H. J. Res. 63—70
States and the Federated States of Micronesia. The Government
of the Federated States of Micronesia shall notify the Government
of the United States of its intention to call such a plebiscite,
or to pursue another mutually agreed and constitutional process,
which plebiscite or process shall take place not earlier than three
months after delivery of such notice. The plebiscite or other process
shall be administered by the Government of the Federated States
of Micronesia in accordance with its constitutional and legislative
processes. If a majority of the valid ballots cast in the plebiscite
or other process favors termination, the Government of the Fed-
erated States of Micronesia shall, upon certification of the results
of the plebiscite or other process, give notice of termination to
the Government of the United States, such termination to be effec-
tive on the date specified in such notice but not earlier than three
months following the date of delivery of such notice. The time
specified in the notice of termination may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441, economic
and other assistance by the Government of the United States shall
continue only if and as mutually agreed by the Governments of
the United States and the Federated States of Micronesia, and
in accordance with the parties’ respective constitutional processes.
(b) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in subsections
(b) and (c) of section 354 of this Compact, as amended, and the
separate agreement entered into consistent with those subsections,
if termination occurs pursuant to section 441 prior to the twentieth
anniversary of the effective date of this Compact, as amended,
the United States shall continue to make contributions to the Trust
Fund described in section 215 of this Compact, as amended.
(c) In view of the special relationship of the United States
and the Federated States of Micronesia described in subsection
(b) of this section, if termination occurs pursuant to section 441
following the twentieth anniversary 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.
H. J. Res. 63—72
(d) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Federated States of Micronesia shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 215 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact, as
amended:
(a) The Government of the United States reaffirms its
continuing interest in promoting the economic advancement
and budgetary self-reliance of the people of the Federated States
of Micronesia.
(b) The separate agreements referred to in Article II of
Title Three shall remain in effect in accordance with their
terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only, and without
prejudice to the views of the Government of the United States
or the Government of the Federated States of Micronesia as to
the nature and extent of the jurisdiction of either of them under
international law, the following terms shall have the following
meanings:
(a) ‘‘Trust Territory of the Pacific Islands’’ means the area
established in the Trusteeship Agreement consisting of the
former administrative districts of Kosrae, Yap, Ponape, the
Marshall Islands 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 Mar-
iana Islands.
(b) ‘‘Trusteeship Agreement’’ means the agreement 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, entered 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 Association
Between the United States and the Federated States of Micro-
nesia and the Marshall Islands, that was approved by the
United States Congress 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.
H. J. Res. 63—73
(e) ‘‘Compact, as amended’’ means the Compact of Free
Association Between the United States and the Federated
States of Micronesia, as amended. The effective date of the
Compact, as amended, shall be on a date to be determined
by the President of the United States, and agreed to by the
Government of the Federated States of Micronesia, following
formal approval of the Compact, as amended, in accordance
with section 411 of this Compact, as amended.
(f) ‘‘Government of the Federated States of Micronesia’’
means the Government established and organized by the Con-
stitution of the Federated States of Micronesia including all
the political subdivisions and entities comprising that Govern-
ment.
(g) ‘‘Government of the Republic of the Marshall Islands’’
means the Government established and organized by the Con-
stitution of the Republic of the Marshall Islands including
all the political subdivisions and entities comprising that
Government.
(h) The following terms shall be defined consistent with
the 1998 Edition of the Radio Regulations of the International
Telecommunications Union as follows:
(1) ‘‘Radiocommunication’’ means telecommunication by
means of radio waves.
(2) ‘‘Station’’ means one or more transmitters or
receivers or a combination of transmitters and receivers,
including the accessory equipment, necessary at one loca-
tion for carrying on a radiocommunication service, or the
radio astronomy service.
(3) 
‘‘Broadcasting 
Service’’ 
means 
a
radiocommunication service in which the transmissions are
intended for direct reception by the general public. This
service may include sound transmissions, television trans-
missions or other types of transmission.
(4) ‘‘Broadcasting Station’’ means a station in the
broadcasting service.
(5) ‘‘Assignment (of a radio frequency or radio fre-
quency channel)’’ means an authorization given by an
administration for a radio station 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 intelligence 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 Micronesia reserved or
acquired by the Government of the Federated States of Micro-
nesia for use by the Government 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 pursuant to United States law and includes
the Tariff Schedules of the United States Annotated (TSUSA),
as amended.
(k) ‘‘Vienna Convention on Diplomatic Relations’’ 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.
H. J. Res. 63—74
Section 462
(a) The Government of the United States and the Government
of the Federated States of Micronesia previously have concluded
agreements pursuant to the Compact, which shall remain in effect
and shall survive in accordance with their terms, as follows:
(1) Agreement Concluded Pursuant to Section 234 of the
Compact;
(2) Agreement Between the Government of the United
States and the Government of the Federated States of Micro-
nesia Regarding Friendship, Cooperation and Mutual Security
Concluded Pursuant to Sections 321 and 323 of the Compact
of Free Association; and
(3) Agreement Between the Government of the United
States of America and the Federated States of Micronesia
Regarding Aspects of the Marine Sovereignty 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 Programs;
(iii) Civil Aviation Safety Service and Related Pro-
grams;
(iv) Civil Aviation Economic Services and Related Pro-
grams;
(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 Related Pro-
grams.
(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 Recruitment Concluded Pursuant to
Section 175(b) of the Compact of Free Association, as amended;
(4) Agreement Concerning Procedures for the Implementa-
tion of United States Economic Assistance Provided in the
Compact of Free Association, as Amended, of Free Association
Between the Government of the United States of America and
Government of the Federated States of Micronesia;
(5) Agreement Between the Government of the United
States of America and the Government of the Federated States
H. J. Res. 63—75
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 Concluded 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 Micronesia 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 section, any
reference in this Compact, as amended, to a provision 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 Com-
pact, as amended, as such provision was in force on the effective
date of this Compact, as amended.
(b) Any reference in Articles IV and Article VI of Title One
and Sections 174, 175, 178 and 342 to a provision of the United
States Code or the Statutes at Large of the United States or
to the Privacy Act, the Freedom of Information Act, the Administra-
tive Procedure Act or the Immigration and Nationality Act con-
stitutes the incorporation of the language of such provision into
this Compact, as amended, as such provision was in force on the
effective date of this Compact, as amended, or as it may be amended
thereafter on a non-discriminatory basis according to the constitu-
tional 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 character, 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 provisions of this Compact, as amended, or in the case
of subsection (d) of section 141, as soon as reasonably possible
thereafter.
Section 472
This Compact, as amended, may be accepted, by signature
or otherwise, by the Government of the United States and the
Government of the Federated States of Micronesia.
IN WITNESS WHEREOF, the undersigned, duly authorized,
have signed this Compact of Free Association, as amended, which
shall enter into force upon the exchange of diplomatic notes by
which the Government of the United States of America and the
Government of the Federated States of Micronesia inform each
other about the fulfillment of their respective requirements for
entry into force.
DONE at Pohnpei, Federated States of Micronesia, in duplicate,
this fourteenth (14) day of May, 2003, each text being equally
authentic.
H. J. Res. 63—76
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:
Ambassador Larry M. Dinger
His Excellency Jesse B. Marehalau
U.S. Ambassador to the
Ambassador Extraordinary and
Federated States of Micronesia
Plenipotentiary
(b) COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS.—The
Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the Republic
of the Marshall Islands is as follows:
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE REPUBLIC OF THE MAR-
SHALL ISLANDS
Affirming that their Governments and their relationship as
Governments are founded upon respect for human rights and funda-
mental freedoms for all, and that the people of the Republic of
the Marshall Islands have the right to enjoy self-government; and
Affirming the common interests of the United States of America
and the Republic of the Marshall Islands in creating and
maintaining their close and mutually beneficial relationship
through the free and voluntary association of their respective
Governments; and
Affirming the interest of the Government of the United States
in promoting the economic advancement and budgetary self-reliance
of the 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 Inter-
national Trusteeship System of the United Nations Charter, and
in particular Article 76 of the Charter; and that pursuant to Article
76 of the Charter, the people of the Republic of the Marshall
Islands have progressively developed their institutions of self-
government, 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 particular cir-
cumstances; and
Recognizing that the Compact reflected their common desire
to terminate the Trusteeship and establish a government-to-govern-
ment relationship which was in accordance with the new political
status based on the freely expressed wishes of the people of the
Republic of the Marshall Islands and appropriate to their particular
circumstances; and
Recognizing that the people of the Republic of the Marshall
Islands have and retain their sovereignty and their sovereign right
to self-determination and the inherent right to adopt and amend
their own Constitution and form of government and that the
approval of the entry of the Government of the Republic of the
Marshall Islands into the Compact by the people of the Republic
of the Marshall 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 Marshall Islands
H. J. Res. 63—77
to maintain their close government-to-government relationship, the
United States and the Republic of the Marshall Islands:
NOW, THEREFORE, MUTUALLY AGREE to continue and
strengthen their relationship of free association by amending the
Compact, which continues to provide a full measure of self-govern-
ment for the people of the Republic of the Marshall Islands; and
FURTHER AGREE that the relationship of free association
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 Govern-
ment of the United States and the Government of the Republic
of the Marshall 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.
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 Com-
pact, as amended.
(b) The foreign affairs capacity of the Government of the
Republic of the Marshall Islands includes:
(1) the conduct of foreign affairs relating to law of the
sea and marine resources matters, including the harvesting,
conservation, exploration or exploitation of living and non-living
resources from the sea, seabed or subsoil to the full extent
recognized under international law;
(2) the conduct of its commercial, diplomatic, consular,
economic, trade, banking, postal, civil aviation, communications,
and cultural relations, including negotiations for the receipt
of developmental loans and grants and the conclusion of
arrangements with other governments and international and
intergovernmental organizations, including any matters spe-
cially benefiting its individual citizens.
(c) The Government of the United States recognizes that the
Government of the Republic of the Marshall Islands has the capacity
to enter into, in its own name and right, treaties and other inter-
national agreements with governments and regional and inter-
national organizations.
(d) In the conduct of its foreign affairs, the Government of
the Republic of the Marshall Islands confirms that it shall act
H. J. Res. 63—78
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 Govern-
ment 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 Govern-
ment 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 Government of the United States regards
as relating to or affecting the Government of the Republic of the
Marshall 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 assistance or through the agency of the Government of
the United States pursuant to this section unless expressly agreed.
Section 125
The Government of the United States shall not be 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 Mar-
shall Islands and subject to the consent of the receiving state,
the Government of the United States shall extend consular assist-
ance on the same basis as for citizens of the United States to
citizens of the Republic of the Marshall Islands for travel outside
the Republic of the Marshall 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, responsibilities, rights
and benefits of the Government of the United States as Admin-
istering Authority which resulted from the application pursuant
to the Trusteeship Agreement of any treaty or other international
agreement to the Trust Territory of the Pacific Islands on October
20, 1986, are, as of that date, no longer assumed and enjoyed
by the Government of the United States.
Article III
Communications
Section 131
H. J. Res. 63—79
(a) The Government of the Republic of the Marshall Islands
has full authority and responsibility to regulate its domestic and
foreign communications, and the Government of the United States
shall provide communications 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 respect to domestic
and foreign communications, except for those functions set forth
in a separate agreement entered into pursuant to this section
of the Compact, as amended.
Section 132
The Government of the Republic of the Marshall Islands shall
permit the Government of the United States to operate tele-
communications 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 section of the Compact, as amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relationship that
exists between the United States and the Republic of the Marshall
Islands, under the Compact, as amended, any person in the fol-
lowing categories may be admitted to lawfully engage in occupa-
tions, and establish residence as a nonimmigrant in the United
States and its territories and possessions (the ‘‘United States’’)
without regard to paragraphs (5) or (7)(B)(i)(II) of section 212(a)
of the 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 Islands;
(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 para-
graphs (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 paragraph (1) or (2) of this section
for at least five years, and further provided, that the Govern-
ment of the United States is satisfied that such naturalized
citizen meets the requirement of subsection (b) of section 104
of Public Law 99–239 as it was in effect on the day prior
to the effective date of this Compact, as amended;
(4) a naturalized citizen of the Republic of the Marshall
Islands who was an actual resident there for not less than
five years after attaining such naturalization and who satisfied
H. J. Res. 63—80
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 Govern-
ment of the Republic of the Marshall Islands to the Government
of the United States no later than the effective date of the
Compact, as amended, in form and content acceptable to the
Government of the United States, provided, that the Govern-
ment 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 Republic of
the Marshall Islands, regardless of the immediate 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 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 Com-
pact, as amended. This subsection shall apply to any person who
is or was an applicant for admission to the United States on
or after March 1, 2003, including any applicant for admission in
removal proceedings (including appellate proceedings) on or after
March 1, 2003, regardless of the date such proceedings were com-
menced. 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 Republic 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.
(d) A person admitted to the United States under the Compact,
or the Compact, as amended, shall be considered to have the permis-
sion of the Government of the United States to accept employment
in the United States. An unexpired Republic of the Marshall Islands
passport with unexpired documentation issued by the Government
of the United States evidencing admission under the Compact or
the Compact, as amended, shall be considered to be documentation
establishing identity and employment authorization under section
274A(b)(1)(B) of the Immigration and Nationality Act, as amended,
8 U.S.C. 1324a(b)(1)(B). The Government of the United States will
take reasonable and appropriate steps to implement and publicize
this 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 person means
the person’s principal, actual dwelling place in fact, without
regard to intent, as provided in section 101(a)(33) of the
Immigration and Nationality Act, as amended, 8 U.S.C.
H. J. Res. 63—81
1101(a)(33), and variations of the term ‘‘residence,’’ including
‘‘resident’’ and ‘‘reside,’’ shall be similarly construed;
(2) the term ‘‘actual residence’’ means physical presence
in the Republic of the Marshall Islands during eighty-five per-
cent of the five-year period of residency required by section
141(a)(3) and (4);
(3) the term ‘‘certificate of actual residence’’ means a certifi-
cate issued to a naturalized citizen by the Government of the
Republic of the Marshall Islands 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 amended, shall
apply to any person admitted or seeking admission to the United
States (other than a United States possession or territory where
such Act does not apply) under the Compact or the Compact,
as amended, and nothing in the Compact or the Compact, as
amended, shall be construed to limit, preclude, or modify the
applicability of, with respect to such person:
(1) any ground of inadmissibility or deportability 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 follows:
‘‘any alien who has been admitted under the Compact, or the
Compact, as amended, who cannot show that he or she has
sufficient means of support in the United States, is deportable;’’
(2) the authority of the Government of the United States
under section 214(a)(1) of such Act to provide that admission
as a nonimmigrant shall be for such time and under such
conditions as the Government of the United States may by
regulations prescribe;
(3) except for the treatment of certain documentation for
purposes of section 274A(b)(1)(B) of such Act as provided by
subsection (d) of this section of the Compact, as amended,
any requirement under section 274A, including but not limited
to section 274A(b)(1)(E);
(4) section 643 of the Illegal Immigration Reform 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 Government of a territory
or possession of the United States where the Immigration and
Nationality Act, as amended, does not apply, to the extent such
exercise of authority is lawful under a statute or regulation of
such territory or possession that is authorized by the laws of the
United States.
H. J. Res. 63—82
(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 prevent a citizen of the Republic of the Marshall Islands
from otherwise acquiring such rights or lawful permanent resident
alien status in the United States.
Section 142
(a) Any citizen or national of the United States may be admitted
to lawfully engage in occupations, and reside in the Republic of
the Marshall Islands, subject to the rights of the Government
of the Republic of the Marshall Islands to deny entry to or deport
any such citizen or national as an undesirable alien. Any determina-
tion of inadmissibility or deportability shall be based on reasonable
statutory grounds and shall be subject to appropriate administrative
and judicial review within the Republic of the Marshall Islands.
If a citizen or national of the United States is a spouse of a
citizen of the Republic of the Marshall Islands, the Government
of the Republic of the Marshall Islands shall allow the United
States citizen spouse to establish residence. Should the Republic
of the Marshall Islands citizen spouse predecease the United States
citizen spouse during the marriage, the Government of the Republic
of the Marshall Islands shall allow the United States citizen spouse
to continue to reside in the Republic of the Marshall Islands.
(b) In enacting any laws or imposing any requirements with
respect to citizens and nationals of the United States entering
the Republic of the Marshall Islands under subsection (a) of this
section, including any grounds of inadmissibility or deportability,
the Government of the Republic of the Marshall Islands shall accord
to such citizens and nationals of the United States treatment no
less favorable than that accorded to citizens of other countries.
(c) Consistent with subsection (a) of this section, with respect
to citizens and nationals of the United States seeking to engage
in employment or invest in the Republic of the Marshall Islands,
the Government of the Republic of the Marshall Islands shall adopt
immigration-related procedures no less favorable than those adopted
by the Government of the United States with respect to citizens
of the Republic of the Marshall Islands seeking employment in
the United States.
Section 143
Any person who relinquishes, or otherwise loses, his United
States nationality or citizenship, or his Republic of the Marshall
Islands citizenship, shall be ineligible to receive the privileges set
forth in sections 141 and 142. Any such person may apply for
admission to the United States or the Republic of the Marshall
Islands, as the case may be, in accordance with any other applicable
laws of the United States or the Republic of the Marshall Islands
relating to immigration of aliens from other countries. The laws
of the Republic of the Marshall Islands or the United States, as
the case may be, shall dictate the terms and conditions of any
such person’s stay.
H. J. Res. 63—83
Article V
Representation
Section 151
Relations between the Government of the United States and
the Government of the Republic of the Marshall Islands shall be
conducted in accordance with the Vienna Convention on Diplomatic
Relations. In addition to diplomatic missions and representation,
the Governments may establish and maintain other offices and
designate 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 requirements.
For purposes of the Foreign Agents Registration 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 Government 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 mat-
ters specified in the Foreign Agents Registration Act of 1938, as
amended, that apply with respect to an agent of a foreign principal.
The agency or officer of the United States receiving such certifi-
cations shall cause them to be filed with the Attorney General,
who shall maintain a publicly available list of the persons so cer-
tified.
Article VI
Environmental Protection
Section 161
The Governments of the United States and the Republic 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 Islands. In order to carry out
this policy, the Government of the United States and the Govern-
ment 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
H. J. Res. 63—84
Standards and Procedures for United States Army Kwaja-
lein Atoll Activities in the Republic of the Marshall Islands,
unless and until those Standards or Procedures are modi-
fied by mutual agreement of the Governments of the United
States and the Republic of the Marshall Islands;
(2) shall apply the National Environmental Policy Act
of 1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities
under the Compact, as amended, and its related agree-
ments as if the Republic of the Marshall Islands were
the United States;
(3) in the conduct of any activity not described in
section 161(a)(1) requiring the preparation of an Environ-
mental Impact Statement under section 161(a)(2), shall
comply with standards substantively similar to those
required by the following laws of the United States, taking
into account the particular environment of the Republic
of the Marshall Islands; 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 Control 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 Substances Control
Act, as amended, 15 U.S.C. 2601 et seq.; the Solid Waste
Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and
such other environmental protection laws of the United
States and 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 Statement 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 applicable to U.S. Government activities
in the Republic of the Marshall Islands, pursuant to section
161(a)(3).
(b) The Government of the Republic of the Marshall Islands
shall continue to develop and implement standards and proce-
dures to protect its environment. As a reciprocal obligation
to the undertakings of the Government of the United States
under this Article, the Republic of the Marshall Islands, taking
into account its particular environment, shall continue to
develop and implement standards for environmental protection
substantively similar to those required of the Government of
the United States by section 161(a)(3) prior to its conducting
activities in the Republic of the Marshall Islands, substantively
equivalent to activities conducted there by the Government
of the United States and, as a further reciprocal obligation,
shall enforce those standards.
(c) Section 161(a), including any standard or procedure
applicable thereunder, and section 161(b) may be modified or
superseded in whole or in part by agreement of the Government
of the United States and the Government of the Republic of
the Marshall Islands.
H. J. Res. 63—85
(d) In the event that an Environmental Impact Statement
is no longer required under the laws of the United States
for major Federal actions significantly affecting the quality
of the human environment, the regulatory regime established
under sections 161(a)(3) and 161(a)(4) shall continue to apply
to such activities of the Government of the United States until
amended by mutual agreement.
(e) The President of the United States may exempt any
of the activities of the Government of the United States under
this Compact, as amended, and its related agreements from
any environmental standard or 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 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 exemption, to the extent prac-
ticable, a report with his reasons 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 Compact, 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 Islands may
bring an action for judicial review of any administrative agency
action or any activity of the Government of the United States
pursuant to section 161(a) for enforcement of the obligations of
the Government of the United States arising thereunder. The
United States District Court for the District of Hawaii and the
United States District Court for the District of Columbia shall
have jurisdiction over such action or activity, and over actions
brought under section 172(b) which relate to the activities of the
Government of the United States and its officers and employees,
governed by section 161, provided that:
(a) Such actions may only be civil actions for any appro-
priate civil relief other than punitive damages 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 initi-
ated only by the Government of the Republic of the Marshall
Islands.
(c) Administrative agency actions arising under section 161
shall be reviewed pursuant to the standard 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 jurisdiction to issue all necessary proc-
esses, and the Government 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
H. J. Res. 63—86
States Court of Appeals for the Ninth Circuit or the United
States Court of Appeals for the District of Columbia, respec-
tively, or in the United States Supreme Court as provided
by the laws of the United States.
(e) The judicial remedy provided for in this section shall
be the exclusive remedy for the judicial review or enforcement
of the obligations of the Government 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 Government
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 Government of the United
States subject to the requirements of this Article, the Government
of the Republic of the Marshall 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 unreasonably
interfere with the exercise of the authority and responsibility of
the Government of the United States under Title Three.
(b) The Government of the United States, in turn, shall be
granted access to the Republic of the Marshall Islands for the
purpose of gathering data necessary to discharge its obligations
under this Article, except to the extent such access would unreason-
ably interfere with the exercise of the authority and responsibility
of the Government 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 Trustee-
ship Agreement ceased with respect to the Marshall Islands on
October 21, 1986, the date the Compact went into effect.
Section 172
(a) Every citizen of the Republic of the Marshall Islands 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
H. J. Res. 63—87
of Information Act, 5 U.S.C. 552, and of the judicial review provi-
sions of the Administrative 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 Procedure 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 Republic of
the Marshall Islands agree to adopt and enforce such measures,
consistent with this Compact, as amended, and its related agree-
ments, 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 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 pursuant to this
Compact, Compact, as amended, and its related agreements.
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Republic of the Marshall Islands,
and its agencies and officials, shall be immune from the jurisdic-
tion of the court of the United States, and the Government
of the United States, and its agencies and officials, shall be
immune from the jurisdiction of the courts of the Republic
of the Marshall Islands.
(b) The Government of the United States accepts responsi-
bility for and shall pay:
(1) any unpaid money judgment rendered by the High
Court of the Trust Territory of the Pacific Islands against
the Government of the United States with regard to any
cause of action arising as a result of acts or omissions
of the Government of the Trust Territory of the Pacific
Islands or the Government of the United States prior to
October 21, 1986;
(2) any claim settled by the claimant and the Govern-
ment of the Trust Territory of the Pacific Islands but
not paid as of October 21, 1986; and
(3) settlement of any administrative claim or of any
action before a court of the Trust Territory of the Pacific
Islands or the Government of the United States, arising
as a result of acts or omissions of the Government of
the Trust 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 Government of the Trust Terri-
tory of the Pacific Islands or the Government of the United
States prior to the effective date of the Compact shall be adju-
dicated in the same manner as a claim adjudicated according
to section 174(d). In any claim against the Government 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 referred to in section 174(b) or this subsection, not
otherwise satisfied by the Government of the United States,
H. J. Res. 63—88
may be presented for certification to the United States Court
of Appeals for the Federal Circuit, or its successor courts,
which shall have jurisdiction 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 hearing, 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 jurisdiction of the courts of
the United States, and the Government of the United States
shall not be immune from the jurisdiction of the courts of
the Republic of the Marshall Islands in any civil case in which
an exception to foreign state immunity is set forth in the
Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.)
or its successor statutes.
Section 175
(a) A separate agreement, which shall come into effect simulta-
neously with this Compact, as amended, and shall have the force
of law, shall govern mutual assistance and cooperation in law
enforcement matters, including the pursuit, capture, imprisonment
and extradition of fugitives from justice and the transfer of pris-
oners, as well as other law enforcement matters. In the United
States, the laws of the United States governing international extra-
dition, including 18 U.S.C. 3184, 3186, and 3188–95, shall be
applicable to the extradition of fugitives under the separate agree-
ment, and the laws of the United States governing the transfer
of prisoners, including 18 U.S.C. 4100–15, shall be applicable to
the transfer of prisoners under the separate agreement; and
(b) A separate agreement, which shall come into effect simulta-
neously with this Compact, as amended, and shall have the force
of law, shall govern requirements relating to labor recruitment
practices, including registration, 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 Islands con-
firms 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 constitutional power of the courts
of the Republic of the Marshall Islands to grant relief from judg-
ments 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 accepts the
responsibility for compensation owing to citizens of the Marshall
Islands, or the Federated States of Micronesia, (or Palau) for
loss or damage to property and person of the citizens of the
Marshall Islands, or the Federated States of Micronesia,
resulting from the nuclear testing program which the Govern-
ment of the United States conducted in the Northern Marshall
Islands between June 30, 1946, and August 18, 1958.
H. J. Res. 63—89
‘‘(b) The Government of the United States and the Govern-
ment 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 com-
pensated or which in the future may arise, for the continued
administration by the Government of the United States of
direct radiation related medical surveillance and treatment pro-
grams and radiological monitoring activities and for such addi-
tional programs and activities as may be mutually agreed,
and for the assumption by the Government of the Marshall
Islands of responsibility for enforcement of limitations 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
responsibility as may be mutually agreed. This separate agree-
ment shall come into effect simultaneously with this Compact
and shall remain in effect in accordance with its own terms.
‘‘(c) The Government of the United States shall provide
to the Government of the Marshall Islands, on a grant basis,
the amount of $150 million to be paid and distributed in accord-
ance with the separate agreement referred to in this Section,
and shall provide the services and programs set forth in this
separate agreement, the language of which is incorporated into
this Compact.’’.
The Compact, as amended, makes no changes to, and has no effect
upon, Section 177 of the Compact, nor does the Compact, as
amended, change or affect the separate agreement referred to in
Section 177 of the Compact including 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 employees of such agencies. Except as provided
in section 178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C.
1304 shall apply exclusively to such administrative settlements
and payments.
(b) Claims under section 178(a) that cannot be settled 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, provide for:
(1) the administrative settlement of claims referred to in
section 178(a), including designation of local agents in each
State of the Republic of the 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 claimant, in the event
a claim is not otherwise settled pursuant to section 178(a).
H. J. Res. 63—90
(d) The provisions of section 174(d) shall not apply to claims
covered by this section.
(e) Except as otherwise explicitly provided by law of the United
States, this Compact, as amended, or its related agreements, neither
the Government of the United States, its instrumentalities, nor
any person acting on behalf of the Government of the United
States, shall be named a party in any action based on, or arising
out of, the activity or activities of a recipient of any grant or
other assistance provided by the Government of the United States
(or the activity or activities of the recipient’s agency or any other
person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Republic of the Marshall Islands shall
not exercise criminal jurisdiction over the Government of the United
States, or its instrumentalities.
(b) The courts of the Republic of the Marshall Islands shall
not exercise criminal jurisdiction over any person if the Government
of the United States provides notification to the Government of
the Republic of the Marshall Islands that such person was acting
on behalf of the Government of the United States, for actions
taken in furtherance of 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 Islands.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Annual Grant Assistance
(a) In order to assist the Government of the Republic of the
Marshall Islands in its efforts to promote the economic advancement
and budgetary self-reliance of its people, and in recognition of
the special relationship that exists between the Republic of the
Marshall Islands and the United States, the Government of the
United States shall provide assistance on a grant basis for a period
of twenty years in the amounts set forth in section 217, commencing
on the effective date of this Compact, as amended. Such grants
shall be used for assistance in education, health care, the environ-
ment, public sector capacity building, and private sector develop-
ment, or for other areas as mutually agreed, with priorities in
the education and health care sectors. Consistent with the medium-
term budget and investment framework described in subsection
(f) of this section, the proposed division of this amount among
the identified areas shall require the concurrence of both the
Government of the United States and the Government of the
Republic of the Marshall Islands, through the Joint Economic
Management and Financial Accountability Committee described in
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
Concerning 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
H. J. Res. 63—91
Islands (‘‘Fiscal Procedures Agreement’’) which shall come into effect
simultaneously with this Compact, as amended.
(1) EDUCATION.—United States grant assistance shall be
made available in accordance with the strategic framework
described in subsection (f) of this section to support and improve
the educational system of the Republic of the Marshall Islands
and develop the human, financial, and material resources nec-
essary for the Republic of the Marshall Islands to 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 strategic framework described
in subsection (f) of this section to support and improve the
delivery of preventive, curative and environmental care and
develop the human, financial, and material resources necessary
for the Republic of the Marshall Islands to perform these serv-
ices.
(3) PRIVATE SECTOR DEVELOPMENT.—United States grant
assistance shall be made available in accordance with the stra-
tegic framework described in subsection (f) of this section to
support the efforts of the Republic of the Marshall Islands
to attract foreign investment and increase indigenous business
activity by vitalizing the commercial environment, ensuring
fair and equitable application of the law, promoting adherence
to core labor standards, maintaining progress toward privatiza-
tion of state-owned and partially state-owned enterprises, and
engaging in other reforms.
(4) CAPACITY
BUILDING
IN
THE
PUBLIC
SECTOR.—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 Mar-
shall Islands to build effective, accountable and transparent
national and local government and other public sector institu-
tions and systems.
(5) ENVIRONMENT.—United States grant assistance shall
be made available in accordance with the strategic framework
described in subsection (f) of this section to increase environ-
mental protection; establish and manage conservation areas;
engage in environmental infrastructure planning, design
construction and operation; and to involve the citizens of the
Republic of the Marshall Islands in the process 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 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 Islands Regarding Military
Use and Operating Rights) to advance the objectives and spe-
cific 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 subsection (f) of this section, to support and
H. J. Res. 63—92
improve the infrastructure and delivery of services and develop
the human and material resources necessary for the Republic
of the Marshall Islands to carry out its responsibility to main-
tain such infrastructure and deliver such services. The amount
of this assistance shall be $3,100,000, with an inflation adjust-
ment 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 provided in section 218, will
be increased by $2 million for fiscal year 2014. The fiscal
year 2014 level of funding, with an inflation adjustment as
provided in section 218, will be made available from fiscal
year 2015 through fiscal year 2023 (and thereafter as noted
above).
(2) The Government of the United States shall also provide
to the Government of the Republic of the Marshall Islands,
in conjunction with section 321(a) of this Compact, as amended,
an annual payment 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 Islands Regarding Military
Use and Operating Rights) of $1.9 million. This grant assistance
will be subject to the Fiscal Procedures Agreement and will
be adjusted for inflation under section 218 and used to address
the special needs of the community at Ebeye, Kwajalein Atoll
and other Marshallese communities within Kwajalein Atoll with
emphasis on the Kwajalein landowners, as described in the
Fiscal Procedures Agreement.
(3) Of the total grant assistance made available under
subsection (a) of this section, and in conjunction with section
321(a) of the Compact, as amended, $200,000, with an inflation
adjustment as provided in section 218, shall be allocated
annually from fiscal year 2004 through fiscal year 2023 (and
thereafter as provided in the Agreement between the Govern-
ment of the United States and the Government of the Republic
of the Marshall Islands Regarding Military Use and Operating
Rights) for a grant to support increased participation of the
Government of the Republic of the Marshall Islands Environ-
mental 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 independent analysis of the Survey’s findings and
conclusions.
(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 Marshall Islands, on its request and to be deducted
from the grant amount made available under subsection (a) of
this section, a Humanitarian Assistance—Republic of the Marshall
Islands (‘‘HARMI’’) Program with emphasis on health, education,
and infrastructure (including transportation), projects and such
other projects as mutually agreed. The terms and conditions of
the HARMI shall be set forth in the Agreement Regarding the
Military Use and Operating Rights of the Government of the United
States in the Republic of the Marshall Islands Concluded Pursuant
to Sections 321 and 323 of the Compact of Free Association, as
H. J. Res. 63—93
Amended, which shall come into effect simultaneously 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. annual grant assistance
provided under this section shall be made available in accord-
ance with a list of specific projects included in the infrastructure
improvement and maintenance plan prepared by the Govern-
ment of the Republic of the Marshall Islands as part of the
strategic framework described in subsection (f) of this section.
(2) INFRASTRUCTURE MAINTENANCE FUND.—Five percent of
the annual public infrastructure grant made available under
paragraph (1) of this subsection shall be set aside, with an
equal contribution from the Government of the Republic of
the Marshall Islands, as a contribution to an Infrastructure
Maintenance Fund. Administration of the Infrastructure
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 dollars ($200,000) shall be pro-
vided 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 rehabilitation
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 Islands, with the concurrence of the
United States Chief of Mission to the Republic of the Marshall
Islands. Administration of the DAEF shall be governed by the
Fiscal Procedures Agreement.
(f) BUDGET AND INVESTMENT FRAMEWORK.—The Government
of the Republic of the Marshall Islands shall prepare and maintain
an official medium-term budget and investment framework. The
framework shall be strategic in nature, shall be continuously
reviewed and updated through the annual budget process, and
shall make projections on a multi-year rolling basis. Each of the
sectors and areas named in subsections (a), (b), and (d) of this
section, or other sectors and areas as mutually agreed, shall be
accorded specific treatment in the framework. Those portions of
the framework that contemplate the use of United States grant
funds shall require the concurrence of both the Government of
the United States and the Government of the Republic of the
Marshall Islands.
Section 212 - Kwajalein Impact and Use
The Government of the United States shall provide to the
Government of the Republic of the Marshall Islands in conjunction
with section 321(a) of the Compact, as 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
H. J. Res. 63—94
2013 amount with an inflation adjustment under section 218, which-
ever is greater. For fiscal year 2015 through fiscal year 2023 (and
thereafter in accordance with the Agreement between the Govern-
ment of the United States and the Government of the Republic
of the Marshall Islands Regarding Military Use and Operating
Rights) the annual payment will be the fiscal year 2014 amount,
with an inflation adjustment as provided under section 218.
Section 213 - Accountability
(a) Regulations and policies normally applicable to United
States financial assistance to its state and local governments, as
set forth in the Fiscal Procedures Agreement, shall apply to each
grant described in section 211, and to grants administered under
section 221 below, except as modified in the separate agreements
referred to in section 231 of this Compact, as amended, or by
U.S. law. As set forth in the Fiscal Procedures Agreement, reason-
able terms and conditions, including annual performance indicators
that are necessary to ensure effective use of United States assist-
ance and reasonable progress toward achieving program objectives
may be attached. In addition, the United States may seek appro-
priate 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 assistance is to be provided
on a sector grant basis under section 211 (a), grant the Government
of the Republic of the Marshall Islands an amount equal to the
lesser of (i) one half of the reasonable, properly documented cost
incurred during such fiscal year to conduct the annual audit
required under Article VIII (2) of the Fiscal Procedures Agreement
or (ii) $500,000. Such amount will not be adjusted for inflation
under section 218 or otherwise.
Section 214 - Joint Economic Management and Financial Account-
ability Committee
The Governments of the United States and the Republic of
the Marshall Islands shall establish a Joint Economic Management
and Financial Accountability Committee, composed of a U.S. chair,
two other members from the Government of the United States
and two members from the Government of the Republic of the
Marshall Islands. The Joint Economic Management and Financial
Accountability Committee shall meet at least once each year to
review the audits and reports required under this Title and the
Fiscal Procedures Agreement, evaluate the progress made by the
Republic of the Marshall Islands in meeting the objectives identified
in its framework described in subsection (f) of section 211, with
particular focus on those parts of the framework dealing with
the sectors and areas identified in subsection (a) of section 211,
identify problems encountered, and recommend ways to increase
the effectiveness of U.S. assistance made available under this Title.
The establishment and operations of the Joint Economic Manage-
ment and Financial Accountability Committee shall be governed
by the Fiscal Procedures Agreement.
Section 215 - Annual Report
The Government of the Republic of the Marshall Islands 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
H. J. Res. 63—95
Committee shall review and comment on the report and make
appropriate 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 Islands Implementing Section 216 and Section
217 of the Compact, as Amended, Regarding a Trust Fund (‘‘Trust
Fund Agreement’’), which shall come into effect simultaneously
with this Compact, as amended. Upon termination of the annual
grant assistance under section 211 (a), (d) and (e), the earnings
of the fund shall thereafter be used for the purposes described
in section 211 or as otherwise mutually agreed.
(b) The United States contribution into the Trust Fund
described in subsection (a) of this section is conditioned 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 Republic of the
Marshall Islands under section 111(d) of Public Law 99–239
(January 14, 1986), or successor provisions, would be contributed
to the Trust Fund as a Republic of the Marshall Islands’ contribu-
tion.
(c) The terms regarding the investment and management 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 Islands and for appropriate remedies
for the failure of the Republic of the Marshall Islands to use
income of the Trust Fund for the annual grant purposes set forth
in section 211. These remedies may include the return to the
United States of the present market value of its contributions
to the Trust Fund and the present market value of any undistrib-
uted income on the contributions of the United States. If this
Compact, as amended, is terminated, the provisions of sections
451–453 of the Compact, as amended, and the Trust Fund Agree-
ment 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
H. J. Res. 63—96
[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
2008 ..................
33.2
.5
15.0
57.7
2009 ..................
32.7
.5
9.5
15.0
57.7
2010 ..................
32.2
.5
15.0
57.7
2011 ..................
31.7
.5
10.5
15.0
57.7
2012 ..................
31.2
.5
15.0
57.7
2013 ..................
30.7
.5
11.5
15.0
57.7
2014 ..................
32.2
.5
18.0
62.7
2015 ..................
31.7
.5
12.5
18.0
62.7
2016 ..................
31.2
.5
18.0
62.7
2017 ..................
30.7
.5
13.5
18.0
62.7
2018 ..................
30.2
.5
18.0
62.7
2019 ..................
29.7
.5
14.5
18.0
62.7
2020 ..................
29.2
.5
18.0
62.7
2021 ..................
28.7
.5
15.5
18.0
62.7
2022 ..................
28.2
.5
18.0
62.7
2023 ..................
27.7
.5
16.5
18.0
62.7
Section 218 - Inflation Adjustment
Except as otherwise provided, the amounts stated in this Title
shall be adjusted for each United States Fiscal Year by the percent
that equals two-thirds of the percent change in the United States
Gross Domestic Product Implicit Price Deflator, or 5 percent, which-
ever 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 Government
of the United States for that year pursuant to this Article are
not completely obligated by the Government of the Republic of
the Marshall Islands, the unobligated balances shall remain avail-
able 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 accord-
ance with and to the extent provided in the Federal Programs
and Services Agreement referred to in Section 231, the services
and related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
(3) the United States Federal Aviation Administration;
(4) the United States Department of Transportation; and
(5) the Department of Homeland Security, and the United
States Agency for International Development, Office of Foreign
Disaster Assistance.
Upon the effective date of this Compact, as amended, the United
States Departments and Agencies named or having responsibility
to provide these services and related programs shall have the
authority to implement the relevant provisions of the Federal Pro-
grams and Services Agreement referred to in section 231.
(b) PROGRAMS.—
(1) Other than the services and programs covered by sub-
section (a) of this section, and to the extent authorized by
the Congress of the United States, the Government of the
H. J. Res. 63—97
United States shall make available to the Republic of the
Marshall Islands the services and programs that were available
to the Republic of the Marshall Islands on the effective date
of this Compact, as amended, to the extent that such services
and programs continue to be available to State and local govern-
ments of the United States. As set forth in the Fiscal Procedures
Agreement, funds provided under subsection (a) of section 211
shall be considered to be local revenues of the Government
of the Republic of the Marshall Islands when used as the
local share required to obtain Federal programs and services.
(2) Unless provided otherwise by U.S. law, the services
and programs described in paragraph (1) of this subsection
shall be extended in accordance with the terms of the Federal
Programs and Services Agreement.
(c) The Government of the United States shall have and exercise
such authority as is necessary to carry out its responsibilities under
this Title and the Federal Programs and Services Agreement,
including the authority to monitor and administer all service and
program assistance provided by the United States to the Republic
of the Marshall 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 operating in the Republic of the Marshall
Islands shall be subject to all applicable criteria, standards,
reporting requirements, auditing procedures, and other rules and
regulations 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 develop-
ment 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 Government
of the Republic of the Marshall Islands may agree from time to
time to extend to the Republic of the Marshall Islands additional
United States grant assistance, services and programs, as provided
under the laws of the United States. Unless inconsistent with
such laws, or otherwise specifically precluded by the Government
of the United States at the time such additional grant assistance,
services, or programs are extended, the Federal Programs and
Services Agreement shall apply to any such assistance, services
or programs.
Section 223
The Government of the Republic of the Marshall Islands shall
make available to the Government of the United States at no
cost such land as may be necessary for the operations of the services
and programs provided pursuant to this Article, and such facilities
as are provided by the Government of the Republic of the Marshall
Islands at no cost to the Government of the United States as
of the effective date of this Compact, as amended, or as may
be mutually agreed thereafter.
Section 224
H. J. Res. 63—98
The Government of the Republic of the Marshall Islands may
request, from the time to time, technical assistance from the Federal
agencies and institutions of the Government of the United States,
which are authorized to grant such technical assistance in accord-
ance with its laws. If technical assistance is granted pursuant
to such a request, the Government of the United States shall
provide the technical assistance in a manner which gives priority
consideration to the Republic of the Marshall Islands over other
recipients not a part of the United States, its territories or posses-
sions, and equivalent consideration to the Republic of the Marshall
Islands with respect to other states in Free Association with the
United States. Such assistance shall be made available on a
reimbursable or non-reimbursable basis to the extent provided by
United States law.
Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrangements of
the services and programs provided for in section 221 of this Com-
pact, as amended, as well as the legal status of agencies of the
Government of the United States, their civilian employees and
contractors, and the dependents of such personnel while present
in the Republic of the Marshall Islands, and other arrangements
in connection with the 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 Islands, shall
determine and implement procedures for the periodic audit of all
grants and other assistance made under Article I of this Title
and of all funds expended for the services and programs provided
under Article II of this Title. Further, in accordance with the
Fiscal Procedures Agreement described in subsection (a) of section
211, the Comptroller General of the United States shall have such
powers and authorities as described in sections 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 Government
of the United States, in accordance with its constitutional 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 Republic
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 Islands pledges
to cooperate with, permit, and assist if reasonably requested, des-
ignated and authorized representatives of the Government of the
United States charged with investigating whether Compact funds,
H. J. Res. 63—99
or any other assistance authorized under this Compact, as amended,
have, or are being, used for purposes other than those set forth
in this Compact, as amended, or its subsidiary agreements. In
carrying out this investigative authority, such United States
Government representatives may request that the Government of
the Republic of the Marshall Islands subpoena documents and
records and compel testimony in accordance with the laws and
Constitution of the Republic of the Marshall Islands. Such assist-
ance by the Government of the Republic of the Marshall Islands
to the Government of the United States shall not be unreasonably
withheld. The obligation of the Government of the Marshall Islands
to fulfill its pledge herein is a condition to its receiving payment
of such funds or other assistance authorized under this Compact,
as amended. The Government of the United States shall pay any
reasonable costs for extraordinary services executed by the Govern-
ment 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:
(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 Federated 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
aggregated quantity of tuna in airtight containers that is duti-
able under rate column numbered 1 of such heading 1604.14.22
for that calendar year.
(c) The duty-free treatment provided under subsection (a)
shall not apply to:
(1) watches, clocks, and timing apparatus provided for
in Chapter 91, excluding heading 9113, of the Harmonized
Tariff Schedule of the United States;
(2) buttons (whether finished or not finished) 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
H. J. Res. 63—100
articles for purposes of title V of the Trade Act of 1974
(19 U.S.C. 2461, et seq.) on April 1, 1984.
(d) If the cost or value of materials produced in the customs
territory of the United States is included with respect to an
eligible article which is a product of the Republic of the Mar-
shall Islands, an amount not to exceed 15 percent of the
appraised value of the article at the time it is entered that
is attributable to such United States cost or value may be
applied for duty assessment purposes toward determining the
percentage referred to in section 503(a)(2) of title V of the
Trade Act of 1974.
Section 243
Articles imported from the Republic of the Marshall Islands
which are not exempt from duty under subsections (a), (b), (c),
and (d) of section 242 shall be subject to the rates of duty set
forth in column numbered 1-general of the Harmonized Tariff
Schedule of the United States (HTSUS).
Section 244
(a) All products of the United States imported into the Republic
of the Marshall Islands shall receive treatment no less favorable
than that accorded like products of any foreign country with respect
to customs duties or charges of a similar nature and with respect
to laws and regulations relating to importation, exportation, tax-
ation, sale, distribution, storage or use.
(b) The provisions of subsection (a) shall not apply to advan-
tages accorded by the Republic of the Marshall Islands by virtue
of their full membership in the Pacific Island Countries Trade
Agreement (PICTA), done on August 18, 2001, to those governments
listed in Article 26 of PICTA, as of the date the Compact, as
amended, is signed.
(c) Prior to entering into consultations on, or concluding, a
free trade agreement with governments not listed in Article 26
of PICTA, the Republic of the Marshall Islands shall consult with
the United States regarding whether or how subsection (a) of section
244 shall be applied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official circulating
legal tender of the Republic of the Marshall Islands. Should the
Government of the Republic of the Marshall 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 Islands may,
with respect to United States persons, tax income derived from
sources within its respective jurisdiction, property situated therein,
including transfers of such property by gift or at death, and products
consumed therein, in such manner as the Government of the
Republic of the Marshall Islands deems appropriate. The determina-
tion of the source of any income, or the situs of any property,
shall for purposes of this Compact, as amended, be made according
to the United States Internal Revenue Code.
H. J. Res. 63—101
Section 253
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 Government of the United States,
provided that such citizen of the Republic of the Marshall Islands
is neither a citizen nor a resident of the United States.
Section 254
(a) In determining any income tax imposed by the Government
of the Republic of the Marshall Islands, the Government of the
Republic of the Marshall Islands shall have authority to impose
tax upon income derived by a 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 Islands who is subject to tax by the
Government of the United States on income which is also taxed
by the Government of the Republic of the Marshall Islands shall
be relieved of liability to the 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 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 taxable year.
(b) If the Government of the Republic of the Marshall Islands
subjects income to taxation substantially similar to that which
was imposed by the Trust Territory Code in effect on January
1, 1980, such Government shall be deemed to have exercised the
authority described in section 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the U.S. Internal Rev-
enue Code of 1986, the term ‘‘North American Area’’ shall include
the Republic of the Marshall Islands.
TITLE THREE
SECURITY AND DEFENSE RELATIONS
Article I
Authority and Responsibility
Section 311
(a) The Government of the United States has full authority
and responsibility for security and defense matters in or relating
to the Republic of the Marshall Islands.
(b) This authority and responsibility includes:
H. J. Res. 63—102
(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 personnel 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 agreements 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 international law and
the Charter of the United Nations in the exercise of this authority
and responsibility.
Section 312
Subject to the terms of any agreements negotiated in accordance
with sections 321 and 323, the Government of the United States
may conduct within the lands, waters and airspace of the Republic
of the Marshall Islands the 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 consultation with that Government,
to be incompatible with its authority 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 con-
ducted expeditiously at senior levels of the two Governments, and
the subsequent determination by the Government of the United
States referred to in this section shall be made only at senior
interagency levels of the Government of the United States.
(c) The Government of the Republic of the Marshall Islands
shall be afforded, on an expeditious basis, an opportunity to raise
its concerns with the United States Secretary of State personally
and the United States Secretary of Defense personally regarding
any determination made in accordance with this section.
Section 314
(a) Unless otherwise agreed, the Government of the United
States shall not, in the Republic of the Marshall 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 radioactive,
toxic chemical or biological materials in an amount or manner
that would be hazardous to public health or safety.
(b) Unless otherwise agreed, other than for transit or overflight
purposes or during time of a national emergency declared by the
President of the United States, a state of war declared by the
Congress of the United States or as necessary to defend against
an actual or impending armed attack on the United States, the
Republic of the Marshall Islands or the Federated States of Micro-
nesia, 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 mate-
rials nor any toxic chemical materials intended for weapons use.
H. J. Res. 63—103
(c) Radioactive, toxic chemical, or biological materials not
intended for weapons use shall not be affected by section 314(b).
(d) No material or substance referred to in this section shall
be stored in the Republic of the Marshall Islands except in an
amount and manner which would not be hazardous to public health
or safety. In determining what shall be an amount or manner
which would be hazardous to public health or safety under this
section, the Government of the United States shall comply with
any applicable mutual agreement, international guidelines accepted
by the 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 Marshall 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 military areas and
facilities in the Republic of the Marshall Islands, in conjunction
with and under the control of United States Armed Forces. Use
by units of the armed forces of other countries of such military
areas and facilities, other than for transit and overflight purposes,
shall be subject to 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 transferred or otherwise
assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by
the Government of the United States of military areas and facilities
in the Republic of the Marshall Islands are set forth in separate
agreements, which shall remain in effect in accordance with the
terms of such agreements.
(b) If, in the exercise of its authority and responsibility under
this Title, the Government of the United States 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), it may request the Government of the Republic
of the Marshall 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 discuss it with and pro-
vide a prompt response to the Government 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
H. J. Res. 63—104
321(b), the Government of the United States shall follow the policy
of requesting the minimum area necessary to accomplish the
required security and defense purpose, of requesting only the min-
imum interest in real property necessary to support such purpose,
and of requesting first to satisfy its requirement through public
real property, where available, rather than through private real
property.
Section 322
The Government of the United States shall provide and main-
tain fixed and floating aids to navigation in the Republic of the
Marshall Islands at least to the extent necessary for the exercise
of its authority and responsibility under this Title.
Section 323
The military operating rights of the Government of the United
States and the legal status and contractual arrangements of the
United States Armed Forces, their members, and associated
civilians, while present in the Republic of the Marshall Islands
are set forth in separate agreements, which shall remain in effect
in accordance with the terms of such agreements.
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, exclu-
sively, has assumed and enjoys, as to the Republic of the Marshall
Islands, all obligations, responsibilities, rights and benefits of:
(a) Any defense treaty or other international security agree-
ment 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 security agree-
ment to which the Government of the United States is or
may become a party which it determines to be applicable in
the Republic of the Marshall Islands. Such a determination
by the Government of the United States shall be preceded
by appropriate 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 Section 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 service in the Armed Forces of the
United States, but shall not be subject to involuntary induction
into military service of the United States as long as such person
has resided in the United States for a period of less than one
year, provided that no time shall count towards this one year
while a 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
H. J. Res. 63—105
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 enrolled, at
any one time, at least one qualified student from the Republic
of the Marshall Islands, as may be nominated by the Government
of the Republic of the Marshall Islands, in each of:
(a) The United States Coast Guard Academy pursuant
to 14 U.S.C. 195.
(b) The United States Merchant Marine Academy 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 stu-
dents pursuant to section 342(b) of this Compact, as amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Government
of the 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 Pacific area shall be the senior
United States member of the Joint Committee. For the meetings
of the Joint Committee, each of the two Governments may designate
additional or alternate representatives as appropriate for the subject
matter under consideration.
(c) Unless otherwise mutually agreed, the Joint Committee
shall meet annually at a time and place to be designated, after
appropriate consultation, by the Government of the United States.
The Joint Committee also shall meet promptly upon request of
either of its members. The Joint Committee shall follow such proce-
dures, 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 Committee
of the United States and the Republic of the Marshall Islands
shall meet promptly in a combined session with the Joint Committee
established and maintained by the Government of the United States
and the Government of the Federated States of Micronesia to con-
sider 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 Defense personally regarding any unresolved issue
which threatens its continued association with the Government
of the United States.
Section 352
In the exercise of its authority and responsibility under Title
Three, the Government of the United States shall accord due respect
to the authority and responsibility of the Government of the
Republic of the Marshall Islands under Titles One, Two and Four
and to the responsibility of the Government of the Republic of
the Marshall Islands to assure the well-being of its people.
H. J. Res. 63—106
Section 353
(a) The Government of the United States shall not include
the Government of the Republic of the Marshall Islands as a named
party to a formal declaration of war, without that Government’s
consent.
(b) Absent such consent, this Compact, as amended, is without
prejudice, on the ground of belligerence or the existence of a state
of war, to any claims for damages which are advanced by the
citizens, nationals or Government of the Republic of the Marshall
Islands, which arise out of armed conflict subsequent to October
21, 1986, and which are:
(1) petitions to the Government of the United States for
redress; or
(2) claims in any manner against the government, citizens,
nationals or entities of any third country.
(c) Petitions under section 353(b)(1) shall be treated as if they
were made by citizens of the United States.
Section 354
(a) The Government of the United States and the Government
of the 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 Govern-
ment of the Republic of the Marshall Islands, acting unilaterally,
terminates this Title, such unilateral termination shall be consid-
ered to be termination of the entire Compact, as amended, in
which case the provisions of section 442 and 452 (in the case
of termination by the Government of the United States) or sections
443 and 453 (in the case of termination by the Government of
the Republic of the Marshall Islands), with the exception of para-
graph (3) of subsection (a) of section 452 or paragraph (3) of sub-
section (a) of section 453, as the case may be, shall apply.
(b) The Government of the United States recognizes, in view
of the special relationship between the Government of the United
States and the Government of the Republic of the Marshall Islands,
and in view of the existence of the separate agreement regarding
mutual security concluded with the Government of the Republic
of the Marshall 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 constitutional processes.
(c) As reflected in Article 21(1)(b) of the Trust Fund Agreement,
the Government of the United States and the Government of the
Republic of the Marshall Islands further 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
H. J. Res. 63—107
Government, to be incompatible with its authority 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 sub-
section (e) of section 461 of the Compact, as amended, 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 Marshall Islands subsequent to completion of the
following:
(a) Approval by the Government of the Republic of the
Marshall Islands in accordance with its constitutional proc-
esses.
(b) Approval by the Government of the United States in
accordance with its constitutional processes.
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 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 Compact, as amended, or of its related agree-
ments.
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 Marshall 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 accordance with section 424.
Section 424
Should a dispute be referred to arbitration as provided for
in section 423, an Arbitration Board shall be established for the
purpose of hearing the dispute and rendering a decision which
shall be binding upon the two parties to the dispute unless the
two parties mutually agree that the decision shall be advisory.
Arbitration shall occur according to the following terms:
(a) An Arbitration Board shall consist of a Chairman and
two other members, each of whom shall be a citizen of a
party to the dispute. Each of the two Governments that is
H. J. Res. 63—108
a party to the dispute shall appoint one member to the Arbitra-
tion Board. If either party to the dispute does not fulfill the
appointment requirements of this section within 30 days of
referral of the dispute to arbitration pursuant 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 Chairman
within 15 days after selection of the other members of the
Arbitration Board. Failing agreement 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 Arbitration Board shall have
jurisdiction to hear and render its final determination on all
disputes arising exclusively under Articles I, II, III, IV and
V of Title One, Title Two, Title Four, and their related agree-
ments.
(c) Each member of the Arbitration Board shall have one
vote. Each decision of the Arbitration Board shall be reached
by majority vote.
(d) In determining any legal issue, the Arbitration Board
may have reference to international law and, in such reference,
shall apply as guidelines the provisions set 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 arguments.
The Arbitration Board shall make findings of fact and conclu-
sions 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 remainder
shall be borne by the Government of the Republic of the Mar-
shall Islands.
Article III
Amendment
Section 431
The provisions of this Compact, as amended, may be further
amended by mutual agreement of the Government of the United
States and the Government of the Republic of the Marshall Islands,
in accordance with their respective constitutional processes.
Article IV
Termination
Section 441
This Compact, as amended, may be terminated by mutual
agreement of the Government of the Republic of the Marshall
Islands and the Government of the United States, in accordance
H. J. Res. 63—109
with their respective constitutional processes. Such mutual termi-
nation of this Compact, as amended, shall be without prejudice
to the continued application of section 451 of this Compact, as
amended, and the provisions of the Compact, as amended, set
forth therein.
Section 442
Subject to section 452, this Compact, as amended, may be
terminated by the Government of the United States in accordance
with its constitutional processes. Such termination shall be effective
on the date specified in the notice of termination by the Government
of the United States but not earlier than six months following
delivery of such notice. The time specified in the notice of termi-
nation may be extended. Such termination of this Compact, as
amended, shall be without prejudice to the continued application
of section 452 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
Section 443
This Compact, as amended, shall be terminated by the Govern-
ment of the Republic of the Marshall Islands, pursuant to its
constitutional processes, subject to section 453 if the people rep-
resented by that Government vote in a plebiscite to terminate
the Compact. The Government of the Republic of the Marshall
Islands shall notify the Government of the United States of its
intention to call such a plebiscite, which shall take place not earlier
than three months after delivery of such notice. The plebiscite
shall be administered by the Government of the Republic of the
Marshall Islands in accordance with its constitutional and legisla-
tive processes, but the Government of the United States may send
its own observers and invite observers from a mutually agreed
party. If a majority of the valid ballots cast in the plebiscite favors
termination, the Government of the Republic of the Marshall
Islands shall, upon certification of the results of the plebiscite,
give notice of termination to the Government of the United States,
such termination to be effective on the date specified in such notice
but not earlier than three months following the date of delivery
of such notice. The time specified in the notice of termination
may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441, economic
and other assistance by the Government of the United States shall
continue only if and as mutually agreed by the Governments of
the United States and the Republic of the Marshall Islands, and
in accordance with the countries’ respective constitutional processes.
(b) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
(b) and (c) of section 354 of this Compact, as amended, and the
separate agreement entered into consistent with those subsections,
if termination occurs pursuant to section 441 prior to the twentieth
anniversary of the effective date of this Compact, as amended,
the United States shall continue to make contributions to the Trust
Fund described in section 216 of this Compact, as amended.
H. J. Res. 63—110
(c) In view of the special relationship of the United States
and the Republic of the Marshall Islands described in subsection
(b) of this section, if termination occurs pursuant to section 441
following the twentieth anniversary of the effective date of this
Compact, as amended, the Republic of the Marshall Islands shall
be entitled to receive proceeds from the Trust Fund described in
section 216 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
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 amended Compact
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) Article One and 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 this Compact,
as amended:
(1) Except as provided in paragraph (2) of this subsection
and subsection (c) of this section, economic and other assistance
by the United States shall continue only if and as mutually
agreed by the Governments of the United States and the
Republic of the Marshall Islands.
(2) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in sub-
sections (b) and (c) of section 354 of this Compact, as amended,
and the separate agreement regarding mutual security, and
the Trust Fund Agreement, the United States shall continue
to make contributions to the Trust Fund described in section
216 of this Compact, as amended, in the manner described
in the Trust Fund Agreement.
(c) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 442 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Republic of the Marshall Islands shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 216 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 453
(a) Should termination occur pursuant to section 443 prior
to the twentieth anniversary of the effective date of this Compact,
as amended, the following provisions of this Compact, as amended,
shall remain in full force and effect until the twentieth anniversary
of the effective date of this Compact, as amended, and thereafter
as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
H. J. Res. 63—111
(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 Republic of the Marshall Islands shall promptly consult
with regard to their future relationship. Except as provided in
subsections (c) and (d) of this section, these consultations shall
determine the level of economic and other assistance, if any, which
the Government of the United States shall provide to the Govern-
ment of the Republic of the Marshall Islands for the period ending
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 Republic of the Marshall Islands, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 prior to the
twentieth anniversary of the effective date of this Compact, as
amended, the United States shall continue to make contributions
to the Trust Fund described in section 216 of this Compact, as
amended.
(d) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Republic of the Marshall Islands shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 216 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:
(a) The Government of the United States reaffirms its
continuing interest in promoting the economic advancement
and budgetary self-reliance of the people of the Republic of
the Marshall Islands.
(b) The separate agreements referred to in Article II of
Title Three shall remain in effect in accordance with their
terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only, and without
prejudice to the views of the Government of the United States
or the Government of the Republic of the Marshall Islands 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 Islands and Truk as described in Title One, Trust
Territory Code, section 1, in force on January 1, 1979. This