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Article III 
Communications 
Section 131
(a) The Government of the Republic of the 
Marshall Islands has full authority and re-
sponsibility to regulate its domestic and for-
eign communications, and the Government of 
the United States shall provide communica-
tions assistance as mutually agreed. 
(b) The Government of the Republic of the 
Marshall Islands has elected to undertake all 
functions previously performed by the Gov-
ernment of the United States with respect to 
domestic and foreign communications, except 
for those functions set forth in a separate 
agreement entered into pursuant to this sec-
tion of the Compact, as amended. 
Section 132
The Government of the Republic of the 
Marshall Islands shall permit the Government 
of the United States to operate telecommuni-
cations services in the Republic of the Mar-
shall Islands to the extent necessary to fulfill 
the obligations of the Government of the 
United States under this Compact, as amend-
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ed, in accordance with the terms of separate 
agreements entered into pursuant to this sec-
tion of the Compact, as amended. 
Article IV 
Immigration 
Section 141
(a) In furtherance of the special and 
unique relationship that exists between the 
United States and the Republic of the Mar-
shall Islands, under the Compact, as amend-
ed, any person in the following categories 
may be admitted to lawfully engage in occu-
pations, and establish residence as a non-
immigrant in the United States and its terri-
tories and possessions (the ‘‘United States’’) 
without 
regard 
to 
paragraphs 
(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 October 21, 1986, 
was a citizen of the Trust Territory of the 
Pacific Islands, as defined in Title 53 of 
the Trust Territory Code in force on Jan-
uary 1, 1979, and has become and re-
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mains a citizen of the Republic of the 
Marshall Islands; 
(2) a person who acquires the citizen-
ship of the Republic of the Marshall Is-
lands at birth, on or after the effective 
date of the Constitution of the Republic 
of the Marshall Islands; 
(3) an immediate relative of a person 
referred to in paragraphs (1) or (2) of this 
section, provided that such immediate 
relative is a naturalized citizen of the Re-
public of the Marshall Islands who has 
been an actual resident there for not less 
than five years after attaining such natu-
ralization and who holds a certificate of 
actual residence, and further provided, 
that, in the case of a spouse, such spouse 
has been married to the person referred 
to in paragraph (1) or (2) of this section 
for at least five years, and further pro-
vided, that the Government of the United 
States is satisfied that such naturalized 
citizen meets the requirement of sub-
section (b) of section 104 of Public Law 
99–239 as it was in effect on the day prior
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to the effective date of this Compact, as 
amended; 
(4) a naturalized citizen of the Repub-
lic of the Marshall Islands who was an ac-
tual resident there for not less than five 
years after attaining such naturalization 
and who satisfied these requirements as 
of April 30, 2003, who continues to be an 
actual resident and holds a certificate of 
actual residence, and whose name is in-
cluded in a list furnished by the Govern-
ment of the Republic of the Marshall Is-
lands to the Government of the United 
States no later than the effective date of 
the Compact, as amended, in form and 
content acceptable to the Government of 
the United States, provided, that the Gov-
ernment 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 ef-
fect on the day prior to the effective date 
of this Compact, as amended; or 
(5) an immediate relative of a citizen 
of the Republic of the Marshall Islands,
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regardless of the immediate relative’s 
country of citizenship or period of resi-
dence in the Republic of the Marshall Is-
lands, if the citizen of the Republic of the 
Marshall Islands is serving on active duty 
in any branch of the United States Armed 
Forces, or in the active reserves. 
(b) Notwithstanding subsection (a) of this 
section, a person who is coming to the United 
States pursuant to an adoption outside the 
United States, or for the purpose of adoption 
in the United States, is ineligible for admis-
sion under the Compact and the Compact, as 
amended. This subsection shall apply to any 
person who is or was an applicant for admis-
sion 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, re-
gardless of the date such proceedings were 
commenced. This subsection shall have no ef-
fect on the ability of the Government of the 
United States or any United States State or 
local government to commence or otherwise 
take any action against any person or entity
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who has violated any law relating to the adop-
tion of any person. 
(c) Notwithstanding subsection (a) of this 
section, no person who has been or is granted 
citizenship in the Republic of the Marshall Is-
lands, or has been or is issued a Republic of 
the Marshall Islands passport pursuant to any 
investment, passport sale, or similar program 
has been or shall be eligible for admission to 
the United States under the Compact or the 
Compact, as amended. 
(d) A person admitted to the United States 
under the Compact, or the Compact, as 
amended, shall be considered to have the per-
mission of the Government of the United 
States to accept employment in the United 
States. An unexpired Republic of the Marshall 
Islands passport with unexpired documenta-
tion issued by the Government of the United 
States evidencing admission under the Com-
pact or the Compact, as amended, shall be 
considered to be documentation establishing 
identity and employment authorization under 
section 274A(b)(1)(B) of the Immigration and 
Nationality 
Act, 
as 
amended, 
U.S.C.
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1324a(b)(1)(B). The Government of the United 
States will take reasonable and appropriate 
steps to implement and publicize this provi-
sion, and the Government of the Republic of 
the Marshall Islands will also take reasonable 
and appropriate steps to publicize this provi-
sion. 
(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 re-
gard to intent, as provided in section 
101(a)(33) of the Immigration and Nation-
ality 
Act, 
as 
amended, 
U.S.C. 
1101(a)(33), and variations of the term 
‘‘residence,’’ including ‘‘resident’’ and ‘‘re-
side,’’ shall be similarly construed; 
(2) the term ‘‘actual residence’’ means 
physical presence in the Republic of the 
Marshall Islands during eighty-five per-
cent of the five-year period of residency 
required by section 141(a)(3) and (4); 
(3) the term ‘‘certificate of actual resi-
dence’’ means a certificate issued to a
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naturalized citizen by the Government of 
the Republic of the Marshall Islands stat-
ing 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 de-
fined 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 un-
married daughter less than 21 years of 
age. 
(f) The Immigration and Nationality Act, 
as amended, shall apply to any person admit-
ted or seeking admission to the United States 
(other than a United States possession or ter-
ritory where such Act does not apply) under 
the Compact or the Compact, as amended, 
and nothing in the Compact or the Compact, 
as amended, shall be construed to limit, pre-
clude, or modify the applicability of, with re-
spect to such person: 
(1) any ground of inadmissibility or 
deportability under such Act (except sec-
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tions 212(a)(5) and 212(a)(7)(B)(i)(II) of 
such Act, as provided in subsection (a) of 
this section), and any defense thereto, 
provided that, section 237(a)(5) of such 
Act shall be construed and applied as if it 
reads as follows: ‘‘any alien who has been 
admitted under the Compact, or the Com-
pact, 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 ad-
mission as a nonimmigrant shall be for 
such time and under such conditions as 
the Government of the United States may 
by regulations prescribe; 
(3) except for the treatment of certain 
documentation for purposes of section 
274A(b)(1)(B) of such Act as provided by 
subsection (d) of this section of the Com-
pact, as amended, any requirement under 
section 274A, including but not limited to 
section 274A(b)(1)(E);
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(4) section 643 of the Illegal Immigra-
tion Reform and Immigrant Responsi-
bility Act of 1996, Public Law 104–208, 
and actions taken pursuant to section 
643; and 
(5) the authority of the Government 
of the United States otherwise to admin-
ister and enforce the Immigration and 
Nationality Act, as amended, or other 
United States law. 
(g) Any authority possessed by the Gov-
ernment of the United States under this sec-
tion of the Compact or the Compact, as 
amended, may also be exercised by the Gov-
ernment of a territory or possession of the 
United States where the Immigration and Na-
tionality Act, as amended, does not apply, to 
the extent such exercise of authority is lawful 
under a statute or regulation of such territory 
or possession that is authorized by the laws 
of the United States. 
(h) Subsection (a) of this section does not 
confer on a citizen of the Republic of the Mar-
shall Islands the right to establish the resi-
dence necessary for naturalization under the
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•HJ 63 RH 
dence. Should the Republic of the Marshall Is-
lands citizen spouse predecease the United 
States citizen spouse during the marriage, the 
Government of the Republic of the Marshall 
Islands shall allow the United States citizen 
spouse to continue to reside in the Republic 
of the Marshall Islands. 
(b) In enacting any laws or imposing any 
requirements with respect to citizens and na-
tionals of the United States entering the Re-
public of the Marshall Islands under sub-
section (a) of this section, including any 
grounds of inadmissibility or deportability, 
the Government of the Republic of the Mar-
shall Islands shall accord to such citizens and 
nationals of the United States treatment no 
less favorable than that accorded to citizens 
of other countries. 
(c) Consistent with subsection (a) of this 
section, with respect to citizens and nationals 
of the United States seeking to engage in em-
ployment or invest in the Republic of the Mar-
shall Islands, the Government of the Republic 
of the Marshall Islands shall adopt immigra-
tion-related procedures no less favorable than
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those adopted by the Government of the 
United States with respect to citizens of the 
Republic of the Marshall Islands seeking em-
ployment in the United States. 
Section 143
Any person who relinquishes, or other-
wise loses, his United States nationality or 
citizenship, or his Republic of the Marshall Is-
lands citizenship, shall be ineligible to receive 
the privileges set forth in sections 141 and 
142. Any such person may apply for admission 
to the United States or the Republic of the 
Marshall Islands, as the case may be, in ac-
cordance with any other applicable laws of 
the United States or the Republic of the Mar-
shall Islands relating to immigration of aliens 
from other countries. The laws of the Repub-
lic of the Marshall Islands or the United 
States, as the case may be, shall dictate the 
terms and conditions of any such person’s 
stay. 
Article V 
Representation 
Section 151
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Relations between the Government of the 
United States and the Government of the Re-
public of the Marshall Islands shall be con-
ducted in accordance with the Vienna Con-
vention on Diplomatic Relations. In addition 
to diplomatic missions and representation, 
the Governments may establish and maintain 
other offices and designate other representa-
tives on terms and in locations as may be mu-
tually agreed. 
Section 152
(a) Any citizen or national of the United 
States who, without authority of the United 
States, acts as the agent of the Government of 
the Republic of the Marshall Islands with re-
gard 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 require-
ments shall subject such citizen or national to 
the same penalties and provisions of law as 
apply in the case of the failure of such an 
agent of a foreign principal to comply with
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such requirements. For purposes of the For-
eign Agents Registration Act of 1938, the Re-
public of the Marshall Islands 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 Re-
public of the Marshall Islands with respect to 
whom the Government of the Republic of the 
Marshall Islands from time to time certifies to 
the Government of the United States that 
such citizen or national is an employee of the 
Republic of the Marshall Islands whose prin-
cipal duties are other than those matters 
specified in the Foreign Agents Registration 
Act of 1938, as amended, that apply with re-
spect to an agent of a foreign principal. The 
agency or officer of the United States receiv-
ing such certifications shall cause them to be 
filed with the Attorney General, who shall 
maintain a publicly available list of the per-
sons so certified. 
Article VI 
Environmental Protection 
Section 161
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The Governments of the United States 
and the Republic of the Marshall Islands de-
clare that it is their policy to promote efforts 
to prevent or eliminate damage to the envi-
ronment and biosphere and to enrich under-
standing of the natural resources of the Re-
public of the Marshall Islands. In order to 
carry out this policy, the Government of the 
United States and the Government of the Re-
public of the Marshall Islands agree to the fol-
lowing mutual and reciprocal undertakings: 
(a) The Government of the United 
States: 
(1) shall, for its activities con-
trolled by the U.S. Army at Kwajalein 
Atoll and in the Mid-Atoll Corridor 
and for U.S. Army Kwajalein Atoll ac-
tivities in the Republic of the Mar-
shall Islands, continue to apply the 
Environmental Standards and Proce-
dures for United States Army Kwaja-
lein Atoll Activities in the Republic of 
the Marshall Islands, unless and until 
those Standards or Procedures are 
modified by mutual agreement of the
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•HJ 63 RH 
Governments of the United States 
and the Republic of the Marshall Is-
lands; 
(2) shall apply the National Envi-
ronmental Policy Act of 1969, 83 Stat. 
852, 42 U.S.C. 4321 et seq., to its ac-
tivities under the Compact, as amend-
ed, and its related agreements as if 
the Republic of the Marshall Islands 
were the United States; 
(3) in the conduct of any activity 
not described in section 161(a)(1) re-
quiring the preparation of an Envi-
ronmental Impact Statement under 
section 161(a)(2), shall comply with 
standards substantively similar to 
those required by the following laws 
of the United States, taking into ac-
count the particular environment of 
the Republic of the Marshall Islands; 
the Endangered Species Act of 1973, 
as amended, 16 U.S.C. 1531 et seq.; the 
Clean Air Act, as amended, 42 U.S.C. 
7401 et seq.; the Clean Water Act 
(Federal 
Water 
Pollution 
Control
503
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Act), as amended, 33 U.S.C. 1251 et 
seq.; Title I of the Marine Protection, 
Research and Sanctuaries Act of 1972 
(the Ocean Dumping Act), 33 U.S.C. 
1411 et seq.; the Toxic Substances 
Control Act, as amended, 15 U.S.C. 
2601 et seq.; the Solid Waste Disposal 
Act, as amended, 42 U.S.C. 6901 et 
seq.; and such other environmental 
protection laws of the United States 
and the Republic of the Marshall Is-
lands as may be agreed from time to 
time with the Government of the Re-
public of the Marshall Islands; 
(4) shall, prior to conducting any 
activity 
not 
described 
in 
section 
161(a)(1) requiring the preparation of 
an Environmental Impact Statement 
under section 161(a)(2), develop, as 
agreed with the Government of the 
Republic of the Marshall Islands, 
written environmental standards and 
procedures to implement the sub-
stantive provisions of the laws made 
applicable to U.S. Government activi-
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•HJ 63 RH 
ties in the Republic of the Marshall 
Islands, pursuant to section 161(a)(3). 
(b) The Government of the Republic 
of the Marshall Islands shall continue to 
develop and implement standards and 
procedures to protect its environment. As 
a reciprocal obligation to the under-
takings of the Government of the United 
States under this Article, the Republic of 
the Marshall Islands, taking into account 
its particular environment, shall con-
tinue to develop and implement stand-
ards for environmental protection sub-
stantively similar to those required of the 
Government of the United States by sec-
tion 161(a)(3) prior to its conducting ac-
tivities in the Republic of the Marshall Is-
lands, substantively equivalent to activi-
ties conducted there by the Government 
of the United States and, as a further re-
ciprocal obligation, shall enforce those 
standards.
(c) 
Section 
161(a), 
including 
any 
standard or procedure applicable there-
under, and section 161(b) may be modi-
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fied or superseded in whole or in part by 
agreement of the Government of the 
United States and the Government of the 
Republic of the Marshall Islands. 
(d) In the event that an Environ-
mental Impact Statement is no longer re-
quired under the laws of the United 
States for major Federal actions signifi-
cantly affecting the quality of the human 
environment, the regulatory regime es-
tablished under sections 161(a)(3) and 
161(a)(4) shall continue to apply to such 
activities of the Government of the 
United States until amended by mutual 
agreement. 
(e) The President of the United States 
may exempt any of the activities of the 
Government of the United States under 
this Compact, as amended, and its related 
agreements 
from 
any 
environmental 
standard or procedure which may be ap-
plicable under sections 161(a)(3) and 
161(a)(4) if the President determines it to 
be in the paramount interest of the Gov-
ernment of the United States to do so,
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•HJ 63 RH 
consistent with Title Three of this Com-
pact, as amended, and the obligations of 
the Government of the United States 
under international law. Prior to any de-
cision pursuant to this subsection, the 
views of the Government of the Republic 
of the Marshall Islands shall be sought 
and considered to the extent practicable. 
If the President grants such an exemp-
tion, to the extent practicable, a report 
with his reasons for granting such ex-
emption shall be given promptly to the 
Government of the Republic of the Mar-
shall Islands. 
(f) The laws of the United States re-
ferred to in section 161(a)(3) shall apply 
to the activities of the Government of the 
United States under this Compact, as 
amended, and its related agreements only 
to the extent provided for in this section. 
Section 162
The Government of the Republic of the 
Marshall Islands may bring an action for judi-
cial review of any administrative agency ac-
tion or any activity of the Government of the
507
•HJ 63 RH 
United States pursuant to section 161(a) for 
enforcement of the obligations of the Govern-
ment of the United States arising thereunder. 
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 over such action or activity, and 
over actions brought under section 172(b) 
which relate to the activities of the Govern-
ment of the United States and its officers and 
employees, governed by section 161, provided 
that: 
(a) Such actions may only be civil ac-
tions for any appropriate civil relief 
other than punitive damages against the 
Government of the United States or, 
where required by law, its officers in 
their official capacity; no criminal ac-
tions may arise under this section. 
(b) Actions brought pursuant to this 
section may be initiated only by the Gov-
ernment of the Republic of the Marshall 
Islands. 
(c) 
Administrative 
agency 
actions 
arising under section 161 shall be re-
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•HJ 63 RH 
viewed pursuant to the standard of judi-
cial review set forth in 5 U.S.C. 706. 
(d) The United States District Court 
for the District of Hawaii and the United 
States District Court for the District of 
Columbia shall have jurisdiction to issue 
all necessary processes, and the Govern-
ment of the United States agrees to sub-
mit itself to the jurisdiction of the court; 
decisions of the United States District 
Court shall be reviewable in the United 
States Court of Appeals for the Ninth Cir-
cuit or the United States Court of Ap-
peals for the District of Columbia, respec-
tively, or in the United States Supreme 
Court as provided by the laws of the 
United States. 
(e) The judicial remedy provided for 
in this section shall be the exclusive rem-
edy for the judicial review or enforce-
ment of the obligations of the Govern-
ment of the United States under this Arti-
cle and actions brought under section 
172(b), which relate to the activities of 
the Government of the United States and
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•HJ 63 RH 
its officers and employees governed by 
section 161. 
(f) In actions pursuant to this section, 
the Government of the Republic of the 
Marshall Islands shall be treated as if it 
were a United States citizen. 
Section 163
(a) For the purpose of gathering data nec-
essary to study the environmental effects of 
activities of the Government of the United 
States subject to the requirements of this Ar-
ticle, the Government of the Republic of the 
Marshall Islands shall be granted access to fa-
cilities operated by the Government of the 
United States in the Republic of the Marshall 
Islands, to the extent necessary for this pur-
pose, except to the extent such access would 
unreasonably interfere with the exercise of 
the authority and responsibility of the Gov-
ernment of the United States under Title 
Three. 
(b) The Government of the United States, 
in turn, shall be granted access to the Repub-
lic of the Marshall Islands for the purpose of 
gathering data necessary to discharge its obli-
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gations under this Article, except to the ex-
tent such access would unreasonably inter-
fere with the exercise of the authority and re-
sponsibility of the Government of the Repub-
lic of the Marshall Islands under Title One, 
and to the extent necessary for this purpose 
shall be granted access to documents and 
other information to the same extent similar 
access is provided the Government of the Re-
public of the Marshall Islands under the Free-
dom of Information Act, 5 U.S.C. 552. 
(c) The Government of the Republic of the 
Marshall Islands shall not impede efforts by 
the Government of the United States to com-
ply with applicable standards and proce-
dures. 
Article VII 
General Legal Provisions 
Section 171
Except as provided in this Compact, as 
amended, or its related agreements, the appli-
cation of the laws of the United States to the 
Trust Territory of the Pacific Islands by vir-
tue of the Trusteeship Agreement ceased with
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respect to the Marshall Islands on October 21, 
1986, the date the Compact went into effect.
Section 172
(a) Every citizen of the Republic of the 
Marshall Islands who is not a resident of the 
United States shall enjoy the rights and rem-
edies under the laws of the United States en-
joyed by any non-resident alien. 
(b) The Government of the Republic of the 
Marshall Islands and every citizen of the Re-
public of the Marshall Islands shall be consid-
ered to be a ‘‘person’’ within the meaning of 
the Freedom of Information Act, 5 U.S.C. 552, 
and of the judicial review provisions of the 
Administrative Procedure Act, 5 U.S.C. 701-
706, except that only the Government of the 
Republic of the Marshall Islands may seek ju-
dicial review under the Administrative Proce-
dure Act or judicial enforcement under the 
Freedom of Information Act when such judi-
cial review or enforcement relates to the ac-
tivities of the Government of the United 
States governed by sections 161 and 162. 
Section 173
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The Governments of the United States 
and the Republic of the Marshall Islands 
agree to adopt and enforce such measures, 
consistent with this Compact, as amended, 
and its related agreements, as may be nec-
essary to protect the personnel, property, in-
stallations, services, programs and official ar-
chives and documents maintained by the Gov-
ernment of the United States in the Republic 
of the Marshall Islands pursuant to this Com-
pact, as amended, and its related agreements 
and by the Government of the Republic of the 
Marshall Islands in the United States pursu-
ant to this Compact, Compact, as amended, 
and its related agreements. 
Section 174
Except as otherwise provided in this Com-
pact, as amended, and its related agreements: 
(a) The Government of the Republic 
of the Marshall Islands, and its agencies 
and officials, shall be immune from the 
jurisdiction of the court of the United 
States, and the Government of the United 
States, and its agencies and officials, 
shall be immune from the jurisdiction of
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•HJ 63 RH 
the courts of the Republic of the Marshall 
Islands. 
(b) The Government of the United 
States accepts responsibility for and shall 
pay: 
(1) any unpaid money judgment 
rendered by the High Court of the 
Trust Territory of the Pacific Islands 
against the Government of the United 
States with regard to any cause of ac-
tion arising as a result of acts or 
omissions of the Government of the 
Trust Territory of the Pacific Islands 
or the Government of the United 
States prior to October 21, 1986; 
(2) any claim settled by the claim-
ant and the Government of the Trust 
Territory of the Pacific Islands but 
not paid as of the October 21, 1986; 
and 
(3) settlement of any administra-
tive claim or of any action before a 
court of the Trust Territory of the Pa-
cific Islands or the Government of the 
United States, arising as a result of
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•HJ 63 RH 
acts or omissions of the Government 
of the Trust Territory of the Pacific 
Islands or the Government of the 
United States. 
(c) Any claim not referred to in sec-
tion 174(b) and arising from an act or 
omission of the Government of the Trust 
Territory of the Pacific Islands or the 
Government of the United States prior to 
the effective date of the Compact shall be 
adjudicated in the same manner as a 
claim adjudicated according to section 
174(d). In any claim against the Govern-
ment of the Trust Territory of the Pacific 
Islands, the Government of the United 
States shall stand in the place of the Gov-
ernment of the Trust Territory of the Pa-
cific Islands. A judgment on any claim re-
ferred to in section 174(b) or this sub-
section, not otherwise satisfied by the 
Government of the United States, may be 
presented for certification to the United 
States Court of Appeals for the Federal 
Circuit, or its successor courts, which 
shall have jurisdiction therefore, notwith-
515
•HJ 63 RH 
standing the provisions of 28 U.S.C. 1502, 
and which court’s decisions shall be re-
viewable as provided by the laws of the 
United States. The United States Court of 
Appeals for the Federal Circuit shall cer-
tify such judgment, and order payment 
thereof, unless it finds, after a hearing, 
that such judgment is manifestly erro-
neous as to law or fact, or manifestly ex-
cessive. In either of such cases the United 
States Court of Appeals for the Federal 
Circuit shall have jurisdiction to modify 
such judgment. 
(d) The Government of the Republic 
of the Marshall Islands shall not be im-
mune from the jurisdiction of the courts 
of the United States, and the Government 
of the United States shall not be immune 
from the jurisdiction of the courts of the 
Republic of the Marshall Islands in any 
civil case in which an exception to for-
eign state immunity is set forth in the 
Foreign Sovereign Immunities Act (28 
U.S.C. 1602 et seq.) or its successor stat-
utes.
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Section 175
(a) A separate agreement, which shall 
come into effect simultaneously with this 
Compact, as amended, and shall have the 
force of law, shall govern mutual assistance 
and cooperation in law enforcement matters, 
including the pursuit, 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 inter-
national extradition, including 18 U.S.C. 3184, 
3186, and 3188–95, shall be applicable to the 
extradition of fugitives under the separate 
agreement, and the laws of the United States 
governing the transfer of prisoners, including 
18 U.S.C. 4100–15, shall be applicable to the 
transfer of prisoners under the separate 
agreement; and 
(b) A separate agreement, which shall 
come into effect simultaneously with this 
Compact, as amended, and shall have the 
force of law, shall govern requirements relat-
ing to labor recruitment practices, including 
registration, reporting, suspension or revoca-
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tion of authorization to recruit persons for 
employment in the United States, and en-
forcement for violations of such require-
ments. 
Section 176
The Government of the Republic of the 
Marshall Islands confirms that final judg-
ments in civil cases rendered by any court of 
the Trust Territory of the Pacific Islands shall 
continue in full force and effect, subject to the 
constitutional power of the courts of the Re-
public of the Marshall Islands to grant relief 
from judgments in appropriate cases. 
Section 177
Section 177 of the Compact entered into 
force with respect to the Marshall Islands on 
October 21, 1986 as follows: 
‘‘(a) The Government of the United 
States accepts the responsibility for com-
pensation owing to citizens of the Mar-
shall Islands, or the Federated States of 
Micronesia, (or Palau) for loss or damage 
to property and person of the citizens of 
the Marshall Islands, or the Federated 
States of Micronesia, resulting from the
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nuclear testing program which the Gov-
ernment 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 Mar-
shall 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 Mar-
shall Islands and its citizens and which 
have not as yet been compensated or 
which in the future may arise, for the 
continued administration by the Govern-
ment of the United States of direct radi-
ation related medical surveillance and 
treatment 
programs 
and 
radiological 
monitoring activities and for such addi-
tional programs and activities as may be 
mutually agreed, and for the assumption 
by the Government of the Marshall Is-
lands of responsibility for enforcement of 
limitations on the utilization of affected 
areas developed in cooperation with the 
Government of the United States and for
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the assistance by the Government of the 
United States in the exercise of such re-
sponsibility 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 sepa-
rate agreement referred to in this Sec-
tion, and shall provide the services and 
programs set forth in this separate agree-
ment, the language of which is incor-
porated into this Compact.’’
The Compact, as amended, makes no changes 
to, and has no effect upon, Section 177 of the 
Compact, nor does the Compact, as amended, 
change or affect the separate agreement re-
ferred to in Section 177 of the Compact in-
cluding Articles IX and X of that separate 
agreement, and measures taken by the parties 
thereunder.
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Section 178
(a) The Federal agencies of the Govern-
ment of the United States that provide serv-
ices and related programs in the Republic of 
the Marshall Islands pursuant to Title Two 
are authorized to settle and pay tort claims 
arising in the Republic of the Marshall Is-
lands from the activities of such agencies or 
from the acts or omissions of the employees 
of such agencies. Except as provided in sec-
tion 178(b), the provisions of 28 U.S.C. 2672 
and 31 U.S.C. 1304 shall apply exclusively to 
such administrative settlements and pay-
ments. 
(b) Claims under section 178(a) that can-
not be settled under section 178(a) shall be 
disposed of exclusively in accordance with Ar-
ticle II of Title Four. Arbitration awards ren-
dered pursuant to this subsection shall be 
paid out of funds under 31 U.S.C. 1304. 
(c) The Government of the United States 
and the Government of the Republic of the 
Marshall Islands shall, in the separate agree-
ment referred to in section 231, provide for:
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(1) the administrative settlement of 
claims referred to in section 178(a), in-
cluding designation of local agents in 
each State of the Republic of the Mar-
shall Islands; such agents to be empow-
ered to accept, investigate and settle 
such claims, in a timely manner, as pro-
vided in such separate agreements; and 
(2) arbitration, referred to in section 
178(b), in a timely manner, at a site con-
venient to the claimant, in the event a 
claim is not otherwise settled pursuant to 
section 178(a). 
(d) The provisions of section 174(d) shall 
not apply to claims covered by this section. 
(e) Except as otherwise explicitly pro-
vided by law of the United States, this Com-
pact, as amended, or its related agreements, 
neither the Government of the United States, 
its instrumentalities, nor any person acting 
on behalf of the Government of the United 
States, shall be named a party in any action 
based on, or arising out of, the activity or ac-
tivities of a recipient of any grant or other as-
sistance provided by the Government of the
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United States (or the activity or activities of 
the recipient’s agency or any other person or 
entity acting on behalf of the recipient). 
Section 179
(a) The courts of the Republic of the Mar-
shall Islands shall not exercise criminal juris-
diction over the Government of the United 
States, or its instrumentalities. 
(b) The courts of the Republic of the Mar-
shall Islands shall not exercise criminal juris-
diction over any person if the Government of 
the United States provides notification to the 
Government of the Republic of the Marshall 
Islands that such person was acting on behalf 
of the Government of the United States, for 
actions taken in furtherance of section 221 or 
224 of this amended Compact, or any other 
provision of law authorizing financial, pro-
gram, or service assistance to the Republic of 
the Marshall Islands. 
TITLE TWO 
ECONOMIC RELATIONS 
Article I 
Grant Assistance 
Section 211 - Annual Grant Assistance
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(a) In order to assist the Government of 
the Republic of the Marshall Islands in its ef-
forts to promote the economic advancement 
and budgetary self-reliance of its people, and 
in recognition of the special relationship that 
exists between the Republic of the Marshall 
Islands and the United States, the Govern-
ment of the United States shall provide assist-
ance on a grant basis for a period of twenty 
years in the amounts set forth in section 217, 
commencing on the effective date of this Com-
pact, as amended. Such grants shall be used 
for assistance in education, health care, the 
environment, public sector capacity building, 
and private sector development, or for other 
areas as mutually agreed, with priorities in 
the education and health care sectors. Con-
sistent with the medium-term budget and in-
vestment framework described in subsection 
(f) of this section, the proposed division of 
this amount among the identified areas shall 
require the concurrence of both the Govern-
ment of the United States and the Govern-
ment of the Republic of the Marshall Islands, 
through the Joint Economic Management and
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placed on advancing a quality basic edu-
cation system. 
(2) HEALTH.—United States grant as-
sistance shall be made available in ac-
cordance with the strategic framework 
described in subsection (f) of this section 
to support and improve the delivery of 
preventive, curative and environmental 
care and develop the human, financial, 
and material resources necessary for the 
Republic of the Marshall Islands to per-
form these services. 
(3) PRIVATE
SECTOR
DEVELOPMENT.—
United States grant assistance shall be 
made available in accordance with the 
strategic framework described in sub-
section (f) of this section to support the 
efforts of the Republic of the Marshall Is-
lands to attract foreign investment and 
increase indigenous business activity by 
vitalizing the commercial environment, 
ensuring fair and equitable application of 
the law, promoting adherence to core 
labor standards, maintaining progress to-
ward privatization of state-owned and
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partially state-owned enterprises, and en-
gaging in other reforms. 
(4) CAPACITY BUILDING IN THE PUBLIC 
SECTOR.—United States grant assistance 
shall be made available in accordance 
with the strategic framework described 
in subsection (f) of this section to support 
the efforts of the Republic of the Mar-
shall Islands to build effective, account-
able and transparent national and local 
government and other public sector insti-
tutions and systems. 
(5) 
ENVIRONMENT.—United 
States 
grant assistance shall be made available 
in accordance with the strategic frame-
work described in subsection (f) of this 
section to increase environmental protec-
tion; establish and manage conservation 
areas; engage in environmental infra-
structure planning, design construction 
and operation; and to involve the citizens 
of the Republic of the Marshall Islands in 
the process of conserving their country’s 
natural resources. 
(b) KWAJALEIN ATOLL.—
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(1) Of the total grant assistance made 
available under subsection (a) of this sec-
tion, the amount specified herein shall be 
allocated annually from fiscal year 2004 
through fiscal year 2023 (and thereafter 
in accordance with the Agreement be-
tween the Government of the United 
States and the Government of the Repub-
lic of the Marshall Islands Regarding 
Military Use and Operating Rights) to ad-
vance the objectives and specific prior-
ities set forth in subsections (a) and (d) of 
this section and the Fiscal Procedures 
Agreement, to address the special needs 
of the community at Ebeye, Kwajalein 
Atoll and other Marshallese communities 
within 
Kwajalein 
Atoll. 
This 
United 
States grant assistance shall be made 
available, in accordance with the me-
dium-term budget and investment frame-
work described in subsection (f) of this 
section, to support and improve the infra-
structure and delivery of services and de-
velop the human and material resources 
necessary for the Republic of the Mar-
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•HJ 63 RH 
shall Islands to carry out its responsi-
bility to maintain such infrastructure 
and deliver such services. The amount of 
this assistance shall be $3,100,000, with 
an inflation adjustment as provided in 
section 218, from fiscal year 2004 through 
fiscal year 2013 and the fiscal year 2013 
level of funding, with an inflation adjust-
ment as provided in section 218, will be 
increased by $2 million for fiscal year 
2014. The fiscal year 2014 level of fund-
ing, with an inflation adjustment as pro-
vided in section 218, will be made avail-
able from fiscal year 2015 through fiscal 
year 
2023 
(and 
thereafter 
as 
noted 
above). 
(2) The Government of the United 
States shall also provide to the Govern-
ment of the Republic of the Marshall Is-
lands, in conjunction with section 321(a) 
of this Compact, as amended, an annual 
payment from fiscal year 2004 through 
fiscal year 2023 (and thereafter in accord-
ance with the Agreement between the 
Government of the United States and the
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Government of the Republic of the Mar-
shall Islands Regarding Military Use and 
Operating Rights) of $1.9 million. This 
grant assistance will be subject to the 
Fiscal Procedures Agreement and will be 
adjusted for inflation under section 218 
and used to address the special needs of 
the community at Ebeye, Kwajalein Atoll 
and other Marshallese communities with-
in Kwajalein Atoll with emphasis on the 
Kwajalein landowners, as described in 
the Fiscal Procedures Agreement. 
(3) Of the total grant assistance made 
available under subsection (a) of this sec-
tion, and in conjunction with section 
321(a) of the Compact, as amended, 
$200,000, with an inflation adjustment as 
provided in section 218, shall be allocated 
annually from fiscal year 2004 through 
fiscal year 2023 (and thereafter as pro-
vided in the Agreement between the Gov-
ernment of the United States and the 
Government of the Republic of the Mar-
shall Islands Regarding Military Use and 
Operating Rights) for a grant to support
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•HJ 63 RH 
increased participation of the Govern-
ment of the Republic of the Marshall Is-
lands Environmental Protection Author-
ity in the annual U.S. Army Kwajalein 
Atoll Environmental Standards Survey 
and to promote a greater Government of 
the Republic of the Marshall Islands ca-
pacity for independent analysis of the 
Survey’s findings and conclusions. 
(c) HUMANITARIAN ASSISTANCE-REPUBLIC OF 
THE MARSHALL ISLANDS PROGRAM.—In recogni-
tion of the special development needs of the 
Republic of the Marshall Islands, the Govern-
ment of the United States shall make avail-
able to the Government of the Republic of the 
Marshall Islands, on its request and to be de-
ducted from the grant amount made available 
under subsection (a) of this section, a Human-
itarian Assistance - Republic of the Marshall 
Islands (‘‘HARMI’’) Program with emphasis on 
health, education, and infrastructure (includ-
ing transportation), projects and such other 
projects as mutually agreed. The terms and 
conditions of the HARMI shall be set forth in 
the Agreement Regarding the Military Use
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•HJ 63 RH 
and Operating Rights of the Government of 
the United States in the Republic of the Mar-
shall Islands Concluded Pursuant to Sections 
321 and 323 of the Compact of Free Associa-
tion, as Amended, which shall come into effect 
simultaneously with the amendments to this 
Compact. 
(d) PUBLIC INFRASTRUCTURE.—
(1) Unless otherwise agreed, not less 
than 30 percent and not more than 50 
percent of U.S. annual grant assistance 
provided under this section shall be 
made available in accordance with a list 
of specific projects included in the infra-
structure improvement and maintenance 
plan prepared by the Government of the 
Republic of the Marshall Islands as part 
of the strategic framework described in 
subsection (f) of this section. 
(2) 
INFRASTRUCTURE
MAINTENANCE 
FUND.—Five percent of the annual public 
infrastructure 
grant 
made 
available 
under paragraph (1) of this subsection 
shall be set aside, with an equal contribu-
tion from the Government of the Repub-
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•HJ 63 RH 
lic of the Marshall Islands, as a contribu-
tion to an Infrastructure Maintenance 
Fund. Administration of the Infrastruc-
ture Maintenance Fund shall be governed 
by the Fiscal Procedures Agreement. 
(e) 
DISASTER
ASSISTANCE
EMERGENCY 
FUND.—Of the total grant assistance made 
available under subsection (a) of this section, 
an amount of two hundred thousand dollars 
($200,000) shall be provided annually, with an 
equal contribution from the Government of 
the Republic of the Marshall Islands, as a con-
tribution to a Disaster Assistance Emergency 
Fund (‘‘DAEF’’). Any funds from the DAEF 
may be used only for assistance and rehabili-
tation resulting from disasters and emer-
gencies. The funds will be accessed upon dec-
laration of a State of Emergency by the Gov-
ernment of the Republic of the Marshall Is-
lands, with the concurrence of the United 
States Chief of Mission to the Republic of the 
Marshall Islands. Administration of the DAEF 
shall be governed by the Fiscal Procedures 
Agreement.
533
•HJ 63 RH 
(f) BUDGET AND INVESTMENT FRAMEWORK.—
The Government of the Republic of the Mar-
shall Islands shall prepare and maintain an 
official medium-term budget and investment 
framework. The framework shall be strategic 
in nature, shall be continuously reviewed and 
updated through the annual budget process, 
and shall make projections on a multi-year 
rolling basis. Each of the sectors and areas 
named in subsections (a), (b), and (d) of this 
section, or other sectors and areas as mutu-
ally agreed, shall be accorded specific treat-
ment in the framework. Those portions of the 
framework that contemplate the use of United 
States grant funds shall require the concur-
rence of both the Government of the United 
States and the Government of the Republic of 
the Marshall Islands. 
Section 212 - Kwajalein Impact and Use 
The Government of the United States 
shall provide to the Government of the Re-
public of the Marshall Islands in conjunction 
with section 321(a) of the Compact, as amend-
ed, and the agreement between the Govern-
ment of the United States and the Govern-
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ment of the Republic of the Marshall Islands 
regarding military use and operating rights, 
a payment in fiscal year 2004 of $15,000,000, 
with no adjustment for inflation. In fiscal year 
2005 and through fiscal year 2013, the annual 
payment will be the fiscal year 2004 amount 
($15,000,000) with an inflation adjustment as 
provided under section 218. In fiscal year 
2014, the annual payment will be $18,000,000 
(with no adjustment for inflation) or the fiscal 
year 2013 amount with an inflation adjust-
ment under section 218, whichever is greater. 
For fiscal year 2015 through fiscal year 2023 
(and thereafter in accordance with the Agree-
ment between the Government of the United 
States and the Government of the Republic of 
the Marshall Islands Regarding Military Use 
and Operating Rights) the annual payment 
will be the fiscal year 2014 amount, with an 
inflation adjustment as provided under sec-
tion 218. 
Section 213 - Accountability 
(a) Regulations and policies normally ap-
plicable to United States financial assistance 
to its state and local governments, as set forth
535
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in the Fiscal Procedures Agreement, shall 
apply to each grant described in section 211, 
and to grants administered under section 221 
below, except as modified in the separate 
agreements referred to in section 231 of this 
Compact, as amended, or by U.S. law. As set 
forth in the Fiscal Procedures Agreement, 
reasonable terms and conditions, including 
annual performance indicators that are nec-
essary to ensure effective use of United States 
assistance and reasonable progress toward 
achieving program objectives may be at-
tached. In addition, the United States may 
seek appropriate remedies for noncompliance 
with the terms and conditions attached to the 
assistance, or for failure to comply with sec-
tion 234, including withholding assistance. 
(b) The Government of the United States 
shall, for each fiscal year of the twenty years 
during which assistance is to be provided on 
a sector grant basis under section 211 (a), 
grant the Government of the Republic of the 
Marshall Islands an amount equal to the less-
er of (i) one half of the reasonable, properly 
documented cost incurred during such fiscal
536
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year to conduct the annual audit required 
under Article VIII (2) of the Fiscal Procedures 
Agreement or (ii) $500,000. Such amount will 
not be adjusted for inflation under section 218 
or otherwise. 
Section 214 - Joint Economic Management 
and Financial Accountability Committee 
The Governments of the United States 
and the Republic of the Marshall Islands shall 
establish a Joint Economic Management and 
Financial Accountability Committee, com-
posed of a U.S. chair, two other members from 
the Government of the United States and two 
members from the Government of the Repub-
lic of the Marshall Islands. The Joint Eco-
nomic Management and Financial Account-
ability Committee shall meet at least once 
each year to review the audits and reports re-
quired under this Title and the Fiscal Proce-
dures Agreement, evaluate the progress made 
by the Republic of the Marshall Islands in 
meeting the objectives identified in its frame-
work described in subsection (f) of section 
211, with particular focus on those parts of 
the framework dealing with the sectors and
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areas identified in subsection (a) of section 
211, identify problems encountered, and rec-
ommend ways to increase the effectiveness of 
U.S. assistance made available under this 
Title. The establishment and operations of the 
Joint Economic Management and Financial 
Accountability Committee shall be governed 
by the Fiscal Procedures Agreement. 
Section 215 - Annual Report 
The Government of the Republic of the 
Marshall Islands shall report annually to the 
President of the United States on the use of 
United States sector grant assistance and 
other assistance and progress in meeting mu-
tually agreed program and economic goals. 
The Joint Economic Management and Finan-
cial Accountability Committee shall review 
and comment on the report and make appro-
priate recommendations based thereon. 
Section 216 - Trust Fund 
(a) The United States shall contribute an-
nually for twenty years from the effective 
date of the Compact, as amended, in the 
amounts set forth in section 217 into a trust 
fund established in accordance with the
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Agreement Between the Government of the 
United States of America and the Government 
of the Republic of the Marshall Islands Imple-
menting Section 216 and Section 217 of the 
Compact, as Amended, Regarding a Trust 
Fund (‘‘Trust Fund Agreement’’), which shall 
come into effect simultaneously with this 
Compact, as amended. Upon termination of 
the annual grant assistance under section 211 
(a), (d) and (e), the earnings of the fund shall 
thereafter be used for the purposes described 
in section 211 or as otherwise mutually 
agreed. 
(b) The United States contribution into 
the Trust Fund described in subsection (a) of 
this section is conditioned on the Government 
of the Republic of the Marshall Islands con-
tributing 
to 
the 
Trust 
Fund 
at 
least 
$25,000,000, on the effective date of the Trust 
Fund Agreement or on October 1, 2003, which-
ever is later, $2,500,000 prior to October 1, 
2004, and $2,500,000 prior to October 1, 2005. 
Any funds received by the Republic of the 
Marshall Islands under section 111(d) of Pub-
lic Law 99–239 (January 14, 1986), or suc-
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•HJ 63 RH 
cessor provisions, would be contributed to the 
Trust Fund as a Republic of the Marshall Is-
lands’ contribution. 
(c) The terms regarding the investment 
and management of funds and use of the in-
come of the Trust Fund shall be governed by 
the Trust Fund Agreement. Funds derived 
from United States investment shall not be 
subject to Federal or state taxes in the United 
States or any taxes in the Republic of the Mar-
shall Islands. The Trust Fund Agreement shall 
also provide for annual reports to the Govern-
ment of the United States and to the Govern-
ment of the Republic of the Marshall Islands. 
The Trust Fund Agreement shall provide for 
appropriate distributions of trust fund pro-
ceeds to the Republic of the Marshall Islands 
and for appropriate remedies for the failure 
of the Republic of the Marshall Islands to use 
income of the Trust Fund for the annual grant 
purposes set forth in section 211. These rem-
edies may include the return to the United 
States of the present market value of its con-
tributions to the Trust Fund and the present 
market value of any undistributed income on
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the contributions of the United States. If this 
Compact, as amended, is terminated, the pro-
visions of sections 451–453 of the Compact, as 
amended, and the Trust Fund Agreement 
shall govern treatment of any U.S. contribu-
tions to the Trust Fund or accrued income 
thereon. 
Section 217 - Annual Grant Funding and Trust 
Fund Contributions 
The funds described in sections 211, 212, 
213(b), and 216 shall be made available as fol-
lows:
[In millions of dollars] 
Fiscal 
year 
Annual Grants 
Section 211
Audit Grant
Section 213(b) 
Trust Fund
Section 216 
(a&c) 
Kwajalein Im-
pact Section 212
Total 
2004 ..
35.2 
.5 
15.0 
57.7
2005 ..
34.7 
.5 
7.5 
15.0 
57.7
2006 ..
34.2 
.5 
15.0 
57.7
2007 ..
33.7 
.5 
8.5 
15.0 
57.7
2008 ..
33.2 
.5 
15.0 
57.7
2009 ..
32.7 
.5 
9.5 
15.0 
57.7
2010 ..
32.2 
.5 
15.0 
57.7
2011 ..
31.7 
.5 
10.5 
15.0 
57.7
2012 ..
31.2 
.5 
15.0 
57.7
2013 ..
30.7 
.5 
11.5 
15.0 
57.7
2014 ..
32.2 
.5 
18.0 
62.7
2015 ..
31.7 
.5 
12.5 
18.0 
62.7
2016 ..
31.2 
.5 
18.0 
62.7
2017 ..
30.7 
.5 
13.5 
18.0 
62.7
2018 ..
30.2 
.5 
18.0 
62.7
2019 ..
29.7 
.5 
14.5 
18.0 
62.7
2020 ..
29.2 
.5 
18.0 
62.7
2021 ..
28.7 
.5 
15.5 
18.0 
62.7
2022 ..
28.2 
.5 
18.0 
62.7
2023 ..
27.7 
.5 
16.5 
18.0 
62.7
Section 218 - Inflation Adjustment 
Except 
as 
otherwise 
provided, 
the 
amounts stated in this Title shall be adjusted 
for each United States Fiscal Year by the per-
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cent that equals two-thirds of the percent 
change in the United States Gross Domestic 
Product Implicit Price Deflator, or 5 percent, 
whichever is less in any one year, using the 
beginning of Fiscal Year 2004 as a base. 
Section 219 - Carry-Over of Unused Funds 
If in any year the funds made available by 
the Government of the United States for that 
year pursuant to this Article are not com-
pletely obligated by the Government of the 
Republic of the Marshall Islands, the unobli-
gated balances shall remain available in addi-
tion to the funds to be provided in subsequent 
years. 
Article II 
Services and Program Assistance 
Section 221
(a) SERVICES.—The Government of the 
United States shall make available to the Re-
public of the Marshall Islands, in accordance 
with and to the extent provided in the Federal 
Programs and Services Agreement referred to 
in Section 231, the services and related pro-
grams of: 
(1) the United States Weather Service;
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(2) the United States Postal Service; 
(3) the United States Federal Aviation 
Administration; 
(4) the United States Department of 
Transportation; and 
(5) the Department of Homeland Se-
curity, and the United States Agency for 
International Development, Office of For-
eign 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 rel-
evant provisions of the Federal Programs and 
Services Agreement referred to in section 231. 
(b) PROGRAMS.—
(1) Other than the services and pro-
grams covered by subsection (a) of this 
section, and to the extent authorized by 
the Congress of the United States, the 
Government of the United States shall 
make available to the Republic of the 
Marshall Islands the services and pro-
grams that were available to the Repub-
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lic of the Marshall Islands on the effec-
tive date of this Compact, as amended, to 
the extent that such services and pro-
grams continue to be available to State 
and local governments of the United 
States. As set forth in the Fiscal Proce-
dures Agreement, funds provided under 
subsection (a) of section 211 shall be con-
sidered to be local revenues of the Gov-
ernment of the Republic of the Marshall 
Islands when used as the local share re-
quired to obtain Federal programs and 
services. 
(2) Unless provided otherwise by U.S. 
law, the services and programs described 
in paragraph (1) of this subsection shall 
be extended in accordance with the 
terms of the Federal Programs and Serv-
ices Agreement. 
(c) The Government of the United States 
shall have and exercise such authority as is 
necessary to carry out its responsibilities 
under this Title and the Federal Programs 
and Services Agreement, including the au-
thority to monitor and administer all service
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and program assistance provided by the 
United States to the Republic of the Marshall 
Islands. The Federal Programs and Services 
Agreement shall also set forth the extent to 
which services and programs shall be pro-
vided to the Republic of the Marshall Islands. 
(d) Except as provided elsewhere in this 
Compact, as amended, under any separate 
agreement entered into under this Compact, 
as amended, or otherwise under U.S. law, all 
Federal domestic programs extended to or op-
erating in the Republic of the Marshall Is-
lands shall be subject to all applicable cri-
teria, standards, reporting requirements, au-
diting procedures, and other rules and regula-
tions applicable to such programs and serv-
ices when operating in the United States. 
(e) The Government of the United States 
shall make available to the Republic of the 
Marshall Islands alternate energy develop-
ment projects, studies, and conservation 
measures to the extent provided for the Free-
ly Associated States in the laws of the United 
States. 
Section 222
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The Government of the United States and 
the Government of the Republic of the Mar-
shall Islands may agree from time to time to 
extend to the Republic of the Marshall Islands 
additional United States grant assistance, 
services and programs, as provided under the 
laws of the United States. Unless inconsistent 
with such laws, or otherwise specifically pre-
cluded by the Government of the United 
States at the time such additional grant as-
sistance, services, or programs are extended, 
the Federal Programs and Services Agree-
ment shall apply to any such assistance, serv-
ices or programs. 
Section 223
The Government of the Republic of the 
Marshall Islands shall make available to the 
Government of the United States at no cost 
such land as may be necessary for the oper-
ations of the services and programs provided 
pursuant to this Article, and such facilities as 
are provided by the Government of the Re-
public of the Marshall Islands at no cost to the 
Government of the United States as of the ef-
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fective date of this Compact, as amended, or 
as may be mutually agreed thereafter. 
Section 224
The Government of the Republic of the 
Marshall Islands may request, from the time 
to time, technical assistance from the Federal 
agencies and institutions of the Government 
of the United States, which are authorized to 
grant such technical assistance in accordance 
with its laws. If technical assistance is grant-
ed pursuant to such a request, the Govern-
ment of the United States shall provide the 
technical assistance in a manner which gives 
priority consideration to the Republic of the 
Marshall Islands over other recipients not a 
part of the United States, its territories or 
possessions, and equivalent consideration to 
the Republic of the Marshall Islands with re-
spect to other states in Free Association with 
the United States. Such assistance shall be 
made available on a reimbursable or non-re-
imbursable basis to the extent provided by 
United States law.
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Article III 
Administrative Provisions 
Section 231
The specific nature, extent and contrac-
tual arrangements of the services and pro-
grams provided for in section 221 of this Com-
pact, as amended, as well as the legal status 
of agencies of the Government of the United 
States, their civilian employees and contrac-
tors, and the dependents of such personnel 
while present in the Republic of the Marshall 
Islands, and other arrangements in connec-
tion with the assistance, services, or pro-
grams furnished by the Government 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 Re-
public of the Marshall Islands, shall deter-
mine and implement procedures for the peri-
odic audit of all grants and other assistance 
made under Article I of this Title and of all
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funds expended for the services and programs 
provided under Article II of this Title. Fur-
ther, in accordance with the Fiscal Proce-
dures Agreement described in subsection (a) 
of section 211, the Comptroller General of the 
United States shall have such powers and au-
thorities as described in sections 103(m) and 
110(c) of Public Law 99–239, 99 Stat. 1777–78, 
and 99 Stat. 1799 (January 14, 1986). 
Section 233
Approval of this Compact, as amended, by 
the Government of the United States, in ac-
cordance with its constitutional processes, 
shall constitute a pledge by the United States 
that the sums and amounts specified as grants 
in section 211 of this Compact, as amended, 
shall be appropriated and paid to the Repub-
lic of the Marshall Islands for such period as 
those provisions of this Compact, as amended, 
remain in force, provided that the Republic of 
the Marshall Islands complies with the terms 
and conditions of this Title and related sub-
sidiary agreements. 
Section 234
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The Government of the Republic of the 
Marshall Islands 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 Govern-
ment of the Republic of the Marshall Islands 
subpoena documents and records and compel 
testimony in accordance with the laws and 
Constitution of the Republic of the Marshall 
Islands. Such assistance by the Government 
of the Republic of the Marshall Islands to the 
Government of the United States shall not be 
unreasonably withheld. The obligation of the 
Government of the Marshall Islands to fulfill 
its pledge herein is a condition to its receiv-
ing payment of such funds or other assistance 
authorized under this Compact, as amended.
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The Government of the United States shall 
pay any reasonable costs for extraordinary 
services executed by the Government of the 
Marshall Islands in carrying out the provi-
sions of this section. 
Article IV 
Trade 
Section 241
The Republic of the Marshall Islands is 
not included in the customs territory of the 
United States. 
Section 242
The President shall proclaim the fol-
lowing tariff treatment for articles imported 
from the Republic of the Marshall Islands 
which shall apply during the period of effec-
tiveness of this title: 
(a) Unless otherwise excluded, arti-
cles imported from the Republic of the 
Marshall Islands, subject to the limita-
tions 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
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Harmonized 
Tariff 
Schedule 
of 
the 
United States that is imported from the 
Republic of the Marshall Islands and the 
Federated States of Micronesia during 
any calendar year not to exceed 10 per-
cent of apparent United States consump-
tion of tuna in airtight containers during 
the immediately preceding calendar year, 
as reported by the National Marine Fish-
eries Service, shall be exempt from duty; 
but the quantity of tuna given duty-free 
treatment under this paragraph for any 
calendar year shall be counted against 
the aggregated quantity of tuna in air-
tight containers that is dutiable under 
rate column numbered 1 of such heading 
1604.14.22 for that calendar year. 
(c) The duty-free treatment provided 
under subsection (a) shall not apply to: 
(1) watches, clocks, and timing 
apparatus provided for in Chapter 91, 
excluding heading 9113, of the Har-
monized 
Tariff 
Schedule 
of 
the 
United States;
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(2) buttons (whether finished or 
not finished) provided for in items 
9606.21.40 and 9606.29.20 of such 
Schedule; 
(3) textile and apparel articles 
which are subject to textile agree-
ments; and 
(4) footwear, handbags, luggage, 
flat goods, work gloves, and leather 
wearing apparel which were not eligi-
ble articles for purposes of title V of 
the Trade Act of 1974 (19 U.S.C. 2461, 
et seq.) on April 1, 1984. 
(d) If the cost or value of materials 
produced in the customs territory of the 
United States is included with respect to 
an eligible article which is a product of 
the Republic of the Marshall Islands, an 
amount not to exceed 15 percent of the 
appraised value of the article at the time 
it is entered that is attributable to such 
United States cost or value may be ap-
plied for duty assessment purposes to-
ward determining the percentage re-
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ferred to in section 503(a)(2) of title V of 
the Trade Act of 1974. 
Section 243
Articles imported from the Republic of 
the Marshall Islands which are not exempt 
from duty under subsections (a), (b), (c), and 
(d) of section 242 shall be subject to the rates 
of duty set forth in column numbered 1-gen-
eral of the Harmonized Tariff Schedule of the 
United States (HTSUS). 
Section 244
(a) All products of the United States im-
ported into the Republic of the Marshall Is-
lands shall receive treatment no less favor-
able than that accorded like products of any 
foreign country with respect to customs du-
ties or charges of a similar nature and with 
respect to laws and regulations relating to im-
portation, exportation, taxation, sale, dis-
tribution, storage or use. 
(b) The provisions of subsection (a) shall 
not apply to advantages accorded by the Re-
public of the Marshall Islands by virtue of 
their full membership in the Pacific Island 
Countries Trade Agreement (PICTA), done on
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August, 18, 2001, to those governments listed 
in Article 26 of PICTA, as of the date the Com-
pact, as amended, is signed. 
(c) Prior to entering into consultations on, 
or concluding, a free trade agreement with 
governments not listed in Article 26 of PICTA, 
the Republic of the Marshall Islands shall 
consult with the United States regarding 
whether or how subsection (a) of section 244 
shall be applied. 
Article V 
Finance and Taxation 
Section 251
The currency of the United States is the 
official circulating legal tender of the Repub-
lic of the Marshall Islands. Should the Gov-
ernment of the Republic of the Marshall Is-
lands act to institute another currency, the 
terms of an appropriate currency transitional 
period shall be as agreed with the Govern-
ment of the United States. 
Section 252
The Government of the Republic of the 
Marshall Islands may, with respect to United 
States persons, tax income derived from
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sources within its respective jurisdiction, 
property situated therein, including transfers 
of such property by gift or at death, and prod-
ucts consumed therein, in such manner as the 
Government of the Republic of the Marshall 
Islands deems appropriate. The determina-
tion of the source of any income, or the situs 
of any property, shall for purposes of this 
Compact, as amended, be made according to 
the United States Internal Revenue Code. 
Section 253
A citizen of the Republic of the Marshall 
Islands, domiciled therein, shall be exempt 
from estate, gift, and generation-skipping 
transfer taxes imposed by the Government of 
the United States, provided that such citizen 
of the Republic of the Marshall Islands is nei-
ther a citizen nor a resident of the United 
States. 
Section 254
(a) In determining any income tax im-
posed by the Government of the Republic of 
the Marshall Islands, the Government of the 
Republic of the Marshall Islands shall have 
authority to impose tax upon income derived
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by a resident of the Republic of the Marshall 
Islands from sources without the Republic of 
the Marshall Islands, in the same manner and 
to the same extent as the Government of the 
Republic of the Marshall Islands imposes tax 
upon income derived from within its own ju-
risdiction. If the Government of the Republic 
of the Marshall Islands exercises such author-
ity as provided in this subsection, any indi-
vidual resident of the Republic of the Mar-
shall Islands who is subject to tax by the Gov-
ernment of the United States on income 
which is also taxed by the Government of the 
Republic of the Marshall Islands shall be re-
lieved of liability to the Government of the 
United States for the tax which, but for this 
subsection, would otherwise be imposed by 
the Government of the United States on such 
income. However, the relief from liability to 
the United States Government referred to in 
the preceding sentence means only relief in 
the form of the foreign tax credit (or deduc-
tion 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
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under section 911 of the Internal Revenue 
Code of 1986. For purposes of this section, the 
term ‘‘resident of the Republic of the Marshall 
Islands’’ shall be deemed to include any per-
son who was physically present in the Repub-
lic of the Marshall Islands for a period of 183 
or more days during any taxable year. 
(b) If the Government of the Republic of 
the Marshall Islands subjects income to tax-
ation substantially similar to that which was 
imposed by the Trust Territory Code in effect 
on January 1, 1980, such Government shall be 
deemed to have exercised the authority de-
scribed in section 254(a). 
Section 255
For purposes of section 274(h)(3)(A) of the 
U.S. Internal Revenue Code of 1986, the term 
‘‘North American Area’’ shall include the Re-
public of the Marshall Islands. 
TITLE THREE 
SECURITY AND DEFENSE RELATIONS 
Article I 
Authority and Responsibility 
Section 311
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(a) The Government of the United States 
has full authority and responsibility for secu-
rity and defense matters in or relating to the 
Republic of the Marshall Islands. 
(b) This authority and responsibility in-
cludes: 
(1) the obligation to defend the Re-
public of the Marshall Islands and its 
people from attack or threats thereof as 
the United States and its citizens are de-
fended; 
(2) the option to foreclose access to or 
use of the Republic of the Marshall Is-
lands 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 Repub-
lic of the Marshall Islands, subject to the 
terms of the separate agreements re-
ferred to in sections 321 and 323. 
(c) The Government of the United States 
confirms that it shall act in accordance with 
the principles of international law and the
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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 air-
space of the Republic of the Marshall Islands 
the activities and operations necessary for 
the exercise of its authority and responsi-
bility under this Title. 
Section 313
(a) The Government of the Republic of the 
Marshall Islands shall refrain from actions 
that the Government of the United States de-
termines, after appropriate consultation with 
that Government, to be incompatible with its 
authority and responsibility for security and 
defense matters in or relating to the Republic 
of the Marshall Islands. 
(b) The consultations referred to in this 
section shall be conducted expeditiously at 
senior levels of the two Governments, and the 
subsequent determination by the Government 
of the United States referred to in this section
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shall be made only at senior interagency lev-
els of the Government of the United States. 
(c) The Government of the Republic of the 
Marshall Islands shall be afforded, on an ex-
peditious basis, an opportunity to raise its 
concerns with the United States Secretary of 
State personally and the United States Sec-
retary of Defense personally regarding any 
determination made in accordance with this 
section. 
Section 314
(a) Unless otherwise agreed, the Govern-
ment of the United States shall not, in the Re-
public of the Marshall Islands: 
(1) test by detonation or dispose of 
any nuclear weapon, nor test, dispose of, 
or discharge any toxic chemical or bio-
logical weapon; or 
(2) test, dispose of, or discharge any 
other radioactive, toxic chemical or bio-
logical materials in an amount or manner 
that would be hazardous to public health 
or safety. 
(b) Unless otherwise agreed, other than 
for transit or overflight purposes or during
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the Trust Fund described in section 216 of 
this Compact, as amended, in the manner de-
scribed in those provisions and the Trust 
Fund Agreement. 
Section 453
(a) Should termination occur pursuant to 
section 443 prior to the twentieth anniversary 
of the effective date of this Compact, as 
amended, the following provisions of this 
Compact, as amended, shall remain in full 
force and effect until the twentieth anniver-
sary 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 
Republic 
of 
the 
Marshall 
Islands 
shall 
promptly consult with regard to their future 
relationship. Except as provided in sub-