[House Report 108-262]
[From the U.S. Government Publishing Office]
108th Congress Rept. 108-262
HOUSE OF REPRESENTATIVES
1st Session Part 3
======================================================================
COMPACT OF FREE ASSOCIATION AMENDMENTS
ACT OF 2003
_______
September 15, 2003.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the
following
R E P O R T
[To accompany H.J. Res. 63]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to whom was referred the
joint resolution (H.J. Res. 63) 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 otherwise to amend Public Law 99-239, and to
appropriate for the purposes of amended Public Law 99-239 for
fiscal years ending on or before September 30, 2023, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the joint
resolution as amended do pass.
CONTENTS
Page
The Amendment.................................................... 2
Purpose and Summary.............................................. 71
Background and Need for the Legislation.......................... 71
Hearings......................................................... 81
Committee Consideration.......................................... 81
Vote of the Committee............................................ 81
Committee Oversight Findings..................................... 81
New Budget Authority and Tax Expenditures........................ 81
Congressional Budget Office Cost Estimate........................ 81
Performance Goals and Objectives................................. 85
Constitutional Authority Statement............................... 85
Section-by-Section Analysis and Discussion....................... 85
Changes in Existing Law Made by the Bill, as Reported............ 92
Markup Transcript................................................ 93
The Amendment
The amendment is as follows:
Strike all after the resolving clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This joint resolution, together with the Table of
Contents in subsection (b) of this section, may be cited as the
``Compact of Free Association Amendments Act of 2003''.
(b) Table of Contents.--The table of contents for this joint
resolution is as follows:
TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S.-RMI COMPACT;
INTERPRETATION OF, AND UNITED STATES 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 U.S.-RMI
Compact of Free Association.
(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.
(d) Amendment, Change, or Termination in the U.S.-
FSM Compact, the U.S.-RMI Compact and Certain
Agreements.
(e) Subsidiary Agreement 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.
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) Effect of U.S.-FSM Compact and U.S.-RMI Compact
on U.S. Areas; Related Authorization and
Continuing Appropriation.
(f) Foreign Loans.
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.
(f) Continuing Programs and Laws.
(g) College of Micronesia.
(h) Trust Territory Debts to U.S. Federal Agencies.
(i) Use of DOD Medical Facilities.
(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.
Sec. 106. Construction Contract Assistance.
(a) Assistance to U.S. Firms.
(b) Authorization of Appropriations.
Sec. 107. Limitations.
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.
(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.
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.
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.--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.-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) 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;
(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: Articles III, IV and X of the
agreement referred to in section 462(b)(6) of the U.S.-
RMI Compact:
(i) Article III and IV of the agreement
referred to in section 462(b)(6) of the U.S.-
FSM Compact.
(ii) 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 is subsection (d) of this
section shall enter into force until 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. 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.
(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 three 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
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. 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
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.
(4) The United States and the Republic of the Marshall
Islands entered into an agreement in furtherance of paragraphs
(1) through (3) of this subsection on July 21, 1986. Nothing in
this subsection creates any rights or obligations beyond those
provided for in the original enacted version of Public Law 99-
239.
(c) Section 177 Agreement.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that in furtherance of the purposes
of Article I of the Subsidiary Agreement for Implementation of
Section 177 of the Compact, the payment of the amount specified
therein shall be made by the United States under Article I of
the Agreement between the 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) 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.
(4) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that at the end of 15 years after the
effective date of the Compact, the firm then acting as Fund
Manager shall transfer to the Government of the Marshall
Islands, or to such account as such Government shall so notify
the Fund Manager, all remaining funds and assets being managed
by the Fund Manager under the Section 177 Agreement.
(5) The United States made the payment called for under
paragraph (1) of this subsection in November 1986. Nothing in
this subsection creates any rights or obligations beyond those
provided for in the original enacted version of Public Law 99-
239.
(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. Nothing in this
subsection creates any rights or obligations beyond those provided for
in the original enacted version of Public Law 99-239.
(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.
(3) The amounts specified in paragraph (1) of this subsection
were paid as specified. Nothing in this subsection creates any
rights or obligations beyond those provided for in the original
enacted version of Public Law 99-239. The provisions of section
177 of the Compact, section 177 of the U.S.-FSM Compact,
section 177 of the U.S.-RMI Compact, and 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 any such claims are terminated and barred.
(f) DOE Radiological Health Care Program; USDA Agricultural and Food
Programs.--
(1) Marshall islands program.--Notwithstanding any other
provision of law, upon the request of the Government of the
Republic of the Marshall Islands, the President (either through
an appropriate department or agency of the United States or by
contract with a United States firm) shall continue to provide
special medical care and logistical support thereto for the
remaining 118 (as of April 30, 2003) 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.
(2) Agricultural and food programs.--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--
(A) without reimbursement, to continue the planting
and agricultural maintenance program on Enewetak;
(B) 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.
The President shall ensure the assistance provided under these
programs reflects the changes in the population since the
inception of such programs.
(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.
Nothing in this subsection creates any rights or obligations
beyond those provided for in the original enacted version of
Public Law 99-239.
(g) Rongelap.--
(1) In the joint resolution of January 14, 1986 (Public Law
99-239) Congress provided that because Rongelap was 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.
Nothing in this subsection creates any rights or obligations
beyond those provided for in the original enacted version of
Public Law 99-239.
(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. Nothing in
this subsection creates any rights or obligations beyond those
provided for in the original enacted version of Public Law 99-
239.
(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 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 million dollars.
(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 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.
(7) Status of payment.--The ex gratia payment provided for in
this subsection was made. Nothing in this subsection creates
any rights or obligations beyond those provided for in the
original enacted version of Public Law 99-239.
(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. Nothing in this subsection creates any rights
or obligations beyond those provided for in the original
enacted version of Public Law 99-239.
(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.
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 three 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
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.
SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY REGARDING U.S.-FSM
COMPACT AND U.S.-RMI COMPACT.
(a) Human Rights.--In approving the U.S.-FSM Compact and the U.S.-RMI
Compact, the 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. The 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 the 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 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.--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), shall be
used for the purpose of increasing the machine-readability and
security of passports issued by such jurisdictions. Such funds
must 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.--As a condition of assistance under
the U.S.-FSM Compact and the U.S.-RMI Compact, the governments
of the Federated States of Micronesia and the Republic of the
Marshall Islands shall 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
Amended Compact Act.''.
(c) Nonalienation of Lands.--The 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, the Congress understands that 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) Effect of U.S.-FSM Compact and U.S.-RMI Compact on Certain U.S.
Areas; Related Authorization and Continuing Appropriation.--
(1) Definitions.--For the purposes of this subsection--
(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 person
admitted 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 (i) is a resident of an affected
jurisdiction, and (ii) has had periods of residence in
American Samoa, Guam, the Commonwealth of the Northern
Mariana Islands, or a State of the United States with a
duration, in the aggregate, of less than 10 years; and
their children under the age of 18 who were admitted as
nonimmigrants under the U.S.-RMI Compact, the U.S.-FSM
Compact, or the Palau Compact. 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.
(2) Authorization and continuing appropriation.--There is
hereby authorized and appropriated to the Secretary of the
Interior, out of any money in the Treasury not otherwise
appropriated, to remain available until expended, for each
fiscal year from 2004 through 2023, $15,000,000 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.
(3) 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
(C) after fiscal year 2003, shall be funded by the
Secretary of the Interior by deducting such sums as are
necessary from funds appropriated pursuant to the
authorization contained in paragraph (2) of this
subsection.
(4) 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 (2) of this subsection, as reduced
by any deductions authorized by subparagraph (C) of paragraph
(3) 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.
(f) Foreign Loans.--The 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.
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 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.
(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
the Secretary of the Treasury regarding overall economic
conditions in 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) 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.
(7) 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. 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.
(8) 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.
(9) 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 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. 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,
except that, for purposes of an orderly reduction of United
States programs and services in the Federated States of
Micronesia, the Marshall Islands, and Palau, United States
programs or services not specifically authorized by the Compact
of Free Association or by other provisions of law may continue
but, unless reimbursed by the respective freely associated
state, not in excess of the following amounts:
(A) For fiscal year 1987, an amount not to exceed 75
per centum of the total amount appropriated for such
programs for fiscal year 1986.
(B) For fiscal year 1988, an amount not to exceed 50
per centum of the total amount appropriated for such
programs for fiscal year 1986.
(C) For fiscal year 1989, an amount not to exceed 25
per centum of the total amount appropriated for such
programs for fiscal year 1986.
(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.--The 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. The 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) The Legal Services Corporation.
(B) The Public Health Service.
(C) 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.
(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) Use of DOD Medical Facilities.--The Secretary of Defense is
hereby authorized to cooperate with government authorities responsible
for provision of medical services in the Federated States of Micronesia
and the Republic of the Marshall Islands in order to permit use of
medical facilities of the Department of Defense for persons properly
referred by such authorities in accordance with Article XVII of the
agreements referred to in section 462(b)(7) of the U.S.-FSM Compact and
the U.S.-RMI Compact. The Secretary of Health and Human Services is
hereby authorized and directed to 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.
(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 USDA
Resource Conservation and Development Program, 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 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 and Hansen's Disease.
The Secretary of the Interior shall assist the Government of the
Federated States of Micronesia and the Government of the Republic of
the Marshall Islands 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 the
Congress of the United States regarding the proper interpretation of
the international agreement.
SEC. 106. 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. PROHIBITION.
The provisions of chapter 11 of title 18, United States Code, shall
apply in full to any individual who has served as the United States
negotiator of amendments to the Compact or its subsidiary agreements or
of related agreements or who is or was an officer or employee of the
Office in the Department of State responsible for negotiating
amendments to the Compact or its subsidiary agreements or who is or was
assigned or detailed to that Office or who served on the interagency
group coordinating United States policy on the Compact negotiations.
SEC. 108. COMPENSATORY ADJUSTMENTS.
(a) Additional Programs and Services.--In addition to the programs
and services set forth in Section 221 of the U.S.-FSM Compact and the
U.S.-RMI Compact, and pursuant to Section 222 of the U.S.-FSM Compact
and the U.S.-RMI Compact, the services and programs of the following
United States agencies are authorized to be made available to the
Federated States of Micronesia and the Republic of the Marshall
Islands: the Small Business Administration, Economic Development
Administration, and the Rural Utilities Services (formerly Rural
Electrification Administration); and the programs and services of the
Department of Labor under the Workforce Investment Act of 1998; 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 million for the Federated States of Micronesia and
$20 million 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 subsection 111 of that
resolution not have been appropriated, such amount not yet
appropriated may be appropriated, without regard to divisions
between amounts authorized in subsection 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, 2004. Only adverse economic effect occurring
during the initial fifteen-year term of the Compact may be
considered for compensation under section 111 of the joint
resolution of January 14, 1986 (Public Law 99-239).
SEC. 109. AUTHORIZATION AND CONTINUING APPROPRIATION.
(a) There are authorized and appropriated to the Department of the
Interior, out of any money in the Treasury not otherwise appropriated,
to remain available until expended, such sums as are necessary to carry
out the purposes of 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 of sections 221(a) of the U.S.-
FSM Compact and the U.S.-RMI Compact, to remain available until
expended.
SEC. 110. PAYMENT OF CITIZENS OF THE FEDERATED STATES OF MICRONESIA,
THE REPUBLIC OF THE MARSHALL ISLANDS, AND THE
REPUBLIC OF PALAU EMPLOYED BY THE GOVERNMENT OF THE
UNITED STATES IN THE CONTINENTAL UNITED STATES.
Section 605 of Public Law 107-67 (the Treasury and General Government
Appropriations Act, 2002; 5 U.S.C. 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) Compact of Free Association, as Amended, Between the Government
of the United States of America and the Government of the Federated
States of Micronesia.--
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 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.
(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
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, 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.
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 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) 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.
(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
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) 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.
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) shall develop, prior to conducting any activity requiring
the preparation of an Environmental Impact Statement under
section 161(a)(2), written standards and procedures, as agreed
with the Government of the Federated States of Micronesia, to
implement the substantive provisions of the laws made
applicable to U.S. Government activities in the Federated
States of Micronesia, pursuant to section 161(a)(3).
(b) The Government of the Federated States of Micronesia shall
continue to develop and implement standards and procedures to protect
its environment. As a reciprocal obligation to the 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 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) 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) 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.
(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
(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 courts 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 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. 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:
``(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:
(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 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 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) 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 performance indicators that are necessary
to ensure effective use of United States assistance and reasonable
progress toward achieving program objectives. The Government of the
United States may seek appropriate remedies for noncompliance with the
terms and conditions attached to the assistance, or for failure to
comply with section 234, including withholding assistance.
(b) The Government of the United States shall, for each fiscal year
of the twenty years during which assistance is to be provided on a
sector grant basis under section 211, grant the Government of the
Federated States of Micronesia an amount equal to the lesser of (i) one
half of the reasonable, properly documented cost incurred during each
fiscal year to conduct the annual audit required under Article VIII (2)
of the Fiscal Procedures Agreement or (ii) $500,000. Such amount will
not be adjusted for inflation under section 217 or otherwise.
Section 213--Joint Economic Management Committee
The Governments of the United States and the Federated States of
Micronesia shall establish a Joint Economic Management 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 under section 111 (d) of Public Law 99-
239 (January 14, 1986), or successor provisions, would be contributed
to the Trust Fund as a Federated States of Micronesia contribution.
(c) The terms regarding the investment and management of funds and
use of the income of the Trust Fund shall be set forth in the separate
Trust Fund Agreement described in subsection (a) of this section. Funds
derived from United States investment shall not be subject to Federal
or state taxes in the United States or the Federated States of
Micronesia. The Trust Fund Agreement shall also provide for annual
reports to the Government of the United States and to the Government of
the Federated States of Micronesia. The Trust Fund Agreement shall
provide for 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.
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 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. 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
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.
Article IV
Trade
Section 241
The Federated States of Micronesia is not included in the customs
territory of the United States.
Section 242
The President shall proclaim the following tariff treatment for
articles imported from the Federated States of Micronesia which shall
apply during the period of effectiveness of this title:
(a) Unless otherwise excluded, articles imported from the
Federated States of Micronesia, subject to the limitations
imposed under section 503(b) of title V of the Trade Act of
1974 (19 U.S.C. 2463(b)), shall be exempt from duty.
(b) Only tuna in airtight containers provided for in heading
1604.14.22 of the Harmonized Tariff Schedule of the United
States that is imported from the Federated States of Micronesia
and the Republic of the Marshall Islands during any calendar
year not to exceed 10 percent of apparent United States
consumption of tuna in airtight containers during the
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
(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 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.
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
The Government of the United States may invite members of the armed
forces of other countries to use military areas and facilities in the
Federated States of Micronesia, in conjunction with and under the
control of United States Armed Forces. Use by units of the armed forces
of other countries of such military areas and facilities, other than
for transit and overflight purposes, shall be subject to consultation
with and, in the case of major units, approval of the Government of the
Federated States of Micronesia.
Section 316
The authority and responsibility of the Government of the United
States under this Title may not be transferred or otherwise assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by the
Government of the United States of military areas and facilities in the
Federated States of Micronesia are set forth in separate agreements,
which shall remain in effect in accordance with the terms of such
agreements.
(b) If, in the exercise of its authority and responsibility under
this Title, the Government of the United States requires the use of
areas within the Federated States of Micronesia in addition to those
for which specific arrangements are concluded pursuant to section
321(a), it may request the Government of the Federated States of
Micronesia to satisfy those requirements through leases or other
arrangements. The Government of the Federated States of Micronesia
shall sympathetically consider any such request and shall establish
suitable procedures to discuss it with and provide a prompt response to
the Government of the United States.
(c) The Government of the United States recognizes and respects the
scarcity and special importance of land in the Federated States of
Micronesia. In making any requests pursuant to section 321(b), the
Government of the United States shall follow the policy of requesting
the minimum area necessary to accomplish the required security and
defense purpose, of requesting only the 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.
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 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 Title.
Accordingly, it is the intention of the two countries that the
provisions of this Title shall remain binding as long as this Compact,
as amended, remains in effect, and thereafter as mutually agreed,
unless earlier terminated by mutual agreement pursuant to section 441,
or amended pursuant to Article III of Title Four. If at any time the
Government of the United States, or the 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.
(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) 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.
(d) In determining any legal issue, the Arbitration Board may have
reference to international law and, in such reference, shall apply as
guidelines the provisions set forth in Article 38 of the Statute of the
International Court of Justice.
(e) The Arbitration Board shall adopt such rules for its proceedings
as it may deem appropriate and necessary, but such rules shall not
contravene the provisions of this Compact, as amended. Unless the
parties provide otherwise by mutual agreement, the Arbitration Board
shall endeavor to render its decision within 30 days after the
conclusion of arguments. The Arbitration Board shall make findings of
fact and 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 States and the Federated
States of Micronesia. The Government of the Federated States of
Micronesia shall notify the Government of the United States of its
intention to call such a plebiscite, or to pursue another mutually
agreed and constitutional process, which plebiscite or process shall
take place not earlier than three months after delivery of such notice.
The plebiscite or other process shall be administered by the Government
of the Federated States of Micronesia in accordance with its
constitutional and legislative processes. If a majority of the valid
ballots cast in the plebiscite or other process favors termination, the
Government of the 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.
(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.
(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.
(e) ``Compact, as amended'' means the Compact of Free
Association Between the United States and the Federated States
of Micronesia, as amended. The effective date of the Compact,
as amended, shall be on a date to be determined by the
President of the United States, and agreed to by the Government
of the Federated States of Micronesia, following formal
approval of the Compact, as amended, in accordance with section
411 of this Compact, as amended.
(f) ``Government of the Federated States of Micronesia''
means the Government established and organized by the
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.
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 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.
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:
(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
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 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 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
(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
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.
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.
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) 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.
(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.
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 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) 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.
(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) 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 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 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 courts 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 the 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, 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.
(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).
(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 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
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 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 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) 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 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 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
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 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. 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
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, 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 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 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.
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:
(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.
(c) Radioactive, toxic chemical, or biological materials not intended
for weapons use shall not be affected by section 314(b).
(d) No material or substance referred to in this section shall be
stored in the Republic of the Marshall Islands except in an amount and
manner which would not be hazardous to public health or safety. In
determining what shall be an amount or manner which would be hazardous
to public health or safety under this section, the Government of the
United States shall comply with any applicable mutual agreement,
international guidelines accepted by the Government of the United
States, and the laws of the United States and their implementing
regulations.
(e) Any exercise of the exemption authority set forth in section
161(e) shall have no effect on the obligations of the Government of the
United States under this section or on the application of this
subsection.
(f) The provisions of this section shall apply in the areas in which
the Government of the Republic of the Marshall Islands exercises
jurisdiction over the living resources of the seabed, subsoil or water
column adjacent to its coasts.
Section 315
The Government of the United States may invite members of the armed
forces of other countries to use military areas and facilities in the
Republic of the Marshall Islands, in conjunction with and under the
control of United States Armed Forces. Use by units of the armed forces
of other countries of such military areas and facilities, other than
for transit and overflight purposes, shall be subject to consultation
with and, in the case of major units, approval of the Government of the
Republic of the Marshall Islands.
Section 316
The authority and responsibility of the Government of the United
States under this Title may not be transferred or otherwise assigned.
Article II
Defense Facilities and Operating Rights
Section 321
(a) Specific arrangements for the establishment and use by the
Government of the United States of military areas and facilities in the
Republic of the Marshall Islands are set forth in separate agreements,
which shall remain in effect in accordance with the terms of such
agreements.
(b) If, in the exercise of its authority and responsibility under
this Title, the Government of the United States requires the use of
areas within the Republic of the Marshall Islands in addition to those
for which specific arrangements are concluded pursuant to section
321(a), it may request the Government of the Republic of the Marshall
Islands to satisfy those requirements through leases or other
arrangements. The Government of the Republic of the Marshall Islands
shall sympathetically consider any such request and shall establish
suitable procedures to discuss it with and 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 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 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.
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:
(5) petitions to the Government of the United States for
redress; or
(6) claims in any manner against the government, citizens,
nationals or entities of any third country.
(c) Petitions under section 353(b)(1) shall be treated as if they
were made by citizens of the United States.
Section 354
(a) The Government of the United States and the Government of the
Republic of the Marshall Islands are jointly committed to continue
their security and defense relations, as set forth in this Title.
Accordingly, it is the intention of the two countries that the
provisions of this Title shall remain binding as long as this Compact,
as amended, remains in effect, and thereafter as mutually agreed,
unless earlier terminated by mutual agreement pursuant to section 441,
or amended pursuant to Article III of Title Four. If at any time the
Government of the United States, or the 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 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 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 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) In determining any legal issue, the Arbitration Board may
have reference to international law and, in such reference,
shall apply as guidelines the provisions set forth in Article
38 of the Statute of the International Court of Justice.
(e) The Arbitration Board shall adopt such rules for its
proceedings as it may deem appropriate and necessary, but such
rules shall not contravene the provisions of this Compact, as
amended. Unless the parties provide otherwise by mutual
agreement, the Arbitration Board shall endeavor to render its
decision within 30 days after the conclusion of arguments. The
Arbitration Board shall make findings of fact and 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 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. 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.
(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
(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
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. 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
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;
(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.
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.
Purpose and Summary
H.J. Res. 63 would 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
otherwise amend Public Law 99-239.
Background and Need for the Legislation
BACKGROUND
In 1947, by agreement with the United Nations Security
Council, the United States began administering certain formerly
Japanese-controlled islands groups (the Northern Mariana
Islands, the Federated States of Micronesia, the Marshall
Islands, and Palau) as the United Nations Trust Territory of
the Pacific Islands.\1\ In 1982, the U.S. government and the
government of the Federated States of Micronesia concluded a
Compact of Free Association, which would make the Federated
States an independent nation in free association with the U.S.
In 1983, this compact was approved by the people of Micronesia
in a plebiscite and in the U.S. by enactment of the Compact of
Free Association Act of 1985.\2\ In 1983, the U.S. government
and the government of the Marshall Islands concluded a Compact
of Free Association, which would make the Marshall Islands an
independent nation in free association with the U.S. Later that
year, this compact was approved by the people of the Marshall
Islands in a plebiscite and in the U.S. by enactment of the
Compact of Free Association Act of 1985. The Compact of Free
Association with the Marshall Islands went into effect on
October 21, 1986; the Compact of Free Association with the
Federated States of Micronesia went into effect on November 3,
1986.\3\
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\1\ See footnote to 48 U.S.C.A. sec. 1681.
\2\ Pub. L. No. 99-239.
\3\ See Presidential Proclamation 5564, dated Nov. 3, 1986, 51 Fed.
Reg. 40399 (Nov. 7, 1986).
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The Compacts provided that the U.S. would support the new
nations economically with the goal of making them self-
sufficient. As to defense matters, the Compacts provided that
the U.S. would defend the nations against attack. The U.S.
would also be able to establish by agreement military bases in
their territory, foreclose access to, or use of, the nations by
military personnel or for the military purposes of third
countries (military denial), and bar the nations from taking
actions that were incompatible with U.S. defense interests
(defense veto).\4\ As to the Marshall Islands, a major
subsidiary agreement allowed the U.S. continued use of the
Kwajalein missile test range.
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\4\ Sections 311, 313 of the Compacts, found at footnote to 48
U.S.C.A. sec. 1901.
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Deputy Assistant Secretary of Defense for Asian and Pacific
Affairs Peter Brookes testified last year that:
The rights of the defense veto and provisions for
military access and use currently contained in the
Compact . . . will terminate with the expiration of the
Compact on 30 September 2003 unless the Compact is
extended. The Department of Defense believes that it is
in our best interest to maintain the full range of
military access, use, and security cooperation options
and rights that the Compact provides.
. . . .
[A Department of Defense] study found an important
defense interest in continuing the use of the Kwajalein
Missile Range and the facilities on Kwajalein Atoll.
The requirements of our missile defense,
intercontinental ballistic missile, and space
operations and surveillance programs, combined with the
uniqueness of Kwajalein's location, and infrastructure
investment make renewal of the Compact in the best
interests of the Department of Defense.
. . . .
While it is too soon to say whether the [Federated
States of Micronesia and the Marshall Islands] will be
considered as candidates for increased U.S. access,
basing, or operations, our rights under the Compact
provide for sympathetic and prompt consideration by
[their] governments of any such request by the U.S. In
this region of potential instability and conflict, the
U.S. right of strategic denial and the defense veto
under the Compact are significant. Strategic denial
effectively creates a stable and secure zone across a
broad swath of the Western Pacific in which we can deny
military basing rights to any potentially hostile third
country, as well as prevent other actions that might be
incompatible with U.S. security interests.\5\
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\5\ Hearing of the House Resources Committee (July 17, 2002).
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Immigration Issues
The current Compacts provide that:
[Most citizens of the the Federated States of
Micronesia and the Marshall Islands] may enter into,
lawfully engage in occupations, and establish residence
as a nonimmigrant in the United States . . . without
regard to [the requirements of the Immigration and
Nationality Act that aliens possess passports and/or
visas and labor certifications to enter the U.S.]. . .
. Such persons shall be considered to have the
permission of the Attorney General of the United States
to accept employment in the United States.\6\
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\6\ Section 141(a) of the Compacts.
A nonimmigrant is an alien who comes to the U.S. for a
purely temporary visit, usually as a tourist or to work. If
citizens of the Federated States of Micronesia or the Marshall
Islands want to become permanent residents of the U.S., they
would be eligible to the same extent that any alien from any
other country would be eligible.
The Federated States of Micronesia have a current estimated
population of 108,143; the Marshall Islands have a current
estimated population of 56,429.\7\ In fiscal year 2002, 16,707
citizens of Micronesia and 6,964 citizens of the Marshall
Islands were admitted into the U.S. as nonimmigrants.\8\
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\7\ CIA World Factbook.
\8\ Bureau of Citizenship and Immigration Services data.
---------------------------------------------------------------------------
In recent years, the U.S. government has expressed a number
of concerns regarding the immigration provisions of the current
Compacts:
LThe ability of aliens claiming to be citizens
of the nations to enter the U.S. without having to have
passports is an open invitation for abuse by
terrorists. In addition, the government of the Marshall
Islands has in the past sold citizenship and passports
to non-native ``investors.'' Associate Deputy Attorney
General Stuart Levey has stated that the U.S. needs to
``secure its borders against the entry of terrorists,
criminals, and other aliens who may seek to exploit the
Compacts as a loophole to the normal requirements to
the immigration laws. In particular, [we must] improve
the ability of the United States to address the problem
presented by passport sales. . . .'' \9\
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\9\ Letter from Stuart Levey to Assistant Secretary of State for
East Asian and Pacific Affairs James Kelley 2 (Oct. 21, 2002).
LAmericans have taken advantage of the ability
of citizens of the nations to enter the U.S. without
visas to bring in adopted children without having to
meet the requirements of the Immigration and
Nationality Act regarding foreign adoptions that are
designed to safeguard the interests of the child and
his or her biological parents (such as a determination
by the Department of Homeland Security that proper care
will be provided a child and that a child qualifies an
orphan).\10\ In addition, children brought to the U.S.
in this manner do not receive the automatic U.S.
citizenship provided to foreign adopted children by the
Adopted Orphans Citizenship Act of 2000.\11\ They thus
remain subject to deportation should they commit
deportable acts.
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\10\ See Immigration and Nationality Act section 101(b)(1)(F)(i).
\11\ Pub. L. No. 106-395.
LLabor recruiters who arrange jobs in the
United States for citizens of the nations have been
abusing these workers, such as by not revealing the
real nature of the jobs they will perform, charging
prohibitive liquidated damages if the workers leave
employment before the end of their employment
contracts, and by leaving workers with no ability to
return home at the conclusion of their jobs.\12\
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\12\ See, e.g., Roche, Jr., Micronesia Acts to Rein in``Body
Brokers,'' Balt. Sun, March 19, 2003; Roche, Jr., and Mariano, Ruthless
Trade in``Body Brokers,'' Balt. Sun, Sept. 16, 2002; and Roche, Jr.,
and Mariano, Money, Migration and U.S. Missiles and Trapped in
Servitude Far from Their Homes, Balt. Sun, Sept. 15, 2002.
The economic assistance provisions of the Compacts were to
last for 15 years commencing on the effective date of the
Compacts.\13\ If negotiations between the U.S. and Federated
States of Micronesia and the Marshall Islands regarding
extension of these provisions were not concluded by this date,
the period of negotiations was to extend for not more than two
additional years, during which time the U.S. government would
continue to provide assistance.\14\ In any event, any provision
of the Compacts can be amended at any time by mutual agreement
of the parties.\15\
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\13\ Sections 214, 215 of the Compacts.
\14\ Section 231 of the Compacts.
\15\ Section 431 of the Compacts.
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The U.S. government used the looming expiration of the
economic assistance provisions to persuade the governments of
the Federated States of Micronesia and the Marshall Islands to
agree to changes to the immigration provisions to address the
American concerns mentioned above during negotiations over
extensions of the economic assistance provisions. The U.S.
government and the government of the Federated States of
Micronesia reached agreement on modifications to their Compact
on May 14, 2003. Agreement was reached with the government of
the Marshall Islands on April 30, 2003. H.J. Res. 63 is a joint
resolution that amends the Compacts pursuant to these
negotiated agreements.
In order to address the U.S. government's security
concerns, H.J. Res. 63 makes four modifications:
LNo person who has been granted citizenship in
the Federated States of Micronesia or the Marshall
Islands, or has been issued a Federated States of
Micronesia or Marshall Islands passport pursuant to any
investment, passport sale, or similar program, shall be
eligible for admission as a nonimmigrant under the
Compacts.\16\
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\16\ Section 141(c) of the amended Compacts.
LA naturalized citizen of the Federated States
of Micronesia or the Marshall Islands is only eligible
for the benefits of nonimmigrant entry into the U.S.
under the Compacts if he is 1) the spouse or unmarried
minor child of a citizen of the Federated States of
Micronesia or the Marshall Islands (who was a citizen
of the Trust Territory of the Pacific Islands before
the effective date of the relevant Compact or who was
born in the islands after the effective date of the
relevant Compact) and has been an actual resident of
the Federated States of Micronesia or the Marshall
Islands for not less than 5 years after being
naturalized and who holds a certificate of actual
residence, and, if a spouse, has been married to the
citizen for at least 5 years, or 2) an actual resident
for not less than 5 years after being naturalized (as
of April 30, 2003), who continues to be an actual
resident and who holds a certificate of actual
residence and whose name is included on a list
furnished by the government of the Federated States of
Micronesia or the Marshall Islands not later than the
effective date of the relevant amended Compact. In
addition, no naturalized citizen is eligible for the
imigration rights under the Compacts if the
circumstances associated with the naturalization are
such as to allow a reasonable inference on the part of
appropriate officials of the U.S. that the
naturalization was acquired primarily in order to
obtain entry rights into the U.S.\17\
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\17\ Section 141(a) of the amended Compacts.
LThe U.S. government is authorized to require
that passports used for the purpose of seeking
admission under the Compacts contain certain security
enhancements funded by the U.S.\18\
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\18\ Section 104(b)(2) of the amended Compacts.
LThe governments of the Federated States of
Micronesia and the Marshall Islands shall develop the
capability to provide reliable and timely information
as may be required by the U.S. government in enforcing
criminal and security-related grounds of
inadmissibility and deportability of the Immigration
and Nationality Act, and shall provide such
information.\19\
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\19\ Section 104(b)(3) of the amended Compacts.
One modification was made to address the U.S. government's
---------------------------------------------------------------------------
concerns regarding adoptions:
LAny child who is coming to the U.S. pursuant
to an adoption outside the country or for the purpose
of adoption in the U.S., is ineligible for admission as
a nonimmigrant under the Compacts. The child would have
to be brought to the U.S. pursuant to the applicable
provisions of the Immigration and Nationality Act.\20\
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\20\ Section 141(b) of the amended Compacts.
In order to address the U.S. government's concerns
regarding labor recruitment practices, separate agreements,
which shall come into effect simultaneously with the Compacts,
shall govern requirements relating to labor recruitment
practices: \21\
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\21\ Section 175(b) of the amended Compacts.
LThe agreements provide that in order to
safeguard the rights and welfare of citizens of the
Federated States of Micronesia and the Marshall Islands
seeking employment in the U.S. arranged by any
recruitment or other placement service, or pursuant to
a pre-arranged employment contract, the following
requirements shall apply to any recruiter or placement
service arranging or facilitating such employment in
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the U.S.:
LEvery recruiter must register with the
government of the Federated States of Micronesia or the
Marshall Islands.
LThe recruiter must, on a semiannual basis,
update its registration by reporting the names,
addresses and telephone numbers of all citizens of the
Federated States of Micronesia or the Marshall Islands
employed in the U.S. pursuant to employment arranged by
the recruiter and the names, addresses and telephone
numbers of all U.S. employers of the citizens, the fees
received in connection with placement services, and by
providing a statement as to whether the recruiter is
receiving or has received any U.S. Federal or state
government grant or funding in connection with the
recruitment of, training, or placement of any citizens
of the Federated States of Micronesia or the Marshall
Islands with U.S. employers.
LThe recruiter must, on a semiannual basis,
update its registration by attesting that:
Lit will comply with all applicable laws and
regulations of the U.S., and of the Federated States of
Micronesia and the Marshall Islands,
Lit has not entered into any arrangement
whereby the Federated States of Micronesia or Marshall
Islands citizen employee has signed a promissory note,
confession of judgment, or similar promise to pay
liquidated damages should the employee not fully
complete the terms of the recruitment or employment
contract, and has not entered into any other debt
arrangement with the employee as consideration for
being placed with the U.S. employer,
Lit has disclosed, and in the future will
disclose, to each Federated States of Micronesia or
Marshall Islands citizen recruited for employment in
the U.S. the terms and conditions of employment
including the duration of employment, the type of work,
the rate of pay, the number of hours and days of week
of employment, the amount of fees to be paid by the
employee to the recruiter and any other employment-
related fees or expenses, the taxes and related items
that will be deducted from pay, all estimated costs
that the employee will be reasonably expected to incur
in connection with the employment, whether the
employee's transportation expenses to and from the U.S.
will be paid by the recruiter, whether the citizen will
be provided room and board (and if so, what the cost,
if any, to the citizen will be), and whether job
training will be provided to the citizen,
Lit has disclosed, and in the future will
disclose, to any Federated States of Micronesia or
Marshall Islands citizen it proposes to recruit prior
to entering into any agreement that the citizen has a
right to change employers in the U.S. without any
adverse immigration consequences, that completion of
any recruitment contract shall not be a condition of
the citizen's right to remain in the U.S., that the
citizen may have rights when the employment is
terminated through no fault of the citizen at a time
earlier than that agreed to, that entry into any
liquidated damages or similar arrangement is forbidden,
that failure to complete the employment contract may
constitute breach of contract with certain legal
consequences including an action by the recruiter for
actual damages, and that the citizen may contact the
U.S. Department of Labor concerning his or her rights
and protections under U.S. law.
LThe agreements provide that the governments
of the Federated States of Micronesia and the Marshall
Islands agree to suspend the privilege of any recruiter
to recruit for a 1-year period if: 1) they determine
that such recruiter has materially failed to comply
with the terms and conditions of an agreement, 2) they
receive a report from the U.S. government that the
recruiter has recruited or placed a citizen of theirs
with a U.S. employer after being notified that the
employer has violated U.S. law regarding employment
standards, has engaged in a pattern of materially
violating the terms of employment contracts with their
citizens, has otherwise violated the rights of any
citizen reasonably related to such employment or has
otherwise engaged in violations of labor laws or safety
standards, 3) they determine that suspension is
otherwise appropriate, 4) the U.S. government requests
such suspension, or 5) the recruiter fails to register
as required. The governments also agree to revoke for a
minimum of 5 years the privileges of any recruiter if:
1) the recruiter knowingly files a materially false
registration, update, or attestation, or violates a 1-
year suspension order, 2) they determine it is
otherwise appropriate, or 3) the U.S. government
requests this action.
LThe governments of the Federated States of
Micronesia and the Marshall Islands agree to: 1)
conduct investigations as appropriate to determine if
recruiters have materially complied with the
agreements, 2) notify the U.S. government of
suspensions or revocations, 3) cooperate with the U.S.
government in any law enforcement action arising out of
employment of their citizens in the U.S., 4)
disseminate information about the agreement to their
citizens, and 5) share a copy of all required documents
and information with the U.S. government.
Finally, the amended Compacts clarify that the Immigration
and Nationality Act applies to any person admitted or seeking
admission to the U.S. under the Compacts, that nothing in the
Compacts precludes the applicability of any ground of
inadmissibility (other than the need for a labor certification
or a visa) or deportability, or the right of the U.S.
government to provide that admission as a nonimmigrant shall be
for such time and under such conditions as it by regulations
may prescribe, or the authority of the U.S. government
otherwise to administer and enforce the Immigration and
Nationality Act or other U.S. law.\22\
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\22\ Section 141(f) of the amended Compacts.
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Criminal Law/Law Enforcement Provisions
LThe U.S. will provide technical and training
assistance to the government of the Federated States of
Micronesia and the government of the Marshall Islands
to allow for the development and enforcement of their
laws as well as cooperation with the U.S. in
enforcement of U.S. laws. This section specifically
identifies training and equipment for postal inspection
of contraband as assistance to be provided by the
U.S.\23\
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\23\ Sections 102(a), 103(a) of H.J. Res. 63.
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LAny individual that:
1) Lserved as the United States negotiator of the
Compacts,
2) Lwas an employee of the Office in the State
Department that negotiated the Compacts, or
3) Lserved on the interagency group coordinating
United States policy on the Compacts negotiations.
Lis subject to the provisions of chapter 11 of title
18, U.S. Code, dealing with bribery, graft, and
conflicts of interest.\24\
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\24\ Section 107 of H.J. Res. 63.
LFor the purposes of the Foreign Agents
Registration Act of 1938, the Federated States of
Micronesia and the Marshall Islands shall be considered
countries. Any U.S. citizen or national acting as an
agent for the government of the Federated States of
Micronesia or the Marshall Islands without authority of
the U.S. is subject to the requirements and the
penalties of the Act that apply to the agent of a
foreign principal. However, U.S. citizens and nationals
are exempted from this provision if they are employed
by the Federated States of Micronesia or the Marshall
Islands and have been certified by the Federated States
of Micronesia or the Marshall Islands as being their
employees whose principal duties are other than those
specified in the Foreign Agents Registration Act. The
certifications received by the U.S. are to be filed
with the Attorney General and made publicly
available.\25\
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\25\ Section 152 of the amended Compacts.
LSeparate agreements, having the force of law,
effective simultaneously with the Compacts, will govern
mutual assistance in law enforcement matters between
the Federated States of Micronesia and the U.S. and
between the Marshall Islands and the U.S. The
extradition of fugitives and the transfer of prisoners
are specifically enumerated as law enforcement matters
governed by the agreements. In the U.S., U.S. law will
be applicable to fugitive extradition and prisoner
transfer matters.\26\
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\26\ Section 175(a) of the amended Compacts.
LThe Federated States of Micronesia and the
Marshall Islands shall not exercise criminal
jurisdiction over the U.S. government. Additionally,
the Federated States of Micronesia and the Marshall
Islands shall not exercise criminal jurisdiction over
any person, if the U.S. government notifies the
government of the Federated States of Micronesia or the
government of the Marshall Islands that such person was
acting on behalf of the U.S., for actions taken in
furtherance of providing assistance or services under
provisions of the Compacts or other provision of
law.\27\
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\27\ Section 179 of the amended Compacts.
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Claims, Courts and Administrative Law Provisions
LH.J. Res. 63 confers authority upon the
Comptroller General to conduct audits of grants and
other program assistance under the Compacts. It
provides him and his ``authorized representatives''
immunity from civil and criminal process ``relating to
words spoken or written and all acts performed by them
in their official capacity . . . , except insofar at
[it is] expressly waived by [the U.S. Government.]''
The text further specifies that such immunity is ``not
for the personal benefit of the individuals concerned[;
rather, it is intended] to safeguard the independent
exercise of their official functions.'' \28\
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\28\ Sections 102(b)(3), 103(k)(3) of H.J. Res. 63.
LH.J. Res. 63 enumerates miscellaneous
supplemental provisions pertaining to the Compacts.
These provisions essentially clarify that Federal
programs will operate on the same terms under the
Compacts as they do in the U.S. They also provide that
all U.S. government employees, including U.S. employees
based on contractual, cooperative, or similar agreement
working in the implementation and furtherance of the
Compacts, are covered by the settlement and payment of
tort claims provisions of the Compacts with the
exception of employees who are tasked under the
Security and Defense Relations title of the Compacts or
tasked under a subsidiary agreement to that title.\29\
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\29\ Section 105(f)(2) of H.J. Res. 63.
LH.J. Res. 63 provides that judgments of the
courts of the Federated States of Micronesia, the
Marshall Islands and Palau against the U.S. or its
officers shall not be recognized in U.S. courts unless
they are consistent with the U.S. government's
interpretation of relevant international agreements.
When determining that consistency, prior Executive
Branch assurances to Congress concerning the proper
interpretation of international agreements shall be
given proper consideration.\30\
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\30\ Section 105 (o)of H.J. Res. 63.
LArticle VI of H.J. Res. 63 addresses U.S.-
Federated States of Micronesia and U.S.-Marshall
Islands environmental protection matters. The three
governments will ``promote efforts to prevent or
eliminate damage to the environment and biosphere . . .
.'' The Article subsequently enumerates various Federal
environmental protection laws that will apply under the
Compacts.
L As part of the mandate set forth in Article VI, the
Federated States of Micronesia and the Marshall Islands
are empowered to seek judicial review of any
(environmental) administrative action taken by the U.S.
under the above provision. The review may be sought in
U.S. district court in Hawaii or the District of
Columbia. Decisions of these two courts may be appealed
to the 9th Circuit or the Court of Appeals for the
District of Columbia, respectively, as well as the
Supreme Court.\31\
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\31\ Sections 161, 162 of the amended Compacts.
LArticle VII of H.J. Res. 63 sets forth
certain general legal provisions regarding the
Compacts. It articulates the general principle that,
except as otherwise provided, the governments of the
U.S. and the Federated States of Micronesia and the
Marshall Islands will adopt and enforce measures ``as
may be necessary to protect the personnel, property,
installations, services, programs, and official
archives and documents maintained by the [three
governments].'' \32\
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\32\ Section 173 of the amended Compacts.
LIn general, the governments of the Federated
States of Micronesia and the Marshall Islands are
immune from the jurisdiction of U.S. courts and the
U.S. shall not be liable in Federated States of
Micronesia and Marshall Islands courts. Under this
section, the U.S. accepts responsibility for certain
claims decided in territorial courts before the
Compacts were created. For other claims not defined in
this section, the normal exceptions of the Foreign
Sovereign Immunities Act will apply.\33\
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\33\ Section 174 of the amended Compacts.
LThe Federated States of Micronesia and the
Marshall Islands governments ``confirm[] that final
[civil] judgments . . . rendered by any court of the
Trust Territory of the Pacific Islands shall continue
in full force and effect, subject to the constitutional
powers of [Federated States of Micronesia and Marshall
Islands courts] to grant relief from judgment in
appropriate cases.'' \34\
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\34\ Section 176 of the amended Compacts.
LH.J. Res 63 reiterates the agreement in the
earlier Compacts concerning compensation by the U.S. of
Federated States of Micronesia and Marshall Islands
citizens for damages caused by nuclear testing in the
Federated States of Micronesia or the Marshall Islands
and acknowledges that these amendments to the Compacts
in no way change that agreement.\35\
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\35\ Section 177 of the amended Compacts.
LThe affected Federal agencies are authorized
to settle and pay tort claims arising from acts or
omissions of their employees within the Federated
States of Micronesia and the Marshall Islands in
accordance with other provisions in H.J. Res. 63.\36\
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\36\ Section 178 of the amended Compacts.
LArticle II of H.J. Res. 63 addresses the
matter of economic relations between the U.S. and the
Federated States of Micronesia and the Marshall
Islands. Article I, section 211, imposes the duty of
the U.S. government to ``provide assistance on a sector
grant basis for [20 years to the Federated States of
Micronesia and the Marshall Islands] . . . to promote
the economic advancement, budgetary self-reliance, and
economic self-sufficiency of its people. . . .''
Section 211 also enumerates miscellaneous programs or
projects that will benefit from such funding (such as
education, private sector development, and health).
L Approval of the Compacts constitutes a pledge by
the U.S. that ``the sums and amounts specified in
section 211 . . . shall be appropriated and paid [to
the Federated States of Micronesia and the Marshall
Islands under the terms of the Compacts.]'' This
language may give rise to claims against the U.S. if
such amounts are not appropriated.\37\
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\37\ Section 233 of the amended Compacts.
LThe U.S. government may not include the
Federated States of Micronesia government or the
Marshall Islands government ``as a named party to a
formal declaration of war. . . .'' in the absence of
Federated States of Micronesia or Marshall Islands
consent. At the same time, and absent such consent, the
Compacts will not prejudice any Federated States of
Micronesia or Marshall Islands claims advanced by its
citizens that ``arise out of armed conflict subsequent
to November 3, 1986.'' Under these terms, Federated
States of Micronesia and Marshall Islands citizens
would be permitted to petition the U.S. for redress or
submit claims against a third-party country, national,
or entity.\38\
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\38\ Section 353 of the amended Compacts.
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Hearings
No hearings were held on H.J. Res. 63 in the Committee on
the Judiciary.
Committee Consideration
On September 10, 2003, the Committee met in open session
and ordered favorably reported the resolution H.J. Res. 63, as
amended, by a voice vote, a quorum being present. The amendment
consisted of the text of the bill as reported by the Committee
on International Relations.
Vote of the Committee
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the committee notes that there
were no recorded votes during its consideration of H.J. Res.
63.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of Rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives is inapplicable because the provisions of this
legislation within the jurisdiction of the Committee on the
Judiciary do not provide new budgetary authority or increased
tax expenditures.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the resolution, H.J. Res. 63, the following estimate
and comparison prepared by the Director of the Congressional
Budget Office under section 402 of the Congressional Budget Act
of 1974:
September 15, 2003.
Hon. F. James Sensenbrenner Jr.,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed estimate for H.J. Res. 63, the Compact of
Free Association Amendments Act of 2003,
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Douglas Holtz-Eakin.
Enclosure.
H.J. Res. 63--Compact of Free Association Amendments Act of 2003
Summary: H.J. Res. 63 would amend the Compact of Free
Association of 1988 and subsidiary agreements between the
United States and the Republic of Marshall Islands (RMI) and
the Federated States of Micronesia (FSM). The compacts with RMI
and FSM, together with the subsidiary agreements, govern the
political, economic, and military relationship between the
United States and these two freely associated states. Although
the compact does not expire, certain provisions that authorized
federal funding for RMI and FSM expired in 2001. The compact
provides that expired provisions be extended until 2003 if
negotiations to renew the compact had not concluded by 2001.
H.J. Res. 63 would provide financial assistance for RMI and
FSM for the next 20 years. The joint resolution would make
several changes to the compact to increase monitoring of
financial assistance, create a joint oversight committee, and
establish trust funds to provide funds to RMI and FSM beyond
2023. The legislation also would provide $15 million a year for
costs related to the migration of RMI and FSM nationals to
other jurisdictions.
Consistent with the baseline construction rules in the
Balanced Budget and Emergency Deficit Control Act, CBO's
baseline assumes that direct spending for grants to the RMI and
FSM will continue over the 2004-2013 period--beyond the
scheduled expiration date--at an average annual cost of $157
million a year. We estimate that enacting this legislation
would increase direct spending by around $21 million a year
above the amounts assumed in our baseline projections. Thus,
CBO estimates that enacting H.J. Res. 63 would increase direct
spending by $205 million over the 2004-2013 period.
In addition, the resolution would extend the authority to
provide certain federal services for RMI and FSM for the next
20 years. CBO estimates that continuing those federal
serviceswould cost $640 million over the 2004-2013 period, subject to
appropriation of the necessary amounts.
H.J. Res. 63 contains an intergovernmental mandate as
defined in the Unfunded Mandates Reform Act (UMRA), but
relative to current law, that mandate would impose no costs on
state, local, or tribal governments. The resolution contains no
private-sector mandates as defined in UMRA.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.J. Res. 63 is shown in the following
table. The costs of this legislation fall within budget
function 800 (general government).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
----------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Baseline spending for Compact of Free
Association under current law:
Estimated budget authority............ 156 156 156 156 156 156 158 158 158 158
Estimated budget authority............ 156 156 156 156 156 156 158 158 158 158
Proposed changes:
Estimated budget authority............ 11 13 15 18 20 22 23 25 28 30
Estimated outlays..................... 11 13 15 18 20 22 23 25 28 30
Spending for Compact of Free Association
under H.J. Res. 63:
Estimated budget authority............ 167 169 171 174 176 178 181 183 186 188
Estimated outlays..................... 167 169 171 174 176 178 181 183 186 188
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Federal program services for RMI and FSM:
Estimated authorization level......... 60 61 62 64 65 66 68 69 70 72
Estimated outlays..................... 45 61 62 63 65 66 67 69 70 71
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the start of fiscal year 2004
and that outlays will occur at the historical rate for grants
to the RMI and FSM.
Direct spending
H.J. Res. 63 would authorize and appropriate federal funds
for economic assistance to RMI and FSM over the 2004-2003
period. Grant assistance would be aimed at needs for education,
health, infrastructure, private-sector development, and the
environment. In addition, the resolution would establish trust
funds for RMI and FSM involving annual contributions for 20
years by RMI, FSM, and the federal government. Those trust
funds are aimed at providing funds to RMI and FSM after federal
grant assistance expires under the bill in 2023.
CBO estimates that direct spending authorized by this
legislation would total $1.8 billion over the 2004-2013 period.
However, consistent with the Balanced Budget and Emergency
Deficit Control Act, which specifies that certain expiring
provisions should be assumed to continue for budget projection
purposes, CBO's baseline includes budget authority and outlays
for payments to RMI and FSM totaling $1.6 billion over the
2004-2013 period. Thus, we estimate that H.J. Res. 63 would
provide an increase in direct spending of $205 million above
the baseline over the 2004-2013 period. The following
paragraphs discuss the financial assistance that would be
provided by this legislation.
Republic of the Marshall Islands. Over the 2004-2013
period, H.J. Res. 63 would provide RMI with grants of $356
million, $99 million in trust fund contributions, $160 million
for U.S. defense operations on the Kwajalein Atoll, and $20
million to compensate the Kwajalein landholders and RMI for the
use of its territory by the U.S. military.
Federated States of Micronesia. Over the 2004-2013 period,
H.J. Res. 63 would provide FSM with grants of $793 million and
$195 million in trust fund contributions.
General Assistance. In addition, the legislation would
provide $15 million a year for health, education, social, and
infrastructure costs associated with the migration of RMI and
FSM nationals to other jurisdictions. The jurisdictions that
would likely receive these funds include Hawaii, Guam, American
Samoa, and the Commonwealth of the Northern Mariana Islands.
CBO estimates that general assistance would cost $150 million
over the 2004-2013 period.
H.J. Res. 63 would also continue to make available services
currently provided by the U.S. Postal Service (USPS) and
Federal Deposit Insurance Corporation (FDIC). Spending by these
agencies is generally not subject to the annual appropriations
process. Based on information from the Office of Insular
Affairs, CBO expects that mail service to RMI and FSM costs
USPS approximately $1 million annually; this cost is reimbursed
by the Department of the Interior, subject to the availability
of appropriations. In addition, CBO expects costs to the FDIC
for continuing to insure deposits in the Bank of the
FederatedStates of Micronesia would be offset by fees assessed on the
industry, resulting in no net cost to the federal government.
Spending subject to appropriation
H.J. Res. 63 also would specifically extend the authority
to continue services provided to RMI and FSM by the National
Weather Service, the Federal Aviation Administration, the
Departments of Transportation and Homeland Security, and the
Agency for International Development. Based on information from
the Departments of State and the Interior, and the General
Accounting Office (GAO), CBO estimates that continuing those
programs for RMI and FSM would cost approximately $10 million
annually, assuming the appropriation of the necessary amounts.
Other federal agencies currently providing programs and
services to RMI and FSM include the Departments of Labor,
Education, Agriculture, and Health and Human Services. Most of
this assistance is provided through those agencies' annual
appropriations. Based on information from GAO and the
Departments of State and the Interior, CBO estimates that these
other programs and services for FMI and FSM currently cost
about $50 million a year. Section 109 authorizes appropriations
to continue federal services and programs to RMI and FSM, so
these costs are included in this cost estimate.
Estimated impact on state, local, and tribal governments:
H.J. Res. 63 contains an intergovernmental mandate as defined
in UMRA because it would explicitly prohibit states from taxing
revenue generated by the trust funds established in the bill
and from treating the funds as anything other than a nonprofit
corporation. Since the trust funds to not currently exist, this
provision would not affect state budgets relative to current
law and the threshold established in UMRA ($59 million in 2003,
adjusted for inflation) would not be exceeded.
If H.J. Res. 63 were enacted, affected jurisdictions,
including Hawaii, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, would continue to incur costs for
services to migrants; however, such costs are not the result of
enforceable duties imposed by the federal government. The joint
resolution would authorize $15 million per year to offset these
impacts, but data from the jurisdictions and GAO suggest the
cost may be substantially higher.
Estimated impact on the private sector: H.J. Res. 63
contains no private-sector mandates as defined in UMRA.
Previous CBO estimate: On September 15, 2003, CBO
transmitted a revised cost estimate of H.J. Res. 63, as
reported by the House Committee on International Relations on
September 4, 2003. On September 15, 2003, we transmitted a cost
estimate for H.J. Res. 63, as ordered reported by the House
Committee on Resources on September 4, 2003. All versions of
this legislation would amend the Compact of Free Association.
The House Committee on the Judiciary and the House Committee on
International Relations versions of the legislation are
similar, and our cost estimates are identical. However, the
House Committee on Resources version would appropriate and
authorize different amounts. Our estimates for the two
different versions reflect those differences.
Estimate prepared by: Federal Costs: Matthew Pickford.
Impact on State, Local, and Tribal Governments: Sarah Puro.
Impact on the Private Sector: Paige Piper/Bach.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
The provisions of H.J. Res. 63 within the jurisdiction of
the Committee on the Judiciary do not authorize funding.
Therefore, clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives is inapplicable.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds authority for
this legislation in article 1, section 8, and article 3,
section 1, of the Constitution.
Section-by-Section Analysis and Discussion
The following is a section by section analysis of the
provisions of H.J. Res. 63 that fall within the jurisdiction of
the Committee on the Judiciary. For a discussion of other
sections, please refer to the report of the Committee on
International Relations, H. Rept. No. 108-262, part I.
Section 102
Section 102(a) of H.J. Res. 63 provides that the U.S. will
provide technical and training assistance to the government of
the Federated States of Micronesia (``FSM'') to allow for the
development and enforcement of its laws as well as cooperation
with the U.S. in enforcement of U.S. laws. This section
specifically identifies training and equipment for postal
inspection of contraband as assistance to be provided by the
U.S.
Section 102(b) confers authority upon the Comptroller
General to conduct audits of grants and other program
assistance under the U.S.-FSM Compact. Paragraph (3) provides
him and his ``authorized representatives'' immunity from civil
and criminal process ``relating to words spoken or written and
all acts performed by them in their official capacity . . . ,
except insofar at [it is] expressly waived by [the U.S.
Government.]'' The text further specifies that such immunity is
``not for the personal benefit of the individuals concerned [;
rather, it is intended] to safeguard the independent exercise
of their official functions.''
Section 103
Section 103(a) of H.J. Res. 63 provides that the U.S. will
provide technical and training assistance to the government of
the Republic of the Marshall Islands (``RMI'') to allow for the
development and enforcement of its laws as well as cooperation
with the U.S. in enforcement of U.S. laws. This section
specifically identifies training and equipment for postal
inspection of contraband as assistance to be provided by the
U.S.
Section 103(k) confers section confers identical authority
upon the Comptroller General to discharge his duties regarding
the U.S.-RMI Compact as section 102(b) provides regarding the
U.S.-FSM Compact.
Section 104
Section 104(b)(1) of H.J. Res. 63 provides that the rights
of a bona fide naturalized citizen of the FSM or the RMI to
enter the U.S., to lawfully engage therein in occupations, and
to establish residence therein as a nonimmigrant, to the extent
such rights are provided under section 141 of the Compacts,
shall not be deemed to extend to any such naturalized citizen
with respect to whom circumstances associated with the
acquisition of such status of a naturalized citizen are such as
to allow a reasonable inference, on the part of appropriate
officials of the U.S. and subject to U.S. procedural
requirements, that such naturalized status was acquired
primarily in order to obtain such rights.
Section 104(b)(2) provides that up to $250,000 of the grant
assistance provided to the FSM and to the RMI pursuant to
section 211(a)(4) of the Compacts (or a greater amount of the
grant, if mutually agreed between the U.S. government and the
governments of the FSM and the RMI), shall be used for the
purpose of increasing the machine-readability and security of
passports issued by the two nations. Such funds must 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
governments of the FSM and the RMI. The U.S. government is
authorized to require that passports used for the purpose of
seeking admission under section 141 of the Compacts contain the
security enhancements funded by such assistance.
Section 104(b)(3) provides that as a condition of
assistance under the Compacts, the governments of the FSM and
the RMI shall develop, prior to October 1, 2004, the capability
to provide reliable and timely information as may reasonably be
required by the U.S. government in enforcing criminal and
security-related grounds of inadmissibility and deportability
under the Immigration and Nationality Act (``INA''), and shall
provide such information to the U.S. government.
Section 104(b)(4) provides that the words ``the effective
date of this Compact, as amended'' in sections 141(a)(3)-(4) of
the Compacts shall be construed to read, ``on the day prior to
the enactment by the U.S. Congress of the Amended Compact
Act.''
Section 105
Section 105 of H.J. Res. 63 enumerates miscellaneous
supplemental provisions pertaining to the Compacts. These
provisions essentially clarify that Federal programs will
operate on the same terms under the Compacts as they do in the
U.S. Section 105(f)(2) provides that all U.S. government
employees including U.S. employees based on contractual,
cooperative, or similar agreement working in the implementation
and furtherance of the compact are covered by the settlement
and payment of tort claims provisions of the Compacts with the
exception of employees who are tasked under the Security and
Defense Relations title of the Compacts or tasked under a
subsidiary agreement to that title.
Section 105(o) provides that judgments of the courts of the
FSM, the RMI, and Palau against the U.S. or its officers shall
not be recognized in U.S. courts unless they are consistent
with the U.S. government's interpretation of relevant
international agreements. When determining that consistency,
prior Executive Branch assurances to Congress concerning the
proper interpretation of international agreements shall be
given proper consideration.
Section 107
Section 107 of H.J. Res. 63 provides that any individual
who: 1) served as the U.S. negotiator of the Compacts, 2) was
an employee of the Office in the State Department that
negotiated the Compacts, or 3) served on the interagency group
coordinating U.S. policy on the Compacts negotiations, are
subject to the provisions of chapter 11 of title 18, U.S. Code,
dealing with bribery, graft, and conflicts of interest.
Section 201
Section 201 of H.J. Res. 63 sets forth the test of the two
amended Compacts which are identical. The rest of this
discussion refers to the section numbers of the two Compacts as
included in section 201 of H.J. Res. 63.
Section 141
Section 141(a) of the amended Compacts (as contained in
H.J. Res. 63) provides that in furtherance of the special and
unique relationship that exists between the U.S. and the FSM
and the RMI under the amended Compacts, any person in the
following categories may be admitted to lawfully engage in
occupations and establish residence as a nonimmigrant in the
U.S. and its territories and possessions without regard to
paragraphs (5)(dealing with labor certifications) and
(7)(B)(i)(II)(dealing with visa requirements) of the INA:
La person who, on November 2, 1986, was a
citizen of the Trust Territory of the Pacific Islands
and has become and remains a citizen of the FSM or the
RMI,
La person who acquires the citizenship of the
FSM or the RMI at birth, on or after the effective date
of the Constitution of the FSM or the RMI,
respectively,
Lan immediate relative of a person referred to
in the above two bullet points, provided that such
immediate relative is a naturalized citizen of the FSM
or the RMI who has been an actual resident there for
not less than 5 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 the above two bullet points for at least
5 years, and further provided, that the U.S. government
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 the amended Compacts,
La naturalized citizen of the FSM or the RMI
who was an actual resident there for not less than 5
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
FSM or the RMI to the U.S. government no later than the
effective date of the amended Compacts, in form and
content acceptable to the U.S. government, provided
that the U.S. government 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 the
amended Compacts, or
Lan immediate relative of a citizen of the FSM
or the RMI, regardless of the immediate relative's
country of citizenship or period of residence in the
FSM or the RMI, if the citizen of the FSM or the RMI is
serving on active duty in any branch of the U.S. Armed
Forces or in the active reserves.
Section 141(b) provides that a person who is coming to the
U.S. pursuant to an adoption outside the U.S., or for the
purpose of adoption in the U.S., is ineligible for admission
under the Compacts (as originally enacted and as amended). This
subsection shall apply to any person who is or was an applicant
for admission to the U.S. on or after March 1, 2003, including
any applicant for admission in removal proceedings on or after
that date, regardless of the date such proceedings were
commenced. This subsection shall have no effect on the ability
of the U.S. government or any U.S. 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.
Subsection 141(c) provides that no person who has been or
is granted citizenship in the FSM or the RMI, or has been or is
issued a FSM or RMI passport pursuant to any investment,
passport sale, or similar program has been or shall be eligible
for admission to the U.S. under the Compacts (as originally
enacted or as amended).
Subsection 141(d) provides that a person admitted to the
U.S. under the Compacts (as originally enacted or as amended)
shall be considered to have the permission of the the U.S.
government to accept employment in the U.S. An unexpired FSM or
RMI passport with unexpired documentation issued by the U.S.
government evidencing admission under the Compacts (as
originally enacted or as amended) shall be considered to be
documentation establishing identity and employment
authorization under section 274A(b)(1)(B) of the INA. The U.S.
government will take reasonable and appropriate steps to
implement and publicize this provision, and the governments of
the FSM and the RMI will also take reasonable and appropriate
steps to publicize the provision.
Section 141(e) contains definitions of ``residence,''
``actual residence,'' ``certificate of actual residence,''
``nonimmigrant'' and ``immediate relative'' for purposes of the
Compacts (as originally enacted and as amended).
Section 141(f) provides that the INA shall apply to any
person admitted or seeking admission to the U.S. (other than a
U.S. possession or territory where the INA does not apply)
under the Compacts (as originally enacted or as amended), and
nothing in the Compacts (as originally enacted or as amended)
shall be construed to limit, preclude, or modify the
applicability of, with respect to such person:
Lany ground of inadmissibility or
deportability under the INA (except for those found at
sections 212(a)(5) and 212(a)(7)(B)(i)(II) of the INA),
and any defense thereto, provided that, section
237(a)(5) of the INA 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 U.S., is deportable,''
Lthe authority of the U.S. government under
section 214(a)(1) of the INA to provide that admission
as a nonimmigrant shall be for such time and under such
conditions as the U.S. government may by regulations
prescribe,
Lthe provisions of section 274A of the INA
(except as modified by subsection 141(d)),
Lthe provisions of section 643 of the Illegal
Immigration Reform and Immigrant Responsibility Act of
1996 (regarding habitual residence regulations), and
actions taken pursuant to it, or
Lthe U.S. government's authority otherwise to
administer and enforce the INA or other U.S. law.
Section 141(g) provides that any authority possessed by the
U.S. government under section 141 of the Compacts (as
originally enacted or as amended) may also be exercised by the
government of a territory or possession of the U.S. where the
INA does not apply, to the extent such authority is lawful
under a statute or regulation of such territory or possession
that is authorized by U.S. law.
Subsection 141(h) provides that section 141 does not confer
on a citizen of the FSM or the RMI the right to establish the
residence necessary for naturalization under the INA or to
petition for benefits for alien relatives under the INA.
Section 141, however, shall not prevent a citizen of the FSM or
the RMI from otherwise acquiring such rights or lawful
permanent resident alien status in the U.S.
Section 143
Section 143 of the amended Compacts provides that any
person who relinquishes, or otherwise loses, his U.S.
nationality or citizenship, or his FSM or RMI citizenship,
shall be ineligible to receive the privileges set forth in
sections 141 and 142. Any such person may apply for admission
to the U.S. or the FSM or the RMI, as the case may be, in
accordance with any other applicable laws of the U.S. or the
FSM or the RMI relating to immigration of aliens from other
countries. The law of the FSM, the RMI, or the U.S., as the
case may be, shall dictate the terms and conditions of any such
person's stay.
Section 152
Section 152(a) of the amended Compacts provides that for
the purposes of the Foreign Agents Registration Act of 1938,
the FSM and the RMI shall be considered countries. Any U.S.
citizen or national acting as an agent for the government of
the FSM or the RMI, without authority of the U.S., is subject
to the requirements and the penalties of the Act that apply to
the agent of a foreign principal.
Section 152(b) exempts from the provisions of subsection
(a) U.S. citizens and nationals employed by the FSM or the RMI
that have been certified by the FSM or the RMI as being
employees of the FSM or the RMI whose principal duties are
other than those specified in the Foreign Agents Registration
Act. The certifications received by the U.S. are to be filed
with the Attorney General and made publically available.
Section 162
Article VI of H.J. Res. 63 addresses environmental
protection matters. Section 161 of the amended Compacts states
that the governments of the U.S., the FSM and the RMI will
``promote efforts to prevent or eliminate damage to the
environment and biosphere . . . .'' Section 161 subsequently
enumerates various Federal environmental protection laws that
will apply under the Compacts.
As part of the mandate set forth in Article VI, section 162
empowers the FSM and the RMI to seek judicial review of any
(environmental) administrative action taken by the U.S. under
section 161. The review may be sought in U.S. district court in
Hawaii or the District of Columbia. Decisions of these two
courts may be appealed to the 9th Circuit or the Court of
Appeals for the District of Columbia, respectively, as well as
the Supreme Court.
Section 172
Section 172(a) of the amended Compacts provides that every
citizen of the FSM or the RMI who is not a resident of the U.S.
shall enjoy the rights and remedies under the laws of the U.S.
enjoyed by any non-resident alien.
Section 173
Article VII of H.J. Res. 63 sets forth certain general
legal provisions regarding the Compacts. Section 173 of the
amended Compacts articulates the general principle that, except
as otherwise provided, the governments of the U.S., the FSM and
the RMI will adopt and enforce measures ``as may be necessary
to protect the personnel, property, installations, services,
programs, and official archives and documents maintained by the
[three governments].''
Section 174
Section 174 of the amended Compacts provides that, in
general, the governments of the FSM and the RMI are immune from
the jurisdiction of U.S. courts and the U.S. shall not be
liable in FSM or RMI courts. Under this section, the U.S.
accepts responsibility for certain claims decided in
territorial courts before the Compacts were created. For other
claims not defined in this section, the normal exceptions of
the Foreign Sovereign Immunities Act will apply.
Section 175
Section 175(a) of the amended Compacts provides that
separate agreements, having the force of law, effective
simultaneously with the Compacts, will govern mutual assistance
in law enforcement matters between the FSM and the RMI and the
U.S. The extradition of fugitives and the transfer of prisoners
are specifically enumerated as law enforcement matters governed
by the agreement. In the U.S., U.S. law will be applicable to
fugitive extradition and prisoner transfer matters.
Section 175(b) provides that separate agreements, which
shall come into effect simultaneously with the amended
Compacts, and shall have the force of law, shall govern
requirements relating to labor recruitment practices, including
registration, reporting, suspension or revocation or
authorization to recruit persons for employment in the U.S.,
and enforcement for violations of such requirements. The
separate agreements are summarized in the background section of
this report.
Section 176
Section 176 of the amended Compacts states that the FSM and
RMI governments ``confirm[] that final [civil] judgments . . .
rendered by any court of the Trust Territory of the Pacific
Islands shall continue in full force and effect, subject to the
constitutional powers of [FSM and RMI courts] to grant relief
from judgment in appropriate cases.''
Section 177
Section 177 of the amended Compacts reiterates the
agreement in the earlier Compacts concerning compensation by
the U.S. of FSM and RMI citizens for damages caused by nuclear
testing in the FSM and the RMI and acknowledges these
amendments to the Compacts in no way change that agreement.
Section 178
Section 178 of the amended Compacts authorizes the affected
Federal agencies to settle and pay tort claims arising from
acts or omissions of their employees within the FSM and the RMI
in accordance with other provisions in H.J. Res. 63.
Section 179
Section 179(a) of the amended Compacts provides that the
FSM and the RMI shall not exercise criminal jurisdiction over
the U.S. government.
Section 179(b) provides that the FSM and the RMI shall not
exercise criminal jurisdiction over any person, if the U.S.
government notifies the government of the FSM or the RMI that
such person was acting on behalf of the U.S., for actions taken
in furtherance of providing assistance or services under
provisions of the Compact or other provision of law.
Section 233
Article II of H.J. Res. 63 addresses the matter of economic
relations between the U.S. and the FSM and the RMI. Section 211
of the amended Compacts imposes the duty on the U.S. government
to ``provide assistance on a sector grant basis for [20 years
to the FSM and the RMI] . . . to promote the economic
advancement, budgetary self-reliance, and economic self-
sufficiency of its people. . . .'' Section 211 also enumerates
miscellaneous programs or projects that will benefit from such
funding (such as education, private sector development, and
health).
Section 233 states that approval of the Compacts
constitutes a pledge by the U.S. that ``the sums and amounts
specified in section 211 . . . shall be appropriated and paid
[to the FSM and the RMI under the terms of the Compacts.]''
This language may give rise to claims against the U.S. if such
amounts are not appropriated.
Section 353
Section 353 of the amended Compacts states that the U.S.
government may not include the FSM or RMI governments ``as . .
. named part[ies] to a formal declaration of war. . . .'' in
the absence of FSM or RMI consent. At the same time, and absent
such consent, the Compacts will not prejudice any FSM or RMI
claims advanced by its citizens that ``arise out of armed
conflict subsequent to November 3, 1986.'' Under these terms,
FSM and RMI citizens would be permitted to petition the U.S.
for redress or submit claims against a third-party country,
national, or entity.
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 italic, existing law in which no change is
proposed is shown in roman):
SECTION 605 OF THE TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS ACT,
2002
(Public Law 107-67)
Sec. 605. Unless otherwise specified during the current
fiscal year, no part of any appropriation contained in this or
any other Act shall be used to pay the compensation of any
officer or employee of the Government of the United States
(including any agency the majority of the stock of which is
owned by the Government of the United States) whose post of
duty is in the continental United States unless such person:
(1) is a citizen of the United States; (2) is a person in the
service of the United States on the date of the enactment of
this Act who, being eligible for citizenship, has filed a
declaration of intention to become a citizen of the United
States prior to such date and is actually residing in the
United States; (3) is a person who owes allegiance to the
United States; (4) is an alien from Cuba, Poland, South
Vietnam, the countries of the former Soviet Union, or the
Baltic countries lawfully admitted to the United States for
permanent residence; (5) is a South Vietnamese, Cambodian, or
Laotian refugee paroled in the United States after January 1,
1975; or (6) is a national of the People's Republic of China
who qualifies for adjustment of status pursuant to the Chinese
Student Protection Act of 1992: Provided, That for the purpose
of this section, an affidavit signed by any such person shall
be considered prima facie evidence that the requirements of
this section with respect to his or her status have been
complied with: Provided further, That any person making a false
affidavit shall be guilty of a felony, and, upon conviction,
shall be fined no more than $4,000 or imprisoned for not more
than 1 year, or both: Provided further, That the above penal
clause shall be in addition to, and not in substitution for,
any other provisions of existing law: Provided further, That
any payment made to any officer or employee contrary to the
provisions of this section shall be recoverable in action by
the Federal Government. This section shall not apply to
citizens of Ireland, Israel, [or the Republic of the
Philippines,] the Republic of the Philippines, the Federated
States of Micronesia, the Republic of the Marshall Islands, or
the Republic of Palau, or to nationals of those countries
allied with the United States in a current defense effort, or
to international broadcasters employed by the United States
Information Agency, or to temporary employment of translators,
or to temporary employment in the field service (not to exceed
60 days) as a result of emergencies.
Markup Transcript
BUSINESS MEETING
WEDNESDAY, SEPTEMBER 10, 2003
House of Representatives,
Committee on the Judiciary,
Washington, DC.
The Committee met, pursuant to notice, at 10:07 a.m., in
Room 2141, Rayburn House Office Building, Hon. F. James
Sensenbrenner, Jr. [Chairman of the Committee] presiding.
[Intervening business.]
Chairman Sensenbrenner. Pursuant to notice, I now call up
H. Joint Resolution 63, the ``Compact of Free Association
Amendments Act of 2003,'' for purposes of markup and move its
favorable recommendation to the House. Without objection, the
joint resolution will be considered as read and open for
amendment at any point, and the text as reported by the
Committee on International Relations, which the Members have
before them, will be considered as read and considered as the
original text for purposes of amendment and open for amendment
at any point.
The Chair recognizes himself for 5 minutes to explain the
joint resolution.
Today, we are marking up H. Joint Res. 63, which amends the
Compacts of Free Association between the United States and the
Federated States of Micronesia and the Republic of the Marshall
Islands. This Committee received a sequential referral to
consider provisions of H. Joint Res. 63 under our jurisdiction
after this legislation was reported by both the International
Relations and Resources Committee. The referral expires on
September 15th.
The Compacts agreed to in the 1980s provide that the United
States will support the island nations economically and that we
can establish by agreement military bases in their territories
and foreclose access to the nations by military personnel of
third countries.
The Compacts grant the citizens of the Federated States of
Micronesia and the Republic of the Marshall Island the right to
enter the U.S. without passports or visas as non-immigrants and
work lawfully. In recent years, the U.S. Government has
expressed a number of concerns regarding the immigration
provisions.
First, the ability of aliens claiming to be citizens of the
two nations to enter into the U.S. without having to have
passports is an open invitation to abuse by terrorists. In
addition, the Government of the Marshall Islands has in the
past been found to have sold passports.
Second, some Americans have taken advantage of the ability
of islanders to enter the U.S. to bring in adopted children
without having met the requirements of the Immigration and
Nationality Act regarding foreign adoptions, requirements that
are designated to safeguard the interests of the adopted
children and their biological parents.
Finally, labor recruiters who arrange jobs in the United
States for islanders have been abusing these unsophisticated
workers, such as by not revealing the real nature of the jobs
to be performed and charging prohibitive liquidated damages
should the workers leave employment prematurely.
The State Department utilized the looming expiration of the
economic assistance provisions of the Compacts to persuade the
nations to agree to needed modifications to the Compacts to
address these immigration concerns and other matters. The
modifications are continued in H. Joint Resolution 63.
In order to address the security concerns, a number of
changes have been made, including barring entry to the U.S.
under the Compacts of persons who were sold passports, limiting
those naturalized citizens who can enter the U.S. pursuant to
the Compacts, and requiring passports for entry into the U.S.
As to adoptions, any child who is coming to the U.S.
pursuant to an adoption outside the country or for purposes of
adoption in the U.S. is ineligible for admission as a non-
immigrant under the Compacts. The child must be brought to the
U.S. pursuant to the applicable provisions of the Immigration
and Nationality Act.
Separate agreements which shall come into effect
simultaneously with the Compacts shall incorporate minimum
obligations that labor recruiters will have to meet in order to
protect Micronesians and Marshall Islanders who are recruited
for work in the U.S.
H. Joint Res. 63 also includes a number of provisions
within the claims courts and criminal justice and
administrative law jurisdiction of the Committee. For instance,
authority is given to the Comptroller General to conduct audits
of assistance given to the two nations. The Compacts are
amended to provide that the governments of the nations are
immune from the jurisdiction of the U.S. courts, and the U.S.
shall not be liable in their courts, and Federal agencies are
authorized to settle and pay tort claims deriving from acts or
omissions of their employees within the two nations.
As to criminal law jurisdiction, provisions of the amended
Compacts allow the United States to provide technical and
training assistance to the government of the two nations. This
assistance will facilitate the development and enforcement of
their respective laws and allow for cooperation with the U.S.
and the enforcement of U.S. laws.
The postal inspection of contraband, extradition of
fugitives, and transfer of prisoners are among the mutual
assistance and law enforcement matters addressed by the
Compact. These issues are important not only in addressing the
reality of the increased transnational nature of general crime,
but are vitally important when confronting the issue of global
terrorism. The joint resolution contains numerous beneficial
changes to the Compacts of Free Association, and I urge my
colleagues to support this legislation.
The gentleman from Michigan, Mr. Conyers.
Mr. Conyers. Mr. Chairman, I concur with you, and I have a
statement I'd like included in the hearing at this point.
Chairman Sensenbrenner. Without objection, Mr. Conyers'
statement will be included.
[The prepared statement of Mr. Conyers follows:]
Prepared Statement of the Honorable John Conyers, Jr., a Representative
in Congress From the State of Michigan, and Ranking Member, Committee
on the Judiciary
H.J. Res. 63, The Compact of Free Association with the Republic of
Marshall Islands and the Federated States of Micronesia, is a non-
controversial bill. The Judiciary committee has been referred the
immigration provisions of this bill.
In the 1980s the U.S. Government and the governments of the
Marshall Islands and Micronesia approved separate compacts to make the
Marshall Islands and Micronesia independent nations in free association
with the U.S. Among other things, the Compacts provide that the
Citizens of the Freely Associated States have the right to reside and
work in the United States and its territories as lawful non-immigrants
or habitual residents and are eligible to volunteer for service in the
United States armed forces.
H.J. Res. 63 is a joint resolution that amends the Compacts to
place new restrictions on the admission of certain naturalized citizens
of the Marshall Islands and Micronesia by requiring that the
naturalized citizen has been a resident of the free associated state
for at least 5 years. H.J. Res. 63 also prevents those who have been
issued a Micronesia or Marshall Islands passport pursuant to any
investment, passport sale, or similar program to enter the U.S. under
the Compact
Additionally, this bill authorizes the US government to require
that passports used for the purpose of seeking admission under the
Compacts contain certain security enhancement funded by the U.S. And
provides that any child who is coming to the United States pursuant to
a foreign adoption or for the purpose of being adopted in the United
States must meet the applicable provisions of the Immigration and
Nationality Act.
H.J. Res. 63 has been approved by the International Relations
Committee and has also been referred to the Resources Committee.
Chairman Sensenbrenner. And without objection, all Members'
opening statements will be included.
Are there any amendments? If there are no amendments, a
reporting quorum is present. The question occurs on the motion
to report House Joint Resolution 63 favorably. All in favor
will say aye? Opposed, no?
The ayes appear to have it. The ayes have it; the motion to
report favorably is agreed to.
Without objection, the Chairman is authorized to move to go
to conference pursuant to House Rules. Without objection, the
staff is directed to make any technical and conforming changes.
And all Members will be given 2 days as provided by House Rules
in which to submit additional, dissenting, supplemental, or
minority views.