Palau Compact of Free Association Implementation Act
PL 101-219 (H.J.Res.175), enacted 12/12/1989

103 STAT. 1870 
PUBLIC LAW 101-219—DEC. 12, 1989 
Public Law 101-219 
101st Congress 
Joint Resolution 
Dec. 12, 1989 
To authorize entry into force of the Compact of Free Association between the United 
[H.J. Res. 175] 
States and the Government of Palau, and for other purposes. 
Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, 
TITLE I—IMPLEMENTATION OF COMPACT OF FREE 
ASSOCIATION WITH PALAU 
48 u s e 1681 
SEC. 101. ENTRY INTO FORCE OF COMPACT. 
Notwithstanding the provisions of Section lOl(dXlXB) of Public 
Law 99-658, entry into force of the Compact of Free Association 
between the United States and Palau (set forth in title II of Public 
Law 99-658 and hereafter in this joint resolution referred to as the 
"Compact") in accordance with subsections (a) and (d) of section 101 
of Public Law 99-658 (100 Stat. 3673) is hereby authorized— 
(1) subject to the condition that the Compact, as approved by 
the Congress in Public Law 99-658, is approved by the requisite 
percentage of the votes cast in a referendum conducted pursu-
ant to the Constitution of Palau, and such approval is free from 
any legal challenge, and 
(2) upon expiration of 30 days, in which either the House of 
Representatives or the Senate of the United States is in session, 
after the President notifies the Committees on Interior and 
Insular Affairs and Foreign Affairs of the House of Representa-
tives and the Committee on Energy and Natural Resources of 
the Senate of the effective date of the Compact. 
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SEC. 102. FISCAL PROCEDURES ASSISTANCE. 
Upon request of the Government of Palau, the Secretary of the 
Interior shall provide assistance to the Government of Palau to 
develop and promulgate regulations for the effective expenditure of 
funds received pursuant to this joint resolution, Public Laws 99-658 
and 99-239, or any other Act of Congress. 
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SEC. 103. ANTIDRUG PROGRAM. 
(a) PLAN.—The Department of the Interior shall develop, in co-
operation with the Government of Palau and the National Drug 
Control Policy Office, a plan for an antidrug program in Palau. The 
plan shall be submitted to the Committees on Interior and Insular 
Affairs, Foreign Affairs, and Appropriations of the House of Rep-
resentatives and the Committees on Energy and Natural Resources 
and Appropriations of the Senate by April 1,1990. The plan shall: (1) 
identify the specific needs and costs of such an antidrug program; (2) 
shall identify all existing resources to be allocated for its im-
plementation by the Government of the United States and the 
Government of Palau; and (3) shall recommend priority use for 
additional resources, assuming such resources are made available. 
PUBLIC LAW 101-219—DEC. 12, 1989 
103 STAT. 1871 
(b) AGREEMENT.—Following completion of the plan, the Presi-
dent and the Government of Palau shall negotiate an agreement to 
facilitate implementation of the plan. Such agreement 
may 
include— 
(1) that the Government of Palau may request, on a long-term 
or case-by-case basis, that the officers of United States law 
enforcement agencies may conduct investigations consistent 
with implementation of the plan in cooperation with the law 
enforcement agencies of the Government of Palau; 
(2) that the Government of Palau or the Government of the 
United States may agree to provide specific resources, on a one-
time or a multiyear basis, to strengthen the antidrug program; 
and 
(3) a specific description of the technical assistance, training, 
and equipment to be provided to Palau by the United States 
necessary to implement the plan. 
SEC. 104. PUBLIC AUDITOR AND SPECIAL PROSECUTOR. 
(a) Upon request of the Government of Palau the President shall 
provide, on a nonreimbursable basis, appropriate technical assist-
ance to the public auditor or special prosecutor. The assistance 
provided pursuant to this subsection for the first five years after the 
effective date of the Compact shall, upon the request of the Govern-
ment of Palau, and to the extent personnel are available, include 
(but not be limited to) the full time services of— 
(1) an auditor or accountant, as determined by the public 
auditor, for the office of public auditor; and 
(2) an attorney or investigator, as determined by the special 
prosecutor, for the office of special prosecutor. 
SEC. 105. POWER GENERATION. 
Section 104(e) of Public Law 99-658 is amended to read as follows: 
"(e) Neither the Secretary of the Treasury nor any other officer or 
agent of the United States shall pay or transfer any portion of the 
sum and amounts payable to the Government of Palau pursuant to 
this joint resolution to any party other than the Government of 
Palau, except under the procedures established by the Compact and 
its related agreements. No funds appropriated pursuant to the 
Compact, this Act, or any other Act for grants or other assistance to 
Palau may be used to satisfy any obligation or expense incurred by 
Palau prior to November 14, 1986, with respect to any contract or 
debt related to any electrical generating plant or related facilities 
entered into or incurred by Palau which has not been specifically 
authorized by Congress in advance, except that the Government of 
Palau may use any portion of the annual grant under section 211(b) 
not required to be devoted to the energy needs of those parts of 
Palau not served by its central power generating facilities and any 
portion of the funds under section 212(b) of the Compact for such 
purpose.". 
SEC. 106. AUDIT CERTIFICATION. 
The chief officer of any agency conducting an audit pursuant to 
paragraph (1) of sections 102(c) and 103(m) of the Compact of Free 
Association Act of 1985 (Public Law 99-239) and section lOl(dXlXC) 
of Public Law 99-658 shall certify that audit. 
President of U.S. 
President of U.S. 
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note. 
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note. 
48 u s e 1681 
note. 
103 STAT. 1872 
PUBLIC LAW 101-219—DEC. 12, 1989 
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SEC. 107. ACQUISITION OF DEFENSE SITES. 
The provisions of title III of the Compact relating to future use by 
the United States of defense sites in Palau do not restrict the 
authority of the President of the United States to— 
(1) request additional funding, subject to appropriation, re-
lated to the use of privately owned land in Palau pursuant to 
article II of title III of the Compact as may be appropriate in 
light of actual land use requirements, independent appraisals of 
such privately owned land accepted by both governments, and 
other appropriate documentation of actual land use costs; and 
(2) consent to an extension of the time set forth in a subsidi-
ary agreement to such article in which the Government of 
Palau is required to make such land available to the United 
States. 
Micronesia. 
SEC. 108. FEDERAL PROGRAMS COORDINATION PERSONNEL. 
IWflrsiT&ll 
Islands. 
The Secretary of the Interior shall station at least one profes-
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sional staff person in each of the Offices of the United States 
note. 
Representatives in the Republic of Palau, the Federated States of 
Micronesia, and the Republic of the Marshall Islands to provide 
Federal program coordination and technical assistance to such 
governments as authorized under Public Laws 99-239 and 99-658. In 
meeting the purposes of this section the Secretary shall select 
qualified persons following consultations with the Interagency 
Group on Freely Associated State Affairs. 
48 u s e 1681 
SEC. 109. REFERENDUM COSTS. 
The Secretary of the Interior shall provide such sums as may be 
necessary for a further referendum on approval of the Compact, if 
one is required, or other appropriate costs associated with the 
approval process in Palau. 
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SEC. 110. AGREEMENTS. 
(a) EFFECTIVE DATE OF CERTAIN AGREEMENTS.—An agreement 
between the United States and the Government of the Republic of 
Palau consistent with the agreements approved by Public Law 
101-62 (101 Stat. 162) shall take effect without further authorization 
thirty days after submission to Congress. 
(b) EXTENSIONS.—The provisions of article IX, paragraph 5(a) of 
the Agreement referred to in section 462(e) of the Compact of Free 
Association as approved by Public Law 99-239, and article IX, 
paragraph 5(a) of the agreement referred to in section 462(f) of the 
Compact of Free Association for Palau as approved by Public Law 
99 Stat. 1833. 
' 99-658, are extended, in accordance with the terms thereof, until 
100 Stat. 3702. 
October 1, 1998, unless earlier terminated or further extended by 
the laws of the United States. 
(c) AUTHORIZATION.—Funding to implement the provisions of this 
title, and for assistance to the central health care facility and the 
prison in Palau, and the offices of Public Auditor and Special 
Prosecutor as proposed in the agreement entitled "Agreement 
Concerning Special Programs related to the Entry into Force of the 
Compact of Free Association Between the Government of the United 
States and the Government of the Republic of Palau" signed on May 
26, 1989, shall be available pursuant to the authorization in section 
105(c) of Public Law 99-239 as referenced by section 102(b) of Public 
Law 99-658 or from funds appropriated for technical assistance to 
the Secretary of the Interior. 
PUBLIC LAW 101-219—DEC. 12, 1989 
103 STAT. 1873 
SEC. 111. MODIFICATION OF ENERGY ASSISTANCE FUNDING. 
48 USC 1681 
(a) The President is authorized to negotiate and conclude an 
President of U.S. 
agreement, including the obligation of United States funds, with the 
Government of Palau which shall provide the following: 
(1) The sum of $28,000,000, adjusted by section 215 of the 
Compact at the time of its availability to Palau, shall be pro-
vided to Palau pursuant to section 211(b) of the Compact and 
upon entry into force of the Compact. 
(2) Palau shall pay to the United States, on or before the 15th 
anniversary of the effective date of the Compact, an amount 
equal to the net economic cost to the United States of making 
available the section 211(b) funds in the manner specified in this 
subsection rather than as provided in section 211(b). 
(3) Such economic cost shall reflect the time value of money 
and be determined using the rate determined for an equivalent 
loan by the Federal Financing Bank as of the date these funds 
are advanced, and using an inflation rate consistent with the 
determinations made under the provisions of section 215 of the 
Compact. 
(4) If the Government of Palau has not paid such net economic 
costs to the United States by the 15th anniversary of the 
effective date of the Compact, then the United States shall be 
automatically paid such sums from the fund established under 
section 211(f) of the Compact. 
(5) The provision of section 211(b) funds, as appropriated by 
Public Law 99-349 and pursuant to this subsection, shall be in 
fulfillment of all United States obligations under such section 
211(b) of the Compact and shall be subject to section 236 of the 
Compact. 
(b) Subject to the provisions of subsection (a) and upon the request 
of the Government of Palau, the sum of $28 million appropriated by 
Public Law 99-349 to fulfill the obligations of the United States 
under section 211(b) of the Compact (approved in Public Law 
99-658), adjusted by section 215 of such Compact, shall be provided to 
Palau upon entry into force of the Compact. 
(c) Funding provided in Public Law 101-121 under the "Trust 
Territory of the Pacific Islands" appropriation account shall remain 
available until expended. 
SEC. 112. SUBMISSION OF AGREEMENTS. 
48 USC 1681 
Any agreement concluded with the Government of Palau pursu-
ant to this joint resolution including the agreement entitled "Agree-
ment Concerning Special Programs related to the Entry into Force 
of the Compact of Free Association Between the Government of the 
United States and the Government of the Republic of Palau" signed 
on May 26, 1989, and any agreement which would amend, change, or 
terminate any such agreement, or portion thereof, shall be submit-
ted to the Congress and may not take effect until after 30 days after 
the date on which such agreement is so submitted. An amendment 
or agreement substituting or in addition to the subsidiary agree-
ment negotiated under section 212(a) of the Compact or its annex 
shall take effect only when approved by an Act of Congress. 
SEC. 113. TRANSITION FUNDING. 
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For the purposes of applying section 105(c)(2) of the Compact of 
Free Association Act of 1985 (99 Stat. 1792) to Palau, the terms 
"fiscal year 1987", "fiscal year 1988", and "fiscal year 1989" in 
103 STAT. 1874 
PUBLIC LAW 101-219—DEC. 12, 1989 
48 u s e 1681 
note. 
section 104(c) of Public Law 99-658 shall be deemed to be the first, 
second, and third fiscal years, respectively, beginning after the 
effective date of the Compact. 
TITLE II—INSULAR AREAS MATTERS 
SEC. 201. CONTROLLED SUBSTANCES IN THE FREELY ASSOCIATED 
STATES. 
President of U.S. 
(a) IN GENERAL.—The President is authorized to negotiate agree-
ments which provide— 
(1) that the United States shall carry out the provisions of 
part C of the Controlled Substances Act (21 U.S.C. 821 et seq.) as 
necessary to provide for the lawful distribution of controlled 
substances in the freely associated states; and 
(2) that a freely associated state which institutes and main-
tains a voluntary system to report annual estimates of narcotics 
needs to the International Narcotics Control Board, and which 
imposes controls on imports of narcotic drugs consistent with 
the Single Convention on Narcotic Drugs, 1961, shall be eligible 
for exports of narcotic drugs from the United States in the same 
manner as a country meeting the requirements of subsection (a) 
of section 1003 of the Controlled Substances Act (21 U.S.C. 953). 
(b) EFFECTIVE DATE.—Agreements concluded pursuant to this sec-
tion shall become effective pursuant to section 101(D(5) of Public 
Law 99-239 or section 101(d)(5) of Public Law 99-658, as may be 
applicable. 
Libraries. 
44 u s e 1905 
note. 
Appropriation 
authorization. 
SEC. 202. NORTHERN MARIANAS COLLEGE. 
The Northern Marianas College is hereby constituted a depository 
to receive Government publications, and the Superintendent of 
Documents shall supply to the Northern Marianas College one copy 
of each such publication in the same form as supplied to other 
designated depositories. 
SEC. 203. VIRGIN ISLANDS. 
The Revised Organic Act of the Virgin Islands is amended by 
striking out the second sentence of section 25 (48 U.S.C. 1615). 
SEC. 204. CABRAS ISLAND. 
Section 818(b)(2) of Public Law 96-418 (94 Stat. 1782) (as amended 
by section 504 of Public Law 98-454 (98 Stat. 1736)) is amended by 
striking "30 percent" and inserting "50 percent". 
SEC. 205. POHNPEI HYDROPOWER ADDITION. 
In addition to sums already appropriated for the Nanpil hydro-
power project, there are hereby authorized to be appropriated to the 
Secretary of the Army up to $6.5 million for design and construction 
of the hydropower addition to the Nanpil project. The Secretary of 
the Army is directed to use any funds appropriated pursuant to this 
authorization for the intended purposes, and under the same terms 
and conditions as sums previously provided. 
SEC. 206. CLARIFICATION WITH RESPECT TO ALLOTMENTS FOR TERRI-
TORIES. 
Section 901(a), Part 1, title I of the Act of June 19, 1968 (42 U.S.C. 
3791(a)) is further amended in paragraph (2) by changing the proviso 
to read as follows: "Provided, That for the purpose of section 506(a), 
PUBLIC LAW 101-219—DEC. 12, 1989 
103 STAT. 1875 
American Samoa and the Commonwealth of the Northern Mariana 
Islands shall be considered as one state and that for these purposes 
67 per centum of the amounts allocated shall be allocated to Amer-
ican Samoa, and 33 per centum to the Commonwealth of the North-
ern Mariana Islands.". 
SEC. 207. VIRGIN ISLANDS PRISON EXPANSION AND RENOVATION. 
Appropriation 
There is authorized to be appropriated $5,000,000 to the Secretary 
of the Interior for the Golden Grove Prison on St. Croix, United 
States Virgin Islands, and for renovation of and improvements of 
existing prison facilities. 
SEC. 208. OFFICE OF THE RESIDENT REPRESENTATIVE. 
Real property. 
Real property owned by the Commonwealth of the Northern 
48 USC1681 
Mariana Islands in the capital of the United States and used by the note. 
Resident Representative thereof in the discharge of his representa-
tive duties under the Covenant shall be exempt from assessment 
and taxation. 
Approved December 12,1989. 
LEGISLATIVE HISTORY—H.J. Res. 175: 
SENATE REPORTS: No. 101-189 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
June 27, considered and p£issed House. 
Nov. 21, considered and passed Senate, amended. House concurred in Senate 
amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
Dec. 12, Presidential statement.