Text: H.J.Res.63 — 108th Congress (2003-2004)All Information (Except Text)

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Public Law No: 108-188 (12/17/2003)

 
[108th Congress Public Law 188]
[From the U.S. Government Printing Office]


[DOCID: f:publ188.108]

[[Page 2719]]

           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003

[[Page 117 STAT. 2720]]

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. <<NOTE: Dec. 17, 2003 -  [H.J. 
                               Res. 63]>> 

Whereas the United States (in accordance with <<NOTE: 48 USC 1921 
    note.>>  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 Compact 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 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'', 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, therefore, be it

    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, <<NOTE: Compact of Free 
Association Amendments Act of 2003.>> 

[[Page 117 STAT. 2721]]

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) <<NOTE: 48 USC 1901 note.>> 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; 
  INTERPRETATION 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 
           Compact; 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 
           Programs.
    (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 Appropriation.
    (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 Aptitude 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 
           Authority.
    (f) Continuing Programs and Laws.
    (g) College of Micronesia.
    (h) Trust Territory Debts to U.S. Federal Agencies.
    (i) Judicial Training.

[[Page 117 STAT. 2722]]

    (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.

[[Page 117 STAT. 2723]]

    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 COMPACT AND U.S.-RMI COMPACT; 
  INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND 
                U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS

SEC. 101. <<NOTE: 48 USC 1921.>> 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.--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 Government of the 
Republic of the Marshall Islands and set forth in Title II (section 
201(b)) of this joint resolution, is hereby approved, and Congress 
hereby consents to the subsidiary agreements and amended subsidiary 
agreements listed in section 462 of the U.S.-

[[Page 117 STAT. 2724]]

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 Agreements 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 
        Association, 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 Government 
        of the United States of America and the Government of the 
        Republic of the Marshall Islands and set forth in Title II 
        (section 201(b)) of this joint resolution.
            (2) Any reference to the term ``subsidiary 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 
        agreements that the United States may from time to time enter 
        into with either the Government of the Federated States of 
        Micronesia or the Government of the Republic of the Marshall 
        Islands, or with both such governments in accordance with the 
        provisions of the U.S.-FSM 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) <<NOTE: Applicability.>> 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 
                Compact of Free Association referred to in section 
                462(a)(2) of the U.S.-FSM Compact and the Agreement 
                Between the Government of the United States and the 
                Government of the Marshall Islands Regarding Mutual 
                Security Concluded 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;

[[Page 117 STAT. 2725]]

                    (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 Compact and U.S.-RMI Compact.

    (e) Subsidiary Agreements Deemed Bilateral.--For purposes of 
implementation of the U.S.-FSM Compact and the U.S.-RMI Compact and this 
joint resolution, the Agreement Concluded Pursuant to Section 234 of the 
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 agreement 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. <<NOTE: 48 USC 1921a.>> 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 Federated States of Micronesia to 
develop and adequately enforce laws of the Federated States of 
Micronesia and to cooperate with the United States in the enforcement of 
criminal laws of the United States. Funds appropriated pursuant to 
section 105(j) of this title may be used to reimburse State or local 
agencies providing such assistance.

[[Page 117 STAT. 2726]]

    (b) Agreement on Audits.--The Comptroller General (and his duly 
authorized representatives) shall have the authorities necessary to 
carry out his responsibilities under section 232 of the U.S.-FSM Compact 
and the agreement referred to in section 462(b)(4) of the U.S.-FSM 
Compact, including the following authorities:
            (1) General authority of the comptroller general to audit.--
                    (A) The Comptroller General of the United States 
                (and his duly authorized representatives) shall have the 
                authority to audit--
                          (i) all grants, program assistance, and other 
                      assistance provided to the Government of the 
                      Federated States of Micronesia under Articles I 
                      and II of Title Two of the U.S.-FSM Compact; and
                          (ii) any other assistance provided by the 
                      Government of the United States to the Government 
                      of the Federated States of 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 
                General shall have access to such personnel and to such 
                records, documents, working papers, automated data and 
                files, and other information relevant to such review.
            (2) Comptroller general access to records.--
                    (A) In carrying out paragraph (1), the Comptroller 
                General (and his duly authorized representatives) shall 
                have such access to the 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, 
                documents, working papers, automated data and files, or 
                other information relevant to such audits.
                    (B) Such records, documents, working papers, 
                automated 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 representatives 
        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

[[Page 117 STAT. 2727]]

        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 
        Convention on Diplomatic Relations. The privileges, exemptions 
        and immunities accorded under this paragraph are not for the 
        personal 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 regulations 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 
                pursuant 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. <<NOTE: 48 USC 1921b.>> 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 Marshall 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 Marshall 
        Islands an agreement whereby, without prejudice as to any claims 
        which have been or may be asserted by any party as to rightful 
        title and ownership of any lands on Ejit, the Government of the 
        Marshall Islands shall assure that lands on Ejit used as of 
        January 1, 1985, by the 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

[[Page 117 STAT. 2728]]

        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 determination to remain on 
        Ejit, or in locating suitable and acceptable alternative lands 
        for such person's use.
            (3) In the joint resolution of January 14, 1986 (Public Law 
        99-239) Congress provided that 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 
        additional measures to meet the needs of the people of Bikini 
        with their democratically expressed consent and approval.

    (c) Section 177 Agreement.--
            (1) <<NOTE: Notification.>> 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 
        Government of the United States and the Government of the 
        Marshall Islands for the Implementation of section 177 of the 
        Compact (hereafter in this subsection referred to as the 
        ``Section 177 Agreement'') 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 designation of a 
        qualified Fund Manager, all funds in the escrow account shall be 
        transferred to the control of such Fund Manager for management 
        pursuant to the Section 177 Agreement.
            (3) <<NOTE: Notification.>> 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 
        Government 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.

[[Page 117 STAT. 2729]]

            (4) <<NOTE: Notification.>> 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 peoples of 
Bikini, Enewetak, Rongelap, and Utrik, who were affected by the United 
States nuclear weapons testing program in the Marshall 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 Government of the 
        Marshall Islands for the Implementation of Section 177 of the 
        Compact (hereafter in this subsection referred to as the 
        ``Section 177 Agreement'') constitute a full and final 
        settlement of all claims described in Articles X and XI of the 
        Section 177 Agreement, and that any such claims be terminated 
        and barred except insofar as provided for in the Section 177 
        Agreement.
            (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 subsection, the 
        Section 177 Agreement is hereby ratified and approved. It is the 
        explicit understanding and intent of Congress that the 
        jurisdictional limitations set forth in Article XII of such 
        Agreement are enacted solely and exclusively to accomplish the 
        objective of Article X of such 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 Agricultural and Food 
Programs.--
            (1) <<NOTE: President.>> 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.

[[Page 117 STAT. 2730]]

            (2) Agricultural and food programs.--
                    (A) <<NOTE: President.>> In general.--In the joint 
                resolution of January 14, 1986 (Public Law 99-239) 
                Congress provided that notwithstanding any other 
                provision of law, upon the request of the 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 
                technical 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 agricultural products 
                      to Enewetak including operations and maintenance 
                      of the vessel used for such purposes.
                    (B) <<NOTE: President.>> Population changes.--The 
                President shall ensure the assistance provided under 
                these programs reflects the changes in the population 
                since the inception of such programs.
                    (C) Planting and agricultural maintenance program.--
                          (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 
                      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, 
                      $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 additional 
        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

[[Page 117 STAT. 2731]]

        directly affected by fallout from a 1954 United States 
        thermonuclear test and because the Rongelap people remain 
        unconvinced that it is safe to continue to live on Rongelap 
        Island, it is the intent of Congress to take such steps (if any) 
        as may be 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. 
        Accordingly, it is the expectation of the Congress that the 
        Government of the Marshall Islands shall use such portion of the 
        funds specified in Article II, section 1(e) of the subsidiary 
        agreement for the implementation of section 177 of the Compact 
        as are necessary for the purpose of contracting with a qualified 
        scientist 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 Radiation 
        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 adequate data, the report 
        to the President of the United States and the Congress shall so 
        state. If the party reviewing the data concludes that the data 
        are inadequate to support such conclusions as to habitability or 
        that such conclusions as to habitability are not fully supported 
        by the data, the Government of the Marshall Islands 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 habitability 
        of Rongelap Island and return the Rongelap people to their 
        homeland will be taken by the United States in consultation with 
        the Government of the Marshall Islands and, in accordance with 
        its authority under the Constitution of the Marshall Islands, 
        the Rongelap local 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;

[[Page 117 STAT. 2732]]

        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 
        consequences of the United States nuclear testing program, 
        pursuant to the program described in Public Law 95-134 (91 Stat. 
        1159) and Public Law 96-205 (94 Stat. 84) and their descendants 
        (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 construed as 
        prejudicial to the views or policies of the Government of the 
        Marshall Islands as to the persons affected by the consequences 
        of the United States nuclear testing program.
            (2) In the joint resolution of January 14, 1986 (Public Law 
        99-239) Congress provided that at the end of the first year 
        after the effective date of the Compact and at the end of each 
        year thereafter, the providing agency or agencies shall return 
        to the Government of the Marshall Islands any unexpended 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 appropriate 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 subsidiary 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

[[Page 117 STAT. 2733]]

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 Community Trust 
        Fund and the employment of the manager of the Enewetak Fund 
        established pursuant to the Section 177 Agreement as trustee and 
        manager of the Enjebi Community Trust Fund, or, should the 
        manager of the Enewetak Fund not be acceptable to the people of 
        Enjebi, another United States investment manager with 
        substantial experience in the administration 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 conditions on 
        Enjebi and within one year of receiving such a request shall 
        report to the Government of the Marshall Islands when the people 
        of Enjebi may resettle Enjebi under circumstances where the 
        radioactive contamination at Enjebi, including contamination 
        derived from 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 
        available to the people of Enjebi from the Fund such amounts as 
        are necessary for the people of Enjebi to do the following, in 
        accordance with a plan developed by the Enewetak Local 
        Government Council and the people of Enjebi, and concurred with 
        by the Government of the Marshall Islands to assure consistency 
        with the government's overall economic development 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 resolution 
        of January 14, 1986 (Public Law 99-239) Congress provided that 
        in the event that the United States determines that within 25 
        years of January 14, 1986, the people of Enjebi cannot resettle 
        Enjebi without exceeding the radiation standards set forth in 
        paragraph (2) of this subsection, then the fund manager shall be 
        directed by the trust instrument to distribute the Fund to the 
        people of Enjebi for their resettlement at some other location 
        in accordance with a plan, developed by the Enewetak Local 
        Government Council and the

[[Page 117 STAT. 2734]]

        people of Enjebi and concurred with by the Government of the 
        Marshall Islands, to assure consistency with the government'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 otherwise.

    (j) Bikini Atoll Cleanup.--
            (1) Declaration of policy.--In the joint resolution of 
        January 14, 1986 (Public Law 99-239), the Congress determined 
        and declared that it is the policy of the United States, to be 
        supported by the full faith and credit of the United States, 
        that because the United States, through its nuclear testing and 
        other activities, rendered Bikini Atoll unsafe for habitation by 
        the people of Bikini, the United States will fulfill its 
        responsibility for restoring Bikini Atoll to 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 necessary to 
carry out his responsibilities under section 232 of the U.S.-RMI Compact 
and the agreement referred to in section 462(b)(4) of the U.S.-RMI 
Compact, including the following authorities:
            (1) General authority of the comptroller general to audit.--
                    (A) The Comptroller General of the United States 
                (and his duly authorized representatives) shall have the 
                authority to audit--
                          (i) all grants, program assistance, and other 
                      assistance provided to the Government of the 
                      Republic of the Marshall Islands under Articles I 
                      and II of Title Two of the U.S.-RMI Compact; and
                          (ii) any other assistance provided by the 
                      Government of the United States to the Government 
                      of the Republic of the Marshall Islands.

[[Page 117 STAT. 2735]]

                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 
                General shall have access to such personnel and to such 
                records, documents, working papers, automated data and 
                files, and other information relevant to such review.
            (2) Comptroller general access to records.--
                    (A) In carrying out paragraph (1), the Comptroller 
                General (and his duly authorized representatives) shall 
                have such access to the 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, 
                documents, working papers, automated data and files, or 
                other information relevant to such audits.
                    (B) Such records, documents, working papers, 
                automated 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 representatives 
        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 Convention on 
        Diplomatic Relations. The privileges, exemptions and immunities 
        accorded under this paragraph are not for the personal 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 regulations 
        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

[[Page 117 STAT. 2736]]

                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 
                pursuant 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 Comptroller 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 Marshall 
        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 responsibilities 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 
                paragraph (1), the Government of the United States shall 
                initiate procedures under section 313 of the U.S.-RMI 
                Compact 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 
                expeditiously 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 Government 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

[[Page 117 STAT. 2737]]

        this resolution, then such funds and interest shall, unless 
        otherwise 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 concluded.
                    (B) <<NOTE: President.>> 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) <<NOTE: President.>> 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 determine are appropriate.

SEC. 104. <<NOTE: 48 USC 1921c.>> 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 Statement of Intent of 
the Report of The Future Political Status Commission of the Congress of 
Micronesia in July, 1969, that ``our recommendation of a free associated 
state is indissolubly linked to our desire for such a democratic, 
representative, constitutional government'' and notes that such desire 
and intention are reaffirmed 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 governments 
of the parties to the U.S.-FSM Compact and the U.S.-RMI Compact are 
founded upon respect for human rights and fundamental freedoms for all. 
The Secretary of State shall include in the annual reports on the status 
of internationally recognized human rights in foreign countries, which 
are submitted to 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

[[Page 117 STAT. 2738]]

        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 
        associated 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 government 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 Compact contain the security 
        enhancements funded by such assistance.
            (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 information 
        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 Immigration and 
        Nationality Act, as amended, and shall provide such information 
        to the Government of the United States.
            (4) Transition; construction of sections 141(a)(3) and 
        141(a)(4) of the u.s.-fsm compact and u.s.-rmi compact.--The 
        words ``the effective date of this Compact, as amended'' in 
        sections 141(a)(3) and 141(a)(4) of the U.S.-FSM Compact and the 
        U.S.-RMI Compact shall be construed to read, ``on the day prior 
        to the enactment by the United States Congress of the Compact of 
        Free Association Amendments Act of 2003.''.

    (c) Nonalienation of Lands.--Congress endorses and encourages 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 Constitutions 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

[[Page 117 STAT. 2739]]

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 Compact 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 reauthorizing 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 
                Mariana 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 Compact, or section 141 of the Palau Compact 
                who, as of a date referenced in the most recently 
                published enumeration 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) <<NOTE: Grants.>> 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 jurisdictions 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 jurisdictions of qualified nonimmigrants 
        from the Republic of the Marshall Islands, the Federated States 
        of Micronesia, or the Republic of Palau. The grants shall be--
                    (A) awarded and administered by the Department of 
                the Interior, Office of Insular Affairs, or any 
                successor thereto, in accordance with regulations, 
                policies and procedures 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 
        conduct periodic enumerations of qualified nonimmigrants in each 
        affected jurisdiction. The enumerations--
                    (A) shall be conducted at such intervals as the 
                Secretary 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

[[Page 117 STAT. 2740]]

                    (C) after fiscal year 2003, shall be funded by the 
                Secretary of the Interior by deducting such sums as are 
                necessary, 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 
        allocate 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 
        jurisdiction 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) <<NOTE: Deadline.>> 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.

[[Page 117 STAT. 2741]]

        The Secretary of the Interior, upon receipt of any such 
        comments, 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 
                autonomous agencies or instrumentalities), respectively, 
                to any department, agency, independent agency, office, 
                or instrumentality of the United States.
                    (B) Terms and conditions.--
                          
                      (i) <<NOTE: Deadline. Reports.>> 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 Secretary of the 
                      Interior, the Governor of Guam and the Governor of 
                      the Commonwealth of the Northern Mariana 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) <<NOTE: President.>> Congressional 
                      notification.--The President shall notify Congress 
                      of his intent to exercise the authority granted in 
                      subparagraph (A).
                          (iii) <<NOTE: Effective date.>> 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 Commonwealth of the 
                      Northern Mariana Islands. In exercising his 
                      authority under this section and in determining

[[Page 117 STAT. 2742]]

                      whether to give final approval to a request, the 
                      President 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 responsible 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 improvements and 
maintenance in accordance with section 211(d).
    (h) Reports and Reviews.--
            (1) <<NOTE: Deadline.>> Report by the president.--Not later 
        than the end of the first full calendar year following enactment 
        of this resolution, 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-
                sufficient 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

[[Page 117 STAT. 2743]]

                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 
                effectiveness of United States assistance and to meet 
                overall economic performance objectives, including, if 
                appropriate, recommendations 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 
        fifteenth 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. <<NOTE: President.>> 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) <<NOTE: Deadline.>> 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 paragraphs (1) (A) through (E) above, 
        and on the effectiveness of administrative oversight by the 
        United States.

    (i) <<NOTE: Effective date.>> 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 Federated 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 admission, stay 
and employment privileges provided under this section shall not become 
effective until 90 days after the date of transmission 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 Relations, and the Committee on the 
Judiciary of the House of Representatives''.

    (j) Inflation Adjustment.--As of Fiscal Year 2015, if the United 
States Gross Domestic Product Implicit Price Deflator average 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

[[Page 117 STAT. 2744]]

Department of Interior), then section 217 of the U.S.-FSM Compact, 
paragraph 5 of Article II of the U.S.-FSM Fiscal Procedures Agreement, 
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 Services 
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. <<NOTE: 48 USC 1921d.>> SUPPLEMENTAL PROVISIONS.

    (a) Domestic Program Requirements.--Except as may otherwise be 
provided in this joint resolution, all United States Federal programs 
and services extended to or operated in the Federated States of 
Micronesia or the Republic of the Marshall Islands are and shall remain 
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 appropriations 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.

[[Page 117 STAT. 2745]]

            (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 Micronesia and the 
        Republic of the Marshall Islands.
            (5) United States Government employees in either the 
        Federated 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) <<NOTE: Establishment.>> Interagency group on freely 
        associated states' affairs.--
                    (A) <<NOTE: President.>> In general.--The President 
                is hereby authorized to appoint an Interagency Group on 
                Freely Associated States' Affairs to provide policy 
                guidance and recommendations on implementation of the 
                U.S.-FSM Compact and the U.S.-RMI Compact to Federal 
                departments and agencies.
                    (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 
                      provided for in section 213 of the U.S.-FSM 
                      Compact and Article III of the U.S.-FSM Fiscal 
                      Procedures Agreement referred to in section 
                      462(b)(4) of the U.S.-FSM Compact shall be United 
                      States Government officers or employees.
                          (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 
                      Development 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 particular 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)

[[Page 117 STAT. 2746]]

                      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 
                      Development 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 particular 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 Congress 
        that the Secretary of State and the Secretary of the Interior 
        shall ensure that there are personnel resources committed 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 designated by the Government of the 
        United States shall be United States Government officers or 
        employees. The United States voting members (United States chair 
        plus two or more members) of the Trust Fund Committee appointed 
        by the Government of the United States pursuant to Article 7 of 
        the Trust Fund Agreement implementing section 216 of the U.S.-
        RMI Compact and referred to in section 462(b)(5) of the U.S.-RMI 
        Compact and any 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 
        Department 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,

[[Page 117 STAT. 2747]]

        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 
        obligations; termination of the Trust Territory Government and 
        termination of the High Court; health and education as a result 
        of exceptional circumstances; ex gratia contributions for the 
        populations of Bikini, Enewetak, Rongelap, and Utrik; and 
        technical assistance and training in financial management, 
        program 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 Compact or the U.S.-RMI Compact 
which remain effective after the termination of the U.S.-FSM Compact or 
U.S.-RMI Compact by the act of any party thereto and which are affected 
in any manner by provisions of this title shall remain subject to such 
provisions.
    (e) Noncompliance Sanctions; Actions 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 Federated 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. Congress 
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.--

[[Page 117 STAT. 2748]]

            (1) Federated states of micronesia and republic of the 
        marshall islands.--In addition to the programs and services set 
        forth in section 221 of the Compact, and pursuant to section 222 
        of the 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, Federal 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 
                      paragraph reads as follows: ``the Department of 
                      Homeland Security, United States Federal Emergency 
                      Management 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 Security, Federal Emergency 
                      Management Agency to facilitate the activities of 
                      the Federal Emergency Management Agency in 
                      accordance with and to the extent provided in the 
                      Federal Programs and Services Agreement.''.
                          (iii) <<NOTE: Reports. Deadline.>> 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 
                      disaster assistance and shall report to the 
                      appropriate committees of Congress no later than 
                      June 30, 2004, on the outcome of such 
                      negotiations, including recommendations 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. <<NOTE: Applicability.>> 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:

[[Page 117 STAT. 2749]]

                          ``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 
                      declaration. 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 Development shall jointly (a) assess 
                      the damage caused by the emergency or disaster and 
                      (b) prepare a reconstruction 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 Disaster 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 appropriations 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 Education 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

[[Page 117 STAT. 2750]]

                                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 
                                Education Act of 1965 (20 U.S.C. 1070a 
                                et seq.) to the extent that such grants 
                                continue to be available 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 
                      appropriated 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 
                      Micronesia 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 Micronesia, 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 Secretary of Education, the Secretary of 
                      Labor, the Secretary of Health and Human Services, 
                      and the Secretary 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 section 462(b)(4) of the 
                      U.S.-RMI Compact. <<NOTE: Deadline.>> The 
                      agreement between the Secretary of Education, the 
                      Secretary of Labor, the Secretary of Health and 
                      Human Services,

[[Page 117 STAT. 2751]]

                      and the Secretary of the Interior shall provide 
                      for the transfer, not later than 60 days after the 
                      appropriations 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 Secretary 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 
                      Governments 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 Secretary 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 Secretary of Health and Human 
                      Services, and the Secretary 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 provisions 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

[[Page 117 STAT. 2752]]

                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 settlement 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 provides any service or 
        carries out any other function pursuant to or in furtherance of 
        any provisions of the U.S.-FSM Compact or the U.S.-RMI Compact 
        or this joint resolution, except for provisions of Title Three 
        of the Compact and of the subsidiary agreements related to such 
        Title, in such area to which such Agreement formerly applied.
            (3) PCB cleanup.--The programs and services of the 
        Environmental Protection Agency regarding PCBs shall, to the 
        extent applicable, as appropriate, and in accordance with 
        applicable law, be construed to be made available to such 
        islands 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 
        accordance 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.

[[Page 117 STAT. 2753]]

    (j) Technical Assistance.--Technical assistance may be provided 
pursuant to section 224 of the U.S.-FSM Compact or the U.S.-RMI Compact 
by Federal agencies and institutions of the Government of the United 
States to the extent such assistance may be provided to States, 
territories, or units of local government. Such assistance by the Forest 
Service, the Natural Resources Conservation Service, the 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 pursuant 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 Program 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 jurisdictions, such sums as may be 
necessary for purposes of establishing or continuing programs for the 
control and prevention of communicable 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 Government 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 Micronesia or 
the Republic of the Marshall Islands shall be liable for user fees, if 
any, for services provided in the Federated States of Micronesia or the 
Republic of the Marshall Islands by the Government of the United States 
to the same extent as any person in the United States would be liable 
for fees, if any, for such services in the United States.

[[Page 117 STAT. 2754]]

    (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 
agreements relevant to the judgment. In determining the consistency of a 
judgment with an international agreement, due regard shall be given to 
assurances made by the Executive Branch to 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 Agreement 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 purpose of facilitating or expediting the 
                establishment of the trust fund pursuant to the 
                applicable Trust Fund Agreement.
            (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 assistance 
        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 operating 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 established pursuant 
        to a Trust Fund Agreement.

[[Page 117 STAT. 2755]]

SEC. 106. <<NOTE: 48 USC 1921e.>> CONSTRUCTION CONTRACT ASSISTANCE.

    (a) Assistance to U.S. Firms.--In order to assist the Governments of 
the Federated States of Micronesia and of the Republic of the Marshall 
Islands through private 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 maintenance 
        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. <<NOTE: Applicability. 48 USC 1921f.>> PROHIBITION.

    All laws governing conflicts of interest and post-employment of 
Federal employees shall apply to the implementation of this Act.

SEC. 108. <<NOTE: 48 USC 1921g.>> 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 Administration, Economic Development Administration, the Rural 
Utilities

[[Page 117 STAT. 2756]]

Services (formerly Rural Electrification Administration); the programs 
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 
        appropriation 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 
        resolution not have been appropriated, such amount not yet 
        appropriated 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. <<NOTE: 48 USC 1921h.>> 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 paragraphs (1) and (3) 
through (5) of section 221(a) of the U.S.-RMI Compact, such sums as are 
necessary to carry out the purposes

[[Page 117 STAT. 2757]]

of sections 221(a) of the U.S.-FSM Compact and the U.S.-RMI Compact, to 
remain available until expended.

SEC. 110. <<NOTE: 5 USC 3101 note.>> 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.

    Section 605 of Public Law 107-67 (the Treasury and General 
Government Appropriations Act, 2002) <<NOTE: 5 USC 3101 note.>> 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 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) <<NOTE: 48 USC 1921 note.>> 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 Federated 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 fundamental 
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 International 
Trusteeship System of the United Nations Charter, and in particular 
Article 76 of the Charter; and that pursuant to Article 76 of the 
Charter, the people of the Federated States of Micronesia

[[Page 117 STAT. 2758]]

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 circumstances; and
    Recognizing that the Compact reflected their common desire to 
terminate the Trusteeship and establish a government-to-government 
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 Micronesia 
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-government 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 Compact, as amended.

[[Page 117 STAT. 2759]]

    (b) The foreign affairs capacity of the Government of the Federated 
States of Micronesia includes:
            (1) the conduct of foreign affairs relating to law of the 
        sea and marine resources matters, including the harvesting, 
        conservation, exploration or exploitation 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 specially benefiting its individual citizens.

    (c) The Government of the United States recognizes that the 
Government of the Federated States of Micronesia has the capacity to 
enter into, in its own name and right, treaties and other international 
agreements with governments and regional and international 
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 membership or 
other participation in regional or international organizations as may be 
mutually agreed.
Section 123
    (a) In recognition of the authority and responsibility of the 
Government of the United States under Title Three, the Government of the 
Federated States of Micronesia shall consult, in the conduct of its 
foreign affairs, with the Government of the United States.
    (b) In recognition of the foreign affairs capacity of the Government 
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

[[Page 117 STAT. 2760]]

    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 assistance 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 Administering 
Authority which resulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other international agreement to 
the Trust Territory of the Pacific Islands on November 2, 1986, are, as 
of that date, no longer assumed and enjoyed by the 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 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 Federated States of Micronesia shall permit 
the Government of the United States to operate telecommunications 
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 Micronesia, 
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,

[[Page 117 STAT. 2761]]

        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 
        paragraphs (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 Government of the United States is satisfied that such 
        naturalized citizen meets the requirement of subsection (b) of 
        section 104 of Public Law 99-239 as it was in effect on the day 
        prior to the effective date of this Compact, as amended;
            (4) a naturalized citizen of the Federated States of 
        Micronesia who was an actual resident there for not less than 
        five years after attaining such 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 Government of 
        the Federated States of Micronesia to the Government of the 
        United States no later than the effective date of the Compact, 
        as amended, in form and content acceptable to the Government of 
        the United States, provided, that the Government of the United 
        States is satisfied that such naturalized 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 Compact, as 
amended. <<NOTE: Applicability.>> 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 commenced. 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

[[Page 117 STAT. 2762]]

to the United States under the Compact or the Compact, as amended.
    (d) A person admitted to the United States under the Compact, or the 
Compact, as amended, shall be considered to have the permission of the 
Government of the United States to accept employment in the United 
States. An 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 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. 
        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 
        certificate issued to a naturalized citizen by the Government of 
        the Federated States of Micronesia stating that the citizen has 
        complied with the actual residence requirement of section 
        141(a)(3) or (4);
            (4) the term ``nonimmigrant'' means an alien who is not an 
        ``immigrant'' as defined in section 101(a)(15) of such Act, 8 
        U.S.C. 1101(a)(15); and
            (5) the term ``immediate relative'' means a spouse, or 
        unmarried son or unmarried daughter less than 21 years of age.

    (f) <<NOTE: Applicability.>> 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

[[Page 117 STAT. 2763]]

        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 Government of the Federated 
States of Micronesia to deny entry to or deport any such citizen or 
national as an undesirable alien. Any determination of inadmissibility 
or deportability shall be based on reasonable statutory grounds and 
shall be subject to appropriate administrative and judicial review 
within the Federated States of 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

[[Page 117 STAT. 2764]]

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 Micronesia 
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 Micronesia, 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 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 Federated States of Micronesia shall be considered to 
be a foreign country.
    (b) <<NOTE: Certification.>> 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 Micronesia 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 maintain a publicly available list of 
the persons so certified.

[[Page 117 STAT. 2765]]

                               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 Federated States of 
Micronesia. In order to carry out this policy, the Government of the 
United States and the Government of the Federated States of Micronesia 
agree to the following mutual and reciprocal undertakings.
    (a) The Government of the United States:
            (1) shall continue to apply the environmental controls in 
        effect on November 2, 1986 to those of its continuing activities 
        subject to section 161(a)(2), 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 Statement 
        under section 161(a)(2), with standards substantively similar to 
        those required by the following laws of the United States, 
        taking into account the particular environment of the Federated 
        States of Micronesia: the Endangered Species Act of 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 Government of the Federated States of 
        Micronesia; and
            (4) <<NOTE: Procedures.>> 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) <<NOTE: Procedures.>> 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 
undertakings of the Government of the United States under this Article, 
the Federated States of Micronesia, taking into account its particular 
environment, shall continue to develop and implement standards for 
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 Micronesia, 
substantively equivalent to activities conducted there by the

[[Page 117 STAT. 2766]]

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 Federated States of Micronesia.
    (d) <<NOTE: Applicability.>> 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 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 Micronesia.
    (f) <<NOTE: Applicability.>> 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 
        appropriate civil relief other than punitive damages against the 
        Government of the United States or, where required by law, its 
        officers in their official capacity; no criminal actions may 
        arise under this section.
            (b) Actions brought pursuant to this section may be 
        initiated only by the Government of the Federated States of 
        Micronesia.
            (c) Administrative agency actions arising under section 161 
        shall be reviewed pursuant to the standard of judicial review 
        set forth in 5 U.S.C. 706.

[[Page 117 STAT. 2767]]

            (d) The United States District Court for the District of 
        Hawaii and the United States District Court for the District of 
        Columbia shall have jurisdiction to issue all necessary 
        processes, and the 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, 
        respectively, or in the United States Supreme Court as provided 
        by the laws of the United States.
            (e) The judicial remedy provided for in this 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 interfere with the exercise of the 
authority and responsibility of the Government of the United States 
under Title Three.
    (b) The Government of the United States, in turn, shall be granted 
access to the Federated States of Micronesia for the purpose of 
gathering data necessary to discharge its obligations under this 
Article, except to the extent such access would unreasonably interfere 
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 Trusteeship 
Agreement ceased with respect to the Federated States of Micronesia on 
November 3, 1986, the date the Compact went into effect.
Section 172

[[Page 117 STAT. 2768]]

    (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 provisions 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 
        jurisdiction of the court of the United States, and the 
        Government of the United States, and its agencies and officials, 
        shall be immune from the jurisdiction of the courts of the 
        Federated States of Micronesia.
            (b) The Government of the United States accepts 
        responsibility for and shall pay:
                    (1) any unpaid money judgment rendered by the High 
                Court of the Trust Territory of the Pacific Islands 
                against the Government of the United States with regard 
                to any cause of action arising as a result of acts or 
                omissions of the Government of the Trust Territory of 
                the Pacific Islands or the Government of the United 
                States prior to November 3, 1986;
                    (2) any claim settled by the claimant and the 
                Government of the Trust Territory of the 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 Territory 
        of the Pacific Islands or the Government of the United

[[Page 117 STAT. 2769]]

        States prior to the effective date of the Compact shall be 
        adjudicated in the same manner as a claim adjudicated according 
        to section 174(d). In any claim against the 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 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern mutual assistance and cooperation in law 
enforcement matters, including the pursuit, capture, imprisonment and 
extradition of fugitives from justice and the transfer of prisoners, as 
well as other law enforcement matters. <<NOTE: Applicability.>> In the 
United States, the laws of the United States governing international 
extradition, including 18 U.S.C. 3184, 3186 and 3188-95, shall be 
applicable to the extradition of fugitives under the separate agreement, 
and the laws of the United States governing the transfer of prisoners, 
including 18 U.S.C. 4100-15, shall be applicable to the transfer of 
prisoners under the separate agreement; and

    (b) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern requirements 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:

[[Page 117 STAT. 2770]]

            ``(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 Government 
        of the United States conducted in the Northern Marshall Islands 
        between June 30, 1946, and August 18, 1958.
            ``(b) The Government of the United States and the Government 
        of the Marshall Islands shall set forth in a separate agreement 
        provisions for the just and adequate settlement of all such 
        claims which have arisen in regard to the Marshall Islands and 
        its citizens and which have not as yet been compensated 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 programs and radiological 
        monitoring activities and for such additional 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 agreement shall come into effect 
        simultaneously with this Compact and shall remain in effect in 
        accordance with its own terms.
            ``(c) The Government of the United States shall provide to 
        the Government of the Marshall Islands, on a grant basis, the 
        amount of $150 million to be paid and distributed in accordance 
        with the separate agreement referred to in this Section, and 
        shall 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 the services and related programs in the Federated 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 agreement referred 
to in section 231, provide for:

[[Page 117 STAT. 2771]]

            (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 
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 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 infrastructure, or for other sectors as 
mutually agreed, with priorities in the education and health care 
sectors. For each year such sector grant assistance is made available, 
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

[[Page 117 STAT. 2772]]

of Micronesia and shall be subject to the concurrence of the Government 
of the United States. In such case, the Government of the United States 
shall disburse the agreed upon amounts and monitor the use of such 
sector grants in accordance with the provisions of this Article and the 
Agreement Concerning Procedures for the Implementation of United States 
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 Agreement'') which shall come into effect simultaneously with 
this Compact, 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 distribution . . . required 
by the terms or special nature of the assistance'' for purposes of 
Article XII, section 1(b) of the Constitution of the Federated States of 
Micronesia.
            (1) Education.--United States grant assistance shall be made 
        available in accordance with the plan described in subsection 
        (c) of this section to support 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 
        preventive, curative and environmental care and develop the 
        human, financial, and material resources necessary for the 
        Government of the Federated States of Micronesia to perform 
        these services.
            (3) Private sector development.--United States grant 
        assistance shall be made available in 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 
        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 
        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 
        protection; 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

[[Page 117 STAT. 2773]]

                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). Administration of the Infrastructure Maintenance 
                Fund shall be governed by the Fiscal Procedures 
                Agreement.

    (b) Humanitarian Assistance.--Federated States of Micronesia 
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 infrastructure (including 
transportation), projects. The terms and conditions of the HAFSM shall 
be set forth in the Agreement Regarding the Military Use and Operating 
Rights of the Government of the United States in the Government of the 
Federated States of Micronesia 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 treatment in the plan. Insofar as grants 
funds are involved, the plan shall be subject to the concurrence of the 
Government of the United States.
    (d) Disaster Assistance Emergency Fund.--An amount of two hundred 
thousand dollars ($200,000) shall be provided annually, with an equal 
contribution from the Government of the Federated States of Micronesia, 
as a 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 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) <<NOTE: Applicability.>> 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 
agreements 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

[[Page 117 STAT. 2774]]

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 <<NOTE: Establishment.>> Committee

    The Governments of the United States and the Federated States of 
Micronesia shall establish a Joint Economic Management Committee, 
composed of a U.S. chair, two other members from the Government of the 
United States and two members from the Government of the Federated 
States of Micronesia. The Joint Economic Management Committee shall meet 
at least once each year to review the audits and reports required under 
this Title, evaluate the progress made by the Federated States of 
Micronesia in meeting the objectives identified in its plan described in 
subsection (c) of section 211, with particular focus on those parts of 
the plan dealing with the sectors identified in 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 Management 
Committee shall be governed by the Fiscal Procedures Agreement.
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 comment on the report and make 
appropriate recommendations based thereon.
Section 215 - Trust Fund
    (a) The United States shall contribute annually for twenty years 
from the effective date of this Compact, as amended, in the amounts set 
forth in section 216 into a Trust Fund established in accordance with 
the Agreement Between the Government of the United States of America and 
the Government of the Federated States of Micronesia Implementing 
Section 215 and Section 216 of the Compact, as Amended, Regarding a 
Trust Fund (``Trust Fund Agreement''). Upon termination of the annual 
financial assistance 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

[[Page 117 STAT. 2775]]

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. <<NOTE: Reports.>> 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 appropriate distributions of trust fund 
proceeds to the Federated States of Micronesia and for appropriate 
remedies for the failure of the Federated States of Micronesia to use 
income of the Trust Fund for the annual grant purposes set forth in 
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 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]
----------------------------------------------------------------------------------------------------------------
                                                                         Audit Grant
                     Fiscal year                       Annual Grants   Section 212(b)     Trust Fund      Total
                                                        Section 211    (amount up to)    Section 215
----------------------------------------------------------------------------------------------------------------
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.

[[Page 117 STAT. 2776]]

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 
        benefit 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 Programs 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 governments 
        of the United States. As set forth in the Fiscal Procedures 
        Agreement, funds provided under subsection (a) of section 211 
        will be considered to be local revenues of the Government of the 
        Federated States of Micronesia when used as the 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

[[Page 117 STAT. 2777]]

set forth the extent to which services and programs shall be provided to 
the Federated States of Micronesia.
    (d) Except as provided elsewhere in this Compact, as amended, under 
any separate agreement entered into under this Compact, as amended, or 
otherwise under U.S. law, all Federal domestic programs extended to or 
operating in the Federated States of Micronesia shall be subject to all 
applicable criteria, standards, reporting requirements, 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. <<NOTE: Applicability.>> 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 accordance 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 possessions, and equivalent consideration to the 
Federated States of Micronesia 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

[[Page 117 STAT. 2778]]

    The specific nature, extent and contractual arrangements of the 
services and programs provided for in section 221 of this Compact, as 
amended, as well as the legal status of agencies of the Government of 
the United States, their civilian employees and contractors, and the 
dependents of such personnel while present in the Federated States of 
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 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 
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, designated 
and authorized representatives of the Government of the United States 
charged with investigating whether Compact funds, or any other 
assistance authorized under this Compact, as amended, have, or are 
being, used for purposes other than those set forth in this Compact, as 
amended, or its subsidiary agreements. In carrying out this 
investigative authority, such United States Government representatives 
may request that the Government of the 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 Government of the United States shall not be unreasonably withheld. 
The obligation of the Government of the Federated States of Micronesia 
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.

[[Page 117 STAT. 2779]]

                               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 <<NOTE: President. Applicability.>> 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 
        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 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

[[Page 117 STAT. 2780]]

    (a) All products of the United States imported into the Federated 
States of Micronesia shall receive treatment no less favorable than that 
accorded like products of any foreign country with respect to customs 
duties or charges of a similar nature and with respect to laws and 
regulations relating to importation, exportation, taxation, sale, 
distribution, storage or use.
    (b) The provisions of subsection (a) shall not apply to advantages 
accorded by the Federated States of 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 Federated 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 Federated States 
of Micronesia shall have authority to impose tax upon income derived by 
a resident of the Federated States of Micronesia from sources without 
the Federated States of Micronesia, in the same manner and to the same 
extent as the Government of the Federated States of Micronesia imposes 
tax upon income derived from within its own jurisdiction. If the 
Government of the 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

[[Page 117 STAT. 2781]]

of the United States on income which is also taxed by the Government of 
the Federated States of Micronesia shall be relieved of liability to the 
Government of the United States for the tax which, but for this 
subsection, would 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 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 
        Micronesia 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.

[[Page 117 STAT. 2782]]

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 conducted 
expeditiously at senior levels of the two Governments, and the 
subsequent determination by the Government of the United States referred 
to in this section 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 exercises 
jurisdiction over the living resources of the seabed, subsoil or water 
column adjacent to its coasts.
Section 315

[[Page 117 STAT. 2783]]

    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. <<NOTE: Procedures.>> 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 minimum 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 maintain 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.

[[Page 117 STAT. 2784]]

                               Article III

         Defense Treaties and International Security Agreements

Section 331
    Subject to the terms of this Compact, as amended, and its related 
agreements, the Government of the United States, exclusively, has 
assumed and enjoys, as to the Federated States of Micronesia, all 
obligations, responsibilities, rights and benefits of:
    (a) Any defense treaty or other international security agreement 
applied by the Government of the United States as Administering 
Authority of the Trust Territory of the Pacific Islands as of November 
2, 1986.
    (b) Any defense treaty or other international security agreement to 
which the Government of the United States is or may become a party which 
it determines to be 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 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 
Federated States of Micronesia shall continue to maintain

[[Page 117 STAT. 2785]]

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 procedures, 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 Federated 
States of Micronesia under Titles One, Two and Four and to the 
responsibility of the Government of the Federated States of Micronesia 
to assure the well-being of its people.
Section 353
    (a) The Government of the United States shall not 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 Micronesia, which 
arise out of armed conflict subsequent to November 3, 1986, and which 
are:
            (1) petitions to the Government of the United States for 
        redress; or
            (2) claims in any manner against the 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

[[Page 117 STAT. 2786]]

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 <<NOTE: Applicability.>> at any time the Government of the United 
States, or the Government of the Federated States of Micronesia, acting 
unilaterally, terminates this Title, such unilateral termination shall 
be considered to be termination of the entire Compact, in which case the 
provisions of section 442 and 452 (in the case of termination by the 
Government of the United States) or sections 443 and 453 (in the case of 
termination by the Government of the Federated States of Micronesia), 
with the exception of paragraph (3) of subsection (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 constitutional 
processes.
    (c) As reflected in Article 21(1)(b) of the Trust Fund Agreement, 
the Government of the United States and the Government of the Federated 
States of Micronesia further recognize, in view of the special 
relationship between their countries, that even if this Title should 
terminate, the Government of the Federated States of Micronesia shall 
refrain from actions which 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 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 subsection (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.

[[Page 117 STAT. 2787]]

            (b) Approval by the Government of the United States in 
        accordance with its constitutional processes.

                               Article II

                    Conference and Dispute Resolution

Section 421
    The Government of the United States shall confer promptly at the 
request of the Government of the Federated States of Micronesia and that 
Government shall confer promptly at the request of the Government of the 
United States on matters relating to the provisions of this Compact, as 
amended, or of its related agreements.
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) <<NOTE: Deadlines.>> 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 
        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 
        agreements.
            (c) Each member of the Arbitration Board shall have one 
        vote. Each decision of the Arbitration Board shall be reached by 
        majority vote.

[[Page 117 STAT. 2788]]

            (d) <<NOTE: Applicability.>> 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) <<NOTE: Rules.>> 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. <<NOTE: Deadline.>> Unless the parties 
        provide otherwise by mutual agreement, the Arbitration Board 
        shall endeavor to render its decision within 30 days after the 
        conclusion of arguments. The Arbitration Board shall make 
        findings of fact and conclusions of law and its members may 
        issue dissenting or individual opinions. Except as may be 
        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 termination may be extended. 
Such termination of this Compact, as amended, shall be without prejudice 
to the continued application of section 452 of this Compact, as amended, 
and the provisions of the Compact, as amended, set forth therein.
Section 443
    This Compact, as amended, shall be terminated by the Government of 
the Federated States of Micronesia, pursuant to its constitutional 
processes, subject to section 453 if the people represented by that 
Government vote in a plebiscite to terminate the Compact, as amended, or 
by another process permitted by the FSM constitution and mutually agreed 
between the Governments of the United

[[Page 117 STAT. 2789]]

States and the Federated States of 
Micronesia. <<NOTE: Notification.>> 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 Federated States of Micronesia shall, upon 
certification of the results of the plebiscite or other process, give 
notice of termination to the Government of the United States, such 
termination to be effective on the date specified in such notice but not 
earlier than three months following the date of delivery of 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.

[[Page 117 STAT. 2790]]

    (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 
        Federated States of Micronesia.
            (2) In view of the special relationship of the United States 
        and the Federated States of Micronesia, as reflected in 
        subsections (b) and (c) of section 354 of this Compact, as 
        amended, and the separate 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 Agreement, if termination occurs 
pursuant to section 442 following the twentieth anniversary of the 
effective date of this Compact, as amended, the Federated States of 
Micronesia shall continue to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this Compact, as amended, in the 
manner described in those provisions and the Trust Fund Agreement.
Section 453
    (a) Should termination occur pursuant to section 443 prior to the 
twentieth anniversary of the effective date of this Compact, as amended, 
the following provisions of this Compact, as amended, shall remain in 
full force and effect until the twentieth anniversary of the effective 
date of this Compact, as amended, and thereafter as mutually agreed:
            (1) Article VI and sections 172, 173, 176 and 177 of Title 
        One;
            (2) Sections 232 and 234 of Title Two;
            (3) Title Three; and
            (4) Articles II, III, V and VI of Title Four.

    (b) Upon receipt of notice of termination pursuant to section 443, 
the Government of the United States and the Government of the Federated 
States of Micronesia shall promptly consult with regard to their future 
relationship. Except as provided in subsection (c) and (d) of this 
section, these consultations shall determine the level of economic and 
other assistance, if any, which the Government of the United States 
shall provide to the Government of the 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 Agreement, 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.

[[Page 117 STAT. 2791]]

    (d) In view of the special relationship of the United States and the 
Federated States of Micronesia, as reflected in subsections 354(b) and 
(c) of this Compact, as amended, and the separate agreement regarding 
mutual security, and the Trust Fund Agreement, if termination occurs 
pursuant to section 443 following the twentieth anniversary of the 
effective date of this Compact, as amended, the Federated States of 
Micronesia shall continue to be eligible to receive proceeds from the 
Trust Fund described in section 215 of this Compact, as amended, in the 
manner described in those provisions and the Trust Fund Agreement.
Section 454
    Notwithstanding any other provision of this Compact, as amended:
            (a) The Government of the United States 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 Mariana 
        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 Micronesia 
        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 Federated States of 
        Micronesia on November 3, 1986.

[[Page 117 STAT. 2792]]

            (e) ``Compact, as amended'' means the Compact of Free 
        Association Between the United States and the Federated States 
        of Micronesia, as amended. <<NOTE: Effective 
        date. President.>> 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 
        Constitution of the Federated States of Micronesia including all 
        the political subdivisions and entities comprising that 
        Government.
            (g) ``Government of the Republic of the Marshall Islands'' 
        means the Government established and organized by the 
        Constitution 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 location 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 
                transmissions or other types of transmission.
                    (4) ``Broadcasting Station'' means a station in the 
                broadcasting service.
                    (5) ``Assignment (of a radio frequency or radio 
                frequency channel)'' means an 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 Micronesia 
        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.

[[Page 117 STAT. 2793]]

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 Micronesia 
        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 
                Programs;
                    (iv) Civil Aviation Economic Services and Related 
                Programs;
                    (v) United States Disaster Preparedness and Response 
                Services and Related Programs;
                    (vi) Federal Deposit Insurance Corporation Services 
                and Related Programs; and
                    (vii) Telecommunications Services and Related 
                Programs.
            (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 Implementation 
        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

[[Page 117 STAT. 2794]]

        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 Compact, 
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 Administrative Procedure Act or the 
Immigration and Nationality Act constitutes 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 constitutional 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.


[[Page 117 STAT. 2795]]


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. DingerHis Excellency Jesse B. Marehalau
U.S. Ambassador to the    Ambassador Extraordinary and
Federated States of MicronPlenipotentiary

    (b) <<NOTE: 48 USC 1921 note.>> 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 MARSHALL ISLANDS

    Affirming that their Governments and their relationship as 
Governments are founded upon respect for human rights and fundamental 
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 International 
Trusteeship System of the United Nations Charter, and in particular 
Article 76 of the Charter; and that pursuant to Article 76 of the 
Charter, the people of the 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 circumstances; and
    Recognizing that the Compact reflected their common desire to 
terminate the Trusteeship and establish a government-to-government 
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

[[Page 117 STAT. 2796]]

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-government 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 Government of the United States and the 
Government of the Republic of the Marshall Islands 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 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 Compact, 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 specially 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 international 
agreements with governments and regional and international 
organizations.
    (d) In the conduct of its foreign affairs, the Government of the 
Republic of the Marshall Islands confirms that it shall act

[[Page 117 STAT. 2797]]

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 Government 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 Government 
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 Marshall 
Islands and subject to the consent of the receiving state, the 
Government of the United States shall extend consular assistance on the 
same basis as for citizens of the United States to citizens of the 
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 Administering 
Authority which resulted from the application pursuant to the 
Trusteeship Agreement of any treaty or other international agreement to 
the Trust Territory of the Pacific Islands on 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

[[Page 117 STAT. 2798]]

    (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 telecommunications 
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 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 
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 
        paragraphs (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 Government of the United States is satisfied that such 
        naturalized citizen meets the requirement of subsection (b) of 
        section 104 of Public Law 99-239 as it was in effect on the day 
        prior to the effective date of this Compact, as amended;
            (4) a naturalized citizen of the Republic of the Marshall 
        Islands who was an actual resident there for not less than five 
        years after attaining such naturalization and who satisfied

[[Page 117 STAT. 2799]]

        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 Government 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 Government of the United 
        States is satisfied that such naturalized citizen meets the 
        requirement of subsection (b) of section 104 of Public Law 99-
        239 as it was in effect on the day prior to the effective date 
        of this Compact, as amended; 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 Compact, as 
amended. <<NOTE: Applicability.>> 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 commenced. 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 permission 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.

[[Page 117 STAT. 2800]]

        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 percent 
        of the five-year period of residency required by section 
        141(a)(3) and (4);
            (3) the term ``certificate of actual residence'' means a 
        certificate issued to a naturalized citizen by the Government of 
        the 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) <<NOTE: Applicability.>> 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.

[[Page 117 STAT. 2801]]

    (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 determination 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.

[[Page 117 STAT. 2802]]

                                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 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 maintain a publicly available list of the 
persons so certified.

                               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 Government 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

[[Page 117 STAT. 2803]]

                Standards and Procedures for United States Army 
                Kwajalein Atoll Activities in the Republic of the 
                Marshall Islands, unless and until those Standards or 
                Procedures are modified by mutual agreement of the 
                Governments of the United States and the Republic of the 
                Marshall Islands;
                    (2) <<NOTE: Applicability.>> 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 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 
                Environmental 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 procedures 
        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.

[[Page 117 STAT. 2804]]

            (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 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 Republic of the Marshall Islands 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 Republic of the Marshall 
        Islands.
            (f) <<NOTE: Applicability.>> 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 
        appropriate civil relief other than punitive damages against the 
        Government of the United States or, where required by law, its 
        officers in their official capacity; no criminal actions may 
        arise under this section.
            (b) Actions brought pursuant to this section may be 
        initiated 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 
        processes, 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

[[Page 117 STAT. 2805]]

        States Court of Appeals for the Ninth Circuit or the United 
        States Court of Appeals for the District of Columbia, 
        respectively, or in the United States Supreme Court as provided 
        by the laws of the United States.
            (e) The judicial remedy provided for in this 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 unreasonably 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 Trusteeship 
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

[[Page 117 STAT. 2806]]

of Information Act, 5 U.S.C. 552, and of the judicial review provisions 
of the Administrative Procedure Act, 5 U.S.C. 701-706, except that only 
the Government of the Republic of the Marshall Islands may seek 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 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 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 
        jurisdiction of the court of the United States, and the 
        Government of the United States, and its agencies and officials, 
        shall be immune from the jurisdiction of the courts of the 
        Republic of the Marshall Islands.
            (b) The Government of the United States accepts 
        responsibility for and shall pay:
                    (1) any unpaid money judgment rendered by the High 
                Court of the Trust Territory of the Pacific Islands 
                against the Government of the United States with regard 
                to any cause of 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 
                Government 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 Territory 
        of the Pacific Islands or the Government of the United States 
        prior to the effective date of the Compact shall be adjudicated 
        in the same manner as a claim adjudicated according to section 
        174(d). In any claim against the 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,

[[Page 117 STAT. 2807]]

        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 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern mutual assistance and cooperation in law 
enforcement matters, including the pursuit, capture, imprisonment and 
extradition of fugitives from justice and the transfer of prisoners, as 
well as other law enforcement matters. In the United States, the laws of 
the United States governing international extradition, including 18 
U.S.C. 3184, 3186, and 3188-95, shall be applicable to the extradition 
of fugitives under the separate agreement, and the laws of the United 
States governing the transfer of prisoners, including 18 U.S.C. 4100-15, 
shall be applicable to the transfer of prisoners under the separate 
agreement; and
    (b) A separate agreement, which shall come into effect 
simultaneously with this Compact, as amended, and shall have the force 
of law, shall govern requirements 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 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 
Republic of the Marshall Islands to grant relief from judgments in 
appropriate cases.
Section 177
    Section 177 of the Compact entered into force with respect to the 
Marshall Islands on October 21, 1986 as follows:
            ``(a) The Government of the United States accepts the 
        responsibility for 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 Government 
        of the United States conducted in the Northern Marshall Islands 
        between June 30, 1946, and August 18, 1958.

[[Page 117 STAT. 2808]]

            ``(b) The Government of the United States and the Government 
        of the Marshall Islands shall set forth in a separate agreement 
        provisions for the just and adequate settlement of all such 
        claims which have arisen in regard to the Marshall Islands and 
        its citizens and which have not as yet been compensated 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 programs and radiological 
        monitoring activities and for such additional 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 agreement shall come into effect 
        simultaneously with this Compact and shall remain in effect in 
        accordance with its own terms.
            ``(c) The Government of the United States shall provide to 
        the Government of the Marshall Islands, on a grant basis, the 
        amount of $150 million to be paid and distributed in accordance 
        with the separate agreement referred to in this Section, and 
        shall 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).

[[Page 117 STAT. 2809]]

    (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 environment, public sector capacity 
building, and private sector development, or for other areas as mutually 
agreed, with priorities in the education and health care sectors. 
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

[[Page 117 STAT. 2810]]

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 necessary 
        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 
        services.
            (3) Private sector development.--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 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 privatization 
        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 Marshall Islands 
        to build effective, accountable and transparent national and 
        local government and other public sector institutions 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 
        environmental 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 specific 
        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

[[Page 117 STAT. 2811]]

        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 maintain 
        such infrastructure and deliver such services. The amount of 
        this assistance shall be $3,100,000, with an inflation 
        adjustment as provided in section 218, from fiscal year 2004 
        through fiscal year 2013 and the fiscal year 2013 level of 
        funding, with an inflation 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 Government 
        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 Environmental 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

[[Page 117 STAT. 2812]]

Amended, which shall come into effect simultaneously with the amendments 
to this Compact.
    (d) Public Infrastructure.--
            (1) Unless otherwise agreed, not less than 30 percent and 
        not more than 50 percent of U.S. annual grant assistance 
        provided under this section shall be made available in 
        accordance with a list of specific projects included in the 
        infrastructure improvement and maintenance plan prepared by the 
        Government of the Republic of the Marshall Islands as part of 
        the strategic framework described in subsection (f) of this 
        section.
            (2) Infrastructure maintenance fund.--Five percent of the 
        annual public infrastructure grant made available under 
        paragraph (1) of this subsection shall be set aside, with an 
        equal 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 provided 
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

[[Page 117 STAT. 2813]]

2013 amount with an inflation adjustment under section 218, whichever is 
greater. For fiscal year 2015 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) the annual payment will be 
the fiscal year 2014 amount, with an inflation adjustment as provided 
under section 218.
Section 213 - Accountability
    (a) <<NOTE: Applicability.>> 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, reasonable terms and 
conditions, including annual performance indicators that are necessary 
to ensure effective use of United States assistance and reasonable 
progress toward achieving program objectives may be attached. In 
addition, the United States may seek appropriate remedies for 
noncompliance with the terms and conditions attached to the assistance, 
or for failure to comply with 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 Accountability 
Committee
    The Governments of the United States and the Republic of the 
Marshall Islands shall establish a Joint Economic Management and 
Financial Accountability Committee, 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 Management and Financial 
Accountability Committee shall be governed by the Fiscal Procedures 
Agreement.
Section 215 - Annual Report
    The <<NOTE: Reports.>> 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

[[Page 117 STAT. 2814]]

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' contribution.
    (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 undistributed 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 Agreement 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]
----------------------------------------------------------------------------------------------------------------
                                                                         Trust Fund       Kwajalein
            Fiscal year               Annual Grants     Audit Grant     Section 216     Impact Section    Total
                                       Section 211    Section 213(b)       (a&c)             212
----------------------------------------------------------------------------------------------------------------
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

[[Page 117 STAT. 2815]]

 
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, whichever is 
less in any one year, using the beginning of Fiscal Year 2004 as a base.
Section 219 - Carry-Over of Unused Funds
    If in any year the funds made available by the Government of the 
United States for that year pursuant to this Article are not completely 
obligated by the Government of the Republic of the Marshall Islands, 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 Republic of the Marshall Islands, in accordance with 
and to the extent provided in the Federal Programs and Services 
Agreement referred to in Section 231, the services and related 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 Programs and Services Agreement 
referred to in section 231.
    (b) Programs.--
            (1) Other than the services and programs covered by 
        subsection (a) of this section, and to the extent authorized by 
        the Congress of the United States, the Government of the

[[Page 117 STAT. 2816]]

        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 governments 
        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 Agreement 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 operating in the United States.
    (e) The Government of the United States shall make available to the 
Republic of the Marshall Islands 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 
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. <<NOTE: Applicability.>> 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

[[Page 117 STAT. 2817]]

    The Government of the Republic of the Marshall Islands may request, 
from the time to time, technical assistance from the Federal agencies 
and institutions of the Government of the United States, which are 
authorized to grant such technical assistance in accordance with its 
laws. If technical assistance is 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 possessions, 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 Compact, as 
amended, as well as the legal status of agencies of the Government of 
the United States, their civilian employees and contractors, and the 
dependents of such personnel while present in the 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 Compact, as amended, remain in force, 
provided that the Republic of the Marshall Islands complies with the 
terms and conditions of this Title and related subsidiary agreements.
Section 234
    The Government of the Republic of the Marshall Islands pledges to 
cooperate with, permit, and assist if reasonably requested, designated 
and authorized representatives of the Government of the United States 
charged with investigating whether Compact funds,

[[Page 117 STAT. 2818]]

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 
assistance by the Government of the Republic of the Marshall Islands to 
the Government of the United States shall not be unreasonably withheld. 
The obligation of the Government of the Marshall Islands to fulfill its 
pledge herein is a condition to its 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 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 <<NOTE: President.>> 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 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

[[Page 117 STAT. 2819]]

                articles for purposes of title V of the Trade Act of 
                1974 (19 U.S.C. 2461, et seq.) on April 1, 1984.
            (d) If the cost or value of materials produced in the 
        customs territory of the United States is included with respect 
        to an eligible article which is a product of the Republic of the 
        Marshall Islands, an amount not to exceed 15 percent of the 
        appraised value of the article at the time it is entered that is 
        attributable to such United States cost or value may be 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, taxation, sale, 
distribution, storage or use.
    (b) The provisions of subsection (a) shall not apply to advantages 
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 determination 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.

[[Page 117 STAT. 2820]]

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 Government 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 Revenue 
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:

[[Page 117 STAT. 2821]]

            (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 conducted 
expeditiously at senior levels of the two Governments, and the 
subsequent determination by the Government of the United States referred 
to in this section 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 Micronesia, 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 materials nor any toxic chemical materials intended 
for weapons use.

[[Page 117 STAT. 2822]]

    (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) <<NOTE: Applicability.>> 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 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 Republic of the Marshall 
Islands. In making any requests pursuant to section

[[Page 117 STAT. 2823]]

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 minimum 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 maintain 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, exclusively, 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 
        agreement 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 
        agreement 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

[[Page 117 STAT. 2824]]

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 students 
        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 procedures, 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 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 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.

[[Page 117 STAT. 2825]]

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 <<NOTE: Applicability.>> at any time the 
Government of the United States, or the Government of the Republic of 
the Marshall Islands, acting unilaterally, terminates this Title, such 
unilateral termination shall be considered 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 paragraph (3) of subsection (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 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

[[Page 117 STAT. 2826]]

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 subsection (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 
        processes.
            (b) Approval by the Government of the United States in 
        accordance with its constitutional processes.

                               Article II

                    Conference and Dispute Resolution

Section 421
    The Government of the United States shall confer promptly at the 
request of the Government of the 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 agreements.
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 <<NOTE: Deadline.>> 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

[[Page 117 STAT. 2827]]

        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 
        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 
        agreements.
            (c) Each member of the Arbitration Board shall have one 
        vote. Each decision of the Arbitration Board shall be reached by 
        majority vote.
            (d) <<NOTE: Applicability.>> 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) <<NOTE: Rules.>> The Arbitration Board shall adopt such 
        rules for its proceedings as it may deem appropriate and 
        necessary, but such rules shall not contravene the provisions of 
        this Compact, as amended. Unless the parties provide otherwise 
        by mutual agreement, the Arbitration Board shall endeavor to 
        render its decision within 30 days after the conclusion of 
        arguments. The Arbitration Board shall make findings of fact and 
        conclusions of law and its members may issue dissenting or 
        individual opinions. Except as may be 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 Marshall 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

[[Page 117 STAT. 2828]]

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 termination may be extended. 
Such termination of this Compact, as amended, shall be without prejudice 
to the continued application of section 452 of this Compact, as amended, 
and the provisions of the Compact, as amended, set forth therein.
Section 443
    This Compact, as amended, shall be terminated by the Government of 
the Republic of the Marshall Islands, pursuant to its constitutional 
processes, subject to section 453 if the people represented by that 
Government vote in a plebiscite to terminate the 
Compact. <<NOTE: Notification. Deadline.>> 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 
legislative 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.

[[Page 117 STAT. 2829]]

    (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 
        subsections (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 Agreement, 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

[[Page 117 STAT. 2830]]

            (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 Government 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 Agreement, 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 Agreement, 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

[[Page 117 STAT. 2831]]

        term does not include the area of Palau or the Northern Mariana 
        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 
        Federated 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 Micronesia 
        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. <<NOTE: Effective 
        date. President.>> 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 
        Constitution 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 
        Constitution of the Federated States of Micronesia including all 
        the political subdivisions and entities comprising that 
        Government.
            (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 location 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 
                transmissions or other types of transmission.
                    (4) ``Broadcasting Station'' means a station in the 
                broadcasting service.
                    (5) ``Assignment (of a radio frequency or radio 
                frequency channel)'' means an authorization given by an

[[Page 117 STAT. 2832]]

                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 accordance 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 
        Association;
            (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;

[[Page 117 STAT. 2833]]

                    (iii) Civil Aviation Safety Service and Related 
                Programs;
                    (iv) Civil Aviation Economic Services and Related 
                Programs;
                    (v) United States Disaster Preparedness and Response 
                Services and Related Programs; and
                    (vi) Telecommunications Services and Related 
                Programs.
            (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 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 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 Compact, 
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 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 constitutional processes of the United States.

[[Page 117 STAT. 2834]]

                               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 duplicate, 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. SenkHis Excellency Banny deBrum
U.S. Ambassador to the    Ambassador Extraordinary and
Republic of the Marshall IPlenipotentiary

    Approved December 17, 2003.

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.

                                  <all>