A(b)(1)(B) of
such Act as provided by subsection (d) of this sec-
tion of the Compact, as amended, any requirement
under section 274A, including but not limited to sec-
tion 274A(b)(1)(E);
200
•HJ 63 EH
(4) section 643 of the Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996,
Public Law 104–208, and actions taken pursuant to
section 643; and
(5) the authority of the Government of the
United States otherwise to administer and enforce
the Immigration and Nationality Act, as amended,
or other United States law.
(g) Any authority possessed by the Government of the
United States under this section of the Compact or the
Compact, as amended, may also be exercised by the Gov-
ernment of a territory or possession of the United States
where the Immigration and Nationality Act, as amended,
does not apply, to the extent such exercise of authority
is lawful under a statute or regulation of such territory
or possession that is authorized by the laws of the United
States.
(h) Subsection (a) of this section does not confer on
a citizen of the Republic of the Marshall Islands the right
to establish the residence necessary for naturalization
under the Immigration and Nationality Act, as amended,
or to petition for benefits for alien relatives under that
Act. Subsection (a) of this section, however, shall not pre-
vent a citizen of the Republic of the Marshall Islands from
203
•HJ 63 EH
States, as the case may be, shall dictate the terms and
conditions of any such person’s stay.
Article V
Representation
Section 151
Relations between the Government of the United
States and the Government of the Republic of the Mar-
shall Islands shall be conducted in accordance with the
Vienna Convention on Diplomatic Relations. In addition
to diplomatic missions and representation, the Govern-
ments may establish and maintain other offices and des-
ignate other representatives on terms and in locations as
may be mutually agreed.
Section 152
(a) Any citizen or national of the United States who,
without authority of the United States, acts as the agent
of the Government of the Republic of the Marshall Islands
with regard to matters specified in the provisions of the
Foreign Agents Registration Act of 1938, as amended (22
U.S.C. 611 et seq.), that apply with respect to an agent
of a foreign principal shall be subject to the requirements
of such Act. Failure to comply with such requirements
shall subject such citizen or national to the same penalties
and provisions of law as apply in the case of the failure
of such an agent of a foreign principal to comply with such
204
•HJ 63 EH
requirements. For purposes of the Foreign Agents Reg-
istration Act of 1938, the Republic of the Marshall Islands
shall be considered to be a foreign country.
(b) Subsection (a) of this section shall not apply to
a citizen or national of the United States employed by the
Government of the Republic of the Marshall Islands with
respect to whom the Government of the Republic of the
Marshall Islands from time to time certifies to the Govern-
ment of the United States that such citizen or national
is an employee of the Republic of the Marshall Islands
whose principal duties are other than those matters speci-
fied in the Foreign Agents Registration Act of 1938, as
amended, that apply with respect to an agent of a foreign
principal. The agency or officer of the United States re-
ceiving such certifications shall cause them to be filed with
the Attorney General, who shall maintain a publicly avail-
able list of the persons so certified.
Article VI
Environmental Protection
Section 161
The Governments of the United States and the Re-
public of the Marshall Islands declare that it is their policy
to promote efforts to prevent or eliminate damage to the
environment and biosphere and to enrich understanding
of the natural resources of the Republic of the Marshall
205
•HJ 63 EH
Islands. In order to carry out this policy, the Government
of the United States and the Government of the Republic
of the Marshall Islands agree to the following mutual and
reciprocal undertakings:
(a) The Government of the United States:
(1) shall, for its activities controlled by the
U.S. Army at Kwajalein Atoll and in the Mid-
Atoll Corridor and for U.S. Army Kwajalein
Atoll activities in the Republic of the Marshall
Islands, continue to apply the Environmental
Standards and Procedures for United States
Army Kwajalein Atoll Activities in the Republic
of the Marshall Islands, unless and until those
Standards or Procedures are modified by mu-
tual agreement of the Governments of the
United States and the Republic of the Marshall
Islands;
(2) shall apply the National Environmental
Policy Act of 1969, 83 Stat. 852, 42 U.S.C.
4321 et seq., to its activities under the Com-
pact, as amended, and its related agreements as
if the Republic of the Marshall Islands were the
United States;
(3) in the conduct of any activity not de-
scribed in section 161(a)(1) requiring the prep-
206
•HJ 63 EH
aration of an Environmental Impact Statement
under section 161(a)(2), shall comply with
standards substantively similar to those re-
quired by the following laws of the United
States, taking into account the particular envi-
ronment of the Republic of the Marshall Is-
lands; the Endangered Species Act of 1973, as
amended, 16 U.S.C. 1531 et seq.; the Clean Air
Act, as amended, 42 U.S.C. 7401 et seq.; the
Clean Water Act (Federal Water Pollution Con-
trol Act), as amended, 33 U.S.C. 1251 et seq.;
Title I of the Marine Protection, Research and
Sanctuaries Act of 1972 (the Ocean Dumping
Act), 33 U.S.C. 1411 et seq.; the Toxic Sub-
stances Control Act, as amended, 15 U.S.C.
2601 et seq.; the Solid Waste Disposal Act, as
amended, 42 U.S.C. 6901 et seq.; and such
other environmental protection laws of the
United States and the Republic of the Marshall
Islands as may be agreed from time to time
with the Government of the Republic of the
Marshall Islands;
(4) shall, prior to conducting any activity
not described in section 161(a)(1) requiring the
preparation of an Environmental Impact State-
207
•HJ 63 EH
ment under section 161(a)(2), develop, as
agreed with the Government of the Republic of
the Marshall Islands, written environmental
standards and procedures to implement the
substantive provisions of the laws made applica-
ble to U.S. Government activities in the Repub-
lic of the Marshall Islands, pursuant to section
161(a)(3).
(b) The Government of the Republic of the
Marshall Islands shall continue to develop and im-
plement standards and procedures to protect its en-
vironment. As a reciprocal obligation to the under-
takings of the Government of the United States
under this Article, the Republic of the Marshall Is-
lands, taking into account its particular environ-
ment, shall continue to develop and implement
standards for environmental protection substantively
similar to those required of the Government of the
United States by section 161(a)(3) prior to its con-
ducting activities in the Republic of the Marshall Is-
lands, substantively equivalent to activities con-
ducted there by the Government of the United
States and, as a further reciprocal obligation, shall
enforce those standards.
208
•HJ 63 EH
(c) Section 161(a), including any standard or
procedure applicable thereunder, and section 161(b)
may be modified or superseded in whole or in part
by agreement of the Government of the United
States and the Government of the Republic of the
Marshall Islands.
(d) In the event that an Environmental Impact
Statement is no longer required under the laws of
the United States for major Federal actions signifi-
cantly affecting the quality of the human environ-
ment, the regulatory regime established under sec-
tions 161(a)(3) and 161(a)(4) shall continue to
apply to such activities of the Government of the
United States until amended by mutual agreement.
(e) The President of the United States may ex-
empt any of the activities of the Government of the
United States under this Compact, as amended, and
its related agreements from any environmental
standard or procedure which may be applicable
under sections 161(a)(3) and 161(a)(4) if the Presi-
dent determines it to be in the paramount interest
of the Government of the United States to do so,
consistent with Title Three of this Compact, as
amended, and the obligations of the Government of
the United States under international law. Prior to
209
•HJ 63 EH
any decision pursuant to this subsection, the views
of the Government of the Republic of the Marshall
Islands shall be sought and considered to the extent
practicable. If the President grants such an exemp-
tion, to the extent practicable, a report with his rea-
sons for granting such exemption shall be given
promptly to the Government of the Republic of the
Marshall Islands.
(f) The laws of the United States referred to in
section 161(a)(3) shall apply to the activities of the
Government of the United States under this Com-
pact, as amended, and its related agreements only to
the extent provided for in this section.
Section 162
The Government of the Republic of the Marshall Is-
lands may bring an action for judicial review of any ad-
ministrative agency action or any activity of the Govern-
ment 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 Dis-
trict Court for the District of Hawaii and the United
States District Court for the District of Columbia shall
have jurisdiction over such action or activity, and over ac-
tions brought under section 172(b) which relate to the ac-
tivities of the Government of the United States and its
210
•HJ 63 EH
officers and employees, governed by section 161, provided
that:
(a) Such actions may only be civil actions for
any appropriate civil relief other than punitive dam-
ages against the Government of the United States
or, where required by law, its officers in their official
capacity; no criminal actions may arise under this
section.
(b) Actions brought pursuant to this section
may be initiated only by the Government of the Re-
public of the Marshall Islands.
(c) Administrative agency actions arising under
section 161 shall be reviewed pursuant to the stand-
ard of judicial review set forth in 5 U.S.C. 706.
(d) The United States District Court for the
District of Hawaii and the United States District
Court for the District of Columbia shall have juris-
diction to issue all necessary processes, and the Gov-
ernment of the United States agrees to submit itself
to the jurisdiction of the court; decisions of the
United States District Court shall be reviewable in
the United States Court of Appeals for the Ninth
Circuit or the United States Court of Appeals for
the District of Columbia, respectively, or in the
211
•HJ 63 EH
United States Supreme Court as provided by the
laws of the United States.
(e) The judicial remedy provided for in this sec-
tion shall be the exclusive remedy for the judicial re-
view or enforcement of the obligations of the Gov-
ernment of the United States under this Article and
actions brought under section 172(b), which relate
to the activities of the Government of the United
States and its officers and employees governed by
section 161.
(f) In actions pursuant to this section, the Gov-
ernment of the Republic of the Marshall Islands
shall be treated as if it were a United States citizen.
Section 163
(a) For the purpose of gathering data necessary to
study the environmental effects of activities of the Govern-
ment of the United States subject to the requirements of
this Article, the Government of the Republic of the Mar-
shall Islands shall be granted access to facilities operated
by the Government of the United States in the Republic
of the Marshall Islands, to the extent necessary for this
purpose, except to the extent such access would unreason-
ably interfere with the exercise of the authority and re-
sponsibility of the Government of the United States under
Title Three.
212
•HJ 63 EH
(b) The Government of the United States, in turn,
shall be granted access to the Republic of the Marshall
Islands for the purpose of gathering data necessary to dis-
charge its obligations under this Article, except to the ex-
tent such access would unreasonably interfere with the ex-
ercise of the authority and responsibility of the Govern-
ment of the Republic of the Marshall Islands under Title
One, and to the extent necessary for this purpose shall
be granted access to documents and other information to
the same extent similar access is provided the Government
of the Republic of the Marshall Islands under the Freedom
of Information Act, 5 U.S.C. 552.
(c) The Government of the Republic of the Marshall
Islands shall not impede efforts by the Government of the
United States to comply with applicable standards and
procedures.
Article VII
General Legal Provisions
Section 171
Except as provided in this Compact, as amended, or
its related agreements, the application of the laws of the
United States to the Trust Territory of the Pacific Islands
by virtue of the Trusteeship Agreement ceased with re-
spect to the Marshall Islands on October 21, 1986, the
date the Compact went into effect.
213
•HJ 63 EH
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 Adminis-
trative Procedure Act, 5 U.S.C. 701-706, except that only
the Government of the Republic of the Marshall Islands
may seek judicial review under the Administrative Proce-
dure Act or judicial enforcement under the Freedom of
Information Act when such judicial review or enforcement
relates to the activities of the Government of the United
States governed by sections 161 and 162.
Section 173
The Governments of the United States and the Re-
public of the Marshall Islands agree to adopt and enforce
such measures, consistent with this Compact, as amended,
and its related agreements, as may be necessary to protect
the personnel, property, installations, services, programs
and official archives and documents maintained by the
Government of the United States in the Republic of the
214
•HJ 63 EH
Marshall Islands pursuant to this Compact, as amended,
and its related agreements and by the Government of the
Republic of the Marshall Islands in the United States pur-
suant to this Compact, Compact, as amended, and its re-
lated agreements.
Section 174
Except as otherwise provided in this Compact, as
amended, and its related agreements:
(a) The Government of the Republic of the
Marshall Islands, and its agencies and officials, shall
be immune from the jurisdiction of the courts of the
United States, and the Government of the United
States, and its agencies and officials, shall be im-
mune from the jurisdiction of the courts of the Re-
public of the Marshall Islands.
(b) The Government of the United States ac-
cepts responsibility for and shall pay:
(1) any unpaid money judgment rendered
by the High Court of the Trust Territory of the
Pacific Islands against the Government of the
United States with regard to any cause of ac-
tion arising as a result of acts or omissions of
the Government of the Trust Territory of the
Pacific Islands or the Government of the
United States prior to October 21, 1986;
215
•HJ 63 EH
(2) any claim settled by the claimant and
the Government of the Trust Territory of the
Pacific Islands but not paid as of the October
21, 1986; and
(3) settlement of any administrative claim
or of any action before a court of the Trust
Territory of the Pacific Islands or the Govern-
ment of the United States, arising as a result
of acts or omissions of the Government of the
Trust Territory of the Pacific Islands or the
Government of the United States.
(c) Any claim not referred to in section 174(b)
and arising from an act or omission of the Govern-
ment of the Trust Territory of the Pacific Islands or
the Government of the United States prior to the ef-
fective date of the Compact shall be adjudicated in
the same manner as a claim adjudicated according
to section 174(d). In any claim against the Govern-
ment of the Trust Territory of the Pacific Islands,
the Government of the United States shall stand in
the place of the Government of the Trust Territory
of the Pacific Islands. A judgment on any claim re-
ferred to in section 174(b) or this subsection, not
otherwise satisfied by the Government of the United
States, may be presented for certification to the
216
•HJ 63 EH
United States Court of Appeals for the Federal Cir-
cuit, or its successor courts, which shall have juris-
diction therefore, notwithstanding the provisions of
28 U.S.C. 1502, and which court’s decisions shall be
reviewable as provided by the laws of the United
States. The United States Court of Appeals for the
Federal Circuit shall certify such judgment, and
order payment thereof, unless it finds, after a hear-
ing, that such judgment is manifestly erroneous as
to law or fact, or manifestly excessive. In either of
such cases the United States Court of Appeals for
the Federal Circuit shall have jurisdiction to modify
such judgment.
(d) The Government of the Republic of the
Marshall Islands shall not be immune from the juris-
diction of the courts of the United States, and the
Government of the United States shall not be im-
mune from the jurisdiction of the courts of the Re-
public of the Marshall Islands in any civil case in
which an exception to foreign state immunity is set
forth in the Foreign Sovereign Immunities Act (28
U.S.C. 1602 et seq.) or its successor statutes.
Section 175
(a) A separate agreement, which shall come into ef-
fect simultaneously with this Compact, as amended, and
217
•HJ 63 EH
shall have the force of law, shall govern mutual assistance
and cooperation in law enforcement matters, including the
pursuit, capture, imprisonment and extradition of fugi-
tives from justice and the transfer of prisoners, as well
as other law enforcement matters. In the United States,
the laws of the United States governing international ex-
tradition, including 18 U.S.C. 3184, 3186, and 3188–95,
shall be applicable to the extradition of fugitives under the
separate agreement, and the laws of the United States
governing the transfer of prisoners, including 18 U.S.C.
4100–15, shall be applicable to the transfer of prisoners
under the separate agreement; and
(b) A separate agreement, which shall come into ef-
fect simultaneously with this Compact, as amended, and
shall have the force of law, shall govern requirements re-
lating to labor recruitment practices, including registra-
tion, reporting, suspension or revocation of authorization
to recruit persons for employment in the United States,
and enforcement for violations of such requirements.
Section 176
The Government of the 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
shall continue in full force and effect, subject to the con-
stitutional power of the courts of the Republic of the Mar-
218
•HJ 63 EH
shall Islands to grant relief from judgments in appropriate
cases.
Section 177
Section 177 of the Compact entered into force with
respect to the Marshall Islands on October 21, 1986 as
follows:
‘‘(a) The Government of the United States 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 Mar-
shall Islands, or the Federated States of Micronesia,
resulting from the nuclear testing program which
the Government of the United States conducted in
the Northern Marshall Islands between June 30,
1946, and August 18, 1958.
(b) The Government of the United States and
the Government of the Marshall Islands shall set
forth in a separate agreement provisions for the just
and adequate settlement of all such claims which
have arisen in regard to the Marshall Islands and its
citizens and which have not as yet been compensated
or which in the future may arise, for the continued
administration by the Government of the United
States of direct radiation related medical surveil-
219
•HJ 63 EH
lance and treatment programs and radiological mon-
itoring activities and for such additional programs
and activities as may be mutually agreed, and for
the assumption by the Government of the Marshall
Islands of responsibility for enforcement of limita-
tions on the utilization of affected areas developed in
cooperation with the Government of the United
States and for the assistance by the Government of
the United States in the exercise of such responsi-
bility as may be mutually agreed. This separate
agreement shall come into effect simultaneously with
this Compact and shall remain in effect in accord-
ance with its own terms.
(c) The Government of the United States shall
provide to the Government of the Marshall Islands,
on a grant basis, the amount of $150 million to be
paid and distributed in accordance with the separate
agreement referred to in this Section, and shall pro-
vide the services and programs set forth in this sep-
arate agreement, the language of which is incor-
porated into this Compact.’’
The Compact, as amended, makes no changes to, and has
no effect upon, Section 177 of the Compact, nor does the
Compact, as amended, change or affect the separate
agreement referred to in Section 177 of the Compact in-
220
•HJ 63 EH
cluding Articles IX and X of that separate agreement, and
measures taken by the parties thereunder.
Section 178
(a) The Federal agencies of the Government of the
United States that provide 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 em-
ployees of such agencies. Except as provided in section
178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C.
1304 shall apply exclusively to such administrative settle-
ments and payments.
(b) Claims under section 178(a) that cannot be set-
tled under section 178(a) shall be disposed of exclusively
in accordance with Article II of Title Four. Arbitration
awards rendered pursuant to this subsection shall be paid
out of funds under 31 U.S.C. 1304.
(c) The Government of the United States and the
Government of the Republic of the Marshall Islands shall,
in the separate agreement referred to in section 231, pro-
vide for:
(1) the administrative settlement of claims re-
ferred to in section 178(a), including designation of
local agents in each State of the Republic of the
221
•HJ 63 EH
Marshall Islands; such agents to be empowered to
accept, investigate and settle such claims, in a timely
manner, as provided in such separate agreements;
and
(2) arbitration, referred to in section 178(b), in
a timely manner, at a site convenient to the claim-
ant, in the event a claim is not otherwise settled
pursuant to section 178(a).
(d) The provisions of section 174(d) shall not apply
to claims covered by this section.
(e) Except as otherwise explicitly provided by law of
the United States, this Compact, as amended, or its re-
lated agreements, neither the Government of the United
States, its instrumentalities, nor any person acting on be-
half of the Government of the United States, shall be
named a party in any action based on, or arising out of,
the activity or activities of a recipient of any grant or other
assistance provided by the Government of the United
States (or the activity or activities of the recipient’s agen-
cy or any other person or entity acting on behalf of the
recipient).
Section 179
(a) The courts of the Republic of the Marshall Is-
lands shall not exercise criminal jurisdiction over the Gov-
ernment of the United States, or its instrumentalities.
222
•HJ 63 EH
(b) The courts of the Republic of the Marshall Is-
lands shall not exercise criminal jurisdiction over any per-
son if the Government of the United States provides notifi-
cation to the Government of the Republic of the Marshall
Islands that such person was acting on behalf of the Gov-
ernment of the United States, for actions taken in further-
ance of section 221 or 224 of this amended Compact, or
any other provision of law authorizing financial, program,
or service assistance to the Republic of the Marshall Is-
lands.
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 ex-
ists 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
223
•HJ 63 EH
care, the environment, public sector capacity building, and
private sector development, or for other areas as mutually
agreed, with priorities in the education and health care
sectors. Consistent with the medium-term budget and in-
vestment framework described in subsection (f) of this sec-
tion, the proposed division of this amount among the iden-
tified areas shall require the concurrence of both the Gov-
ernment of the United States and the Government of the
Republic of the Marshall Islands, through the Joint Eco-
nomic Management and Financial Accountability Com-
mittee described in section 214. The Government of the
United States shall disburse the grant assistance and
monitor the use of such grant assistance in accordance
with the provisions of this Article and an Agreement Con-
cerning Procedures for the Implementation of United
States Economic Assistance Provided in the Compact, as
Amended, of Free Association Between the Government
of the United States of America and the Government of
the Republic of the Marshall Islands (‘‘Fiscal Procedures
Agreement’’) which shall come into effect simultaneously
with this Compact, as amended.
(1) EDUCATION.—United States grant assist-
ance shall be made available in accordance with the
strategic framework described in subsection (f) of
this section to support and improve the educational
224
•HJ 63 EH
system of the Republic of the Marshall Islands and
develop the human, financial, and material resources
necessary for the Republic of the Marshall Islands to
perform these services. Emphasis should be placed
on advancing a quality basic education system.
(2) HEALTH.—United States grant assistance
shall be made available in accordance with the stra-
tegic framework described in subsection (f) of this
section to support and improve the delivery of pre-
ventive, curative and environmental care and develop
the human, financial, and material resources nec-
essary for the Republic of the Marshall Islands to
perform these services.
(3) PRIVATE SECTOR DEVELOPMENT.—United
States grant assistance shall be made available in
accordance with the strategic framework described
in subsection (f) of this section to support the ef-
forts of the Republic of the Marshall Islands to at-
tract foreign investment and increase indigenous
business activity by vitalizing the commercial envi-
ronment, ensuring fair and equitable application of
the law, promoting adherence to core labor stand-
ards, maintaining progress toward privatization of
state-owned and partially state-owned enterprises,
and engaging in other reforms.
225
•HJ 63 EH
(4) CAPACITY BUILDING IN THE PUBLIC SEC-
TOR.—United States grant assistance shall be made
available in accordance with the strategic framework
described in subsection (f) of this section to support
the efforts of the Republic of the Marshall Islands
to build effective, accountable and transparent na-
tional and local government and other public sector
institutions and systems.
(5) ENVIRONMENT.—United States grant as-
sistance shall be made available in accordance with
the strategic framework described in subsection (f)
of this section to increase environmental protection;
establish and manage conservation areas; engage in
environmental infrastructure planning, design con-
struction and operation; and to involve the citizens
of the Republic of the Marshall Islands in the proc-
ess of conserving their country’s natural resources.
(b) KWAJALEIN ATOLL.—
(1) Of the total grant assistance made available
under subsection (a) of this section, the amount
specified herein shall be allocated annually from fis-
cal year 2004 through fiscal year 2023 (and there-
after in accordance with the Agreement between the
Government of the United States and the Govern-
ment of the Republic of the Marshall Islands Re-
226
•HJ 63 EH
garding Military Use and Operating Rights) to ad-
vance the objectives and specific priorities set forth
in subsections (a) and (d) of this section and the
Fiscal Procedures Agreement, to address the special
needs of the community at Ebeye, Kwajalein Atoll
and other Marshallese communities within Kwajalein
Atoll. This United States grant assistance shall be
made available, in accordance with the medium-term
budget and investment framework described in sub-
section (f) of this section, to support and improve
the infrastructure and delivery of services and de-
velop the human and material resources necessary
for the Republic of the Marshall Islands to carry out
its responsibility to maintain such infrastructure and
deliver such services. The amount of this assistance
shall be $3,100,000, with an inflation adjustment as
provided in section 218, from fiscal year 2004
through fiscal year 2013 and the fiscal year 2013
level of funding, with an inflation adjustment as pro-
vided in section 218, will be increased by $2 million
for fiscal year 2014. The fiscal year 2014 level of
funding, with an inflation adjustment as provided in
section 218, will be made available from fiscal year
2015 through fiscal year 2023 (and thereafter as
noted above).
227
•HJ 63 EH
(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 pay-
ment from fiscal year 2004 through fiscal year 2023
(and thereafter in accordance with the Agreement
between the Government of the United States and
the Government of the Republic of the Marshall Is-
lands Regarding Military Use and Operating Rights)
of $1.9 million. This grant assistance will be subject
to the Fiscal Procedures Agreement and will be ad-
justed for inflation under section 218 and used to
address the special needs of the community at
Ebeye, Kwajalein Atoll and other Marshallese com-
munities 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 amend-
ed, $200,000, with an inflation adjustment as pro-
vided 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 Govern-
228
•HJ 63 EH
ment of the Republic of the Marshall Islands Re-
garding Military Use and Operating Rights) for a
grant to support increased participation of the Gov-
ernment of the Republic of the Marshall Islands En-
vironmental Protection Authority in the annual U.S.
Army Kwajalein Atoll Environmental Standards
Survey and to promote a greater Government of the
Republic of the Marshall Islands capacity for inde-
pendent analysis of the Survey’s findings and con-
clusions.
(c) HUMANITARIAN ASSISTANCE-REPUBLIC OF THE
MARSHALL ISLANDS PROGRAM.—In recognition of the
special development needs of the Republic of the Marshall
Islands, the Government of the United States shall make
available to the Government of the Republic of the Mar-
shall 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 Mar-
shall Islands (‘‘HARMI’’) Program with emphasis on
health, education, and infrastructure (including transpor-
tation), projects and such other projects as mutually
agreed. The terms and conditions of the HARMI shall be
set forth in the Agreement Regarding the Military Use
and Operating Rights of the Government of the United
States in the Republic of the Marshall Islands Concluded
229
•HJ 63 EH
Pursuant to Sections 321 and 323 of the Compact of Free
Association, as Amended, which shall come into effect si-
multaneously with the amendments to this Compact.
(d) PUBLIC INFRASTRUCTURE.—
(1) Unless otherwise agreed, not less than 30
percent and not more than 50 percent of U.S. an-
nual grant assistance provided under this section
shall be made available in accordance with a list of
specific projects included in the infrastructure im-
provement and maintenance plan prepared by the
Government of the Republic of the Marshall Islands
as part of the strategic framework described in sub-
section (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 contribu-
tion from the Government of the Republic of the
Marshall Islands, as a contribution to an Infrastruc-
ture Maintenance Fund. Administration of the In-
frastructure Maintenance Fund shall be governed by
the Fiscal Procedures Agreement.
(e) DISASTER ASSISTANCE EMERGENCY FUND.—Of
the total grant assistance made available under subsection
(a) of this section, an amount of two hundred thousand
230
•HJ 63 EH
dollars ($200,000) shall be provided annually, with an
equal contribution from the Government of the Republic
of the Marshall Islands, as a contribution to a Disaster
Assistance Emergency Fund (‘‘DAEF’’). Any funds from
the DAEF may be used only for assistance and rehabilita-
tion resulting from disasters and emergencies. The funds
will be accessed upon declaration of a State of Emergency
by the Government of the Republic of the Marshall Is-
lands, with the concurrence of the United States Chief of
Mission to the Republic of the Marshall Islands. Adminis-
tration of the DAEF shall be governed by the Fiscal Pro-
cedures 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 projec-
tions on a multi-year rolling basis. Each of the sectors
and areas named in subsections (a), (b), and (d) of this
section, or other sectors and areas as mutually agreed,
shall be accorded specific treatment in the framework.
Those portions of the framework that contemplate the use
of United States grant funds shall require the concurrence
231
•HJ 63 EH
of both the Government of the United States and the Gov-
ernment of the Republic of the Marshall Islands.
Section 212 - Kwajalein Impact and Use
The Government of the United States shall provide
to the Government of the Republic of the Marshall Islands
in conjunction with section 321(a) of the Compact, as
amended, and the agreement between the Government of
the United States and the Government of the Republic of
the Marshall Islands regarding military use and operating
rights, a payment in fiscal year 2004 of $15,000,000, with
no adjustment for inflation. In fiscal year 2005 and
through fiscal year 2013, the annual payment will be the
fiscal year 2004 amount ($15,000,000) with an inflation
adjustment as provided under section 218. In fiscal year
2014, the annual payment will be $18,000,000 (with no
adjustment for inflation) or the fiscal year 2013 amount
with an inflation adjustment under section 218, whichever
is greater. For fiscal year 2015 through fiscal year 2023
(and thereafter in accordance with the Agreement between
the Government of the United States and the Government
of the Republic of the Marshall Islands Regarding Military
Use and Operating Rights) the annual payment will be
the fiscal year 2014 amount, with an inflation adjustment
as provided under section 218.
Section 213 - Accountability
232
•HJ 63 EH
(a) Regulations and policies normally applicable to
United States financial assistance to its state and local
governments, as set forth in the Fiscal Procedures Agree-
ment, shall apply to each grant described in section 211,
and to grants administered under section 221 below, ex-
cept as modified in the separate agreements referred to
in section 231 of this Compact, as amended, or by U.S.
law. As set forth in the Fiscal Procedures Agreement, rea-
sonable terms and conditions, including annual perform-
ance indicators that are necessary to ensure effective use
of United States assistance and reasonable progress to-
ward achieving program objectives may be attached. In ad-
dition, the United States may seek appropriate remedies
for noncompliance with the terms and conditions attached
to the assistance, or for failure to comply with section 234,
including withholding assistance.
(b) The Government of the United States shall, for
each fiscal year of the twenty years during which assist-
ance is to be provided on a sector grant basis under sec-
tion 211 (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 re-
quired under Article VIII (2) of the Fiscal Procedures
233
•HJ 63 EH
Agreement or (ii) $500,000. Such amount will not be ad-
justed for inflation under section 218 or otherwise.
Section 214 - Joint Economic Management and Financial
Accountability Committee
The Governments of the United States and the Re-
public of the Marshall Islands shall establish a Joint Eco-
nomic Management and Financial Accountability Com-
mittee, composed of a U.S. chair, two other members from
the Government of the United States and two members
from the Government of the Republic of the Marshall Is-
lands. 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 de-
scribed 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 avail-
able under this Title. The establishment and operations
of the Joint Economic Management and Financial Ac-
countability Committee shall be governed by the Fiscal
Procedures Agreement.
234
•HJ 63 EH
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
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
Between the Government of the United States of America
and the Government of the Republic of the Marshall Is-
lands Implementing Section 216 and Section 217 of the
Compact, as Amended, Regarding a Trust Fund (‘‘Trust
Fund Agreement’’), which shall come into effect simulta-
neously 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.
235
•HJ 63 EH
(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
Agreement or on October 1, 2003, whichever is later,
$2,500,000 prior to October 1, 2004, and $2,500,000
prior to October 1, 2005. Any funds received by the Re-
public of the Marshall Islands under section 111(d) of
Public Law 99–239 (January 14, 1986), or successor pro-
visions, would be contributed to the Trust Fund as a Re-
public 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 Federal or state taxes in the United States or any taxes
in the Republic of the Marshall Islands. The Trust Fund
Agreement shall also provide for annual reports to the
Government of the United States and to the Government
of the Republic of the Marshall Islands. The Trust Fund
Agreement shall provide for appropriate distributions of
trust fund proceeds to the Republic of the Marshall Is-
lands and for appropriate remedies for the failure of the
Republic of the Marshall Islands to use income of the
236
•HJ 63 EH
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 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 termi-
nated, the provisions of sections 451–453 of the Compact,
as amended, and the Trust Fund Agreement shall govern
treatment of any U.S. contributions to the Trust Fund
or accrued income thereon.
Section 217 - Annual Grant Funding and Trust Fund
Contributions
The funds described in sections 211, 212, 213(b),
and 216 shall be made available as follows:
[In millions of dollars]
Fiscal year
Annual Grants
Section 211
Audit Grant
Section 213(b)
Trust Fund
Section 216 (a&c)
Kwajalein Impact
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
237
•HJ 63 EH
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 Gov-
ernment of the United States for that year pursuant to
this Article are not completely obligated by the Govern-
ment of the Republic of the Marshall Islands, the unobli-
gated balances shall remain available in addition to the
funds to be provided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) SERVICES.—The Government of the United
States shall make available to the Republic of the Marshall
Islands, in accordance with and to the extent provided in
the Federal Programs and Services Agreement referred to
in Section 231, the services and related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
238
•HJ 63 EH
(3) the United States Federal Aviation Admin-
istration;
(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 pro-
grams shall have the authority to implement the relevant
provisions of the Federal Programs and Services Agree-
ment referred to in section 231.
(b) PROGRAMS.—
(1) Other than the services and programs cov-
ered by subsection (a) of this section, and to the ex-
tent authorized by the Congress of the United
States, the Government of the United States shall
make available to the Republic of the Marshall Is-
lands the services and programs that were available
to the Republic of the Marshall Islands on the effec-
tive date of this Compact, as amended, to the extent
that such services and programs continue to be
available to State and local governments of the
United States. As set forth in the Fiscal Procedures
239
•HJ 63 EH
Agreement, funds provided under subsection (a) of
section 211 shall be considered to be local revenues
of the Government of the Republic of the Marshall
Islands when used as the local share required to ob-
tain 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 Pro-
grams and Services Agreement, including the authority to
monitor and administer all service and program assistance
provided by the United States to the Republic of the Mar-
shall Islands. The Federal Programs and Services Agree-
ment 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 oper-
ating in the Republic of the Marshall Islands shall be sub-
240
•HJ 63 EH
ject to all applicable criteria, standards, reporting require-
ments, auditing procedures, and other rules and regula-
tions applicable to such programs and services when oper-
ating in the United States.
(e) The Government of the United States shall make
available to the 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 Gov-
ernment of the Republic of the Marshall Islands may agree
from time to time to extend to the Republic of the Mar-
shall Islands additional United States grant assistance,
services and programs, as provided under the laws of the
United States. Unless inconsistent with such laws, or oth-
erwise specifically precluded by the Government of the
United States at the time such additional grant assistance,
services, or programs are extended, the Federal Programs
and Services Agreement shall apply to any such assist-
ance, 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
241
•HJ 63 EH
for the operations of the services and programs provided
pursuant to this Article, and such facilities as are provided
by the Government of the Republic of the Marshall Islands
at no cost to the Government of the United States as of
the effective date of this Compact, as amended, or as may
be mutually agreed thereafter.
Section 224
The Government of the Republic of the Marshall Is-
lands may request, from the time to time, technical assist-
ance from the Federal agencies and institutions of the
Government of the United States, which are authorized
to grant such technical assistance in accordance with its
laws. If technical assistance is granted pursuant to such
a request, the Government of the United States shall pro-
vide the technical assistance in a manner which gives pri-
ority consideration to the Republic of the Marshall Islands
over other recipients not a part of the United States, its
territories or possessions, and equivalent consideration to
the Republic of the Marshall Islands with respect to other
states in Free Association with the United States. Such
assistance shall be made available on a reimbursable or
non-reimbursable basis to the extent provided by United
States law.
242
•HJ 63 EH
Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrange-
ments of the services and programs provided for in section
221 of this Compact, as amended, as well as the legal sta-
tus of agencies of the Government of the United States,
their civilian employees and contractors, and the depend-
ents of such personnel while present in the Republic of
the Marshall Islands, and other arrangements in connec-
tion with the assistance, services, or programs furnished
by the Government of the United States, are set forth in
a Federal Programs and Services Agreement which shall
come into effect simultaneously with this Compact, as
amended.
Section 232
The Government of the United States, in consultation
with the Government of the Republic of the Marshall Is-
lands, shall determine and implement procedures for the
periodic audit of all grants and other assistance made
under Article I of this Title and of all funds expended for
the services and programs provided under Article II of this
Title. Further, in accordance with the Fiscal Procedures
Agreement described in subsection (a) of section 211, the
Comptroller General of the United States shall have such
243
•HJ 63 EH
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 Gov-
ernment of the United States, in accordance with its con-
stitutional processes, shall constitute a pledge by the
United States that the sums and amounts specified as
grants in section 211 of this Compact, as amended, shall
be appropriated and paid to the Republic of the Marshall
Islands for such period as those provisions of this Com-
pact, as amended, remain in force, provided that the Re-
public of the Marshall Islands complies with the terms and
conditions of this Title and related subsidiary agreements.
Section 234
The Government of the Republic of the Marshall 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
investigating whether Compact funds, or any other assist-
ance authorized under this Compact, as amended, have,
or are being, used for purposes other than those set forth
in this Compact, as amended, or its subsidiary agree-
ments. In carrying out this investigative authority, such
United States Government representatives may request
244
•HJ 63 EH
that the Government of the Republic of the Marshall Is-
lands subpoena documents and records and compel testi-
mony in accordance with the laws and Constitution of the
Republic of the Marshall Islands. Such assistance by the
Government of the Republic of the Marshall Islands to the
Government of the United States shall not be unreason-
ably withheld. The obligation of the Government of the
Marshall Islands to fulfill its pledge herein is a condition
to its receiving payment of such funds or other assistance
authorized under this Compact, as amended. The Govern-
ment of the United States shall pay any reasonable costs
for extraordinary services executed by the Government of
the Marshall Islands in carrying out the provisions of this
section.
Article IV
Trade
Section 241
The Republic of the Marshall Islands is not included
in the customs territory of the United States.
Section 242
The President shall proclaim the following tariff
treatment for articles imported from the Republic of the
Marshall Islands which shall apply during the period of
effectiveness of this title:
245
•HJ 63 EH
(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 exempt from duty; but the quantity of tuna
given duty-free treatment under this paragraph for
any calendar year shall be counted against the ag-
gregated quantity of tuna in airtight containers that
is dutiable under rate column numbered 1 of such
heading 1604.14.22 for that calendar year.
(c) The duty-free treatment provided under
subsection (a) shall not apply to:
(1) watches, clocks, and timing apparatus
provided for in Chapter 91, excluding heading
246
•HJ 63 EH
9113, of the Harmonized Tariff Schedule of the
United States;
(2) buttons (whether finished or not fin-
ished) provided for in items 9606.21.40 and
9606.29.20 of such Schedule;
(3) textile and apparel articles which are
subject to textile agreements; and
(4) footwear, handbags, luggage, flat
goods, work gloves, and leather wearing apparel
which were not eligible articles for purposes of
title V of the Trade Act of 1974 (19 U.S.C.
2461, et seq.) on April 1, 1984.
(d) If the cost or value of materials produced
in the customs territory of the United States is in-
cluded with respect to an eligible article which is a
product of the 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 de-
termining the percentage referred to in section
503(a)(2) of title V of the Trade Act of 1974.
Section 243
247
•HJ 63 EH
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 Har-
monized 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 treat-
ment no less favorable than that accorded like products
of any foreign country with respect to customs duties or
charges of a similar nature and with respect to laws and
regulations relating to importation, exportation, taxation,
sale, distribution, storage or use.
(b) The provisions of subsection (a) shall not apply
to advantages accorded by the Republic of the Marshall
Islands by virtue of their full membership in the Pacific
Island Countries Trade Agreement (PICTA), done on Au-
gust, 18, 2001, to those governments listed in Article 26
of PICTA, as of the date the Compact, as amended, is
signed.
(c) Prior to entering into consultations on, or con-
cluding, a free trade agreement with governments not list-
ed in Article 26 of PICTA, the Republic of the Marshall
Islands shall consult with the United States regarding
248
•HJ 63 EH
whether or how subsection (a) of section 244 shall be ap-
plied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official cir-
culating legal tender of the Republic of the Marshall Is-
lands. Should the Government of the Republic of the Mar-
shall Islands act to institute another currency, the terms
of an appropriate currency transitional period shall be as
agreed with the Government of the United States.
Section 252
The Government of the Republic of the Marshall Is-
lands may, with respect to United States persons, tax in-
come derived from sources within its respective jurisdic-
tion, property situated therein, including transfers of such
property by gift or at death, and products consumed there-
in, in such manner as the Government of the Republic of
the Marshall Islands deems appropriate. The determina-
tion of the source of any income, or the situs of any prop-
erty, shall for purposes of this Compact, as amended, be
made according to the United States Internal Revenue
Code.
Section 253
249
•HJ 63 EH
A citizen of the Republic of the Marshall Islands,
domiciled therein, shall be exempt from estate, gift, and
generation-skipping transfer taxes imposed by the Govern-
ment of the United States, provided that such citizen of
the Republic of the Marshall Islands is neither a citizen
nor a resident of the United States.
Section 254
(a) In determining any income tax imposed by the
Government of the Republic of the Marshall Islands, the
Government of the Republic of the Marshall Islands shall
have authority to impose tax upon income derived by a
resident of the Republic of the Marshall Islands from
sources without the Republic of the Marshall Islands, in
the same manner and to the same extent as the Govern-
ment of the Republic of the Marshall Islands imposes tax
upon income derived from within its own jurisdiction. If
the Government of the Republic of the Marshall Islands
exercises such authority as provided in this subsection,
any individual resident of the Republic of the Marshall Is-
lands who is subject to tax by the Government of the
United States on income which is also taxed by the Gov-
ernment of the Republic of the Marshall Islands shall be
relieved of liability to the Government of the United States
for the tax which, but for this subsection, would otherwise
be imposed by the Government of the United States on
250
•HJ 63 EH
such income. However, the relief from liability to the
United States Government referred to in the preceding
sentence means only relief in the form of the foreign tax
credit (or deduction in lieu thereof) available with respect
to the income taxes of a possession of the United States,
and relief in the form of the exclusion under section 911
of the Internal Revenue Code of 1986. For purposes of
this section, the term ‘‘resident of the Republic of the
Marshall Islands’’ shall be deemed to include any person
who was physically present in the Republic of the Marshall
Islands for a period of 183 or more days during any tax-
able year.
(b) If the Government of the Republic of the Marshall
Islands subjects income to taxation substantially similar
to that which was imposed by the Trust Territory Code
in effect on January 1, 1980, such Government shall be
deemed to have exercised the authority described in sec-
tion 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the U.S. In-
ternal Revenue Code of 1986, the term ‘‘North American
Area’’ shall include the Republic of the Marshall Islands.
251
•HJ 63 EH
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 Republic of the Marshall Islands.
(b) This authority and responsibility includes:
(1) the obligation to defend the Republic of the
Marshall Islands and its people from attack or
threats thereof as the United States and its citizens
are defended;
(2) the option to foreclose access to or use of
the Republic of the Marshall Islands by military per-
sonnel or for the military purposes of any third
country; and
(3) the option to establish and use military
areas and facilities in the Republic of the Marshall
Islands, subject to the terms of the separate agree-
ments referred to in sections 321 and 323.
(c) The Government of the United States confirms
that it shall act in accordance with the principles of inter-
national law and the Charter of the United Nations in the
exercise of this authority and responsibility.
252
•HJ 63 EH
Section 312
Subject to the terms of any agreements negotiated
in accordance with sections 321 and 323, the Government
of the United States may conduct within the lands, waters
and airspace of the Republic of the Marshall Islands the
activities and operations necessary for the exercise of its
authority and responsibility under this Title.
Section 313
(a) The Government of the Republic of the Marshall
Islands shall refrain from actions that the Government of
the United States determines, after appropriate 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 Gov-
ernment of the United States referred to in this section
shall be made only at senior interagency levels of the Gov-
ernment of the United States.
(c) The Government of the Republic of the Marshall
Islands shall be afforded, on an expeditious basis, an op-
portunity to raise its concerns with the United States Sec-
retary of State personally and the United States Secretary
253
•HJ 63 EH
of Defense personally regarding any determination made
in accordance with this section.
Section 314
(a) Unless otherwise agreed, the Government of the
United States shall not, in the Republic of the Marshall
Islands:
(1) test by detonation or dispose of any nuclear
weapon, nor test, dispose of, or discharge any toxic
chemical or biological weapon; or
(2) test, dispose of, or discharge any other ra-
dioactive, toxic chemical or biological materials in an
amount or manner that 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 emer-
gency declared by the President of the United States, a
state of war declared by the Congress of the United States
or as necessary to defend against an actual or impending
armed attack on the United States, the Republic of the
Marshall Islands or the Federated States of Micronesia,
the Government of the United States shall not store in
the Republic of the Marshall Islands or the Federated
States of Micronesia any toxic chemical weapon, nor any
radioactive materials nor any toxic chemical materials in-
tended for weapons use.
254
•HJ 63 EH
(c) Radioactive, toxic chemical, or biological materials
not intended for weapons use shall not be affected by sec-
tion 314(b).
(d) No material or substance referred to in this sec-
tion shall be stored in the Republic of the Marshall Islands
except in an amount and manner which would not be haz-
ardous to public health or safety. In determining what
shall be an amount or manner which would be hazardous
to public health or safety under this section, the Govern-
ment of the United States shall comply with any applicable
mutual agreement, international guidelines accepted by
the Government of the United States, and the laws of the
United States and their implementing regulations.
(e) Any exercise of the exemption authority set forth
in section 161(e) shall have no effect on the obligations
of the Government of the United States under this section
or on the application of this subsection.
(f) The provisions of this section shall apply in the
areas in which the Government of the 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
members of the armed forces of other countries to use
255
•HJ 63 EH
military areas and facilities in the Republic of the Mar-
shall 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 facili-
ties, other than for transit and overflight purposes, shall
be subject to consultation with and, in the case of major
units, approval of the Government of the Republic of the
Marshall Islands.
Section 316
The authority and responsibility of the Government
of the United States under this Title may not be trans-
ferred or otherwise assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and
use by the Government of the United States of military
areas and facilities in the 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 responsi-
bility under this Title, the Government of the United
States requires the use of areas within the Republic of
the Marshall Islands in addition to those for which specific
arrangements are concluded pursuant to section 321(a),
256
•HJ 63 EH
it may request the Government of the Republic of the Mar-
shall Islands to satisfy those requirements through leases
or other arrangements. The Government of the Republic
of the Marshall Islands shall sympathetically consider any
such request and shall establish suitable procedures to dis-
cuss it with and provide a prompt response to the Govern-
ment of the United States.
(c) The Government of the United States recognizes
and respects the scarcity and special importance of land
in the Republic of the Marshall Islands. In making any
requests pursuant to section 321(b), the Government of
the United States shall follow the policy of requesting the
minimum area necessary to accomplish the required secu-
rity and defense purpose, of requesting only the minimum
interest in real property necessary to support such pur-
pose, and of requesting first to satisfy its requirement
through public real property, where available, rather than
through private real property.
Section 322
The Government of the United States shall provide
and maintain fixed and floating aids to navigation in the
Republic of the Marshall Islands at least to the extent nec-
essary for the exercise of its authority and responsibility
under this Title.
Section 323
257
•HJ 63 EH
The military operating rights of the Government of
the United States and the legal status and contractual ar-
rangements of the United States Armed Forces, their
members, and associated civilians, while present in the Re-
public of the Marshall Islands are set forth in separate
agreements, which shall remain in effect in accordance
with the terms of such agreements.
Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended,
and its related agreements, the Government of the United
States, exclusively, has assumed and enjoys, as to the Re-
public of the Marshall Islands, all obligations, responsibil-
ities, 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-
258
•HJ 63 EH
ment of the United States shall be preceded by ap-
propriate consultation with the Government of the
Republic of the Marshall Islands.
Article IV
Service in Armed Forces of the United States
Section 341
Any person entitled to the privileges set forth in Sec-
tion 141 (with the exception of any person described in
section 141(a)(5) who is not a citizen of the Republic of
the Marshall Islands) shall be eligible to volunteer for serv-
ice in the Armed Forces of the United States, but shall
not be subject to involuntary induction into military serv-
ice of the United States as long as such person has resided
in the United States for a period of less than one year,
provided that no time shall count towards this one year
while a person admitted to the United States under the
Compact, or the Compact, as amended, is engaged in full-
time study in the United States. Any person described in
section 141(a)(5) who is not a citizen of the Republic of
the Marshall Islands shall be subject to United States laws
relating to selective service.
Section 342
The Government of the United States shall have en-
rolled, at any one time, at least one qualified student from
the Republic of the Marshall Islands, as may be nominated
259
•HJ 63 EH
by the Government of the Republic of the Marshall Is-
lands, 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 the provisions of 46 U.S.C. 1295b(b)(6)(C)
shall not apply to the enrollment of students pursu-
ant to section 342(b) of this Compact, as amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the
Government of the Republic of the Marshall Islands shall
continue to maintain a Joint Committee empowered to
consider disputes arising under the implementation of this
Title and its related agreements.
(b) The membership of the Joint Committee shall
comprise selected senior officials of the two Governments.
The senior United States military commander in the Pa-
cific area shall be the senior United States member of the
Joint Committee. For the meetings of the Joint Com-
mittee, each of the two Governments may designate addi-
tional or alternate representatives as appropriate for the
subject matter under consideration.
260
•HJ 63 EH
(c) Unless otherwise mutually agreed, the Joint Com-
mittee shall meet annually at a time and place to be des-
ignated, after appropriate consultation, by the Govern-
ment of the United States. The Joint Committee also shall
meet promptly upon request of either of its members. The
Joint Committee shall follow such procedures, including
the establishment of functional subcommittees, as the
members may from time to time agree. Upon notification
by the Government of the United States, the Joint Com-
mittee of the United States and the Republic of the Mar-
shall Islands shall meet promptly in a combined session
with the Joint Committee established and maintained by
the Government of the United States and the Government
of the Federated States of Micronesia to consider matters
within the jurisdiction of the two Joint Committees.
(d) Unresolved issues in the Joint Committee shall
be referred to the Governments for resolution, and the
Government of the Republic of the Marshall Islands shall
be afforded, on an expeditious basis, an opportunity to
raise its concerns with the United States Secretary of De-
fense personally regarding any unresolved issue which
threatens its continued association with the Government
of the United States.
Section 352
262
•HJ 63 EH
(c) Petitions under section 353(b)(1) shall be treated
as if they were made by citizens of the United States.
Section 354
(a) The Government of the United States and the
Government of the Republic of the Marshall Islands are
jointly committed to continue their security and defense
relations, as set forth in this Title. Accordingly, it is the
intention of the two countries that the provisions of this
Title shall remain binding as long as this Compact, as
amended, remains in effect, and thereafter as mutually
agreed, unless earlier terminated by mutual agreement
pursuant to section 441, or amended pursuant to Article
III of Title Four. If at any time the Government of the
United States, or the Government of the Republic of the
Marshall Islands, acting unilaterally, terminates this Title,
such unilateral termination shall be considered to be ter-
mination of the entire Compact, as amended, in which case
the provisions of section 442 and 452 (in the case of ter-
mination by the Government of the United States) or sec-
tions 443 and 453 (in the case of termination by the Gov-
ernment of the Republic of the Marshall Islands), with the
exception of paragraph (3) of subsection (a) of section 452
or paragraph (3) of subsection (a) of section 453, as the
case may be, shall apply.
263
•HJ 63 EH
(b) The Government of the United States recognizes,
in view of the special relationship between the Government
of the United States and the Government of the Republic
of the Marshall Islands, and in view of the existence of
the separate agreement regarding mutual security con-
cluded with the Government of the Republic of the Mar-
shall Islands pursuant to sections 321 and 323, that, even
if this Title should terminate, any attack on the Republic
of the Marshall Islands during the period in which such
separate agreement is in effect, would constitute a threat
to the peace and security of the entire region and a danger
to the United States. In the event of such an attack, the
Government of the United States would take action to
meet the danger to the United States and to the Republic
of the Marshall Islands in accordance with its constitu-
tional processes.
(c) As reflected in Article 21(1)(b) of the Trust Fund
Agreement, the Government of the United States and the
Government of the Republic of the Marshall Islands fur-
ther recognize, in view of the special relationship between
their countries, that even if this Title should terminate,
the Government of Republic of the Marshall Islands shall
refrain from actions which the Government of the United
States determines, after appropriate consultation with
that Government, to be incompatible with its authority
264
•HJ 63 EH
and responsibility for security and defense matters in or
relating to the Republic of the Marshall Islands or the
Federated States of Micronesia.
TITLE FOUR
GENERAL PROVISIONS
Article I
Approval and Effective Date
Section 411
Pursuant to section 432 of the Compact and subject
to subsection (e) of section 461 of the Compact, as amend-
ed, the Compact, as amended, shall come into effect upon
mutual agreement between the Government of the United
States and the Government of the Republic of the Mar-
shall Islands subsequent to completion of the following:
(a) Approval by the Government of the Repub-
lic of the Marshall Islands in accordance with its
constitutional processes.
(b) Approval by the Government of the United
States in accordance with its constitutional proc-
esses.
Article II
Conference and Dispute Resolution
Section 421
The Government of the United States shall confer
promptly at the request of the Government of the Republic
265
•HJ 63 EH
of the Marshall Islands and that Government shall confer
promptly at the request of the Government of the United
States on matters relating to the provisions of this Com-
pact, as amended, or of its related agreements.
Section 422
In the event the Government of the United States or
the Government of the Republic of the Marshall Islands,
after conferring pursuant to section 421, determines that
there is a dispute and gives written notice thereof, the two
Governments shall make a good faith effort to resolve the
dispute between themselves.
Section 423
If a dispute between the Government of the United
States and the Government of the Republic of the Mar-
shall Islands cannot be resolved within 90 days of written
notification in the manner provided in section 422, either
party to the dispute may refer it to arbitration in accord-
ance with section 424.
Section 424
Should a dispute be referred to arbitration as pro-
vided for in section 423, an Arbitration Board shall be
established for the purpose of hearing the dispute and ren-
dering a decision which shall be binding upon the two par-
ties to the dispute unless the two parties mutually agree
266
•HJ 63 EH
that the decision shall be advisory. Arbitration shall occur
according to the following terms:
(a) An Arbitration Board shall consist of a
Chairman and two other members, each of whom
shall be a citizen of a party to the dispute. Each of
the two Governments that is a party to the dispute
shall appoint one member to the Arbitration Board.
If either party to the dispute does not fulfill the ap-
pointment requirements of this section within 30
days of referral of the dispute to arbitration pursu-
ant to section 423, its member on the Arbitration
Board shall be selected from its own standing list by
the other party to the dispute. Each Government
shall maintain a standing list of 10 candidates. The
parties to the dispute shall jointly appoint a Chair-
man within 15 days after selection of the other
members of the Arbitration Board. Failing agree-
ment on a Chairman, the Chairman shall be chosen
by lot from the standing lists of the parties to the
dispute within 5 days after such failure.
(b) Unless otherwise provided in this Compact,
as amended, or its related agreements, the Arbitra-
tion Board shall have jurisdiction to hear and render
its final determination on all disputes arising exclu-
sively under Articles I, II, III, IV and V of Title
267
•HJ 63 EH
One, Title Two, Title Four, and their related agree-
ments.
(c) Each member of the Arbitration Board shall
have one vote. Each decision of the Arbitration
Board shall be reached by majority vote.
(d) In determining any legal issue, the 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 provisions of this Compact, as amended. Unless
the parties provide otherwise by mutual agreement,
the Arbitration Board shall endeavor to render its
decision within 30 days after the conclusion of argu-
ments. The Arbitration Board shall make findings of
fact and conclusions of law and its members may
issue dissenting or individual opinions. Except as
may be otherwise decided by the Arbitration Board,
one-half of all costs of the arbitration shall be borne
by the Government of the United States and the re-
mainder shall be borne by the Government of the
Republic of the Marshall Islands.