IB 
Union Calendar No. 155
108TH CONGRESS 
1ST SESSION 
H. J. RES. 63
[Report No. 108–262, Parts I, II, and III] 
To approve the ‘‘Compact of Free Association, as amended between the 
Government of the United States of America and the Government of 
the Federated States of Micronesia’’, and the ‘‘Compact of Free Associa-
tion, as amended between the Government of the United States of Amer-
ica and the Government of the Republic of the Marshall Islands’’, and 
otherwise to amend Public Law 99–239, and to appropriate for the 
purposes of amended Public Law 99–239 for fiscal years ending on 
or before September 30, 2023, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 8, 2003
Mr. LEACH (for himself, Mr. POMBO, Mr. RAHALL, Mr. HYDE, Mr. LANTOS, 
and Mr. FALEOMAVAEGA) (all by request) introduced the following joint 
resolution; which was referred to the Committee on International Rela-
tions, and in addition to the Committee on Resources, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
SEPTEMBER 4, 2003
Reported from the Committee on International Relations with an amendment 
[Strike out all after the resolving clause and insert the part printed in italic] 
SEPTEMBER 4, 2003
Referral to the Committee on Resources extended for a period ending not later 
than September 15, 2003
SEPTEMBER 4, 2003
Referred to the Committee on the Judiciary for a period ending not later than 
September 15, 2003, for consideration of such provisions of the bill and 
amendment as fall within the jurisdiction of that committee pursuant to 
clause 1(k), rule X
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SEPTEMBER 15, 2003
Reported from the Committee on Resources with an amendment 
[Strike out all after the resolving clause and insert the part printed in boldface roman] 
SEPTEMBER 15, 2003
Reported from the Committee on the Judiciary with an amendment; com-
mitted to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
[Strike out all after the resolving clause and insert the part printed in italic] 
[For text of introduced joint resolution, see copy of joint resolution as introduced on July 8, 
2003] 
JOINT RESOLUTION 
To approve the ‘‘Compact of Free Association, as amended 
between the Government of the United States of America 
and the Government of the Federated States of Micro-
nesia’’, and the ‘‘Compact of Free Association, as amend-
ed between the Government of the United States of 
America and the Government of the Republic of the 
Marshall Islands’’, and otherwise to amend Public Law 
99–239, and to appropriate for the purposes of amended 
Public Law 99–239 for fiscal years ending on or before 
September 30, 2023, and for other purposes.
Whereas the United States, in accordance with section 231 
of the Compact of Free Association set forth in Title II 
of Public Law 99–239, January 14, 1986, 99 Stat. 1770, 
entered into negotiations with the Governments of the 
Federated States of Micronesia and the Republic of the 
Marshall Islands; and 
Whereas these negotiations, in accordance with section 431 of 
the Compact, resulted in the ‘‘Compact of Free Associa-
tion, as amended between the Government of the United 
States of America and the Government of the Federated
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States of Micronesia’’, and the ‘‘Compact of Free Asso-
ciation, as amended between the Government of the 
United States of America and the Government of the Re-
public of the Marshall Islands’’, which, together with 
their related agreements, were signed by the Government 
of the United States and the Governments of the Fed-
erated States of Micronesia and the Republic of the Mar-
shall Islands on May 14, and April 30, 2003, respec-
tively: Now, therefore, be it
Resolved by the Senate and House of Representatives 
of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This joint resolution, together 
with the Table of Contents in subsection (b) of this section, 
may be cited as the ‘‘Compact of Free Association Amend-
ments Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this joint resolution is as follows:
TITLE I—APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT; 
INTERPRETATION OF, AND UNITED STATES POLICIES REGARD-
ING, U.S.-FSM COMPACT AND U.S.-RMI COMPACT; SUPPLEMENTAL 
PROVISIONS 
Sec. 101. Approval of U.S.-FSM Compact of Free Association and U.S.-RMI 
Compact of Free Association. 
(a) Federated States of Micronesia. 
(b) Republic of the Marshall Islands. 
(c) References to the Compact, the U.S.-FSM Compact and the U.S.-RMI 
Compact. 
(d) Amendment, Change, or Termination in the U.S.-FSM Compact, the 
U.S.-RMI Compact and Certain Agreements. 
(e) Subsidiary Agreement Deemed Bilateral. 
(f) Entry Into Force of Future Amendments to Subsidiary Agreements. 
Sec. 102. Agreements With Federated States of Micronesia. 
(a) Law Enforcement Assistance. 
(b) Agreement on Audits. 
Sec. 103. Agreements With and Other Provisions Related to the Republic of the 
Marshall Islands.
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Sec. 110. Payment of Citizens of the Federated States of Micronesia, the Republic 
of the Marshall Islands, and the Republic of Palau Employed by 
the Government of the United States in the Continental United 
States.
TITLE II—COMPACTS OF FREE ASSOCIATION WITH THE FED-
ERATED STATES OF MICRONESIA AND THE REPUBLIC OF THE 
MARSHALL ISLANDS 
Sec. 201. Compacts of Free Association, as Amended. 
(a) Compact of Free Association as amended between the Government of the 
United States of America and the Government of the Fed-
erated States of Micronesia. 
Title One—Governmental Relations 
Article I—Self-Government. 
Article II—Foreign Affairs. 
Article III—Communications. 
Article IV—Immigration. 
Article V—Representation. 
Article VI—Environmental Protection. 
Article VII—General Legal Provisions. 
Title Two—Economic Relations
Article I—Grant Assistance. 
Article II—Services and Program Assistance. 
Article III—Administrative Provisions. 
Article IV—Trade. 
Article V—Finance and Taxation. 
Title Three—Security and Defense Relations 
Article I—Authority and Responsibility. 
Article II—Defense Facilities and Operating Rights. 
Article III—Defense Treaties and International Security Agreements. 
Article IV—Service in Armed Forces of the United States. 
Article V—General Provisions. 
Title Four—General Provisions 
Article I—Approval and Effective Date. 
Article II—Conference and Dispute Resolution. 
Article III—Amendment. 
Article IV—Termination. 
Article V—Survivability. 
Article VI—Definition of Terms. 
Article VII—Concluding Provisions. 
(b) Compact of Free Association as amended between the Government of the 
United States of America and the Government of the Re-
public of the Marshall Islands. 
Title One—Governmental Relations 
Article I—Self-Government. 
Article II—Foreign Affairs. 
Article III—Communications.
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Article IV—Immigration. 
Article V—Representation. 
Article VI—Environmental Protection. 
Article VII—General Legal Provisions. 
Title Two—Economic Relations 
Article I—Grant Assistance. 
Article II—Services and Program Assistance. 
Article III—Administrative Provisions. 
Article IV—Trade. 
Article V—Finance and Taxation. 
Title Three—Security and Defense Relations 
Article I—Authority and Responsibility. 
Article II—Defense Facilities and Operating Rights. 
Article III—Defense Treaties and International Security Agreements. 
Article IV—Service in Armed Forces of the United States. 
Article V—General Provisions. 
Title Four—General Provisions 
Article I—Approval and Effective Date. 
Article II—Conference and Dispute Resolution. 
Article III—Amendment. 
Article IV—Termination. 
Article V—Survivability. 
Article VI—Definition of Terms. 
Article VII—Concluding Provisions.
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TITLE I—APPROVAL OF U.S.-FSM 
COMPACT AND U.S.-RMI COM-
PACT; INTERPRETATION OF, 
AND U.S. POLICIES REGARD-
ING, U.S.-FSM COMPACT AND 
U.S.-RMI COMPACT; SUPPLE-
MENTAL PROVISIONS 
SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSO-
CIATION AND THE U.S.-RMI COMPACT OF 
FREE ASSOCIATION; REFERENCES TO SUB-
SIDIARY AGREEMENTS OR SEPARATE AGREE-
MENTS. 
(a) FEDERATED STATES OF MICRONESIA.—The Com-
pact of Free Association, as amended with respect to the 
Federated States of Micronesia and signed by the United 
States and the Government of the Federated States of Micro-
nesia and set forth in Title II (section 201(a)) of this joint 
resolution, is hereby approved, and Congress hereby con-
sents to the subsidiary agreements and amended subsidiary 
agreements listed in section 462 of the U.S.-FSM Compact. 
Subject to the provisions of this joint resolution, the Presi-
dent is authorized to agree, in accordance with section 411 
of the U.S.-FSM Compact, to an effective date for and there-
after to implement such U.S.-FSM Compact.
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(b) REPUBLIC
OF
THE MARSHALL ISLANDS.—The 
Compact of Free Association, as amended with respect to 
the Republic of the Marshall Islands and signed by the 
United States and the Government of the Republic of the 
Marshall Islands and set forth in Title II (section 201(b)) 
of this joint resolution, is hereby approved, and Congress 
hereby consents to the subsidiary agreements and amended 
subsidiary agreements listed in section 462 of the U.S.-RMI 
Compact. Subject to the provisions of this joint resolution, 
the President is authorized to agree, in accordance with sec-
tion 411 of the U.S.-RMI Compact, to an effective date for 
and thereafter to implement such U.S.-RMI Compact. 
(c) REFERENCES TO THE COMPACT, THE U.S.-FSM 
COMPACT, AND THE U.S.-RMI COMPACT; REFERENCES TO 
SUBSIDIARY AGREEMENTS OR SEPARATE AGREEMENTS.—
(1) Any reference in this joint resolution (except 
references in Title II) to ‘‘the Compact’’ shall be treat-
ed as a reference to the Compact of Free Association 
set forth in title II of Public Law 99–239, January 
14, 1986, 99 Stat. 1770. Any reference in this joint 
resolution to the ‘‘U.S.-FSM Compact’’ shall be treat-
ed as a reference to the Compact of Free Association, 
as amended between the Government of the United 
States of America and the Government of the Fed-
erated States of Micronesia and set forth in Title II
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(section 201(a)) of this joint resolution. Any reference 
in this joint resolution to the ‘‘U.S.-RMI Compact’’ 
shall be treated as a reference to the Compact of Free 
Association, as amended between the Government of 
the United States of America and the Government of 
the Republic of the Marshall Islands and set forth in 
Title II (section 201(b)) of this joint resolution. 
(2) Any reference to the term ‘‘subsidiary agree-
ments’’ or ‘‘separate agreements’’ in this joint resolu-
tion shall be treated as a reference to agreements list-
ed in section 462 of the U.S.-FSM Compact and the 
U.S.-RMI Compact, and any other agreements that 
the United States may from time to time enter into 
with either the government of the Federated States of 
Micronesia or the government of the Republic of the 
Marshall Islands, or with both such governments in 
accordance with the provisions of the U.S.-FSM Com-
pact and the U.S.-RMI Compact. 
(d) AMENDMENT, CHANGE, OR TERMINATION IN THE 
U.S.-FSM COMPACT AND U.S.-RMI COMPACT AND CER-
TAIN AGREEMENTS.—
(1) Any amendment, change, or termination by 
mutual agreement or by unilateral action of the Gov-
ernment of the United States of all or any part of the 
U.S.-FSM Compact or U.S.-RMI Compact shall not
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enter into force until after Congress has incorporated 
it in an Act of Congress. 
(2) The provisions of paragraph (1) shall 
apply—
(A) to all actions of the Government of the 
United States under the U.S.-FSM Compact or 
U.S.-RMI Compact including, but not limited to, 
actions taken pursuant to sections 431, 441, or 
442; 
(B) to any amendment, change, or termi-
nation in the Agreement Between the Govern-
ment of the United States and the Government 
of the Federated States of Micronesia Regarding 
Friendship, Cooperation and Mutual Security 
Concluded Pursuant to Sections 321 and 323 of 
the Compact of Free Association referred to in 
section 462(a)(2) of the U.S.-FSM Compact and 
the Agreement Between the Government of the 
United States and the Government of the Mar-
shall Islands Regarding Mutual Security Con-
cluded Pursuant to Sections 321 and 323 of the 
Compact of Free Association referred to in sec-
tion 462(a)(5) of the U.S.-RMI Compact; 
(C) to any amendment, change, or termi-
nation of the agreements concluded pursuant to
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Compact section 177, and section 215(a) of the 
U.S.-FSM Compact and section 216(a) of the 
U.S.-RMI Compact, the terms of which are in-
corporated by reference into the U.S.-FSM Com-
pact and the U.S.-RMI Compact; and 
(D) to the following subsidiary agreements, 
or portions thereof: Articles III, IV and X of the 
agreement referred to in section 462(b)(6) of the 
U.S.-RMI Compact: 
(i) Article III and IV of the agreement 
referred to in section 462(b)(6) of the U.S.-
FSM Compact. 
(ii) Articles VI, XV, and XVII of the 
agreement referred to in section 462(b)(7) of 
the U.S.-FSM Compact and U.S.-RMI 
Compact. 
(e) SUBSIDIARY AGREEMENTS DEEMED BILATERAL.—
For purposes of implementation of the U.S.-FSM Compact 
and the U.S.-RMI Compact and this joint resolution, the 
Agreement Concluded Pursuant to Section 234 of the Com-
pact of Free Association and referred to in section 462(a)(1) 
of the U.S.-FSM Compact and section 462(a)(4) of the U.S.-
RMI Compact shall be deemed to be a bilateral agreement 
between the United States and each other party to such sub-
sidiary agreement. The consent or concurrence of any other
•HJ 63 RH 
party shall not be required for the effectiveness of any ac-
tions taken by the United States in conjunction with either 
the Federated States of Micronesia or the Republic of the 
Marshall Islands which are intended to affect the implemen-
tation, modification, suspension, or termination of such 
subsidiary agreement (or any provision thereof) as regards 
the mutual responsibilities of the United States and the 
party in conjunction with whom the actions are taken. 
(f) ENTRY INTO FORCE OF FUTURE AMENDMENTS TO 
SUBSIDIARY AGREEMENTS.—No agreement between the 
United States and the government of either the Federated 
States of Micronesia or the Republic of the Marshall Islands 
which would amend, change, or terminate any subsidiary 
agreement or portion thereof, other than those set forth is 
subsection (d) of this section shall enter into force until after 
the President has transmitted such agreement to the Presi-
dent of the Senate and the Speaker of the House of Rep-
resentatives together with an explanation of the agreement 
and the reasons therefor. In the case of the agreement re-
ferred to in section 462(b)(3) of the U.S.-FSM Compact and 
the U.S.-RMI Compact, such transmittal shall include a 
specific statement by the Secretary of Labor as to the neces-
sity of such amendment, change, or termination, and the 
impact thereof.
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SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MI-
CRONESIA. 
(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to 
sections 222 and 224 of the U.S.-FSM Compact, the United 
States shall provide non-reimbursable technical and train-
ing assistance as appropriate, including training and 
equipment for postal inspection of illicit drugs and other 
contraband, to enable the Government of the Federated 
States of Micronesia to develop and adequately enforce laws 
of the Federated States of Micronesia and to cooperate with 
the United States in the enforcement of criminal laws of 
the United States. Funds appropriated pursuant to section 
105(j) of this title may be used to reimburse State or local 
agencies providing such assistance. 
(b) AGREEMENT ON AUDITS.—The Comptroller Gen-
eral (and his duly authorized representatives) shall have the 
authorities necessary to carry out his responsibilities under 
section 232 of the U.S.-FSM Compact and the agreement 
referred to in section 462(b)(4) of the U.S.-FSM Compact, 
including the following authorities: 
(1) GENERAL AUTHORITY OF THE COMPTROLLER 
GENERAL TO AUDIT.—
(A) The Comptroller General of the United 
States (and his duly authorized representatives) 
shall have the authority to audit—
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(i) all grants, program assistance, and 
other assistance provided to the Government 
of the Federated States of Micronesia under 
Articles I and II of Title Two of the U.S.-
FSM Compact; and 
(ii) any other assistance provided by 
the Government of the United States to the 
Government of the Federated States of Mi-
cronesia. 
Such authority shall include authority for the 
Comptroller General to conduct or cause to be 
conducted any of the audits provided for in sec-
tion 232 of the U.S.-FSM Compact. The author-
ity provided in this paragraph shall continue for 
at least three years after the last such grant has 
been made or assistance has been provided. 
(B) The Comptroller General (and his duly 
authorized representatives) shall also have au-
thority to review any audit conducted by or on 
behalf of the Government of the United States. In 
this connection, the Comptroller General shall 
have access to such personnel and to such 
records, documents, working papers, automated 
data and files, and other information relevant to 
such review.
•HJ 63 RH 
(2) 
COMPTROLLER
GENERAL
ACCESS
TO 
RECORDS.—
(A) In carrying out paragraph (1), the 
Comptroller General (and his duly authorized 
representatives) shall have such access to the per-
sonnel and (without cost) to records, documents, 
working papers, automated data and files, and 
other information relevant to such audits. The 
Comptroller General may duplicate any such 
records, documents, working papers, automated 
data and files, or other information relevant to 
such audits. 
(B) Such records, documents, working pa-
pers, automated data and files, and other infor-
mation regarding each such grant or other as-
sistance shall be maintained for at least three 
years after the date such grant or assistance was 
provided and in a manner that permits such 
grants, assistance, and payments to be accounted 
for distinct from any other funds of the Govern-
ment of the Federated States of Micronesia. 
(3) STATUS
OF
COMPTROLLER
GENERAL
REP-
RESENTATIVES.—The Comptroller General and his 
duly authorized representatives shall be immune from 
civil and criminal process relating to words spoken or
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written and all acts performed by them in their offi-
cial capacity and falling within their functions, ex-
cept insofar as such immunity may be expressly 
waived by the Government of the United States. The 
Comptroller General and his duly authorized rep-
resentatives shall not be liable to arrest or detention 
pending trial, except in the case of a grave crime and 
pursuant to a decision by a competent judicial au-
thority, and such persons shall enjoy immunity from 
seizure of personal property, immigration restrictions, 
and 
laws 
relating 
to 
alien 
registration, 
fingerprinting, and the registration of foreign agents. 
Such persons shall enjoy the same taxation exemp-
tions as are set forth in Article 34 of the Vienna Con-
vention on Diplomatic Relations. The privileges, ex-
emptions and immunities accorded under this para-
graph are not for the personal benefit of the individ-
uals concerned but are to safeguard the independent 
exercise of their official functions. Without prejudice 
to those privileges, exemptions and immunities, it is 
the duty of all such persons to respect the laws and 
regulations of the Government of the Federated States 
of Micronesia. 
(4) AUDITS
DEFINED.—As used in this sub-
section, the term ‘‘audits’’ includes financial, pro-
•HJ 63 RH 
gram, and management audits, including deter-
mining—
(A) whether the Government of the Fed-
erated States of Micronesia has met the require-
ments set forth in the U.S.-FSM Compact, or 
any related agreement entered into under the 
U.S.-FSM Compact, regarding the purposes for 
which such grants and other assistance are to be 
used; and 
(B) the propriety of the financial trans-
actions of the Government of the Federated 
States of Micronesia pursuant to such grants or 
assistance. 
(5) COOPERATION BY FEDERATED STATES OF MI-
CRONESIA.—The Government of the Federated States 
of Micronesia will cooperate fully with the Comp-
troller General of the United States in the conduct of 
such audits as the Comptroller General determines 
necessary to enable the Comptroller General to fully 
discharge his responsibilities under this joint resolu-
tion.
•HJ 63 RH 
SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RE-
LATED TO THE REPUBLIC OF THE MARSHALL 
ISLANDS. 
(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to 
sections 222 and 224 of the U.S.-RMI Compact, the United 
States shall provide non-reimbursable technical and train-
ing assistance as appropriate, including training and 
equipment for postal inspection of illicit drugs and other 
contraband, to enable the Government of the Marshall Is-
lands to develop and adequately enforce laws of the Mar-
shall Islands and to cooperate with the United States in 
the enforcement of criminal laws of the United States. 
Funds appropriated pursuant to section 105(j) of this title 
may be used to reimburse State or local agencies providing 
such assistance. 
(b) EJIT.—
(1) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that the 
President of the United States shall negotiate with the 
Government of the Marshall Islands an agreement 
whereby, without prejudice as to any claims which 
have been or may be asserted by any party as to 
rightful title and ownership of any lands on Ejit, the 
Government of the Marshall Islands shall assure that 
lands on Ejit used as of January 1, 1985, by the peo-
ple of Bikini, will continue to be available without
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charge for their use, until such time as Bikini is re-
stored and inhabitable and the continued use of Ejit 
is no longer necessary, unless a Marshall Islands 
court of competent jurisdiction finally determines that 
there are legal impediments to continued use of Ejit 
by the people of Bikini. 
(2) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that if the 
impediments described in paragraph (1) do arise, the 
United States will cooperate with the Government of 
the Marshall Islands in assisting any person ad-
versely affected by such judicial determination to re-
main on Ejit, or in locating suitable and acceptable 
alternative lands for such person’s use. 
(3) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that para-
graph (1) shall not be applied in a manner which 
would prevent the Government of the Marshall Islands 
from acting in accordance with its constitutional 
processes to resolve title and ownership claims with 
respect to such lands or from taking substitute or ad-
ditional measures to meet the needs of the people of 
Bikini with their democratically expressed consent 
and approval.
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(4) The United States and the Republic of the 
Marshall Islands entered into an agreement in fur-
therance of paragraphs (1) through (3) of this sub-
section on July 21, 1986. Nothing in this subsection 
creates any rights or obligations beyond those pro-
vided for in the original enacted version of Public 
Law 99–239. 
(c) SECTION 177 AGREEMENT.—
(1) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that in fur-
therance of the purposes of Article I of the Subsidiary 
Agreement for Implementation of Section 177 of the 
Compact, the payment of the amount specified therein 
shall be made by the United States under Article I of 
the Agreement between the Government of the United 
States and the Government of the Marshall Islands 
for the Implementation of section 177 of the Compact 
(hereafter in this subsection referred to as the ‘‘Sec-
tion 177 Agreement’’) only after the Government of 
the Marshall Islands has notified the President of the 
United States as to which investment management 
firm has been selected by such Government to act as 
Fund Manager under Article I of the Section 177 
Agreement.
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(2) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that in the 
event that the President determines that an invest-
ment management firm selected by the Government of 
the Marshall Islands does not meet the requirements 
specified in Article I of the Section 177 Agreement, 
the United States shall invoke the conference and dis-
pute resolution procedures of Article II of Title Four 
of the Compact. Pending the resolution of such a dis-
pute and until a qualified Fund Manager has been 
designated, the Government of the Marshall Islands 
shall place the funds paid by the United States pur-
suant to Article I of the Section 177 Agreement into 
an interest-bearing escrow account. Upon designation 
of a qualified Fund Manager, all funds in the escrow 
account shall be transferred to the control of such 
Fund Manager for management pursuant to the Sec-
tion 177 Agreement. 
(3) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that if the 
Government of the Marshall Islands determines that 
some other investment firm should act as Fund Man-
ager in place of the firm first (or subsequently) se-
lected by such Government, the Government of the 
Marshall Islands shall so notify the President of the
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United States, identifying the firm selected by such 
Government to become Fund Manager, and the Presi-
dent shall proceed to evaluate the qualifications of 
such identified firm. 
(4) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that at the 
end of 15 years after the effective date of the Compact, 
the firm then acting as Fund Manager shall transfer 
to the Government of the Marshall Islands, or to such 
account as such Government shall so notify the Fund 
Manager, all remaining funds and assets being man-
aged by the Fund Manager under the Section 177 
Agreement. 
(5) The United States made the payment called 
for under paragraph (1) of this subsection in Novem-
ber 1986. Nothing in this subsection creates any 
rights or obligations beyond those provided for in the 
original enacted version of Public Law 99–239. 
(d) NUCLEAR TEST EFFECTS.—In the joint resolution 
of January 14, 1986 (Public Law 99–239) Congress pro-
vided that in approving the Compact, the Congress under-
stands and intends that the peoples of Bikini, Enewetak, 
Rongelap, and Utrik, who were affected by the United 
States nuclear weapons testing program in the Marshall Is-
lands, will receive the amounts of $75,000,000 (Bikini);
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$48,750,000 (Enewetak); $37,500,000 (Rongelap); and 
$22,500,000 (Utrik), respectively, which amounts shall be 
paid out of proceeds from the fund established under Article 
I, section 1 of the subsidiary agreement for the implementa-
tion of section 177 of the Compact. The amounts specified 
in this subsection shall be in addition to any amounts 
which may be awarded to claimants pursuant to Article 
IV of the subsidiary agreement for the implementation of 
Section 177 of the Compact. Nothing in this subsection cre-
ates any rights or obligations beyond those provided for in 
the original enacted version of Public Law 99–239. 
(e) ESPOUSAL PROVISIONS.—
(1) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that it is the 
intention of the Congress of the United States that the 
provisions of section 177 of the Compact of Free Asso-
ciation and the Agreement between the Government of 
the United States and the Government of the Marshall 
Islands for the Implementation of Section 177 of the 
Compact (hereafter in this subsection referred to as 
the ‘‘Section 177 Agreement’’) constitute a full and 
final settlement of all claims described in Articles X 
and XI of the Section 177 Agreement, and that any 
such claims be terminated and barred except insofar 
as provided for in the Section 177 Agreement.
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(2) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that in fur-
therance of the intention of Congress as stated in 
paragraph (1) of this subsection, the Section 177 
Agreement is hereby ratified and approved. It is the 
explicit understanding and intent of Congress that the 
jurisdictional limitations set forth in Article XII of 
such Agreement are enacted solely and exclusively to 
accomplish the objective of Article X of such Agree-
ment and only as a clarification of the effect of Arti-
cle X, and are not to be construed or implemented 
separately from Article X. 
(3) The amounts specified in paragraph (1) of 
this subsection were paid as specified. Nothing in this 
subsection creates any rights or obligations beyond 
those provided for in the original enacted version of 
Public Law 99–239. The provisions of section 177 of 
the Compact, section 177 of the U.S.-FSM Compact, 
section 177 of the U.S.-RMI Compact, and the Sec-
tion 177 Agreement constitute a full and final settle-
ment of all claims described in Articles X and XI of 
the Section 177 Agreement, and any such claims are 
terminated and barred. 
(f) DOE RADIOLOGICAL HEALTH CARE PROGRAM; 
USDA AGRICULTURAL AND FOOD PROGRAMS.—
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(1) MARSHALL
ISLANDS
PROGRAM.—Notwith-
standing any other provision of law, upon the request 
of the Government of the Republic of the Marshall Is-
lands, the President (either through an appropriate 
department or agency of the United States or by con-
tract with a United States firm) shall continue to 
provide special medical care and logistical support 
thereto for the remaining 118 (as of April 30, 2003) 
members of the population of Rongelap and Utrik 
who were exposed to radiation resulting from the 
1954 United States thermo-nuclear ‘‘Bravo’’ test, pur-
suant to Public Laws 95–134 and 96–205. 
(2) AGRICULTURAL AND FOOD PROGRAMS.—In 
the joint resolution of January 14, 1986 (Public Law 
99–239) Congress provided that notwithstanding any 
other provision of law, upon the request of the Gov-
ernment of the Marshall Islands, for the first fifteen 
years after the effective date of the Compact, the 
President (either through an appropriate department 
or agency of the United States or by contract with a 
United States firm or by a grant to the Government 
of the Republic of the Marshall Islands which may 
further contract only with a United States firm or a 
Republic of the Marshall Islands firm, the owners, of-
ficers and majority of the employees of which are citi-
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zens of the United States or the Republic of the Mar-
shall Islands) shall provide technical and other assist-
ance—
(A) without reimbursement, to continue the 
planting and agricultural maintenance program 
on Enewetak; 
(B) without reimbursement, to continue the 
food programs of the Bikini and Enewetak peo-
ple described in section 1(d) of Article II of the 
Subsidiary Agreement for the Implementation of 
Section 177 of the Compact and for continued 
waterborne transportation of agricultural prod-
ucts to Enewetak including operations and 
maintenance of the vessel used for such purposes. 
The President shall ensure the assistance provided 
under these programs reflects the changes in the popu-
lation since the inception of such programs. 
(3) PAYMENTS.—In the joint resolution of Janu-
ary 14, 1986 (Public Law 99–239) Congress provided 
that payments under this subsection shall be provided 
to such extent or in such amounts as are necessary for 
services and other assistance provided pursuant to 
this subsection. It is the sense of Congress that after 
the periods of time specified in paragraphs (1) and 
(2) of this subsection, consideration will be given to
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such additional funding for these programs as may be 
necessary. Nothing in this subsection creates any 
rights or obligations beyond those provided for in the 
original enacted version of Public Law 99–239. 
(g) RONGELAP.—
(1) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that because 
Rongelap was directly affected by fallout from a 1954 
United States thermonuclear test and because the 
Rongelap people remain unconvinced that it is safe to 
continue to live on Rongelap Island, it is the intent 
of Congress to take such steps (if any) as may be nec-
essary to overcome the effects of such fallout on the 
habitability of Rongelap Island, and to restore 
Rongelap Island, if necessary, so that it can be safely 
inhabited. Accordingly, it is the expectation of the 
Congress that the Government of the Marshall Islands 
shall use such portion of the funds specified in Article 
II, section 1(e) of the subsidiary agreement for the 
implementation of section 177 of the Compact as are 
necessary for the purpose of contracting with a quali-
fied scientist or group of scientists to review the data 
collected by the Department of Energy relating to ra-
diation levels and other conditions on Rongelap Is-
land resulting from the thermonuclear test. It is the
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expectation of the Congress that the Government of the 
Marshall Islands, after consultation with the people of 
Rongelap, shall select the party to review such data, 
and shall contract for such review and for submission 
of a report to the President of the United States and 
the Congress as to the results thereof. 
(2) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that the pur-
pose of the review referred to in paragraph (1) of this 
subsection shall be to establish whether the data cited 
in support of the conclusions as to the habitability of 
Rongelap Island, as set forth in the Department of 
Energy report entitled: ‘‘The Meaning of Radiation 
for Those Atolls in the Northern Part of the Marshall 
Islands That Were Surveyed in 1978’’, dated Novem-
ber 1982, are adequate and whether such conclusions 
are fully supported by the data. If the party review-
ing the data concludes that such conclusions as to 
habitability are fully supported by adequate data, the 
report to the President of the United States and the 
Congress shall so state. If the party reviewing the 
data concludes that the data are inadequate to sup-
port such conclusions as to habitability or that such 
conclusions as to habitability are not fully supported 
by the data, the Government of the Marshall Islands
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shall contract with an appropriate scientist or group 
of scientists to undertake a complete survey of radi-
ation and other effects of the nuclear testing program 
relating to the habitability of Rongelap Island. Such 
sums as are necessary for such survey and report con-
cerning the results thereof and as to steps needed to 
restore the habitability of Rongelap Island are au-
thorized to be made available to the Government of 
the Marshall Islands. 
(3) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that it is the 
intent of Congress that such steps (if any) as are nec-
essary to restore the habitability of Rongelap Island 
and return the Rongelap people to their homeland 
will be taken by the United States in consultation 
with the Government of the Marshall Islands and, in 
accordance with its authority under the Constitution 
of the Marshall Islands, the Rongelap local govern-
ment council. Nothing in this subsection creates any 
rights or obligations beyond those provided for in the 
original enacted version of Public Law 99–239. 
(h) FOUR ATOLL HEALTH CARE PROGRAM.—
(1) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that services 
provided by the United States Public Health Service
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or any other United States agency pursuant to sec-
tion 1(a) of Article II of the Agreement for the Imple-
mentation of Section 177 of the Compact (hereafter in 
this subsection referred to as the ‘‘Section 177 Agree-
ment’’) shall be only for services to the people of the 
Atolls of Bikini, Enewetak, Rongelap, and Utrik who 
were affected by the consequences of the United States 
nuclear testing program, pursuant to the program de-
scribed in Public Law 95–134 (91 Stat. 1159) and 
Public Law 96–205 (94 Stat. 84) and their descend-
ants (and any other persons identified as having been 
so affected if such identification occurs in the manner 
described in such public laws). Nothing in this sub-
section shall be construed as prejudicial to the views 
or policies of the Government of the Marshall Islands 
as to the persons affected by the consequences of the 
United States nuclear testing program. 
(2) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that at the 
end of the first year after the effective date of the 
Compact and at the end of each year thereafter, the 
providing agency or agencies shall return to the Gov-
ernment of the Marshall Islands any unexpended 
funds to be returned to the Fund Manager (as de-
scribed in Article I of the Section 177 Agreement) to
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be covered into the Fund to be available for future 
use. 
(3) In the joint resolution of January 14, 1986 
(Public Law 99–239) Congress provided that the 
Fund Manager shall retain the funds returned by the 
Government of the Marshall Islands pursuant to 
paragraph (2) of this subsection, shall invest and 
manage such funds, and at the end of 15 years after 
the effective date of the Compact, shall make from the 
total amount so retained and the proceeds thereof an-
nual disbursements sufficient to continue to make 
payments for the provision of health services as speci-
fied in paragraph (1) of this subsection to such extent 
as may be provided in contracts between the Govern-
ment of the Marshall Islands and appropriate United 
States providers of such health services. Nothing in 
this subsection creates any rights or obligations be-
yond those provided for in the original enacted 
version of Public Law 99–239. 
(i) ENJEBI COMMUNITY TRUST FUND.—In the joint 
resolution of January 14, 1986 (Public Law 99–239) Con-
gress provided that notwithstanding any other provision of 
law, the Secretary of the Treasury shall establish on the 
books of the Treasury of the United States a fund having 
the status specified in Article V of the subsidiary agreement
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for the implementation of Section 177 of the Compact, to 
be known as the ‘‘Enjebi Community Trust Fund’’ (here-
after in this subsection referred to as the ‘‘Fund’’), and shall 
credit to the Fund the amount of $7,500,000. Such amount, 
which shall be ex gratia, shall be in addition to and not 
charged against any other funds provided for in the Com-
pact and its subsidiary agreements, this joint resolution, 
or any other Act. Upon receipt by the President of the 
United States of the agreement described in this subsection, 
the Secretary of the Treasury, upon request of the Govern-
ment of the Marshall Islands, shall transfer the Fund to 
the Government of the Marshall Islands, provided that the 
Government of the Marshall Islands agrees as follows: 
(1) ENJEBI TRUST AGREEMENT.—In the joint 
resolution of January 14, 1986 (Public Law 99–239) 
Congress provided that the Government of the Mar-
shall Islands and the Enewetak Local Government 
Council, in consultation with the people of Enjebi, 
shall provide for the creation of the Enjebi Commu-
nity Trust Fund and the employment of the manager 
of the Enewetak Fund established pursuant to the 
Section 177 Agreement as trustee and manager of the 
Enjebi Community Trust Fund, or, should the man-
ager of the Enewetak Fund not be acceptable to the 
people of Enjebi, another United States investment
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manager with substantial experience in the adminis-
tration of trusts and with funds under management 
in excess of 250 million dollars. 
(2) MONITOR CONDITIONS.—In the joint resolu-
tion of January 14, 1986 (Public Law 99–239) Con-
gress provided that upon the request of the Govern-
ment of the Marshall Islands, the United States shall 
monitor the radiation and other conditions on Enjebi 
and within one year of receiving such a request shall 
report to the Government of the Marshall Islands 
when the people of Enjebi may resettle Enjebi under 
circumstances where the radioactive contamination at 
Enjebi, including contamination derived from con-
sumption of locally grown food products, can be re-
duced or otherwise controlled to meet whole body Fed-
eral radiation protection standards for the general 
population, including mean annual dose and mean 
30-year cumulative dose standards. 
(3) RESETTLEMENT
OF
ENJEBI.—In the joint 
resolution of January 14, 1986 (Public Law 99–239) 
Congress provided that in the event that the United 
States determines that the people of Enjebi can with-
in 25 years of January 14, 1986, resettle Enjebi 
under the conditions set forth in paragraph (2) of this 
subsection, then upon such determination there shall
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be available to the people of Enjebi from the Fund 
such amounts as are necessary for the people of 
Enjebi to do the following, in accordance with a plan 
developed by the Enewetak Local Government Council 
and the people of Enjebi, and concurred with by the 
Government of the Marshall Islands to assure consist-
ency with the government’s overall economic develop-
ment plan: 
(A) Establish a community on Enjebi Is-
land for the use of the people of Enjebi. 
(B) Replant Enjebi with appropriate food-
bearing and other vegetation. 
(4) RESETTLEMENT OF OTHER LOCATION.—In 
the joint resolution of January 14, 1986 (Public Law 
99–239) Congress provided that in the event that the 
United States determines that within 25 years of 
January 14, 1986, the people of Enjebi cannot resettle 
Enjebi without exceeding the radiation standards set 
forth in paragraph (2) of this subsection, then the 
fund manager shall be directed by the trust instru-
ment to distribute the Fund to the people of Enjebi 
for their resettlement at some other location in ac-
cordance with a plan, developed by the Enewetak 
Local Government Council and the people of Enjebi 
and concurred with by the Government of the Mar-
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shall Islands, to assure consistency with the govern-
ment’s overall economic development plan. 
(5) INTEREST FROM FUND.—In the joint resolu-
tion of January 14, 1986 (Public Law 99–239) Con-
gress provided that prior to and during the distribu-
tion of the corpus of the Fund pursuant to para-
graphs (3) and (4) of this subsection, the people of 
Enjebi may, if they so request, receive the interest 
earned by the Fund on no less frequent a basis than 
quarterly. 
(6) DISCLAIMER OF LIABILITY.—In the joint res-
olution of January 14, 1986 (Public Law 99–239) 
Congress provided that neither under the laws of the 
Marshall Islands nor under the laws of the United 
States, shall the Government of the United States be 
liable for any loss or damage to person or property 
in respect to the resettlement of Enjebi by the people 
of Enjebi, pursuant to the provision of this subsection 
or otherwise. 
(7) STATUS OF PAYMENT.—The ex gratia pay-
ment provided for in this subsection was made. Noth-
ing in this subsection creates any rights or obligations 
beyond those provided for in the original enacted 
version of Public Law 99–239. 
(j) BIKINI ATOLL CLEANUP.—
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(1) DECLARATION OF POLICY.—In the joint reso-
lution of January 14, 1986 (Public Law 99–239), the 
Congress determined and declared that it is the policy 
of the United States, to be supported by the full faith 
and credit of the United States, that because the 
United States, through its nuclear testing and other 
activities, rendered Bikini Atoll unsafe for habitation 
by the people of Bikini, the United States will fulfill 
its responsibility for restoring Bikini Atoll to habit-
ability, as set forth in paragraph (2) and (3) of this 
subsection. 
(2) CLEANUP
FUNDS.—The joint resolution of 
January 14, 1986 (Public Law 99–239) authorized to 
be appropriated such sums as necessary to implement 
the settlement agreement of March 15, 1985, in The 
People of Bikini, et al. against United States of 
America, et al., Civ. No. 84–0425 (D. Ha.). 
(3) CONDITIONS OF FUNDING.—In the joint reso-
lution of January 14, 1986 (Public Law 99–239) the 
Congress provided that the funds referred to in para-
graph (2) were to be made available pursuant to Arti-
cle VI, Section 1 of the Compact Section 177 Agree-
ment upon completion of the events set forth in the 
settlement agreement referred to in paragraph (2) of 
this subsection. Nothing in this subsection creates any
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rights or obligations beyond those provided for in the 
original enacted version of Public Law 99–239. 
(k) AGREEMENT ON AUDITS.—The Comptroller Gen-
eral (and his duly authorized representatives) shall have the 
authorities necessary to carry out his responsibilities under 
section 232 of the U.S.-RMI Compact and the agreement 
referred to in section 462(b)(4) of the U.S.-RMI Compact, 
including the following authorities: 
(1) GENERAL AUTHORITY OF THE COMPTROLLER 
GENERAL TO AUDIT.—
(A) The Comptroller General of the United 
States (and his duly authorized representatives) 
shall have the authority to audit—
(i) all grants, program assistance, and 
other assistance provided to the Government 
of the Republic of the Marshall Islands 
under Articles I and II of Title Two of the 
U.S.-RMI Compact; and 
(ii) any other assistance provided by 
the Government of the United States to the 
Government of the Republic of the Marshall 
Islands. 
Such authority shall include authority for the 
Comptroller General to conduct or cause to be 
conducted any of the audits provided for in sec-
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tion 232 of the U.S.-RMI Compact. The author-
ity provided in this paragraph shall continue for 
at least three years after the last such grant has 
been made or assistance has been provided. 
(B) The Comptroller General (and his duly 
authorized representatives) shall also have au-
thority to review any audit conducted by or on 
behalf of the Government of the United States. In 
this connection, the Comptroller General shall 
have access to such personnel and to such 
records, documents, working papers, automated 
data and files, and other information relevant to 
such review. 
(2) 
COMPTROLLER
GENERAL
ACCESS
TO 
RECORDS.—
(A) In carrying out paragraph (1), the 
Comptroller General (and his duly authorized 
representatives) shall have such access to the per-
sonnel and (without cost) to records, documents, 
working papers, automated data and files, and 
other information relevant to such audits. The 
Comptroller General may duplicate any such 
records, documents, working papers, automated 
data and files, or other information relevant to 
such audits.
•HJ 63 RH 
(B) Such records, documents, working pa-
pers, automated data and files, and other infor-
mation regarding each such grant or other as-
sistance shall be maintained for at least three 
years after the date such grant or assistance was 
provided and in a manner that permits such 
grants, assistance and payments to be accounted 
for distinct from any other funds of the Govern-
ment of the Republic of the Marshall Islands. 
(3) STATUS
OF
COMPTROLLER
GENERAL
REP-
RESENTATIVES.—The Comptroller General and his 
duly authorized representatives shall be immune from 
civil and criminal process relating to words spoken or 
written and all acts performed by them in their offi-
cial capacity and falling within their functions, ex-
cept insofar as such immunity may be expressly 
waived by the Government of the United States. The 
Comptroller General and his duly authorized rep-
resentatives shall not be liable to arrest or detention 
pending trial, except in the case of a grave crime and 
pursuant to a decision by a competent judicial au-
thority, and such persons shall enjoy immunity from 
seizure of personal property, immigration restrictions, 
and 
laws 
relating 
to 
alien 
registration, 
fingerprinting, and the registration of foreign agents.
•HJ 63 RH 
Such persons shall enjoy the same taxation exemp-
tions as are set forth in Article 34 of the Vienna Con-
vention on Diplomatic Relations. The privileges, ex-
emptions and immunities accorded under this para-
graph are not for the personal benefit of the individ-
uals concerned but are to safeguard the independent 
exercise of their official functions. Without prejudice 
to those privileges, exemptions and immunities, it is 
the duty of all such persons to respect the laws and 
regulations of the Government of the Republic of the 
Marshall Islands. 
(4) AUDITS
DEFINED.—As used in this sub-
section, the term ‘‘audits’’ includes financial, pro-
gram, and management audits, including deter-
mining—
(A) whether the Government of the Republic 
of the Marshall Islands has met the requirements 
set forth in the U.S.-RMI Compact, or any re-
lated agreement entered into under the U.S.-RMI 
Compact, regarding the purposes for which such 
grants and other assistance are to be used; and 
(B) the propriety of the financial trans-
actions of the Government of the Republic of the 
Marshall Islands pursuant to such grants or as-
sistance.
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(5) COOPERATION
BY
THE
REPUBLIC
OF
THE 
MARSHALL ISLANDS.—The Government of the Repub-
lic of the Marshall Islands will cooperate fully with 
the Comptroller General of the United States in the 
conduct of such audits as the Comptroller General de-
termines necessary to enable the Comptroller General 
to fully discharge his responsibilities under this joint 
resolution. 
SEC. 104. INTERPRETATION OF AND UNITED STATES POL-
ICY REGARDING U.S.-FSM COMPACT AND U.S.-
RMI COMPACT. 
(a) HUMAN RIGHTS.—In approving the U.S.-FSM 
Compact and the U.S.-RMI Compact, the Congress notes 
the conclusion in the Statement of Intent of the Report of 
The Future Political Status Commission of the Congress of 
Micronesia in July, 1969, that ‘‘our recommendation of a 
free associated state is indissolubly linked to our desire for 
such a democratic, representative, constitutional govern-
ment’’ and notes that such desire and intention are re-
affirmed and embodied in the Constitutions of the Federated 
States of Micronesia and the Republic of the Marshall Is-
lands. The Congress also notes and specifically endorses the 
preamble to the U.S.-FSM Compact and the U.S.-RMI 
Compact, which affirms that the governments of the parties 
to the U.S.-FSM Compact and the U.S.-RMI Compact are
•HJ 63 RH 
founded upon respect for human rights and fundamental 
freedoms for all. The Secretary of State shall include in the 
annual reports on the status of internationally recognized 
human rights in foreign countries, which are submitted to 
the Congress pursuant to sections 116 and 502B of the For-
eign Assistance Act of 1961 (22 U.S.C 2151n, 2304), a full 
and complete report regarding the status of internationally 
recognized human rights in the Federated States of Micro-
nesia and the Republic of the Marshall Islands. 
(b) IMMIGRATION AND PASSPORT SECURITY.—
(1) NATURALIZED
CITIZENS.—The rights of a 
bona fide naturalized citizen of the Federated States 
of Micronesia or the Republic of the Marshall Islands 
to enter the United States, to lawfully engage therein 
in occupations, and to establish residence therein as 
a nonimmigrant, to the extent such rights are pro-
vided under section 141 of the U.S.-FSM Compact 
and U.S.-RMI Compact, shall not be deemed to ex-
tend to any such naturalized citizen with respect to 
whom circumstances associated with the acquisition 
of the status of a naturalized citizen are such as to 
allow a reasonable inference, on the part of appro-
priate officials of the United States and subject to 
United States procedural requirements, that such nat-
•HJ 63 RH 
uralized status was acquired primarily in order to 
obtain such rights. 
(2) PASSPORTS.—Up to $250,000 of the grant 
assistance provided to the Federated States of Micro-
nesia pursuant to section 211(a)(4) of the U.S.-FSM 
Compact, and up to $250,000 of the grant assistance 
provided to the Republic of the Marshall Islands pur-
suant to section 211(a)(4) of the U.S.-RMI Compact 
(or a greater amount of the section 211(a)(4) grant, 
if mutually agreed between the Government of the 
United States and the government of the Federated 
States of Micronesia or the government of the Repub-
lic of the Marshall Islands), shall be used for the pur-
pose of increasing the machine-readability and secu-
rity of passports issued by such jurisdictions. Such 
funds must be obligated by September 30, 2004 and 
in the amount and manner specified by the Secretary 
of State in consultation with the Secretary of Home-
land Security and, respectively, with the government 
of the Federated States of Micronesia and the govern-
ment of the Republic of the Marshall Islands. The 
United States Government is authorized to require 
that passports used for the purpose of seeking admis-
sion under section 141 of the U.S.-FSM Compact and
•HJ 63 RH 
the U.S.-RMI Compact contain the security enhance-
ments funded by such assistance. 
(3) INFORMATION-SHARING.—As a condition of 
assistance under the U.S.-FSM Compact and the 
U.S.-RMI Compact, the governments of the Federated 
States of Micronesia and the Republic of the Marshall 
Islands shall develop, prior to October 1, 2004, the ca-
pability to provide reliable and timely information as 
may reasonably be required by the Government of the 
United States in enforcing criminal and security-re-
lated grounds of inadmissibility and deportability 
under the Immigration and Nationality Act, as 
amended, and shall provide such information to the 
Government of the United States. 
(4) TRANSITION; CONSTRUCTION
OF
SECTIONS 
141(A)(3) AND 141(A)(4) OF THE U.S.-FSM COMPACT AND 
U.S.-RMI COMPACT.—The words ‘‘the effective date of 
this Compact, as amended’’ in sections 141(a)(3) and 
141(a)(4) of the U.S.-FSM Compact and the U.S.-
RMI Compact shall be construed to read, ‘‘on the day 
prior to the enactment by the United States Congress 
of the Amended Compact Act.’’. 
(c) NONALIENATION
OF LANDS.—The Congress en-
dorses and encourages the maintenance of the policies of the 
Government of the Federated States of Micronesia and the
•HJ 63 RH 
Government of the Republic of the Marshall Islands to regu-
late, in accordance with their Constitutions and laws, the 
alienation of permanent interests in real property so as to 
restrict the acquisition of such interests to persons of Fed-
erated States of Micronesia citizenship and the Republic of 
the Marshall Islands citizenship, respectively.
(d) NUCLEAR WASTE DISPOSAL.—In approving the 
U.S.-FSM Compact and the U.S.-RMI Compact, the Con-
gress understands that the Government of the Federated 
States of Micronesia and the Government of the Republic 
of the Marshall Islands will not permit any other govern-
ment or any nongovernmental party to conduct, in the Re-
public of the Marshall Islands or in the Federated States 
of Micronesia, any of the activities specified in subsection 
(a) of section 314 of the U.S.-FSM Compact and the U.S.-
RMI Compact. 
(e) EFFECT OF U.S.-FSM COMPACT AND U.S.-RMI 
COMPACT ON CERTAIN U.S. AREAS; RELATED AUTHORIZA-
TION AND CONTINUING APPROPRIATION.—
(1) DEFINITIONS.—For the purposes of this sub-
section—
(A) the term ‘‘affected jurisdiction’’ means 
American Samoa, Guam, the Commonwealth of 
the Northern Mariana Islands, or the State of 
Hawaii; and
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(B) the term ‘‘qualified nonimmigrant’’ 
means person admitted pursuant to section 141 
of the U.S.-RMI or U.S.-FSM Compact, or sec-
tion 141 of the Palau Compact who, as of a date 
referenced in the most recently published enu-
meration (i) is a resident of an affected jurisdic-
tion, and (ii) has had periods of residence in 
American Samoa, Guam, the Commonwealth of 
the Northern Mariana Islands, or a State of the 
United States with a duration, in the aggregate, 
of less than 10 years; and their children under 
the age of 18 who were admitted as non-
immigrants under the U.S.-RMI Compact, the 
U.S.-FSM Compact, or the Palau Compact. As 
used in this subsection, the term ‘‘resident’’ shall 
be a person who has a ‘‘residence,’’ as that term 
is defined in section 101(a)(33) of the Immigra-
tion and Nationality Act, as amended. 
(2) AUTHORIZATION
AND
CONTINUING
APPRO-
PRIATION.—There is hereby authorized and appro-
priated to the Secretary of the Interior, out of any 
money in the Treasury not otherwise appropriated, to 
remain available until expended, for each fiscal year 
from 2004 through 2023, $15,000,000 for grants to af-
fected jurisdictions to aid in defraying costs incurred
•HJ 63 RH 
by affected jurisdictions as a result of increased de-
mands placed on health, educational, social, or public 
safety services or infrastructure related to such serv-
ices due to the residence in affected jurisdictions of 
qualified nonimmigrants from the Republic of the 
Marshall Islands, the Federated States of Micronesia, 
or the Republic of Palau. The grants shall be—
(A) awarded and administered by the De-
partment of the Interior, Office of Insular Af-
fairs, or any successor thereto, in accordance 
with regulations, policies and procedures appli-
cable to grants so awarded and administered, 
and 
(B) used only for health, educational, social, 
or public safety services, or infrastructure related 
to such services, specifically affected by qualified 
nonimmigrants. 
(3) ENUMERATION.—The Secretary of the Inte-
rior shall conduct periodic enumerations of qualified 
nonimmigrants in each affected jurisdiction. The enu-
merations—
(A) shall be conducted at such intervals as 
the Secretary of the Interior shall determine, but 
no less frequently than every five years, begin-
ning in fiscal year 2003;
•HJ 63 RH 
(B) shall be supervised by the United States 
Bureau of the Census or such other organization 
as the Secretary of the Interior may select; and 
(C) after fiscal year 2003, shall be funded 
by the Secretary of the Interior by deducting 
such sums as are necessary from funds appro-
priated pursuant to the authorization contained 
in paragraph (2) of this subsection. 
(4) ALLOCATION.—The Secretary of the Interior 
shall allocate to the government of each affected juris-
diction, on the basis of the results of the most recent 
enumeration, grants in an aggregate amount equal to 
the total amount of funds appropriated under para-
graph (2) of this subsection, as reduced by any deduc-
tions authorized by subparagraph (C) of paragraph 
(3) of this subsection, multiplied by a ratio derived 
by dividing the number of qualified nonimmigrants 
in such affected jurisdiction by the total number of 
qualified nonimmigrants in all affected jurisdictions. 
(f) FOREIGN LOANS.—The Congress hereby reaffirms 
the United States position that the United States Govern-
ment is not responsible for foreign loans or debt obtained 
by the Governments of the Federated States of Micronesia 
and the Republic of the Marshall Islands.
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SEC. 105. SUPPLEMENTAL PROVISIONS. 
(a) DOMESTIC PROGRAM REQUIREMENTS.—Except as 
may otherwise be provided in this joint resolution, all 
United States Federal programs and services extended to 
or operated in the Federated States of Micronesia or the 
Republic of the Marshall Islands are and shall remain sub-
ject to all applicable criteria, standards, reporting require-
ments, auditing procedures, and other rules and regulations 
applicable to such programs when operating in the United 
States (including its territories and commonwealths). 
(b) RELATIONS WITH THE FEDERATED STATES OF 
MICRONESIA AND THE REPUBLIC OF THE MARSHALL IS-
LANDS.—
(1) Appropriations made pursuant to Article I 
of Title Two and subsection (a)(2) of section 221 of 
Article II of Title Two of the U.S.-FSM Compact and 
the U.S.-RMI Compact shall be made to the Secretary 
of the Interior, who shall have the authority necessary 
to fulfill his responsibilities for monitoring and man-
aging the funds so appropriated consistent with the 
U.S.-FSM Compact and the U.S.-RMI Compact, in-
cluding the agreements referred to in section 462(b)(4) 
of the U.S.-FSM Compact and U.S.-RMI Compact 
(relating to Fiscal Procedures) and the agreements re-
ferred to in section 462(b)(5) of the U.S.-FSM Com-
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pact and the U.S.-RMI Compact (regarding the Trust 
Fund).
(2) Appropriations made pursuant to subsections 
(a)(1) and (a)(3) through (6) of section 221 of Article 
II of Title Two of the U.S.-FSM Compact and sub-
section (a)(1) and (a)(3) through (5) of the U.S.-RMI 
Compact shall be made directly to the agencies named 
in those subsections. 
(3) Appropriations for services and programs re-
ferred to in subsection (b) of section 221 of Article II 
of Title Two of the U.S.-FSM Compact or U.S.-RMI 
Compact and appropriations for services and pro-
grams referred to in sections 105(f) and 108(a) of this 
joint resolution shall be made to the relevant agencies 
in accordance with the terms of the appropriations 
for such services and programs. 
(4) Federal agencies providing programs and 
services to the Federated States of Micronesia and the 
Republic of the Marshall Islands shall coordinate with 
the Secretaries of the Interior and State regarding 
provision of such programs and services. The Secre-
taries of the Interior and State shall consult with the 
Secretary of the Treasury regarding overall economic 
conditions in the Federated States of Micronesia and 
the Republic of the Marshall Islands.
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(5) United States Government employees in ei-
ther the Federated States of Micronesia or the Repub-
lic of the Marshall Islands are subject to the authority 
of the United States Chief of Mission, including as 
elaborated in section 207 of the Foreign Service Act 
and the President’s Letter of Instruction to the United 
States Chief of Mission and any order or directive of 
the President in effect from time to time. 
(6) The President is hereby authorized to ap-
point an Interagency Group on Freely Associated 
States’ Affairs to provide policy guidance and rec-
ommendations on implementation of the U.S.-FSM 
Compact and the U.S.-RMI Compact to Federal de-
partments and agencies. 
(7) The three United States appointees (United 
States chair plus two members) to the Joint Eco-
nomic Management Committee provided for in section 
213 of the U.S.-FSM Compact and Article III of the 
U.S.-FSM Fiscal Procedures Agreement referred to in 
section 462(b)(4) of the U.S.-FSM Compact shall be 
United States Government officers or employees. The 
three United States appointees (United States chair 
plus two members) to the Joint Economic Manage-
ment and Financial Accountability Committee pro-
vided for in section 214 of the U.S.-RMI Compact
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and Article III of the U.S.-RMI Fiscal Procedures 
Agreement referred to in section 462(b)(4) of the U.S.-
RMI Compact shall be United States Government of-
ficers or employees. 
(8) The United States voting members (United 
States chair plus two or more members) of the Trust 
Fund Committee appointed by the Government of the 
United States pursuant to Article 7 of the Trust 
Fund Agreement implementing section 215 of the 
U.S.-FSM Compact and referred to in section 
462(b)(5) of the U.S.-FSM Compact and any alter-
nates designated by the Government of the United 
States shall be United States Government officers or 
employees. The United States voting members (United 
States chair plus two or more members) of the Trust 
Fund Committee appointed by the Government of the 
United States pursuant to Article 7 of the Trust 
Fund Agreement implementing section 216 of the 
U.S.-RMI Compact and referred to in section 
462(b)(5) of the U.S.-RMI Compact and any alter-
nates designated by the Government of the United 
States shall be United States Government officers or 
employees. 
(9) The Trust Fund Committee provided for in 
Article 7 of the U.S.-FSM Trust Fund Agreement im-
•HJ 63 RH 
plementing section 215 of the U.S.-FSM Compact 
shall be a non-profit corporation incorporated under 
the laws of the District of Columbia. To the extent 
that any law, rule, regulation or ordinance of the 
District of Columbia, or of any State or political sub-
division thereof in which the Trust Fund Committee 
is incorporated or doing business, impedes or other-
wise interferes with the performance of the functions 
of the Trust Fund Committee pursuant to this joint 
resolution, such law, rule, regulation, or ordinance 
shall be deemed to be preempted by this joint resolu-
tion. The Trust Fund Committee provided for in Ar-
ticle 7 of the U.S.-RMI Trust Fund Agreement imple-
menting section 216 of the U.S.-RMI Compact shall 
be a non-profit corporation incorporated under the 
laws of the District of Columbia. To the extent that 
any law, rule, regulation or ordinance of the District 
of Columbia, or of any State or political subdivision 
thereof in which the Trust Fund Committee is incor-
porated or doing business, impedes or otherwise inter-
feres with the performance of the functions of the 
Trust Fund Committee pursuant to this joint resolu-
tion, such law, rule, regulation, or ordinance shall be 
deemed to be preempted by this joint resolution.
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(c) CONTINUING
TRUST
TERRITORY
AUTHORIZA-
TION.—The authorization provided by the Act of June 30, 
1954, as amended (68 Stat. 330) shall remain available 
after the effective date of the Compact with respect to the 
Federated States of Micronesia and the Republic of the Mar-
shall Islands for the following purposes: 
(1) Prior to October 1, 1986, for any purpose 
authorized by the Compact or the joint resolution of 
January 14, 1986 (Public Law 99–239). 
(2) Transition purposes, including but not lim-
ited to, completion of projects and fulfillment of com-
mitments or obligations; termination of the Trust 
Territory Government and termination of the High 
Court; health and education as a result of exceptional 
circumstances; ex gratia contributions for the popu-
lations of Bikini, Enewetak, Rongelap, and Utrik; 
and technical assistance and training in financial 
management, program administration, and mainte-
nance of infrastructure, except that, for purposes of 
an orderly reduction of United States programs and 
services in the Federated States of Micronesia, the 
Marshall Islands, and Palau, United States programs 
or services not specifically authorized by the Compact 
of Free Association or by other provisions of law may 
continue but, unless reimbursed by the respective free-
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ly associated state, not in excess of the following 
amounts: 
(A) For fiscal year 1987, an amount not to 
exceed 75 per centum of the total amount appro-
priated for such programs for fiscal year 1986. 
(B) For fiscal year 1988, an amount not to 
exceed 50 per centum of the total amount appro-
priated for such programs for fiscal year 1986. 
(C) For fiscal year 1989, an amount not to 
exceed 25 per centum of the total amount appro-
priated for such programs for fiscal year 1986. 
(d) SURVIVABILITY.—In furtherance of the provisions 
of Title Four, Article V, sections 452 and 453 of the U.S.-
FSM Compact and the U.S.-RMI Compact, any provisions 
of the U.S.-FSM Compact or the U.S.-RMI Compact which 
remain effective after the termination of the U.S.-FSM 
Compact or U.S.-RMI Compact by the act of any party 
thereto and which are affected in any manner by provisions 
of this title shall remain subject to such provisions.
(e) NONCOMPLIANCE SANCTIONS; ACTIONS INCOMPAT-
IBLE WITH UNITED STATES AUTHORITY.—The Congress 
expresses its understanding that the Governments of the 
Federated States of Micronesia and the Republic of the Mar-
shall Islands will not act in a manner incompatible with 
the authority and responsibility of the United States for
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security and defense matters in or related to the Federated 
States of Micronesia or the Republic of the Marshall Islands 
pursuant to the U.S.-FSM Compact or the U.S.-RMI Com-
pact, including the agreements referred to in sections 
462(a)(2) of the U.S.-FSM Compact and 462(a)(5) of the 
U.S.-RMI Compact. The Congress further expresses its in-
tention that any such act on the part of either such Govern-
ment will be viewed by the United States as a material 
breach of the U.S.-FSM Compact or U.S.-RMI Compact. 
The Government of the United States reserves the right in 
the event of such a material breach of the U.S.-FSM Com-
pact by the Government of the Federated States of Micro-
nesia or the U.S.-RMI Compact by the Government of the 
Republic of the Marshall Islands to take action, including 
(but not limited to) the suspension in whole or in part of 
the obligations of the Government of the United States to 
that Government. 
(f) CONTINUING PROGRAMS AND LAWS.—
(1) FEDERATED STATES OF MICRONESIA AND RE-
PUBLIC OF THE MARSHALL ISLANDS.—In addition to 
the programs and services set forth in section 221 of 
the Compact, and pursuant to section 222 of the Com-
pact, the programs and services of the following agen-
cies shall be made available to the Federated States
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of Micronesia and to the Republic of the Marshall Is-
lands: 
(A) The Legal Services Corporation. 
(B) The Public Health Service. 
(C) The Rural Housing Service (formerly, 
the Farmers Home Administration) in the Mar-
shall Islands and each of the four States of the 
Federated States of Micronesia: Provided, That 
in lieu of continuation of the program in the 
Federated States of Micronesia, the President 
may agree to transfer to the Government of the 
Federated States of Micronesia without cost, the 
portfolio of the Rural Housing Service applicable 
to the Federated States of Micronesia and pro-
vide such technical assistance in management of 
the portfolio as may be requested by the Fed-
erated States of Micronesia). 
(2) TORT CLAIMS.—The provisions of section 178 
of the U.S.-FSM Compact and the U.S.-RMI Compact 
regarding settlement and payment of tort claims shall 
apply to employees of any Federal agency of the Gov-
ernment of the United States (and to any other per-
son employed on behalf of any Federal agency of the 
Government of the United States on the basis of a 
contractual, cooperative, or similar agreement) which
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provides any service or carries out any other function 
pursuant to or in furtherance of any provisions of the 
U.S.-FSM Compact or the U.S.-RMI Compact or this 
joint resolution, except for provisions of Title Three of 
the Compact and of the subsidiary agreements related 
to such Title, in such area to which such Agreement 
formerly applied. 
(3) PCB CLEANUP.—The programs and services 
of the Environmental Protection Agency regarding 
PCBs shall, to the extent applicable, as appropriate, 
and in accordance with applicable law, be construed 
to be made available to such islands. 
(g) COLLEGE OF MICRONESIA.—Until otherwise pro-
vided by Act of Congress, or until termination of the U.S.-
FSM Compact and the U.S.-RMI Compact, the College of 
Micronesia shall retain its status as a land-grant institu-
tion and its eligibility for all benefits and programs avail-
able to such land-grant institutions. 
(h) TRUST TERRITORY DEBTS
TO U.S. FEDERAL 
AGENCIES.—Neither the Government of the Federated 
States of Micronesia nor the Government of the Marshall 
Islands shall be required to pay to any department, agency, 
independent agency, office, or instrumentality of the United 
States any amounts owed to such department, agency, inde-
pendent agency, office, or instrumentality by the Govern-
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ment of the Trust Territory of the Pacific Islands as of the 
effective date of the Compact. There is authorized to be ap-
propriated such sums as may be necessary to carry out the 
purposes of this subsection. 
(i) USE OF DOD MEDICAL FACILITIES.—The Sec-
retary of Defense is hereby authorized to cooperate with gov-
ernment authorities responsible for provision of medical 
services in the Federated States of Micronesia and the Re-
public of the Marshall Islands in order to permit use of 
medical facilities of the Department of Defense for persons 
properly referred by such authorities in accordance with 
Article XVII of the agreements referred to in section 
462(b)(7) of the U.S.-FSM Compact and the U.S.-RMI 
Compact. The Secretary of Health and Human Services is 
hereby authorized and directed to continue to make the serv-
ices of the National Health Service Corps available to the 
residents of the Federated States of Micronesia and the Re-
public of the Marshall Islands to the same extent and for 
so long as such services are authorized to be provided to 
persons residing in any other areas within or outside the 
United States. 
(j) TECHNICAL
ASSISTANCE.—Technical assistance 
may be provided pursuant to section 224 of the U.S.-FSM 
Compact or the U.S.-RMI Compact by Federal agencies and 
institutions of the Government of the United States to the
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extent such assistance may be provided to States, territories, 
or units of local government. Such assistance by the Forest 
Service, the Natural Resources Conservation Service, the 
USDA Resource Conservation and Development Program, 
the Fish and Wildlife Service, the National Marine Fish-
eries Service, the United States Coast Guard, and the Advi-
sory Council on Historic Preservation, the Department of 
the Interior, and other agencies providing assistance under 
the National Historic Preservation Act (80 Stat. 915; 16 
U.S.C. 470–470t), shall be on a nonreimbursable basis. 
During the period the U.S.-FSM Compact and the U.S.-
RMI Compact are in effect, the grant programs under the 
National Historic Preservation Act shall continue to apply 
to the Federated States of Micronesia and the Republic of 
the Marshall Islands in the same manner and to the same 
extent as prior to the approval of the Compact. Any funds 
provided pursuant to sections 102(a), 103(a), 103(b), 
103(f), 103(g), 103(h), 103(j), 105(c), 105(g), 105(h), 
105(i), 105(j), 105(k), 105(l), and 105(m) of this joint reso-
lution shall be in addition to and not charged against any 
amounts to be paid to either the Federated States of Micro-
nesia or the Republic of the Marshall Islands pursuant to 
the U.S.-FSM Compact, the U.S.-RMI Compact, or their 
related subsidiary agreements.
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(k) PRIOR SERVICE BENEFITS PROGRAM.—Notwith-
standing any other provision of law, persons who on Janu-
ary 1, 1985, were eligible to receive payment under the 
Prior Service Benefits Program established within the So-
cial Security System of the Trust Territory of the Pacific 
Islands because of their services performed for the United 
States Navy or the Government of the Trust Territory of 
the Pacific Islands prior to July 1, 1968, shall continue 
to receive such payments on and after the effective date of 
the Compact. 
(l) INDEFINITE LAND USE PAYMENTS.—There are au-
thorized to be appropriated such sums as may be necessary 
to complete repayment by the United States of any debts 
owed for the use of various lands in the Federated States 
of Micronesia and the Marshall Islands prior to January 
1, 1985. 
(m) COMMUNICABLE DISEASE CONTROL PROGRAM.—
There are authorized to be appropriated for grants to the 
Government of the Federated States of Micronesia such 
sums as may be necessary for purposes of establishing or 
continuing programs for the control and prevention of com-
municable diseases, including (but not limited to) cholera 
and Hansen’s Disease. The Secretary of the Interior shall 
assist the Government of the Federated States of Micronesia
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and the Government of the Republic of the Marshall Islands 
in designing and implementing such a program. 
(n) USER FEES.—Any person in the Federated States 
of Micronesia or the Republic of the Marshall Islands shall 
be liable for user fees, if any, for services provided in the 
Federated States of Micronesia or the Republic of the Mar-
shall Islands by the Government of the United States to the 
same extent as any person in the United States would be 
liable for fees, if any, for such services in the United States. 
(o) TREATMENT OF JUDGMENTS OF COURTS OF THE 
FEDERATED STATES OF MICRONESIA, THE REPUBLIC OF 
THE
MARSHALL
ISLANDS, 
AND
THE
REPUBLIC
OF 
PALAU.—No judgment, whenever issued, of a court of the 
Federated States of Micronesia, the Republic of the Marshall 
Islands, or the Republic of Palau, against the United 
States, its departments and agencies, or officials of the 
United States or any other individuals acting on behalf of 
the United States within the scope of their official duty, 
shall be honored by the United States, or be subject to rec-
ognition or enforcement in a court in the United States, 
unless the judgment is consistent with the interpretation by 
the United States of international agreements relevant to 
the judgment. In determining the consistency of a judgment 
with an international agreement, due regard shall be given 
to assurances made by the Executive Branch to the Congress
•HJ 63 RH 
of the United States regarding the proper interpretation of 
the international agreement. 
SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE. 
(a) ASSISTANCE TO U.S. FIRMS.—In order to assist 
the Governments of the Federated States of Micronesia and 
of the Republic of the Marshall Islands through private sec-
tor firms which may be awarded contracts for construction 
or major repair of capital infrastructure within the Fed-
erated States of Micronesia or the Republic of the Marshall 
Islands, the United States shall consult with the Govern-
ments of the Federated States of Micronesia and the Repub-
lic of the Marshall Islands with respect to any such con-
tracts, and the United States shall enter into agreements 
with such firms whereby such firms will, consistent with 
applicable requirements of such Governments—
(1) to the maximum extent possible, employ citi-
zens of the Federated States of Micronesia and the Re-
public of the Marshall Islands; 
(2) to the extent that necessary skills are not pos-
sessed by citizens of the Federated States of Micro-
nesia and the Republic of the Marshall Islands, pro-
vide on the job training, with particular emphasis on 
the development of skills relating to operation of ma-
chinery and routine and preventative maintenance of 
machinery and other facilities; and
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(3) provide specific training or other assistance 
in order to enable the Government to engage in long-
term maintenance of infrastructure. 
Assistance by such firms pursuant to this section may not 
exceed 20 percent of the amount of the contract and shall 
be made available only to such firms which meet the defini-
tion of United States firm under the nationality rule for 
suppliers of services of the Agency for International Devel-
opment (hereafter in this section referred to as ‘‘United 
States firms’’). There are authorized to be appropriated 
such sums as may be necessary for the purposes of this sub-
section. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as may be nec-
essary to cover any additional costs incurred by the Govern-
ment of the Federated States of Micronesia or the Republic 
of the Marshall Islands if such Governments, pursuant to 
an agreement entered into with the United States, apply 
a preference on the award of contracts to United States 
firms, provided that the amount of such preference does not 
exceed 10 percent of the amount of the lowest qualified bid 
from a non-United States firm for such contract. 
SEC. 107. PROHIBITION. 
The provisions of chapter 11 of title 18, United States 
Code, shall apply in full to any individual who has served
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as the United States negotiator of amendments to the Com-
pact or its subsidiary agreements or of related agreements 
or who is or was an officer or employee of the Office in 
the Department of State responsible for negotiating amend-
ments to the Compact or its subsidiary agreements or who 
is or was assigned or detailed to that Office or who served 
on the interagency group coordinating United States policy 
on the Compact negotiations.
SEC. 108. COMPENSATORY ADJUSTMENTS. 
(a) ADDITIONAL PROGRAMS AND SERVICES.—In addi-
tion to the programs and services set forth in Section 221 
of the U.S.-FSM Compact and the U.S.-RMI Compact, and 
pursuant to Section 222 of the U.S.-FSM Compact and the 
U.S.-RMI Compact, the services and programs of the fol-
lowing United States agencies are authorized to be made 
available to the Federated States of Micronesia and the Re-
public of the Marshall Islands: the Small Business Adminis-
tration, Economic Development Administration, and the 
Rural Utilities Services (formerly Rural Electrification Ad-
ministration); and the programs and services of the Depart-
ment of Labor under the Workforce Investment Act of 1998; 
and the programs and services of the Department of Com-
merce relating to tourism and to marine resource develop-
ment. 
(b) FURTHER AMOUNTS.—
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(1) The joint resolution of January 14, 1986 
(Public Law 99–239) provided that the governments 
of the Federated States of Micronesia and the Mar-
shall Islands may submit to Congress reports con-
cerning the overall financial and economic impacts 
on such areas resulting from the effect of Title IV of 
that joint resolution upon Title Two of the Compact. 
There were authorized to be appropriated for fiscal 
years beginning after September 30, 1990, such 
amounts as necessary, but not to exceed $40 million 
for the Federated States of Micronesia and $20 mil-
lion for the Marshall Islands, as provided in appro-
priation acts, to further compensate the governments 
of such islands (in addition to the compensation pro-
vided in subsections (a) and (b) of section 111 of the 
joint resolution of January 14, 1986 (Public Law 99–
239) for adverse impacts, if any, on the finances and 
economies of such areas resulting from the effect of 
Title IV of that joint resolution upon Title Two of the 
Compact. The joint resolution of January 14, 1986 
(Public Law 99–239) further provided that at the end 
of the initial fifteen-year term of the Compact, should 
any portion of the total amount of funds authorized 
in subsection 111 of that resolution not have been ap-
propriated, such amount not yet appropriated may be
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appropriated, without regard to divisions between 
amounts authorized in subsection 111 for the Fed-
erated States of Micronesia and for the Marshall Is-
lands, based on either or both such government’s 
showing of such adverse impact, if any, as provided 
in that subsection. 
(2) The governments of the Federated States of 
Micronesia and the Republic of the Marshall Islands 
may each submit no more than one report or request 
for further compensation under section 111 of the 
joint resolution of January 14, 1986 (Public Law 99–
239) and any such report or request must be sub-
mitted by September 30, 2004. Only adverse economic 
effect occurring during the initial fifteen-year term of 
the Compact may be considered for compensation 
under section 111 of the joint resolution of January 
14, 1986 (Public Law 99–239). 
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIA-
TION. 
(a) There are authorized and appropriated to the De-
partment of the Interior, out of any money in the Treasury 
not otherwise appropriated, to remain available until ex-
pended, such sums as are necessary to carry out the pur-
poses of sections 211, 212(b), 215, and 217 of the U.S.-FSM-
•HJ 63 RH 
Compact and sections 211, 212, 213(b), 216, and 218 of 
the U.S.-RMI Compact, in this and subsequent years. 
(b) There are authorized to be appropriated to the De-
partments, agencies, and instrumentalities named in para-
graphs (1) and (3) through (6) of section 221(a) of the U.S.-
FSM Compact and paragraphs (1) and (3) through (5) of 
section 221(a) of the U.S.-RMI Compact, such sums as are 
necessary to carry out the purposes of sections 221(a) of 
the U.S.-FSM Compact and the U.S.-RMI Compact, to re-
main available until expended. 
SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED 
STATES OF MICRONESIA, THE REPUBLIC OF 
THE MARSHALL ISLANDS, AND THE REPUBLIC 
OF PALAU EMPLOYED BY THE GOVERNMENT 
OF THE UNITED STATES IN THE CONTI-
NENTAL UNITED STATES. 
Section 605 of Public Law 107–67 (the Treasury and 
General Government Appropriations Act, 2002; 5 U.S.C. 
3101 note) is amended by striking ‘‘or the Republic of the 
Philippines,’’ in the last sentence and inserting the fol-
lowing: ‘‘the Republic of the Philippines, the Federated 
States of Micronesia, the Republic of the Marshall Islands, 
or the Republic of Palau,’’.
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TITLE II—COMPACTS OF FREE 
ASSOCIATION WITH THE FED-
ERATED STATES OF MICRO-
NESIA AND THE REPUBLIC OF 
THE MARSHALL ISLANDS 
SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED 
BETWEEN THE GOVERNMENT OF THE UNITED 
STATES OF AMERICA AND THE GOVERNMENT 
OF THE FEDERATED STATES OF MICRONESIA 
AND BETWEEN THE GOVERNMENT OF THE 
UNITED STATES OF AMERICA AND THE GOV-
ERNMENT OF THE REPUBLIC OF THE MAR-
SHALL ISLANDS. 
(a) COMPACT OF FREE ASSOCIATION, AS AMENDED, 
BETWEEN THE GOVERNMENT OF THE UNITED STATES OF 
AMERICA
AND
THE GOVERNMENT
OF
THE FEDERATED 
STATES OF MICRONESIA.—
PREAMBLE 
THE GOVERNMENT OF THE UNITED STATES OF 
AMERICA AND THE GOVERNMENT OF THE 
FEDERATED STATES OF MICRONESIA 
Affirming that their Governments and their relation-
ship as Governments are founded upon respect for human 
rights and fundamental freedoms for all, and that the people
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of the Federated States of Micronesia have the right to enjoy 
self-government; and 
Affirming the common interests of the United States 
of America and the Federated States of Micronesia in cre-
ating and maintaining their close and mutually beneficial 
relationship through the free and voluntary association of 
their respective Governments; and 
Affirming the interest of the Government of the United 
States in promoting the economic advancement and budg-
etary self-reliance of the Federated States of Micronesia; 
and 
Recognizing that their relationship until the entry into 
force on November 3, 1986 of the Compact was based upon 
the International Trusteeship System of the United Nations 
Charter, and in particular Article 76 of the Charter; and 
that pursuant to Article 76 of the Charter, the people of 
the Federated States of Micronesia have progressively devel-
oped their institutions of self-government, and that in the 
exercise of their sovereign right to self-determination they, 
through their freely-expressed wishes, have adopted a Con-
stitution appropriate to their particular circumstances; and 
Recognizing that the Compact reflected their common 
desire to terminate the Trusteeship and establish a govern-
ment-to-government relationship which was in accordance 
with the new political status based on the freely expressed
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wishes of the people of the Federated States of Micronesia 
and appropriate to their particular circumstances; and 
Recognizing that the people of the Federated States of 
Micronesia have and retain their sovereignty and their sov-
ereign right to self-determination and the inherent right to 
adopt and amend their own Constitution and form of gov-
ernment and that the approval of the entry of the Govern-
ment of the Federated States of Micronesia into the Com-
pact by the people of the Federated States of Micronesia 
constituted an exercise of their sovereign right to self-deter-
mination; and 
Recognizing the common desire of the people of the 
United States and the people of the Federated States of Mi-
cronesia to maintain their close government-to-government 
relationship, the United States and the Federated States of 
Micronesia: 
NOW, THEREFORE, MUTUALLY AGREE to con-
tinue and strengthen their relationship of free association 
by amending the Compact, which continues to provide a 
full measure of self-government for the people of the Fed-
erated States of Micronesia; and 
FURTHER AGREE that the relationship of free asso-
ciation derives from and is as set forth in this Compact, 
as amended, by the Governments of the United States and 
the Federated States of Micronesia; and that, during such
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relationship of free association, the respective rights and re-
sponsibilities of the Government of the United States and 
the Government of the Federated States of Micronesia in 
regard to this relationship of free association derive from 
and are as set forth in this Compact, as amended. 
TITLE ONE 
GOVERNMENTAL RELATIONS 
Article I 
Self-Government 
Section 111
The people of the Federated States of Micronesia, act-
ing through the Government established under their Con-
stitution, are self-governing. 
Article II 
Foreign Affairs 
Section 121
(a) The Government of the Federated States of Micro-
nesia has the capacity to conduct foreign affairs and shall 
do so in its own name and right, except as otherwise pro-
vided in this Compact, as amended. 
(b) The foreign affairs capacity of the Government of 
the Federated States of Micronesia includes: 
(1) the conduct of foreign affairs relating to law 
of the sea and marine resources matters, including the 
harvesting, conservation, exploration or exploitation
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of living and non-living resources from the sea, seabed 
or subsoil to the full extent recognized under inter-
national law; 
(2) the conduct of its commercial, diplomatic, 
consular, economic, trade, banking, postal, civil avia-
tion, communications, and cultural relations, includ-
ing negotiations for the receipt of developmental loans 
and grants and the conclusion of arrangements with 
other governments and international and intergovern-
mental organizations, including any matters specially 
benefiting its individual citizens. 
(c) The Government of the United States recognizes 
that the Government of the Federated States of Micronesia 
has the capacity to enter into, in its own name and right, 
treaties and other international agreements with govern-
ments and regional and international organizations. 
(d) In the conduct of its foreign affairs, the Govern-
ment of the Federated States of Micronesia confirms that 
it shall act in accordance with principles of international 
law and shall settle its international disputes by peaceful 
means. 
Section 122
The Government of the United States shall support ap-
plications by the Government of the Federated States of Mi-
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cronesia for membership or other participation in regional 
or international organizations as may be mutually agreed. 
Section 123
(a) In recognition of the authority and responsibility 
of the Government of the United States under Title Three, 
the Government of the Federated States of Micronesia shall 
consult, in the conduct of its foreign affairs, with the Gov-
ernment of the United States. 
(b) In recognition of the foreign affairs capacity of the 
Government of the Federated States of Micronesia, the Gov-
ernment of the United States, in the conduct of its foreign 
affairs, shall consult with the Government of the Federated 
States of Micronesia on matters that the Government of the 
United States regards as relating to or affecting the Govern-
ment of the Federated States of Micronesia. 
Section 124
The Government of the United States may assist or 
act on behalf of the Government of the Federated States of 
Micronesia in the area of foreign affairs as may be re-
quested and mutually agreed from time to time.The Govern-
ment of the United States shall not be responsible to third 
parties for the actions of the Government of the Federated 
States of Micronesia undertaken with the assistance or 
through the agency of the Government of the United States 
pursuant to this section unless expressly agreed.
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Section 125
The Government of the United States shall not be re-
sponsible for nor obligated by any actions taken by the Gov-
ernment of the Federated States of Micronesia in the area 
of foreign affairs, except as may from time to time be ex-
pressly agreed. 
Section 126
At the request of the Government of the Federated 
States of Micronesia and subject to the consent of the receiv-
ing state, the Government of the United States shall extend 
consular assistance on the same basis as for citizens of the 
United States to citizens of the Federated States of Micro-
nesia for travel outside the Federated States of Micronesia, 
the United States and its territories and possessions. 
Section 127
Except as otherwise provided in this Compact, as 
amended, or its related agreements, all obligations, respon-
sibilities, rights and benefits of the Government of the 
United States as Administering Authority which resulted 
from the application pursuant to the Trusteeship Agreement 
of any treaty or other international agreement to the Trust 
Territory of the Pacific Islands on November 2, 1986, are, 
as of that date, no longer assumed and enjoyed by the Gov-
ernment of the United States.
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Article III 
Communications 
Section 131
(a) The Government of the Federated States of Micro-
nesia has full authority and responsibility to regulate its 
domestic and foreign communications, and the Government 
of the United States shall provide communications assist-
ance as mutually agreed. 
(b) On May 24, 1993, the Government of the Federated 
States of Micronesia elected to undertake all functions pre-
viously performed by the Government of the United States 
with respect to domestic and foreign communications, ex-
cept for those functions set forth in a separate agreement 
entered into pursuant to this section of the Compact, as 
amended. 
Section 132
The Government of the Federated States of Micronesia 
shall permit the Government of the United States to operate 
telecommunications services in the Federated States of Mi-
cronesia to the extent necessary to fulfill the obligations of 
the Government of the United States under this Compact, 
as amended, in accordance with the terms of separate agree-
ments entered into pursuant to this section of the Compact, 
as amended.
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Article IV 
Immigration 
Section 141
(a) In furtherance of the special and unique relation-
ship that exists between the United States and the Federated 
States of Micronesia, under the Compact, as amended, any 
person in the following categories may be admitted to law-
fully engage in occupations, and establish residence as a 
nonimmigrant in the United States and its territories and 
possessions (the ‘‘United States’’) without regard to para-
graph (5) or (7)(B)(i)(II) of section 212(a) of the Immigra-
tion and Nationality Act, as amended, 8 U.S.C. 1182(a)(5) 
or (7)(B)(i)(II): 
(1) a person who, on November 2, 1986, was a 
citizen of the Trust Territory of the Pacific Islands, 
as defined in Title 53 of the Trust Territory Code in 
force on January 1, 1979, and has become and re-
mains a citizen of the Federated States of Micronesia; 
(2) a person who acquires the citizenship of the 
Federated States of Micronesia at birth, on or after 
the effective date of the Constitution of the Federated 
States of Micronesia; 
(3) an immediate relative of a person referred to 
in paragraphs (1) or (2) of this section, provided that 
such immediate relative is a naturalized citizen of the
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Federated States of Micronesia who has been an ac-
tual resident there for not less than five years after 
attaining such naturalization and who holds a certifi-
cate of actual residence, and further provided, that, in 
the case of a spouse, such spouse has been married to 
the person referred to in paragraph (1) or (2) of this 
section for at least five years, and further provided, 
that the Government of the United States is satisfied 
that such naturalized citizen meets the requirement of 
subsection (b) of section 104 of Public Law 99–239 as 
it was in effect on the day prior to the effective date 
of this Compact, as amended; 
(4) a naturalized citizen of the Federated States 
of Micronesia who was an actual resident there for 
not less than five years after attaining such natu-
ralization and who satisfied these requirements as of 
April 30, 2003, who continues to be an actual resi-
dent and holds a certificate of actual residence, and 
whose name is included in a list furnished by the 
Government of the Federated States of Micronesia to 
the Government of the United States no later than the 
effective date of the Compact, as amended, in form 
and content acceptable to the Government of the 
United States, provided, that the Government of the 
United States is satisfied that such naturalized cit-
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izen meets the requirement of subsection (b) of section 
104 of Public Law 99–239 as it was in effect on the 
day prior to the effective date of this Compact, as 
amended; or 
(5) an immediate relative of a citizen of the Fed-
erated States of Micronesia, regardless of the imme-
diate relative’s country of citizenship or period of res-
idence in the Federated States of Micronesia, if the 
citizen of the Federated States of Micronesia is serv-
ing on active duty in any branch of the United States 
Armed Forces, or in the active reserves. 
(b) Notwithstanding subsection (a) of this section, a 
person who is coming to the United States pursuant to an 
adoption outside the United States, or for the purpose of 
adoption in the United States, is ineligible for admission 
under the Compact and the Compact, as amended. This sub-
section shall apply to any person who is or was an appli-
cant for admission to the United States on or after March 
1, 2003, including any applicant for admission in removal 
proceedings (including appellate proceedings) on or after 
March 1, 2003, regardless of the date such proceedings were 
commenced. This subsection shall have no effect on the abil-
ity of the Government of the United States or any United 
States State or local government to commence or otherwise
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take any action against any person or entity who has vio-
lated any law relating to the adoption of any person. 
(c) Notwithstanding subsection (a) of this section, no 
person who has been or is granted citizenship in the Fed-
erated States of Micronesia, or has been or is issued a Fed-
erated States of Micronesia passport pursuant to any in-
vestment, passport sale, or similar program has been or 
shall be eligible for admission to the United States under 
the Compact or the Compact, as amended. 
(d) A person admitted to the United States under the 
Compact, or the Compact, as amended, shall be considered 
to have the permission of the Government of the United 
States to accept employment in the United States. An unex-
pired Federated States of Micronesia passport with unex-
pired documentation issued by the Government of the 
United States evidencing admission under the Compact or 
the Compact, as amended, shall be considered to be docu-
mentation establishing identity and employment authoriza-
tion under section 274A(b)(1)(B) of the Immigration and 
Nationality Act, as amended, 8 U.S.C. 1324a(b)(1)(B). The 
Government of the United States will take reasonable and 
appropriate steps to implement and publicize this provi-
sion, and the Government of the Federated States of Micro-
nesia will also take reasonable and appropriate steps to 
publicize this provision.
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(e) For purposes of the Compact and the Compact, as 
amended: 
(1) the term ‘‘residence’’ with respect to a person 
means the person’s principal, actual dwelling place in 
fact, without regard to intent, as provided in section 
101(a)(33) of the Immigration and Nationality Act, 
as amended, 8 U.S.C. 1101(a)(33), and variations of 
the term ‘‘residence,’’ including ‘‘resident’’ and ‘‘re-
side,’’ shall be similarly construed; 
(2) the term ‘‘actual residence’’ means physical 
presence in the Federated States of Micronesia during 
eighty-five percent of the five-year period of residency 
required by section 141(a)(3) and (4); 
(3) the term ‘‘certificate of actual residence’’ 
means a certificate issued to a naturalized citizen by 
the Government of the Federated States of Micronesia 
stating that the citizen has complied with the actual 
residence requirement of section 141(a)(3) or (4); 
(4) the term ‘‘nonimmigrant’’ means an alien 
who is not an ‘‘immigrant’’ as defined in section 
101(a)(15) of such Act, 8 U.S.C. 1101(a)(15); and 
(5) the term ‘‘immediate relative’’ means a 
spouse, or unmarried son or unmarried daughter less 
than 21 years of age.
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(f) The Immigration and Nationality Act, as amended, 
shall apply to any person admitted or seeking admission 
to the United States (other than a United States possession 
or territory where such Act does not apply) under the Com-
pact or the Compact, as amended, and nothing in the Com-
pact or the Compact, as amended, shall be construed to 
limit, preclude, or modify the applicability of, with respect 
to such person: 
(1) any ground of inadmissibility or deport-
ability under such Act (except sections 212(a)(5) and 
212(a)(7)(B)(i)(II) of such Act, as provided in sub-
section (a) of this section), and any defense thereto, 
provided that, section 237(a)(5) of such Act shall be 
construed and applied as if it reads as follows: ‘‘any 
alien who has been admitted under the Compact, or 
the Compact, as amended, who cannot show that he 
or she has sufficient means of support in the United 
States, is deportable’’; 
(2) the authority of the Government of the 
United States under section 214(a)(1) of such Act to 
provide that admission as a nonimmigrant shall be 
for such time and under such conditions as the Gov-
ernment of the United States may by regulations pre-
scribe;
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(3) Except for the treatment of certain docu-
mentation for purposes of section 274A(b)(1)(B) of 
such Act as provided by subsection (d) of this section 
of the Compact, as amended, any requirement under 
section 274A, including but not limited to section 
274A(b)(1)(E); 
(4) Section 643 of the Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996, Pub-
lic Law 104–208, and actions taken pursuant to sec-
tion 643; and 
(5) the authority of the Government of the 
United States otherwise to administer and enforce the 
Immigration and Nationality Act, as amended, or 
other United States law. 
(g) Any authority possessed by the Government of the 
United States under this section of the Compact or the Com-
pact, as amended, may also be exercised by the Government 
of a territory or possession of the United States where the 
Immigration and Nationality Act, as amended, does not 
apply, to the extent such exercise of authority is lawful 
under a statute or regulation of such territory or possession 
that is authorized by the laws of the United States. 
(h) Subsection (a) of this section does not confer on 
a citizen of the Federated States of Micronesia the right 
to establish the residence necessary for naturalization under
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the Immigration and Nationality Act, as amended, or to 
petition for benefits for alien relatives under that Act. Sub-
section (a) of this section, however, shall not prevent a cit-
izen of the Federated States of Micronesia from otherwise 
acquiring such rights or lawful permanent resident alien 
status in the United States. 
Section 142
(a) Any citizen or national of the United States may 
be admitted, to lawfully engage in occupations, and reside 
in the Federated States of Micronesia, subject to the rights 
of the Government of the Federated States of Micronesia to 
deny entry to or deport any such citizen or national as 
an undesirable alien. Any determination of inadmissibility 
or deportability shall be based on reasonable statutory 
grounds and shall be subject to appropriate administrative 
and judicial review within the Federated States of Micro-
nesia. If a citizen or national of the United States is a 
spouse of a citizen of the Federated States of Micronesia, 
the Government of the Federated States of Micronesia shall 
allow the United States citizen spouse to establish residence. 
Should the Federated States of Micronesia citizen spouse 
predecease the United States citizen spouse during the mar-
riage, the Government of the Federated States of Micronesia 
shall allow the United States citizen spouse to continue to 
reside in the Federated States of Micronesia.
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(b) In enacting any laws or imposing any require-
ments with respect to citizens and nationals of the United 
States entering the Federated States of Micronesia under 
subsection (a) of this section, including any grounds of in-
admissibility or deportability, the Government of the Fed-
erated States of Micronesia shall accord to such citizens and 
nationals of the United States treatment no less favorable 
than that accorded to citizens of other countries. 
(c) Consistent with subsection (a) of this section, with 
respect to citizens and nationals of the United States seek-
ing to engage in employment or invest in the Federated 
States of Micronesia, the Government of the Federated 
States of Micronesia shall adopt immigration-related proce-
dures no less favorable than those adopted by the Govern-
ment of the United States with respect to citizens of the 
Federated States of Micronesia seeking employment in the 
United States. 
Section 143
Any person who relinquishes, or otherwise loses, his 
United States nationality or citizenship, or his Federated 
States of Micronesia citizenship, shall be ineligible to re-
ceive the privileges set forth in sections 141 and 142. Any 
such person may apply for admission to the United States 
or the Federated States of Micronesia, as the case may be, 
in accordance with any other applicable laws of the United
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States or the Federated States of Micronesia relating to im-
migration of aliens from other countries. The laws of the 
Federated States of Micronesia or the United States, as the 
case may be, shall dictate the terms and conditions of any 
such person’s stay. 
Article V 
Representation 
Section 151
Relations between the Government of the United States 
and the Government of the Federated States of Micronesia 
shall be conducted in accordance with the Vienna Conven-
tion on Diplomatic Relations. In addition to diplomatic 
missions and representation, the Governments may estab-
lish and maintain other offices and designate other rep-
resentatives on terms and in locations as may be mutually 
agreed. 
Section 152
(a) Any citizen or national of the United States who, 
without authority of the United States, acts as the agent 
of the Government of the Federated States of Micronesia 
with regard to matters specified in the provisions of the 
Foreign Agents Registration Act of 1938, as amended (22 
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
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subject such citizen or national to the same penalties and 
provisions of law as apply in the case of the failure of such 
an agent of a foreign principal to comply with such require-
ments. For purposes of the Foreign Agents Registration Act 
of 1938, the Federated States of Micronesia shall be consid-
ered to be a foreign country. 
(b) Subsection (a) of this section shall not apply to 
a citizen or national of the United States employed by the 
Government of the Federated States of Micronesia with re-
spect to whom the Government of the Federated States of 
Micronesia from time to time certifies to the Government 
of the United States that such citizen or national is an em-
ployee of the Federated States of Micronesia whose prin-
cipal duties are other than those matters specified in the 
Foreign Agents Registration Act of 1938, as amended, that 
apply with respect to an agent of a foreign principal. The 
agency or officer of the United States receiving such certifi-
cations shall cause them to be filed with the Attorney Gen-
eral, who shall maintain a publicly available list of the per-
sons so certified. 
Article VI 
Environmental Protection 
Section 161
The Governments of the United States and the Fed-
erated States of Micronesia declare that it is their policy
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to promote efforts to prevent or eliminate damage to the 
environment and biosphere and to enrich understanding of 
the natural resources of the Federated States of Micronesia. 
In order to carry out this policy, the Government of the 
United States and the Government of the Federated States 
of Micronesia agree to the following mutual and reciprocal 
undertakings. 
(a) The Government of the United States: 
(1) shall continue to apply the environmental 
controls in effect on November 2, 1986 to those of its 
continuing activities subject to section 161(a)(2), un-
less and until those controls are modified under sec-
tions 161(a)(3) and 161(a)(4); 
(2) shall apply the National Environmental Pol-
icy Act of 1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., 
to its activities under the Compact, as amended, and 
its related agreements as if the Federated States of 
Micronesia were the United States; 
(3) shall comply also, in the conduct of any ac-
tivity requiring the preparation of an Environmental 
Impact Statement under section 161(a)(2), with 
standards substantively similar to those required by 
the following laws of the United States, taking into 
account the particular environment of the Federated 
States of Micronesia: the Endangered Species Act of
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1973, as amended, 87 Stat. 884, 16 U.S.C. 1531 et 
seq.; the Clean Air Act, as amended, 77 Stat. 392, 42 
U.S.C. Supp. 7401 et seq.; the Clean Water Act (Fed-
eral Water Pollution Control Act), as amended, 86 
Stat. 896, 33 U.S.C. 1251 et seq.; Title I of the Ma-
rine Protection, Research and Sanctuaries Act of 
1972 (the Ocean Dumping Act), 33 U.S.C. 1411 et 
seq.; the Toxic Substances Control Act, as amended, 
15 U.S.C. 2601 et seq.; the Solid Waste Disposal Act, 
as amended, 42 U.S.C. 6901 et seq.; and such other 
environmental protection laws of the United States 
and of the Federated States of Micronesia, as may be 
mutually agreed from time to time with the Govern-
ment of the Federated States of Micronesia; and 
(4) shall develop, prior to conducting any activ-
ity requiring the preparation of an Environmental 
Impact Statement under section 161(a)(2), written 
standards and procedures, as agreed with the Govern-
ment of the Federated States of Micronesia, to imple-
ment the substantive provisions of the laws made ap-
plicable to U.S. Government activities in the Fed-
erated States of Micronesia, pursuant to section 
161(a)(3). 
(b) The Government of the Federated States of Micro-
nesia shall continue to develop and implement standards
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and procedures to protect its environment. As a reciprocal 
obligation to the undertakings of the Government of the 
United States under this Article, the Federated States of 
Micronesia, taking into account its particular environment, 
shall continue to develop and implement standards for envi-
ronmental protection substantively similar to those required 
of the Government of the United States by section 161(a)(3) 
prior to its conducting activities in the Federated States 
of Micronesia, substantively equivalent to activities con-
ducted there by the Government of the United States and, 
as a further reciprocal obligation, shall enforce those stand-
ards. 
(c) Section 161(a), including any standard or proce-
dure applicable thereunder, and section 161(b) may be 
modified or superseded in whole or in part by agreement 
of the Government of the United States and the Government 
of the Federated States of Micronesia. 
(d) In the event that an Environmental Impact State-
ment is no longer required under the laws of the United 
States for major Federal actions significantly affecting the 
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.
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(e) The President of the United States may exempt any 
of the activities of the Government of the United States 
under this Compact, as amended, and its related agree-
ments from any environmental standard or procedure 
which may be applicable under sections 161(a)(3) and 
161(a)(4) if the President determines it to be in the para-
mount interest of the Government of the United States to 
do so, consistent with Title Three of this Compact, as 
amended, and the obligations of the Government of the 
United States under international law. Prior to any deci-
sion pursuant to this subsection, the views of the Govern-
ment of the Federated States of Micronesia shall be sought 
and considered to the extent practicable. If the President 
grants such an exemption, to the extent practicable, a report 
with his reasons for granting such exemption shall be given 
promptly to the Government of the Federated States of Mi-
cronesia. 
(f) The laws of the United States referred to in section 
161(a)(3) shall apply to the activities of the Government 
of the United States under this Compact, as amended, and 
its related agreements only to the extent provided for in this 
section. 
Section 162
The Government of the Federated States of Micronesia 
may bring an action for judicial review of any administra-
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tive agency action or any activity of the Government of the 
United States pursuant to section 161(a) for enforcement 
of the obligations of the Government of the United States 
arising thereunder. The United States District Court for the 
District of Hawaii and the United States District Court 
for the District of Columbia shall have jurisdiction over 
such action or activity, and over actions brought under sec-
tion 172(b) which relate to the activities of the Government 
of the United States and its officers and employees, gov-
erned by section 161, provided that: 
(a) Such actions may only be civil actions for 
any appropriate civil relief other than punitive dam-
ages against the Government of the United States or, 
where required by law, its officers in their official ca-
pacity; no criminal actions may arise under this sec-
tion. 
(b) Actions brought pursuant to this section may 
be initiated only by the Government of the Federated 
States of Micronesia. 
(c) Administrative agency actions arising under 
section 161 shall be reviewed pursuant to the stand-
ard of judicial review set forth in 5 U.S.C. 706. 
(d) The United States District Court for the Dis-
trict of Hawaii and the United States District Court 
for the District of Columbia shall have jurisdiction to
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issue all necessary processes, and the Government of 
the United States agrees to submit itself to the juris-
diction of the court; decisions of the United States 
District Court shall be reviewable in the United 
States Court of Appeals for the Ninth Circuit or the 
United States Court of Appeals for the District of Co-
lumbia, respectively, or in the United States Supreme 
Court as provided by the laws of the United States. 
(e) The judicial remedy provided for in this sec-
tion shall be the exclusive remedy for the judicial re-
view or enforcement of the obligations of the Govern-
ment of the United States under this Article and ac-
tions brought under section 172(b) which relate to the 
activities of the Government of the United States and 
its officers and employees governed by section 161. 
(f) In actions pursuant to this section, the Gov-
ernment of the Federated States of Micronesia shall be 
treated as if it were a United States citizen. 
Section 163
(a) For the purpose of gathering data necessary to 
study the environmental effects of activities of the Govern-
ment of the United States subject to the requirements of this 
Article, the Government of the Federated States of Micro-
nesia shall be granted access to facilities operated by the 
Government of the United States in the Federated States
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of Micronesia, to the extent necessary for this purpose, ex-
cept to the extent such access would unreasonably interfere 
with the exercise of the authority and responsibility of the 
Government of the United States under Title Three. 
(b) The Government of the United States, in turn, shall 
be granted access to the Federated States of Micronesia for 
the purpose of gathering data necessary to discharge its ob-
ligations under this Article, except to the extent such access 
would unreasonably interfere with the exercise of the au-
thority and responsibility of the Government of the Fed-
erated States of Micronesia under Title One, and to the ex-
tent necessary for this purpose shall be granted access to 
documents and other information to the same extent similar 
access is provided the Government of the Federated States 
of Micronesia under the Freedom of Information Act, 5 
U.S.C. 552. 
(c) The Government of the Federated States of Micro-
nesia shall not impede efforts by the Government of the 
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
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United States to the Trust Territory of the Pacific Islands 
by virtue of the Trusteeship Agreement ceased with respect 
to the Federated States of Micronesia on November 3, 1986, 
the date the Compact went into effect. 
Section 172
(a) Every citizen of the Federated States of Micronesia 
who is not a resident of the United States shall enjoy the 
rights and remedies under the laws of the United States 
enjoyed by any non-resident alien. 
(b) The Government of the Federated States of Micro-
nesia and every citizen of the Federated States of Micro-
nesia shall be considered to be a ‘‘person’’ within the mean-
ing of the Freedom of Information Act, 5 U.S.C. 552, and 
of the judicial review provisions of the Administrative Pro-
cedure Act, 5 U.S.C. 701–706, except that only the Govern-
ment of the Federated States of Micronesia may seek judi-
cial review under the Administrative Procedure Act or judi-
cial enforcement under the Freedom of Information Act 
when such judicial review or enforcement relates to the ac-
tivities of the Government of the United States governed by 
sections 161 and 162. 
Section 173
The Governments of the United States and the Fed-
erated States of Micronesia agree to adopt and enforce such 
measures, consistent with this Compact, as amended, and
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its related agreements, as may be necessary to protect the 
personnel, property, installations, services, programs and 
official archives and documents maintained by the Govern-
ment of the United States in the Federated States of Micro-
nesia pursuant to this Compact, as amended, and its re-
lated agreements and by the Government of the Federated 
States of Micronesia in the United States pursuant to this 
Compact, as amended, and its related agreements. 
Section 174
Except as otherwise provided in this Compact, as 
amended, and its related agreements: 
(a) The Government of the Federated States of 
Micronesia, and its agencies and officials, shall be 
immune from the jurisdiction of the court of the 
United States, and the Government of the United 
States, and its agencies and officials, shall be immune 
from the jurisdiction of the courts of the Federated 
States of Micronesia. 
(b) The Government of the United States accepts 
responsibility for and shall pay: 
(1) any unpaid money judgment rendered 
by the High Court of the Trust Territory of the 
Pacific Islands against the Government of the 
United States with regard to any cause of action 
arising as a result of acts or omissions of the
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Government of the Trust Territory of the Pacific 
Islands or the Government of the United States 
prior to November 3, 1986; 
(2) any claim settled by the claimant and 
the Government of the Trust Territory of the Pa-
cific Islands but not paid as of the November 3, 
1986; and 
(3) settlement of any administrative claim 
or of any action before a court of the Trust Ter-
ritory of the Pacific Islands or the Government 
of the United States, arising as a result of acts 
or omissions of the Government of the Trust Ter-
ritory of the Pacific Islands or the Government 
of the United States. 
(c) Any claim not referred to in section 174(b) 
and arising from an act or omission of the Govern-
ment of the Trust Territory of the Pacific Islands or 
the Government of the United States prior to the effec-
tive date of the Compact shall be adjudicated in the 
same manner as a claim adjudicated according to sec-
tion 174(d). In any claim against the Government of 
the Trust Territory of the Pacific Islands, the Govern-
ment of the United States shall stand in the place of 
the Government of the Trust Territory of the Pacific 
Islands. A judgment on any claim referred to in sec-
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tion 174(b) or this subsection, not otherwise satisfied 
by the Government of the United States, may be pre-
sented for certification to the United States Court of 
Appeals for the Federal Circuit, or its successor 
courts, which shall have jurisdiction therefore, not-
withstanding the provisions of 28 U.S.C. 1502, and 
which court’s decisions shall be reviewable as provided 
by the laws of the United States. The United States 
Court of Appeals for the Federal Circuit shall certify 
such judgment, and order payment thereof, unless it 
finds, after a hearing, that such judgment is mani-
festly erroneous as to law or fact, or manifestly exces-
sive. In either of such cases the United States Court 
of Appeals for the Federal Circuit shall have jurisdic-
tion to modify such judgment. 
(d) The Government of the Federated States of 
Micronesia shall not be immune from the jurisdiction 
of the courts of the United States, and the Govern-
ment of the United States shall not be immune from 
the jurisdiction of the courts of the Federated States 
of Micronesia in any civil case in which an exception 
to foreign state immunity is set forth in the Foreign 
Sovereign Immunities Act (28 U.S.C. 1602 et seq.) or 
its successor statutes. 
Section 175
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(a) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall 
have the force of law, shall govern mutual assistance and 
cooperation in law enforcement matters, including the pur-
suit, capture, imprisonment and extradition of fugitives 
from justice and the transfer of prisoners, as well as other 
law enforcement matters. In the United States, the laws of 
the United States governing international extradition, in-
cluding 18 U.S.C. 3184, 3186 and 3188–95, shall be appli-
cable to the extradition of fugitives under the separate 
agreement, and the laws of the United States governing the 
transfer of prisoners, including 18 U.S.C. 4100–15, shall 
be applicable to the transfer of prisoners under the separate 
agreement; and 
(b) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall 
have the force of law, shall govern requirements relating to 
labor recruitment practices, including registration, report-
ing, suspension or revocation of authorization to recruit 
persons for employment in the United States, and enforce-
ment for violations of such requirements. 
Section 176
The Government of the Federated States of Micronesia 
confirms that final judgments in civil cases rendered by any 
court of the Trust Territory of the Pacific Islands shall con-
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tinue in full force and effect, subject to the constitutional 
power of the courts of the Federated States of Micronesia 
to grant relief from judgments in appropriate cases. 
Section 177
Section 177 of the Compact entered into force with re-
spect to the Federated States of Micronesia on November 
3, 1986 as follows: 
‘‘(a) The Government of the United States ac-
cepts the responsibility for compensation owing to 
citizens of the Marshall Islands, or the Federated 
States of Micronesia, or Palau for loss or damage to 
property and person of the citizens of the Marshall Is-
lands, 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. 
‘‘(b) The Government of the United States and 
the Government of the Marshall Islands shall set forth 
in a separate agreement provisions for the just and 
adequate settlement of all such claims which have 
arisen in regard to the Marshall Islands and its citi-
zens and which have not as yet been compensated or 
which in the future may arise, for the continued ad-
ministration by the Government of the United States
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of direct radiation related medical surveillance and 
treatment programs and radiological monitoring ac-
tivities and for such additional programs and activi-
ties as may be mutually agreed, and for the assump-
tion by the Government of the Marshall Islands of re-
sponsibility for enforcement of limitations on the uti-
lization of affected areas developed in cooperation 
with the Government of the United States and for the 
assistance by the Government of the United States in 
the exercise of such responsibility as may be mutually 
agreed. This separate agreement shall come into effect 
simultaneously with this Compact and shall remain 
in effect in accordance with its own terms. 
‘‘(c) The Government of the United States shall 
provide to the Government of the Marshall Islands, on 
a grant basis, the amount of $150 million to be paid 
and distributed in accordance with the separate 
agreement referred to in this Section, and shall pro-
vide the services and programs set forth in this sepa-
rate agreement, the language of which is incorporated 
into this Compact.’’
The Compact, as amended, makes no changes to, and 
has no effect upon, Section 177 of the Compact, nor does 
the Compact, as amended, change or affect the separate 
agreement referred to in Section 177 of the Compact includ-
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ing Articles IX and X of that separate agreement, and 
measures taken by the parties thereunder. 
Section 178
(a) The Federal agencies of the Government of the 
United States that provide the services and related pro-
grams in the Federated States of Micronesia pursuant to 
Title Two are authorized to settle and pay tort claims aris-
ing in the Federated States of Micronesia from the activities 
of such agencies or from the acts or omissions of the employ-
ees of such agencies. Except as provided in section 178(b), 
the provisions of 28 U.S.C. 2672 and 31 U.S.C. 1304 shall 
apply exclusively to such administrative settlements and 
payments. 
(b) Claims under section 178(a) that cannot be settled 
under section 178(a) shall be disposed of exclusively in ac-
cordance with Article II of Title Four. Arbitration awards 
rendered pursuant to this subsection shall be paid out of 
funds under 31 U.S.C. 1304. 
(c) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia shall, in the 
separate agreement referred to in section 231, provide for: 
(1) the administrative settlement of claims re-
ferred to in section 178(a), including designation of 
local agents in each State of the Federated States of 
Micronesia; such agents to be empowered to accept,
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investigate and settle such claims, in a timely man-
ner, as provided in such separate agreements; and 
(2) arbitration, referred to in section 178(b), in 
a timely manner, at a site convenient to the claim-
ant, in the event a claim is not otherwise settled pur-
suant to section 178(a). 
(d) The provisions of section 174(d) shall not apply 
to claims covered by this section. 
(e) Except as otherwise explicitly provided by law of 
the United States, neither the Government of the United 
States, its instrumentalities, nor any person acting on be-
half of the Government of the United States, shall be named 
a party in any action based on, or arising out of, the activ-
ity or activities of a recipient of any grant or other assist-
ance provided by the Government of the United States (or 
the activity or activities of the recipient’s agency or any 
other person or entity acting on behalf of the recipient). 
Section 179
(a) The courts of the Federated States of Micronesia 
shall not exercise criminal jurisdiction over the Government 
of the United States, or its instrumentalities. 
(b) The courts of the Federated States of Micronesia 
shall not exercise criminal jurisdiction over any person if 
the Government of the United States provides notification 
to the Government of the Federated States of Micronesia
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that such person was acting on behalf of the Government 
of the United States, for actions taken in furtherance of sec-
tion 221 or 224 of this amended Compact, or any other 
provision of law authorizing financial, program, or service 
assistance to the Federated States of Micronesia. 
TITLE TWO 
ECONOMIC RELATIONS 
Article I 
Grant Assistance 
Section 211 - Sector Grants 
(a) In order to assist the Government of the Federated 
States of Micronesia in its efforts to promote the economic 
advancement, budgetary self-reliance, and economic self-suf-
ficiency of its people, and in recognition of the special rela-
tionship that exists between the Federated States of Micro-
nesia and the United States, the Government of the United 
States shall provide assistance on a sector grant basis for 
a period of twenty years in the amounts set forth in section 
216, commencing on the effective date of this Compact, as 
amended. Such grants shall be used for assistance in the 
sectors of education, health care, private sector development, 
the environment, public sector capacity building, and pub-
lic infrastructure, or for other sectors as mutually agreed, 
with priorities in the education and health care sectors. For 
each year such sector grant assistance is made available,
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the proposed division of this amount among these sectors 
shall be certified to the Government of the United States 
by the Government of the Federated States of Micronesia 
and shall be subject to the concurrence of the Government 
of the United States. In such case, the Government of the 
United States shall disburse the agreed upon amounts and 
monitor the use of such sector grants in accordance with 
the provisions of this Article and the Agreement Concerning 
Procedures for the Implementation of United States Eco-
nomic Assistance Provided in the Compact, as Amended, 
of Free Association Between the Government of the United 
States of America and the Government of the Federated 
States of Micronesia (‘‘Fiscal Procedures Agreement’’) 
which shall come into effect simultaneously with this Com-
pact, as amended. The provision of any United States as-
sistance under the Compact, as amended, the Fiscal Proce-
dures Agreement, the Trust Fund Agreement, or any other 
subsidiary agreement to the Compact, as amended, shall 
constitute ‘‘a particular distribution . . . required by the 
terms or special nature of the assistance’’ for purposes of 
Article XII, section 1(b) of the Constitution of the Federated 
States of Micronesia.
(1) EDUCATION.—United States grant assistance 
shall be made available in accordance with the plan 
described in subsection (c) of this section to support
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and improve the educational system of the Federated 
States of Micronesia and develop the human, finan-
cial, and material resources necessary for the Govern-
ment of the Federated States of Micronesia to perform 
these services. Emphasis should be placed on advanc-
ing a quality basic education system. 
(2) HEALTH.—United States grant assistance 
shall be made available in accordance with the plan 
described in subsection (c) of this section to support 
and improve the delivery of preventive, curative and 
environmental care and develop the human, financial, 
and material resources necessary for the Government 
of the Federated States of Micronesia to perform these 
services. 
(3) PRIVATE
SECTOR
DEVELOPMENT.—United 
States grant assistance shall be made available in ac-
cordance with the plan described in subsection (c) of 
this section to support the efforts of the Government 
of the Federated States of Micronesia to attract for-
eign investment and increase indigenous business ac-
tivity by vitalizing the commercial environment, en-
suring fair and equitable application of the law, pro-
moting adherence to core labor standards, and main-
taining progress toward privatization of state-owned
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and partially state-owned enterprises, and engaging 
in other reforms. 
(4) CAPACITY
BUILDING
IN
THE
PUBLIC
SEC-
TOR.—United States grant assistance shall be made 
available in accordance with the plan described in 
subsection (c) of this section to support the efforts of 
the Government of the Federated States of Micronesia 
to build effective, accountable and transparent na-
tional, state, and local government and other public 
sector institutions and systems. 
(5) ENVIRONMENT.—United States grant assist-
ance shall be made available in accordance with the 
plan described in subsection (c) of this section to in-
crease environmental protection; conserve and achieve 
sustainable use of natural resources; and engage in 
environmental infrastructure planning, design con-
struction and operation. 
(6) PUBLIC INFRASTRUCTURE.—
(i) U.S. annual grant assistance shall be 
made available in accordance with a list of spe-
cific projects included in the plan described in 
subsection (c) of this section to assist the Govern-
ment of the Federated States of Micronesia in its 
efforts to provide adequate public infrastructure.
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(ii) INFRASTRUCTURE
AND
MAINTENANCE 
FUND.—Five percent of the annual public infra-
structure grant made available under paragraph 
(i) of this subsection shall be set aside, with an 
equal contribution from the Government of the 
Federated States of Micronesia, as a contribution 
to an Infrastructure Maintenance Fund (IMF). 
Administration of the Infrastructure Mainte-
nance Fund shall be governed by the Fiscal Pro-
cedures Agreement. 
(b) HUMANITARIAN ASSISTANCE.—Federated States of 
Micronesia Program. In recognition of the special develop-
ment needs of the Federated States of Micronesia, the Gov-
ernment of the United States shall make available to the 
Government of the Federated States of Micronesia, on its 
request and to be deducted from the grant amount made 
available under subsection (a) of this section, a Humani-
tarian Assistance - Federated States of Micronesia 
(‘‘HAFSM’’) Program with emphasis on health, education, 
and infrastructure (including transportation), projects. The 
terms and conditions of the HAFSM shall be set forth in 
the Agreement Regarding the Military Use and Operating 
Rights of the Government of the United States in the Gov-
ernment of the Federated States of Micronesia Concluded 
Pursuant to Sections 321 and 323 of the Compact of Free
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Association, as Amended which shall come into effect simul-
taneously with the amendments to this Compact. 
(c) DEVELOPMENT PLAN.—The Government of the 
Federated States of Micronesia shall prepare and maintain 
an official overall development plan. The plan shall be stra-
tegic in nature, shall be continuously reviewed and updated 
through the annual budget process, and shall make projec-
tions on a multi-year rolling basis. Each of the sectors 
named in subsection (a) of this section, or other sectors as 
mutually agreed, shall be accorded specific treatment in the 
plan. Insofar as grants funds are involved, the plan shall 
be subject to the concurrence of the Government of the 
United States. 
(d) DISASTER ASSISTANCE EMERGENCY FUND.—An 
amount of two hundred thousand dollars ($200,000) shall 
be provided annually, with an equal contribution from the 
Government of the Federated States of Micronesia, as a con-
tribution to a ‘‘Disaster Assistance Emergency Fund 
(DAEF).’’ Any funds from the DAEF may be used only 
for assistance and rehabilitation resulting from disasters 
and emergencies. The funds will be accessed upon declara-
tion by the Government of the Federated States of Micro-
nesia, with the concurrence of the United States Chief of 
Mission to the Federated States of Micronesia. The Admin-
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istration of the DAEF shall be governed by the Fiscal Proce-
dures Agreement. 
Section 212 - Accountability. 
(a) Regulations and policies normally applicable to 
United States financial assistance to its state and local gov-
ernments, as reflected in the Fiscal Procedures Agreement, 
shall apply to each sector grant described in section 211, 
and to grants administered under section 221 below, except 
as modified in the separate agreements referred to in section 
231 of this Compact, as amended, or by United States law. 
The Government of the United States, after annual con-
sultations with the Federated States of Micronesia, may at-
tach reasonable terms and conditions, including annual 
performance indicators that are necessary to ensure effective 
use of United States assistance and reasonable progress to-
ward achieving program objectives. The Government of the 
United States may seek appropriate remedies for non-
compliance with the terms and conditions attached to the 
assistance, or for failure to comply with section 234, includ-
ing withholding assistance. 
(b) The Government of the United States shall, for each 
fiscal year of the twenty years during which assistance is 
to be provided on a sector grant basis under section 211, 
grant the Government of the Federated States of Micronesia 
an amount equal to the lesser of (i) one half of the reason-
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able, properly documented cost incurred during each fiscal 
year to conduct the annual audit required under Article 
VIII (2) of the Fiscal Procedures Agreement or (ii) 
$500,000. Such amount will not be adjusted for inflation 
under section 217 or otherwise. 
Section 213 - Joint Economic Management Committee 
The Governments of the United States and the Fed-
erated States of Micronesia shall establish a Joint Economic 
Management Committee, composed of a U.S. chair, two 
other members from the Government of the United States 
and two members from the Government of the Federated 
States of Micronesia. The Joint Economic Management 
Committee shall meet at least once each year to review the 
audits and reports required under this Title, evaluate the 
progress made by the Federated States of Micronesia in 
meeting the objectives identified in its plan described in 
subsection (c) of section 211, with particular focus on those 
parts of the plan dealing with the sectors identified in sub-
section (a) of section 211, identify problems encountered, 
and recommend ways to increase the effectiveness of U.S. 
assistance made available under this Title. The establish-
ment and operations of the Joint Economic Management 
Committee shall be governed by the Fiscal Procedures Agree-
ment. 
Section 214 - Annual Report
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The Government of the Federated States of Micronesia 
shall report annually to the President of the United States 
on the use of United States sector grant assistance and other 
assistance and progress in meeting mutually agreed pro-
gram and economic goals. The Joint Economic Manage-
ment Committee shall review and comment on the report 
and make appropriate recommendations based thereon. 
Section 215 - Trust Fund 
(a) The United States shall contribute annually for 
twenty years from the effective date of this Compact, as 
amended, in the amounts set forth in section 216 into a 
Trust Fund established in accordance with the Agreement 
Between the Government of the United States of America 
and the Government of the Federated States of Micronesia 
Implementing Section 215 and Section 216 of the Compact, 
as Amended, Regarding a Trust Fund (‘‘Trust Fund Agree-
ment’’). Upon termination of the annual financial assist-
ance under section 211, the proceeds of the fund shall there-
after be used for the purposes described in section 211 or 
as otherwise mutually agreed. 
(b) The United States contribution into the Trust 
Fund described in subsection(a) of this section is condi-
tioned on the Government of the Federated States of Micro-
nesia contributing to the Trust Fund at least $30 million, 
prior to September 30, 2004. Any funds received by the Fed-
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erated States of Micronesia under section 111 (d) of Public 
Law 99–239 (January 14, 1986), or successor provisions, 
would be contributed to the Trust Fund as a Federated 
States of Micronesia contribution. 
(c) The terms regarding the investment and manage-
ment of funds and use of the income of the Trust Fund shall 
be set forth in the separate Trust Fund Agreement described 
in subsection (a) of this section. Funds derived from United 
States investment shall not be subject to Federal or state 
taxes in the United States or the Federated States of Micro-
nesia. The Trust Fund Agreement shall also provide for an-
nual reports to the Government of the United States and 
to the Government of the Federated States of Micronesia. 
The Trust Fund Agreement shall provide for appropriate 
distributions of trust fund proceeds to the Federated States 
of Micronesia and for appropriate remedies for the failure 
of the Federated States of Micronesia to use income of the 
Trust Fund for the annual grant purposes set forth in sec-
tion 211. These remedies may include the return to the 
United States of the present market value of its contribu-
tions to the Trust Fund and the present market value of 
any undistributed income on the contributions of the 
United States. If this Compact, as amended, is terminated, 
the provisions of sections 451 through 453 of this Compact,
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as amended, shall govern treatment of any U.S. contribu-
tions to the Trust Fund or accrued interest thereon. 
Section 216 - Sector Grant Funding and Trust Fund Con-
tributions 
The funds described in sections 211, 212(b) and 215 
shall be made available as follows:
[In millions of dollars] 
Fiscal year 
Annual Grants 
Section 211
Audit Grant
Section 212(b) 
(amount up to) 
Trust Fund
Section 215
Total 
2004 .........................................................
76.2 
.5 
92.7
2005 .........................................................
76.2 
.5 
92.7
2006 .........................................................
76.2 
.5 
92.7
2007 .........................................................
75.4 
.5 
16.8 
92.7
2008 .........................................................
74.6 
.5 
17.6 
92.7
2009 .........................................................
73.8 
.5 
18.4 
92.7
2010 .........................................................
.5 
19.2 
92.7
2011 .........................................................
72.2 
.5 
92.7
2012 .........................................................
71.4 
.5 
20.8 
92.7
2013 .........................................................
70.6 
.5 
21.6 
92.7
2014 .........................................................
69.8 
.5 
22.4 
92.7
2015 .........................................................
.5 
23.2 
92.7
2016 .........................................................
68.2 
.5 
92.7
2017 .........................................................
67.4 
.5 
24.8 
92.7
2018 .........................................................
66.6 
.5 
25.6 
92.7
2019 .........................................................
65.8 
.5 
26.4 
92.7
2020 .........................................................
.5 
27.2 
92.7
2021 .........................................................
64.2 
.5 
92.7
2022 .........................................................
63.4 
.5 
28.8 
92.7
2023 .........................................................
62.6 
.5 
29.6 
92.7
Section 217 - Inflation Adjustment 
Except for the amounts provided for audits under sec-
tion 212(b), the amounts stated in this Title shall be ad-
justed for each United States Fiscal Year by the percent 
that equals two-thirds of the percent change in the United 
States Gross Domestic Product Implicit Price Deflator, or 
5 percent, whichever is less in any one year, using the be-
ginning of Fiscal Year 2004 as a base. 
Section 218 - Carry-Over of Unused Funds
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If in any year the funds made available by the Govern-
ment of the United States for that year pursuant to this 
Article are not completely obligated by the Government of 
the Federated States of Micronesia, the unobligated balances 
shall remain available in addition to the funds to be pro-
vided in subsequent years. 
Article II 
Services and Program Assistance 
Section 221
(a) SERVICES.—The Government of the United States 
shall make available to the Federated States of Micronesia, 
in accordance with and to the extent provided in the Fed-
eral Programs and Services Agreement referred to in section 
231, the services and related programs of: 
(1) the United States Weather Service; 
(2) the United States Postal Service; 
(3) the United States Federal Aviation Adminis-
tration; 
(4) the United States Department of Transpor-
tation; 
(5) the Federal Deposit Insurance Corporation 
(for the benefit only of the Bank of the Federated 
States of Micronesia), and
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(6) the Department of Homeland Security, and 
the United States Agency for International Develop-
ment, Office of Foreign Disaster Assistance. 
Upon the effective date of this Compact, as amended, the 
United States Departments and Agencies named or having 
responsibility to provide these services and related programs 
shall have the authority to implement the relevant provi-
sions of the Federal Programs and Services Agreement re-
ferred to in section 231. 
(b) PROGRAMS.—
(1) With the exception of the services and pro-
grams covered by subsection (a) of this section, and 
unless the Congress of the United States provides oth-
erwise, the Government of the United States shall 
make available to the Federated States of Micronesia 
the services and programs that were available to the 
Federated States of Micronesia 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 governments of the United States. As 
set forth in the Fiscal Procedures Agreement, funds 
provided under subsection (a) of section 211 will be 
considered to be local revenues of the Government of 
the Federated States of Micronesia when used as the
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local share required to obtain Federal programs and 
services. 
(2) Unless provided otherwise by U.S. law, the 
services and programs described in paragraph (1) of 
this subsection shall be extended in accordance with 
the terms of the Federal Programs and Services 
Agreement referred to in section 231. 
(c) The Government of the United States shall have 
and exercise such authority as is necessary to carry out its 
responsibilities under this Title and the separate agree-
ments referred to in amended section 231, including the au-
thority to monitor and administer all service and program 
assistance provided by the United States to the Federated 
States of Micronesia. The Federal Programs and Services 
Agreement referred to in amended section 231 shall also set 
forth the extent to which services and programs shall be pro-
vided to the Federated States of Micronesia. 
(d) Except as provided elsewhere in this Compact, as 
amended, under any separate agreement entered into under 
this Compact, as amended, or otherwise under U.S. law, 
all Federal domestic programs extended to or operating in 
the Federated States of Micronesia shall be subject to all 
applicable criteria, standards, reporting requirements, au-
diting procedures, and other rules and regulations applica-
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ble to such programs and services when operating in the 
United States. 
(e) The Government of the United States shall make 
available to the Federated States of Micronesia alternate en-
ergy development projects, studies, and conservation meas-
ures to the extent provided for the Freely Associated States 
in the laws of the United States. 
Section 222
The Government of the United States and the Govern-
ment of the Federated States of Micronesia may agree from 
time to time to extend to the Federated States of Micronesia 
additional United States grant assistance, services and pro-
grams, as provided under the laws of the United States. 
Unless inconsistent with such laws, or otherwise specifically 
precluded by the Government of the United States at the 
time such additional grant assistance, services, or programs 
are extended, the Federal Programs and Services Agreement 
referred to section 231 shall apply to any such assistance, 
services or programs. 
Section 223
The Government of the Federated States of Micronesia 
shall make available to the Government of the United States 
at no cost such land as may be necessary for the operations 
of the services and programs provided pursuant to this Arti-
cle, and such facilities as are provided by the Government
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of the Federated States of Micronesia at no cost to the Gov-
ernment of the United States as of the effective date of this 
Compact, as amended, or as may be mutually agreed there-
after. 
Section 224
The Government of the Federated States of Micronesia 
may request, from time to time, technical assistance from 
the Federal agencies and institutions of the Government of 
the United States, which are authorized to grant such tech-
nical assistance in accordance with its laws. If technical 
assistance is granted pursuant to such a request, the Gov-
ernment of the United States shall provide the technical as-
sistance in a manner which gives priority consideration to 
the Federated States of Micronesia over other recipients not 
a part of the United States, its territories or possessions, 
and equivalent consideration to the Federated States of Mi-
cronesia with respect to other states in Free Association 
with the United States. Such assistance shall be made avail-
able on a reimbursable or non-reimbursable basis to the ex-
tent provided by United States law. 
Article III 
Administrative Provisions 
Section 231
The specific nature, extent and contractual arrange-
ments of the services and programs provided for in section
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221 of this Compact, as amended, as well as the legal status 
of agencies of the Government of the United States, their 
civilian employees and contractors, and the dependents of 
such personnel while present in the Federated States of Mi-
cronesia, and other arrangements in connection with the 
assistance, services, or programs furnished by the Govern-
ment of the United States, are set forth in a Federal Pro-
grams and Services Agreement which shall come into effect 
simultaneously with this Compact, as amended. 
Section 232
The Government of the United States, in consultation 
with the Government of the Federated States of Micronesia, 
shall determine and implement procedures for the periodic 
audit of all grants and other assistance made under Article 
I of this Title and of all funds expended for the services 
and programs provided under Article II of this Title. Fur-
ther, in accordance with the Fiscal Procedures Agreement 
described in subsection (a) of section 211, the Comptroller 
General of the United States shall have such powers and 
authorities as described in sections 102 (c) and 110 (c) of 
Public Law 99–239, 99 Stat. 1777–78, and 99 Stat. 1799 
(January 14, 1986). 
Section 233
Approval of this Compact, as amended, by the Govern-
ment of the United States, in accordance with its constitu-
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tional processes, shall constitute a pledge by the United 
States that the sums and amounts specified as sector grants 
in section 211 of this Compact, as amended, shall be appro-
priated and paid to the Federated States of Micronesia for 
such period as those provisions of this Compact, as amend-
ed, remain in force, subject to the terms and conditions of 
this Title and related subsidiary agreements. 
Section 234
The Government of the Federated States of Micronesia 
pledges to cooperate with, permit, and assist if reasonably 
requested, designated and authorized representatives of the 
Government of the United States charged with investigating 
whether Compact funds, or any other assistance authorized 
under this Compact, as amended, have, or are being, used 
for purposes other than those set forth in this Compact, as 
amended, or its subsidiary agreements. In carrying out this 
investigative authority, such United States Government 
representatives may request that the Government of the Fed-
erated States of Micronesia subpoena documents and 
records and compel testimony in accordance with the laws 
and Constitution of the Federated States of Micronesia. 
Such assistance by the Government of the Federated States 
of Micronesia to the Government of the United States shall 
not be unreasonably withheld. The obligation of the Govern-
ment of the Federated States of Micronesia to fulfill its
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pledge herein is a condition to its receiving payment of such 
funds or other assistance authorized under this Compact, 
as amended. The Government of the United States shall pay 
any reasonable costs for extraordinary services executed by 
the Government of the Federated States of Micronesia in 
carrying out the provisions of this section. 
Article IV 
Trade 
Section 241
The Federated States of Micronesia is not included in 
the customs territory of the United States. 
Section 242
The President shall proclaim the following tariff treat-
ment for articles imported from the Federated States of Mi-
cronesia which shall apply during the period of effectiveness 
of this title: 
(a) Unless otherwise excluded, articles imported 
from the Federated States of Micronesia, subject to the 
limitations imposed under section 503(b) of title V of 
the Trade Act of 1974 (19 U.S.C. 2463(b)), shall be 
exempt from duty. 
(b) Only tuna in airtight containers provided for 
in heading 1604.14.22 of the Harmonized Tariff 
Schedule of the United States that is imported from 
the Federated States of Micronesia and the Republic
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of the Marshall Islands during any calendar year not 
to exceed 10 percent of apparent United States con-
sumption of tuna in airtight containers during the 
immediately preceding calendar year, as reported by 
the National Marine Fisheries Service, shall be ex-
empt from duty; but the quantity of tuna given duty-
free treatment under this paragraph for any calendar 
year shall be counted against the aggregated quantity 
of tuna in airtight containers that is dutiable under 
rate column numbered 1 of such heading 1604.14.22 
for that calendar year. 
(c) The duty-free treatment provided under sub-
section (a) shall not apply to—
(1) watches, clocks, and timing apparatus 
provided for in Chapter 91, excluding heading 
9113, of the Harmonized Tariff Schedule of the 
United States; 
(2) buttons (whether finished or not fin-
ished) provided for in items 9606.21.40 and 
9606.29.20 of such Schedule; 
(3) textile and apparel articles which are 
subject to textile agreements; and 
(4) footwear, handbags, luggage, flat goods, 
work gloves, and leather wearing apparel which 
were not eligible articles for purposes of title V
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of the Trade Act of 1974 (19 U.S.C. 2461, et 
seq.) on April 1, 1984. 
(d) If the cost or value of materials produced in 
the customs territory of the United States is included 
with respect to an eligible article which is a product 
of the Federated States of Micronesia, an amount not 
to exceed 15 percent of the appraised value of the arti-
cle at the time it is entered that is attributable to 
such United States cost or value may be applied for 
duty assessment purposes toward determining the per-
centage referred to in section 503(a)(2) of title V of 
the Trade Act of 1974. 
Section 243
Articles imported from the Federated States of Micro-
nesia which are not exempt from duty under subsections 
(a), (b), (c), and (d) of section 242 shall be subject to the 
rates of duty set forth in column numbered 1-general of the 
Harmonized Tariff Schedule of the United States 
(HTSUS). 
Section 244
(a) All products of the United States imported into 
the Federated States of Micronesia shall receive treatment 
no less favorable than that accorded like products of any 
foreign country with respect to customs duties or charges 
of a similar nature and with respect to laws and regula-
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tions relating to importation, exportation, taxation, sale, 
distribution, storage or use. 
(b) The provisions of subsection (a) shall not apply 
to advantages accorded by the Federated States of Micro-
nesia by virtue of their full membership in the Pacific Is-
land Countries Trade Agreement (PICTA), done on August 
18, 2001, to those governments listed in Article 26 of 
PICTA, as of the date the Compact, as amended, is signed. 
(c) Prior to entering into consultations on, or con-
cluding, a free trade agreement with governments not listed 
in Article 26 of PICTA, the Federated States of Micronesia 
shall consult with the United States regarding whether or 
how subsection (a) of section 244 shall be applied. 
Article V 
Finance and Taxation 
Section 251
The currency of the United States is the official circu-
lating legal tender of the Federated States of Micronesia. 
Should the Government of the Federated States of Micro-
nesia act to institute another currency, the terms of an ap-
propriate currency transitional period shall be as agreed 
with the Government of the United States. 
Section 252
The Government of the Federated States of Micronesia 
may, with respect to United States persons, tax income de-
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rived from sources within its respective jurisdiction, prop-
erty situated therein, including transfers of such property 
by gift or at death, and products consumed therein, in such 
manner as the Government of the Federated States of Micro-
nesia deems appropriate. The determination of the source 
of any income, or the situs of any property, shall for pur-
poses of this Compact be made according to the United 
States Internal Revenue Code. 
Section 253
A citizen of the Federated States of Micronesia, domi-
ciled therein, shall be exempt from estate, gift, and genera-
tion-skipping transfer taxes imposed by the Government of 
the United States, provided that such citizen of the Fed-
erated States of Micronesia is neither a citizen nor a resi-
dent of the United States. 
Section 254
(a) In determining any income tax imposed by the 
Government of the Federated States of Micronesia, the Gov-
ernment of the Federated States of Micronesia shall have 
authority to impose tax upon income derived by a resident 
of the Federated States of Micronesia from sources without 
the Federated States of Micronesia, in the same manner and 
to the same extent as the Government of the Federated 
States of Micronesia imposes tax upon income derived from 
within its own jurisdiction. If the Government of the Fed-
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erated States of Micronesia exercises such authority as pro-
vided in this subsection, any individual resident of the Fed-
erated States of Micronesia who is subject to tax by the Gov-
ernment of the United States on income which is also taxed 
by the Government of the Federated States of Micronesia 
shall be relieved of liability to the Government of the United 
States for the tax which, but for this subsection, would oth-
erwise be imposed by the Government of the United States 
on such income. However, the relief from liability to the 
United States Government referred to in the preceding sen-
tence means only relief in the form of the foreign tax credit 
(or deduction in lieu thereof) available with respect to the 
income taxes of a possession of the United States, and relief 
in the form of the exclusion under section 911 of the Inter-
nal Revenue Code of 1986. For purposes of this section, the 
term ‘‘resident of the Federated States of Micronesia’’ shall 
be deemed to include any person who was physically present 
in the Federated States of Micronesia for a period of 183 
or more days during any taxable year. 
(b) If the Government of the Federated States of Micro-
nesia subjects income to taxation substantially similar to 
that imposed by the Trust Territory Code in effect on Janu-
ary 1, 1980, such Government shall be deemed to have exer-
cised the authority described in section 254(a). 
Section 255
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For purposes of section 274(h)(3)(A) of the United 
States Internal Revenue Code of 1986, the term ‘‘North 
American Area’’ shall include the Federated States of Mi-
cronesia. 
TITLE THREE 
SECURITY AND DEFENSE RELATIONS 
Article I 
Authority and Responsibility 
Section 311
(a) The Government of the United States has full au-
thority and responsibility for security and defense matters 
in or relating to the Federated States of Micronesia. 
(b) This authority and responsibility includes: 
(1) the obligation to defend the Federated States 
of Micronesia and its people from attack or threats 
thereof as the United States and its citizens are de-
fended; 
(2) the option to foreclose access to or use of the 
Federated States of Micronesia by military personnel 
or for the military purposes of any third country; 
and 
(3) the option to establish and use military areas 
and facilities in the Federated States of Micronesia, 
subject to the terms of the separate agreements re-
ferred to in sections 321 and 323.
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(c) The Government of the United States confirms that 
it shall act in accordance with the principles of inter-
national law and the Charter of the United Nations in the 
exercise of this authority and responsibility. 
Section 312
Subject to the terms of any agreements negotiated in 
accordance with sections 321 and 323, the Government of 
the United States may conduct within the lands, waters and 
airspace of the Federated States of Micronesia the activities 
and operations necessary for the exercise of its authority 
and responsibility under this Title. 
Section 313
(a) The Government of the Federated States of Micro-
nesia shall refrain from actions that the Government of the 
United States determines, after appropriate consultation 
with that Government, to be incompatible with its authority 
and responsibility for security and defense matters in or 
relating to the Federated States of Micronesia. 
(b) The consultations referred to in this section shall 
be conducted expeditiously at senior levels of the two Gov-
ernments, and the subsequent determination by the Govern-
ment of the United States referred to in this section shall 
be made only at senior interagency levels of the Government 
of the United States.
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(c) The Government of the Federated States of Micro-
nesia shall be afforded, on an expeditious basis, an oppor-
tunity to raise its concerns with the United States Sec-
retary of State personally and the United States Secretary 
of Defense personally regarding any determination made 
in accordance with this section. 
Section 314
(a) Unless otherwise agreed, the Government of the 
United States shall not, in the Federated States of Micro-
nesia:
(1) test by detonation or dispose of any nuclear 
weapon, nor test, dispose of, or discharge any toxic 
chemical or biological weapon; or 
(2) test, dispose of, or discharge any other radio-
active, toxic chemical or biological materials in an 
amount or manner which would be hazardous to pub-
lic health or safety. 
(b) Unless otherwise agreed, other than for transit or 
overflight purposes or during time of a national emergency 
declared by the President of the United States, a state of 
war declared by the Congress of the United States or as 
necessary to defend against an actual or impending armed 
attack on the United States, the Federated States of Micro-
nesia or the Republic of the Marshall Islands, the Govern-
ment of the United States shall not store in the Federated
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States of Micronesia or the Republic of the Marshall Islands 
any toxic chemical weapon, nor any radioactive materials 
nor any toxic chemical materials intended for weapons use. 
(c) Radioactive, toxic chemical, or biological materials 
not intended for weapons use shall not be affected by section 
314(b). 
(d) No material or substance referred to in this section 
shall be stored in the Federated States of Micronesia except 
in an amount and manner which would not be hazardous 
to public health or safety. In determining what shall be an 
amount or manner which would be hazardous to public 
health or safety under this section, the Government of the 
United States shall comply with any applicable mutual 
agreement, international guidelines accepted by the Govern-
ment of the United States, and the laws of the United States 
and their implementing regulations. 
(e) Any exercise of the exemption authority set forth 
in section 161(e) shall have no effect on the obligations of 
the Government of the United States under this section or 
on the application of this subsection. 
(f) The provisions of this section shall apply in the 
areas in which the Government of the Federated States of 
Micronesia exercises jurisdiction over the living resources 
of the seabed, subsoil or water column adjacent to its coasts. 
Section 315
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The Government of the United States may invite mem-
bers of the armed forces of other countries to use military 
areas and facilities in the Federated States of Micronesia, 
in conjunction with and under the control of United States 
Armed Forces. Use by units of the armed forces of other 
countries of such military areas and facilities, other than 
for transit and overflight purposes, shall be subject to con-
sultation with and, in the case of major units, approval 
of the Government of the Federated States of Micronesia. 
Section 316
The authority and responsibility of the Government of 
the United States under this Title may not be transferred 
or otherwise assigned. 
Article II 
Defense Facilities and Operating Rights 
Section 321
(a) Specific arrangements for the establishment and 
use by the Government of the United States of military 
areas and facilities in the Federated States of Micronesia 
are set forth in separate agreements, which shall remain 
in effect in accordance with the terms of such agreements. 
(b) If, in the exercise of its authority and responsibility 
under this Title, the Government of the United States re-
quires the use of areas within the Federated States of Micro-
nesia in addition to those for which specific arrangements
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are concluded pursuant to section 321(a), it may request 
the Government of the Federated States of Micronesia to 
satisfy those requirements through leases or other arrange-
ments. The Government of the Federated States of Micro-
nesia shall sympathetically consider any such request and 
shall establish suitable procedures to discuss it with and 
provide a prompt response to the Government of the United 
States. 
(c) The Government of the United States recognizes 
and respects the scarcity and special importance of land 
in the Federated States of Micronesia. In making any re-
quests pursuant to section 321(b), the Government of the 
United States shall follow the policy of requesting the min-
imum area necessary to accomplish the required security 
and defense purpose, of requesting only the minimum inter-
est in real property necessary to support such purpose, and 
of requesting first to satisfy its requirement through public 
real property, where available, rather than through private 
real property. 
Section 322
The Government of the United States shall provide and 
maintain fixed and floating aids to navigation in the Fed-
erated States of Micronesia at least to the extent necessary 
for the exercise of its authority and responsibility under 
this Title.
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Section 323
The military operating rights of the Government of the 
United States and the legal status and contractual arrange-
ments of the United States Armed Forces, their members, 
and associated civilians, while present in the Federated 
States of Micronesia are set forth in separate agreements, 
which shall remain in effect in accordance with the terms 
of such agreements. 
Article III 
Defense Treaties and International Security Agreements 
Section 331
Subject to the terms of this Compact, as amended, and 
its related agreements, the Government of the United States, 
exclusively, has assumed and enjoys, as to the Federated 
States of Micronesia, all obligations, responsibilities, rights 
and benefits of: 
(a) Any defense treaty or other international security 
agreement applied by the Government of the United States 
as Administering Authority of the Trust Territory of the 
Pacific Islands as of November 2, 1986. 
(b) Any defense treaty or other international security 
agreement to which the Government of the United States 
is or may become a party which it determines to be applica-
ble in the Federated States of Micronesia. Such a deter-
mination by the Government of the United States shall be
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preceded by appropriate consultation with the Government 
of the Federated States of Micronesia. 
Article IV 
Service in Armed Forces of the United States 
Section 341
Any person entitled to the privileges set forth in Sec-
tion 141 (with the exception of any person described in sec-
tion 141(a)(5) who is not a citizen of the Federated States 
of Micronesia) shall be eligible to volunteer for service in 
the Armed Forces of the United States, but shall not be sub-
ject to involuntary induction into military service of the 
United States as long as such person has resided in the 
United States for a period of less than one year, provided 
that no time shall count towards this one year while a per-
son admitted to the United States under the Compact, or 
the Compact, as amended, is engaged in full-time study in 
the United States. Any person described in section 
141(a)(5) who is not a citizen of the Federated States of 
Micronesia shall be subject to United States laws relating 
to selective service. 
Section 342
The Government of the United States shall have en-
rolled, at any one time, at least one qualified student from 
the Federated States of Micronesia, as may be nominated
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by the Government of the Federated States of Micronesia, 
in each of: 
(a) The United States Coast Guard Academy pursuant 
to 14 U.S.C. 195. 
(b) The United States Merchant Marine Academy pur-
suant to 46 U.S.C. 1295(b)(6), provided that the provisions 
of 46 U.S.C. 1295b(b)(6)(C) shall not apply to the enroll-
ment of students pursuant to section 342(b) of this Com-
pact, as amended. 
Article V 
General Provisions 
Section 351
(a) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia shall con-
tinue to maintain a Joint Committee empowered to con-
sider disputes arising under the implementation of this 
Title and its related agreements. 
(b) The membership of the Joint Committee shall com-
prise selected senior officials of the two Governments. The 
senior United States military commander in the Pacific 
area shall be the senior United States member of the Joint 
Committee. For the meetings of the Joint Committee, each 
of the two Governments may designate additional or alter-
nate representatives as appropriate for the subject matter 
under consideration.
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(c) Unless otherwise mutually agreed, the Joint Com-
mittee shall meet annually at a time and place to be des-
ignated, after appropriate consultation, by the Government 
of the United States. The Joint Committee also shall meet 
promptly upon request of either of its members. The Joint 
Committee shall follow such procedures, including the estab-
lishment of functional subcommittees, as the members may 
from time to time agree. Upon notification by the Govern-
ment of the United States, the Joint Committee of the 
United States and the Federated States of Micronesia shall 
meet promptly in a combined session with the Joint Com-
mittee established and maintained by the Government of 
the United States and the Republic of the Marshall Islands 
to consider matters within the jurisdiction of the two Joint 
Committees. 
(d) Unresolved issues in the Joint Committee shall be 
referred to the Governments for resolution, and the Govern-
ment of the Federated States of Micronesia shall be afforded, 
on an expeditious basis, an opportunity to raise its con-
cerns with the United States Secretary of Defense person-
ally regarding any unresolved issue which threatens its con-
tinued association with the Government of the United 
States. 
Section 352
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In the exercise of its authority and responsibility 
under Title Three, the Government of the United States 
shall accord due respect to the authority and responsibility 
of the Government of the Federated States of Micronesia 
under Titles One, Two and Four and to the responsibility 
of the Government of the Federated States of Micronesia to 
assure the well-being of its people. 
Section 353
(a) The Government of the United States shall not in-
clude the Government of the Federated States of Micronesia 
as a named party to a formal declaration of war, without 
that Government’s consent. 
(b) Absent such consent, this Compact, as amended, is 
without prejudice, on the ground of belligerence or the exist-
ence of a state of war, to any claims for damages which 
are advanced by the citizens, nationals or Government of 
the Federated States of Micronesia, which arise out of 
armed conflict subsequent to November 3, 1986, and which 
are: 
(1) petitions to the Government of the United 
States for redress; or 
(2) claims in any manner against the govern-
ment, citizens, nationals or entities of any third 
country.
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(c) Petitions under section 353(b)(1) shall be treated 
as if they were made by citizens of the United States. 
Section 354
(a) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia are jointly 
committed to continue their security and defense relations, 
as set forth in this Title. Accordingly, it is the intention 
of the two countries that the provisions of this Title shall 
remain binding as long as this Compact, as amended, re-
mains in effect, and thereafter as mutually agreed, unless 
earlier terminated by mutual agreement pursuant to section 
441, or amended pursuant to Article III of Title Four. If 
at any time the Government of the United States, or the 
Government of the Federated States of Micronesia, acting 
unilaterally, terminates this Title, such unilateral termi-
nation shall be considered to be termination of the entire 
Compact, in which case the provisions of section 442 and 
452 (in the case of termination by the Government of the 
United States) or sections 443 and 453 (in the case of ter-
mination by the Government of the Federated States of Mi-
cronesia), with the exception of paragraph (3) of subsection 
(a) of section 452 or paragraph (3) of subsection (a) of sec-
tion 453, as the case may be, shall apply. 
(b) The Government of the United States recognizes, 
in view of the special relationship between the Government
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of the United States and the Government of the Federated 
States of Micronesia, and in view of the existence of the 
separate agreement regarding mutual security concluded 
with the Government of the Federated States of Micronesia 
pursuant to sections 321 and 323, that, even if this Title 
should terminate, any attack on the Federated States of Mi-
cronesia during the period in which such separate agree-
ment is in effect, would constitute a threat to the peace and 
security of the entire region and a danger to the United 
States. In the event of such an attack, the Government of 
the United States would take action to meet the danger to 
the United States and to the Federated States of Micronesia 
in accordance with its constitutional processes. 
(c) As reflected in Article 21(1)(b) of the Trust Fund 
Agreement, the Government of the United States and the 
Government of the Federated States of Micronesia further 
recognize, in view of the special relationship between their 
countries, that even if this Title should terminate, the Gov-
ernment of the Federated States of Micronesia shall refrain 
from actions which the Government of the United States 
determines, after appropriate consultation with that Gov-
ernment, to be incompatible with its authority and respon-
sibility for security and defense matters in or relating to 
the Federated States of Micronesia or the Republic of the 
Marshall Islands.
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TITLE FOUR 
GENERAL PROVISIONS 
Article I 
Approval and Effective Date 
Section 411
Pursuant to section 432 of the Compact and subject 
to subsection (e) of section 461 of the Compact, as amended, 
the Compact, as amended, shall come into effect upon mu-
tual agreement between the Government of the United 
States and the Government of the Federated States of Micro-
nesia subsequent to completion of the following: 
(a) Approval by the Government of the Federated 
States of Micronesia in accordance with its constitu-
tional processes. 
(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 Federated 
States of Micronesia and that Government shall confer 
promptly at the request of the Government of the United 
States on matters relating to the provisions of this Compact, 
as amended, or of its related agreements.
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Section 422
In the event the Government of the United States or 
the Government of the Federated States of Micronesia, after 
conferring pursuant to section 421, determines that there 
is a dispute and gives written notice thereof, the two Gov-
ernments shall make a good faith effort to resolve the dispute 
between themselves. 
Section 423
If a dispute between the Government of the United 
States and the Government of the Federated States of Micro-
nesia cannot be resolved within 90 days of written notifica-
tion 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 deci-
sion which shall be binding upon the two parties to the dis-
pute 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
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the two Governments which is a party to the dispute 
shall appoint one member to the Arbitration Board. 
If either party to the dispute does not fulfill the ap-
pointment requirements of this section within 30 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 par-
ties 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 Chair-
man, 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 agreements. 
(c) Each member of the Arbitration Board shall 
have one vote. Each decision of the Arbitration Board 
shall be reached by majority vote.
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(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 conclusions of law and its members may issue 
dissenting or individual opinions. Except as may be other-
wise 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 Gov-
ernment of the Federated States of Micronesia. 
Article III 
Amendment 
Section 431
The provisions of this Compact, as amended, may be 
further amended by mutual agreement of the Government 
of the United States and the Government of the Federated
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States of Micronesia, in accordance with their respective 
constitutional processes. 
Article IV 
Termination 
Section 441
This Compact, as amended, may be terminated by mu-
tual agreement of the Government of the Federated States 
of Micronesia and the Government of the United States, in 
accordance with their respective constitutional processes. 
Such mutual termination of this Compact, as amended, 
shall be without prejudice to the continued application of 
section 451 of this Compact, as amended, and the provisions 
of the Compact, as amended, set forth therein. 
Section 442
Subject to section 452, this Compact, as amended, may 
be terminated by the Government of the United States in 
accordance with its constitutional processes. Such termi-
nation shall be effective on the date specified in the notice 
of termination by the Government of the United States but 
not earlier than six months following delivery of such no-
tice. The time specified in the notice of termination may 
be extended. Such termination of this Compact, as amended, 
shall be without prejudice to the continued application of 
section 452 of this Compact, as amended, and the provisions 
of the Compact, as amended, set forth therein.
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Section 443
This Compact, as amended, shall be terminated by the 
Government of the Federated States of Micronesia, pursuant 
to its constitutional processes, subject to section 453 if the 
people represented by that Government vote in a plebiscite 
to terminate the Compact, as amended, or by another proc-
ess permitted by the FSM constitution and mutually agreed 
between the Governments of the United States and the Fed-
erated States of Micronesia. The Government of the Fed-
erated States of Micronesia shall notify the Government of 
the United States of its intention to call such a plebiscite, 
or to pursue another mutually agreed and constitutional 
process, which plebiscite or process shall take place not ear-
lier than three months after delivery of such notice. The 
plebiscite or other process shall be administered by the Gov-
ernment of the Federated States of Micronesia in accord-
ance with its constitutional and legislative processes. If a 
majority of the valid ballots cast in the plebiscite or other 
process favors termination, the Government of the Federated 
States of Micronesia shall, upon certification of the results 
of the plebiscite or other process, give notice of termination 
to the Government of the United States, such termination 
to be effective on the date specified in such notice but not 
earlier than three months following the date of delivery of
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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 con-
sistent with those subsections, if termination occurs pursu-
ant to section 441 prior to the twentieth anniversary of the 
effective date of this Compact, as amended, the United 
States shall continue to make contributions to the Trust 
Fund described in section 215 of this Compact, as amended. 
(c) In view of the special relationship of the United 
States and the Federated States of Micronesia described in 
subsection (b) of this section, if termination occurs pursu-
ant to section 441 following the twentieth anniversary of 
the effective date of this Compact, as amended, the Fed-
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erated States of Micronesia shall be entitled to receive pro-
ceeds from the Trust Fund described in section 215 of this 
Compact, as amended, in the manner described in those 
provisions and the Trust Fund Agreement governing the 
distribution of such proceeds. 
Section 452
(a) Should termination occur pursuant to section 442 
prior to the twentieth anniversary of the effective date of 
this Compact, as amended, the following provisions of this 
Compact, as amended, shall remain in full force and effect 
until the twentieth anniversary of the effective date of this 
Compact, as amended, and thereafter as mutually agreed: 
(1) Article VI and sections 172, 173, 176 and 
177 of Title One; 
(2) Sections 232 and 234 of Title Two; 
(3) Title Three; and 
(4) Articles II, III, V and VI of Title Four. 
(b) Should termination occur pursuant to section 442 
before the twentieth anniversary of the effective date of the 
Compact, as amended: 
(1) Except as provided in paragraph (2) of this 
subsection and subsection (c) of this section, economic 
and other assistance by the United States shall con-
tinue only if and as mutually agreed by the Govern-
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ments of the United States and the Federated States 
of Micronesia. 
(2) In view of the special relationship of the 
United States and the Federated States of Micronesia, 
as reflected in subsections (b) and (c) of section 354 
of this Compact, as amended, and the separate agree-
ment regarding mutual security, and the Trust Fund 
Agreement, the United States shall continue to make 
contributions to the Trust Fund described in section 
215 of this Compact, as amended, in the manner de-
scribed in the Trust Fund Agreement. 
(c) In view of the special relationship of the United 
States and the Federated States of Micronesia, as reflected 
in subsections 354(b) and (c) of this Compact, as amended, 
and the separate agreement regarding mutual security, and 
the Trust Fund Agreement, if termination occurs pursuant 
to section 442 following the twentieth anniversary of the 
effective date of this Compact, as amended, the Federated 
States of Micronesia shall continue to be eligible to receive 
proceeds from the Trust Fund described in section 215 of 
this Compact, as amended, in the manner described in those 
provisions and the Trust Fund Agreement. 
Section 453
(a) Should termination occur pursuant to section 443 
prior to the twentieth anniversary of the effective date of
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this Compact, as amended, the following provisions of this 
Compact, as amended, shall remain in full force and effect 
until the twentieth anniversary of the effective date of this 
Compact, as amended, and thereafter as mutually agreed: 
(1) Article VI and sections 172, 173, 176 and 
177 of Title One; 
(2) Sections 232 and 234 of Title Two; 
(3) Title Three; and 
(4) Articles II, III, V and VI of Title Four. 
(b) Upon receipt of notice of termination pursuant to 
section 443, the Government of the United States and the 
Government of the Federated States of Micronesia shall 
promptly consult with regard to their future relationship. 
Except as provided in subsection (c) and (d) of this section, 
these consultations shall determine the level of economic and 
other assistance, if any, which the Government of the 
United States shall provide to the Government of the Fed-
erated States of Micronesia 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 Federated States of Micronesia, as reflected 
in subsections 354(b) and (c) of this Compact, as amended, 
and the separate agreement regarding mutual security, and
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the Trust Fund Agreement, if termination occurs pursuant 
to section 443 prior to the twentieth anniversary of the effec-
tive date of this Compact, as amended, the United States 
shall continue to make contributions to the Trust Fund de-
scribed in section 215 of this Compact, as amended, in the 
manner described in the Trust Fund Agreement. 
(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 Agreement, 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 reaf-
firms its continuing interest in promoting the eco-
nomic advancement and budgetary self-reliance of the 
people of the Federated States of Micronesia.
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(b) The separate agreements referred to in Article 
II of Title Three shall remain in effect in accordance 
with their terms. 
Article VI 
Definition of Terms 
Section 461
For the purpose of this Compact, as amended, only, 
and without prejudice to the views of the Government of 
the United States or the Government of the Federated States 
of Micronesia as to the nature and extent of the jurisdiction 
of either of them under international law, the following 
terms shall have the following meanings: 
(a) ‘‘Trust Territory of the Pacific Islands’’ 
means the area established in the Trusteeship Agree-
ment consisting of the former administrative districts 
of Kosrae, Yap, Ponape, the Marshall Islands and 
Truk as described in Title One, Trust Territory Code, 
section 1, in force on January 1, 1979. This term 
does not include the area of Palau or the Northern 
Mariana Islands. 
(b) ‘‘Trusteeship Agreement’’ means the agree-
ment setting forth the terms of trusteeship for the 
Trust Territory of the Pacific Islands, approved by 
the Security Council of the United Nations April 2, 
1947, and by the United States July 18, 1947, en-
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tered into force July 18, 1947, 61 Stat. 3301, T.I.A.S. 
1665, 8 U.N.T.S. 189. 
(c) ‘‘The Federated States of Micronesia’’ and 
‘‘the Republic of the Marshall Islands’’ are used in a 
geographic sense and include the land and water 
areas to the outer limits of the territorial sea and the 
air space above such areas as now or hereafter recog-
nized by the Government of the United States. 
(d) ‘‘Compact’’ means the Compact of Free Asso-
ciation Between the United States and the Federated 
States of Micronesia and the Marshall Islands, that 
was approved by the United States Congress in sec-
tion 201 of Public Law 99–239 (Jan. 14, 1986) and 
went into effect with respect to the Federated States 
of Micronesia on November 3, 1986. 
(e) ‘‘Compact, as amended’’ means the Compact 
of Free Association Between the United States and 
the Federated States of Micronesia, as amended. The 
effective date of the Compact, as amended, shall be on 
a date to be determined by the President of the United 
States, and agreed to by the Government of the Fed-
erated States of Micronesia, following formal ap-
proval of the Compact, as amended, in accordance 
with section 411 of this Compact, as amended.
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(f) ‘‘Government of the Federated States of Mi-
cronesia’’ means the Government established and or-
ganized by the Constitution of the Federated States of 
Micronesia including all the political subdivisions 
and entities comprising that Government. 
(g) ‘‘Government of the Republic of the Marshall 
Islands’’ means the Government established and orga-
nized by the Constitution of the Republic of the Mar-
shall Islands including all the political subdivisions 
and entities comprising that Government. 
(h) The following terms shall be defined con-
sistent with the 1998 Edition of the Radio Regula-
tions of the International Telecommunications Union 
as follows: 
(1) ‘‘Radiocommunication’’ means tele-
communication by means of radio waves. 
(2) ‘‘Station’’ means one or more transmit-
ters or receivers or a combination of transmitters 
and receivers, including the accessory equipment, 
necessary at one location for carrying on a 
radiocommunication service, or the radio astron-
omy service. 
(3) 
‘‘Broadcasting 
Service’’ 
means 
a 
radiocommunication service in which the trans-
missions are intended for direct reception by the
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general public. This service may include sound 
transmissions, television transmissions or other 
types of transmission. 
(4) ‘‘Broadcasting Station’’ means a station 
in the broadcasting service. 
(5) ‘‘Assignment (of a radio frequency or 
radio frequency channel)’’ means an authoriza-
tion given by an administration for a radio sta-
tion to use a radio frequency or radio frequency 
channel under specified conditions. 
(6) ‘‘Telecommunication’’ means any trans-
mission, emission or reception of signs, signals, 
writings, images and sounds or intelligence of 
any nature by wire, radio, optical or other elec-
tromagnetic systems. 
(i) ‘‘Military Areas and Facilities’’ means those 
areas and facilities in the Federated States of Micro-
nesia reserved or acquired by the Government of the 
Federated States of Micronesia for use by the Govern-
ment of the United States, as set forth in the separate 
agreements referred to in section 321. 
(j) ‘‘Tariff Schedules of the United States’’ 
means the Tariff Schedules of the United States as 
amended from time to time and as promulgated pur-
suant to United States law and includes the Tariff
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Schedules of the United States Annotated (TSUSA), 
as amended. 
(k) ‘‘Vienna Convention on Diplomatic Rela-
tions’’ means the Vienna Convention on Diplomatic 
Relations, done April 18, 1961, 23 U.S.T. 3227, 
T.I.A.S. 7502, 500 U.N.T.S. 95. 
Section 462
(a) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia previously 
have concluded agreements pursuant to the Compact, which 
shall remain in effect and shall survive in accordance with 
their terms, as follows: 
(1) Agreement Concluded Pursuant to Section 
234 of the Compact; 
(2) Agreement Between the Government of the 
United States and the Government of the Federated 
States of Micronesia Regarding Friendship, Coopera-
tion and Mutual Security Concluded Pursuant to 
Sections 321 and 323 of the Compact of Free Associa-
tion; and 
(3) Agreement between the Government of the 
United States of America and the Federated States of 
Micronesia Regarding Aspects of the Marine Sov-
ereignty and Jurisdiction of the Federated States of 
Micronesia.
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(b) The Government of the United States and the Gov-
ernment of the Federated States of Micronesia shall con-
clude prior to the date of submission of this Compact, as 
amended, to the legislatures of the two countries, the fol-
lowing related agreements which shall come into effect on 
the effective date of this Compact, as amended, and shall 
survive in accordance with their terms, as follows: 
(1) Federal Programs and Services Agreement 
Between the Government of the United States of 
America and the Government of the Federated States 
of Micronesia Concluded Pursuant to Article III of 
Title One, Article II of Title Two (including Section 
222), and Section 231 of the Compact of Free Asso-
ciation, as amended which includes: 
(i) Postal Services and Related Programs; 
(ii) Weather Services and Related Pro-
grams; 
(iii) Civil Aviation Safety Service and Re-
lated Programs; 
(iv) Civil Aviation Economic Services and 
Related Programs; 
(v) United States Disaster Preparedness 
and Response Services and Related Programs; 
(vi) Federal Deposit Insurance Corporation 
Services and Related Programs; and
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(vii) Telecommunications Services and Re-
lated Programs. 
(2) Agreement Between the Government of the 
United States of America and the Government of the 
Federated States of Micronesia on Extradition, Mu-
tual Assistance in Law Enforcement Matters and 
Penal Sanctions Concluded Pursuant to Section 
175(a) of the Compact of Free Association, as amend-
ed; 
(3) Agreement Between the Government of the 
United States of America and the Government of the 
Federated States of Micronesia on Labor Recruitment 
Concluded Pursuant to Section 175(b) of the Compact 
of Free Association, as amended; 
(4) Agreement Concerning Procedures for the Im-
plementation of United States Economic Assistance 
Provided in the Compact of Free Association, as 
Amended, of Free Association Between the Govern-
ment of the United States of America and Govern-
ment of the Federated States of Micronesia; 
(5) Agreement Between the Government of the 
United States of America and the Government of the 
Federated States of Micronesia Implementing Section 
215 and Section 216 of the Compact, as Amended, 
Regarding a Trust Fund;