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115th Congress    }                                  {  Rept. 115-1039
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                  {          Part 1

======================================================================



 
 TO APPROVE AN AGREEMENT BETWEEN THE UNITED STATES AND THE REPUBLIC OF 
                     PALAU, AND FOR OTHER PURPOSES

                                _______
                                

               November 20, 2018.--Ordered to be printed

                                _______
                                

Mr. Bishop of Utah, from the Committee on Natural Resources, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 2085]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 2085) to approve an agreement between the United 
States and the Republic of Palau, and for other purposes, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                          Purpose of the Bill

    The purpose of H.R. 2085 is to approve an agreement between 
the United States and the Republic of Palau.

                  Background and Need for Legislation

    The Republic of Palau is a small nation comprised of 340 
islands\1\ in the western Pacific Ocean located approximately 
4,741 miles west of Hawaii,\2\ 550 miles east of the 
Philippines, and 400 miles north of Papua New Guinea.\3\ The 
population of roughly 22,000\4\ lives on just 189 square miles 
of land, with the most populous island being Koror.\5\
---------------------------------------------------------------------------
    \1\Of these islands, only 9 are inhabited. http://www.palaugov.pw/
executive-branch/ministries/finance/budgetandplanning/physical-
features/.
    \2\https://www.distancefromto.net/distance-from-palau-to-hawaii.
    \3\https://www.britannica.com/place/Palau.
    \4\http://www.worldometers.info/world-population/palau-population/.
    \5\http://www.palaugov.pw/executive-branch/ministries/finance/
budgetandplanning/physical-
features/.
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    Palau is a Freely Associated State (FAS), along with the 
Republic of the Marshall Islands and the Federated States of 
Micronesia.\6\ It was originally part of the Trust Territory of 
Pacific Islands administered by the United States under a 
United Nations resolution.\7\ From 1947 until 1951, the United 
States Navy controlled the Trust Territory until it was 
transferred to the Department of the Interior.\8\ By 1986, the 
U.S. dissolved the Trust Territory as the individual island 
nations determined their own political status. By October 1994, 
the result was the creation of three sovereign states in free 
association with the United States, including Palau, as well as 
a U.S. territory, the Commonwealth of the Northern Mariana 
Islands.\9\
---------------------------------------------------------------------------
    \6\https://www.coris.noaa.gov/activities/coral_research_plan/pdfs/
freely_asso_st.pdf.
    \7\https://en.wikipedia.org/wiki/
Trust_Territory_of_the_Pacific_Islands.
    \8\https://www.doi.gov/ocl/hearings/112/USandPalauAgreement_113011.
    \9\https://www.britannica.com/place/Trust-Territory-of-the-Pacific-
Islands.
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    To establish a political relationship with the new nations, 
the U.S. signed a compact of free association with each FAS, 
with varying review and renewal dates.\10\ Each compact has 
been reviewed and enacted into law by Congress.\11\ These 
compacts created a unique relationship between the United 
States and these former trust territories. While the FASs are 
sovereign nations, and its citizens not U.S. citizens,\12\ the 
FASs are eligible for assistance under many domestic U.S. 
programs,\13\ and the countries receive funding from the U.S. 
government in the form of grants and direct funding of trust 
accounts to provide for economic development and long-term 
budgetary self-reliance.\14\ In addition, FAS citizens have the 
right to work and live in the U.S. as nonimmigrant residents 
under the compact terms.\15\ The United States is also 
responsible for the defense of the FASs, but in return receives 
exclusive military use rights in these countries. According to 
the Department of Defense, the compacts have ``enabled it to 
maintain critical access in the Asia-Pacific region.''\16\
---------------------------------------------------------------------------
    \10\https://en.wikipedia.org/wiki/Compact_of_Free_Association.
    \11\Public Law 99-239; Public Law 99-658; Public Law 108-188.
    \12\https://www.uscis.gov/sites/default/files/USCIS/Verification/I-
9%20Central/FactSheets/
FactSheet-Status_of_Citizens_of_Palau.pdf.
    \13\For example, https://www2.ed.gov/about/offices/list/osers/rsa/
wioa/state-plans/pl.pdf; https://www.samhsa.gov/capt/about-capt/state-
tribe-jurisdiction-contacts/republic-of-palau; https://
oceanservice.noaa.gov/news/pressreleases/nov07/supp_110507.html; and 
https://www.fpir.noaa.gov/PRD/prd_intl_sea_turtles_palau.html.
    \14\https://www.doi.gov/oia/compact-trust-funds.
    \15\https://www.doi.gov/oia/islands/palau.
    \16\Testimony of David Gootnick, Director of International Affairs 
and Trade, Government Accountability Office, before the Committee on 
Energy and Natural Resources, April 5, 2016, 
p. 3.
---------------------------------------------------------------------------
    The contribution of Palau to protecting important U.S. 
national security interests in the Western Pacific region has 
been echoed by the Assistant Secretary for Insular Areas of the 
Department of the Interior:

          The [Palau] Compact provides U.S. military forces 
        full authority and responsibility for security and 
        defense matters in and relating to Palau. The United 
        States has the extraordinary advantage of being able to 
        deny other nations' military forces or personnel access 
        to Palau, an important element in our Pacific strategy 
        for defense. The Compact has also helped strengthen 
        democratic principles and economic stability in Palau, 
        and stabilizing the larger Micronesia region which 
        includes the U.S. territory of Guam and the Ronald 
        Reagan Ballistic Missile Test Range on Kwajalein Atoll 
        in the Marshall Islands.\17\
---------------------------------------------------------------------------
    \17\Statement of Esther P. Kia'Aina, Assistant Secretary for 
Insular Areas, Department of the Interior, before the House 
Subcommittee on Indian, Insular, and Alaska Native Affairs, July 6, 
2016 (regarding H.R. 4531, To approve an agreement between the United 
States and the Republic of Palau), p. 3.

    In 1994, the U.S. entered into a 50-year compact with 
Palau, with a review mandated after 15 years.\18\ Palau's 
Compact of Free Association was enacted into law by Congress as 
Public Law 99-658.\19\ This agreement included provisions 
regarding the sovereignty of Palau, the types and amounts of 
U.S. financial assistance, security and defense authorities, 
and the establishment of a compact trust fund.\20\ From 1999-
2009, the U.S. provided Palau approximately $574 million in 
compact assistance, including capitalizing a $70 million trust 
fund and spending $149 million for road construction.\21\
---------------------------------------------------------------------------
    \18\https://www.doi.gov/oia/islands/palau; Statement of Mr. Thomas 
Bussanich, Director of Budget, Office of Insular Affairs, Department of 
the Interior, before the House Committee on Foreign Affairs 
Subcommittee on Asia and the Pacific, November 30, 2011, p. 3.
    \19\Public Law 99-658; 48 U.S.C. 1931 et seq.
    \20\Testimony of David Gootnick, Director of International Affairs 
and Trade, Government Accountability Office, before the Committee on 
Energy and Natural Resources, April 5, 2016, 
p. 4.
    \21\Id.
---------------------------------------------------------------------------
    In September 2010, the Obama Administration and Palau 
renewed the 1994 Compact of Free Association.\22\ The 
amendments to the Compact included an additional $229 million 
in direct economic assistance through 2024, including 
infrastructure grants, funding an infrastructure trust fund, 
and making changes to the compact trust fund.\23\ H.R. 2085 
approves the Compact amendments and amends Public Law 99-658 to 
execute the agreement. The changes include withholding funds 
from Palau under certain circumstances; transfers of funds from 
the Secretary of the Interior to implement the agreement; 
authorization of appropriations to fund postal services; the 
creation of an infrastructure maintenance fund and a 
requirement for matching funds from Palau; and a passport 
requirement. Because these Compact changes have not been 
formally adopted, since 2011, Congress has provided $79 million 
annually to Palau, but has not contributed to the trust fund 
established under the original Compact of Free Association.\24\
---------------------------------------------------------------------------
    \22\https://2009-2017.state.gov/p/eap/rls/rm/2011/11/177965.htm.
    \23\Testimony of David Gootnick, Director of International Affairs 
and Trade, Government Accountability Office, before the Committee on 
Energy and Natural Resources, April 5, 2016, 
p. 4.
    \24\https://www.gao.gov/products/GAO-16-550T.
---------------------------------------------------------------------------
    Following the Committee's action on H.R. 2085, portions of 
the bill approving the renewed compact were included in Public 
Law 115-91, the National Defense Authorization Act for Fiscal 
Year 2018.

                            Committee Action

    H.R. 2085 was introduced on April 8, 2017, by Congresswoman 
Gregorio Kilili Camacho Sablan (D-MP). The bill was referred 
primarily to the Committee on Natural Resources and 
additionally to the Committee on Foreign Affairs. Within the 
Natural Resources Committee, the bill was referred to the 
Subcommittee on Indian, Insular and Alaska Native Affairs. On 
April 26, 2017, the Natural Resources Committee met to consider 
the bill. No amendments were offered, and the bill was ordered 
favorably reported to the House of Representatives by unanimous 
consent on April 27, 2017.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, the Committee has received the following estimate for the 
bill from the Director of the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 13, 2017.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2085, a bill to 
approve an agreement between the United States and the Republic 
of Palau, and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                                Keith Hall,
                                                          Director.
            Enclosure.

H.R. 2085--A bill to approve an agreement between the United States and 
        the Republic of Palau, and for other purposes

    Summary: H.R. 2085 would change and approve the agreement 
and appendices signed between the United States and the 
Republic of Palau on September 3, 2010, in connection with the 
Compact of Free Association between the two nations. The 
compact, agreements, and appendices that were approved in 1994 
govern the political, economic, and military relationships 
between the United States and Palau.
    CBO estimates that enacting the bill would increase direct 
spending by $156 million over the 2018-2027 period. Because 
enacting the bill would affect direct spending, pay-as-you-go 
procedures apply. Enacting the bill would not affect revenues. 
CBO also estimates that if appropriated funds are provided, 
continuing federal services in Palau would cost $108 million 
over the 2018-2022 period.
    CBO estimates that enacting H.R. 2085 would not increase 
net direct spending or on-budget deficits by more than $5 
billion in any of the four consecutive 10-year periods 
beginning in 2028.
    H.R. 2085 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 2085 is shown in the following table. 
The costs of this legislation fall within all budget functions 
that provide services to Palau.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              INCREASES IN DIRECT SPENDING
 
Estimated Budget Authority...........................      0    105     12     11     10      9      6      3      0      0      0       147        156
Estimated Outlays....................................      0    105     12     11     10      9      6      3      0      0      0       147        156
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level........................
                                                           0     20     21     21     23     23     23     23      0      0      0       108        154
Estimated Outlays....................................      0     20     21     21     23     23     23     23      0      0      0       108        154
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that H.R. 
2085 will be enacted near the end of fiscal year 2017 and that 
spending will follow historical patterns for federal funds 
provided to Palau.

Direct spending

    H.R. 2085 would modify the 2010 compact to specify and 
appropriate the amounts that the United States agrees to 
provide to Palau ($140 million over the 2018-2024 period) and 
would specify an inflation factor to adjust those amounts. 
Those funds would be aimed at assisting the island with major 
infrastructure improvements and economic development. 
Accounting for the adjustments for inflation, CBO estimates 
that enacting H.R. 2085 would increase direct spending by $156 
million for assistance to Palau over the 2018-2024 period.

Spending subject to appropriation

    H.R. 2085 also would authorize several federal departments 
to continue providing services to Palau through 2024, including 
the Departments of Agriculture, Commerce, Defense, Education, 
Health and Human Services, Interior, State, and Transportation. 
In addition, the bill would authorize the appropriation of $1.5 
million a year through 2024 for certain U.S. Postal Service 
expenses in Palau. Based on an analysis of information about 
the level of federal spending in the most recent financial 
audit of the island and accounting for anticipated inflation, 
CBO estimates that continuing those programs and services would 
cost $108 million over the 2018-2022 period and a total of $154 
million through 2024.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to these 
pay-as-you-go procedures are shown in the following table.

         CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2085, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON APRIL 27, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.......................      0    105     12     11     10      9      6      3      0      0      0       147        156
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting H.R. 2085 would not increase net direct 
spending or on-budget deficits by more than $5 billion in any 
of the four consecutive 10-year periods beginning in 2028.
    Intergovernmental and private-sector impact: H.R. 2085 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Zachary Byrum; 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to approve an agreement between the 
United States and the Republic of Palau.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                       Compliance With H. Res. 5

    Directed Rule Making. This bill does not contain any 
directed rule makings.
    Duplication of Existing Programs. This bill does not 
establish or reauthorize a program of the federal government 
known to be duplicative of another program. Such program was 
not included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-139 
or identified in the most recent Catalog of Federal Domestic 
Assistance published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169) as relating to other programs.

                Preemption of State, Local or Tribal Law

    This bill is not intended to preempt any State, local or 
tribal law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                           PUBLIC LAW 99-658



           *       *       *       *       *       *       *
  TITLE I--APPROVAL OF COMPACT; INTERPRETATION OF, AND UNITED STATES 
POLICIES REGARDING, COMPACT; SUPPLEMENTAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 105. RESULTS OF COMPACT REVIEW.

  (a) In General.--The Agreement and appendices signed by the 
United States and the Republic of Palau on September 3, 2010 
(referred to in this section as the ``Agreement''), in 
connection with section 432 of the Compact of Free Association 
between the Government of the United States of America and the 
Government of Palau (48 U.S.C. 1931 note; Public Law 99-658) 
(referred to in this section as the ``Compact of Free 
Association''), are approved--
          (1) except for the extension of Article X of the 
        Agreement Regarding Federal Programs and Services, and 
        Concluded Pursuant to Article II of Title II and 
        section 232 of the Compact of Free Association; and
          (2) subject to the provisions of this section.
  (b) Withholding of Funds.--If the Republic of Palau withdraws 
more than $9,000,000 from the trust fund established under 
section 211(f) of the Compact of Free Association in fiscal 
year 2018, amounts payable under sections 1, 2(a), 3, and 4(a), 
of the Agreement shall be withheld from the Republic of Palau 
until the date on which the Republic of Palau reimburses the 
trust fund for the total amounts withdrawn that exceeded 
$9,000,000 in that fiscal year, except that funds to be 
provided under section 3 of the Agreement may be released to 
replenish the 211(f) Fund if an arrangement had been made 
between the United States and the Republic of Palau to advance 
funds during such fiscal year from the 211(f) Fund for the 
purposes allowable under section 3 of the Agreement.
  (c) Funding for Certain Provisions Under Section 105 of 
Compact of Free Association.--Not later than 30 days after the 
date of the enactment of this section, out of any funds in the 
Treasury not otherwise appropriated, the Secretary of the 
Treasury shall transfer to the Secretary of the Interior such 
sums as are necessary for the Secretary of the Interior to 
implement sections 1, 2(a), 3, 4(a), 5, and 6 of the Agreement, 
which sums shall remain available until expended without any 
further appropriation.
  (d) Authorizations of Appropriations.--There are authorized 
to be appropriated--
          (1) to the Secretary of the Interior to subsidize 
        postal services provided by the United States Postal 
        Service to the Republic of Palau, the Republic of the 
        Marshall Islands, and the Federated States of 
        Micronesia, $1,500,000 for each of fiscal years 2018 
        through 2024, to remain available until expended but 
        may be available pursuant to this paragraph to the 
        United States Postal Service only so long as domestic 
        postage may be used for mail to Palau, the Federated 
        States of Micronesia, and the Republic of the Marshall 
        Islands; and
          (2) to the head of each Federal entity described in 
        paragraphs (1), (3), and (4) of section 221(a) of the 
        Compact of Free Association (including the successor of 
        each Federal entity) to carry out the responsibilities 
        of the Federal entity under section 221(a) of the 
        Compact of Free Association such sums as are necessary, 
        to remain available until expended.

           *       *       *       *       *       *       *

                              ----------                              


                 SECTION 3 OF THE ACT OF JUNE 30, 1954

 AN ACT To provide for a continuance of civil government for the Trust 
                   Territory of the Pacific Islands.

  [Sec. 3  There are hereby authorized to be appropriated such 
sums as the Secretary of the Interior may find necessary, but 
not to exceed $10,000,00 for any one year, to alleviate 
suffering and damage resulting from major disasters that occur 
in the Trust Territory of the Pacific Islands. Such sums shall 
be in addition to those authorized in section 2 of this Act and 
shall not be subject to the limitations imposed by section 2 of 
this Act. The Secretary of the Interior shall determine whether 
or not a major disaster has occurred in accordance with the 
principles and policies of sections 102(2) and 401 of the 
Disaster Relief and Emergency Assistance Act.]
                              ----------                              


           COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003



           *       *       *       *       *       *       *
      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. 105. SUPPLEMENTAL PROVISIONS.

  (a) Domestic Program Requirements.--Except as may otherwise 
be provided in this joint resolution, all United States Federal 
programs and services extended to or operated in the Federated 
States of Micronesia or the Republic of the Marshall Islands 
are and shall remain 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 Funds).
          (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.
          (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) Interagency group on freely associated states' 
        affairs.--
                  (A) In general.--The President is hereby 
                authorized to appoint an Interagency Group on 
                Freely Associated States' Affairs to provide 
                policy guidance and 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) 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, 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.--
          (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) Emergency and disaster assistance.--
                          (i) In general.--Subject to clause 
                        (ii), section 221(a)(6) of the U.S.-FSM 
                        Compact and section 221(a)(5) of the 
                        U.S.-RMI Compact shall each be 
                        construed and applied in accordance 
                        with the two Agreements to Amend 
                        Article X of the Federal Programs and 
                        Service Agreements signed on June 30, 
                        2004, and on June 18, 2004, 
                        respectively, provided that all 
                        activities carried out by the United 
                        States Agency for International 
                        Development and the Federal Emergency 
                        Management Agency under Article X of 
                        the Federal Programs and Services 
                        Agreements may be carried out 
                        notwithstanding any other provision of 
                        law. In the sections referred to in 
                        this clause, the term ``United States 
                        Agency for International Development, 
                        Office of Foreign Disaster Assistance'' 
                        shall be construed to mean ``the United 
                        States Agency for International 
                        Development''.
                          (ii) Definition of will provide 
                        funding.--In the second sentence of 
                        paragraph 12 of each of the Agreements 
                        described in clause (i), the term 
                        ``will provide funding'' means will 
                        provide funding through a transfer of 
                        funds using Standard Form 1151 or a 
                        similar document or through an 
                        interagency, reimbursable agreement.
                  (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 
                                government, institutions, and 
                                people 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 
                                government, institutions, and 
                                people of the Marshall Islands, 
                                and to students enrolled in 
                                such institutions, and in 
                                institutions in the United 
                                States, its territories, and 
                                the Republic of Palau, 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.), titles I (other than subtitle 
                        C) and II of the Workforce Innovation 
                        and Opportunity Act, title I of the 
                        Carl D. Perkins Career and Technical 
                        Education Act of 2006 (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, the 
                        Republic of the Marshall Islands, or 
                        the Republic of Palau 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. The agreement between 
                        the Secretary of Education, the 
                        Secretary of Labor, the Secretary of 
                        Health and Human Services, 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 government, 
                        institutions, and people 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 
                        [2009] 2024 , to the extent the 
                        government, institutions, and people of 
                        Palau were so eligible under such 
                        provisions in fiscal year 2003.
                  (C) The Legal Services Corporation, which 
                shall also continue to be available to the 
                citizens of the Federated States of Micronesia, 
                the Republic of Palau, and the Republic of the 
                Marshall Islands who legally reside in the 
                United States (including territories and 
                possessions).
                  (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 
                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.
  (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 division A of subtitle III of title 54, United 
States Code, 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.
  (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.

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