Compact of Free Association Amendments Act of 2003
PL 108-188 (H.J.Res.63), enacted 12/17/2003

117 STAT. 2720
PUBLIC LAW 108–188—DEC. 17, 2003
Public Law 108–188
108th Congress
Joint Resolution
To approve the Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the Federated States
of Micronesia, and the Compact of Free Association, as amended, between the
Government of the United States of America and the Government of the Republic
of the Marshall Islands, and to appropriate funds to carry out the amended
Compacts.
Whereas the United States (in accordance with the Trusteeship
Agreement for the Trust Territory of the Pacific Islands, the
United Nations Charter, and the objectives of the international
trusteeship system of the United Nations) fulfilled its obligations
to promote the development of the people of the Trust Territory
toward self-government or independence as appropriate to the
particular circumstances of the Trust Territory and its peoples
and the freely expressed wishes of the peoples concerned;
Whereas the United States, the Federated States of Micronesia,
and the Republic of the Marshall Islands entered into the Com-
pact of Free Association set forth in title II of Public Law 99–
239, January 14, 1986, 99 Stat. 1770, to create and maintain
a close and mutually beneficial relationship;
Whereas the United States, in accordance with section 231 of the
Compact of Free Association entered into negotiations with the
Governments of the Federated States of Micronesia and the
Republic of the Marshall Islands to provide continued United
States assistance and to reaffirm its commitment to this close
and beneficial relationship; and
Whereas these negotiations, in accordance with section 431 of the
Compact, resulted in the ‘‘Compact of Free Association, as
amended between the Government of the United States of
America and the Government of the Federated States of Micro-
nesia’’, and the ‘‘Compact of Free Association, as amended
between the Government of the United States of America and
the Government of the Republic of the Marshall Islands’’, which,
together with their related agreements, were signed by the
Government of the United States and the Governments of the
Federated States of Micronesia and the Republic of the Marshall
Islands on May 14, and April 30, 2003, respectively: Now, there-
fore, be it
Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled,
Compact of Free
Association
Amendments Act
of 2003.
48 USC 1921
note.
Dec. 17, 2003
[H.J. Res. 63]
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117 STAT. 2721
PUBLIC LAW 108–188—DEC. 17, 2003
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This joint resolution, together with the table
of contents in subsection (b) of this section, may be cited as the
‘‘Compact of Free Association Amendments Act of 2003’’.
(b) TABLE OF CONTENTS.—The table of contents for this joint
resolution is as follows:
Sec. 1. Short title and table of contents.
TITLE I—APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT; IN-
TERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT
AND U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS
Sec. 101. Approval of U.S.-FSM Compact of Free Association and the U.S.-RMI
Compact of Free Association; references to subsidiary agreements or
separate agreements.
(a) Federated States of Micronesia.
(b) Republic of the Marshall Islands.
(c) References to the Compact, the U.S.-FSM Compact and the U.S.-RMI Com-
pact; References to Subsidiary Agreements or Separate Agreements.
(d) Amendment, Change, or Termination in the U.S.-FSM Compact, the U.S.-
RMI Compact and Certain Agreements.
(e) Subsidiary Agreements Deemed Bilateral.
(f) Entry Into Force of Future Amendments to Subsidiary Agreements.
Sec. 102. Agreements With Federated States of Micronesia.
(a) Law Enforcement Assistance.
(b) Agreement on Audits.
Sec. 103. Agreements With and Other Provisions Related to the Republic of the
Marshall Islands.
(a) Law Enforcement Assistance.
(b) EJIT.
(c) Section 177 Agreement.
(d) Nuclear Test Effects.
(e) Espousal Provisions.
(f) DOE Radiological Health Care Program; USDA Agricultural and Food Pro-
grams.
(g) Rongelap.
(h) Four Atoll Health Care Program.
(i) Enjebi Community Trust Fund.
(j) Bikini Atoll Cleanup.
(k) Agreement on Audits.
(l) Kwajalein.
Sec. 104. Interpretation of and United States Policy Regarding U.S.-FSM Compact
and U.S.-RMI Compact.
(a) Human Rights.
(b) Immigration and Passport Security.
(c) Nonalienation of Lands.
(d) Nuclear Waste Disposal.
(e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact on the State
of Hawaii, Guam, the Commonwealth of the Northern Mariana Islands
and American Samoa; Related Authorization and Continuing Appropria-
tion.
(f) Foreign Loans.
(g) Sense of Congress Concerning Funding of Public Infrastructure.
(h) Reports and Reviews.
(i) Construction of Section 141(f).
(j) Inflation Adjustment.
(k) Participation by Secondary Schools in the Armed Services Vocational Apti-
tude Battery (ASVAB) Student Testing Program.
Sec. 105. Supplemental Provisions.
(a) Domestic Program Requirements.
(b) Relations With the Federated States of Micronesia and the Republic of the
Marshall Islands.
(c) Continuing Trust Territory Authorization.
(d) Survivability.
(e) Noncompliance Sanctions; Actions Incompatible With United States Author-
ity.
(f) Continuing Programs and Laws.
(g) College of Micronesia.
(h) Trust Territory Debts to U.S. Federal Agencies.
(i) Judicial Training.
48 USC 1901
note.
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117 STAT. 2722
PUBLIC LAW 108–188—DEC. 17, 2003
(j) Technical Assistance.
(k) Prior Service Benefits Program.
(l) Indefinite Land Use Payments.
(m) Communicable Disease Control Program.
(n) User Fees.
(o) Treatment of Judgments of Courts of the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of Palau.
(p) Establishment of Trust Funds; Expedition of Process.
Sec. 106. Construction Contract Assistance.
(a) Assistance to U.S. Firms.
(b) Authorization of Appropriations.
Sec. 107. Prohibition.
Sec. 108. Compensatory Adjustments.
(a) Additional Programs and Services.
(b) Further Amounts.
Sec. 109. Authorization and Continuing Appropriation.
Sec. 110. Payment of Citizens of the Federated States of Micronesia, the Republic
of the Marshall Islands, and the Republic of Palau Employed by the
Government of the United States in the Continental United States.
TITLE II—COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED
STATES OF MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS
Sec. 201. Compacts of Free Association, as Amended Between the Government of
the United States of America and the Government of the Federated
States of Micronesia and Between the Government of the United States
of America and the Government of the Republic of the Marshall Islands.
(a) Compact of Free Association, as Amended, Between the Government of the
United States of America and the Government of the Federated States
of Micronesia.
TITLE ONE—GOVERNMENTAL RELATIONS
Article I—Self-Government.
Article II—Foreign Affairs.
Article III—Communications.
Article IV—Immigration.
Article V—Representation.
Article VI—Environmental Protection.
Article VII—General Legal Provisions.
TITLE TWO—ECONOMIC RELATIONS
Article I—Grant Assistance.
Article II—Services and Program Assistance.
Article III—Administrative Provisions.
Article IV—Trade.
Article V—Finance and Taxation.
TITLE THREE—SECURITY AND DEFENSE RELATIONS
Article I—Authority and Responsibility.
Article II—Defense Facilities and Operating Rights.
Article III—Defense Treaties and International Security Agreements.
Article IV—Service in Armed Forces of the United States.
Article V—General Provisions.
TITLE FOUR—GENERAL PROVISIONS
Article I—Approval and Effective Date.
Article II—Conference and Dispute Resolution.
Article III—Amendment.
Article IV—Termination.
Article V—Survivability.
Article VI—Definition of Terms.
Article VII—Concluding Provisions.
(b) Compact of Free Association, as Amended, Between the Government of the
United States of America and the Government of the Republic of the
Marshall Islands.
TITLE ONE—GOVERNMENTAL RELATIONS
Article I—Self-Government.
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117 STAT. 2723
PUBLIC LAW 108–188—DEC. 17, 2003
Article II—Foreign Affairs.
Article III—Communications.
Article IV—Immigration.
Article V—Representation.
Article VI—Environmental Protection.
Article VII—General Legal Provisions.
TITLE TWO—ECONOMIC RELATIONS
Article I—Grant Assistance.
Article II—Services and Program Assistance.
Article III—Administrative Provisions.
Article IV—Trade.
Article V—Finance and Taxation.
TITLE THREE—SECURITY AND DEFENSE RELATIONS
rticle I—Authority and Responsibility.
Article II—Defense Facilities and Operating Rights.
Article III—Defense Treaties and International Security Agreements.
Article IV—Service in Armed Forces of the United States.
Article V—General Provisions.
TITLE FOUR—GENERAL PROVISIONS
Article I—Approval and Effective Date.
Article II—Conference and Dispute Resolution.
Article III—Amendment.
Article IV—Termination.
Article V—Survivability.
Article VI—Definition of Terms.
Article VII—Concluding Provisions.
TITLE I—APPROVAL OF U.S.-FSM COM-
PACT AND U.S.-RMI COMPACT; INTER-
PRETATION OF, AND U.S. POLICIES
REGARDING, U.S.-FSM COMPACT AND
U.S.-RMI COMPACT; SUPPLEMENTAL
PROVISIONS
SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSOCIATION
AND THE U.S.-RMI COMPACT OF FREE ASSOCIATION; REF-
ERENCES TO SUBSIDIARY AGREEMENTS OR SEPARATE
AGREEMENTS.
(a) FEDERATED STATES OF MICRONESIA.—The Compact of Free
Association, as amended with respect to the Federated States of
Micronesia and signed by the United States and the Government
of the Federated States of Micronesia and set forth in Title II
(section 201(a)) of this joint resolution, is hereby approved, and
Congress hereby consents to the subsidiary agreements and
amended subsidiary agreements listed in section 462 of the U.S.-
FSM Compact. Subject to the provisions of this joint resolution,
the President is authorized to agree, in accordance with section
411 of the U.S.-FSM Compact, to an effective date for and thereafter
to implement such U.S.-FSM Compact.
(b) REPUBLIC
OF
THE MARSHALL ISLANDS.—The Compact of
Free Association, as amended with respect to the Republic of the
Marshall Islands and signed by the United States and the Govern-
ment of the Republic of the Marshall Islands and set forth in
Title II (section 201(b)) of this joint resolution, is hereby approved,
and Congress hereby consents to the subsidiary agreements and
amended subsidiary agreements listed in section 462 of the U.S.-
48 USC 1921.
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117 STAT. 2724
PUBLIC LAW 108–188—DEC. 17, 2003
RMI Compact. Subject to the provisions of this joint resolution,
the President is authorized to agree, in accordance with section
411 of the U.S.-RMI Compact, to an effective date for and thereafter
to implement such U.S.-RMI Compact.
(c) REFERENCES TO THE COMPACT, THE U.S.-FSM COMPACT,
AND THE U.S.-RMI COMPACT; REFERENCES TO SUBSIDIARY AGREE-
MENTS OR SEPARATE AGREEMENTS.—
(1) Any reference in this joint resolution (except references
in Title II) to ‘‘the Compact’’ shall be treated as a reference
to the Compact of Free Association set forth in title II of
Public Law 99–239, January 14, 1986, 99 Stat. 1770. Any
reference in this joint resolution to the ‘‘U.S.-FSM Compact’’
shall be treated as a reference to the Compact of Free Associa-
tion, as amended between the Government of the United States
of America and the Government of the Federated States of
Micronesia and set forth in Title II (section 201(a)) of this
joint resolution. Any reference in this joint resolution to the
‘‘U.S.-RMI Compact’’ shall be treated as a reference to the
Compact of Free Association, as amended between the Govern-
ment of the United States of America and the Government
of the Republic of the Marshall Islands and set forth in Title
II (section 201(b)) of this joint resolution.
(2) Any reference to the term ‘‘subsidiary agreements’’ or
‘‘separate agreements’’ in this joint resolution shall be treated
as a reference to agreements listed in section 462 of the U.S.-
FSM Compact and the U.S.-RMI Compact, and any other agree-
ments that the United States may from time to time enter
into with either the Government of the Federated States of
Micronesia or the Government of the Republic of the Marshall
Islands, or with both such governments in accordance with
the provisions of the U.S.-FSM Compact and the U.S.-RMI
Compact.
(d) AMENDMENT, CHANGE, OR TERMINATION IN THE U.S.-FSM
COMPACT AND U.S.-RMI COMPACT AND CERTAIN AGREEMENTS.—
(1) Any amendment, change, or termination by mutual
agreement or by unilateral action of the Government of the
United States of all or any part of the U.S.-FSM Compact
or U.S.-RMI Compact shall not enter into force until after
Congress has incorporated it in an Act of Congress.
(2) The provisions of paragraph (1) shall apply—
(A) to all actions of the Government of the United
States under the U.S.-FSM Compact or U.S.-RMI Compact
including, but not limited to, actions taken pursuant to
sections 431, 441, or 442;
(B) to any amendment, change, or termination in the
Agreement Between the Government of the United States
and the Government of the Federated States of Micronesia
Regarding Friendship, Cooperation and Mutual Security
Concluded Pursuant to Sections 321 and 323 of the Com-
pact of Free Association referred to in section 462(a)(2)
of the U.S.-FSM Compact and the Agreement Between
the Government of the United States and the Government
of the Marshall Islands Regarding Mutual Security Con-
cluded Pursuant to Sections 321 and 323 of the Compact
of Free Association referred to in section 462(a)(5) of the
U.S.-RMI Compact;
Applicability.
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117 STAT. 2725
PUBLIC LAW 108–188—DEC. 17, 2003
(C) to any amendment, change, or termination of the
agreements concluded pursuant to Compact section 177,
and section 215(a) of the U.S.-FSM Compact and section
216(a) of the U.S.-RMI Compact, the terms of which are
incorporated by reference into the U.S.-FSM Compact and
the U.S.-RMI Compact; and
(D) to the following subsidiary agreements, or portions
thereof:
(i) Articles III, IV, and X of the agreement referred
to in section 462(b)(6) of the U.S.-RMI Compact.
(ii) Article III and IV of the agreement referred
to in section 462(b)(6) of the U.S.-FSM Compact.
(iii) Articles VI, XV, and XVII of the agreement
referred to in section 462(b)(7) of the U.S.-FSM Com-
pact and U.S.-RMI Compact.
(e) SUBSIDIARY AGREEMENTS DEEMED BILATERAL.—For pur-
poses of implementation of the U.S.-FSM Compact and the U.S.-
RMI Compact and this joint resolution, the Agreement Concluded
Pursuant to Section 234 of the Compact of Free Association and
referred to in section 462(a)(1) of the U.S.-FSM Compact and section
462(a)(4) of the U.S.-RMI Compact shall be deemed to be a bilateral
agreement between the United States and each other party to
such subsidiary agreement. The consent or concurrence of any other
party shall not be required for the effectiveness of any actions
taken by the United States in conjunction with either the Federated
States of Micronesia or the Republic of the Marshall Islands which
are intended to affect the implementation, modification, suspension,
or termination of such subsidiary agreement (or any provision
thereof) as regards the mutual responsibilities of the United States
and the party in conjunction with whom the actions are taken.
(f) ENTRY INTO FORCE OF FUTURE AMENDMENTS TO SUBSIDIARY
AGREEMENTS.—No agreement between the United States and the
government of either the Federated States of Micronesia or the
Republic of the Marshall Islands which would amend, change, or
terminate any subsidiary agreement or portion thereof, other than
those set forth in subsection (d) of this section shall enter into
force until 90 days after the President has transmitted such agree-
ment to the President of the Senate and the Speaker of the House
of Representatives together with an explanation of the agreement
and the reasons therefor. In the case of the agreement referred
to in section 462(b)(3) of the U.S.-FSM Compact and the U.S.-
RMI Compact, such transmittal shall include a specific statement
by the Secretary of Labor as to the necessity of such amendment,
change, or termination, and the impact thereof.
SEC. 102. AGREEMENTS WITH FEDERATED STATES OF MICRONESIA.
(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to sections 222
and 224 of the U.S.-FSM Compact, the United States shall provide
non-reimbursable technical and training assistance as appropriate,
including training and equipment for postal inspection of illicit
drugs and other contraband, to enable the Government of the Fed-
erated States of Micronesia to develop and adequately enforce laws
of the Federated States of Micronesia and to cooperate with the
United States in the enforcement of criminal laws of the United
States. Funds appropriated pursuant to section 105(j) of this title
may be used to reimburse State or local agencies providing such
assistance.
48 USC 1921a.
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117 STAT. 2726
PUBLIC LAW 108–188—DEC. 17, 2003
(b) AGREEMENT
ON AUDITS.—The Comptroller General (and
his duly authorized representatives) shall have the authorities nec-
essary to carry out his responsibilities under section 232 of the
U.S.-FSM Compact and the agreement referred to in section
462(b)(4) of the U.S.-FSM Compact, including the following authori-
ties:
(1) GENERAL AUTHORITY OF THE COMPTROLLER GENERAL
TO AUDIT.—
(A) The Comptroller General of the United States (and
his duly authorized representatives) shall have the
authority to audit—
(i) all grants, program assistance, and other assist-
ance provided to the Government of the Federated
States of Micronesia under Articles I and II of Title
Two of the U.S.-FSM Compact; and
(ii) any other assistance provided by the Govern-
ment of the United States to the Government of the
Federated States of Micronesia.
Such authority shall include authority for the Comptroller
General to conduct or cause to be conducted any of the
audits provided for in section 232 of the U.S.-FSM Compact.
The authority provided in this paragraph shall continue
for at least three years after the last such grant has been
made or assistance has been provided.
(B) The Comptroller General (and his duly authorized
representatives) shall also have authority to review any
audit conducted by or on behalf of the Government of
the United States. In this connection, the Comptroller Gen-
eral shall have access to such personnel and to such
records, documents, working papers, automated data and
files, and other information relevant to such review.
(2) COMPTROLLER GENERAL ACCESS TO RECORDS.—
(A) In carrying out paragraph (1), the Comptroller
General (and his duly authorized representatives) shall
have such access to the personnel and (without cost) to
records, documents, working papers, automated data and
files, and other information relevant to such audits. The
Comptroller General may duplicate any such records, docu-
ments, working papers, automated data and files, or other
information relevant to such audits.
(B) Such records, documents, working papers, auto-
mated data and files, and other information regarding each
such grant or other assistance shall be maintained for
at least five years after the date such grant or assistance
was provided and in a manner that permits such grants,
assistance, and payments to be accounted for distinct from
any other funds of the Government of the Federated States
of Micronesia.
(3) STATUS OF COMPTROLLER GENERAL REPRESENTATIVES.—
The Comptroller General and his duly authorized representa-
tives shall be immune from civil and criminal process relating
to words spoken or written and all acts performed by them
in their official capacity and falling within their functions,
except insofar as such immunity may be expressly waived by
the Government of the United States. The Comptroller General
and his duly authorized representatives shall not be liable
to arrest or detention pending trial, except in the case of a
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117 STAT. 2727
PUBLIC LAW 108–188—DEC. 17, 2003
grave crime and pursuant to a decision by a competent judicial
authority, and such persons shall enjoy immunity from seizure
of personal property, immigration restrictions, and laws relating
to alien registration, fingerprinting, and the registration of
foreign agents. Such persons shall enjoy the same taxation
exemptions as are set forth in Article 34 of the Vienna Conven-
tion on Diplomatic Relations. The privileges, exemptions and
immunities accorded under this paragraph are not for the per-
sonal benefit of the individuals concerned but are to safeguard
the independent exercise of their official functions. Without
prejudice to those privileges, exemptions and immunities, it
is the duty of all such persons to respect the laws and regula-
tions of the Government of the Federated States of Micronesia.
(4) AUDITS DEFINED.—As used in this subsection, the term
‘‘audits’’ includes financial, program, and management audits,
including determining—
(A) whether the Government of the Federated States
of Micronesia has met the requirements set forth in the
U.S.-FSM Compact, or any related agreement entered into
under the U.S.-FSM Compact, regarding the purposes for
which such grants and other assistance are to be used;
and
(B) the propriety of the financial transactions of the
Government of the Federated States of Micronesia pursu-
ant to such grants or assistance.
(5) COOPERATION BY FEDERATED STATES OF MICRONESIA.—
The Government of the Federated States of Micronesia will
cooperate fully with the Comptroller General of the United
States in the conduct of such audits as the Comptroller General
determines necessary to enable the Comptroller General to
fully discharge his responsibilities under this joint resolution.
SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RELATED TO
THE REPUBLIC OF THE MARSHALL ISLANDS.
(a) LAW ENFORCEMENT ASSISTANCE.—Pursuant to sections 222
and 224 of the U.S.-RMI Compact, the United States shall provide
non-reimbursable technical and training assistance as appropriate,
including training and equipment for postal inspection of illicit
drugs and other contraband, to enable the Government of the Mar-
shall Islands to develop and adequately enforce laws of the Marshall
Islands and to cooperate with the United States in the enforcement
of criminal laws of the United States. Funds appropriated pursuant
to section 105(j) of this title may be used to reimburse State or
local agencies providing such assistance.
(b) EJIT.—
(1) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that the President of the
United States shall negotiate with the Government of the Mar-
shall Islands an agreement whereby, without prejudice as to
any claims which have been or may be asserted by any party
as to rightful title and ownership of any lands on Ejit, the
Government of the Marshall Islands shall assure that lands
on Ejit used as of January 1, 1985, by the people of Bikini,
will continue to be available without charge for their use,
until such time as Bikini is restored and inhabitable and the
continued use of Ejit is no longer necessary, unless a Marshall
Islands court of competent jurisdiction finally determines that
48 USC 1921b.
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117 STAT. 2728
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there are legal impediments to continued use of Ejit by the
people of Bikini.
(2) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that if the impediments
described in paragraph (1) do arise, the United States will
cooperate with the Government of the Marshall Islands in
assisting any person adversely affected by such judicial deter-
mination to remain on Ejit, or in locating suitable and accept-
able alternative lands for such person’s use.
(3) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that paragraph (1) shall not
be applied in a manner which would prevent the Government
of the Marshall Islands from acting in accordance with its
constitutional processes to resolve title and ownership claims
with respect to such lands or from taking substitute or addi-
tional measures to meet the needs of the people of Bikini
with their democratically expressed consent and approval.
(c) SECTION 177 AGREEMENT.—
(1) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that in furtherance of the
purposes of Article I of the Subsidiary Agreement for
Implementation of Section 177 of the Compact, the payment
of the amount specified therein shall be made by the United
States under Article I of the Agreement between the Govern-
ment of the United States and the Government of the Marshall
Islands for the Implementation of section 177 of the Compact
(hereafter in this subsection referred to as the ‘‘Section 177
Agreement’’) only after the Government of the Marshall Islands
has notified the President of the United States as to which
investment management firm has been selected by such
Government to act as Fund Manager under Article I of the
Section 177 Agreement.
(2) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that in the event that the
President determines that an investment management firm
selected by the Government of the Marshall Islands does not
meet the requirements specified in Article I of the Section
177 Agreement, the United States shall invoke the conference
and dispute resolution procedures of Article II of Title Four
of the Compact. Pending the resolution of such a dispute and
until a qualified Fund Manager has been designated, the
Government of the Marshall Islands shall place the funds paid
by the United States pursuant to Article I of the Section 177
Agreement into an interest-bearing escrow account. Upon des-
ignation of a qualified Fund Manager, all funds in the escrow
account shall be transferred to the control of such Fund Man-
ager for management pursuant to the Section 177 Agreement.
(3) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that if the Government of
the Marshall Islands determines that some other investment
firm should act as Fund Manager in place of the firm first
(or subsequently) selected by such Government, the Govern-
ment of the Marshall Islands shall so notify the President
of the United States, identifying the firm selected by such
Government to become Fund Manager, and the President shall
proceed to evaluate the qualifications of such identified firm.
Notification.
Notification.
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(4) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that at the end of 15 years
after the effective date of the Compact, the firm then acting
as Fund Manager shall transfer to the Government of the
Marshall Islands, or to such account as such Government shall
so notify the Fund Manager, all remaining funds and assets
being managed by the Fund Manager under the Section 177
Agreement.
(d) NUCLEAR TEST EFFECTS.—In the joint resolution of January
14, 1986 (Public Law 99–239) Congress provided that in approving
the Compact, the Congress understands and intends that the peo-
ples of Bikini, Enewetak, Rongelap, and Utrik, who were affected
by the United States nuclear weapons testing program in the Mar-
shall Islands, will receive the amounts of $75,000,000 (Bikini);
$48,750,000 (Enewetak); $37,500,000 (Rongelap); and $22,500,000
(Utrik), respectively, which amounts shall be paid out of proceeds
from the fund established under Article I, section 1 of the subsidiary
agreement for the implementation of section 177 of the Compact.
The amounts specified in this subsection shall be in addition to
any amounts which may be awarded to claimants pursuant to
Article IV of the subsidiary agreement for the implementation of
Section 177 of the Compact.
(e) ESPOUSAL PROVISIONS.—
(1) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that it is the intention of
the Congress of the United States that the provisions of section
177 of the Compact of Free Association and the Agreement
between the Government of the United States and the Govern-
ment of the Marshall Islands for the Implementation of Section
177 of the Compact (hereafter in this subsection referred to
as the ‘‘Section 177 Agreement’’) constitute a full and final
settlement of all claims described in Articles X and XI of
the Section 177 Agreement, and that any such claims be termi-
nated and barred except insofar as provided for in the Section
177 Agreement.
(2) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that in furtherance of the
intention of Congress as stated in paragraph (1) of this sub-
section, the Section 177 Agreement is hereby ratified and
approved. It is the explicit understanding and intent of Con-
gress that the jurisdictional limitations set forth in Article
XII of such Agreement are enacted solely and exclusively to
accomplish the objective of Article X of such Agreement and
only as a clarification of the effect of Article X, and are not
to be construed or implemented separately from Article X.
(f) DOE RADIOLOGICAL HEALTH CARE PROGRAM; USDA AGRI-
CULTURAL AND FOOD PROGRAMS.—
(1) MARSHALL
ISLANDS
PROGRAM.—Notwithstanding any
other provision of law, upon the request of the Government
of the Republic of the Marshall Islands, the President (either
through an appropriate department or agency of the United
States or by contract with a United States firm) shall continue
to provide special medical care and logistical support thereto
for the remaining members of the population of Rongelap and
Utrik who were exposed to radiation resulting from the 1954
United States thermo-nuclear ‘‘Bravo’’ test, pursuant to Public
Laws 95–134 and 96–205.
President.
Notification.
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117 STAT. 2730
PUBLIC LAW 108–188—DEC. 17, 2003
(2) AGRICULTURAL AND FOOD PROGRAMS.—
(A) IN GENERAL.—In the joint resolution of January
14, 1986 (Public Law 99–239) Congress provided that not-
withstanding any other provision of law, upon the request
of the Government of the Marshall Islands, for the first
fifteen years after the effective date of the Compact, the
President (either through an appropriate department or
agency of the United States or by contract with a United
States firm or by a grant to the Government of the Republic
of the Marshall Islands which may further contract only
with a United States firm or a Republic of the Marshall
Islands firm, the owners, officers and majority of the
employees of which are citizens of the United States or
the Republic of the Marshall Islands) shall provide tech-
nical and other assistance—
(i) 
without 
reimbursement, 
to 
continue 
the
planting and agricultural maintenance program on
Enewetak, as provided in subparagraph (C); and
(ii) without reimbursement, to continue the food
programs of the Bikini and Enewetak people described
in section 1(d) of Article II of the Subsidiary Agreement
for the Implementation of Section 177 of the Compact
and for continued waterborne transportation of agricul-
tural products to Enewetak including operations and
maintenance of the vessel used for such purposes.
(B) POPULATION CHANGES.—The President shall ensure
the assistance provided under these programs reflects the
changes in the population since the inception of such pro-
grams.
(C) PLANTING AND AGRICULTURAL MAINTENANCE PRO-
GRAM.—
(i) IN
GENERAL.—The planting and agricultural
maintenance program on Enewetak shall be funded
at a level of not less than $1,300,000 per year, as
adjusted for inflation under section 218 of the U.S.-
RMI Compact.
(ii) AUTHORIZATION
AND
CONTINUING
APPROPRIA-
TION.—There is hereby authorized and appropriated
to the Secretary of the Interior, out of any funds in
the Treasury not otherwise appropriated, to remain
available until expended, for each fiscal year from 2004
through 2023, $1,300,000, as adjusted for inflation
under section 218 of the U.S.-RMI Compact, for grants
to carry out the planting and agricultural maintenance
program.
(3) PAYMENTS.—In the joint resolution of January 14, 1986
(Public Law 99–239) Congress provided that payments under
this subsection shall be provided to such extent or in such
amounts as are necessary for services and other assistance
provided pursuant to this subsection. It is the sense of Congress
that after the periods of time specified in paragraphs (1) and
(2) of this subsection, consideration will be given to such addi-
tional funding for these programs as may be necessary.
(g) RONGELAP.—
(1) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that because Rongelap was
President.
President.
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117 STAT. 2731
PUBLIC LAW 108–188—DEC. 17, 2003
directly affected by fallout from a 1954 United States thermo-
nuclear test and because the Rongelap people remain uncon-
vinced that it is safe to continue to live on Rongelap Island,
it is the intent of Congress to take such steps (if any) as
may be necessary to overcome the effects of such fallout on
the habitability of Rongelap Island, and to restore Rongelap
Island, if necessary, so that it can be safely inhabited. Accord-
ingly, it is the expectation of the Congress that the Government
of the Marshall Islands shall use such portion of the funds
specified in Article II, section 1(e) of the subsidiary agreement
for the implementation of section 177 of the Compact as are
necessary for the purpose of contracting with a qualified sci-
entist or group of scientists to review the data collected by
the Department of Energy relating to radiation levels and other
conditions on Rongelap Island resulting from the thermonuclear
test. It is the expectation of the Congress that the Government
of the Marshall Islands, after consultation with the people
of Rongelap, shall select the party to review such data, and
shall contract for such review and for submission of a report
to the President of the United States and the Congress as
to the results thereof.
(2) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that the purpose of the review
referred to in paragraph (1) of this subsection shall be to
establish whether the data cited in support of the conclusions
as to the habitability of Rongelap Island, as set forth in the
Department of Energy report entitled: ‘‘The Meaning of Radi-
ation for Those Atolls in the Northern Part of the Marshall
Islands That Were Surveyed in 1978’’, dated November 1982,
are adequate and whether such conclusions are fully supported
by the data. If the party reviewing the data concludes that
such conclusions as to habitability are fully supported by ade-
quate data, the report to the President of the United States
and the Congress shall so state. If the party reviewing the
data concludes that the data are inadequate to support such
conclusions as to habitability or that such conclusions as to
habitability are not fully supported by the data, the Govern-
ment of the Marshall Islands shall contract with an appropriate
scientist or group of scientists to undertake a complete survey
of radiation and other effects of the nuclear testing program
relating to the habitability of Rongelap Island. Such sums
as are necessary for such survey and report concerning the
results thereof and as to steps needed to restore the habitability
of Rongelap Island are authorized to be made available to
the Government of the Marshall Islands.
(3) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that it is the intent of Congress
that such steps (if any) as are necessary to restore the habit-
ability of Rongelap Island and return the Rongelap people
to their homeland will be taken by the United States in con-
sultation with the Government of the Marshall Islands and,
in accordance with its authority under the Constitution of the
Marshall Islands, the Rongelap local government council.
(4) There are hereby authorized and appropriated to the
Secretary of the Interior, out of any funds in the Treasury
not otherwise appropriated, to remain available until expended,
for fiscal year 2005, $1,780,000; for fiscal year 2006, $1,760,000;
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117 STAT. 2732
PUBLIC LAW 108–188—DEC. 17, 2003
and for fiscal year 2007, $1,760,000, as the final contributions
of the United States to the Rongelap Resettlement Trust Fund
as established pursuant to Public Law 102–154 (105 Stat. 1009),
for the purposes of establishing a food importation program
as a part of the overall resettlement program of Rongelap
Island.
(h) FOUR ATOLL HEALTH CARE PROGRAM.—
(1) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that services provided by the
United States Public Health Service or any other United States
agency pursuant to section 1(a) of Article II of the Agreement
for the Implementation of Section 177 of the Compact (hereafter
in this subsection referred to as the ‘‘Section 177 Agreement’’)
shall be only for services to the people of the Atolls of Bikini,
Enewetak, Rongelap, and Utrik who were affected by the con-
sequences of the United States nuclear testing program, pursu-
ant to the program described in Public Law 95–134 (91 Stat.
1159) and Public Law 96–205 (94 Stat. 84) and their descend-
ants (and any other persons identified as having been so
affected if such identification occurs in the manner described
in such public laws). Nothing in this subsection shall be con-
strued as prejudicial to the views or policies of the Government
of the Marshall Islands as to the persons affected by the con-
sequences of the United States nuclear testing program.
(2) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that at the end of the first
year after the effective date of the Compact and at the end
of each year thereafter, the providing agency or agencies shall
return to the Government of the Marshall Islands any unex-
pended funds to be returned to the Fund Manager (as described
in Article I of the Section 177 Agreement) to be covered into
the Fund to be available for future use.
(3) In the joint resolution of January 14, 1986 (Public
Law 99–239) Congress provided that the Fund Manager shall
retain the funds returned by the Government of the Marshall
Islands pursuant to paragraph (2) of this subsection, shall
invest and manage such funds, and at the end of 15 years
after the effective date of the Compact, shall make from the
total amount so retained and the proceeds thereof annual
disbursements sufficient to continue to make payments for
the provision of health services as specified in paragraph (1)
of this subsection to such extent as may be provided in contracts
between the Government of the Marshall Islands and appro-
priate United States providers of such health services.
(i) ENJEBI COMMUNITY TRUST FUND.—In the joint resolution
of January 14, 1986 (Public Law 99–239) Congress provided that
notwithstanding any other provision of law, the Secretary of the
Treasury shall establish on the books of the Treasury of the United
States a fund having the status specified in Article V of the sub-
sidiary agreement for the implementation of Section 177 of the
Compact, to be known as the ‘‘Enjebi Community Trust Fund’’
(hereafter in this subsection referred to as the ‘‘Fund’’), and shall
credit to the Fund the amount of $7,500,000. Such amount, which
shall be ex gratia, shall be in addition to and not charged against
any other funds provided for in the Compact and its subsidiary
agreements, this joint resolution, or any other Act. Upon receipt
by the President of the United States of the agreement described
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117 STAT. 2733
PUBLIC LAW 108–188—DEC. 17, 2003
in this subsection, the Secretary of the Treasury, upon request
of the Government of the Marshall Islands, shall transfer the Fund
to the Government of the Marshall Islands, provided that the
Government of the Marshall Islands agrees as follows:
(1) ENJEBI TRUST AGREEMENT.—In the joint resolution of
January 14, 1986 (Public Law 99–239) Congress provided that
the Government of the Marshall Islands and the Enewetak
Local Government Council, in consultation with the people
of Enjebi, shall provide for the creation of the Enjebi Commu-
nity Trust Fund and the employment of the manager of the
Enewetak Fund established pursuant to the Section 177 Agree-
ment as trustee and manager of the Enjebi Community Trust
Fund, or, should the manager of the Enewetak Fund not be
acceptable to the people of Enjebi, another United States invest-
ment manager with substantial experience in the administra-
tion of trusts and with funds under management in excess
of $250,000,000.
(2) MONITOR
CONDITIONS.—In the joint resolution of
January 14, 1986 (Public Law 99–239) Congress provided that
upon the request of the Government of the Marshall Islands,
the United States shall monitor the radiation and other condi-
tions on Enjebi and within one year of receiving such a request
shall report to the Government of the Marshall Islands when
the people of Enjebi may resettle Enjebi under circumstances
where the radioactive contamination at Enjebi, including
contamination derived from consumption of locally grown food
products, can be reduced or otherwise controlled to meet whole
body Federal radiation protection standards for the general
population, including mean annual dose and mean 30-year
cumulative dose standards.
(3) RESETTLEMENT OF ENJEBI.—In the joint resolution of
January 14, 1986 (Public Law 99–239) Congress provided that
in the event that the United States determines that the people
of Enjebi can within 25 years of January 14, 1986, resettle
Enjebi under the conditions set forth in paragraph (2) of this
subsection, then upon such determination there shall be avail-
able to the people of Enjebi from the Fund such amounts
as are necessary for the people of Enjebi to do the following,
in accordance with a plan developed by the Enewetak Local
Government Council and the people of Enjebi, and concurred
with by the Government of the Marshall Islands to assure
consistency with the government’s overall economic develop-
ment plan:
(A) Establish a community on Enjebi Island for the
use of the people of Enjebi.
(B) Replant Enjebi with appropriate food-bearing and
other vegetation.
(4) RESETTLEMENT OF OTHER LOCATION.—In the joint reso-
lution of January 14, 1986 (Public Law 99–239) Congress pro-
vided that in the event that the United States determines
that within 25 years of January 14, 1986, the people of Enjebi
cannot resettle Enjebi without exceeding the radiation stand-
ards set forth in paragraph (2) of this subsection, then the
fund manager shall be directed by the trust instrument to
distribute the Fund to the people of Enjebi for their resettle-
ment at some other location in accordance with a plan, devel-
oped by the Enewetak Local Government Council and the
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117 STAT. 2734
PUBLIC LAW 108–188—DEC. 17, 2003
people of Enjebi and concurred with by the Government of
the Marshall Islands, to assure consistency with the govern-
ment’s overall economic development plan.
(5) INTEREST
FROM
FUND.—In the joint resolution of
January 14, 1986 (Public Law 99–239) Congress provided that
prior to and during the distribution of the corpus of the Fund
pursuant to paragraphs (3) and (4) of this subsection, the
people of Enjebi may, if they so request, receive the interest
earned by the Fund on no less frequent a basis than quarterly.
(6) DISCLAIMER OF LIABILITY.—In the joint resolution of
January 14, 1986 (Public Law 99–239) Congress provided that
neither under the laws of the Marshall Islands nor under
the laws of the United States, shall the Government of the
United States be liable for any loss or damage to person or
property in respect to the resettlement of Enjebi by the people
of Enjebi, pursuant to the provision of this subsection or other-
wise.
(j) BIKINI ATOLL CLEANUP.—
(1) DECLARATION
OF
POLICY.—In the joint resolution of
January 14, 1986 (Public Law 99–239), the Congress deter-
mined and declared that it is the policy of the United States,
to be supported by the full faith and credit of the United
States, that because the United States, through its nuclear
testing and other activities, rendered Bikini Atoll unsafe for
habitation by the people of Bikini, the United States will fulfill
its responsibility for restoring Bikini Atoll to habitability, as
set forth in paragraph (2) and (3) of this subsection.
(2) CLEANUP FUNDS.—The joint resolution of January 14,
1986 (Public Law 99–239) authorized to be appropriated such
sums as necessary to implement the settlement agreement
of March 15, 1985, in The People of Bikini, et al. against
United States of America, et al., Civ. No. 84–0425 (D. Ha.).
(3) CONDITIONS
OF
FUNDING.—In the joint resolution of
January 14, 1986 (Public Law 99–239) the Congress provided
that the funds referred to in paragraph (2) were to be made
available pursuant to Article VI, Section 1 of the Compact
Section 177 Agreement upon completion of the events set forth
in the settlement agreement referred to in paragraph (2) of
this subsection.
(k) AGREEMENT
ON AUDITS.—The Comptroller General (and
his duly authorized representatives) shall have the authorities nec-
essary to carry out his responsibilities under section 232 of the
U.S.-RMI Compact and the agreement referred to in section
462(b)(4) of the U.S.-RMI Compact, including the following authori-
ties:
(1) GENERAL AUTHORITY OF THE COMPTROLLER GENERAL
TO AUDIT.—
(A) The Comptroller General of the United States (and
his duly authorized representatives) shall have the
authority to audit—
(i) all grants, program assistance, and other assist-
ance provided to the Government of the Republic of
the Marshall Islands under Articles I and II of Title
Two of the U.S.-RMI Compact; and
(ii) any other assistance provided by the Govern-
ment of the United States to the Government of the
Republic of the Marshall Islands.
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117 STAT. 2735
PUBLIC LAW 108–188—DEC. 17, 2003
Such authority shall include authority for the Comptroller
General to conduct or cause to be conducted any of the
audits provided for in section 232 of the U.S.-RMI Compact.
The authority provided in this paragraph shall continue
for at least three years after the last such grant has been
made or assistance has been provided.
(B) The Comptroller General (and his duly authorized
representatives) shall also have authority to review any
audit conducted by or on behalf of the Government of
the United States. In this connection, the Comptroller Gen-
eral shall have access to such personnel and to such
records, documents, working papers, automated data and
files, and other information relevant to such review.
(2) COMPTROLLER GENERAL ACCESS TO RECORDS.—
(A) In carrying out paragraph (1), the Comptroller
General (and his duly authorized representatives) shall
have such access to the personnel and (without cost) to
records, documents, working papers, automated data and
files, and other information relevant to such audits. The
Comptroller General may duplicate any such records, docu-
ments, working papers, automated data and files, or other
information relevant to such audits.
(B) Such records, documents, working papers, auto-
mated data and files, and other information regarding each
such grant or other assistance shall be maintained for
at least five years after the date such grant or assistance
was provided and in a manner that permits such grants,
assistance and payments to be accounted for distinct from
any other funds of the Government of the Republic of
the Marshall Islands.
(3) STATUS OF COMPTROLLER GENERAL REPRESENTATIVES.—
The Comptroller General and his duly authorized representa-
tives shall be immune from civil and criminal process relating
to words spoken or written and all acts performed by them
in their official capacity and falling within their functions,
except insofar as such immunity may be expressly waived by
the Government of the United States. The Comptroller General
and his duly authorized representatives shall not be liable
to arrest or detention pending trial, except in the case of a
grave crime and pursuant to a decision by a competent judicial
authority, and such persons shall enjoy immunity from seizure
of personal property, immigration restrictions, and laws relating
to alien registration, fingerprinting, and the registration of
foreign agents. Such persons shall enjoy the same taxation
exemptions as are set forth in Article 34 of the Vienna Conven-
tion on Diplomatic Relations. The privileges, exemptions and
immunities accorded under this paragraph are not for the per-
sonal benefit of the individuals concerned but are to safeguard
the independent exercise of their official functions. Without
prejudice to those privileges, exemptions and immunities, it
is the duty of all such persons to respect the laws and regula-
tions of the Government of the Republic of the Marshall Islands.
(4) AUDITS DEFINED.—As used in this subsection, the term
‘‘audits’’ includes financial, program, and management audits,
including determining—
(A) whether the Government of the Republic of the
Marshall Islands has met the requirements set forth in
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117 STAT. 2736
PUBLIC LAW 108–188—DEC. 17, 2003
the U.S.-RMI Compact, or any related agreement entered
into under the U.S.-RMI Compact, regarding the purposes
for which such grants and other assistance are to be used;
and
(B) the propriety of the financial transactions of the
Government of the Republic of the Marshall Islands pursu-
ant to such grants or assistance.
(5) COOPERATION
BY
THE
REPUBLIC
OF
THE
MARSHALL
ISLANDS.—The Government of the Republic of the Marshall
Islands will cooperate fully with the Comptroller General of
the United States in the conduct of such audits as the Comp-
troller General determines necessary to enable the Comptroller
General to fully discharge his responsibilities under this joint
resolution.
(l) KWAJALEIN.—
(1) STATEMENT OF POLICY.—It is the policy of the United
States that payment of funds by the Government of the Mar-
shall Islands to the landowners of Kwajalein Atoll in accordance
with the land use agreement dated October 19, 1982, or as
amended or superseded, and any related allocation agreements,
is required in order to ensure that the Government of the
United States will be able to fulfill its obligation and respon-
sibilities under Title Three of the U.S.-RMI Compact and the
subsidiary agreements concluded pursuant to the U.S.-RMI
Compact.
(2) FAILURE TO PAY.—
(A) IN GENERAL.—If the Government of the Marshall
Islands fails to make payments in accordance with para-
graph (1), the Government of the United States shall ini-
tiate procedures under section 313 of the U.S.-RMI Com-
pact and consult with the Government of the Marshall
Islands with respect to the basis for the nonpayment of
funds.
(B) RESOLUTION.—The United States shall expedi-
tiously resolve the matter of any nonpayment of funds
required under paragraph (1) pursuant to section 313 of
the U.S.-RMI Compact and the authority and responsibility
of the Government of the United States for security and
defense matters in or relating to the Marshall Islands.
This paragraph shall be enforced, as may be necessary,
in accordance with section 105(e).
(3) DISPOSITION
OF
INCREASED
PAYMENTS
PENDING
NEW
LAND USE AGREEMENT.—Until such time as the Government
of the Marshall Islands and the landowners of Kwajalein Atoll
have concluded an agreement amending or superseding the
land use agreement reflecting the terms of and consistent with
the Military Use Operating Rights Agreement dated October
19, 1982, any amounts paid by the United States to the Govern-
ment of the Marshall Islands in excess of the amounts required
to be paid pursuant to the land use agreement dated October
19, 1982, shall be paid into, and held in, an interest bearing
escrow account in a United States financial institution by the
Government of the Republic of the Marshall Islands. At such
time, the funds and interest held in escrow shall be paid
to the landowners of Kwajalein in accordance with the new
land use agreement. If no such agreement is concluded by
the date which is five years after the date of enactment of
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117 STAT. 2737
PUBLIC LAW 108–188—DEC. 17, 2003
this resolution, then such funds and interest shall, unless other-
wise mutually agreed between the Government of the United
States of America and the Government of the Republic of the
Marshall Islands, be returned to the U.S. Treasury.
(4) NOTIFICATIONS AND REPORT.—
(A) The Government of the Republic of the Marshall
Islands shall notify the Government of the United States
of America when an agreement amending or superseding
the land use agreement dated October 19, 1982, is con-
cluded.
(B) If no agreement amending or superseding the land
use agreement dated October 19, 1982 is concluded by
the date five years after the date of enactment of this
resolution, then the President shall report to Congress
on the intentions of the United States with respect to
the use of Kwajalein Atoll after 2016, on any plans to
relocate activities carried out on Kwajalein Atoll, and on
the disposition of the funds and interest held in escrow
under paragraph (3).
(5) ASSISTANCE.—The President is authorized to make loans
and grants to the Government of the Marshall Islands to
address the special needs of the community at Ebeye, Kwajalein
Atoll, and other Marshallese communities within the Kwajalein
Atoll, pursuant to development plans adopted in accordance
with applicable laws of the Marshall Islands. The loans and
grants shall be subject to such other terms and conditions
as the President, in the discretion of the President, may deter-
mine are appropriate.
SEC. 
104. 
INTERPRETATION 
OF 
AND 
UNITED 
STATES 
POLICY
REGARDING U.S.-FSM COMPACT AND U.S.-RMI COMPACT.
(a) HUMAN RIGHTS.—In approving the U.S.-FSM Compact and
the U.S.-RMI Compact, Congress notes the conclusion in the State-
ment of Intent of the Report of The Future Political Status Commis-
sion of the Congress of Micronesia in July, 1969, that ‘‘our rec-
ommendation of a free associated state is indissolubly linked to
our desire for such a democratic, representative, constitutional
government’’ and notes that such desire and intention are re-
affirmed and embodied in the Constitutions of the Federated States
of Micronesia and the Republic of the Marshall Islands. Congress
also notes and specifically endorses the preamble to the U.S.-FSM
Compact and the U.S.-RMI Compact, which affirms that the govern-
ments of the parties to the U.S.-FSM Compact and the U.S.-RMI
Compact are founded upon respect for human rights and funda-
mental freedoms for all. The Secretary of State shall include in
the annual reports on the status of internationally recognized
human rights in foreign countries, which are submitted to Congress
pursuant to sections 116 and 502B of the Foreign Assistance Act
of 1961, ‘‘22 U.S.C. 2151n, 2304’’ a full and complete report
regarding the status of internationally recognized human rights
in the Federated States of Micronesia and the Republic of the
Marshall Islands.
(b) IMMIGRATION AND PASSPORT SECURITY.—
(1) NATURALIZED
CITIZENS.—The rights of a bona fide
naturalized citizen of the Federated States of Micronesia or
the Republic of the Marshall Islands to enter the United States,
to lawfully engage therein in occupations, and to establish
48 USC 1921c.
President.
President.
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117 STAT. 2738
PUBLIC LAW 108–188—DEC. 17, 2003
residence therein as a nonimmigrant, to the extent such rights
are provided under section 141 of the U.S.-FSM Compact and
U.S.-RMI Compact, shall not be deemed to extend to any such
naturalized citizen with respect to whom circumstances associ-
ated with the acquisition of the status of a naturalized citizen
are such as to allow a reasonable inference, on the part of
appropriate officials of the United States and subject to United
States procedural requirements, that such naturalized status
was acquired primarily in order to obtain such rights.
(2) PASSPORTS.—It is the sense of Congress that up to
$250,000 of the grant assistance provided to the Federated
States of Micronesia pursuant to section 211(a)(4) of the U.S.-
FSM Compact, and up to $250,000 of the grant assistance
provided to the Republic of the Marshall Islands pursuant
to section 211(a)(4) of the U.S.-RMI Compact (or a greater
amount of the section 211(a)(4) grant, if mutually agreed
between the Government of the United States and the govern-
ment of the Federated States of Micronesia or the government
of the Republic of the Marshall Islands), be used for the purpose
of increasing the machine-readability and security of passports
issued by such jurisdictions. It is further the sense of Congress
that such funds be obligated by September 30, 2004 and in
the amount and manner specified by the Secretary of State
in consultation with the Secretary of Homeland Security and,
respectively, with the government of the Federated States of
Micronesia and the government of the Republic of the Marshall
Islands. The United States Government is authorized to require
that passports used for the purpose of seeking admission under
section 141 of the U.S.-FSM Compact and the U.S.-RMI Com-
pact contain the security enhancements funded by such assist-
ance.
(3) INFORMATION-SHARING.—It is the sense of Congress that
the governments of the Federated States of Micronesia and
the Republic of the Marshall Islands develop, prior to October
1, 2004, the capability to provide reliable and timely informa-
tion as may reasonably be required by the Government of
the United States in enforcing criminal and security-related
grounds of inadmissibility and deportability under the Immigra-
tion and Nationality Act, as amended, and shall provide such
information to the Government of the United States.
(4) TRANSITION; CONSTRUCTION OF SECTIONS 141(a)(3) AND
141(a)(4) OF THE U.S.-FSM COMPACT AND U.S.-RMI COMPACT.—
The words ‘‘the effective date of this Compact, as amended’’
in sections 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact
and the U.S.-RMI Compact shall be construed to read, ‘‘on
the day prior to the enactment by the United States Congress
of the Compact of Free Association Amendments Act of 2003.’’.
(c) NONALIENATION OF LANDS.—Congress endorses and encour-
ages the maintenance of the policies of the Government of the
Federated States of Micronesia and the Government of the Republic
of the Marshall Islands to regulate, in accordance with their Con-
stitutions and laws, the alienation of permanent interests in real
property so as to restrict the acquisition of such interests to persons
of Federated States of Micronesia citizenship and the Republic
of the Marshall Islands citizenship, respectively.
(d) NUCLEAR WASTE DISPOSAL.—In approving the U.S.-FSM
Compact and the U.S.-RMI Compact, Congress understands that
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117 STAT. 2739
PUBLIC LAW 108–188—DEC. 17, 2003
the Government of the Federated States of Micronesia and the
Government of the Republic of the Marshall Islands will not permit
any other government or any nongovernmental party to conduct,
in the Republic of the Marshall Islands or in the Federated States
of Micronesia, any of the activities specified in subsection (a) of
section 314 of the U.S.-FSM Compact and the U.S.-RMI Compact.
(e) IMPACT OF THE U.S.-FSM COMPACT AND THE U.S.-RMI COM-
PACT ON THE STATE OF HAWAII, GUAM, THE COMMONWEALTH OF
THE NORTHERN MARIANA ISLANDS AND AMERICAN SAMOA; RELATED
AUTHORIZATION AND CONTINUING APPROPRIATION.—
(1) STATEMENT OF CONGRESSIONAL INTENT.—In reauthor-
izing the U.S.-FSM Compact and the U.S.-RMI Compact, it
is not the intent of Congress to cause any adverse consequences
for an affected jurisdiction.
(2) DEFINITIONS.—For the purposes of this title—
(A) the term ‘‘affected jurisdiction’’ means American
Samoa, Guam, the Commonwealth of the Northern Mar-
iana Islands, or the State of Hawaii; and
(B) the term ‘‘qualified nonimmigrant’’ means a person,
or their children under the age of 18, admitted or resident
pursuant to section 141 of the U.S.-RMI or U.S.-FSM Com-
pact, or section 141 of the Palau Compact who, as of
a date referenced in the most recently published enumera-
tion is a resident of an affected jurisdiction. As used in
this subsection, the term ‘‘resident’’ shall be a person who
has a ‘‘residence,’’ as that term is defined in section
101(a)(33) of the Immigration and Nationality Act, as
amended.
(3) AUTHORIZATION
AND
CONTINUING
APPROPRIATION.—
There is hereby authorized and appropriated to the Secretary
of the Interior, out of any funds in the Treasury not otherwise
appropriated, to remain available until expended, for each fiscal
year from 2004 through 2023, $30,000,000 for grants to affected
jurisdictions to aid in defraying costs incurred by affected juris-
dictions as a result of increased demands placed on health,
educational, social, or public safety services or infrastructure
related to such services due to the residence in affected jurisdic-
tions of qualified nonimmigrants from the Republic of the Mar-
shall Islands, the Federated States of Micronesia, or the
Republic of Palau. The grants shall be—
(A) awarded and administered by the Department of
the Interior, Office of Insular Affairs, or any successor
thereto, in accordance with regulations, policies and proce-
dures applicable to grants so awarded and administered;
and
(B) used only for health, educational, social, or public
safety services, or infrastructure related to such services,
specifically affected by qualified nonimmigrants.
(4) ENUMERATION.—The Secretary of the Interior shall con-
duct periodic enumerations of qualified nonimmigrants in each
affected jurisdiction. The enumerations—
(A) shall be conducted at such intervals as the Sec-
retary of the Interior shall determine, but no less frequently
than every five years, beginning in fiscal year 2003;
(B) shall be supervised by the United States Bureau
of the Census or such other organization as the Secretary
of the Interior may select; and
Grants.
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117 STAT. 2740
PUBLIC LAW 108–188—DEC. 17, 2003
(C) after fiscal year 2003, shall be funded by the Sec-
retary of the Interior by deducting such sums as are nec-
essary, but not to exceed $300,000 as adjusted for inflation
pursuant to section 217 of the U.S.-FSM Compact with
fiscal year 2003 as the base year, per enumeration, from
funds appropriated pursuant to the authorization contained
in paragraph (3) of this subsection.
(5) ALLOCATION.—The Secretary of the Interior shall allo-
cate to the government of each affected jurisdiction, on the
basis of the results of the most recent enumeration, grants
in an aggregate amount equal to the total amount of funds
appropriated under paragraph (3) of this subsection, as reduced
by any deductions authorized by subparagraph (C) of paragraph
(4) of this subsection, multiplied by a ratio derived by dividing
the number of qualified nonimmigrants in such affected juris-
diction by the total number of qualified nonimmigrants in all
affected jurisdictions.
(6) AUTHORIZATION FOR HEALTH CARE REIMBURSEMENT.—
There are hereby authorized to be appropriated to the Secretary
of the Interior such sums as may be necessary to reimburse
health care institutions in the affected jurisdictions for costs
resulting from the migration of citizens of the Republic of
the Marshall Islands, the Federated States of Micronesia and
the Republic of Palau to the affected jurisdictions as a result
of the implementation of the Compact of Free Association,
approved by Public Law 99–239, or the approval of the U.S.-
FSM Compact and the U.S.-RMI Compact by this resolution.
(7) USE OF DOD MEDICAL FACILITIES AND NATIONAL HEALTH
SERVICE CORPS.—
(A) DOD 
MEDICAL
FACILITIES.—The Secretary of
Defense shall make available, on a space available and
reimbursable basis, the medical facilities of the Department
of Defense for use by citizens of the Federated States
of Micronesia and the Republic of the Marshall Islands
who are properly referred to the facilities by government
authorities responsible for provision of medical services
in the Federated States of Micronesia, the Republic of
the Marshall Islands, the Republic of Palau and the affected
jurisdictions.
(B) NATIONAL HEALTH SERVICE CORPS.—The Secretary
of Health and Human Services shall continue to make
the services of the National Health Service Corps available
to the residents of the Federated States of Micronesia
and the Republic of the Marshall Islands to the same
extent and for so long as such services are authorized
to be provided to persons residing in any other areas within
or outside the United States.
(C) AUTHORIZATION
OF
APPROPRIATIONS.—There are
authorized to be appropriated to carry out this paragraph
such sums as are necessary for each fiscal year.
(8) REPORTING
REQUIREMENT.—Not later than one year
after the date of enactment of this joint resolution, and at
one year intervals thereafter, the Governors of Guam, the State
of Hawaii, the Commonwealth of the Northern Mariana Islands,
and American Samoa may provide to the Secretary of the
Interior by February 1 of each year their comments with respect
to the impacts of the Compacts on their respective jurisdiction.
Deadline.
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117 STAT. 2741
PUBLIC LAW 108–188—DEC. 17, 2003
The Secretary of the Interior, upon receipt of any such com-
ments, shall report to the Congress not later than May 1
of each year to include the following:
(A) The Governor’s comments on the impacts of the
Compacts as well as the Administration’s analysis of such
impact.
(B) The Administration views on any recommendations
for corrective action to eliminate those consequences as
proposed by such Governors.
(C) With regard to immigration, statistics concerning
the number of persons availing themselves of the rights
described in section 141(a) of the Compact during the year
covered by each report.
(D) With regard to trade, an analysis of the impact
on the economy of American Samoa resulting from imports
of canned tuna into the United States from the Federated
States of Micronesia, and the Republic of the Marshall
Islands.
(9) RECONCILIATION OF UNREIMBURSED IMPACT EXPENSES.—
(A) IN GENERAL.—Notwithstanding any other provision
of law, the President, to address previously accrued and
unreimbursed impact expenses, may at the request of the
Governor of Guam or the Governor of the Commonwealth
of the Northern Mariana Islands, reduce, release, or waive
all or part of any amounts owed by the Government of
Guam or the Government of the Commonwealth of the
Northern Mariana Islands (or either government’s autono-
mous agencies or instrumentalities), respectively, to any
department, 
agency, 
independent 
agency, 
office, 
or
instrumentality of the United States.
(B) TERMS AND CONDITIONS.—
(i) SUBSTANTIATION OF IMPACT COSTS.—Not later
than 120 days after the date of the enactment of this
resolution, the Governor of Guam and the Governor
of the Commonwealth of the Northern Mariana Islands
shall each submit to the Secretary of the Interior a
report, prepared in consultation with an independent
accounting firm, substantiating unreimbursed impact
expenses claimed for the period from January 14, 1986,
through September 30, 2003. Upon request of the Sec-
retary of the Interior, the Governor of Guam and the
Governor of the Commonwealth of the Northern Mar-
iana Islands shall submit to the Secretary of the
Interior copies of all documents upon which the report
submitted by that Governor under this clause was
based.
(ii) CONGRESSIONAL NOTIFICATION.—The President
shall notify Congress of his intent to exercise the
authority granted in subparagraph (A).
(iii) CONGRESSIONAL REVIEW AND COMMENT.—Any
reduction, release, or waiver under this Act shall not
take effect until 60 days after the President notifies
Congress of his intent to approve a request of the
Governor of Guam or the Governor of the Common-
wealth of the Northern Mariana Islands. In exercising
his authority under this section and in determining
Effective date.
President.
Deadline.
Reports.
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117 STAT. 2742
PUBLIC LAW 108–188—DEC. 17, 2003
whether to give final approval to a request, the Presi-
dent shall take into consideration comments he may
receive after Congressional review.
(iv) 
EXPIRATION.—The 
authority 
granted 
in
subparagraph (A) shall expire on February 28, 2005.
(10) AUTHORIZATION
OF
APPROPRIATIONS
FOR
GRANTS.—
There are hereby authorized to the Secretary of the Interior
for each of fiscal years 2004 through 2023 such sums as may
be necessary for grants to the governments of Guam, the State
of Hawaii, the Commonwealth of the Northern Mariana Islands,
and American Samoa, as a result of increased demands placed
on educational, social, or public safety services or infrastructure
related to service due to the presence in Guam, Hawaii, the
Commonwealth of the Northern Mariana Islands, and American
Samoa of qualified nonimmigrants from the Federated States
of Micronesia, the Republic of the Marshall Islands, and the
Republic of Palau.
(f) FOREIGN LOANS.—Congress hereby reaffirms the United
States position that the United States Government is not respon-
sible for foreign loans or debt obtained by the Governments of
the Federated States of Micronesia and the Republic of the Marshall
Islands.
(g) SENSE
OF CONGRESS CONCERNING FUNDING
OF PUBLIC
INFRASTRUCTURE.—It is the sense of Congress that not less than
30 percent of the United States annual grant assistance provided
under section 211 of the Compact of Free Association, as amended,
between the Government of the United States of America and
the Government of the Federated States of Micronesia, and not
less than 30 percent of the total amount of section 211 funds
allocated to each of the States of the Federated States of Micronesia,
shall be invested in infrastructure improvements and maintenance
in accordance with section 211(a)(6). It is further the sense of
Congress that not less than 30 percent of the United States annual
grant assistance provided under section 211 of the Compact of
Free Association, as amended, between the Government of the
United States of America and the Government of the Republic
of the Marshall Islands, shall be invested in infrastructure improve-
ments and maintenance in accordance with section 211(d).
(h) REPORTS AND REVIEWS.—
(1) REPORT BY THE PRESIDENT.—Not later than the end
of the first full calendar year following enactment of this resolu-
tion, and not later than December 31 of each year thereafter,
the President shall report to Congress regarding the Federated
States of Micronesia and the Republic of the Marshall Islands,
including but not limited to—
(A) general social, political, and economic conditions,
including estimates of economic growth, per capita income,
and migration rates;
(B) the use and effectiveness of United States financial,
program, and technical assistance;
(C) the status of economic policy reforms including
but not limited to progress toward establishing self-suffi-
cient tax rates;
(D) the status of the efforts to increase investment
including: the rate of infrastructure investment of U.S.
financial assistance under the U.S.-FSM Compact and the
Deadline.
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117 STAT. 2743
PUBLIC LAW 108–188—DEC. 17, 2003
U.S.-RMI Compact; non-U.S. contributions to the trust
funds, and the level of private investment; and
(E) recommendations on ways to increase the effective-
ness of United States assistance and to meet overall eco-
nomic performance objectives, including, if appropriate, rec-
ommendations to Congress to adjust the inflation rate or
to adjust the contributions to the Trust Funds based on
non-U.S. contributions.
(2) REVIEW.—During the year of the fifth, tenth, and fif-
teenth anniversaries of the date of enactment of this resolution,
the Government of the United States shall review the terms
of the respective Compacts and consider the overall nature
and development of the U.S.-FSM and U.S.-RMI relationships
including the topics set forth in subparagraphs (A) through
(E) of paragraph (1). In conducting the reviews, the Government
of the United States shall consider the operating requirements
of the Government of the Federated States of Micronesia and
the Government of the Republic of the Marshall Islands and
their progress in meeting the development objectives set forth
in their respective development plans. The President shall
include in the annual reports to Congress for the years following
the reviews the comments of the Government of the Federated
States of Micronesia and the Government of the Republic of
the Marshall Islands on the topics described in this paragraph,
the President’s response to the comments, the findings resulting
from the reviews, and any recommendations for actions to
respond to such findings.
(3) BY THE COMPTROLLER GENERAL.—Not later than the
date that is three years after the date of enactment of this
joint resolution, and every 5 years thereafter, the Comptroller
General of the United States shall submit to Congress a report
on the Federated States of Micronesia and the Republic of
the Marshall Islands including the topics set forth in para-
graphs (1) (A) through (E) above, and on the effectiveness
of administrative oversight by the United States.
(i) CONSTRUCTION OF SECTION 141(f).—Section 141(f)(2) of the
Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the Fed-
erated States of Micronesia and of the Compact of Free Association,
as amended, between the Government of the United States of
America and the Government of the Republic of the Marshall
Islands, shall be construed as though, after ‘‘may by regulations
prescribe’’, there were included the following: ‘‘, except that any
such regulations that would have a significant effect on the admis-
sion, stay and employment privileges provided under this section
shall not become effective until 90 days after the date of trans-
mission of the regulations to the Committee on Energy and Natural
Resources and the Committee on the Judiciary of the Senate and
the Committee on Resources, the Committee on International Rela-
tions, and the Committee on the Judiciary of the House of Rep-
resentatives’’.
(j) INFLATION ADJUSTMENT.—As of Fiscal Year 2015, if the
United States Gross Domestic Product Implicit Price Deflator aver-
age for Fiscal Years 2009 through 2013 is greater than United
States Gross Domestic Product Implicit Price Deflator average for
Fiscal Years 2004 through 2008 (as reported in the Survey of
Current Business or subsequent publication and compiled by the
Effective date.
Deadline.
President.
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117 STAT. 2744
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Department of Interior), then section 217 of the U.S.-FSM Compact,
paragraph 5 of Article II of the U.S.-FSM Fiscal Procedures Agree-
ment, section 218 of the U.S.-RMI Compact, and paragraph 5 of
Article II of the U.S.-RMI Fiscal Procedures Agreement shall be
construed as if ‘‘the full’’ appeared in place of ‘‘two-thirds of the’’
each place those words appear. If an inflation adjustment is made
under this subsection, the base year for calculating the inflation
adjustment shall be fiscal year 2014.
(k) PARTICIPATION BY SECONDARY SCHOOLS IN THE ARMED SERV-
ICES VOCATIONAL APTITUDE BATTERY (ASVAB) STUDENT TESTING
PROGRAM.—In furtherance of the provisions of Title Three, Article
IV, Section 341 of the U.S.-FSM and the U.S.-RMI Compacts, the
purpose of which is to establish the privilege to volunteer for service
in the U.S. Armed Forces, it is the sense of Congress that, to
facilitate eligibility of FSM and RMI secondary school students
to qualify for such service, the Department of Defense may extend
the Armed Services Vocational Aptitude Battery (ASVAB) Student
Testing Program (STP) and the ASVAB Career Exploration Program
to selected secondary Schools in the FSM and the RMI to the
extent such programs are available to Department of Defense
Dependent Schools located in foreign jurisdictions.
SEC. 105. SUPPLEMENTAL PROVISIONS.
(a) DOMESTIC PROGRAM REQUIREMENTS.—Except as may other-
wise be provided in this joint resolution, all United States Federal
programs and services extended to or operated in the Federated
States of Micronesia or the Republic of the Marshall Islands are
and shall remain subject to all applicable criteria, standards,
reporting requirements, auditing procedures, and other rules and
regulations applicable to such programs when operating in the
United States (including its territories and commonwealths).
(b) RELATIONS WITH THE FEDERATED STATES OF MICRONESIA
AND THE REPUBLIC OF THE MARSHALL ISLANDS.—
(1) Appropriations made pursuant to Article I of Title Two
and subsection (a)(2) of section 221 of article II of Title Two
of the U.S.-FSM Compact and the U.S.-RMI Compact shall
be made to the Secretary of the Interior, who shall have the
authority necessary to fulfill his responsibilities for monitoring
and managing the funds so appropriated consistent with the
U.S.-FSM Compact and the U.S.-RMI Compact, including the
agreements referred to in section 462(b)(4) of the U.S.-FSM
Compact and U.S.-RMI Compact (relating to Fiscal Procedures)
and the agreements referred to in section 462(b)(5) of the U.S.-
FSM Compact and the U.S.-RMI Compact (regarding the Trust
Fund).
(2) Appropriations made pursuant to subsections (a)(1) and
(a)(3) through (6) of section 221 of Article II of Title Two
of the U.S.-FSM Compact and subsection (a)(1) and (a)(3)
through (5) of the U.S.-RMI Compact shall be made directly
to the agencies named in those subsections.
(3) Appropriations for services and programs referred to
in subsection (b) of section 221 of Article II of Title Two of
the U.S.-FSM Compact or U.S.-RMI Compact and appropria-
tions for services and programs referred to in sections 105(f)
and 108(a) of this joint resolution shall be made to the relevant
agencies in accordance with the terms of the appropriations
for such services and programs.
48 USC 1921d.
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117 STAT. 2745
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(4) Federal agencies providing programs and services to
the Federated States of Micronesia and the Republic of the
Marshall Islands shall coordinate with the Secretaries of the
Interior and State regarding provision of such programs and
services. The Secretaries of the Interior and State shall consult
with appropriate officials of the Asian Development Bank and
with the Secretary of the Treasury regarding overall economic
conditions in the Federated States of Micronesia and the
Republic of the Marshall Islands and regarding the activities
of other donors of assistance to the Federated States of Micro-
nesia and the Republic of the Marshall Islands.
(5) United States Government employees in either the Fed-
erated States of Micronesia or the Republic of the Marshall
Islands are subject to the authority of the United States Chief
of Mission, including as elaborated in section 207 of the Foreign
Service Act and the President’s Letter of Instruction to the
United States Chief of Mission and any order or directive
of the President in effect from time to time.
(6) INTERAGENCY GROUP ON FREELY ASSOCIATED STATES’
AFFAIRS.—
(A) IN GENERAL.—The President is hereby authorized
to appoint an Interagency Group on Freely Associated
States’ Affairs to provide policy guidance and recommenda-
tions on implementation of the U.S.-FSM Compact and
the U.S.-RMI Compact to Federal departments and agen-
cies.
(B) SECRETARIES.—It is the sense of Congress that
the Secretary of State and the Secretary of the Interior
shall be represented on the Interagency Group.
(7) UNITED STATES APPOINTEES TO JOINT COMMITTEES.—
(A) JOINT ECONOMIC MANAGEMENT COMMITTEE.—
(i) 
IN
GENERAL.—The 
three 
United 
States
appointees (United States chair plus two members)
to the Joint Economic Management Committee pro-
vided for in section 213 of the U.S.-FSM Compact
and Article III of the U.S.-FSM Fiscal Procedures
Agreement referred to in section 462(b)(4) of the U.S.-
FSM Compact shall be United States Government offi-
cers or employees.
(ii) DEPARTMENTS.—It is the sense of Congress
that 2 of the 3 appointees should be designated from
the Department of State and the Department of the
Interior, and that U.S. officials of the Asian Develop-
ment Bank shall be consulted in order to properly
coordinate U.S. and Asian Development Bank financial,
program, and technical assistance.
(iii) ADDITIONAL SCOPE.—Section 213 of the U.S.-
FSM Compact shall be construed to read as though
the phrase, ‘‘the implementation of economic policy
reforms to encourage investment and to achieve self-
sufficient tax rates,’’ were inserted after ‘‘with par-
ticular focus on those parts of the plan dealing with
the sectors identified in subsection (a) of section 211’’.
(B) JOINT
ECONOMIC
MANAGEMENT
AND
FINANCIAL
ACCOUNTABILITY COMMITTEE.—
(i) 
IN
GENERAL.—The 
three 
United 
States
appointees (United States chair plus two members)
President.
Establishment.
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117 STAT. 2746
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to the Joint Economic Management and Financial
Accountability Committee provided for in section 214
of the U.S.-RMI Compact and Article III of the U.S.-
RMI Fiscal Procedures Agreement referred to in section
462(b)(4) of the U.S.-RMI Compact shall be United
States Government officers or employees.
(ii) DEPARTMENTS.—It is the sense of Congress
that 2 of the 3 appointees should be designated from
the Department of State and the Department of the
Interior, and that U.S. officials of the Asian Develop-
ment Bank shall be consulted in order to properly
coordinate U.S. and Asian Development Bank financial,
program, and technical assistance.
(iii) ADDITIONAL SCOPE.—Section 214 of the U.S.-
RMI Compact shall be construed to read as though
the phrase, ‘‘the implementation of economic policy
reforms to encourage investment and to achieve self-
sufficient tax rates,’’ were inserted after ‘‘with par-
ticular focus on those parts of the framework dealing
with the sectors and areas identified in subsection
(a) of section 211’’.
(8) OVERSIGHT AND COORDINATION.—It is the sense of Con-
gress that the Secretary of State and the Secretary of the
Interior shall ensure that there are personnel resources com-
mitted in the appropriate numbers and locations to ensure
effective oversight of United States assistance, and effective
coordination of assistance among United States agencies and
with other international donors such as the Asian Development
Bank.
(9) The United States voting members (United States chair
plus two or more members) of the Trust Fund Committee
appointed by the Government of the United States pursuant
to Article 7 of the Trust Fund Agreement implementing section
215 of the U.S.-FSM Compact and referred to in section
462(b)(5) of the U.S.-FSM Compact and any alternates des-
ignated by the Government of the United States shall be United
States Government officers or employees. The United States
voting members (United States chair plus two or more mem-
bers) of the Trust Fund Committee appointed by the Govern-
ment of the United States pursuant to Article 7 of the Trust
Fund Agreement implementing section 216 of the U.S.-RMI
Compact and referred to in section 462(b)(5) of the U.S.-RMI
Compact and any alternates designated by the Government
of the United States shall be United States Government officers
or employees. It is the sense of Congress that the appointees
should be designated from the Department of State, the Depart-
ment of the Interior, and the Department of the Treasury.
(10) The Trust Fund Committee provided for in Article
7 of the U.S.-FSM Trust Fund Agreement implementing section
215 of the U.S.-FSM Compact shall be a nonprofit corporation
incorporated under the laws of the District of Columbia. To
the extent that any law, rule, regulation or ordinance of the
District of Columbia, or of any State or political subdivision
thereof in which the Trust Fund Committee is incorporated
or doing business, impedes or otherwise interferes with the
performance of the functions of the Trust Fund Committee
pursuant to this joint resolution, such law, rule, regulation,
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117 STAT. 2747
PUBLIC LAW 108–188—DEC. 17, 2003
or ordinance shall be deemed to be preempted by this joint
resolution. The Trust Fund Committee provided for in Article
7 of the U.S.-RMI Trust Fund Agreement implementing section
216 of the U.S.-RMI Compact shall be a non-profit corporation
incorporated under the laws of the District of Columbia. To
the extent that any law, rule, regulation or ordinance of the
District of Columbia, or of any State or political subdivision
thereof in which the Trust Fund Committee is incorporated
or doing business, impedes or otherwise interferes with the
performance of the functions of the Trust Fund Committee
pursuant to this joint resolution, such law, rule, regulation,
or ordinance shall be deemed to be preempted by this joint
resolution.
(c) 
CONTINUING
TRUST
TERRITORY
AUTHORIZATION.—The
authorization provided by the Act of June 30, 1954, as amended
(68 Stat. 330) shall remain available after the effective date of
the Compact with respect to the Federated States of Micronesia
and the Republic of the Marshall Islands for the following purposes:
(1) Prior to October 1, 1986, for any purpose authorized
by the Compact or the joint resolution of January 14, 1986
(Public Law 99–239).
(2) Transition purposes, including but not limited to,
completion of projects and fulfillment of commitments or obliga-
tions; termination of the Trust Territory Government and termi-
nation of the High Court; health and education as a result
of exceptional circumstances; ex gratia contributions for the
populations of Bikini, Enewetak, Rongelap, and Utrik; and
technical assistance and training in financial management, pro-
gram administration, and maintenance of infrastructure.
(d) SURVIVABILITY.—In furtherance of the provisions of Title
Four, Article V, sections 452 and 453 of the U.S.-FSM Compact
and the U.S.-RMI Compact, any provisions of the U.S.-FSM Com-
pact or the U.S.-RMI Compact which remain effective after the
termination of the U.S.-FSM Compact or U.S.-RMI Compact by
the act of any party thereto and which are affected in any manner
by provisions of this title shall remain subject to such provisions.
(e) NONCOMPLIANCE SANCTIONS; ACTIONS INCOMPATIBLE WITH
UNITED STATES AUTHORITY.—Congress expresses its understanding
that the Governments of the Federated States of Micronesia and
the Republic of the Marshall Islands will not act in a manner
incompatible with the authority and responsibility of the United
States for security and defense matters in or related to the Fed-
erated States of Micronesia or the Republic of the Marshall Islands
pursuant to the U.S.-FSM Compact or the U.S.-RMI Compact,
including the agreements referred to in sections 462(a)(2) of the
U.S.-FSM Compact and 462(a)(5) of the U.S.-RMI Compact. Con-
gress further expresses its intention that any such act on the
part of either such Government will be viewed by the United
States as a material breach of the U.S.-FSM Compact or U.S.-
RMI Compact. The Government of the United States reserves the
right in the event of such a material breach of the U.S.-FSM
Compact by the Government of the Federated States of Micronesia
or the U.S.-RMI Compact by the Government of the Republic of
the Marshall Islands to take action, including (but not limited
to) the suspension in whole or in part of the obligations of the
Government of the United States to that Government.
(f) CONTINUING PROGRAMS AND LAWS.—
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117 STAT. 2748
PUBLIC LAW 108–188—DEC. 17, 2003
(1) FEDERATED STATES OF MICRONESIA AND REPUBLIC OF
THE MARSHALL ISLANDS.—In addition to the programs and serv-
ices set forth in section 221 of the Compact, and pursuant
to section 222 of the Compact, the programs and services of
the following agencies shall be made available to the Federated
States of Micronesia and to the Republic of the Marshall
Islands:
(A) CONTINUATION
OF
THE
PROGRAMS
AND
SERVICES
OF
THE
FEDERAL
EMERGENCY
MANAGEMENT
AGENCY.—
Except as provided in clauses (ii) and (iii), the programs
and services of the Department of Homeland Security, Fed-
eral Emergency Management Agency shall continue to be
available to the Federated States of Micronesia and the
Republic of the Marshall Islands to the same extent as
such programs and services were available in fiscal year
2003.
(i) Paragraph (a)(6) of section 221 of the U.S.-
FSM Compact and paragraph (a)(5) of the U.S.-RMI
Compact shall each be construed as though the para-
graph reads as follows: ‘‘the Department of Homeland
Security, United States Federal Emergency Manage-
ment Agency.’’.
(ii) Subsection (d) of section 211 of the U.S.-FSM
Compact and subsection (e) of section 211 of the U.S.-
RMI Compact shall each be construed as though the
subsection reads as follows: ‘‘Not more than $200,000
(as adjusted for inflation pursuant to section 217 of
the U.S.-FSM Compact and section 218 of the U.S.-
RMI Compact) shall be made available by the Secretary
of the Interior to the Department of Homeland Secu-
rity, Federal Emergency Management Agency to facili-
tate the activities of the Federal Emergency Manage-
ment Agency in accordance with and to the extent
provided in the Federal Programs and Services Agree-
ment.’’.
(iii) The Secretary of State, in consultation with
the Department of Homeland Security and the Federal
Emergency Management Agency, shall immediately
undertake negotiations with the Government of the
Federated States of Micronesia and the Government
of the Republic of the Marshall Islands regarding dis-
aster assistance and shall report to the appropriate
committees of Congress no later than June 30, 2004,
on the outcome of such negotiations, including rec-
ommendations for changes to law regarding disaster
assistance under the U.S.-FSM Compact and the U.S.-
RMI Compact, and including subsidiary agreements
as needed to implement such changes to law. If an
agreement is not concluded, and legislation enacted
which reflects such agreement, before the date which
is five years after the date of enactment of this Joint
Resolution, the following provisions shall apply:
‘‘Paragraph (a)(6) of section 221 of the U.S.-FSM
Compact and paragraph (a)(5) of section 221 of the
U.S.-RMI Compact shall each be construed and applied
as if each provision reads as follows:
Applicability.
Reports.
Deadline.
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117 STAT. 2749
PUBLIC LAW 108–188—DEC. 17, 2003
‘‘The U.S. Agency for International Development
shall be responsible for the provision of emergency
and disaster relief assistance in accordance with its
statutory authorities, regulations and policies. The
Republic of the Marshall Islands and the Federated
States of Micronesia may additionally request that the
President make an emergency or major disaster dec-
laration. If the President declares an emergency or
major disaster, the Department of Homeland Security
(DHS), the Federal Emergency Management Agency
(FEMA) and the U.S. Agency for International Develop-
ment shall jointly (a) assess the damage caused by
the emergency or disaster and (b) prepare a reconstruc-
tion plan including an estimate of the total amount
of Federal resources that are needed for reconstruction.
Pursuant to an interagency agreement, FEMA shall
transfer funds from the Disaster Relief Fund in the
amount of the estimate, together with an amount to
be determined for administrative expenses, to the U.S.
Agency for International Development, which shall
carry out reconstruction activities in the Republic of
the Marshall Islands and the Federated States of
Micronesia in accordance with the reconstruction plan.
For purposes of Disaster Relief Fund appropriations,
the funding of the activities to be carried out pursuant
to this paragraph shall be deemed to be necessary
expenses in carrying out the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.).
‘‘DHS may provide to the Republic of the Marshall
Islands and the Federated States of Micronesia
preparedness grants to the extent that such assistance
is available to the States of the United States. Funding
for this assistance may be made available from appro-
priations made to DHS for preparedness activities.’’.
(B) TREATMENT OF ADDITIONAL PROGRAMS.—
(i) CONSULTATION.—The United States appointees
to the committees established pursuant to section 213
of the U.S.-FSM Compact and section 214 of the U.S.-
RMI Compact shall consult with the Secretary of Edu-
cation regarding the objectives, use, and monitoring
of United States financial, program, and technical
assistance made available for educational purposes.
(ii) CONTINUING PROGRAMS.—The Government of
the United States—
(I) shall continue to make available to the
Federated States of Micronesia and the Republic
of the Marshall Islands for fiscal years 2004
through 2023, the services to individuals eligible
for such services under the Individuals with
Disabilities Education Act (20 U.S.C. 1400 et seq.)
to the extent that such services continue to be
available to individuals in the United States; and
(II) shall continue to make available to eligible
institutions in the Federated States of Micronesia
and the Republic of the Marshall Islands, and
to students enrolled in such institutions, and in
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117 STAT. 2750
PUBLIC LAW 108–188—DEC. 17, 2003
institutions in the United States and its territories,
for fiscal years 2004 through 2023, grants under
subpart 1 of part A of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a et seq.) to
the extent that such grants continue to be avail-
able to institutions and students in the United
States.
(iii) SUPPLEMENTAL EDUCATION GRANTS.—In lieu
of eligibility for appropriations under part A of title
I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311 et seq.), title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.), other
than subtitle C of that Act (29 U.S.C. 2881 et seq.)
(Job Corps), title II of the Workforce Investment Act
of 1998 (20 U.S.C. 9201 et seq.; commonly known as
the Adult Education and Family Literacy Act), title
I of the Carl D. Perkins Vocational and Technical
Education Act of 1998 (20 U.S.C. 2321 et seq.), the
Head Start Act (42 U.S.C. 9831 et seq.), and subpart
3 of part A, and part C, of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070b et seq., 42
U.S.C. 2751 et seq.), there are authorized to be appro-
priated to the Secretary of Education to supplement
the education grants under section 211(a)(1) of the
U.S.-FSM Compact and section 211(a)(1) of the U.S.-
RMI Compact, respectively, the following amounts:
(I) $12,230,000 for the Federated States of
Micronesia for fiscal year 2005 and an equivalent
amount, as adjusted for inflation under section
217 of the U.S.-FSM Compact, for each of fiscal
years 2005 through 2023; and
(II) $6,100,000 for the Republic of the Marshall
Islands for fiscal year 2005 and an equivalent
amount, as adjusted for inflation under section
218 of the U.S.-RMI Compact, for each of fiscal
years 2005 through 2023,
except that citizens of the Federated States of Micro-
nesia and the Republic of the Marshall Islands who
attend an institution of higher education in the United
States or its territories, the Federated States of Micro-
nesia, or the Republic of the Marshall Islands on the
date of enactment of this joint resolution may continue
to receive assistance under such subpart 3 of part
A or part C, for not more than 4 academic years
after such date to enable such citizens to complete
their program of study.
(iv) FISCAL
PROCEDURES.—Appropriations made
pursuant to clause (iii) shall be used and monitored
in accordance with an agreement between the Sec-
retary of Education, the Secretary of Labor, the Sec-
retary of Health and Human Services, and the Sec-
retary of the Interior, and in accordance with the
respective Fiscal Procedures Agreements referred to
in section 462(b)(4) of the U.S.-FSM Compact and sec-
tion 462(b)(4) of the U.S.-RMI Compact. The agreement
between the Secretary of Education, the Secretary of
Labor, the Secretary of Health and Human Services,
Deadline.
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117 STAT. 2751
PUBLIC LAW 108–188—DEC. 17, 2003
and the Secretary of the Interior shall provide for
the transfer, not later than 60 days after the appropria-
tions made pursuant to clause (iii) become available
to the Secretary of Education, the Secretary of Labor,
and the Secretary of Health and Human Services, from
the Secretary of Education, the Secretary of Labor,
and the Secretary of Health and Human Services, to
the Secretary of the Interior for disbursement.
(v) FORMULA EDUCATION GRANTS.—For fiscal years
2005 through 2023, except as provided in clause (ii)
and the exception provided under clause (iii), the
Governments of the Federated States of Micronesia
and the Republic of the Marshall Islands shall not
receive any grant under any formula-grant program
administered by the Secretary of Education or the Sec-
retary of Labor, nor any grant provided through the
Head Start Act (42 U.S.C. 9831 et seq.) administered
by the Secretary of Health and Human Services.
(vi) TRANSITION.—For fiscal year 2004, the Govern-
ments of the Federated States of Micronesia and the
Republic of the Marshall Islands shall continue to be
eligible for appropriations and to receive grants under
the provisions of law specified in clauses (ii) and (iii).
(vii) 
TECHNICAL
ASSISTANCE.—The 
Federated
States of Micronesia and the Republic of the Marshall
Islands may request technical assistance from the Sec-
retary of Education, the Secretary of Health and
Human Services, or the Secretary of Labor the terms
of which, including reimbursement, shall be negotiated
with the participation of the appropriate cabinet officer
for inclusion in the Federal Programs and Services
Agreement.
(viii) CONTINUED
ELIGIBILITY
FOR
COMPETITIVE
GRANTS.—The Governments of the Federated States
of Micronesia and the Republic of the Marshall Islands
shall continue to be eligible for competitive grants
administered by the Secretary of Education, the Sec-
retary of Health and Human Services, and the Sec-
retary of Labor to the extent that such grants continue
to be available to State and local governments in the
United States.
(ix) APPLICABILITY.—The Republic of Palau shall
remain eligible for appropriations and to receive grants
under the provisions of law specified in clauses (ii)
and (iii) until the end of fiscal year 2007, to the extent
the Republic of Palau was so eligible under such provi-
sions in fiscal year 2003.
(C) The Legal Services Corporation.
(D) The Public Health Service.
(E) The Rural Housing Service (formerly, the Farmers
Home Administration) in the Marshall Islands and each
of the four States of the Federated States of Micronesia:
Provided, That in lieu of continuation of the program in
the Federated States of Micronesia, the President may
agree to transfer to the Government of the Federated States
of Micronesia without cost, the portfolio of the Rural
Housing Service applicable to the Federated States of
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117 STAT. 2752
PUBLIC LAW 108–188—DEC. 17, 2003
Micronesia and provide such technical assistance in
management of the portfolio as may be requested by the
Federated States of Micronesia.
(2) TORT
CLAIMS.—The provisions of section 178 of the
U.S.-FSM Compact and the U.S.-RMI Compact regarding settle-
ment and payment of tort claims shall apply to employees
of any Federal agency of the Government of the United States
(and to any other person employed on behalf of any Federal
agency of the Government of the United States on the basis
of a contractual, cooperative, or similar agreement) which pro-
vides any service or carries out any other function pursuant
to or in furtherance of any provisions of the U.S.-FSM Compact
or the U.S.-RMI Compact or this joint resolution, except for
provisions of Title Three of the Compact and of the subsidiary
agreements related to such Title, in such area to which such
Agreement formerly applied.
(3) PCB CLEANUP.—The programs and services of the
Environmental Protection Agency regarding PCBs shall, to the
extent applicable, as appropriate, and in accordance with
applicable law, be construed to be made available to such
islands for the cleanup of PCBs imported prior to 1987. The
Secretary of the Interior and the Secretary of Defense shall
cooperate and assist in any such cleanup activities.
(g) COLLEGE OF MICRONESIA.—Until otherwise provided by Act
of Congress, or until termination of the U.S.-FSM Compact and
the U.S.-RMI Compact, the College of Micronesia shall retain its
status as a land-grant institution and its eligibility for all benefits
and programs available to such land-grant institutions.
(h) TRUST TERRITORY DEBTS
TO U.S. FEDERAL AGENCIES.—
Neither the Government of the Federated States of Micronesia
nor the Government of the Marshall Islands shall be required
to pay to any department, agency, independent agency, office, or
instrumentality of the United States any amounts owed to such
department, agency, independent agency, office, or instrumentality
by the Government of the Trust Territory of the Pacific Islands
as of the effective date of the Compact. There is authorized to
be appropriated such sums as may be necessary to carry out the
purposes of this subsection.
(i) JUDICIAL TRAINING.—
(1) IN GENERAL.—In addition to amounts provided under
section 211(a)(4) of the U.S.-FSM Compact and the U.S.-RMI
Compact, the Secretary of the Interior shall annually provide
$300,000 for the training of judges and officials of the judiciary
in the Federated States of Micronesia and the Republic of
the Marshall Islands in cooperation with the Pacific Islands
Committee of the Ninth Circuit Judicial Council and in accord-
ance with and to the extent provided in the Federal Programs
and Services Agreement and the Fiscal Procedure Agreement,
as appropriate.
(2) AUTHORIZATION
AND
CONTINUING
APPROPRIATION.—
There is hereby authorized and appropriated to the Secretary
of the Interior, out of any funds in the Treasury not otherwise
appropriated, to remain available until expended, for each fiscal
year from 2004 through 2023, $300,000, as adjusted for inflation
under section 218 of the U.S.-FSM Compact and the U.S.-
RMI Compact, to carry out the purposes of this section.
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117 STAT. 2753
PUBLIC LAW 108–188—DEC. 17, 2003
(j) TECHNICAL ASSISTANCE.—Technical assistance may be pro-
vided pursuant to section 224 of the U.S.-FSM Compact or the
U.S.-RMI Compact by Federal agencies and institutions of the
Government of the United States to the extent such assistance
may be provided to States, territories, or units of local government.
Such assistance by the Forest Service, the Natural Resources Con-
servation Service, the Fish and Wildlife Service, the National
Marine Fisheries Service, the United States Coast Guard, and
the Advisory Council on Historic Preservation, the Department
of the Interior, and other agencies providing assistance under the
National Historic Preservation Act (80 Stat. 915; 16 U.S.C. 470–
470t), shall be on a nonreimbursable basis. During the period the
U.S.-FSM Compact and the U.S.-RMI Compact are in effect, the
grant programs under the National Historic Preservation Act shall
continue to apply to the Federated States of Micronesia and the
Republic of the Marshall Islands in the same manner and to the
same extent as prior to the approval of the Compact. Any funds
provided pursuant to sections 102(a), 103(a), 103(b), 103(f), 103(g),
103(h), 103(j), 105(c), 105(g), 105(h), 105(i), 105(j), 105(k), 105(l),
and 105(m) of this joint resolution shall be in addition to and
not charged against any amounts to be paid to either the Federated
States of Micronesia or the Republic of the Marshall Islands pursu-
ant to the U.S.-FSM Compact, the U.S.-RMI Compact, or their
related subsidiary agreements.
(k) PRIOR SERVICE BENEFITS PROGRAM.—Notwithstanding any
other provision of law, persons who on January 1, 1985, were
eligible to receive payment under the Prior Service Benefits Pro-
gram established within the Social Security System of the Trust
Territory of the Pacific Islands because of their services performed
for the United States Navy or the Government of the Trust Territory
of the Pacific Islands prior to July 1, 1968, shall continue to receive
such payments on and after the effective date of the Compact.
(l) INDEFINITE LAND USE PAYMENTS.—There are authorized
to be appropriated such sums as may be necessary to complete
repayment by the United States of any debts owed for the use
of various lands in the Federated States of Micronesia and the
Marshall Islands prior to January 1, 1985.
(m) COMMUNICABLE DISEASE CONTROL PROGRAM.—There are
authorized to be appropriated for grants to the Government of
the Federated States of Micronesia, the Government of the Republic
of the Marshall Islands, and the governments of the affected juris-
dictions, such sums as may be necessary for purposes of establishing
or continuing programs for the control and prevention of commu-
nicable diseases, including (but not limited to) cholera, tuberculosis,
and Hansen’s Disease. The Secretary of the Interior shall assist
the Government of the Federated States of Micronesia, the Govern-
ment of the Republic of the Marshall Islands and the governments
of the affected jurisdictions in designing and implementing such
a program.
(n) USER FEES.—Any person in the Federated States of Micro-
nesia or the Republic of the Marshall Islands shall be liable for
user fees, if any, for services provided in the Federated States
of Micronesia or the Republic of the Marshall Islands by the Govern-
ment of the United States to the same extent as any person in
the United States would be liable for fees, if any, for such services
in the United States.
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117 STAT. 2754
PUBLIC LAW 108–188—DEC. 17, 2003
(o) TREATMENT OF JUDGMENTS OF COURTS OF THE FEDERATED
STATES OF MICRONESIA, THE REPUBLIC OF THE MARSHALL ISLANDS,
AND
THE REPUBLIC
OF PALAU.—No judgment, whenever issued,
of a court of the Federated States of Micronesia, the Republic
of the Marshall Islands, or the Republic of Palau, against the
United States, its departments and agencies, or officials of the
United States or any other individuals acting on behalf of the
United States within the scope of their official duty, shall be honored
by the United States, or be subject to recognition or enforcement
in a court in the United States, unless the judgment is consistent
with the interpretation by the United States of international agree-
ments relevant to the judgment. In determining the consistency
of a judgment with an international agreement, due regard shall
be given to assurances made by the Executive Branch to Congress
of the United States regarding the proper interpretation of the
international agreement.
(p) 
ESTABLISHMENT
OF
TRUST
FUNDS; 
EXPEDITION
OF
PROCESS.—
(1) IN
GENERAL.—The Trust Fund Agreement executed
pursuant to the U.S.-FSM Compact and the Trust Fund Agree-
ment executed pursuant to the U.S.-RMI Compact each provides
for the establishment of a trust fund.
(2) METHOD OF ESTABLISHMENT.—The trust fund may be
established by—
(A) creating a new legal entity to constitute the trust
fund; or
(B) assuming control of an existing legal entity
including, without limitation, a trust fund or other legal
entity that was established by or at the direction of the
Government of the United States, the Government of the
Federated States of Micronesia, the Government of the
Republic of the Marshall Islands, or otherwise for the pur-
pose of facilitating or expediting the establishment of the
trust fund pursuant to the applicable Trust Fund Agree-
ment.
(3) OBLIGATIONS.—For the purpose of expediting the
commencement of operations of a trust fund under either Trust
Fund Agreement, the trust fund may, but shall not be obligated
to, assume any obligations of an existing legal entity and take
assignment of any contract or other agreement to which the
existing legal entity is party.
(4) ASSISTANCE.—Without limiting the authority that the
United 
States 
Government 
may 
otherwise 
have 
under
applicable law, the United States Government may, but shall
not be obligated to, provide financial, technical, or other assist-
ance directly or indirectly to the Government of the Federated
States of Micronesia or the Government of the Republic of
the Marshall Islands for the purpose of establishing and oper-
ating a trust fund or other legal entity that will solicit bids
from, and enter into contracts with, parties willing to serve
in such capacities as trustee, depositary, money manager, or
investment advisor, with the intention that the contracts will
ultimately be assumed by and assigned to a trust fund estab-
lished pursuant to a Trust Fund Agreement.
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PUBLIC LAW 108–188—DEC. 17, 2003
SEC. 106. CONSTRUCTION CONTRACT ASSISTANCE.
(a) ASSISTANCE TO U.S. FIRMS.—In order to assist the Govern-
ments of the Federated States of Micronesia and of the Republic
of the Marshall Islands through private sector firms which may
be awarded contracts for construction or major repair of capital
infrastructure within the Federated States of Micronesia or the
Republic of the Marshall Islands, the United States shall consult
with the Governments of the Federated States of Micronesia and
the Republic of the Marshall Islands with respect to any such
contracts, and the United States shall enter into agreements with
such firms whereby such firms will, consistent with applicable
requirements of such Governments—
(1) to the maximum extent possible, employ citizens of
the Federated States of Micronesia and the Republic of the
Marshall Islands;
(2) to the extent that necessary skills are not possessed
by citizens of the Federated States of Micronesia and the
Republic of the Marshall Islands, provide on the job training,
with particular emphasis on the development of skills relating
to operation of machinery and routine and preventative mainte-
nance of machinery and other facilities; and
(3) provide specific training or other assistance in order
to enable the Government to engage in long-term maintenance
of infrastructure.
Assistance by such firms pursuant to this section may not exceed
20 percent of the amount of the contract and shall be made available
only to such firms which meet the definition of United States
firm under the nationality rule for suppliers of services of the
Agency for International Development (hereafter in this section
referred to as ‘‘United States firms’’). There are authorized to be
appropriated such sums as may be necessary for the purposes
of this subsection.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to cover any
additional costs incurred by the Government of the Federated States
of Micronesia or the Republic of the Marshall Islands if such
Governments, pursuant to an agreement entered into with the
United States, apply a preference on the award of contracts to
United States firms, provided that the amount of such preference
does not exceed 10 percent of the amount of the lowest qualified
bid from a non-United States firm for such contract.
SEC. 107. PROHIBITION.
All laws governing conflicts of interest and post-employment
of Federal employees shall apply to the implementation of this
Act.
SEC. 108. COMPENSATORY ADJUSTMENTS.
(a) ADDITIONAL PROGRAMS AND SERVICES.—In addition to the
programs and services set forth in section 221 of the U.S.-FSM
Compact and the U.S.-RMI Compact, and pursuant to section 222
of the U.S.-FSM Compact and the U.S.-RMI Compact, the services
and programs of the following United States agencies shall be
made available to the Federated States of Micronesia and the
Republic of the Marshall Islands: the Small Business Administra-
tion, Economic Development Administration, the Rural Utilities
48 USC 1921g.
Applicability.
48 USC 1921f.
48 USC 1921e.
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Services (formerly Rural Electrification Administration); the pro-
grams and services of the Department of Labor under subtitle
C of title I of the Workforce Investment Act of 1998 (29 U.S.C.
2881 et seq.; relating to Job Corps); and the programs and services
of the Department of Commerce relating to tourism and to marine
resource development.
(b) FURTHER AMOUNTS.—
(1) The joint resolution of January 14, 1986 (Public Law
99–239) provided that the governments of the Federated States
of Micronesia and the Marshall Islands may submit to Congress
reports concerning the overall financial and economic impacts
on such areas resulting from the effect of title IV of that
joint resolution upon Title Two of the Compact. There were
authorized to be appropriated for fiscal years beginning after
September 30, 1990, such amounts as necessary, but not to
exceed $40,000,000 for the Federated States of Micronesia and
$20,000,000 for the Marshall Islands, as provided in appropria-
tion acts, to further compensate the governments of such islands
(in addition to the compensation provided in subsections (a)
and (b) of section 111 of the joint resolution of January 14,
1986 (Public Law 99–239)) for adverse impacts, if any, on
the finances and economies of such areas resulting from the
effect of title IV of that joint resolution upon Title Two of
the Compact. The joint resolution of January 14, 1986 (Public
Law 99–239) further provided that at the end of the initial
fifteen-year term of the Compact, should any portion of the
total amount of funds authorized in section 111 of that resolu-
tion not have been appropriated, such amount not yet appro-
priated may be appropriated, without regard to divisions
between amounts authorized in section 111 for the Federated
States of Micronesia and for the Marshall Islands, based on
either or both such government’s showing of such adverse
impact, if any, as provided in that subsection.
(2) The governments of the Federated States of Micronesia
and the Republic of the Marshall Islands may each submit
no more than one report or request for further compensation
under section 111 of the joint resolution of January 14, 1986
(Public Law 99–239) and any such report or request must
be submitted by September 30, 2009. Only adverse economic
effects occurring during the initial 15-year term of the Compact
may be considered for compensation under section 111 of the
joint resolution of January 14, 1986 (Public Law 99–239).
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION.
(a) There are authorized and appropriated to the Department
of the Interior, out of any funds in the Treasury not otherwise
appropriated, to remain available until expended, such sums as
are necessary to carry out the purposes of sections 105(f)(1) and
105(i) of this Act, sections 211, 212(b), 215, and 217 of the U.S.-
FSM Compact, and sections 211, 212, 213(b), 216, and 218 of
the U.S.-RMI Compact, in this and subsequent years.
(b) There are authorized to be appropriated to the Departments,
agencies, and instrumentalities named in paragraphs (1) and (3)
through (6) of section 221(a) of the U.S.-FSM Compact and para-
graphs (1) and (3) through (5) of section 221(a) of the U.S.-RMI
Compact, such sums as are necessary to carry out the purposes
48 USC 1921h.
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of sections 221(a) of the U.S.-FSM Compact and the U.S.-RMI
Compact, to remain available until expended.
SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED STATES OF
MICRONESIA, 
THE 
REPUBLIC 
OF 
THE 
MARSHALL
ISLANDS, AND THE REPUBLIC OF PALAU EMPLOYED BY
THE GOVERNMENT OF THE UNITED STATES IN THE CON-
TINENTAL UNITED STATES.
Section 605 of Public Law 107–67 (the Treasury and General
Government Appropriations Act, 2002) is amended by striking ‘‘or
the Republic of the Philippines,’’ in the last sentence and inserting
the following: ‘‘the Republic of the Philippines, the Federated States
of Micronesia, the Republic of the Marshall Islands, or the Republic
of Palau,’’.
TITLE II—COMPACTS OF FREE ASSOCIA-
TION WITH THE FEDERATED STATES
OF MICRONESIA AND THE REPUBLIC
OF THE MARSHALL ISLANDS
SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE FEDERATED STATES OF
MICRONESIA AND BETWEEN THE GOVERNMENT OF THE
UNITED STATES OF AMERICA AND THE GOVERNMENT
OF THE REPUBLIC OF THE MARSHALL ISLANDS.
(a) COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT
OF
THE FEDERATED STATES
OF MICRONESIA.—The
Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the Fed-
erated States of Micronesia is as follows:
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE FEDERATED STATES OF
MICRONESIA
Affirming that their Governments and their relationship as
Governments are founded upon respect for human rights and funda-
mental freedoms for all, and that the people of the Federated
States of Micronesia have the right to enjoy self-government; and
Affirming the common interests of the United States of America
and the Federated States of Micronesia in creating and maintaining
their close and mutually beneficial relationship through the free
and voluntary association of their respective Governments; and
Affirming the interest of the Government of the United States
in promoting the economic advancement and budgetary self-reliance
of the Federated States of Micronesia; and
Recognizing that their relationship until the entry into force
on November 3, 1986 of the Compact was based upon the Inter-
national Trusteeship System of the United Nations Charter, and
in particular Article 76 of the Charter; and that pursuant to Article
76 of the Charter, the people of the Federated States of Micronesia
48 USC 1921
note.
5 USC 3101 note.
5 USC 3101 note.
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have progressively developed their institutions of self-government,
and that in the exercise of their sovereign right to self-determination
they, through their freely-expressed wishes, have adopted a Con-
stitution appropriate to their particular circumstances; and
Recognizing that the Compact reflected their common desire
to terminate the Trusteeship and establish a government-to-govern-
ment relationship which was in accordance with the new political
status based on the freely expressed wishes of the people of the
Federated States of Micronesia and appropriate to their particular
circumstances; and
Recognizing that the people of the Federated States of Micro-
nesia have and retain their sovereignty and their sovereign right
to self-determination and the inherent right to adopt and amend
their own Constitution and form of government and that the
approval of the entry of the Government of the Federated States
of Micronesia into the Compact by the people of the Federated
States of Micronesia constituted an exercise of their sovereign right
to self-determination; and
Recognizing the common desire of the people of the United
States and the people of the Federated States of Micronesia to
maintain their close government-to-government relationship, the
United States and the Federated States of Micronesia:
NOW, THEREFORE, MUTUALLY AGREE to continue and
strengthen their relationship of free association by amending the
Compact, which continues to provide a full measure of self-govern-
ment for the people of the Federated States of Micronesia; and
FURTHER AGREE that the relationship of free association
derives from and is as set forth in this Compact, as amended,
by the Governments of the United States and the Federated States
of Micronesia; and that, during such relationship of free association,
the respective rights and responsibilities of the Government of
the United States and the Government of the Federated States
of Micronesia in regard to this relationship of free association
derive from and are as set forth in this Compact, as amended.
TITLE ONE
GOVERNMENTAL RELATIONS
Article I
Self-Government
Section 111
The people of the Federated States of Micronesia, acting
through the Government established under their Constitution, are
self-governing.
Article II
Foreign Affairs
Section 121
(a) The Government of the Federated States of Micronesia
has the capacity to conduct foreign affairs and shall do so in
its own name and right, except as otherwise provided in this Com-
pact, as amended.
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(b) The foreign affairs capacity of the Government of the Fed-
erated States of Micronesia includes:
(1) the conduct of foreign affairs relating to law of the
sea and marine resources matters, including the harvesting,
conservation, exploration or exploitation of living and non-living
resources from the sea, seabed or subsoil to the full extent
recognized under international law;
(2) the conduct of its commercial, diplomatic, consular,
economic, trade, banking, postal, civil aviation, communications,
and cultural relations, including negotiations for the receipt
of developmental loans and grants and the conclusion of
arrangements with other governments and international and
intergovernmental organizations, including any matters spe-
cially benefiting its individual citizens.
(c) The Government of the United States recognizes that the
Government of the Federated States of Micronesia has the capacity
to enter into, in its own name and right, treaties and other inter-
national agreements with governments and regional and inter-
national organizations.
(d) In the conduct of its foreign affairs, the Government of
the Federated States of Micronesia confirms that it shall act in
accordance with principles of international law and shall settle
its international disputes by peaceful means.
Section 122
The Government of the United States shall support applications
by the Government of the Federated States of Micronesia for mem-
bership or other participation in regional or international organiza-
tions as may be mutually agreed.
Section 123
(a) In recognition of the authority and responsibility of the
Government of the United States under Title Three, the Govern-
ment of the Federated States of Micronesia shall consult, in the
conduct of its foreign affairs, with the Government of the United
States.
(b) In recognition of the foreign affairs capacity of the Govern-
ment of the Federated States of Micronesia, the Government of
the United States, in the conduct of its foreign affairs, shall consult
with the Government of the Federated States of Micronesia on
matters that the Government of the United States regards as
relating to or affecting the Government of the Federated States
of Micronesia.
Section 124
The Government of the United States may assist or act on
behalf of the Government of the Federated States of Micronesia
in the area of foreign affairs as may be requested and mutually
agreed from time to time. The Government of the United States
shall not be responsible to third parties for the actions of the
Government of the Federated States of Micronesia undertaken with
the assistance or through the agency of the Government of the
United States pursuant to this section unless expressly agreed.
Section 125
The Government of the United States shall not be responsible
for nor obligated by any actions taken by the Government of the
Federated States of Micronesia in the area of foreign affairs, except
as may from time to time be expressly agreed.
Section 126
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At the request of the Government of the Federated States
of Micronesia and subject to the consent of the receiving state,
the Government of the United States shall extend consular assist-
ance on the same basis as for citizens of the United States to
citizens of the Federated States of Micronesia for travel outside
the Federated States of Micronesia, the United States and its
territories and possessions.
Section 127
Except as otherwise provided in this Compact, as amended,
or its related agreements, all obligations, responsibilities, rights
and benefits of the Government of the United States as Admin-
istering Authority which resulted from the application pursuant
to the Trusteeship Agreement of any treaty or other international
agreement to the Trust Territory of the Pacific Islands on November
2, 1986, are, as of that date, no longer assumed and enjoyed by
the Government of the United States.
Article III
Communications
Section 131
(a) The Government of the Federated States of Micronesia
has full authority and responsibility to regulate its domestic and
foreign communications, and the Government of the United States
shall provide communications assistance as mutually agreed.
(b) On May 24, 1993, the Government of the Federated States
of Micronesia elected to undertake all functions previously per-
formed by the Government of the United States with respect to
domestic and foreign communications, except for those functions
set forth in a separate agreement entered into pursuant to this
section of the Compact, as amended.
Section 132
The Government of the Federated States of Micronesia shall
permit the Government of the United States to operate tele-
communications services in the Federated States of Micronesia
to the extent necessary to fulfill the obligations of the Government
of the United States under this Compact, as amended, in accordance
with the terms of separate agreements entered into pursuant to
this section of the Compact, as amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relationship that
exists between the United States and the Federated States of Micro-
nesia, under the Compact, as amended, any person in the following
categories may be admitted to, lawfully engage in occupations,
and establish residence as a nonimmigrant in the United States
and its territories and possessions (the ‘‘United States’’) without
regard to paragraph (5) or (7)(B)(i)(II) of section 212(a) of the
Immigration and Nationality Act, as amended, 8 U.S.C. 1182(a)(5)
or (7)(B)(i)(II):
(1) a person who, on November 2, 1986, was a citizen
of the Trust Territory of the Pacific Islands, as defined in
Title 53 of the Trust Territory Code in force on January 1,
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117 STAT. 2761
PUBLIC LAW 108–188—DEC. 17, 2003
1979, and has become and remains a citizen of the Federated
States of Micronesia;
(2) a person who acquires the citizenship of the Federated
States of Micronesia at birth, on or after the effective date
of the Constitution of the Federated States of Micronesia;
(3) an immediate relative of a person referred to in para-
graphs (1) or (2) of this section, provided that such immediate
relative is a naturalized citizen of the Federated States of
Micronesia who has been an actual resident there for not less
than five years after attaining such naturalization and who
holds a certificate of actual residence, and further provided,
that, in the case of a spouse, such spouse has been married
to the person referred to in paragraph (1) or (2) of this section
for at least five years, and further provided, that the Govern-
ment of the United States is satisfied that such naturalized
citizen meets the requirement of subsection (b) of section 104
of Public Law 99–239 as it was in effect on the day prior
to the effective date of this Compact, as amended;
(4) a naturalized citizen of the Federated States of Micro-
nesia who was an actual 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 included in a list furnished by the Govern-
ment of the Federated States of Micronesia to the Government
of the United States no later than the effective date of the
Compact, as amended, in form and content acceptable to the
Government of the United States, provided, that the Govern-
ment of the United States is satisfied that such naturalized
citizen meets the requirement of subsection (b) of section 104
of Public Law 99–239 as it was in effect on the day prior
to the effective date of this Compact, as amended; or
(5) an immediate relative of a citizen of the Federated
States of Micronesia, regardless of the immediate relative’s
country of citizenship or period of residence in the Federated
States of Micronesia, if the citizen of the Federated States
of Micronesia is serving on active duty in any branch of the
United States Armed Forces, or in the active reserves.
(b) Notwithstanding subsection (a) of this section, a person
who is coming to the United States pursuant to an adoption outside
the United States, or for the purpose of adoption in the United
States, is ineligible for admission under the Compact and the Com-
pact, as amended. This subsection shall apply to any person who
is or was an applicant for admission to the United States on
or after March 1, 2003, including any applicant for admission in
removal proceedings (including appellate proceedings) on or after
March 1, 2003, regardless of the date such proceedings were com-
menced. This subsection shall have no effect on the ability of
the Government of the United States or any United States State
or local government to commence or otherwise take any action
against any person or entity who has violated any law relating
to the adoption of any person.
(c) Notwithstanding subsection (a) of this section, no person
who has been or is granted citizenship in the Federated States
of Micronesia, or has been or is issued a Federated States of
Micronesia passport pursuant to any investment, passport sale,
or similar program has been or shall be eligible for admission
Applicability.
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to the United States under the Compact or the Compact, as
amended.
(d) A person admitted to the United States under the Compact,
or the Compact, as amended, shall be considered to have the permis-
sion of the Government of the United States to accept employment
in the United States. An unexpired Federated States of Micronesia
passport with unexpired documentation issued by the Government
of the United States evidencing admission under the Compact or
the Compact, as amended, shall be considered to be documentation
establishing identity and employment authorization under section
274A(b)(1)(B) of the Immigration and Nationality Act, as amended,
8 U.S.C. 1324a(b)(1)(B). The Government of the United States will
take reasonable and appropriate steps to implement and publicize
this provision, and the Government of the Federated States of
Micronesia will also take reasonable and appropriate steps to pub-
licize this provision.
(e) For purposes of the Compact and the Compact, as amended:
(1) the term ‘‘residence’’ with respect to a person means
the person’s principal, actual dwelling place in fact, without
regard to intent, as provided in section 101(a)(33) of the
Immigration and Nationality Act, as amended, 8 U.S.C.
1101(a)(33), and variations of the term ‘‘residence,’’ including
‘‘resident’’ and ‘‘reside,’’ shall be similarly construed;
(2) the term ‘‘actual residence’’ means physical presence
in the Federated States of Micronesia during eighty-five percent
of the five-year period of residency required by section 141(a)(3)
and (4);
(3) the term ‘‘certificate of actual residence’’ means a certifi-
cate issued to a naturalized citizen by the Government of the
Federated States of Micronesia stating that the citizen has
complied with the actual residence requirement of section
141(a)(3) or (4);
(4) the term ‘‘nonimmigrant’’ means an alien who is not
an ‘‘immigrant’’ as defined in section 101(a)(15) of such Act,
8 U.S.C. 1101(a)(15); and
(5) the term ‘‘immediate relative’’ means a spouse, or
unmarried son or unmarried daughter less than 21 years of
age.
(f) The Immigration and Nationality Act, as amended, shall
apply to any person admitted or seeking admission to the United
States (other than a United States possession or territory where
such Act does not apply) under the Compact or the Compact,
as amended, and nothing in the Compact or the Compact, as
amended, shall be construed to limit, preclude, or modify the
applicability of, with respect to such person:
(1) any ground of inadmissibility or deportability under
such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of
such Act, as provided in subsection (a) of this section), and
any defense thereto, provided that, section 237(a)(5) of such
Act shall be construed and applied as if it reads as follows:
‘‘any alien who has been admitted under the Compact, or the
Compact, as amended, who cannot show that he or she has
sufficient means of support in the United States, is deportable’’;
(2) the authority of the Government of the United States
under section 214(a)(1) of such Act to provide that admission
as a nonimmigrant shall be for such time and under such
Applicability.
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conditions as the Government of the United States may by
regulations prescribe;
(3) except for the treatment of certain documentation for
purposes of section 274A(b)(1)(B) of such Act as provided by
subsection (d) of this section of the Compact, as amended,
any requirement under section 274A, including but not limited
to section 274A(b)(1)(E);
(4) section 643 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996, Public Law 104–208,
and actions taken pursuant to section 643; and
(5) the authority of the Government of the United States
otherwise to administer and enforce the Immigration and
Nationality Act, as amended, or other United States law.
(g) Any authority possessed by the Government of the United
States under this section of the Compact or the Compact, as
amended, may also be exercised by the Government of a territory
or possession of the United States where the Immigration and
Nationality Act, as amended, does not apply, to the extent such
exercise of authority is lawful under a statute or regulation of
such territory or possession that is authorized by the laws of the
United States.
(h) Subsection (a) of this section does not confer on a citizen
of the Federated States of Micronesia the right to establish the
residence necessary for naturalization under the Immigration and
Nationality Act, as amended, or to petition for benefits for alien
relatives under that Act. Subsection (a) of this section, however,
shall not prevent a citizen of the Federated States of Micronesia
from otherwise acquiring such rights or lawful permanent resident
alien status in the United States.
Section 142
(a) Any citizen or national of the United States may be
admitted, to lawfully engage in occupations, and reside in the
Federated States of Micronesia, subject to the rights of the Govern-
ment of the Federated States of Micronesia to deny entry to or
deport any such citizen or national as an undesirable alien. Any
determination of inadmissibility or deportability shall be based
on reasonable statutory grounds and shall be subject to appropriate
administrative and judicial review within the Federated States
of Micronesia. If a citizen or national of the United States is
a spouse of a citizen of the Federated States of Micronesia, the
Government of the Federated States of Micronesia shall allow the
United States citizen spouse to establish residence. Should the
Federated States of Micronesia citizen spouse predecease the United
States citizen spouse during the marriage, the Government of the
Federated States of Micronesia shall allow the United States citizen
spouse to continue to reside in the Federated States of Micronesia.
(b) In enacting any laws or imposing any requirements with
respect to citizens and nationals of the United States entering
the Federated States of Micronesia under subsection (a) of this
section, including any grounds of inadmissibility or deportability,
the Government of the Federated States of Micronesia shall accord
to such citizens and nationals of the United States treatment no
less favorable than that accorded to citizens of other countries.
(c) Consistent with subsection (a) of this section, with respect
to citizens and nationals of the United States seeking to engage
in employment or invest in the Federated States of Micronesia,
the Government of the Federated States of Micronesia shall adopt
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immigration-related procedures no less favorable than those adopted
by the Government of the United States with respect to citizens
of the Federated States of Micronesia seeking employment in the
United States.
Section 143
Any person who relinquishes, or otherwise loses, his United
States nationality or citizenship, or his Federated States of Micro-
nesia 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 Federated States of Micro-
nesia, as the case may be, in accordance with any other applicable
laws of the United States or the Federated States of Micronesia
relating to immigration of aliens from other countries. The laws
of the Federated States of Micronesia or the United States, as
the case may be, shall dictate the terms and conditions of any
such person’s stay.
Article V
Representation
Section 151
Relations between the Government of the United States and
the Government of the Federated States of Micronesia shall be
conducted in accordance with the Vienna Convention on Diplomatic
Relations. In addition to diplomatic missions and representation,
the Governments may establish and maintain other offices and
designate other representatives on terms and in locations as may
be mutually agreed.
Section 152
(a) Any citizen or national of the United States who, without
authority of the United States, acts as the agent of the Government
of the Federated States of Micronesia with regard to matters speci-
fied 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 require-
ments of such Act. Failure to comply with such requirements shall
subject such citizen or national to the same penalties and provisions
of law as apply in the case of the failure of such an agent of
a foreign principal to comply with such requirements. For purposes
of the Foreign Agents Registration Act of 1938, the Federated
States of Micronesia shall be considered to be a foreign country.
(b) Subsection (a) of this section shall not apply to a citizen
or national of the United States employed by the Government
of the Federated States of Micronesia with respect to whom the
Government of the Federated States of Micronesia from time to
time certifies to the Government of the United States that such
citizen or national is an employee of the Federated States of Micro-
nesia whose principal duties are other than those matters specified
in the Foreign Agents Registration Act of 1938, as amended, that
apply with respect to an agent of a foreign principal. The agency
or officer of the United States receiving such certifications shall
cause them to be filed with the Attorney General, who shall main-
tain a publicly available list of the persons so certified.
Certification.
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Article VI
Environmental Protection
Section 161
The Governments of the United States and the Federated States
of Micronesia declare that it is their policy to promote efforts
to prevent or eliminate damage to the environment and biosphere
and to enrich understanding of the natural resources of the Fed-
erated States of Micronesia. In order to carry out this policy, the
Government of the United States and the Government of the Fed-
erated States of Micronesia agree to the following mutual and
reciprocal undertakings.
(a) The Government of the United States:
(1) shall continue to apply the environmental controls in
effect on November 2, 1986 to those of its continuing activities
subject to section 161(a)(2), unless and until those controls
are modified under sections 161(a)(3) and 161(a)(4);
(2) shall apply the National Environmental Policy Act of
1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities
under the Compact, as amended, and its related agreements
as if the Federated States of Micronesia were the United States;
(3) shall comply also, in the conduct of any activity
requiring the preparation of an Environmental Impact State-
ment under section 161(a)(2), with standards substantively
similar to those required by the following laws of the United
States, taking into account the particular environment of the
Federated States of Micronesia: the Endangered Species Act
of 1973, as amended, 87 Stat. 884, 16 U.S.C. 1531 et seq.;
the Clean Air Act, as amended, 77 Stat. 392, 42 U.S.C. Supp.
7401 et seq.; the Clean Water Act (Federal Water Pollution
Control Act), as amended, 86 Stat. 896, 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 of the Federated States of Micronesia,
as may be mutually agreed from time to time with the Govern-
ment of the Federated States of Micronesia; and
(4) shall develop, prior to conducting any activity requiring
the preparation of an Environmental Impact Statement under
section 161(a)(2), written standards and procedures, as agreed
with the Government of the Federated States of Micronesia,
to implement the substantive provisions of the laws made
applicable to U.S. Government activities in the Federated
States of Micronesia, pursuant to section 161(a)(3).
(b) The Government of the Federated States of Micronesia
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 Federated States of Micronesia, taking into account its par-
ticular environment, shall continue to develop and implement stand-
ards for environmental protection substantively similar to those
required of the Government of the United States by section 161(a)(3)
prior to its conducting activities in the Federated States of Micro-
nesia, substantively equivalent to activities conducted there by the
Procedures.
Procedures.
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117 STAT. 2766
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Government of the United States and, as a further reciprocal obliga-
tion, shall enforce those standards.
(c) Section 161(a), including any standard or procedure
applicable thereunder, and section 161(b) may be modified or super-
seded in whole or in part by agreement of the Government of
the United States and the Government of the Federated States
of Micronesia.
(d) In the event that an Environmental Impact Statement is
no longer required under the laws of the United States for major
Federal actions significantly affecting the quality of the human
environment, the regulatory regime established under sections
161(a)(3) and 161(a)(4) shall continue to apply to such activities
of the Government of the United States until amended by mutual
agreement.
(e) The President of the United States may exempt any of
the activities of the Government of the United States under this
Compact, as amended, and its related agreements from any environ-
mental standard or procedure which may be applicable under sec-
tions 161(a)(3) and 161(a)(4) if the President determines it to be
in the paramount interest of the Government of the United States
to do so, consistent with Title Three of this Compact, as amended,
and the obligations of the Government of the United States under
international law. Prior to any decision pursuant to this subsection,
the views of the Government of the Federated States of Micronesia
shall be sought and considered to the extent practicable. If the
President grants such an exemption, to the extent practicable,
a report with his reasons for granting such exemption shall be
given promptly to the Government of the Federated States of Micro-
nesia.
(f) The laws of the United States referred to in section 161(a)(3)
shall apply to the activities of the Government of the United States
under this Compact, as amended, and its related agreements only
to the extent provided for in this section.
Section 162
The Government of the Federated States of Micronesia may
bring an action for judicial review of any administrative agency
action or any activity of the Government of the United States
pursuant to section 161(a) for enforcement of the obligations of
the Government of the United States arising thereunder. The
United States District Court for the District of Hawaii and the
United States District Court for the District of Columbia shall
have jurisdiction over such action or activity, and over actions
brought under section 172(b) which relate to the activities of the
Government of the United States and its officers and employees,
governed by section 161, provided that:
(a) Such actions may only be civil actions for any appro-
priate civil relief other than punitive damages against the
Government of the United States or, where required by law,
its officers in their official capacity; no criminal actions may
arise under this section.
(b) Actions brought pursuant to this section may be initi-
ated only by the Government of the Federated States of Micro-
nesia.
(c) Administrative agency actions arising under section 161
shall be reviewed pursuant to the standard of judicial review
set forth in 5 U.S.C. 706.
Applicability.
Applicability.
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(d) The United States District Court for the District of
Hawaii and the United States District Court for the District
of Columbia shall have jurisdiction to issue all necessary proc-
esses, and the Government of the United States agrees to
submit itself to the jurisdiction of the court; decisions of the
United States District Court shall be reviewable in the United
States Court of Appeals for the Ninth Circuit or the United
States Court of Appeals for the District of Columbia, respec-
tively, or in the United States Supreme Court as provided
by the laws of the United States.
(e) The judicial remedy provided for in this section shall
be the exclusive remedy for the judicial review or enforcement
of the obligations of the Government of the United States
under this Article and actions brought under section 172(b)
which relate to the activities of the Government of the United
States and its officers and employees governed by section 161.
(f) In actions pursuant to this section, the Government
of the Federated States of Micronesia shall be treated as if
it were a United States citizen.
Section 163
(a) For the purpose of gathering data necessary to study the
environmental effects of activities of the Government of the United
States subject to the requirements of this Article, the Government
of the Federated States of Micronesia shall be granted access to
facilities operated by the Government of the United States in the
Federated States of Micronesia, to the extent necessary for this
purpose, except to the extent such access would unreasonably inter-
fere with the exercise of the authority and responsibility of the
Government of the United States under Title Three.
(b) The Government of the United States, in turn, shall be
granted access to the Federated States of Micronesia for the purpose
of gathering data necessary to discharge its obligations under this
Article, except to the extent such access would unreasonably inter-
fere with the exercise of the authority and responsibility of the
Government of the Federated States of Micronesia 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 Federated States
of Micronesia under the Freedom of Information Act, 5 U.S.C.
552.
(c) The Government of the Federated States of Micronesia
shall not impede efforts by the Government of the United States
to comply with applicable standards and procedures.
Article VII
General Legal Provisions
Section 171
Except as provided in this Compact, as amended, or its related
agreements, the application of the laws of the United States to
the Trust Territory of the Pacific Islands by virtue of the Trustee-
ship Agreement ceased with respect to the Federated States of
Micronesia on November 3, 1986, the date the Compact went into
effect.
Section 172
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117 STAT. 2768
PUBLIC LAW 108–188—DEC. 17, 2003
(a) Every citizen of the Federated States of Micronesia who
is not a resident of the United States shall enjoy the rights and
remedies under the laws of the United States enjoyed by any
non-resident alien.
(b) The Government of the Federated States of Micronesia
and every citizen of the Federated States of Micronesia shall be
considered to be a ‘‘person’’ within the meaning of the Freedom
of Information Act, 5 U.S.C. 552, and of the judicial review provi-
sions of the Administrative Procedure Act, 5 U.S.C. 701–706, except
that only the Government of the Federated States of Micronesia
may seek judicial review under the Administrative Procedure Act
or judicial enforcement under the Freedom of Information Act when
such judicial review or enforcement relates to the activities of
the Government of the United States governed by sections 161
and 162.
Section 173
The Governments of the United States and the Federated States
of Micronesia agree to adopt and enforce such measures, consistent
with this Compact, as amended, and its related agreements, as
may be necessary to protect the personnel, property, installations,
services, programs and official archives and documents maintained
by the Government of the United States in the Federated States
of Micronesia pursuant to this Compact, as amended, and its related
agreements and by the Government of the Federated States of
Micronesia in the United States pursuant to this Compact, as
amended, and its related agreements.
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Federated States of Micronesia,
and its agencies and officials, shall be immune from the jurisdic-
tion of the court of the United States, and the Government
of the United States, and its agencies and officials, shall be
immune from the jurisdiction of the courts of the Federated
States of Micronesia.
(b) The Government of the United States accepts responsi-
bility for and shall pay:
(1) any unpaid money judgment rendered by the High
Court of the Trust Territory of the Pacific Islands against
the Government of the United States with regard to any
cause of action arising as a result of acts or omissions
of the Government of the Trust Territory of the Pacific
Islands or the Government of the United States prior to
November 3, 1986;
(2) any claim settled by the claimant and the Govern-
ment of the Trust Territory of the Pacific Islands but
not paid as of the November 3, 1986; and
(3) settlement of any administrative claim or of any
action before a court of the Trust Territory of the Pacific
Islands or the Government of the United States, arising
as a result of acts or omissions of the Government of
the Trust Territory of the Pacific Islands or the Government
of the United States.
(c) Any claim not referred to in section 174(b) and arising
from an act or omission of the Government of the Trust Terri-
tory of the Pacific Islands or the Government of the United
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117 STAT. 2769
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States prior to the effective date of the Compact shall be adju-
dicated in the same manner as a claim adjudicated according
to section 174(d). In any claim against the Government of
the Trust Territory of the Pacific Islands, the Government
of the United States shall stand in the place of the Government
of the Trust Territory of the Pacific Islands. A judgment on
any claim referred to in section 174(b) or this subsection, not
otherwise satisfied by the Government of the United States,
may be presented for certification to the United States Court
of Appeals for the Federal Circuit, or its successor courts,
which shall have jurisdiction therefore, notwithstanding the
provisions of 28 U.S.C. 1502, and which court’s decisions shall
be reviewable as provided by the laws of the United States.
The United States Court of Appeals for the Federal Circuit
shall certify such judgment, and order payment thereof, unless
it finds, after a hearing, that such judgment is manifestly
erroneous as to law or fact, or manifestly excessive. In either
of such cases the United States Court of Appeals for the Federal
Circuit shall have jurisdiction to modify such judgment.
(d) The Government of the Federated States of Micronesia
shall not be immune from the jurisdiction of the courts of
the United States, and the Government of the United States
shall not be immune from the jurisdiction of the courts of
the Federated States of Micronesia in any civil case in which
an exception to foreign state immunity is set forth in the
Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.)
or its successor statutes.
Section 175
(a) A separate agreement, which shall come into effect simulta-
neously with this Compact, as amended, and shall have the force
of law, shall govern mutual assistance and cooperation in law
enforcement matters, including the pursuit, capture, imprisonment
and extradition of fugitives from justice and the transfer of pris-
oners, as well as other law enforcement matters. In the United
States, the laws of the United States governing international extra-
dition, including 18 U.S.C. 3184, 3186 and 3188–95, shall be
applicable to the extradition of fugitives under the separate agree-
ment, and the laws of the United States governing the transfer
of prisoners, including 18 U.S.C. 4100–15, shall be applicable to
the transfer of prisoners under the separate agreement; and
(b) A separate agreement, which shall come into effect simulta-
neously with this Compact, as amended, and shall have the force
of law, shall govern requirements relating to labor recruitment
practices, including registration, reporting, suspension or revocation
of authorization to recruit persons for employment in the United
States, and enforcement for violations of such requirements.
Section 176
The Government of the Federated States of Micronesia confirms
that final judgments in civil cases rendered by any court of the
Trust Territory of the Pacific Islands shall continue in full force
and effect, subject to the constitutional power of the courts of
the Federated States of Micronesia to grant relief from judgments
in appropriate cases.
Section 177
Section 177 of the Compact entered into force with respect
to the Federated States of Micronesia on November 3, 1986 as
follows:
Applicability.
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117 STAT. 2770
PUBLIC LAW 108–188—DEC. 17, 2003
‘‘(a) The Government of the United States accepts the
responsibility for compensation owing to citizens of the Marshall
Islands, or the Federated States of Micronesia, or Palau for
loss or damage to property and person of the citizens of the
Marshall Islands, or the Federated States of Micronesia,
resulting from the nuclear testing program which the Govern-
ment of the United States conducted in the Northern Marshall
Islands between June 30, 1946, and August 18, 1958.
‘‘(b) The Government of the United States and the Govern-
ment of the Marshall Islands shall set forth in a separate
agreement provisions for the just and adequate settlement of
all such claims which have arisen in regard to the Marshall
Islands and its citizens and which have not as yet been com-
pensated or which in the future may arise, for the continued
administration by the Government of the United States of
direct radiation related medical surveillance and treatment pro-
grams and radiological monitoring activities and for such addi-
tional programs and activities as may be mutually agreed,
and for the assumption by the Government of the Marshall
Islands of responsibility for enforcement of limitations on the
utilization of affected areas developed in cooperation with the
Government of the United States and for the assistance by
the Government of the United States in the exercise of such
responsibility as may be mutually agreed. This separate agree-
ment shall come into effect simultaneously with this Compact
and shall remain in effect in accordance with its own terms.
‘‘(c) The Government of the United States shall provide
to the Government of the Marshall Islands, on a grant basis,
the amount of $150 million to be paid and distributed in accord-
ance with the separate agreement referred to in this Section,
and shall provide the services and programs set forth in this
separate agreement, the language of which is incorporated into
this Compact.’’.
The Compact, as amended, makes no changes to, and has
no effect upon, Section 177 of the Compact, nor does the Compact,
as amended, change or affect the separate agreement referred to
in Section 177 of the Compact including Articles IX and X of
that separate agreement, and measures taken by the parties there-
under.
Section 178
(a) The Federal agencies of the Government of the United
States that provide the services and related programs in the Fed-
erated States of Micronesia pursuant to Title Two are authorized
to settle and pay tort claims arising in the Federated States of
Micronesia from the activities of such agencies or from the acts
or omissions of the employees of such agencies. Except as provided
in section 178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C.
1304 shall apply exclusively to such administrative settlements
and payments.
(b) Claims under section 178(a) that cannot be settled under
section 178(a) shall be disposed of exclusively in accordance with
Article II of Title Four. Arbitration awards rendered pursuant to
this subsection shall be paid out of funds under 31 U.S.C. 1304.
(c) The Government of the United States and the Government
of the Federated States of Micronesia shall, in the separate agree-
ment referred to in section 231, provide for:
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117 STAT. 2771
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(1) the administrative settlement of claims referred to in
section 178(a), including designation of local agents in each
State of the Federated States of Micronesia; such agents to
be empowered to accept, investigate and settle such claims,
in a timely manner, as provided in such separate agreements;
and
(2) arbitration, referred to in section 178(b), in a timely
manner, at a site convenient to the claimant, in the event
a claim is not otherwise settled pursuant to section 178(a).
(d) The provisions of section 174(d) shall not apply to claims
covered by this section.
(e) Except as otherwise explicitly provided by law of the United
States, neither the Government of the United States, its instrumen-
talities, nor any person acting on behalf of the Government of
the United States, shall be named a party in any action based
on, or arising out of, the activity or activities of a recipient of
any grant or other assistance provided by the Government of the
United States (or the activity or activities of the recipient’s agency
or any other person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Federated States of Micronesia shall
not exercise criminal jurisdiction over the Government of the United
States, or its instrumentalities.
(b) The courts of the Federated States of Micronesia shall
not exercise criminal jurisdiction over any person if the Government
of the United States provides notification to the Government of
the Federated States of Micronesia that such person was acting
on behalf of the Government of the United States, for actions
taken in furtherance of section 221 or 224 of this amended Compact,
or any other provision of law authorizing financial, program, or
service assistance to the Federated States of Micronesia.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Sector Grants
(a) In order to assist the Government of the Federated States
of Micronesia in its efforts to promote the economic advancement,
budgetary self-reliance, and economic self-sufficiency of its people,
and in recognition of the special relationship that exists between
the Federated States of Micronesia and the United States, the
Government of the United States shall provide assistance on a
sector grant basis for a period of twenty years in the amounts
set forth in section 216, commencing on the effective date of this
Compact, as amended. Such grants shall be used for assistance
in the sectors of education, health care, private sector development,
the environment, public sector capacity building, and public infra-
structure, or for other sectors as mutually agreed, with priorities
in the education and health care sectors. For each year such sector
grant assistance is made available, the proposed division of this
amount among these sectors shall be certified to the Government
of the United States by the Government of the Federated States
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117 STAT. 2772
PUBLIC LAW 108–188—DEC. 17, 2003
of Micronesia and shall be subject to the concurrence of the Govern-
ment of the United States. In such case, the Government of the
United States shall disburse the agreed upon amounts and monitor
the use of such sector grants in accordance with the provisions
of this Article and the Agreement Concerning Procedures for the
Implementation of United States Economic Assistance Provided
in the Compact, as Amended, of Free Association Between the
Government of the United States of America and the Government
of the Federated States of Micronesia (‘‘Fiscal Procedures Agree-
ment’’) which shall come into effect simultaneously with this Com-
pact, as amended. The provision of any United States assistance
under the Compact, as amended, the Fiscal Procedures Agreement,
the Trust Fund Agreement, or any other subsidiary agreement
to the Compact, as amended, shall constitute ‘‘a particular distribu-
tion . . . required by the terms or special nature of the assistance’’
for purposes of Article XII, section 1(b) of the Constitution of the
Federated States of Micronesia.
(1) EDUCATION.—United States grant assistance shall be
made available in accordance with the plan described in sub-
section (c) of this section to support and improve the educational
system of the Federated States of Micronesia and develop the
human, financial, and material resources necessary for the
Government of the Federated States of Micronesia to perform
these services. Emphasis should be placed on advancing a
quality basic education system.
(2) HEALTH.—United States grant assistance shall be made
available in accordance with the plan described in subsection
(c) of this section to support and improve the delivery of preven-
tive, curative and environmental care and develop the human,
financial, and material resources necessary for the Government
of the Federated States of Micronesia to perform these services.
(3) PRIVATE SECTOR DEVELOPMENT.—United States grant
assistance shall be made available in accordance with the plan
described in subsection (c) of this section to support the efforts
of the Government of the Federated States of Micronesia to
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, and maintaining progress toward
privatization of state-owned and partially state-owned enter-
prises, and engaging in other reforms.
(4) CAPACITY
BUILDING
IN
THE
PUBLIC
SECTOR.—United
States grant assistance shall be made available in accordance
with the plan described in subsection (c) of this section to
support the efforts of the Government of the Federated States
of Micronesia to build effective, accountable and transparent
national, state, and local government and other public sector
institutions and systems.
(5) ENVIRONMENT.—United States grant assistance shall
be made available in accordance with the plan described in
subsection (c) of this section to increase environmental protec-
tion; conserve and achieve sustainable use of natural resources;
and engage in environmental infrastructure planning, design
construction and operation.
(6) PUBLIC INFRASTRUCTURE.—
(i) U.S. annual grant assistance shall be made available
in accordance with a list of specific projects included in
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the plan described in subsection (c) of this section to assist
the Government of the Federated States of Micronesia in
its efforts to provide adequate public infrastructure.
(ii) INFRASTRUCTURE AND MAINTENANCE FUND.—Five
percent of the annual public infrastructure grant made
available under paragraph (i) of this subsection shall be
set aside, with an equal contribution from the Government
of the Federated States of Micronesia, as a contribution
to an Infrastructure Maintenance Fund (IMF). Administra-
tion of the Infrastructure Maintenance Fund shall be gov-
erned by the Fiscal Procedures Agreement.
(b) HUMANITARIAN ASSISTANCE.—Federated States of Micro-
nesia Program. In recognition of the special development needs
of the Federated States of Micronesia, the Government of the United
States shall make available to the Government of the Federated
States of Micronesia, on its request and to be deducted from the
grant amount made available under subsection (a) of this section,
a Humanitarian Assistance - Federated States of Micronesia
(‘‘HAFSM’’) Program with emphasis on health, education, and infra-
structure (including transportation), projects. The terms and condi-
tions of the HAFSM shall be set forth in the Agreement Regarding
the Military Use and Operating Rights of the Government of the
United States in the Government of the Federated States of Micro-
nesia Concluded Pursuant to Sections 321 and 323 of the Compact
of Free Association, as Amended which shall come into effect
simultaneously with the amendments to this Compact.
(c) DEVELOPMENT PLAN.—The Government of the Federated
States of Micronesia shall prepare and maintain an official overall
development plan. The plan shall be 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 named in subsection (a) of this section, or
other sectors as mutually agreed, shall be accorded specific treat-
ment in the plan. Insofar as grants funds are involved, the plan
shall be subject to the concurrence of the Government of the United
States.
(d) DISASTER ASSISTANCE EMERGENCY FUND.—An amount of
two hundred thousand dollars ($200,000) shall be provided
annually, with an equal contribution from the Government of the
Federated States of Micronesia, as a contribution to a ‘‘Disaster
Assistance Emergency Fund (DAEF).’’ Any funds from the DAEF
may be used only for assistance and rehabilitation resulting from
disasters and emergencies. The funds will be accessed upon declara-
tion by the Government of the Federated States of Micronesia,
with the concurrence of the United States Chief of Mission to
the Federated States of Micronesia. The Administration of the
DAEF shall be governed by the Fiscal Procedures Agreement.
Section 212 - Accountability
(a) Regulations and policies normally applicable to United
States financial assistance to its state and local governments, as
reflected in the Fiscal Procedures Agreement, shall apply to each
sector grant described in section 211, and to grants administered
under section 221 below, except as modified in the separate agree-
ments referred to in section 231 of this Compact, as amended,
or by United States law. The Government of the United States,
after annual consultations with the Federated States of Micronesia,
may attach reasonable terms and conditions, including annual
Applicability.
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performance indicators that are necessary to ensure effective use
of United States assistance and reasonable progress toward
achieving program objectives. The Government of the United States
may seek appropriate remedies for noncompliance with the terms
and conditions attached to the assistance, or for failure to comply
with section 234, including withholding assistance.
(b) The Government of the United States shall, for each fiscal
year of the twenty years during which assistance is to be provided
on a sector grant basis under section 211, grant the Government
of the Federated States of Micronesia an amount equal to the
lesser of (i) one half of the reasonable, properly documented cost
incurred during each fiscal year to conduct the annual audit
required under Article VIII (2) of the Fiscal Procedures Agreement
or (ii) $500,000. Such amount will not be adjusted for inflation
under section 217 or otherwise.
Section 213 - Joint Economic Management Committee
The Governments of the United States and the Federated States
of Micronesia shall establish a Joint Economic Management Com-
mittee, composed of a U.S. chair, two other members from the
Government of the United States and two members from the
Government of the Federated States of Micronesia. The Joint Eco-
nomic Management Committee shall meet at least once each year
to review the audits and reports required under this Title, evaluate
the progress made by the Federated States of Micronesia in meeting
the objectives identified in its plan described in subsection (c) of
section 211, with particular focus on those parts of the plan dealing
with the sectors identified in subsection (a) of section 211, identify
problems encountered, and recommend ways to increase the
effectiveness of U.S. assistance made available under this Title.
The establishment and operations of the Joint Economic Manage-
ment Committee shall be governed by the Fiscal Procedures Agree-
ment.
Section 214 - Annual Report
The Government of the Federated States of Micronesia shall
report annually to the President of the United States on the use
of United States sector grant assistance and other assistance and
progress in meeting mutually agreed program and economic goals.
The Joint Economic Management Committee shall review and com-
ment on the report and make appropriate recommendations based
thereon.
Section 215 - Trust Fund
(a) The United States shall contribute annually for twenty
years from the effective date of this Compact, as amended, in
the amounts set forth in section 216 into a Trust Fund established
in accordance with the Agreement Between the Government of
the United States of America and the Government of the Federated
States of Micronesia Implementing Section 215 and Section 216
of the Compact, as Amended, Regarding a Trust Fund (‘‘Trust
Fund Agreement’’). Upon termination of the annual financial assist-
ance under section 211, the proceeds 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 Federated States of Micronesia contributing
to the Trust Fund at least $30 million, prior to September 30,
2004. Any funds received by the Federated States of Micronesia
Establishment.
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under section 111 (d) of Public Law 99–239 (January 14, 1986),
or successor provisions, would be contributed to the Trust Fund
as a Federated States of Micronesia contribution.
(c) The terms regarding the investment and management of
funds and use of the income of the Trust Fund shall be set forth
in the separate Trust Fund Agreement described in subsection
(a) of this section. Funds derived from United States investment
shall not be subject to Federal or state taxes in the United States
or the Federated States of Micronesia. The Trust Fund Agreement
shall also provide for annual reports to the Government of the
United States and to the Government of the Federated States
of Micronesia. The Trust Fund Agreement shall provide for appro-
priate distributions of trust fund proceeds to the Federated States
of Micronesia and for appropriate remedies for the failure of the
Federated States of Micronesia to use income of the Trust Fund
for the annual grant purposes set forth in section 211. These rem-
edies may include the return to the United States of the present
market value of its contributions to the Trust Fund and the present
market value of any undistributed income on the contributions
of the United States. If this Compact, as amended, is terminated,
the provisions of sections 451 through 453 of this Compact, as
amended, shall govern treatment of any U.S. contributions to the
Trust Fund or accrued interest thereon.
Section 216 - Sector Grant Funding and Trust Fund Contributions
The funds described in sections 211, 212(b) and 215 shall be
made available as follows:
[In millions of dollars]
Fiscal year
Annual Grants
Section 211
Audit Grant
Section 212(b)
(amount up to)
Trust Fund
Section 215
Total
2004 ............................
76.2
.5
16
92.7
2005 ............................
76.2
.5
16
92.7
2006 ............................
76.2
.5
16
92.7
2007 ............................
75.4
.5
16.8
92.7
2008 ............................
74.6
.5
17.6
92.7
2009 ............................
73.8
.5
18.4
92.7
2010 ............................
73
.5
19.2
92.7
2011 ............................
72.2
.5
20
92.7
2012 ............................
71.4
.5
20.8
92.7
2013 ............................
70.6
.5
21.6
92.7
2014 ............................
69.8
.5
22.4
92.7
2015 ............................
69
.5
23.2
92.7
2016 ............................
68.2
.5
24
92.7
2017 ............................
67.4
.5
24.8
92.7
2018 ............................
66.6
.5
25.6
92.7
2019 ............................
65.8
.5
26.4
92.7
2020 ............................
65
.5
27.2
92.7
2021 ............................
64.2
.5
28
92.7
2022 ............................
63.4
.5
28.8
92.7
2023 ............................
62.6
.5
29.6
92.7
Section 217 - Inflation Adjustment
Except for the amounts provided for audits under section 212(b),
the amounts stated in this Title shall be adjusted for each United
States Fiscal Year by the percent that equals two-thirds of the
percent change in the United States Gross Domestic Product
Implicit Price Deflator, or 5 percent, whichever is less in any
one year, using the beginning of Fiscal Year 2004 as a base.
Reports.
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Section 218 - Carry-Over of Unused Funds
If in any year the funds made available by the Government
of the United States for that year pursuant to this Article are
not completely obligated by the Government of the Federated States
of Micronesia, the unobligated balances shall remain available in
addition to the funds to be provided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) SERVICES.—The Government of the United States shall
make available to the Federated States of Micronesia, in accordance
with and to the extent provided in the Federal Programs and
Services Agreement referred to in section 231, the services and
related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
(3) the United States Federal Aviation Administration;
(4) the United States Department of Transportation;
(5) the Federal Deposit Insurance Corporation (for the ben-
efit only of the Bank of the Federated States of Micronesia);
and
(6) the Department of Homeland Security, and the United
States Agency for International Development, Office of Foreign
Disaster Assistance.
Upon the effective date of this Compact, as amended, the United
States Departments and Agencies named or having responsibility
to provide these services and related programs shall have the
authority to implement the relevant provisions of the Federal Pro-
grams and Services Agreement referred to in section 231.
(b) PROGRAMS.—
(1) With the exception of the services and programs covered
by subsection (a) of this section, and unless the Congress of
the United States provides otherwise, the Government of the
United States shall make available to the Federated States
of Micronesia the services and programs that were available
to the Federated States of Micronesia on the effective date
of this Compact, as amended, to the extent that such services
and programs continue to be available to State and local govern-
ments of the United States. As set forth in the Fiscal Procedures
Agreement, funds provided under subsection (a) of section 211
will be considered to be local revenues of the Government
of the Federated States of Micronesia when used as the local
share required to obtain Federal programs and services.
(2) Unless provided otherwise by U.S. law, the services
and programs described in paragraph (1) of this subsection
shall be extended in accordance with the terms of the Federal
Programs and Services Agreement referred to in section 231.
(c) The Government of the United States shall have and exercise
such authority as is necessary to carry out its responsibilities under
this Title and the separate agreements referred to in amended
section 231, including the authority to monitor and administer
all service and program assistance provided by the United States
to the Federated States of Micronesia. The Federal Programs and
Services Agreement referred to in amended section 231 shall also
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117 STAT. 2777
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set forth the extent to which services and programs shall be pro-
vided to the Federated States of Micronesia.
(d) Except as provided elsewhere in this Compact, as amended,
under any separate agreement entered into under this Compact,
as amended, or otherwise under U.S. law, all Federal domestic
programs extended to or operating in the Federated States of Micro-
nesia shall be subject to all applicable criteria, standards, reporting
requirements, auditing procedures, and other rules and regulations
applicable to such programs and services when operating in the
United States.
(e) The Government of the United States shall make available
to the Federated States of Micronesia alternate energy development
projects, studies, and conservation measures to the extent provided
for the Freely Associated States in the laws of the United States.
Section 222
The Government of the United States and the Government
of the Federated States of Micronesia may agree from time to
time to extend to the Federated States of Micronesia additional
United States grant assistance, services and programs, as provided
under the laws of the United States. Unless inconsistent with
such laws, or otherwise specifically precluded by the Government
of the United States at the time such additional grant assistance,
services, or programs are extended, the Federal Programs and
Services Agreement referred to section 231 shall apply to any such
assistance, services or programs.
Section 223
The Government of the Federated States of Micronesia shall
make available to the Government of the United States at no
cost such land as may be necessary for the operations of the services
and programs provided pursuant to this Article, and such facilities
as are provided by the Government of the Federated States of
Micronesia at no cost to the Government of the United States
as of the effective date of this Compact, as amended, or as may
be mutually agreed thereafter.
Section 224
The Government of the Federated States of Micronesia may
request, from time to time, technical assistance from the Federal
agencies and institutions of the Government of the United States,
which are authorized to grant such technical assistance in accord-
ance with its laws. If technical assistance is granted pursuant
to such a request, the Government of the United States shall
provide the technical assistance in a manner which gives priority
consideration to the Federated States of Micronesia over other
recipients not a part of the United States, its territories or posses-
sions, and equivalent consideration to the Federated States of Micro-
nesia with respect to other states in Free Association with the
United States. Such assistance shall be made available on a
reimbursable or non-reimbursable basis to the extent provided by
United States law.
Article III
Administrative Provisions
Section 231
Applicability.
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117 STAT. 2778
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The specific nature, extent and contractual arrangements of
the services and programs provided for in section 221 of this Com-
pact, as amended, as well as the legal status of agencies of the
Government of the United States, their civilian employees and
contractors, and the dependents of such personnel while present
in the Federated States of Micronesia, and other arrangements
in connection with the assistance, services, or programs furnished
by the Government of the United States, are set forth in a Federal
Programs and Services Agreement which shall come into effect
simultaneously with this Compact, as amended.
Section 232
The Government of the United States, in consultation with
the Government of the Federated States of Micronesia, shall deter-
mine and implement procedures for the periodic audit of all grants
and other assistance made under Article I of this Title and of
all funds expended for the services and programs provided under
Article II of this Title. Further, in accordance with the Fiscal
Procedures Agreement described in subsection (a) of section 211,
the Comptroller General of the United States shall have such
powers and authorities as described in sections 102 (c) and 110
(c) of Public Law 99–239, 99 Stat. 1777–78, and 99 Stat. 1799
(January 14, 1986).
Section 233
Approval of this Compact, as amended, by the Government
of the United States, in accordance with its constitutional processes,
shall constitute a pledge by the United States that the sums and
amounts specified as sector grants in section 211 of this Compact,
as amended, shall be appropriated and paid to the Federated States
of Micronesia for such period as those provisions of this Compact,
as amended, remain in force, subject to the terms and conditions
of this Title and related subsidiary agreements.
Section 234
The Government of the Federated States of Micronesia pledges
to cooperate with, permit, and assist if reasonably requested, des-
ignated and authorized representatives of the Government of the
United States charged with investigating whether Compact funds,
or any other assistance authorized under this Compact, as amended,
have, or are being, used for purposes other than those set forth
in this Compact, as amended, or its subsidiary agreements. In
carrying out this investigative authority, such United States
Government representatives may request that the Government of
the Federated States of Micronesia subpoena documents and records
and compel testimony in accordance with the laws and Constitution
of the Federated States of Micronesia. Such assistance by the
Government of the Federated States of Micronesia to the Govern-
ment of the United States shall not be unreasonably withheld.
The obligation of the Government of the Federated States of Micro-
nesia to fulfill its pledge herein is a condition to its receiving
payment of such funds or other assistance authorized under this
Compact, as amended. The Government of the United States shall
pay any reasonable costs for extraordinary services executed by
the Government of the Federated States of Micronesia in carrying
out the provisions of this section.
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Article IV
Trade
Section 241
The Federated States of Micronesia is not included in the
customs territory of the United States.
Section 242
The President shall proclaim the following tariff treatment
for articles imported from the Federated States of Micronesia which
shall apply during the period of effectiveness of this title:
(a) Unless otherwise excluded, articles imported from the
Federated States of Micronesia, subject to the limitations
imposed under section 503(b) of title V of the Trade Act of
1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
(b) Only tuna in airtight containers provided for in heading
1604.14.22 of the Harmonized Tariff Schedule of the United
States that is imported from the Federated States of Micronesia
and the Republic of the Marshall Islands during any calendar
year not to exceed 10 percent of apparent United States
consumption of tuna in airtight containers during the imme-
diately preceding calendar year, as reported by the National
Marine Fisheries Service, shall be exempt from duty; but the
quantity of tuna given duty-free treatment under this para-
graph for any calendar year shall be counted against the aggre-
gated quantity of tuna in airtight containers that is dutiable
under rate column numbered 1 of such heading 1604.14.22
for that calendar year.
(c) The duty-free treatment provided under subsection (a)
shall not apply to—
(1) watches, clocks, and timing apparatus provided for
in Chapter 91, excluding heading 9113, of the Harmonized
Tariff Schedule of the United States;
(2) buttons (whether finished or not finished) provided
for in items 9606.21.40 and 9606.29.20 of such Schedule;
(3) textile and apparel articles which are subject to
textile agreements; and
(4) footwear, handbags, luggage, flat goods, work
gloves, and leather wearing apparel which were not eligible
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 Federated States
of Micronesia, an amount not to exceed 15 percent of the
appraised value of the article at the time it is entered that
is attributable to such United States cost or value may be
applied for duty assessment purposes toward determining the
percentage referred to in section 503(a)(2) of title V of the
Trade Act of 1974.
Section 243
Articles imported from the Federated States of Micronesia
which are not exempt from duty under subsections (a), (b), (c),
and (d) of section 242 shall be subject to the rates of duty set
forth in column numbered 1-general of the Harmonized Tariff
Schedule of the United States (HTSUS).
Section 244
President.
Applicability.
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(a) All products of the United States imported into the Fed-
erated States of Micronesia shall receive treatment no less favorable
than that accorded like products of any foreign country with respect
to customs duties or charges of a similar nature and with respect
to laws and regulations relating to importation, exportation, tax-
ation, sale, distribution, storage or use.
(b) The provisions of subsection (a) shall not apply to advan-
tages accorded by the Federated States of Micronesia by virtue
of their full membership in the Pacific Island Countries Trade
Agreement (PICTA), done on August 18, 2001, to those governments
listed in Article 26 of PICTA, as of the date the Compact, as
amended, is signed.
(c) Prior to entering into consultations on, or concluding, a
free trade agreement with governments not listed in Article 26
of PICTA, the Federated States of Micronesia shall consult with
the United States regarding whether or how subsection (a) of section
244 shall be applied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official circulating
legal tender of the Federated States of Micronesia. Should the
Government of the Federated States of Micronesia act to institute
another currency, the terms of an appropriate currency transitional
period shall be as agreed with the Government of the United
States.
Section 252
The Government of the Federated States of Micronesia may,
with respect to United States persons, tax income derived from
sources within its respective jurisdiction, property situated therein,
including transfers of such property by gift or at death, and products
consumed therein, in such manner as the Government of the Fed-
erated States of Micronesia deems appropriate. The determination
of the source of any income, or the situs of any property, shall
for purposes of this Compact be made according to the United
States Internal Revenue Code.
Section 253
A citizen of the Federated States of Micronesia, 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 Federated States of Micronesia
is neither a citizen nor a resident of the United States.
Section 254
(a) In determining any income tax imposed by the Government
of the Federated States of Micronesia, the Government of the Fed-
erated States of Micronesia shall have authority to impose tax
upon income derived by a resident of the Federated States of
Micronesia from sources without the Federated States of Micronesia,
in the same manner and to the same extent as the Government
of the Federated States of Micronesia imposes tax upon income
derived from within its own jurisdiction. If the Government of
the Federated States of Micronesia exercises such authority as
provided in this subsection, any individual resident of the Federated
States of Micronesia who is subject to tax by the Government
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of the United States on income which is also taxed by the Govern-
ment of the Federated States of Micronesia shall be relieved of
liability to the Government of the United States for the tax which,
but for this subsection, would otherwise be imposed by the Govern-
ment of the United States on such income. However, the relief
from liability to the United States Government referred to in the
preceding sentence means only relief in the form of the foreign
tax credit (or deduction in lieu thereof) available with respect to
the income taxes of a possession of the United States, and relief
in the form of the exclusion under section 911 of the Internal
Revenue Code of 1986. For purposes of this section, the term ‘‘resi-
dent of the Federated States of Micronesia’’ shall be deemed to
include any person who was physically present in the Federated
States of Micronesia for a period of 183 or more days during
any taxable year.
(b) If the Government of the Federated States of Micronesia
subjects income to taxation substantially similar to that imposed
by the Trust Territory Code in effect on January 1, 1980, such
Government shall be deemed to have exercised the authority
described in section 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the United States
Internal Revenue Code of 1986, the term ‘‘North American Area’’
shall include the Federated States of Micronesia.
TITLE THREE
SECURITY AND DEFENSE RELATIONS
Article I
Authority and Responsibility
Section 311
(a) The Government of the United States has full authority
and responsibility for security and defense matters in or relating
to the Federated States of Micronesia.
(b) This authority and responsibility includes:
(1) the obligation to defend the Federated States of Micro-
nesia and its people from attack or threats thereof as the
United States and its citizens are defended;
(2) the option to foreclose access to or use of the Federated
States of Micronesia by military personnel or for the military
purposes of any third country; and
(3) the option to establish and use military areas and
facilities in the Federated States of Micronesia, subject to the
terms of the separate agreements referred to in sections 321
and 323.
(c) The Government of the United States confirms that it shall
act in accordance with the principles of international law and
the Charter of the United Nations in the exercise of this authority
and responsibility.
Section 312
Subject to the terms of any agreements negotiated in accordance
with sections 321 and 323, the Government of the United States
may conduct within the lands, waters and airspace of the Federated
States of Micronesia the activities and operations necessary for
the exercise of its authority and responsibility under this Title.
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Section 313
(a) The Government of the Federated States of Micronesia
shall refrain from actions that the Government of the United States
determines, after appropriate consultation with that Government,
to be incompatible with its authority and responsibility for security
and defense matters in or relating to the Federated States of
Micronesia.
(b) The consultations referred to in this section shall be con-
ducted expeditiously at senior levels of the two Governments, and
the subsequent determination by the Government of the United
States referred to in this section shall be made only at senior
interagency levels of the Government of the United States.
(c) The Government of the Federated States of Micronesia
shall be afforded, on an expeditious basis, an opportunity to raise
its concerns with the United States Secretary of State personally
and the United States Secretary of Defense personally regarding
any determination made in accordance with this section.
Section 314
(a) Unless otherwise agreed, the Government of the United
States shall not, in the Federated States of Micronesia:
(1) test by detonation or dispose of any nuclear weapon,
nor test, dispose of, or discharge any toxic chemical or biological
weapon; or
(2) test, dispose of, or discharge any other radioactive,
toxic chemical or biological materials in an amount or manner
which would be hazardous to public health or safety.
(b) Unless otherwise agreed, other than for transit or overflight
purposes or during time of a national emergency declared by the
President of the United States, a state of war declared by the
Congress of the United States or as necessary to defend against
an actual or impending armed attack on the United States, the
Federated States of Micronesia or the Republic of the Marshall
Islands, the Government of the United States shall not store in
the Federated States of Micronesia or the Republic of the Marshall
Islands any toxic chemical weapon, nor any radioactive materials
nor any toxic chemical materials intended for weapons use.
(c) Radioactive, toxic chemical, or biological materials not
intended for weapons use shall not be affected by section 314(b).
(d) No material or substance referred to in this section shall
be stored in the Federated States of Micronesia except in an amount
and manner which would not be hazardous to public health or
safety. In determining what shall be an amount or manner which
would be hazardous to public health or safety under this section,
the Government of the United States shall comply with any
applicable mutual agreement, international guidelines accepted by
the Government of the United States, and the laws of the United
States and their implementing regulations.
(e) Any exercise of the exemption authority set forth in section
161(e) shall have no effect on the obligations of the Government
of the United States under this section or on the application of
this subsection.
(f) The provisions of this section shall apply in the areas in
which the Government of the Federated States of Micronesia exer-
cises jurisdiction over the living resources of the seabed, subsoil
or water column adjacent to its coasts.
Section 315
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117 STAT. 2783
PUBLIC LAW 108–188—DEC. 17, 2003
The Government of the United States may invite members
of the armed forces of other countries to use military areas and
facilities in the Federated States of Micronesia, in conjunction with
and under the control of United States Armed Forces. Use by
units of the armed forces of other countries of such military areas
and facilities, other than for transit and overflight purposes, shall
be subject to consultation with and, in the case of major units,
approval of the Government of the Federated States of Micronesia.
Section 316
The authority and responsibility of the Government of the
United States under this Title may not be transferred or otherwise
assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by
the Government of the United States of military areas and facilities
in the Federated States of Micronesia are set forth in separate
agreements, which shall remain in effect in accordance with the
terms of such agreements.
(b) If, in the exercise of its authority and responsibility under
this Title, the Government of the United States requires the use
of areas within the Federated States of Micronesia in addition
to those for which specific arrangements are concluded pursuant
to section 321(a), it may request the Government of the Federated
States of Micronesia to satisfy those requirements through leases
or other arrangements. The Government of the Federated States
of Micronesia shall sympathetically consider any such request and
shall establish suitable procedures to discuss it with and provide
a prompt response to the Government of the United States.
(c) The Government of the United States recognizes and
respects the scarcity and special importance of land in the Federated
States of Micronesia. In making any requests pursuant to section
321(b), the Government of the United States shall follow the policy
of requesting the minimum area necessary to accomplish the
required security and defense purpose, of requesting only the min-
imum interest in real property necessary to support such purpose,
and of requesting first to satisfy its requirement through public
real property, where available, rather than through private real
property.
Section 322
The Government of the United States shall provide and main-
tain fixed and floating aids to navigation in the Federated States
of Micronesia at least to the extent necessary for the exercise
of its authority and responsibility under this Title.
Section 323
The military operating rights of the Government of the United
States and the legal status and contractual arrangements of the
United States Armed Forces, their members, and associated
civilians, while present in the Federated States of Micronesia are
set forth in separate agreements, which shall remain in effect
in accordance with the terms of such agreements.
Procedures.
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Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended, and its
related agreements, the Government of the United States, exclu-
sively, has assumed and enjoys, as to the Federated States of
Micronesia, all obligations, responsibilities, rights and benefits of:
(a) Any defense treaty or other international security agreement
applied by the Government of the United States as Administering
Authority of the Trust Territory of the Pacific Islands as of
November 2, 1986.
(b) Any defense treaty or other international security agreement
to which the Government of the United States is or may become
a party which it determines to be applicable in the Federated
States of Micronesia. Such a determination by the Government
of the United States shall be preceded by appropriate consultation
with the Government of the Federated States of Micronesia.
Article IV
Service in Armed Forces of the United States
Section 341
Any person entitled to the privileges set forth in Section 141
(with the exception of any person described in section 141(a)(5)
who is not a citizen of the Federated States of Micronesia) shall
be eligible to volunteer for service in the Armed Forces of the
United States, but shall not be subject to involuntary induction
into military service of the United States as long as such person
has resided in the United States for a period of less than one
year, provided that no time shall count towards this one year
while a person admitted to the United States under the Compact,
or the Compact, as amended, is engaged in full-time study in
the United States. Any person described in section 141(a)(5) who
is not a citizen of the Federated States of Micronesia shall be
subject to United States laws relating to selective service.
Section 342
The Government of the United States shall have enrolled, at
any one time, at least one qualified student from the Federated
States of Micronesia, as may be nominated by the Government
of the Federated States of Micronesia, in each of:
(a) The United States Coast Guard Academy pursuant to 14
U.S.C. 195.
(b) The United States Merchant Marine Academy pursuant
to 46 U.S.C. 1295(b)(6), provided that the provisions of 46 U.S.C.
1295b(b)(6)(C) shall not apply to the enrollment of students pursu-
ant to section 342(b) of this Compact, as amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Government
of the Federated States of Micronesia shall continue to maintain
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a Joint Committee empowered to consider disputes arising under
the implementation of this Title and its related agreements.
(b) The membership of the Joint Committee shall comprise
selected senior officials of the two Governments. The senior United
States military commander in the Pacific area shall be the senior
United States member of the Joint Committee. For the meetings
of the Joint Committee, each of the two Governments may designate
additional or alternate representatives as appropriate for the subject
matter under consideration.
(c) Unless otherwise mutually agreed, the Joint Committee
shall meet annually at a time and place to be designated, after
appropriate consultation, by the Government of the United States.
The Joint Committee also shall meet promptly upon request of
either of its members. The Joint Committee shall follow such proce-
dures, including the establishment of functional subcommittees,
as the members may from time to time agree. Upon notification
by the Government of the United States, the Joint Committee
of the United States and the Federated States of Micronesia shall
meet promptly in a combined session with the Joint Committee
established and maintained by the Government of the United States
and the Republic of the Marshall Islands to consider matters within
the jurisdiction of the two Joint Committees.
(d) Unresolved issues in the Joint Committee shall be referred
to the Governments for resolution, and the Government of the
Federated States of Micronesia shall be afforded, on an expeditious
basis, an opportunity to raise its concerns with the United States
Secretary of Defense personally regarding any unresolved issue
which threatens its continued association with the Government
of the United States.
Section 352
In the exercise of its authority and responsibility under Title
Three, the Government of the United States shall accord due respect
to the authority and responsibility of the Government of the Fed-
erated States of Micronesia under Titles One, Two and Four and
to the responsibility of the Government of the Federated States
of Micronesia to assure the well-being of its people.
Section 353
(a) The Government of the United States shall not include
the Government of the Federated States of Micronesia as a named
party to a formal declaration of war, without that Government’s
consent.
(b) Absent such consent, this Compact, as amended, is without
prejudice, on the ground of belligerence or the existence of a state
of war, to any claims for damages which are advanced by the
citizens, nationals or Government of the Federated States of Micro-
nesia, which arise out of armed conflict subsequent to November
3, 1986, and which are:
(1) petitions to the Government of the United States for
redress; or
(2) claims in any manner against the government, citizens,
nationals or entities of any third country.
(c) Petitions under section 353(b)(1) shall be treated as if they
were made by citizens of the United States.
Section 354
(a) The Government of the United States and the Government
of the Federated States of Micronesia are jointly committed to
continue their security and defense relations, as set forth in this
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Title. Accordingly, it is the intention of the two countries that
the provisions of this Title shall remain binding as long as this
Compact, as amended, remains in effect, and thereafter as mutually
agreed, unless earlier terminated by mutual agreement pursuant
to section 441, or amended pursuant to Article III of Title Four.
If at any time the Government of the United States, or the Govern-
ment of the Federated States of Micronesia, acting unilaterally,
terminates this Title, such unilateral termination shall be consid-
ered to be termination of the entire Compact, in which case the
provisions of section 442 and 452 (in the case of termination by
the Government of the United States) or sections 443 and 453
(in the case of termination by the Government of the Federated
States of Micronesia), with the exception of paragraph (3) of sub-
section (a) of section 452 or paragraph (3) of subsection (a) of
section 453, as the case may be, shall apply.
(b) The Government of the United States recognizes, in view
of the special relationship between the Government of the United
States and the Government of the Federated States of Micronesia,
and in view of the existence of the separate agreement regarding
mutual security concluded with the Government of the Federated
States of Micronesia pursuant to sections 321 and 323, that, even
if this Title should terminate, any attack on the Federated States
of Micronesia during the period in which such separate agreement
is in effect, would constitute a threat to the peace and security
of the entire region and a danger to the United States. In the
event of such an attack, the Government of the United States
would take action to meet the danger to the United States and
to the Federated States of Micronesia in accordance with its con-
stitutional processes.
(c) As reflected in Article 21(1)(b) of the Trust Fund Agreement,
the Government of the United States and the Government of the
Federated States of Micronesia further recognize, in view of the
special relationship between their countries, that even if this Title
should terminate, the Government of the Federated States of Micro-
nesia shall refrain from actions which the Government of the United
States determines, after appropriate consultation with that Govern-
ment, to be incompatible with its authority and responsibility for
security and defense matters in or relating to the Federated States
of Micronesia or the Republic of the Marshall Islands.
TITLE FOUR
GENERAL PROVISIONS
Article I
Approval and Effective Date
Section 411
Pursuant to section 432 of the Compact and subject to sub-
section (e) of section 461 of the Compact, as amended, the Compact,
as amended, shall come into effect upon mutual agreement between
the Government of the United States and the Government of the
Federated States of Micronesia subsequent to completion of the
following:
(a) Approval by the Government of the Federated States
of Micronesia in accordance with its constitutional processes.
Applicability.
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(b) Approval by the Government of the United States in
accordance with its constitutional processes.
Article II
Conference and Dispute Resolution
Section 421
The Government of the United States shall confer promptly
at the request of the Government of the Federated States of Micro-
nesia and that Government shall confer promptly at the request
of the Government of the United States on matters relating to
the provisions of this Compact, as amended, or of its related agree-
ments.
Section 422
In the event the Government of the United States or the
Government of the Federated States of Micronesia, after conferring
pursuant to section 421, determines that there is a dispute and
gives written notice thereof, the two Governments shall make a
good faith effort to resolve the dispute between themselves.
Section 423
If a dispute between the Government of the United States
and the Government of the Federated States of Micronesia cannot
be resolved within 90 days of written notification in the manner
provided in section 422, either party to the dispute may refer
it to arbitration in accordance with section 424.
Section 424
Should a dispute be referred to arbitration as provided for
in section 423, an Arbitration Board shall be established for the
purpose of hearing the dispute and rendering a decision which
shall be binding upon the two parties to the dispute unless the
two parties mutually agree that the decision shall be advisory.
Arbitration shall occur according to the following terms:
(a) An Arbitration Board shall consist of a Chairman and
two other members, each of whom shall be a citizen of a
party to the dispute. Each of the two Governments which
is a party to the dispute shall appoint one member to the
Arbitration Board. If either party to the dispute does not fulfill
the appointment requirements of this section within 30 days
of referral of the dispute to arbitration pursuant to section
423, its member on the Arbitration Board shall be selected
from its own standing list by the other party to the dispute.
Each Government shall maintain a standing list of 10 can-
didates. The parties to the dispute shall jointly appoint a Chair-
man within 15 days after selection of the other members of
the Arbitration Board. Failing agreement on a Chairman, the
Chairman shall be chosen by lot from the standing lists of
the parties to the dispute within 5 days after such failure.
(b) Unless otherwise provided in this Compact, as amended,
or its related agreements, the Arbitration Board shall have
jurisdiction to hear and render its final determination on all
disputes arising exclusively under Articles I, II, III, IV and
V of Title One, Title Two, Title Four, and their related agree-
ments.
(c) Each member of the Arbitration Board shall have one
vote. Each decision of the Arbitration Board shall be reached
by majority vote.
Deadlines.
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(d) In determining any legal issue, the Arbitration Board
may have reference to international law and, in such reference,
shall apply as guidelines the provisions set forth in Article
38 of the Statute of the International Court of Justice.
(e) The Arbitration Board shall adopt such rules for its
proceedings as it may deem appropriate and necessary, but
such rules shall not contravene the provisions of this Compact,
as amended. Unless the parties provide otherwise by mutual
agreement, the Arbitration Board shall endeavor to render
its decision within 30 days after the conclusion of arguments.
The Arbitration Board shall make findings of fact and conclu-
sions of law and its members may issue dissenting or individual
opinions. Except as may be otherwise decided by the Arbitration
Board, one-half of all costs of the arbitration shall be borne
by the Government of the United States and the remainder
shall be borne by the Government of the Federated States
of Micronesia.
Article III
Amendment
Section 431
The provisions of this Compact, as amended, may be further
amended by mutual agreement of the Government of the United
States and the Government of the Federated States of Micronesia,
in accordance with their respective constitutional processes.
Article IV
Termination
Section 441
This Compact, as amended, may be terminated by mutual
agreement of the Government of the Federated States of Micronesia
and the Government of the United States, in accordance with their
respective constitutional processes. Such mutual termination of this
Compact, as amended, shall be without prejudice to the continued
application of section 451 of this Compact, as amended, and the
provisions of the Compact, as amended, set forth therein.
Section 442
Subject to section 452, this Compact, as amended, may be
terminated by the Government of the United States in accordance
with its constitutional processes. Such termination shall be effective
on the date specified in the notice of termination by the Government
of the United States but not earlier than six months following
delivery of such notice. The time specified in the notice of termi-
nation may be extended. Such termination of this Compact, as
amended, shall be without prejudice to the continued application
of section 452 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
Section 443
This Compact, as amended, shall be terminated by the Govern-
ment of the Federated States of Micronesia, pursuant to its constitu-
tional processes, subject to section 453 if the people represented
by that Government vote in a plebiscite to terminate the Compact,
as amended, or by another process permitted by the FSM constitu-
tion and mutually agreed between the Governments of the United
Deadline.
Rules.
Applicability.
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States and the Federated States of Micronesia. The Government
of the Federated States of Micronesia shall notify the Government
of the United States of its intention to call such a plebiscite,
or to pursue another mutually agreed and constitutional process,
which plebiscite or process shall take place not earlier than three
months after delivery of such notice. The plebiscite or other process
shall be administered by the Government of the Federated States
of Micronesia in accordance with its constitutional and legislative
processes. If a majority of the valid ballots cast in the plebiscite
or other process favors termination, the Government of the Fed-
erated States of Micronesia shall, upon certification of the results
of the plebiscite or other process, give notice of termination to
the Government of the United States, such termination to be effec-
tive on the date specified in such notice but not earlier than three
months following the date of delivery of such notice. The time
specified in the notice of termination may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441, economic
and other assistance by the Government of the United States shall
continue only if and as mutually agreed by the Governments of
the United States and the Federated States of Micronesia, and
in accordance with the parties’ respective constitutional processes.
(b) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in subsections
(b) and (c) of section 354 of this Compact, as amended, and the
separate agreement entered into consistent with those subsections,
if termination occurs pursuant to section 441 prior to the twentieth
anniversary of the effective date of this Compact, as amended,
the United States shall continue to make contributions to the Trust
Fund described in section 215 of this Compact, as amended.
(c) In view of the special relationship of the United States
and the Federated States of Micronesia described in subsection
(b) of this section, if termination occurs pursuant to section 441
following the twentieth anniversary of the effective date of this
Compact, as amended, the Federated States of Micronesia shall
be entitled to receive proceeds from the Trust Fund described in
section 215 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement governing the
distribution of such proceeds.
Section 452
(a) Should termination occur pursuant to section 442 prior
to the twentieth anniversary of the effective date of this Compact,
as amended, the following provisions of this Compact, as amended,
shall remain in full force and effect until the twentieth anniversary
of the effective date of this Compact, as amended, and thereafter
as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
Notification.
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(b) Should termination occur pursuant to section 442 before
the twentieth anniversary of the effective date of the Compact,
as amended:
(1) Except as provided in paragraph (2) of this subsection
and subsection (c) of this section, economic and other assistance
by the United States shall continue only if and as mutually
agreed by the Governments of the United States and the Fed-
erated States of Micronesia.
(2) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in sub-
sections (b) and (c) of section 354 of this Compact, as amended,
and the separate agreement regarding mutual security, and
the Trust Fund Agreement, the United States shall continue
to make contributions to the Trust Fund described in section
215 of this Compact, as amended, in the manner described
in the Trust Fund Agreement.
(c) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 442 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Federated States of Micronesia shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 215 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 453
(a) Should termination occur pursuant to section 443 prior
to the twentieth anniversary of the effective date of this Compact,
as amended, the following provisions of this Compact, as amended,
shall remain in full force and effect until the twentieth anniversary
of the effective date of this Compact, as amended, and thereafter
as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Upon receipt of notice of termination pursuant to section
443, the Government of the United States and the Government
of the Federated States of Micronesia shall promptly consult with
regard to their future relationship. Except as provided in subsection
(c) and (d) of this section, these consultations shall determine the
level of economic and other assistance, if any, which the Govern-
ment of the United States shall provide to the Government of
the Federated States of Micronesia for the period ending on the
twentieth anniversary of the effective date of this Compact, as
amended, and for any period thereafter, if mutually agreed.
(c) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 prior to the
twentieth anniversary of the effective date of this Compact, as
amended, the United States shall continue to make contributions
to the Trust Fund described in section 215 of this Compact, as
amended, in the manner described in the Trust Fund Agreement.
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(d) In view of the special relationship of the United States
and the Federated States of Micronesia, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Federated States of Micronesia shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 215 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact, as
amended:
(a) The Government of the United States reaffirms its
continuing interest in promoting the economic advancement
and budgetary self-reliance of the people of the Federated States
of Micronesia.
(b) The separate agreements referred to in Article II of
Title Three shall remain in effect in accordance with their
terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only, and without
prejudice to the views of the Government of the United States
or the Government of the Federated States of Micronesia as to
the nature and extent of the jurisdiction of either of them under
international law, the following terms shall have the following
meanings:
(a) ‘‘Trust Territory of the Pacific Islands’’ means the area
established in the Trusteeship Agreement consisting of the
former administrative districts of Kosrae, Yap, Ponape, the
Marshall Islands and Truk as described in Title One, Trust
Territory Code, section 1, in force on January 1, 1979. This
term does not include the area of Palau or the Northern Mar-
iana Islands.
(b) ‘‘Trusteeship Agreement’’ means the agreement setting
forth the terms of trusteeship for the Trust Territory of the
Pacific Islands, approved by the Security Council of the United
Nations April 2, 1947, and by the United States July 18,
1947, entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S.
1665, 8 U.N.T.S. 189.
(c) ‘‘The Federated States of Micronesia’’ and ‘‘the Republic
of the Marshall Islands’’ are used in a geographic sense and
include the land and water areas to the outer limits of the
territorial sea and the air space above such areas as now
or hereafter recognized by the Government of the United States.
(d) ‘‘Compact’’ means the Compact of Free Association
Between the United States and the Federated States of Micro-
nesia and the Marshall Islands, that was approved by the
United States Congress in section 201 of Public Law 99–239
(Jan. 14, 1986) and went into effect with respect to the Fed-
erated States of Micronesia on November 3, 1986.
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(e) ‘‘Compact, as amended’’ means the Compact of Free
Association Between the United States and the Federated
States of Micronesia, as amended. The effective date of the
Compact, as amended, shall be on a date to be determined
by the President of the United States, and agreed to by the
Government of the Federated States of Micronesia, following
formal approval of the Compact, as amended, in accordance
with section 411 of this Compact, as amended.
(f) ‘‘Government of the Federated States of Micronesia’’
means the Government established and organized by the Con-
stitution of the Federated States of Micronesia including all
the political subdivisions and entities comprising that Govern-
ment.
(g) ‘‘Government of the Republic of the Marshall Islands’’
means the Government established and organized by the Con-
stitution of the Republic of the Marshall Islands including
all the political subdivisions and entities comprising that
Government.
(h) The following terms shall be defined consistent with
the 1998 Edition of the Radio Regulations of the International
Telecommunications Union as follows:
(1) ‘‘Radiocommunication’’ means telecommunication by
means of radio waves.
(2) ‘‘Station’’ means one or more transmitters or
receivers or a combination of transmitters and receivers,
including the accessory equipment, necessary at one loca-
tion for carrying on a radiocommunication service, or the
radio astronomy service.
(3) 
‘‘Broadcasting 
Service’’ 
means 
a
radiocommunication service in which the transmissions are
intended for direct reception by the general public. This
service may include sound transmissions, television trans-
missions or other types of transmission.
(4) ‘‘Broadcasting Station’’ means a station in the
broadcasting service.
(5) ‘‘Assignment (of a radio frequency or radio fre-
quency channel)’’ means an authorization given by an
administration for a radio station to use a radio frequency
or radio frequency channel under specified conditions.
(6) ‘‘Telecommunication’’ means any transmission,
emission or reception of signs, signals, writings, images
and sounds or intelligence of any nature by wire, radio,
optical or other electromagnetic systems.
(i) ‘‘Military Areas and Facilities’’ means those areas and
facilities in the Federated States of Micronesia reserved or
acquired by the Government of the Federated States of Micro-
nesia for use by the Government of the United States, as
set forth in the separate agreements referred to in section
321.
(j) ‘‘Tariff Schedules of the United States’’ means the Tariff
Schedules of the United States as amended from time to time
and as promulgated pursuant to United States law and includes
the Tariff Schedules of the United States Annotated (TSUSA),
as amended.
(k) ‘‘Vienna Convention on Diplomatic Relations’’ means
the Vienna Convention on Diplomatic Relations, done April
18, 1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Effective date.
President.
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Section 462
(a) The Government of the United States and the Government
of the Federated States of Micronesia previously have concluded
agreements pursuant to the Compact, which shall remain in effect
and shall survive in accordance with their terms, as follows:
(1) Agreement Concluded Pursuant to Section 234 of the
Compact;
(2) Agreement Between the Government of the United
States and the Government of the Federated States of Micro-
nesia Regarding Friendship, Cooperation and Mutual Security
Concluded Pursuant to Sections 321 and 323 of the Compact
of Free Association; and
(3) Agreement Between the Government of the United
States of America and the Federated States of Micronesia
Regarding Aspects of the Marine Sovereignty and Jurisdiction
of the Federated States of Micronesia.
(b) The Government of the United States and the Government
of the Federated States of Micronesia shall conclude prior to the
date of submission of this Compact, as amended, to the legislatures
of the two countries, the following related agreements which shall
come into effect on the effective date of this Compact, as amended,
and shall survive in accordance with their terms, as follows:
(1) Federal Programs and Services Agreement Between
the Government of the United States of America and the
Government of the Federated States of Micronesia Concluded
Pursuant to Article III of Title One, Article II of Title Two
(including Section 222), and Section 231 of the Compact of
Free Association, as amended which includes:
(i) Postal Services and Related Programs;
(ii) Weather Services and Related Programs;
(iii) Civil Aviation Safety Service and Related Pro-
grams;
(iv) Civil Aviation Economic Services and Related Pro-
grams;
(v) United States Disaster Preparedness and Response
Services and Related Programs;
(vi) Federal Deposit Insurance Corporation Services
and Related Programs; and
(vii) Telecommunications Services and Related Pro-
grams.
(2) Agreement Between the Government of the United
States of America and the Government of the Federated States
of Micronesia on Extradition, Mutual Assistance in Law
Enforcement Matters and Penal Sanctions Concluded Pursuant
to Section 175(a) of the Compact of Free Association, as
amended;
(3) Agreement Between the Government of the United
States of America and the Government of the Federated States
of Micronesia on Labor Recruitment Concluded Pursuant to
Section 175(b) of the Compact of Free Association, as amended;
(4) Agreement Concerning Procedures for the Implementa-
tion of United States Economic Assistance Provided in the
Compact of Free Association, as Amended, of Free Association
Between the Government of the United States of America and
Government of the Federated States of Micronesia;
(5) Agreement Between the Government of the United
States of America and the Government of the Federated States
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of Micronesia Implementing Section 215 and Section 216 of
the Compact, as Amended, Regarding a Trust Fund;
(6) Agreement Regarding the Military Use and Operating
Rights of the Government of the United States in the Federated
States of Micronesia Concluded Pursuant to Sections 211(b),
321 and 323 of the Compact of Free Association, as Amended;
and the
(7) Status of Forces Agreement Between the Government
of the United States of America and the Government of the
Federated States of Micronesia Concluded Pursuant to Section
323 of the Compact of Free Association, as Amended.
Section 463
(a) Except as set forth in subsection (b) of this section, any
reference in this Compact, as amended, to a provision of the United
States Code or the Statutes at Large of the United States constitutes
the incorporation of the language of such provision into this Com-
pact, as amended, as such provision was in force on the effective
date of this Compact, as amended.
(b) Any reference in Articles IV and Article VI of Title One
and Sections 174, 175, 178 and 342 to a provision of the United
States Code or the Statutes at Large of the United States or
to the Privacy Act, the Freedom of Information Act, the Administra-
tive Procedure Act or the Immigration and Nationality Act con-
stitutes the incorporation of the language of such provision into
this Compact, as amended, as such provision was in force on the
effective date of this Compact, as amended, or as it may be amended
thereafter on a non-discriminatory basis according to the constitu-
tional processes of the United States.
Article VII
Concluding Provisions
Section 471
Both the Government of the United States and the Government
of the Federated States of Micronesia shall take all necessary
steps, of a general or particular character, to ensure, no later
than the entry into force date of this Compact, as amended, the
conformity of its laws, regulations and administrative procedures
with the provisions of this Compact, as amended, or in the case
of subsection (d) of section 141, as soon as reasonably possible
thereafter.
Section 472
This Compact, as amended, may be accepted, by signature
or otherwise, by the Government of the United States and the
Government of the Federated States of Micronesia.
IN WITNESS WHEREOF, the undersigned, duly authorized,
have signed this Compact of Free Association, as amended, which
shall enter into force upon the exchange of diplomatic notes by
which the Government of the United States of America and the
Government of the Federated States of Micronesia inform each
other about the fulfillment of their respective requirements for
entry into force.
DONE at Pohnpei, Federated States of Micronesia, in duplicate,
this fourteenth (14) day of May, 2003, each text being equally
authentic.
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PUBLIC LAW 108–188—DEC. 17, 2003
Signed (May 14, 2003)
Signed (May 14, 2003)
For the Government of the
For the Government of the
United States of America:
Federated States of Micronesia:
Ambassador Larry M. Dinger
His Excellency Jesse B. Marehalau
U.S. Ambassador to the
Ambassador Extraordinary and
Federated States of Micronesia
Plenipotentiary
(b) COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS.—The
Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the Republic
of the Marshall Islands is as follows:
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE REPUBLIC OF THE MAR-
SHALL ISLANDS
Affirming that their Governments and their relationship as
Governments are founded upon respect for human rights and funda-
mental freedoms for all, and that the people of the Republic of
the Marshall Islands have the right to enjoy self-government; and
Affirming the common interests of the United States of America
and the Republic of the Marshall Islands in creating and
maintaining their close and mutually beneficial relationship
through the free and voluntary association of their respective
Governments; and
Affirming the interest of the Government of the United States
in promoting the economic advancement and budgetary self-reliance
of the Republic of the Marshall Islands; and
Recognizing that their relationship until the entry into force
on October 21, 1986 of the Compact was based upon the Inter-
national Trusteeship System of the United Nations Charter, and
in particular Article 76 of the Charter; and that pursuant to Article
76 of the Charter, the people of the Republic of the Marshall
Islands have progressively developed their institutions of self-
government, and that in the exercise of their sovereign right to
self-determination they, through their freely-expressed wishes, have
adopted a Constitution appropriate to their particular cir-
cumstances; and
Recognizing that the Compact reflected their common desire
to terminate the Trusteeship and establish a government-to-govern-
ment relationship which was in accordance with the new political
status based on the freely expressed wishes of the people of the
Republic of the Marshall Islands and appropriate to their particular
circumstances; and
Recognizing that the people of the Republic of the Marshall
Islands have and retain their sovereignty and their sovereign right
to self-determination and the inherent right to adopt and amend
their own Constitution and form of government and that the
approval of the entry of the Government of the Republic of the
Marshall Islands into the Compact by the people of the Republic
of the Marshall Islands constituted an exercise of their sovereign
right to self-determination; and
Recognizing the common desire of the people of the United
States and the people of the Republic of the Marshall Islands
48 USC 1921
note.
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117 STAT. 2796
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to maintain their close government-to-government relationship, the
United States and the Republic of the Marshall Islands:
NOW, THEREFORE, MUTUALLY AGREE to continue and
strengthen their relationship of free association by amending the
Compact, which continues to provide a full measure of self-govern-
ment for the people of the Republic of the Marshall Islands; and
FURTHER AGREE that the relationship of free association
derives from and is as set forth in this Compact, as amended,
by the Governments of the United States and the Republic of
the Marshall Islands; and that, during such relationship of free
association, the respective rights and responsibilities of the Govern-
ment of the United States and the Government of the Republic
of the Marshall Islands in regard to this relationship of free associa-
tion derive from and are as set forth in this Compact, as amended.
TITLE ONE
GOVERNMENTAL RELATIONS
Article I
Self-Government
Section 111
The people of the Republic of the Marshall Islands, acting
through the Government established under their Constitution, are
self-governing.
Article II
Foreign Affairs
Section 121
(a) The Government of the Republic of the Marshall Islands
has the capacity to conduct foreign affairs and shall do so in
its own name and right, except as otherwise provided in this Com-
pact, as amended.
(b) The foreign affairs capacity of the Government of the
Republic of the Marshall Islands includes:
(1) the conduct of foreign affairs relating to law of the
sea and marine resources matters, including the harvesting,
conservation, exploration or exploitation of living and non-living
resources from the sea, seabed or subsoil to the full extent
recognized under international law;
(2) the conduct of its commercial, diplomatic, consular,
economic, trade, banking, postal, civil aviation, communications,
and cultural relations, including negotiations for the receipt
of developmental loans and grants and the conclusion of
arrangements with other governments and international and
intergovernmental organizations, including any matters spe-
cially benefiting its individual citizens.
(c) The Government of the United States recognizes that the
Government of the Republic of the Marshall Islands has the capacity
to enter into, in its own name and right, treaties and other inter-
national agreements with governments and regional and inter-
national organizations.
(d) In the conduct of its foreign affairs, the Government of
the Republic of the Marshall Islands confirms that it shall act
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in accordance with principles of international law and shall settle
its international disputes by peaceful means.
Section 122
The Government of the United States shall support applications
by the Government of the Republic of the Marshall Islands for
membership or other participation in regional or international
organizations as may be mutually agreed.
Section 123
(a) In recognition of the authority and responsibility of the
Government of the United States under Title Three, the Govern-
ment of the Republic of the Marshall Islands shall consult, in
the conduct of its foreign affairs, with the Government of the
United States.
(b) In recognition of the foreign affairs capacity of the Govern-
ment of the Republic of the Marshall Islands, the Government
of the United States, in the conduct of its foreign affairs, shall
consult with the Government of the Republic of the Marshall Islands
on matters that the Government of the United States regards
as relating to or affecting the Government of the Republic of the
Marshall Islands.
Section 124
The Government of the United States may assist or act on
behalf of the Government of the Republic of the Marshall Islands
in the area of foreign affairs as may be requested and mutually
agreed from time to time. The Government of the United States
shall not be responsible to third parties for the actions of the
Government of the Republic of the Marshall Islands undertaken
with the assistance or through the agency of the Government of
the United States pursuant to this section unless expressly agreed.
Section 125
The Government of the United States shall not be responsible
for nor obligated by any actions taken by the Government of the
Republic of the Marshall Islands in the area of foreign affairs,
except as may from time to time be expressly agreed.
Section 126
At the request of the Government of the Republic of the Mar-
shall Islands and subject to the consent of the receiving state,
the Government of the United States shall extend consular assist-
ance on the same basis as for citizens of the United States to
citizens of the Republic of the Marshall Islands for travel outside
the Republic of the Marshall Islands, the United States and its
territories and possessions.
Section 127
Except as otherwise provided in this Compact, as amended,
or its related agreements, all obligations, responsibilities, rights
and benefits of the Government of the United States as Admin-
istering Authority which resulted from the application pursuant
to the Trusteeship Agreement of any treaty or other international
agreement to the Trust Territory of the Pacific Islands on October
20, 1986, are, as of that date, no longer assumed and enjoyed
by the Government of the United States.
Article III
Communications
Section 131
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(a) The Government of the Republic of the Marshall Islands
has full authority and responsibility to regulate its domestic and
foreign communications, and the Government of the United States
shall provide communications assistance as mutually agreed.
(b) The Government of the Republic of the Marshall Islands
has elected to undertake all functions previously performed by
the Government of the United States with respect to domestic
and foreign communications, except for those functions set forth
in a separate agreement entered into pursuant to this section
of the Compact, as amended.
Section 132
The Government of the Republic of the Marshall Islands shall
permit the Government of the United States to operate tele-
communications services in the Republic of the Marshall Islands
to the extent necessary to fulfill the obligations of the Government
of the United States under this Compact, as amended, in accordance
with the terms of separate agreements entered into pursuant to
this section of the Compact, as amended.
Article IV
Immigration
Section 141
(a) In furtherance of the special and unique relationship that
exists between the United States and the Republic of the Marshall
Islands, under the Compact, as amended, any person in the fol-
lowing categories may be admitted to lawfully engage in occupa-
tions, and establish residence as a nonimmigrant in the United
States and its territories and possessions (the ‘‘United States’’)
without regard to paragraphs (5) or (7)(B)(i)(II) of section 212(a)
of the Immigration and Nationality Act, as amended, 8 U.S.C.
1182(a)(5) or (7)(B)(i)(II):
(1) a person who, on October 21, 1986, was a citizen of
the Trust Territory of the Pacific Islands, as defined in Title
53 of the Trust Territory Code in force on January 1, 1979,
and has become and remains a citizen of the Republic of the
Marshall Islands;
(2) a person who acquires the citizenship of the Republic
of the Marshall Islands at birth, on or after the effective date
of the Constitution of the Republic of the Marshall Islands;
(3) an immediate relative of a person referred to in para-
graphs (1) or (2) of this section, provided that such immediate
relative is a naturalized citizen of the Republic of the Marshall
Islands who has been an actual resident there for not less
than five years after attaining such naturalization and who
holds a certificate of actual residence, and further provided,
that, in the case of a spouse, such spouse has been married
to the person referred to in paragraph (1) or (2) of this section
for at least five years, and further provided, that the Govern-
ment of the United States is satisfied that such naturalized
citizen meets the requirement of subsection (b) of section 104
of Public Law 99–239 as it was in effect on the day prior
to the effective date of this Compact, as amended;
(4) a naturalized citizen of the Republic of the Marshall
Islands who was an actual resident there for not less than
five years after attaining such naturalization and who satisfied
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these requirements as of April 30, 2003, who continues to
be an actual resident and holds a certificate of actual residence,
and whose name is included in a list furnished by the Govern-
ment of the Republic of the Marshall Islands to the Government
of the United States no later than the effective date of the
Compact, as amended, in form and content acceptable to the
Government of the United States, provided, that the Govern-
ment of the United States is satisfied that such naturalized
citizen meets the requirement of subsection (b) of section 104
of Public Law 99–239 as it was in effect on the day prior
to the effective date of this Compact, as amended; or
(5) an immediate relative of a citizen of the Republic of
the Marshall Islands, regardless of the immediate relative’s
country of citizenship or period of residence in the Republic
of the Marshall Islands, if the citizen of the Republic of the
Marshall Islands is serving on active duty in any branch of
the United States Armed Forces, or in the active reserves.
(b) Notwithstanding subsection (a) of this section, a person
who is coming to the United States pursuant to an adoption outside
the United States, or for the purpose of adoption in the United
States, is ineligible for admission under the Compact and the Com-
pact, as amended. This subsection shall apply to any person who
is or was an applicant for admission to the United States on
or after March 1, 2003, including any applicant for admission in
removal proceedings (including appellate proceedings) on or after
March 1, 2003, regardless of the date such proceedings were com-
menced. This subsection shall have no effect on the ability of
the Government of the United States or any United States State
or local government to commence or otherwise take any action
against any person or entity who has violated any law relating
to the adoption of any person.
(c) Notwithstanding subsection (a) of this section, no person
who has been or is granted citizenship in the Republic of the
Marshall Islands, or has been or is issued a Republic of the Marshall
Islands passport pursuant to any investment, passport sale, or
similar program has been or shall be eligible for admission to
the United States under the Compact or the Compact, as amended.
(d) A person admitted to the United States under the Compact,
or the Compact, as amended, shall be considered to have the permis-
sion of the Government of the United States to accept employment
in the United States. An unexpired Republic of the Marshall Islands
passport with unexpired documentation issued by the Government
of the United States evidencing admission under the Compact or
the Compact, as amended, shall be considered to be documentation
establishing identity and employment authorization under section
274A(b)(1)(B) of the Immigration and Nationality Act, as amended,
8 U.S.C. 1324a(b)(1)(B). The Government of the United States will
take reasonable and appropriate steps to implement and publicize
this provision, and the Government of the Republic of the Marshall
Islands will also take reasonable and appropriate steps to publicize
this provision.
(e) For purposes of the Compact and the Compact, as amended:
(1) the term ‘‘residence’’ with respect to a person means
the person’s principal, actual dwelling place in fact, without
regard to intent, as provided in section 101(a)(33) of the
Immigration and Nationality Act, as amended, 8 U.S.C.
Applicability.
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1101(a)(33), and variations of the term ‘‘residence,’’ including
‘‘resident’’ and ‘‘reside,’’ shall be similarly construed;
(2) the term ‘‘actual residence’’ means physical presence
in the Republic of the Marshall Islands during eighty-five per-
cent of the five-year period of residency required by section
141(a)(3) and (4);
(3) the term ‘‘certificate of actual residence’’ means a certifi-
cate issued to a naturalized citizen by the Government of the
Republic of the Marshall Islands stating that the citizen has
complied with the actual residence requirement of section
141(a)(3) or (4);
(4) the term ‘‘nonimmigrant’’ means an alien who is not
an ‘‘immigrant’’ as defined in section 101(a)(15) of such Act,
8 U.S.C. 1101(a)(15); and
(5) the term ‘‘immediate relative’’ means a spouse, or
unmarried son or unmarried daughter less than 21 years of
age.
(f) The Immigration and Nationality Act, as amended, shall
apply to any person admitted or seeking admission to the United
States (other than a United States possession or territory where
such Act does not apply) under the Compact or the Compact,
as amended, and nothing in the Compact or the Compact, as
amended, shall be construed to limit, preclude, or modify the
applicability of, with respect to such person:
(1) any ground of inadmissibility or deportability under
such Act (except sections 212(a)(5) and 212(a)(7)(B)(i)(II) of
such Act, as provided in subsection (a) of this section), and
any defense thereto, provided that, section 237(a)(5) of such
Act shall be construed and applied as if it reads as follows:
‘‘any alien who has been admitted under the Compact, or the
Compact, as amended, who cannot show that he or she has
sufficient means of support in the United States, is deportable;’’
(2) the authority of the Government of the United States
under section 214(a)(1) of such Act to provide that admission
as a nonimmigrant shall be for such time and under such
conditions as the Government of the United States may by
regulations prescribe;
(3) except for the treatment of certain documentation for
purposes of section 274A(b)(1)(B) of such Act as provided by
subsection (d) of this section of the Compact, as amended,
any requirement under section 274A, including but not limited
to section 274A(b)(1)(E);
(4) section 643 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996, Public Law 104–208,
and actions taken pursuant to section 643; and
(5) the authority of the Government of the United States
otherwise to administer and enforce the Immigration and
Nationality Act, as amended, or other United States law.
(g) Any authority possessed by the Government of the United
States under this section of the Compact or the Compact, as
amended, may also be exercised by the Government of a territory
or possession of the United States where the Immigration and
Nationality Act, as amended, does not apply, to the extent such
exercise of authority is lawful under a statute or regulation of
such territory or possession that is authorized by the laws of the
United States.
Applicability.
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(h) Subsection (a) of this section does not confer on a citizen
of the Republic of the Marshall Islands the right to establish the
residence necessary for naturalization under the Immigration and
Nationality Act, as amended, or to petition for benefits for alien
relatives under that Act. Subsection (a) of this section, however,
shall not prevent a citizen of the Republic of the Marshall Islands
from otherwise acquiring such rights or lawful permanent resident
alien status in the United States.
Section 142
(a) Any citizen or national of the United States may be admitted
to lawfully engage in occupations, and reside in the Republic of
the Marshall Islands, subject to the rights of the Government
of the Republic of the Marshall Islands to deny entry to or deport
any such citizen or national as an undesirable alien. Any determina-
tion of inadmissibility or deportability shall be based on reasonable
statutory grounds and shall be subject to appropriate administrative
and judicial review within the Republic of the Marshall Islands.
If a citizen or national of the United States is a spouse of a
citizen of the Republic of the Marshall Islands, the Government
of the Republic of the Marshall Islands shall allow the United
States citizen spouse to establish residence. Should the Republic
of the Marshall Islands citizen spouse predecease the United States
citizen spouse during the marriage, the Government of the Republic
of the Marshall Islands shall allow the United States citizen spouse
to continue to reside in the Republic of the Marshall Islands.
(b) In enacting any laws or imposing any requirements with
respect to citizens and nationals of the United States entering
the Republic of the Marshall Islands under subsection (a) of this
section, including any grounds of inadmissibility or deportability,
the Government of the Republic of the Marshall Islands shall accord
to such citizens and nationals of the United States treatment no
less favorable than that accorded to citizens of other countries.
(c) Consistent with subsection (a) of this section, with respect
to citizens and nationals of the United States seeking to engage
in employment or invest in the Republic of the Marshall Islands,
the Government of the Republic of the Marshall Islands shall adopt
immigration-related procedures no less favorable than those adopted
by the Government of the United States with respect to citizens
of the Republic of the Marshall Islands seeking employment in
the United States.
Section 143
Any person who relinquishes, or otherwise loses, his United
States nationality or citizenship, or his Republic of the Marshall
Islands citizenship, shall be ineligible to receive the privileges set
forth in sections 141 and 142. Any such person may apply for
admission to the United States or the Republic of the Marshall
Islands, as the case may be, in accordance with any other applicable
laws of the United States or the Republic of the Marshall Islands
relating to immigration of aliens from other countries. The laws
of the Republic of the Marshall Islands or the United States, as
the case may be, shall dictate the terms and conditions of any
such person’s stay.
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Article V
Representation
Section 151
Relations between the Government of the United States and
the Government of the Republic of the Marshall Islands shall be
conducted in accordance with the Vienna Convention on Diplomatic
Relations. In addition to diplomatic missions and representation,
the Governments may establish and maintain other offices and
designate other representatives on terms and in locations as may
be mutually agreed.
Section 152
(a) Any citizen or national of the United States who, without
authority of the United States, acts as the agent of the Government
of the Republic of the Marshall Islands with regard to matters
specified in the provisions of the Foreign Agents Registration Act
of 1938, as amended (22 U.S.C. 611 et seq.), that apply with
respect to an agent of a foreign principal shall be subject to the
requirements of such Act. Failure to comply with such requirements
shall subject such citizen or national to the same penalties and
provisions of law as apply in the case of the failure of such an
agent of a foreign principal to comply with such requirements.
For purposes of the Foreign Agents Registration Act of 1938, the
Republic of the Marshall Islands shall be considered to be a foreign
country.
(b) Subsection (a) of this section shall not apply to a citizen
or national of the United States employed by the Government
of the Republic of the Marshall Islands with respect to whom
the Government of the Republic of the Marshall Islands from time
to time certifies to the Government of the United States that
such citizen or national is an employee of the Republic of the
Marshall Islands whose principal duties are other than those mat-
ters specified in the Foreign Agents Registration Act of 1938, as
amended, that apply with respect to an agent of a foreign principal.
The agency or officer of the United States receiving such certifi-
cations shall cause them to be filed with the Attorney General,
who shall maintain a publicly available list of the persons so cer-
tified.
Article VI
Environmental Protection
Section 161
The Governments of the United States and the Republic of
the Marshall Islands declare that it is their policy to promote
efforts to prevent or eliminate damage to the environment and
biosphere and to enrich understanding of the natural resources
of the Republic of the Marshall Islands. In order to carry out
this policy, the Government of the United States and the Govern-
ment of the Republic of the Marshall Islands agree to the following
mutual and reciprocal undertakings:
(a) The Government of the United States:
(1) shall, for its activities controlled by the U.S. Army
at Kwajalein Atoll and in the Mid-Atoll Corridor and for
U.S. Army Kwajalein Atoll activities in the Republic of
the Marshall Islands, continue to apply the Environmental
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Standards and Procedures for United States Army Kwaja-
lein Atoll Activities in the Republic of the Marshall Islands,
unless and until those Standards or Procedures are modi-
fied by mutual agreement of the Governments of the United
States and the Republic of the Marshall Islands;
(2) shall apply the National Environmental Policy Act
of 1969, 83 Stat. 852, 42 U.S.C. 4321 et seq., to its activities
under the Compact, as amended, and its related agree-
ments as if the Republic of the Marshall Islands were
the United States;
(3) in the conduct of any activity not described in
section 161(a)(1) requiring the preparation of an Environ-
mental Impact Statement under section 161(a)(2), shall
comply with standards substantively similar to those
required by the following laws of the United States, taking
into account the particular environment of the Republic
of the Marshall Islands; the Endangered Species Act of
1973, as amended, 16 U.S.C. 1531 et seq.; the Clean Air
Act, as amended, 42 U.S.C. 7401 et seq.; the Clean Water
Act (Federal Water Pollution Control Act), as amended,
33 U.S.C. 1251 et seq.; Title I of the Marine Protection,
Research and Sanctuaries Act of 1972 (the Ocean Dumping
Act), 33 U.S.C. 1411 et seq.; the Toxic Substances Control
Act, as amended, 15 U.S.C. 2601 et seq.; the Solid Waste
Disposal Act, as amended, 42 U.S.C. 6901 et seq.; and
such other environmental protection laws of the United
States and the Republic of the Marshall Islands as may
be agreed from time to time with the Government of the
Republic of the Marshall Islands;
(4) shall, prior to conducting any activity not described
in section 161(a)(1) requiring the preparation of an
Environmental Impact Statement under section 161(a)(2),
develop, as agreed with the Government of the Republic
of the Marshall Islands, written environmental standards
and procedures to implement the substantive provisions
of the laws made applicable to U.S. Government activities
in the Republic of the Marshall Islands, pursuant to section
161(a)(3).
(b) The Government of the Republic of the Marshall Islands
shall continue to develop and implement standards and proce-
dures to protect its environment. As a reciprocal obligation
to the undertakings of the Government of the United States
under this Article, the Republic of the Marshall Islands, taking
into account its particular environment, shall continue to
develop and implement standards for environmental protection
substantively similar to those required of the Government of
the United States by section 161(a)(3) prior to its conducting
activities in the Republic of the Marshall Islands, substantively
equivalent to activities conducted there by the Government
of the United States and, as a further reciprocal obligation,
shall enforce those standards.
(c) Section 161(a), including any standard or procedure
applicable thereunder, and section 161(b) may be modified or
superseded in whole or in part by agreement of the Government
of the United States and the Government of the Republic of
the Marshall Islands.
Applicability.
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(d) In the event that an Environmental Impact Statement
is no longer required under the laws of the United States
for major Federal actions significantly affecting the quality
of the human environment, the regulatory regime established
under sections 161(a)(3) and 161(a)(4) shall continue to apply
to such activities of the Government of the United States until
amended by mutual agreement.
(e) The President of the United States may exempt any
of the activities of the Government of the United States under
this Compact, as amended, and its related agreements from
any environmental standard or procedure which may be
applicable under sections 161(a)(3) and 161(a)(4) if the Presi-
dent determines it to be in the paramount interest of the
Government of the United States to do so, consistent with
Title Three of this Compact, as amended, and the obligations
of the Government of the United States under international
law. Prior to any decision pursuant to this subsection, the
views of the Government of the Republic of the Marshall Islands
shall be sought and considered to the extent practicable. If
the President grants such an exemption, to the extent prac-
ticable, a report with his reasons for granting such exemption
shall be given promptly to the Government of the Republic
of the Marshall Islands.
(f) The laws of the United States referred to in section
161(a)(3) shall apply to the activities of the Government of
the United States under this Compact, as amended, and its
related agreements only to the extent provided for in this
section.
Section 162
The Government of the Republic of the Marshall Islands may
bring an action for judicial review of any administrative agency
action or any activity of the Government of the United States
pursuant to section 161(a) for enforcement of the obligations of
the Government of the United States arising thereunder. The
United States District Court for the District of Hawaii and the
United States District Court for the District of Columbia shall
have jurisdiction over such action or activity, and over actions
brought under section 172(b) which relate to the activities of the
Government of the United States and its officers and employees,
governed by section 161, provided that:
(a) Such actions may only be civil actions for any appro-
priate civil relief other than punitive damages against the
Government of the United States or, where required by law,
its officers in their official capacity; no criminal actions may
arise under this section.
(b) Actions brought pursuant to this section may be initi-
ated only by the Government of the Republic of the Marshall
Islands.
(c) Administrative agency actions arising under section 161
shall be reviewed pursuant to the standard of judicial review
set forth in 5 U.S.C. 706.
(d) The United States District Court for the District of
Hawaii and the United States District Court for the District
of Columbia shall have jurisdiction to issue all necessary proc-
esses, and the Government of the United States agrees to
submit itself to the jurisdiction of the court; decisions of the
United States District Court shall be reviewable in the United
Applicability.
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States Court of Appeals for the Ninth Circuit or the United
States Court of Appeals for the District of Columbia, respec-
tively, or in the United States Supreme Court as provided
by the laws of the United States.
(e) The judicial remedy provided for in this section shall
be the exclusive remedy for the judicial review or enforcement
of the obligations of the Government of the United States
under this Article and actions brought under section 172(b),
which relate to the activities of the Government of the United
States and its officers and employees governed by section 161.
(f) In actions pursuant to this section, the Government
of the Republic of the Marshall Islands shall be treated as
if it were a United States citizen.
Section 163
(a) For the purpose of gathering data necessary to study the
environmental effects of activities of the Government of the United
States subject to the requirements of this Article, the Government
of the Republic of the Marshall Islands shall be granted access
to facilities operated by the Government of the United States in
the Republic of the Marshall Islands, to the extent necessary for
this purpose, except to the extent such access would unreasonably
interfere with the exercise of the authority and responsibility of
the Government of the United States under Title Three.
(b) The Government of the United States, in turn, shall be
granted access to the Republic of the Marshall Islands for the
purpose of gathering data necessary to discharge its obligations
under this Article, except to the extent such access would unreason-
ably interfere with the exercise of the authority and responsibility
of the Government of the Republic of the Marshall Islands under
Title One, and to the extent necessary for this purpose shall be
granted access to documents and other information to the same
extent similar access is provided the Government of the Republic
of the Marshall Islands under the Freedom of Information Act,
5 U.S.C. 552.
(c) The Government of the Republic of the Marshall Islands
shall not impede efforts by the Government of the United States
to comply with applicable standards and procedures.
Article VII
General Legal Provisions
Section 171
Except as provided in this Compact, as amended, or its related
agreements, the application of the laws of the United States to
the Trust Territory of the Pacific Islands by virtue of the Trustee-
ship Agreement ceased with respect to the Marshall Islands on
October 21, 1986, the date the Compact went into effect.
Section 172
(a) Every citizen of the Republic of the Marshall Islands who
is not a resident of the United States shall enjoy the rights and
remedies under the laws of the United States enjoyed by any
non-resident alien.
(b) The Government of the Republic of the Marshall Islands
and every citizen of the Republic of the Marshall Islands shall
be considered to be a ‘‘person’’ within the meaning of the Freedom
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of Information Act, 5 U.S.C. 552, and of the judicial review provi-
sions of the Administrative Procedure Act, 5 U.S.C. 701–706, except
that only the Government of the Republic of the Marshall Islands
may seek judicial review under the Administrative Procedure Act
or judicial enforcement under the Freedom of Information Act when
such judicial review or enforcement relates to the activities of
the Government of the United States governed by sections 161
and 162.
Section 173
The Governments of the United States and the Republic of
the Marshall Islands agree to adopt and enforce such measures,
consistent with this Compact, as amended, and its related agree-
ments, as may be necessary to protect the personnel, property,
installations, services, programs and official archives and documents
maintained by the Government of the United States in the Republic
of the Marshall Islands pursuant to this Compact, as amended,
and its related agreements and by the Government of the Republic
of the Marshall Islands in the United States pursuant to this
Compact, Compact, as amended, and its related agreements.
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Republic of the Marshall Islands,
and its agencies and officials, shall be immune from the jurisdic-
tion of the court of the United States, and the Government
of the United States, and its agencies and officials, shall be
immune from the jurisdiction of the courts of the Republic
of the Marshall Islands.
(b) The Government of the United States accepts responsi-
bility for and shall pay:
(1) any unpaid money judgment rendered by the High
Court of the Trust Territory of the Pacific Islands against
the Government of the United States with regard to any
cause of action arising as a result of acts or omissions
of the Government of the Trust Territory of the Pacific
Islands or the Government of the United States prior to
October 21, 1986;
(2) any claim settled by the claimant and the Govern-
ment of the Trust Territory of the Pacific Islands but
not paid as of October 21, 1986; and
(3) settlement of any administrative claim or of any
action before a court of the Trust Territory of the Pacific
Islands or the Government of the United States, arising
as a result of acts or omissions of the Government of
the Trust Territory of the Pacific Islands or the Government
of the United States.
(c) Any claim not referred to in section 174(b) and arising
from an act or omission of the Government of the Trust Terri-
tory of the Pacific Islands or the Government of the United
States prior to the effective date of the Compact shall be adju-
dicated in the same manner as a claim adjudicated according
to section 174(d). In any claim against the Government of
the Trust Territory of the Pacific Islands, the Government
of the United States shall stand in the place of the Government
of the Trust Territory of the Pacific Islands. A judgment on
any claim referred to in section 174(b) or this subsection, not
otherwise satisfied by the Government of the United States,
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may be presented for certification to the United States Court
of Appeals for the Federal Circuit, or its successor courts,
which shall have jurisdiction therefore, notwithstanding the
provisions of 28 U.S.C. 1502, and which court’s decisions shall
be reviewable as provided by the laws of the United States.
The United States Court of Appeals for the Federal Circuit
shall certify such judgment, and order payment thereof, unless
it finds, after a hearing, that such judgment is manifestly
erroneous as to law or fact, or manifestly excessive. In either
of such cases the United States Court of Appeals for the Federal
Circuit shall have jurisdiction to modify such judgment.
(d) The Government of the Republic of the Marshall Islands
shall not be immune from the jurisdiction of the courts of
the United States, and the Government of the United States
shall not be immune from the jurisdiction of the courts of
the Republic of the Marshall Islands in any civil case in which
an exception to foreign state immunity is set forth in the
Foreign Sovereign Immunities Act (28 U.S.C. 1602 et seq.)
or its successor statutes.
Section 175
(a) A separate agreement, which shall come into effect simulta-
neously with this Compact, as amended, and shall have the force
of law, shall govern mutual assistance and cooperation in law
enforcement matters, including the pursuit, capture, imprisonment
and extradition of fugitives from justice and the transfer of pris-
oners, as well as other law enforcement matters. In the United
States, the laws of the United States governing international extra-
dition, including 18 U.S.C. 3184, 3186, and 3188–95, shall be
applicable to the extradition of fugitives under the separate agree-
ment, and the laws of the United States governing the transfer
of prisoners, including 18 U.S.C. 4100–15, shall be applicable to
the transfer of prisoners under the separate agreement; and
(b) A separate agreement, which shall come into effect simulta-
neously with this Compact, as amended, and shall have the force
of law, shall govern requirements relating to labor recruitment
practices, including registration, reporting, suspension or revocation
of authorization to recruit persons for employment in the United
States, and enforcement for violations of such requirements.
Section 176
The Government of the Republic of the Marshall Islands con-
firms that final judgments in civil cases rendered by any court
of the Trust Territory of the Pacific Islands shall continue in full
force and effect, subject to the constitutional power of the courts
of the Republic of the Marshall Islands to grant relief from judg-
ments in appropriate cases.
Section 177
Section 177 of the Compact entered into force with respect
to the Marshall Islands on October 21, 1986 as follows:
‘‘(a) The Government of the United States accepts the
responsibility for compensation owing to citizens of the Marshall
Islands, or the Federated States of Micronesia, (or Palau) for
loss or damage to property and person of the citizens of the
Marshall Islands, or the Federated States of Micronesia,
resulting from the nuclear testing program which the Govern-
ment of the United States conducted in the Northern Marshall
Islands between June 30, 1946, and August 18, 1958.
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‘‘(b) The Government of the United States and the Govern-
ment of the Marshall Islands shall set forth in a separate
agreement provisions for the just and adequate settlement of
all such claims which have arisen in regard to the Marshall
Islands and its citizens and which have not as yet been com-
pensated or which in the future may arise, for the continued
administration by the Government of the United States of
direct radiation related medical surveillance and treatment pro-
grams and radiological monitoring activities and for such addi-
tional programs and activities as may be mutually agreed,
and for the assumption by the Government of the Marshall
Islands of responsibility for enforcement of limitations on the
utilization of affected areas developed in cooperation with the
Government of the United States and for the assistance by
the Government of the United States in the exercise of such
responsibility as may be mutually agreed. This separate agree-
ment shall come into effect simultaneously with this Compact
and shall remain in effect in accordance with its own terms.
‘‘(c) The Government of the United States shall provide
to the Government of the Marshall Islands, on a grant basis,
the amount of $150 million to be paid and distributed in accord-
ance with the separate agreement referred to in this Section,
and shall provide the services and programs set forth in this
separate agreement, the language of which is incorporated into
this Compact.’’.
The Compact, as amended, makes no changes to, and has no effect
upon, Section 177 of the Compact, nor does the Compact, as
amended, change or affect the separate agreement referred to in
Section 177 of the Compact including Articles IX and X of that
separate agreement, and measures taken by the parties thereunder.
Section 178
(a) The Federal agencies of the Government of the United
States that provide services and related programs in the Republic
of the Marshall Islands pursuant to Title Two are authorized to
settle and pay tort claims arising in the Republic of the Marshall
Islands from the activities of such agencies or from the acts or
omissions of the employees of such agencies. Except as provided
in section 178(b), the provisions of 28 U.S.C. 2672 and 31 U.S.C.
1304 shall apply exclusively to such administrative settlements
and payments.
(b) Claims under section 178(a) that cannot be settled under
section 178(a) shall be disposed of exclusively in accordance with
Article II of Title Four. Arbitration awards rendered pursuant to
this subsection shall be paid out of funds under 31 U.S.C. 1304.
(c) The Government of the United States and the Government
of the Republic of the Marshall Islands shall, in the separate
agreement referred to in section 231, provide for:
(1) the administrative settlement of claims referred to in
section 178(a), including designation of local agents in each
State of the Republic of the Marshall Islands; such agents
to be empowered to accept, investigate and settle such claims,
in a timely manner, as provided in such separate agreements;
and
(2) arbitration, referred to in section 178(b), in a timely
manner, at a site convenient to the claimant, in the event
a claim is not otherwise settled pursuant to section 178(a).
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(d) The provisions of section 174(d) shall not apply to claims
covered by this section.
(e) Except as otherwise explicitly provided by law of the United
States, this Compact, as amended, or its related agreements, neither
the Government of the United States, its instrumentalities, nor
any person acting on behalf of the Government of the United
States, shall be named a party in any action based on, or arising
out of, the activity or activities of a recipient of any grant or
other assistance provided by the Government of the United States
(or the activity or activities of the recipient’s agency or any other
person or entity acting on behalf of the recipient).
Section 179
(a) The courts of the Republic of the Marshall Islands shall
not exercise criminal jurisdiction over the Government of the United
States, or its instrumentalities.
(b) The courts of the Republic of the Marshall Islands shall
not exercise criminal jurisdiction over any person if the Government
of the United States provides notification to the Government of
the Republic of the Marshall Islands that such person was acting
on behalf of the Government of the United States, for actions
taken in furtherance of section 221 or 224 of this amended Compact,
or any other provision of law authorizing financial, program, or
service assistance to the Republic of the Marshall Islands.
TITLE TWO
ECONOMIC RELATIONS
Article I
Grant Assistance
Section 211 - Annual Grant Assistance
(a) In order to assist the Government of the Republic of the
Marshall Islands in its efforts to promote the economic advancement
and budgetary self-reliance of its people, and in recognition of
the special relationship that exists between the Republic of the
Marshall Islands and the United States, the Government of the
United States shall provide assistance on a grant basis for a period
of twenty years in the amounts set forth in section 217, commencing
on the effective date of this Compact, as amended. Such grants
shall be used for assistance in education, health care, the environ-
ment, public sector capacity building, and private sector develop-
ment, or for other areas as mutually agreed, with priorities in
the education and health care sectors. Consistent with the medium-
term budget and investment framework described in subsection
(f) of this section, the proposed division of this amount among
the identified areas shall require the concurrence of both the
Government of the United States and the Government of the
Republic of the Marshall Islands, through the Joint Economic
Management and Financial Accountability Committee described in
section 214. The Government of the United States shall disburse
the grant assistance and monitor the use of such grant assistance
in accordance with the provisions of this Article and an Agreement
Concerning Procedures for the Implementation of United States
Economic Assistance Provided in the Compact, as Amended, of
Free Association Between the Government of the United States
of America and the Government of the Republic of the Marshall
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Islands (‘‘Fiscal Procedures Agreement’’) which shall come into effect
simultaneously with this Compact, as amended.
(1) EDUCATION.—United States grant assistance shall be
made available in accordance with the strategic framework
described in subsection (f) of this section to support and improve
the educational system of the Republic of the Marshall Islands
and develop the human, financial, and material resources nec-
essary for the Republic of the Marshall Islands to perform
these services. Emphasis should be placed on advancing a
quality basic education system.
(2) HEALTH.—United States grant assistance shall be made
available in accordance with the strategic framework described
in subsection (f) of this section to support and improve the
delivery of preventive, curative and environmental care and
develop the human, financial, and material resources necessary
for the Republic of the Marshall Islands to perform these serv-
ices.
(3) PRIVATE SECTOR DEVELOPMENT.—United States grant
assistance shall be made available in accordance with the stra-
tegic framework described in subsection (f) of this section to
support the efforts of the Republic of the Marshall Islands
to attract foreign investment and increase indigenous business
activity by vitalizing the commercial environment, ensuring
fair and equitable application of the law, promoting adherence
to core labor standards, maintaining progress toward privatiza-
tion of state-owned and partially state-owned enterprises, and
engaging in other reforms.
(4) CAPACITY
BUILDING
IN
THE
PUBLIC
SECTOR.—United
States grant assistance shall be made available in accordance
with the strategic framework described in subsection (f) of
this section to support the efforts of the Republic of the Mar-
shall Islands to build effective, accountable and transparent
national and local government and other public sector institu-
tions and systems.
(5) ENVIRONMENT.—United States grant assistance shall
be made available in accordance with the strategic framework
described in subsection (f) of this section to increase environ-
mental protection; establish and manage conservation areas;
engage in environmental infrastructure planning, design
construction and operation; and to involve the citizens of the
Republic of the Marshall Islands in the process of conserving
their country’s natural resources.
(b) KWAJALEIN ATOLL.—
(1) Of the total grant assistance made available under
subsection (a) of this section, the amount specified herein shall
be allocated annually from fiscal year 2004 through fiscal year
2023 (and thereafter in accordance with the Agreement between
the Government of the United States and the Government
of the Republic of the Marshall Islands Regarding Military
Use and Operating Rights) to advance the objectives and spe-
cific priorities set forth in subsections (a) and (d) of this section
and the Fiscal Procedures Agreement, to address the special
needs of the community at Ebeye, Kwajalein Atoll and other
Marshallese communities within Kwajalein Atoll. This United
States grant assistance shall be made available, in accordance
with the medium-term budget and investment framework
described in subsection (f) of this section, to support and
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improve the infrastructure and delivery of services and develop
the human and material resources necessary for the Republic
of the Marshall Islands to carry out its responsibility to main-
tain such infrastructure and deliver such services. The amount
of this assistance shall be $3,100,000, with an inflation adjust-
ment as provided in section 218, from fiscal year 2004 through
fiscal year 2013 and the fiscal year 2013 level of funding,
with an inflation adjustment as provided in section 218, will
be increased by $2 million for fiscal year 2014. The fiscal
year 2014 level of funding, with an inflation adjustment as
provided in section 218, will be made available from fiscal
year 2015 through fiscal year 2023 (and thereafter as noted
above).
(2) The Government of the United States shall also provide
to the Government of the Republic of the Marshall Islands,
in conjunction with section 321(a) of this Compact, as amended,
an annual payment from fiscal year 2004 through fiscal year
2023 (and thereafter in accordance with the Agreement between
the Government of the United States and the Government
of the Republic of the Marshall Islands Regarding Military
Use and Operating Rights) of $1.9 million. This grant assistance
will be subject to the Fiscal Procedures Agreement and will
be adjusted for inflation under section 218 and used to address
the special needs of the community at Ebeye, Kwajalein Atoll
and other Marshallese communities within Kwajalein Atoll with
emphasis on the Kwajalein landowners, as described in the
Fiscal Procedures Agreement.
(3) Of the total grant assistance made available under
subsection (a) of this section, and in conjunction with section
321(a) of the Compact, as amended, $200,000, with an inflation
adjustment as provided in section 218, shall be allocated
annually from fiscal year 2004 through fiscal year 2023 (and
thereafter as provided in the Agreement between the Govern-
ment of the United States and the Government of the Republic
of the Marshall Islands Regarding Military Use and Operating
Rights) for a grant to support increased participation of the
Government of the Republic of the Marshall Islands Environ-
mental Protection Authority in the annual U.S. Army Kwajalein
Atoll Environmental Standards Survey and to promote a
greater Government of the Republic of the Marshall Islands
capacity for independent analysis of the Survey’s findings and
conclusions.
(c) HUMANITARIAN ASSISTANCE—REPUBLIC OF THE MARSHALL
ISLANDS PROGRAM.—In recognition of the special development needs
of the Republic of the Marshall Islands, the Government of the
United States shall make available to the Government of the
Republic of the Marshall Islands, on its request and to be deducted
from the grant amount made available under subsection (a) of
this section, a Humanitarian Assistance—Republic of the Marshall
Islands (‘‘HARMI’’) Program with emphasis on health, education,
and infrastructure (including transportation), projects and such
other projects as mutually agreed. The terms and conditions of
the HARMI shall be set forth in the Agreement Regarding the
Military Use and Operating Rights of the Government of the United
States in the Republic of the Marshall Islands Concluded Pursuant
to Sections 321 and 323 of the Compact of Free Association, as
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Amended, which shall come into effect simultaneously with the
amendments to this Compact.
(d) PUBLIC INFRASTRUCTURE.—
(1) Unless otherwise agreed, not less than 30 percent and
not more than 50 percent of U.S. annual grant assistance
provided under this section shall be made available in accord-
ance with a list of specific projects included in the infrastructure
improvement and maintenance plan prepared by the Govern-
ment of the Republic of the Marshall Islands as part of the
strategic framework described in subsection (f) of this section.
(2) INFRASTRUCTURE MAINTENANCE FUND.—Five percent of
the annual public infrastructure grant made available under
paragraph (1) of this subsection shall be set aside, with an
equal contribution from the Government of the Republic of
the Marshall Islands, as a contribution to an Infrastructure
Maintenance Fund. Administration of the Infrastructure
Maintenance Fund shall be governed by the Fiscal Procedures
Agreement.
(e) DISASTER ASSISTANCE EMERGENCY FUND.—Of the total grant
assistance made available under subsection (a) of this section, an
amount of two hundred thousand dollars ($200,000) shall be pro-
vided annually, with an equal contribution from the Government
of the Republic of the Marshall Islands, as a contribution to a
Disaster Assistance Emergency Fund (‘‘DAEF’’). Any funds from
the DAEF may be used only for assistance and rehabilitation
resulting from disasters and emergencies. The funds will be accessed
upon declaration of a State of Emergency by the Government of
the Republic of the Marshall Islands, with the concurrence of the
United States Chief of Mission to the Republic of the Marshall
Islands. Administration of the DAEF shall be governed by the
Fiscal Procedures Agreement.
(f) BUDGET AND INVESTMENT FRAMEWORK.—The Government
of the Republic of the Marshall Islands shall prepare and maintain
an official medium-term budget and investment framework. The
framework shall be strategic in nature, shall be continuously
reviewed and updated through the annual budget process, and
shall make projections on a multi-year rolling basis. Each of the
sectors and areas named in subsections (a), (b), and (d) of this
section, or other sectors and areas as mutually agreed, shall be
accorded specific treatment in the framework. Those portions of
the framework that contemplate the use of United States grant
funds shall require the concurrence of both the Government of
the United States and the Government of the Republic of the
Marshall Islands.
Section 212 - Kwajalein Impact and Use
The Government of the United States shall provide to the
Government of the Republic of the Marshall Islands in conjunction
with section 321(a) of the Compact, as amended, and the agreement
between the Government of the United States and the Government
of the Republic of the Marshall Islands regarding military use
and operating rights, a payment in fiscal year 2004 of $15,000,000,
with no adjustment for inflation. In fiscal year 2005 and through
fiscal year 2013, the annual payment will be the fiscal year 2004
amount ($15,000,000) with an inflation adjustment as provided
under section 218. In fiscal year 2014, the annual payment will
be $18,000,000 (with no adjustment for inflation) or the fiscal year
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2013 amount with an inflation adjustment under section 218, which-
ever is greater. For fiscal year 2015 through fiscal year 2023 (and
thereafter in accordance with the Agreement between the Govern-
ment of the United States and the Government of the Republic
of the Marshall Islands Regarding Military Use and Operating
Rights) the annual payment will be the fiscal year 2014 amount,
with an inflation adjustment as provided under section 218.
Section 213 - Accountability
(a) Regulations and policies normally applicable to United
States financial assistance to its state and local governments, as
set forth in the Fiscal Procedures Agreement, shall apply to each
grant described in section 211, and to grants administered under
section 221 below, except as modified in the separate agreements
referred to in section 231 of this Compact, as amended, or by
U.S. law. As set forth in the Fiscal Procedures Agreement, reason-
able terms and conditions, including annual performance indicators
that are necessary to ensure effective use of United States assist-
ance and reasonable progress toward achieving program objectives
may be attached. In addition, the United States may seek appro-
priate remedies for noncompliance with the terms and conditions
attached to the assistance, or for failure to comply with section
234, including withholding assistance.
(b) The Government of the United States shall, for each fiscal
year of the twenty years during which assistance is to be provided
on a sector grant basis under section 211 (a), grant the Government
of the Republic of the Marshall Islands an amount equal to the
lesser of (i) one half of the reasonable, properly documented cost
incurred during such fiscal year to conduct the annual audit
required under Article VIII (2) of the Fiscal Procedures Agreement
or (ii) $500,000. Such amount will not be adjusted for inflation
under section 218 or otherwise.
Section 214 - Joint Economic Management and Financial Account-
ability Committee
The Governments of the United States and the Republic of
the Marshall Islands shall establish a Joint Economic Management
and Financial Accountability Committee, composed of a U.S. chair,
two other members from the Government of the United States
and two members from the Government of the Republic of the
Marshall Islands. The Joint Economic Management and Financial
Accountability Committee shall meet at least once each year to
review the audits and reports required under this Title and the
Fiscal Procedures Agreement, evaluate the progress made by the
Republic of the Marshall Islands in meeting the objectives identified
in its framework described in subsection (f) of section 211, with
particular focus on those parts of the framework dealing with
the sectors and areas identified in subsection (a) of section 211,
identify problems encountered, and recommend ways to increase
the effectiveness of U.S. assistance made available under this Title.
The establishment and operations of the Joint Economic Manage-
ment and Financial Accountability Committee shall be governed
by the Fiscal Procedures Agreement.
Section 215 - Annual Report
The Government of the Republic of the Marshall Islands shall
report annually to the President of the United States on the use
of United States sector grant assistance and other assistance and
progress in meeting mutually agreed program and economic goals.
The Joint Economic Management and Financial Accountability
Reports.
Applicability.
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Committee shall review and comment on the report and make
appropriate recommendations based thereon.
Section 216 - Trust Fund
(a) The United States shall contribute annually for twenty
years from the effective date of the Compact, as amended, in the
amounts set forth in section 217 into a trust fund established
in accordance with the Agreement Between the Government of
the United States of America and the Government of the Republic
of the Marshall Islands Implementing Section 216 and Section
217 of the Compact, as Amended, Regarding a Trust Fund (‘‘Trust
Fund Agreement’’), which shall come into effect simultaneously
with this Compact, as amended. Upon termination of the annual
grant assistance under section 211 (a), (d) and (e), the earnings
of the fund shall thereafter be used for the purposes described
in section 211 or as otherwise mutually agreed.
(b) The United States contribution into the Trust Fund
described in subsection (a) of this section is conditioned on the
Government of the Republic of the Marshall Islands contributing
to the Trust Fund at least $25,000,000, on the effective date of
the Trust Fund Agreement or on October 1, 2003, whichever is
later, $2,500,000 prior to October 1, 2004, and $2,500,000 prior
to October 1, 2005. Any funds received by the Republic of the
Marshall Islands under section 111(d) of Public Law 99–239
(January 14, 1986), or successor provisions, would be contributed
to the Trust Fund as a Republic of the Marshall Islands’ contribu-
tion.
(c) The terms regarding the investment and management of
funds and use of the income of the Trust Fund shall be governed
by the Trust Fund Agreement. Funds derived from United States
investment shall not be subject to Federal or state taxes in the
United States or any taxes in the Republic of the Marshall Islands.
The Trust Fund Agreement shall also provide for annual reports
to the Government of the United States and to the Government
of the Republic of the Marshall Islands. The Trust Fund Agreement
shall provide for appropriate distributions of trust fund proceeds
to the Republic of the Marshall Islands and for appropriate remedies
for the failure of the Republic of the Marshall Islands to use
income of the Trust Fund for the annual grant purposes set forth
in section 211. These remedies may include the return to the
United States of the present market value of its contributions
to the Trust Fund and the present market value of any undistrib-
uted income on the contributions of the United States. If this
Compact, as amended, is terminated, the provisions of sections
451–453 of the Compact, as amended, and the Trust Fund Agree-
ment shall govern treatment of any U.S. contributions to the Trust
Fund or accrued income thereon.
Section 217 - Annual Grant Funding and Trust Fund Contributions
The funds described in sections 211, 212, 213(b), and 216 shall
be made available as follows:
[In millions of dollars]
Fiscal year
Annual Grants
Section 211
Audit Grant
Section 213(b)
Trust Fund
Section 216 (a&c)
Kwajalein Impact
Section 212
Total
2004 ..................
35.2
.5
7
15.0
57.7
2005 ..................
34.7
.5
7.5
15.0
57.7
2006 ..................
34.2
.5
8
15.0
57.7
2007 ..................
33.7
.5
8.5
15.0
57.7
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[In millions of dollars]
Fiscal year
Annual Grants
Section 211
Audit Grant
Section 213(b)
Trust Fund
Section 216 (a&c)
Kwajalein Impact
Section 212
Total
2008 ..................
33.2
.5
9
15.0
57.7
2009 ..................
32.7
.5
9.5
15.0
57.7
2010 ..................
32.2
.5
10
15.0
57.7
2011 ..................
31.7
.5
10.5
15.0
57.7
2012 ..................
31.2
.5
11
15.0
57.7
2013 ..................
30.7
.5
11.5
15.0
57.7
2014 ..................
32.2
.5
12
18.0
62.7
2015 ..................
31.7
.5
12.5
18.0
62.7
2016 ..................
31.2
.5
13
18.0
62.7
2017 ..................
30.7
.5
13.5
18.0
62.7
2018 ..................
30.2
.5
14
18.0
62.7
2019 ..................
29.7
.5
14.5
18.0
62.7
2020 ..................
29.2
.5
15
18.0
62.7
2021 ..................
28.7
.5
15.5
18.0
62.7
2022 ..................
28.2
.5
16
18.0
62.7
2023 ..................
27.7
.5
16.5
18.0
62.7
Section 218 - Inflation Adjustment
Except as otherwise provided, the amounts stated in this Title
shall be adjusted for each United States Fiscal Year by the percent
that equals two-thirds of the percent change in the United States
Gross Domestic Product Implicit Price Deflator, or 5 percent, which-
ever is less in any one year, using the beginning of Fiscal Year
2004 as a base.
Section 219 - Carry-Over of Unused Funds
If in any year the funds made available by the Government
of the United States for that year pursuant to this Article are
not completely obligated by the Government of the Republic of
the Marshall Islands, the unobligated balances shall remain avail-
able in addition to the funds to be provided in subsequent years.
Article II
Services and Program Assistance
Section 221
(a) SERVICES.—The Government of the United States shall
make available to the Republic of the Marshall Islands, in accord-
ance with and to the extent provided in the Federal Programs
and Services Agreement referred to in Section 231, the services
and related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
(3) the United States Federal Aviation Administration;
(4) the United States Department of Transportation; and
(5) the Department of Homeland Security, and the United
States Agency for International Development, Office of Foreign
Disaster Assistance.
Upon the effective date of this Compact, as amended, the United
States Departments and Agencies named or having responsibility
to provide these services and related programs shall have the
authority to implement the relevant provisions of the Federal Pro-
grams and Services Agreement referred to in section 231.
(b) PROGRAMS.—
(1) Other than the services and programs covered by sub-
section (a) of this section, and to the extent authorized by
the Congress of the United States, the Government of the
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United States shall make available to the Republic of the
Marshall Islands the services and programs that were available
to the Republic of the Marshall Islands on the effective date
of this Compact, as amended, to the extent that such services
and programs continue to be available to State and local govern-
ments of the United States. As set forth in the Fiscal Procedures
Agreement, funds provided under subsection (a) of section 211
shall be considered to be local revenues of the Government
of the Republic of the Marshall Islands when used as the
local share required to obtain Federal programs and services.
(2) Unless provided otherwise by U.S. law, the services
and programs described in paragraph (1) of this subsection
shall be extended in accordance with the terms of the Federal
Programs and Services Agreement.
(c) The Government of the United States shall have and exercise
such authority as is necessary to carry out its responsibilities under
this Title and the Federal Programs and Services Agreement,
including the authority to monitor and administer all service and
program assistance provided by the United States to the Republic
of the Marshall Islands. The Federal Programs and Services Agree-
ment shall also set forth the extent to which services and programs
shall be provided to the Republic of the Marshall Islands.
(d) Except as provided elsewhere in this Compact, as amended,
under any separate agreement entered into under this Compact,
as amended, or otherwise under U.S. law, all Federal domestic
programs extended to or operating in the Republic of the Marshall
Islands shall be subject to all applicable criteria, standards,
reporting requirements, auditing procedures, and other rules and
regulations applicable to such programs and services when oper-
ating in the United States.
(e) The Government of the United States shall make available
to the Republic of the Marshall Islands alternate energy develop-
ment projects, studies, and conservation measures to the extent
provided for the Freely Associated States in the laws of the United
States.
Section 222
The Government of the United States and the Government
of the Republic of the Marshall Islands may agree from time to
time to extend to the Republic of the Marshall Islands additional
United States grant assistance, services and programs, as provided
under the laws of the United States. Unless inconsistent with
such laws, or otherwise specifically precluded by the Government
of the United States at the time such additional grant assistance,
services, or programs are extended, the Federal Programs and
Services Agreement shall apply to any such assistance, services
or programs.
Section 223
The Government of the Republic of the Marshall Islands shall
make available to the Government of the United States at no
cost such land as may be necessary for the operations of the services
and programs provided pursuant to this Article, and such facilities
as are provided by the Government of the Republic of the Marshall
Islands at no cost to the Government of the United States as
of the effective date of this Compact, as amended, or as may
be mutually agreed thereafter.
Section 224
Applicability.
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The Government of the Republic of the Marshall Islands may
request, from the time to time, technical assistance from the Federal
agencies and institutions of the Government of the United States,
which are authorized to grant such technical assistance in accord-
ance with its laws. If technical assistance is granted pursuant
to such a request, the Government of the United States shall
provide the technical assistance in a manner which gives priority
consideration to the Republic of the Marshall Islands over other
recipients not a part of the United States, its territories or posses-
sions, and equivalent consideration to the Republic of the Marshall
Islands with respect to other states in Free Association with the
United States. Such assistance shall be made available on a
reimbursable or non-reimbursable basis to the extent provided by
United States law.
Article III
Administrative Provisions
Section 231
The specific nature, extent and contractual arrangements of
the services and programs provided for in section 221 of this Com-
pact, as amended, as well as the legal status of agencies of the
Government of the United States, their civilian employees and
contractors, and the dependents of such personnel while present
in the Republic of the Marshall Islands, and other arrangements
in connection with the assistance, services, or programs furnished
by the Government of the United States, are set forth in a Federal
Programs and Services Agreement which shall come into effect
simultaneously with this Compact, as amended.
Section 232
The Government of the United States, in consultation with
the Government of the Republic of the Marshall Islands, shall
determine and implement procedures for the periodic audit of all
grants and other assistance made under Article I of this Title
and of all funds expended for the services and programs provided
under Article II of this Title. Further, in accordance with the
Fiscal Procedures Agreement described in subsection (a) of section
211, the Comptroller General of the United States shall have such
powers and authorities as described in sections 103(m) and 110(c)
of Public Law 99–239, 99 Stat. 1777–78, and 99 Stat. 1799 (January
14, 1986).
Section 233
Approval of this Compact, as amended, by the Government
of the United States, in accordance with its constitutional processes,
shall constitute a pledge by the United States that the sums and
amounts specified as grants in section 211 of this Compact, as
amended, shall be appropriated and paid to the Republic of the
Marshall Islands for such period as those provisions of this Com-
pact, as amended, remain in force, provided that the Republic
of the Marshall Islands complies with the terms and conditions
of this Title and related subsidiary agreements.
Section 234
The Government of the Republic of the Marshall Islands pledges
to cooperate with, permit, and assist if reasonably requested, des-
ignated and authorized representatives of the Government of the
United States charged with investigating whether Compact funds,
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or any other assistance authorized under this Compact, as amended,
have, or are being, used for purposes other than those set forth
in this Compact, as amended, or its subsidiary agreements. In
carrying out this investigative authority, such United States
Government representatives may request that the Government of
the Republic of the Marshall Islands subpoena documents and
records and compel testimony in accordance with the laws and
Constitution of the Republic of the Marshall Islands. Such assist-
ance by the Government of the Republic of the Marshall Islands
to the Government of the United States shall not be unreasonably
withheld. The obligation of the Government of the Marshall Islands
to fulfill its pledge herein is a condition to its receiving payment
of such funds or other assistance authorized under this Compact,
as amended. The Government of the United States shall pay any
reasonable costs for extraordinary services executed by the Govern-
ment of the Marshall Islands in carrying out the provisions of
this section.
Article IV
Trade
Section 241
The Republic of the Marshall Islands is not included in the
customs territory of the United States.
Section 242
The President shall proclaim the following tariff treatment
for articles imported from the Republic of the Marshall Islands
which shall apply during the period of effectiveness of this title:
(a) Unless otherwise excluded, articles imported from the
Republic of the Marshall Islands, subject to the limitations
imposed under section 503(b) of title V of the Trade Act of
1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
(b) Only tuna in airtight containers provided for in heading
1604.14.22 of the Harmonized Tariff Schedule of the United
States that is imported from the Republic of the Marshall
Islands and the Federated States of Micronesia during any
calendar year not to exceed 10 percent of apparent United
States consumption of tuna in airtight containers during the
immediately preceding calendar year, as reported by the
National Marine Fisheries Service, shall be exempt from duty;
but the quantity of tuna given duty-free treatment under this
paragraph for any calendar year shall be counted against the
aggregated quantity of tuna in airtight containers that is duti-
able under rate column numbered 1 of such heading 1604.14.22
for that calendar year.
(c) The duty-free treatment provided under subsection (a)
shall not apply to:
(1) watches, clocks, and timing apparatus provided for
in Chapter 91, excluding heading 9113, of the Harmonized
Tariff Schedule of the United States;
(2) buttons (whether finished or not finished) provided
for in items 9606.21.40 and 9606.29.20 of such Schedule;
(3) textile and apparel articles which are subject to
textile agreements; and
(4) footwear, handbags, luggage, flat goods, work
gloves, and leather wearing apparel which were not eligible
President.
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articles for purposes of title V of the Trade Act of 1974
(19 U.S.C. 2461, et seq.) on April 1, 1984.
(d) If the cost or value of materials produced in the customs
territory of the United States is included with respect to an
eligible article which is a product of the Republic of the Mar-
shall Islands, an amount not to exceed 15 percent of the
appraised value of the article at the time it is entered that
is attributable to such United States cost or value may be
applied for duty assessment purposes toward determining the
percentage referred to in section 503(a)(2) of title V of the
Trade Act of 1974.
Section 243
Articles imported from the Republic of the Marshall Islands
which are not exempt from duty under subsections (a), (b), (c),
and (d) of section 242 shall be subject to the rates of duty set
forth in column numbered 1-general of the Harmonized Tariff
Schedule of the United States (HTSUS).
Section 244
(a) All products of the United States imported into the Republic
of the Marshall Islands shall receive treatment no less favorable
than that accorded like products of any foreign country with respect
to customs duties or charges of a similar nature and with respect
to laws and regulations relating to importation, exportation, tax-
ation, sale, distribution, storage or use.
(b) The provisions of subsection (a) shall not apply to advan-
tages accorded by the Republic of the Marshall Islands by virtue
of their full membership in the Pacific Island Countries Trade
Agreement (PICTA), done on August 18, 2001, to those governments
listed in Article 26 of PICTA, as of the date the Compact, as
amended, is signed.
(c) Prior to entering into consultations on, or concluding, a
free trade agreement with governments not listed in Article 26
of PICTA, the Republic of the Marshall Islands shall consult with
the United States regarding whether or how subsection (a) of section
244 shall be applied.
Article V
Finance and Taxation
Section 251
The currency of the United States is the official circulating
legal tender of the Republic of the Marshall Islands. Should the
Government of the Republic of the Marshall Islands act to institute
another currency, the terms of an appropriate currency transitional
period shall be as agreed with the Government of the United
States.
Section 252
The Government of the Republic of the Marshall Islands may,
with respect to United States persons, tax income derived from
sources within its respective jurisdiction, property situated therein,
including transfers of such property by gift or at death, and products
consumed therein, in such manner as the Government of the
Republic of the Marshall Islands deems appropriate. The determina-
tion of the source of any income, or the situs of any property,
shall for purposes of this Compact, as amended, be made according
to the United States Internal Revenue Code.
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Section 253
A citizen of the Republic of the Marshall Islands, domiciled
therein, shall be exempt from estate, gift, and generation-skipping
transfer taxes imposed by the Government of the United States,
provided that such citizen of the Republic of the Marshall Islands
is neither a citizen nor a resident of the United States.
Section 254
(a) In determining any income tax imposed by the Government
of the Republic of the Marshall Islands, the Government of the
Republic of the Marshall Islands shall have authority to impose
tax upon income derived by a resident of the Republic of the
Marshall Islands from sources without the Republic of the Marshall
Islands, in the same manner and to the same extent as the Govern-
ment of the Republic of the Marshall Islands imposes tax upon
income derived from within its own jurisdiction. If the Government
of the Republic of the Marshall Islands exercises such authority
as provided in this subsection, any individual resident of the
Republic of the Marshall Islands who is subject to tax by the
Government of the United States on income which is also taxed
by the Government of the Republic of the Marshall Islands shall
be relieved of liability to the Government of the United States
for the tax which, but for this subsection, would otherwise be
imposed by the Government of the United States on such income.
However, the relief from liability to the United States Government
referred to in the preceding sentence means only relief in the
form of the foreign tax credit (or deduction in lieu thereof) available
with respect to the income taxes of a possession of the United
States, and relief in the form of the exclusion under section 911
of the Internal Revenue Code of 1986. For purposes of this section,
the term ‘‘resident of the Republic of the Marshall Islands’’ shall
be deemed to include any person who was physically present in
the Republic of the Marshall Islands for a period of 183 or more
days during any taxable year.
(b) If the Government of the Republic of the Marshall Islands
subjects income to taxation substantially similar to that which
was imposed by the Trust Territory Code in effect on January
1, 1980, such Government shall be deemed to have exercised the
authority described in section 254(a).
Section 255
For purposes of section 274(h)(3)(A) of the U.S. Internal Rev-
enue Code of 1986, the term ‘‘North American Area’’ shall include
the Republic of the Marshall Islands.
TITLE THREE
SECURITY AND DEFENSE RELATIONS
Article I
Authority and Responsibility
Section 311
(a) The Government of the United States has full authority
and responsibility for security and defense matters in or relating
to the Republic of the Marshall Islands.
(b) This authority and responsibility includes:
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117 STAT. 2821
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(1) the obligation to defend the Republic of the Marshall
Islands and its people from attack or threats thereof as the
United States and its citizens are defended;
(2) the option to foreclose access to or use of the Republic
of the Marshall Islands by military personnel or for the military
purposes of any third country; and
(3) the option to establish and use military areas and
facilities in the Republic of the Marshall Islands, subject to
the terms of the separate agreements referred to in sections
321 and 323.
(c) The Government of the United States confirms that it shall
act in accordance with the principles of international law and
the Charter of the United Nations in the exercise of this authority
and responsibility.
Section 312
Subject to the terms of any agreements negotiated in accordance
with sections 321 and 323, the Government of the United States
may conduct within the lands, waters and airspace of the Republic
of the Marshall Islands the activities and operations necessary
for the exercise of its authority and responsibility under this Title.
Section 313
(a) The Government of the Republic of the Marshall Islands
shall refrain from actions that the Government of the United States
determines, after appropriate consultation with that Government,
to be incompatible with its authority and responsibility for security
and defense matters in or relating to the Republic of the Marshall
Islands.
(b) The consultations referred to in this section shall be con-
ducted expeditiously at senior levels of the two Governments, and
the subsequent determination by the Government of the United
States referred to in this section shall be made only at senior
interagency levels of the Government of the United States.
(c) The Government of the Republic of the Marshall Islands
shall be afforded, on an expeditious basis, an opportunity to raise
its concerns with the United States Secretary of State personally
and the United States Secretary of Defense personally regarding
any determination made in accordance with this section.
Section 314
(a) Unless otherwise agreed, the Government of the United
States shall not, in the Republic of the Marshall Islands:
(1) test by detonation or dispose of any nuclear weapon,
nor test, dispose of, or discharge any toxic chemical or biological
weapon; or
(2) test, dispose of, or discharge any other radioactive,
toxic chemical or biological materials in an amount or manner
that would be hazardous to public health or safety.
(b) Unless otherwise agreed, other than for transit or overflight
purposes or during time of a national emergency declared by the
President of the United States, a state of war declared by the
Congress of the United States or as necessary to defend against
an actual or impending armed attack on the United States, the
Republic of the Marshall Islands or the Federated States of Micro-
nesia, the Government of the United States shall not store in
the Republic of the Marshall Islands or the Federated States of
Micronesia any toxic chemical weapon, nor any radioactive mate-
rials nor any toxic chemical materials intended for weapons use.
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(c) Radioactive, toxic chemical, or biological materials not
intended for weapons use shall not be affected by section 314(b).
(d) No material or substance referred to in this section shall
be stored in the Republic of the Marshall Islands except in an
amount and manner which would not be hazardous to public health
or safety. In determining what shall be an amount or manner
which would be hazardous to public health or safety under this
section, the Government of the United States shall comply with
any applicable mutual agreement, international guidelines accepted
by the Government of the United States, and the laws of the
United States and their implementing regulations.
(e) Any exercise of the exemption authority set forth in section
161(e) shall have no effect on the obligations of the Government
of the United States under this section or on the application of
this subsection.
(f) The provisions of this section shall apply in the areas in
which the Government of the Republic of the Marshall Islands
exercises jurisdiction over the living resources of the seabed, subsoil
or water column adjacent to its coasts.
Section 315
The Government of the United States may invite members
of the armed forces of other countries to use military areas and
facilities in the Republic of the Marshall Islands, in conjunction
with and under the control of United States Armed Forces. Use
by units of the armed forces of other countries of such military
areas and facilities, other than for transit and overflight purposes,
shall be subject to consultation with and, in the case of major
units, approval of the Government of the Republic of the Marshall
Islands.
Section 316
The authority and responsibility of the Government of the
United States under this Title may not be transferred or otherwise
assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by
the Government of the United States of military areas and facilities
in the Republic of the Marshall Islands are set forth in separate
agreements, which shall remain in effect in accordance with the
terms of such agreements.
(b) If, in the exercise of its authority and responsibility under
this Title, the Government of the United States requires the use
of areas within the Republic of the Marshall Islands in addition
to those for which specific arrangements are concluded pursuant
to section 321(a), it may request the Government of the Republic
of the Marshall Islands to satisfy those requirements through leases
or other arrangements. The Government of the Republic of the
Marshall Islands shall sympathetically consider any such request
and shall establish suitable procedures to discuss it with and pro-
vide a prompt response to the Government of the United States.
(c) The Government of the United States recognizes and
respects the scarcity and special importance of land in the Republic
of the Marshall Islands. In making any requests pursuant to section
Applicability.
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321(b), the Government of the United States shall follow the policy
of requesting the minimum area necessary to accomplish the
required security and defense purpose, of requesting only the min-
imum interest in real property necessary to support such purpose,
and of requesting first to satisfy its requirement through public
real property, where available, rather than through private real
property.
Section 322
The Government of the United States shall provide and main-
tain fixed and floating aids to navigation in the Republic of the
Marshall Islands at least to the extent necessary for the exercise
of its authority and responsibility under this Title.
Section 323
The military operating rights of the Government of the United
States and the legal status and contractual arrangements of the
United States Armed Forces, their members, and associated
civilians, while present in the Republic of the Marshall Islands
are set forth in separate agreements, which shall remain in effect
in accordance with the terms of such agreements.
Article III
Defense Treaties and International Security Agreements
Section 331
Subject to the terms of this Compact, as amended, and its
related agreements, the Government of the United States, exclu-
sively, has assumed and enjoys, as to the Republic of the Marshall
Islands, all obligations, responsibilities, rights and benefits of:
(a) Any defense treaty or other international security agree-
ment applied by the Government of the United States as
Administering Authority of the Trust Territory of the Pacific
Islands as of October 20, 1986.
(b) Any defense treaty or other international security agree-
ment to which the Government of the United States is or
may become a party which it determines to be applicable in
the Republic of the Marshall Islands. Such a determination
by the Government of the United States shall be preceded
by appropriate consultation with the Government of the
Republic of the Marshall Islands.
Article IV
Service in Armed Forces of the United States
Section 341
Any person entitled to the privileges set forth in Section 141
(with the exception of any person described in section 141(a)(5)
who is not a citizen of the Republic of the Marshall Islands) shall
be eligible to volunteer for service in the Armed Forces of the
United States, but shall not be subject to involuntary induction
into military service of the United States as long as such person
has resided in the United States for a period of less than one
year, provided that no time shall count towards this one year
while a person admitted to the United States under the Compact,
or the Compact, as amended, is engaged in full-time study in
the United States. Any person described in section 141(a)(5) who
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117 STAT. 2824
PUBLIC LAW 108–188—DEC. 17, 2003
is not a citizen of the Republic of the Marshall Islands shall be
subject to United States laws relating to selective service.
Section 342
The Government of the United States shall have enrolled, at
any one time, at least one qualified student from the Republic
of the Marshall Islands, as may be nominated by the Government
of the Republic of the Marshall Islands, in each of:
(a) The United States Coast Guard Academy pursuant
to 14 U.S.C. 195.
(b) The United States Merchant Marine Academy pursuant
to 46 U.S.C. 1295(b)(6), provided that the provisions of 46
U.S.C. 1295b(b)(6)(C) shall not apply to the enrollment of stu-
dents pursuant to section 342(b) of this Compact, as amended.
Article V
General Provisions
Section 351
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands shall continue to maintain
a Joint Committee empowered to consider disputes arising under
the implementation of this Title and its related agreements.
(b) The membership of the Joint Committee shall comprise
selected senior officials of the two Governments. The senior United
States military commander in the Pacific area shall be the senior
United States member of the Joint Committee. For the meetings
of the Joint Committee, each of the two Governments may designate
additional or alternate representatives as appropriate for the subject
matter under consideration.
(c) Unless otherwise mutually agreed, the Joint Committee
shall meet annually at a time and place to be designated, after
appropriate consultation, by the Government of the United States.
The Joint Committee also shall meet promptly upon request of
either of its members. The Joint Committee shall follow such proce-
dures, including the establishment of functional subcommittees,
as the members may from time to time agree. Upon notification
by the Government of the United States, the Joint Committee
of the United States and the Republic of the Marshall Islands
shall meet promptly in a combined session with the Joint Committee
established and maintained by the Government of the United States
and the Government of the Federated States of Micronesia to con-
sider matters within the jurisdiction of the two Joint Committees.
(d) Unresolved issues in the Joint Committee shall be referred
to the Governments for resolution, and the Government of the
Republic of the Marshall Islands shall be afforded, on an expeditious
basis, an opportunity to raise its concerns with the United States
Secretary of Defense personally regarding any unresolved issue
which threatens its continued association with the Government
of the United States.
Section 352
In the exercise of its authority and responsibility under Title
Three, the Government of the United States shall accord due respect
to the authority and responsibility of the Government of the
Republic of the Marshall Islands under Titles One, Two and Four
and to the responsibility of the Government of the Republic of
the Marshall Islands to assure the well-being of its people.
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Section 353
(a) The Government of the United States shall not include
the Government of the Republic of the Marshall Islands as a named
party to a formal declaration of war, without that Government’s
consent.
(b) Absent such consent, this Compact, as amended, is without
prejudice, on the ground of belligerence or the existence of a state
of war, to any claims for damages which are advanced by the
citizens, nationals or Government of the Republic of the Marshall
Islands, which arise out of armed conflict subsequent to October
21, 1986, and which are:
(1) petitions to the Government of the United States for
redress; or
(2) claims in any manner against the government, citizens,
nationals or entities of any third country.
(c) Petitions under section 353(b)(1) shall be treated as if they
were made by citizens of the United States.
Section 354
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands are jointly committed to
continue their security and defense relations, as set forth in this
Title. Accordingly, it is the intention of the two countries that
the provisions of this Title shall remain binding as long as this
Compact, as amended, remains in effect, and thereafter as mutually
agreed, unless earlier terminated by mutual agreement pursuant
to section 441, or amended pursuant to Article III of Title Four.
If at any time the Government of the United States, or the Govern-
ment of the Republic of the Marshall Islands, acting unilaterally,
terminates this Title, such unilateral termination shall be consid-
ered to be termination of the entire Compact, as amended, in
which case the provisions of section 442 and 452 (in the case
of termination by the Government of the United States) or sections
443 and 453 (in the case of termination by the Government of
the Republic of the Marshall Islands), with the exception of para-
graph (3) of subsection (a) of section 452 or paragraph (3) of sub-
section (a) of section 453, as the case may be, shall apply.
(b) The Government of the United States recognizes, in view
of the special relationship between the Government of the United
States and the Government of the Republic of the Marshall Islands,
and in view of the existence of the separate agreement regarding
mutual security concluded with the Government of the Republic
of the Marshall Islands pursuant to sections 321 and 323, that,
even if this Title should terminate, any attack on the Republic
of the Marshall Islands during the period in which such separate
agreement is in effect, would constitute a threat to the peace
and security of the entire region and a danger to the United
States. In the event of such an attack, the Government of the
United States would take action to meet the danger to the United
States and to the Republic of the Marshall Islands in accordance
with its constitutional processes.
(c) As reflected in Article 21(1)(b) of the Trust Fund Agreement,
the Government of the United States and the Government of the
Republic of the Marshall Islands further recognize, in view of the
special relationship between their countries, that even if this Title
should terminate, the Government of Republic of the Marshall
Islands shall refrain from actions which the Government of the
United States determines, after appropriate consultation with that
Applicability.
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117 STAT. 2826
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Government, to be incompatible with its authority and responsibility
for security and defense matters in or relating to the Republic
of the Marshall Islands or the Federated States of Micronesia.
TITLE FOUR
GENERAL PROVISIONS
Article I
Approval and Effective Date
Section 411
Pursuant to section 432 of the Compact and subject to sub-
section (e) of section 461 of the Compact, as amended, the Compact,
as amended, shall come into effect upon mutual agreement between
the Government of the United States and the Government of the
Republic of the Marshall Islands subsequent to completion of the
following:
(a) Approval by the Government of the Republic of the
Marshall Islands in accordance with its constitutional proc-
esses.
(b) Approval by the Government of the United States in
accordance with its constitutional processes.
Article II
Conference and Dispute Resolution
Section 421
The Government of the United States shall confer promptly
at the request of the Government of the Republic of the Marshall
Islands and that Government shall confer promptly at the request
of the Government of the United States on matters relating to
the provisions of this Compact, as amended, or of its related agree-
ments.
Section 422
In the event the Government of the United States or the
Government of the Republic of the Marshall Islands, after conferring
pursuant to section 421, determines that there is a dispute and
gives written notice thereof, the two Governments shall make a
good faith effort to resolve the dispute between themselves.
Section 423
If a dispute between the Government of the United States
and the Government of the Republic of the Marshall Islands cannot
be resolved within 90 days of written notification in the manner
provided in section 422, either party to the dispute may refer
it to arbitration in accordance with section 424.
Section 424
Should a dispute be referred to arbitration as provided for
in section 423, an Arbitration Board shall be established for the
purpose of hearing the dispute and rendering a decision which
shall be binding upon the two parties to the dispute unless the
two parties mutually agree that the decision shall be advisory.
Arbitration shall occur according to the following terms:
(a) An Arbitration Board shall consist of a Chairman and
two other members, each of whom shall be a citizen of a
party to the dispute. Each of the two Governments that is
Deadline.
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a party to the dispute shall appoint one member to the Arbitra-
tion Board. If either party to the dispute does not fulfill the
appointment requirements of this section within 30 days of
referral of the dispute to arbitration pursuant to section 423,
its member on the Arbitration Board shall be selected from
its own standing list by the other party to the dispute. Each
Government shall maintain a standing list of 10 candidates.
The parties to the dispute shall jointly appoint a Chairman
within 15 days after selection of the other members of the
Arbitration Board. Failing agreement on a Chairman, the
Chairman shall be chosen by lot from the standing lists of
the parties to the dispute within 5 days after such failure.
(b) Unless otherwise provided in this Compact, as amended,
or its related agreements, the Arbitration Board shall have
jurisdiction to hear and render its final determination on all
disputes arising exclusively under Articles I, II, III, IV and
V of Title One, Title Two, Title Four, and their related agree-
ments.
(c) Each member of the Arbitration Board shall have one
vote. Each decision of the Arbitration Board shall be reached
by majority vote.
(d) In determining any legal issue, the Arbitration Board
may have reference to international law and, in such reference,
shall apply as guidelines the provisions set forth in Article
38 of the Statute of the International Court of Justice.
(e) The Arbitration Board shall adopt such rules for its
proceedings as it may deem appropriate and necessary, but
such rules shall not contravene the provisions of this Compact,
as amended. Unless the parties provide otherwise by mutual
agreement, the Arbitration Board shall endeavor to render
its decision within 30 days after the conclusion of arguments.
The Arbitration Board shall make findings of fact and conclu-
sions of law and its members may issue dissenting or individual
opinions. Except as may be otherwise decided by the Arbitration
Board, one-half of all costs of the arbitration shall be borne
by the Government of the United States and the remainder
shall be borne by the Government of the Republic of the Mar-
shall Islands.
Article III
Amendment
Section 431
The provisions of this Compact, as amended, may be further
amended by mutual agreement of the Government of the United
States and the Government of the Republic of the Marshall Islands,
in accordance with their respective constitutional processes.
Article IV
Termination
Section 441
This Compact, as amended, may be terminated by mutual
agreement of the Government of the Republic of the Marshall
Islands and the Government of the United States, in accordance
Rules.
Applicability.
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117 STAT. 2828
PUBLIC LAW 108–188—DEC. 17, 2003
with their respective constitutional processes. Such mutual termi-
nation of this Compact, as amended, shall be without prejudice
to the continued application of section 451 of this Compact, as
amended, and the provisions of the Compact, as amended, set
forth therein.
Section 442
Subject to section 452, this Compact, as amended, may be
terminated by the Government of the United States in accordance
with its constitutional processes. Such termination shall be effective
on the date specified in the notice of termination by the Government
of the United States but not earlier than six months following
delivery of such notice. The time specified in the notice of termi-
nation may be extended. Such termination of this Compact, as
amended, shall be without prejudice to the continued application
of section 452 of this Compact, as amended, and the provisions
of the Compact, as amended, set forth therein.
Section 443
This Compact, as amended, shall be terminated by the Govern-
ment of the Republic of the Marshall Islands, pursuant to its
constitutional processes, subject to section 453 if the people rep-
resented by that Government vote in a plebiscite to terminate
the Compact. The Government of the Republic of the Marshall
Islands shall notify the Government of the United States of its
intention to call such a plebiscite, which shall take place not earlier
than three months after delivery of such notice. The plebiscite
shall be administered by the Government of the Republic of the
Marshall Islands in accordance with its constitutional and legisla-
tive processes, but the Government of the United States may send
its own observers and invite observers from a mutually agreed
party. If a majority of the valid ballots cast in the plebiscite favors
termination, the Government of the Republic of the Marshall
Islands shall, upon certification of the results of the plebiscite,
give notice of termination to the Government of the United States,
such termination to be effective on the date specified in such notice
but not earlier than three months following the date of delivery
of such notice. The time specified in the notice of termination
may be extended.
Article V
Survivability
Section 451
(a) Should termination occur pursuant to section 441, economic
and other assistance by the Government of the United States shall
continue only if and as mutually agreed by the Governments of
the United States and the Republic of the Marshall Islands, and
in accordance with the countries’ respective constitutional processes.
(b) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
(b) and (c) of section 354 of this Compact, as amended, and the
separate agreement entered into consistent with those subsections,
if termination occurs pursuant to section 441 prior to the twentieth
anniversary of the effective date of this Compact, as amended,
the United States shall continue to make contributions to the Trust
Fund described in section 216 of this Compact, as amended.
Notification.
Deadline.
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117 STAT. 2829
PUBLIC LAW 108–188—DEC. 17, 2003
(c) In view of the special relationship of the United States
and the Republic of the Marshall Islands described in subsection
(b) of this section, if termination occurs pursuant to section 441
following the twentieth anniversary of the effective date of this
Compact, as amended, the Republic of the Marshall Islands shall
be entitled to receive proceeds from the Trust Fund described in
section 216 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 452
(a) Should termination occur pursuant to section 442 prior
to the twentieth anniversary of the effective date of this Compact,
as amended, the following provisions of this amended Compact
shall remain in full force and effect until the twentieth anniversary
of the effective date of this Compact, as amended, and thereafter
as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Article One and sections 232 and 234 of Title Two;
(3) Title Three; and
(4) Articles II, III, V and VI of Title Four.
(b) Should termination occur pursuant to section 442 before
the twentieth anniversary of the effective date of this Compact,
as amended:
(1) Except as provided in paragraph (2) of this subsection
and subsection (c) of this section, economic and other assistance
by the United States shall continue only if and as mutually
agreed by the Governments of the United States and the
Republic of the Marshall Islands.
(2) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in sub-
sections (b) and (c) of section 354 of this Compact, as amended,
and the separate agreement regarding mutual security, and
the Trust Fund Agreement, the United States shall continue
to make contributions to the Trust Fund described in section
216 of this Compact, as amended, in the manner described
in the Trust Fund Agreement.
(c) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 442 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Republic of the Marshall Islands shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 216 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 453
(a) Should termination occur pursuant to section 443 prior
to the twentieth anniversary of the effective date of this Compact,
as amended, the following provisions of this Compact, as amended,
shall remain in full force and effect until the twentieth anniversary
of the effective date of this Compact, as amended, and thereafter
as mutually agreed:
(1) Article VI and sections 172, 173, 176 and 177 of Title
One;
(2) Sections 232 and 234 of Title Two;
(3) Title Three; and
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117 STAT. 2830
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(4) Articles II, III, V and VI of Title Four.
(b) Upon receipt of notice of termination pursuant to section
443, the Government of the United States and the Government
of the Republic of the Marshall Islands shall promptly consult
with regard to their future relationship. Except as provided in
subsections (c) and (d) of this section, these consultations shall
determine the level of economic and other assistance, if any, which
the Government of the United States shall provide to the Govern-
ment of the Republic of the Marshall Islands for the period ending
on the twentieth anniversary of the effective date of this Compact,
as amended, and for any period thereafter, if mutually agreed.
(c) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 prior to the
twentieth anniversary of the effective date of this Compact, as
amended, the United States shall continue to make contributions
to the Trust Fund described in section 216 of this Compact, as
amended.
(d) In view of the special relationship of the United States
and the Republic of the Marshall Islands, as reflected in subsections
354(b) and (c) of this Compact, as amended, and the separate
agreement regarding mutual security, and the Trust Fund Agree-
ment, if termination occurs pursuant to section 443 following the
twentieth anniversary of the effective date of this Compact, as
amended, the Republic of the Marshall Islands shall continue to
be eligible to receive proceeds from the Trust Fund described in
section 216 of this Compact, as amended, in the manner described
in those provisions and the Trust Fund Agreement.
Section 454
Notwithstanding any other provision of this Compact, as
amended:
(a) The Government of the United States reaffirms its
continuing interest in promoting the economic advancement
and budgetary self-reliance of the people of the Republic of
the Marshall Islands.
(b) The separate agreements referred to in Article II of
Title Three shall remain in effect in accordance with their
terms.
Article VI
Definition of Terms
Section 461
For the purpose of this Compact, as amended, only, and without
prejudice to the views of the Government of the United States
or the Government of the Republic of the Marshall Islands as
to the nature and extent of the jurisdiction of either of them
under international law, the following terms shall have the following
meanings:
(a) ‘‘Trust Territory of the Pacific Islands’’ means the area
established in the Trusteeship Agreement consisting of the
former administrative districts of Kosrae, Yap, Ponape, the
Marshall Islands and Truk as described in Title One, Trust
Territory Code, section 1, in force on January 1, 1979. This
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117 STAT. 2831
PUBLIC LAW 108–188—DEC. 17, 2003
term does not include the area of Palau or the Northern Mar-
iana Islands.
(b) ‘‘Trusteeship Agreement’’ means the agreement setting
forth the terms of trusteeship for the Trust Territory of the
Pacific Islands, approved by the Security Council of the United
Nations April 2, 1947, and by the United States July 18,
1947, entered into force July 18, 1947, 61 Stat. 3301, T.I.A.S.
1665, 8 U.N.T.S. 189.
(c) ‘‘The Republic of the Marshall Islands’’ and ‘‘the Fed-
erated States of Micronesia’’ are used in a geographic sense
and include the land and water areas to the outer limits of
the territorial sea and the air space above such areas as now
or hereafter recognized by the Government of the United States.
(d) ‘‘Compact’’ means the Compact of Free Association
Between the United States and the Federated States of Micro-
nesia and the Marshall Islands, that was approved by the
United States Congress in section 201 of Public Law 99–239
(Jan. 14, 1986) and went into effect with respect to the Republic
of the Marshall Islands on October 21, 1986.
(e) ‘‘Compact, as amended’’ means the Compact of Free
Association Between the United States and the Republic of
the Marshall Islands, as amended. The effective date of the
Compact, as amended, shall be on a date to be determined
by the President of the United States, and agreed to by the
Government of the Republic of the Marshall Islands, following
formal approval of the Compact, as amended, in accordance
with section 411 of this Compact, as amended.
(f) ‘‘Government of the Republic of the Marshall Islands’’
means the Government established and organized by the Con-
stitution of the Republic of the Marshall Islands including
all the political subdivisions and entities comprising that
Government.
(g) ‘‘Government of the Federated States of Micronesia’’
means the Government established and organized by the Con-
stitution of the Federated States of Micronesia including all
the political subdivisions and entities comprising that Govern-
ment.
(h) The following terms shall be defined consistent with
the 1978 Edition of the Radio Regulations of the International
Telecommunications as follows:
(1) ‘‘Radiocommunication’’ means telecommunication by
means of radio waves.
(2) ‘‘Station’’ means one or more transmitters or
receivers or a combination of transmitters and receivers,
including the accessory equipment, necessary at one loca-
tion for carrying on a radiocommunication service, or the
radio astronomy service.
(3) 
‘‘Broadcasting 
Service’’ 
means 
a
radiocommunication service in which the transmissions are
intended for direct reception by the general public. This
service may include sound transmissions, television trans-
missions or other types of transmission.
(4) ‘‘Broadcasting Station’’ means a station in the
broadcasting service.
(5) ‘‘Assignment (of a radio frequency or radio fre-
quency channel)’’ means an authorization given by an
Effective date.
President.
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117 STAT. 2832
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administration for a radio station to use a radio frequency
or radio frequency channel under specified conditions.
(6) ‘‘Telecommunication’’ means any transmission,
emission or reception of signs, signals, writings, images
and sounds or intelligence of any nature by wire, radio,
optical or other electromagnetic systems.
(i) ‘‘Military Areas and Facilities’’ means those areas and
facilities in the Republic of the Marshall Islands reserved or
acquired by the Government of the Republic of the Marshall
Islands for use by the Government of the United States, as
set forth in the separate agreements referred to in section
321.
(j) ‘‘Tariff Schedules of the United States’’ means the Tariff
Schedules of the United States as amended from time to time
and as promulgated pursuant to United States law and includes
the Tariff Schedules of the United States Annotated (TSUSA),
as amended.
(k) ‘‘Vienna Convention on Diplomatic Relations’’ means
the Vienna Convention on Diplomatic Relations, done April
18, 1961, 23 U.S.T. 3227, T.I.A.S. 7502, 500 U.N.T.S. 95.
Section 462
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands previously have concluded
agreements, which shall remain in effect and shall survive in accord-
ance with their terms, as follows:
(1) Agreement Between the Government of the United
States and the Government of the Marshall Islands for the
Implementation of Section 177 of the Compact of Free Associa-
tion;
(2) Agreement Between the Government of the United
States and the Government of the Marshall Islands by Persons
Displaced as a Result of the United States Nuclear Testing
Program in the Marshall Islands;
(3) Agreement Between the Government of the United
States and the Government of the Marshall Islands Regarding
the Resettlement of Enjebi Island;
(4) Agreement Concluded Pursuant to Section 234 of the
Compact; and
(5) Agreement Between the Government of the United
States and the Government of the Marshall Islands Regarding
Mutual Security Concluded Pursuant to Sections 321 and 323
of the Compact of Free Association.
(b) The Government of the United States and the Government
of the Republic of the Marshall Islands shall conclude prior to
the date of submission of this Compact to the legislatures of the
two countries, the following related agreements which shall come
into effect on the effective date of this Compact, as amended,
and shall survive in accordance with their terms, as follows:
(1) Federal Programs and Services Agreement Between
the Government of the United States of America and the
Government of the Republic of the Marshall Islands Concluded
Pursuant to Article III of Title One, Article II of Title Two
(including Section 222), and Section 231 of the Compact of
Free Association, as Amended, which include:
(i) Postal Services and Related Programs;
(ii) Weather Services and Related Programs;
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117 STAT. 2833
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(iii) Civil Aviation Safety Service and Related Pro-
grams;
(iv) Civil Aviation Economic Services and Related Pro-
grams;
(v) United States Disaster Preparedness and Response
Services and Related Programs; and
(vi) Telecommunications Services and Related Pro-
grams.
(2) Agreement Between the Government of the United
States of America and the Government of the Republic of the
Marshall Islands on Extradition, Mutual Assistance in Law
Enforcement Matters and Penal Sanctions Concluded Pursuant
to Section 175 (a) of the Compact of Free Association, as
Amended;
(3) Agreement Between the Government of the United
States of America and the Government of the Republic of the
Marshall Islands on Labor Recruitment Concluded Pursuant
to Section 175 (b) of the Compact of Free Association, as
Amended;
(4) Agreement Concerning Procedures for the Implementa-
tion of United States Economic Assistance Provided in the
Compact, as Amended, of Free Association Between the Govern-
ment of the United States of America and the Government
of the Republic of the Marshall Islands;
(5) Agreement Between the Government of the United
States of America and the Government of the Republic of the
Marshall Islands Implementing Section 216 and Section 217
of the Compact, as Amended, Regarding a Trust Fund;
(6) Agreement Regarding the Military Use and Operating
Rights of the Government of the United States in the Republic
of the Marshall Islands Concluded Pursuant to Sections 321
and 323 of the Compact of Free Association, as Amended;
and
(7) Status of Forces Agreement Between the Government
of the United States of America and the Government of the
Republic of the Marshall Islands Concluded Pursuant to Section
323 of the Compact of Free Association, as Amended.
Section 463
(a) Except as set forth in subsection (b) of this section, any
reference in this Compact, as amended, to a provision of the United
States Code or the Statutes at Large of the United States constitutes
the incorporation of the language of such provision into this Com-
pact, as amended, as such provision was in force on the effective
date of this Compact, as amended.
(b) Any reference in Article IV and VI of Title One, and Sections
174, 175, 178 and 342 to a provision of the United States Code
or the Statutes at Large of the United States or to the Privacy
Act, the Freedom of Information Act, the Administrative Procedure
Act or the Immigration and Nationality Act constitutes the incorpo-
ration of the language of such provision into this Compact, as
amended, as such provision was in force on the effective date
of this Compact, as amended, or as it may be amended thereafter
on a non-discriminatory basis according to the constitutional proc-
esses of the United States.
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LEGISLATIVE HISTORY—H.J. Res. 63 (S.J. Res. 16):
HOUSE REPORTS: No. 108–262, Pt. 1 (Comm. on International Relations), Pt. 2
(Comm. on Resources), and Pt. 3 (Comm. on the Judiciary).
SENATE REPORTS: No. 108–159 accompanying S.J. Res. 16 (Comm. on Energy
and Natural Resources).
CONGRESSIONAL RECORD, Vol. 149 (2003):
Oct. 28, considered and passed House.
Nov. 6, considered and passed Senate, amended.
Nov. 20, House concurred in Senate amendments.
Article VII
Concluding Provisions
Section 471
Both the Government of the United States and the Government
of the Republic of the Marshall Islands shall take all necessary
steps, of a general or particular character, to ensure, no later
than the entry into force date of this Compact, as amended, the
conformity of its laws, regulations and administrative procedures
with the provisions of this Compact, as amended, or, in the case
of subsection (d) of section 141, as soon as reasonably possible
thereafter.
Section 472
This Compact, as amended, may be accepted, by signature
or otherwise, by the Government of the United States and the
Government of the Republic of the Marshall Islands.
IN WITNESS WHEREOF, the undersigned, duly authorized,
have signed this Compact of Free Association, as amended, which
shall enter into force upon the exchange of diplomatic notes by
which the Government of the United States of America and the
Government of the Republic of the Marshall Islands inform each
other about the fulfillment of their respective requirements for
entry into force.
DONE at Majuro, Republic of the Marshall Islands, in dupli-
cate, this thirtieth (30) day of April, 2003, each text being equally
authentic.
Signed (April 30, 2003)
Signed (April 30, 2003)
For the Government of the
For the Government of the
United States of America:
Republic of the Marshall Islands:
Ambassador Michael J. Senko
His Excellency Banny deBrum
U.S. Ambassador to the
Ambassador Extraordinary and
Republic of the Marshall Islands
Plenipotentiary
Approved December 17, 2003.
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