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48 USC CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND

PALAU 01/06/03

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TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

-HEAD-

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

-MISC1-

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

Sec.

1901. Approval of Compact of Free Association.

(a) Federated States of Micronesia.

(b) Marshall Islands.

(c) Reference to Compact.

(d) Amendment, change, or termination in Compact

and certain agreements.

(e) Subsidiary agreements deemed bilateral.

(f) Effective date.

1902. Agreements with Federated States of Micronesia.

(a) Law enforcement assistance.

(b) Economic development plans review process.

(c) Agreement on audits.

1903. Agreements with and other provisions related to

Marshall Islands.

(a) Law enforcement assistance.

(b) Economic development plans review process.

(c) Ejit.

(d) Kwajalein payments.

(e) Section 177 Agreement.

(f) Nuclear test effects.

(g) Espousal provisions.

(h) DOE radiological health care program; USDA

agricultural and food programs.

(i) Rongelap.

(j) Four atoll health care program.

(k) Enjebi Community Trust Fund.

(l) Bikini Atoll cleanup.

(m) Agreement on audits.

1904. Interpretation of and United States policy regarding

Compact of Free Association.

(a) Human rights.

(b) Immigration.

(c) Nonalienation of lands.

(d) Nuclear waste disposal.

(e) Impact of Compact on U.S. areas.

(f) Fisheries management.

(g) Foreign loans.

1905. Supplemental provisions.

(a) Domestic program requirements.

(b) Relations with Federated States of Micronesia

and Marshall Islands.

(c) Continuing Trust Territory authorization.

(d) Medical referral debts.

(e) Survivability.

(f) Registration for agents of Governments of

Federated States of Micronesia and Marshall

Islands.

(g) Noncompliance sanctions.

(h) Continuing programs and laws.

(i) College of Micronesia; education programs.

(j) Trust Territory debts to U.S. Federal agencies.

(k) Use of DOD medical facilities.

(l) Technical assistance.

(m) Prior Service Benefits Program.

(n) Indefinite land use payments.

(o) Communicable disease control program.

(p) Trust funds.

(q) Omitted.

(r) User fees.

1906. Construction contract assistance.

(a) Assistance to U.S. firms.

(b) Authorization of appropriations.

1907. Limitations.

(a) Prohibition.

(b) Termination.

1908. Transitional immigration rules.

(a) Citizen of Northern Mariana Islands.

(b) Termination.

1909. Timing.

1910. Implementation of audit agreements.

(a) Transmission of annual financial statement.

(b) Annual audits by President.

(c) Authority of GAO.

1911. Compensatory adjustments.

(a) Additional programs and services.

(b) Investment Development Funds.

(c) Board of Advisors.

(d) Further amounts.

1912. Jurisdiction.

SUBCHAPTER II - PALAU

PART A - APPROVAL OF COMPACT AND SUPPLEMENTAL PROVISIONS

1931. Approval of Compact of Free Association.

(a) Approval.

(b) Reference to Compact.

(c) Amendment, change, or termination of Compact

and certain agreements.

(d) Effective date.

1932. Extension of Compact of Free Association to Palau.

1933. Supplemental provisions.

(a) Civic Action Teams.

(b) Inventory and study of natural, historic, and

other resources.

(c) Omitted.

(d) Peleliu and Angaur.

(e) Power generation.

(f) Reduction of appropriations.

(g) Understandings, interpretations, and policy

statements.

(h) Additional provisions relating to Title Three

of Compact.

(i) Availability of appropriations.

(j) Authority to contract or make payments.

(k) Annual report.

1934. Jurisdiction.

(a) Maritime and territorial jurisdiction.

(b) Defense sites.

(c) Offenses.

PART B - IMPLEMENTATION OF COMPACT

1951. Entry into force of Compact.

1952. Fiscal procedures assistance.

1953. Antidrug program.

(a) Plan.

(b) Agreement.

1954. Public auditor and special prosecutor.

1955. Audit certification.

1956. Acquisition of defense sites.

1957. Federal programs coordination personnel.

1958. Referendum costs.

1959. Agreements.

(a) Effective date of certain agreements.

(b) Extensions.

(c) Authorization.

1960. Modification of energy assistance funding.

(a) Fulfillment of United States obligations.

(b) Adjustment and payment.

(c) Availability of appropriation account.

1961. Submission of agreements.

1962. Transition funding.

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

1971. Transfer of surplus personal property owned by United

States.

(a) Transfer to Northern Mariana Islands, Palau,

Marshall Islands, and Federated States of

Micronesia.

(b) Declaration that property is surplus.

(c) Property held in trust.

1972. Controlled substances in freely associated states.

(a) In general.

(b) Effective date.

1973. Freely Associated State Air Carrier.

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48 USC SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS 01/06/03

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TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

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SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1933, 1952, 1957,

1959, 1973 of this title; title 16 section 470a.

-End-

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48 USC Sec. 1901 01/06/03

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TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1901. Approval of Compact of Free Association

-STATUTE-

(a) Federated States of Micronesia

The Compact of Free Association set forth in title II of this

joint resolution between the United States and the Government of

the Federated States of Micronesia is hereby approved, and Congress

hereby consents to the subsidiary agreements as set forth on pages

115 through 391 of House Document 98-192 of March 30, 1984, as they

relate to such Government. Subject to the provisions of this joint

resolution, the President is authorized to agree, in accordance

with section 411 of the Compact, to an effective date for and

thereafter to implement such Compact, having taken into account any

procedures with respect to the United Nations for termination of

the Trusteeship Agreement.

(b) Marshall Islands

The Compact of Free Association set forth in title II of this

joint resolution between the United States and the Government of

the Marshall Islands is hereby approved, and Congress hereby

consents to the subsidiary agreements as set forth on pages 115

through 391 of House Document 98-192 of March 30, 1984, as they

relate to such Government. Subject to the provisions of this joint

resolution, the President is authorized to agree, in accordance

with section 411 of the Compact, to an effective date for and

thereafter to implement such Compact, having taken into account any

procedures with respect to the United Nations for termination of

the Trusteeship Agreement.

(c) Reference to Compact

Any reference in this joint resolution to "the Compact" shall be

treated as a reference to the Compact of Free Association set forth

in title II of this joint resolution.

(d) Amendment, change, or termination in Compact and certain

agreements

(1) Mutual agreement by the Government of the United States as

provided in the Compact which results in amendment, change, or

termination of all or any part thereof shall be effected only by

Act of Congress and no unilateral action by the Government of the

United States provided for in the Compact, and having such result,

may be effected other than by Act of Congress.

(2) The provisions of paragraph (1) shall apply -

(A) to all actions of the Government of the United States under

the Compact including, but not limited to, actions taken pursuant

to sections 431, 432, 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(j) of the Compact and the Agreement between the

Government of the United States and the Government of the

Marshall Islands Concerning Mutual Security Concluded Pursuant to

Sections 321 and 323 of the Compact of Free Association referred

to in section 462(k) of the Compact;

(C) to any amendment, change, or termination of the agreements

concluded pursuant to Compact sections 175, 177, and 221(a)(5),

the terms of which are incorporated by reference into the

Compact; and

(D) to the following subsidiary agreements, or portions

thereof:

(i) Article II of the agreement referred to in section 462(a)

of the Compact;

(ii) Article II of the agreement referred to in section

462(b) of the Compact;

(iii) Article II and Section 7 of Article XI of the agreement

referred to in section 462(e) of the Compact;

(iv) the agreement referred to in section 462(f) of the

Compact;

(v) Articles III and IV of the agreement referred to in

section 462(g) of the Compact;

(vi) Articles III and IV of the agreement referred to in

section 462(h) of the Compact; and

(vii) Articles VI, XV, and XVII of the agreement referred to

in section 462(i) of the Compact.

(e) Subsidiary agreements deemed bilateral

For purposes of implementation of the Compact and this joint

resolution, each of the subsidiary agreements referred to in

subsections (a) and (b) of this section (whether or not bilateral

in form) shall be deemed to be bilateral agreements 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

Marshall Islands which are intended to affect the implementation,

modification, suspension, or termination of any 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) Effective date

(1) The President shall not agree to an effective date for the

Compact, as authorized by this section, until after certifying to

Congress that the agreements described in section 1902 of this

title and section 1903 of this title have been concluded.

(2) Any agreement concluded with the Federated States of

Micronesia or the Marshall Islands pursuant to sections 1902 and

1903 of this title and any agreement which would amend, change, or

terminate any subsidiary agreement or portion thereof as set forth

in paragraph (4) of this subsection shall be submitted to the

Congress. No such agreement shall take effect until after the

expiration of 30 days after the date such agreement is so submitted

(excluding days on which either House of Congress is not in

session).

(3) No agreement described in paragraph (2) shall take effect if

a joint resolution of disapproval is enacted during the period

specified in paragraph (2). For the purpose of expediting the

consideration of such a joint resolution, a motion to proceed to

the consideration of any such joint resolution after it has been

reported by an appropriate committee shall be treated as highly

privileged in the House of Representatives. Any such joint

resolution shall be considered in the Senate in accordance with the

provisions of section 601(b) of Public Law 94-329.

(4) The subsidiary agreements or portions thereof referred to in

paragraph (2) are as follows:

(A) Articles III and IV of the agreement referred to in section

462(b) of the Compact.

(B) Articles III, IV, V, VI, VII, VIII, IX, X, and XI (except

for Section 7 thereof) of the agreement referred to in section

462(e) of the Compact.

(C) Articles IV, V, X, XIV, XVI, and XVIII of the agreement

referred to in section 462(i) of the Compact.

(D) Articles II, V, VI, VII, and VIII of the agreement referred

to in section 462(g) of the Compact.

(E) Articles II, V, VI, and VIII of the agreement referred to

in section 462(h) of the Compact.

(F) The Agreement set forth on pages 388 through 391 of House

Document 98-192 of March 30, 1984.

(5) No agreement between the United States and the Government of

either the Federated States of Micronesia or the Marshall Islands

which would amend, change, or terminate any subsidiary agreement or

portion thereof, other than those set forth in subsection (d) of

this section or paragraph (4) of this subsection shall take effect

until 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

therefore.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 101, Jan. 14, 1986, 99 Stat. 1773.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out below.

This joint resolution, referred to in subsecs. (a), (b), (c), and

(e), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as amended,

known as the Compact of Free Association Act of 1985, which is

classified principally to this subchapter and chapter 19 (Sec. 2001

et seq.) of this title. For complete classification of this Act to

the Code, see Short Title note below.

For Oct. 21, 1986, as the effective date of the Compact of Free

Association with the Marshall Islands, and Nov. 3, 1986, as the

effective date of the Compact of Free Association with the

Federated States of Micronesia, referred to in subsecs. (a), (b),

and (f), see Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out

as a note under section 1801 of this title.

Section 601(b) of Public Law 94-329, referred to in subsec.

(f)(3), is section 601(b) of Pub. L. 94-329, title VI, June 30,

1976, 90 Stat. 765, which is not classified to the Code.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

SHORT TITLE

Section 1(a) of Pub. L. 99-239 provided that: "This joint

resolution [enacting this subchapter, chapter 19 (Sec. 2001 et

seq.) of this title, and provisions set out below], together with

the Table of Contents in subsection (b) of this section [99 Stat.

1770], may be cited as the 'Compact of Free Association Act of

1985'."

APPLICATION OF FEDERAL PROGRAMS UNDER THE COMPACTS OF FREE

ASSOCIATION

Pub. L. 106-504, Sec. 3(a), Nov. 13, 2000, 114 Stat. 2312,

provided that: "The freely associated states of the Republic of the

Marshall Islands, the Federated States of Micronesia, and the

Republic of Palau, respectively, and citizens thereof, shall remain

eligible for all Federal programs, grant assistance, and services

of the United States, to the extent that such programs, grant

assistance, and services are provided to States and local

governments of the United States and residents of such States, for

which a freely associated State or its citizens were eligible on

October 1, 1999. This eligibility shall continue through the period

of negotiations referred to in section 231 of the Compact of Free

Association with the Republic of the Marshall Islands and the

Federated States of Micronesia, approved in Public Law 99-239 [set

out below], and during consideration by the Congress of legislation

submitted by an Executive branch agency as a result of such

negotiations."

REGULATIONS REGARDING HABITUAL RESIDENCE

Pub. L. 104-208, div. C, title VI, Sec. 643, Sept. 30, 1996, 110

Stat. 3009-708, provided that, not later than 6 months after Sept.

30, 1996, the Commissioner of Immigration and Naturalization was to

issue regulations governing rights of "habitual residence" in the

United States under the terms of the Compact of Free Association

between the Government of the United States and the Governments of

the Marshall Islands and the Federated States of Micronesia and the

Compact of Free Association between the Government of the United

States and the Government of Palau.

RATIFICATION OF CERTAIN AGREEMENTS BETWEEN UNITED STATES AND

GOVERNMENTS OF REPUBLIC OF MARSHALL ISLANDS AND FEDERATED STATES OF

MICRONESIA

Pub. L. 101-62, July 26, 1989, 103 Stat. 162, provided: "That,

pursuant to section 101(d) of Public Law 99-239 [48 U.S.C.

1901(d)], the following agreements are approved and shall enter

into force in accordance with their terms:

"(1) 'Agreement Between the Government of the United States and

the Government of the Republic of the Marshall Islands to Amend

the Governmental Representation Provisions of the Compact of Free

Association Pursuant to section 432 of the Compact', signed on

March 18, 1988; and

"(2) 'Agreement Between the Government of the United States and

the Government of the Federated States of Micronesia to Amend the

Governmental Representation Provisions of the Compact of Free

Association Pursuant to section 432 of the Compact', signed on

March 9, 1988."

RECITAL CLAUSES

Pub. L. 99-239 which enacted this subchapter and chapter 19 of

this title contained several "Whereas" clauses reading as follows:

"Whereas the United States, in accordance with the Trusteeship

Agreement, the Charter of the United Nations and the objectives of

the international trusteeship system, has promoted the development

of the peoples of the Trust Territory toward self-government or

independence as appropriate to the particular circumstances of the

Trust Territory and its peoples and the freely expressed wishes of

the peoples concerned; and

"Whereas the United States, in response to the desires of the

peoples of the Federated States of Micronesia and the Marshall

Islands expressed through their freely-elected representatives and

by the official pronouncements and enactments of their lawfully

constituted governments, and in consideration of its own

obligations under the Trusteeship Agreement to promote

self-determination, entered into political status negotiations with

representatives of the peoples of the Federated States of

Micronesia, and the Marshall Islands; and

"Whereas these negotiations resulted in the 'Compact of Free

Association' [set out below] which, together with its related

agreements, was signed by the United States and by the Federated

States of Micronesia and the Republic of the Marshall Islands on

October 1, 1982 and June 25, 1983, respectively; and

"Whereas the Compact of Free Association was approved by

majorities of the peoples of the Federated States of Micronesia and

the Marshall Islands in United Nations-observed plebiscites

conducted on June 21, 1983 and September 7, 1983, respectively; and

"Whereas the Compact of Free Association has been approved by the

Governments of the Federated States of Micronesia and the Marshall

Islands in accordance with their respective constitutional

processes, thus completing fully for the Federated States of

Micronesia and the Marshall Islands their domestic approval

processes with respect to the Compact as contemplated in Compact

Section 411".

COMPACT OF FREE ASSOCIATION

Section 201 of Pub. L. 99-239 provided that: "The Compact of Free

Association is as follows:

"COMPACT OF FREE ASSOCIATION

"PREAMBLE

"THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENTS

OF THE MARSHALL ISLANDS AND THE FEDERATED STATES OF MICRONESIA

"Affirming that their Governments and their relationships as

Governments are founded upon respect for human rights and

fundamental freedoms for all, and that the peoples of the Trust

Territory of the Pacific Islands have the right to enjoy

self-government; and

"Affirming the common interests of the United States of America

and the peoples of the Trust Territory of the Pacific Islands in

creating close and mutually beneficial relationships through two

free and voluntary associations of their respective Governments;

and

"Affirming the interest of the Government of the United States in

promoting the economic advancement and self-sufficiency of the

peoples of the Trust Territory of the Pacific Islands; and

"Recognizing that their previous relationship has been 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 peoples of the Trust Territory have

progressively developed their institutions of self-government, and

that in the exercise of their sovereign right to self-determination

they have, through their freely-expressed wishes, adopted

Constitutions appropriate to their particular circumstances; and

"Recognizing their common desire to terminate the Trusteeship and

establish two new government-to-government relationships each of

which is in accordance with a new political status based on the

freely-expressed wishes of peoples of the Trust Territory of the

Pacific Islands and appropriate to their particular circumstances;

and

"Recognizing that the peoples of the Trust Territory of the

Pacific Islands have and retain their sovereignty and their

sovereign right to self-determination and the inherent right to

adopt and amend their own Constitutions and forms of government and

that the approval of the entry of their respective Governments into

this Compact of Free Association by the peoples of the Trust

Territory of the Pacific Islands constitutes an exercise of their

sovereign right to self-determination;

"NOW, THEREFORE, AGREE to enter into relationships of free

association which provide a full measure of self-government for the

peoples of the Marshall Islands and the Federated States of

Micronesia; and

"FURTHER AGREE that the relationships of free association derive

from and are as set forth in this Compact; and that, during such

relationships of free association, the respective rights and

responsibilities of the Government of the United States and the

Governments of the freely associated states of the Marshall Islands

and the Federated States of Micronesia in regard to these

relationships of free association derive from and are as set forth

in this Compact.

"TITLE ONE

"GOVERNMENTAL RELATIONS

"ARTICLE I

"SELF-GOVERNMENT

"Section 111

"The peoples of the Marshall Islands and the Federated States of

Micronesia, acting through the Governments established under their

respective Constitutions, are self-governing.

"ARTICLE II

"FOREIGN AFFAIRS

"Section 121

"(a) The Governments of the Marshall Islands and the Federated

States of Micronesia have the capacity to conduct foreign affairs

and shall do so in their own name and right, except as otherwise

provided in this Compact.

"(b) The foreign affairs capacity of the Governments of the

Marshall Islands and 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 their 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 their

individual citizens.

"(c) The Government of the United States recognizes that the

Governments of the Marshall Islands and the Federated States of

Micronesia have the capacity to enter into, in their own name and

right, treaties and other international agreements with governments

and regional and international organizations.

"(d) In the conduct of their foreign affairs, the Governments of

the Marshall Islands and the Federated States of Micronesia confirm

that they shall act in accordance with principles of international

law and shall settle their international disputes by peaceful

means.

"Section 122

"The Government of the United States shall support applications

by the Governments of the Marshall Islands and the Federated States

of Micronesia for membership or other participation in regional or

international organizations as may be mutually agreed. The

Government of the United States agrees to accept for training and

instruction at the Foreign Service Institute [now George P. Shultz

National Foreign Affairs Training Center], established under 22

U.S.C. 4021, citizens of the Marshall Islands and the Federated

States of Micronesia. The qualifications of candidates for such

training and instruction and all other terms and conditions of

participation by citizens of the Marshall Islands and the Federated

States of Micronesia in Foreign Service Institute [now George P.

Shultz National Foreign Affairs Training Center] programs shall be

as mutually agreed between the Government of the United States and

the Governments of the Marshall Islands and the Federated States of

Micronesia.

"Section 123

"(a) In recognition of the authority and responsibility of the

Government of the United States under Title Three, the Governments

of the Marshall Islands and the Federated States of Micronesia

shall consult, in the conduct of their foreign affairs, with the

Government of the United States.

"(b) In recognition of the respective foreign affairs capacities

of the Governments of the Marshall Islands and 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

Marshall Islands or the Federated States of Micronesia on matters

which the Government of the United States regards as relating to or

affecting any such Government.

"Section 124

"The Government of the United States may assist or act on behalf

of the Government of the Marshall Islands or 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 Marshall Islands or 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

Marshall Islands or 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 Marshall Islands or 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 Marshall Islands and the Federated States

of Micronesia for travel outside the Marshall Islands and the

Federated States of Micronesia, the United States and its

territories and possessions.

"Section 127

"Except as otherwise provided in this Compact or its related

agreements, all obligations, responsibilities, rights and benefits

of the Government of the United States as Administering Authority

which have 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 the day

preceding the effective date of this Compact are no longer assumed

and enjoyed by the Government of the United States.

"ARTICLE III

"COMMUNICATIONS

"Section 131

"(a) The Governments of the Marshall Islands and the Federated

States of Micronesia have full authority and responsibility to

regulate their respective domestic and foreign communications, and

the Government of the United States shall provide communications

assistance in accordance with the terms of a separate agreement

which shall come into effect simultaneously with this Compact, and

such agreement shall remain in effect until such time as any

election is made pursuant to Section 131(b) and which shall provide

for the following:

"(1) the Government of the United States remains the sole

administration entitled to make notification to the International

Frequency Registration Board of the International

Telecommunications Union of frequency assignments to radio

communications stations respectively in the Marshall Islands and

the Federated States of Micronesia; and to submit to the

International Frequency Registration Board seasonal schedules for

the broadcasting stations respectively in the Marshall Islands

and the Federated States of Micronesia in the bands allocated

exclusively to the broadcasting service between 5,950 and 26,100

kHz and in any other additional frequency bands that may be

allocated to use by high frequency broadcasting stations; and

"(2) the United States Federal Communications Commission has

jurisdiction, pursuant to the Communications Act of 1934, 47

U.S.C. 151 et seq., and the Communications Satellite Act of 1962,

47 U.S.C. 721 et seq., over all domestic and foreign

communications services furnished by means of satellite earth

terminal stations where such stations are owned or operated by

United States common carriers and are located in the Marshall

Islands or the Federated States of Micronesia.

"(b) The Government of the Marshall Islands or the Federated

States of Micronesia may elect at any time to undertake the

functions enumerated in Section 131(a) and previously performed by

the Government of the United States. Upon such election, the

Government of the United States shall so notify the International

Frequency Registration Board and shall take such other actions as

may be necessary to transfer to the electing Government the

notification authority referred to in Section 131(a) and all rights

deriving from the previous exercise of any such notification

authority by the Government of the United States.

"Section 132

"The Governments of the Marshall Islands and the Federated States

of Micronesia shall permit the Government of the United States to

operate telecommunications services in the Marshall Islands and the

Federated States of Micronesia to the extent necessary to fulfill

the obligations of the Government of the United States under this

Compact in accordance with the terms of separate agreements which

shall come into effect simultaneously with this Compact.

"ARTICLE IV

"IMMIGRATION

"Section 141

"(a) Any person in the following categories may enter into,

lawfully engage in occupations, and establish residence as a

nonimmigrant in the United States and its territories and

possessions without regard to paragraphs (14), (20), and (26) of

section 212(a) of the Immigration and Nationality Act, 8 U.S.C.

1182(a) (14), (20), and (26):

"(1) a person who, on the day preceding the effective date of

this Compact, is 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 a citizen of the

Marshall Islands or the Federated States of Micronesia;

"(2) a person who acquires the citizenship of the Marshall

Islands or the Federated States of Micronesia at birth, on or

after the effective date of the respective Constitution;

"(3) a naturalized citizen of the Marshall Islands or 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;

or

"(4) a person entitled to citizenship in the Marshall Islands

by lineal descent whose name is included in a list to be

furnished by the Government of the Marshall Islands to the United

States Immigration and Naturalization Service and any descendants

of such persons, provided that such person holds a certificate of

lineal descent issued by the Government of the Marshall Islands.

Such persons shall be considered to have the permission of the

Attorney General of the United States to accept employment in the

United States.

"(b) The right of such persons to establish habitual residence in

a territory or possession of the United States may, however, be

subjected to nondiscriminatory limitations provided for:

"(1) in statutes or regulations of the United States; or

"(2) in those statutes or regulations of the territory or

possession concerned which are authorized by the laws of the

United States.

"(c) Section 141(a) does not confer on a citizen of the Marshall

Islands or the Federated States of Micronesia the right to

establish the residence necessary for naturalization under the

Immigration and Nationality Act, or to petition for benefits for

alien relatives under that Act. Section 141(a), however, shall not

prevent a citizen of the Marshall Islands or 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 enter into,

lawfully engage in occupations, and reside in the Marshall Islands

or the Federated States of Micronesia, subject to the rights of

those Governments to deny entry to or deport any such citizen or

national as an undesirable alien. A citizen or national of the

United States may establish habitual residence or domicile in the

Marshall Islands or the Federated States of Micronesia only in

accordance with the laws of the jurisdiction in which habitual

residence or domicile is sought.

"(b) With respect to the subject matter of this Section, the

Government of the Marshall Islands or the Federated States of

Micronesia shall accord to citizens and nationals of the United

States treatment no less favorable than that accorded to citizens

of other countries; any denial of entry to or deportation of a

citizen or national of the United States as an undesirable alien

must be pursuant to reasonable statutory grounds.

"Section 143

"(a) The privileges set forth in Sections 141 and 142 shall not

apply to any person who takes an affirmative step to preserve or

acquire a citizenship or nationality other than that of the

Marshall Islands, the Federated States of Micronesia or the United

States.

"(b) Every person having the privileges set forth in Sections 141

and 142 who possesses a citizenship or nationality other than that

of the Marshall Islands, the Federated States of Micronesia or the

United States ceases to have these privileges two years after the

effective date of this Compact, or within six months after becoming

21 years of age, whichever comes later, unless such person executes

an oath of renunciation of that other citizenship or nationality.

"Section 144

"(a) A citizen or national of the United States who, after

notification to the Government of the United States of an intention

to employ such person by the Government of the Marshall Islands or

the Federated States of Micronesia, commences employment with such

Government shall not be deprived of his United States nationality

pursuant to Section 349(a)(2) and (a)(4) of the Immigration and

Nationality Act, 8 U.S.C. 1481(a)(2) and (a)(4).

"(b) Upon such notification by the Government of the Marshall

Islands or the Federated States of Micronesia, the Government of

the United States may consult with or provide information to the

notifying Government concerning the prospective employee, subject

to the provisions of the Privacy Act, 5 U.S.C. 552a.

"(c) The requirement of prior notification shall not apply to

those citizens or nationals of the United States who are employed

by the Government of the Marshall Islands or the Federated States

of Micronesia on the effective date of this Compact with respect to

the positions held by them at that time.

"ARTICLE V

"REPRESENTATION

"Section 151

"The Government of the United States and the Government of the

Marshall Islands or the Federated States of Micronesia may

establish and maintain representative offices in the capital of the

other for the purpose of maintaining close and regular

consultations on matters arising in the course of the relationship

of free association and conducting other government business. The

Governments may establish and maintain additional offices on terms

and in locations as may be mutually agreed.

"Section 152

"(a) The premises of such representative offices, and their

archives wherever located, shall be inviolable. The property and

assets of such representative offices shall be immune from search,

requisition, attachment and any form of seizure unless such

immunity is expressly waived. Official communications in transit

shall be inviolable and accorded the freedom and protections

accorded by recognized principles of international law to official

communications of a diplomatic mission.

"(b) Persons designated by the sending Government may serve in

the capacity of its resident representatives with the consent of

the receiving Government. Such designated persons 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 as such representatives, except

insofar as such immunity may be expressly waived by the sending

Government. While serving in a resident representative capacity,

such designated persons 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.

"(c) The sending Governments and their respective assets, income

and other property shall be exempt from all direct taxes, except

those direct taxes representing payment for specific goods and

services, and shall be exempt from all customs duties and

restrictions on the import or export of articles required for the

official functions and personal use of their representatives and

representative offices.

"(d) Persons designated by the sending Government to serve in the

capacity of its resident representatives shall enjoy the same

taxation exemptions as are set forth in Article 34 of the Vienna

Convention on Diplomatic Relations.

"(e) The privileges, exemptions and immunities accorded under

this Section 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 to which they

are assigned.

"Section 153

"(a) Any citizen or national of the United States who, after

consultation between the designating Government and the Government

of the United States, is designated by the Government of the

Marshall Islands or the Federated States of Micronesia as its

agent, shall enjoy exemption from the requirements of the laws of

the United States relating to the registration of foreign agents.

The Government of the United States shall promptly comply with a

request for consultation made by the prospective designating

Government. During the course of the consultation, the Government

of the United States may, in its discretion, and subject to the

provisions of the Privacy Act, 5 U.S.C. 552a, transmit such

information concerning the prospective designee as may be available

to it to the prospective designating Government.

"(b) Any citizen or national of the United States may be employed

by the Government of the Marshall Islands or the Federated States

of Micronesia to represent to foreign governments, officers or

agents thereof the positions of the Government of the Marshall

Islands or the Federated States of Micronesia, without regard to

the provisions of 18 U.S.C. 953.

"ARTICLE VI

"ENVIRONMENTAL PROTECTION

"Section 161

"The Governments of the United States, the Marshall Islands 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 Marshall Islands and the Federated States

of Micronesia. In order to carry out this policy, the Government of

the United States and the Governments of the Marshall Islands and

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 the day preceding the effective date of this Compact 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 and its related agreements as if the Marshall Islands and

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 environments of the Marshall Islands

and the Federated States of Micronesia: the Endangered Species

Act of 1973, 87 Stat. 884, 16 U.S.C. 1531 et seq.; the Clean Air

Act, 77 Stat. 392, 42 U.S.C. Supp. 7401 et seq.; the Clean Water

Act (Federal Water Pollution Control Act), 86 Stat. 896, 33

U.S.C. 1251 et seq.; the Ocean Dumping Act (Title I of the Marine

Protection, Research and Sanctuaries Act of 1972), 86 Stat. 1053,

33 U.S.C. 1411 et seq.; the Toxic Substances Control Act, 90

Stat. 2003, 15 U.S.C. 2601 et seq.; the Resources Conservation

and Recovery Act of 1976, 90 Stat. 2796, 42 U.S.C. 6901 et seq.;

and such other environmental protection laws of the United States

as may be mutually agreed from time to time with the Government

of the Marshall Islands or 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), appropriate mechanisms, including regulations

or other judicially reviewable standards and procedures, to

regulate its activities governed by Section 161(a)(3) in the

Marshall Islands and the Federated States of Micronesia in a

manner appropriate to the special governmental relationship set

forth in this Compact. The agencies of the Government of the

United States designated by law to administer the laws set forth

in Section 161(a)(3) shall participate as appropriate in the

development of any regulation, standard or procedure under this

Section, and the Government of the United States shall provide

the affected Government of the Marshall Islands or the Federated

States of Micronesia with the opportunity to comment during such

development.

"(b) The Governments of the Marshall Islands and the Federated

States of Micronesia shall develop standards and procedures to

protect their environments. As a reciprocal obligation to the

undertakings of the Government of the United States under this

Article, the Governments of the Marshall Islands and the Federated

States of Micronesia, taking into account their particular

environments, shall develop standards for environmental protection

substantively similar to those required of the Government of the

United States by Section 161(a)(3) prior to their conducting

activities in the Marshall Islands and the Federated States of

Micronesia, respectively, 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 Marshall Islands or 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 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 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

affected Government of the Marshall Islands or 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 affected Government.

"(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 and its related agreements only to

the extent provided for in this Section.

"Section 162

"The Government of the Marshall Islands or 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 Sections 161(a), 161(d) or 161(e) or

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 concerned.

"(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 District Court 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

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 Governments of the

Marshall Islands and the Federated States of Micronesia shall be

treated as if they were United States citizens.

"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 Governments

of the Marshall Islands and the Federated States of Micronesia

shall be granted access to facilities operated by the Government of

the United States in the Marshall Islands and 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 Marshall Islands or 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 Marshall

Islands or 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 those Governments under the Freedom of Information Act,

5 U.S.C. 552.

"(c) The Governments of the Marshall Islands and 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 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 ceases with respect to the Marshall Islands and the

Federated States of Micronesia as of the effective date of this

Compact.

"Section 172

"(a) Every citizen of the Marshall Islands or 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 Governments of the Marshall Islands and the Federated

States of Micronesia and every citizen of the Marshall Islands or

the Federated States of Micronesia shall be considered 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 Marshall Islands or 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, the Marshall Islands and

the Federated States of Micronesia agree to adopt and enforce such

measures, consistent with this Compact 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

Marshall Islands and the Federated States of Micronesia pursuant to

this Compact and its related agreements and by those Governments in

the United States pursuant to this Compact and its related

agreements.

"Section 174

"Except as otherwise provided in this Compact and its related

agreements:

"(a) The Governments of the Marshall Islands and the Federated

States of Micronesia shall be immune from the jurisdiction of the

courts of the United States, and the Government of the United

States shall be immune from the jurisdiction of the courts of the

Marshall Islands and 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 Trust Territory of the Pacific Islands or 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 the effective date of this Compact;

"(2) any claim settled by the claimant and the Government of

the Trust Territory of the Pacific Islands but not paid as of the

effective date of this Compact; and

"(3) settlement of any administrative claim or of any action

before a court of the Trust Territory of the Pacific Islands,

pending as of the effective date of this Compact, against the

Government 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 this 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

court, which shall have jurisdiction therefor, 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 Governments of the Marshall Islands and 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 Marshall Islands and the Federated States of Micronesia in any

case in which the action is based on a commercial activity of the

defendant Government where the action is brought, or in a case in

which damages are sought for personal injury or death or damage to

or loss of property occurring where the action is brought.

"Section 175

"A separate agreement, which shall come into effect

simultaneously with this Compact, shall be concluded between the

Government of the United States and the Governments of the Marshall

Islands and the Federated States of Micronesia regarding mutual

assistance and cooperation in law enforcement matters including the

pursuit, capture, imprisonment and extradition of fugitives from

justice and the transfer of prisoners. The separate agreement shall

have the force of law. In the United States, the laws of the United

States governing international extradition, including 18 U.S.C.

3184, 3186 and 3188-3195, 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.

4100-4115, shall be applicable to the transfer of prisoners under

the separate agreement.

"Section 176

"The Governments of the Marshall Islands and the Federated States

of Micronesia confirm 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 Marshall Islands and the Federated

States of Micronesia to grant relief from judgments in appropriate

cases.

"Section 177

"(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.

"Section 178

"(a) The federal agencies of the Government of the United States

which provide the services and related programs in the Marshall

Islands or the Federated States of Micronesia pursuant to Articles

II and III of Title Two are authorized to settle and pay tort

claims arising in the Marshall Islands or 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) which 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 Marshall Islands or the Federated States of Micronesia shall,

in the separate agreements referred to in Section 232, provide for:

"(1) the administrative settlement of claims referred to in

Section 178(a), including designation of local agents in the

Marshall Islands and 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.

"TITLE TWO

"ECONOMIC RELATIONS

"ARTICLE I

"GRANT ASSISTANCE

"Section 211

"(a) In order to assist the Governments of the Marshall Islands

and the Federated States of Micronesia in their efforts to advance

the economic self-sufficiency of their peoples and in recognition

of the special relationship that exists between them and the United

States, the Government of the United States shall provide on a

grant basis the following amounts:

"(1) to the Government of the Marshall Islands, $26.1 million

annually for five years commencing on the effective date of this

Compact, $22.1 million annually for five years commencing on the

fifth anniversary of the effective date of this Compact, and

$19.1 million annually for five years commencing on the tenth

anniversary of this Compact. Over this fifteen-year period, the

Government of the Marshall Islands shall dedicate an average of

no less than 40 percent of these amounts to the capital account

subject to provision for revision of this percentage incorporated

into the plan referred to in Section 211(b); and

"(2) to the Government of the Federated States of Micronesia,

$60 million annually for five years commencing on the effective

date of this Compact, $51 million annually for five years

commencing on the fifth anniversary of the effective date of this

Compact, and $40 million annually for five years commencing on

the tenth anniversary of the effective date of this Compact. Over

this fifteen year period, the Government of the Federated States

of Micronesia shall dedicate an average of no less than 40

percent of these amounts annually to the capital account subject

to provision for revision of this percentage incorporated into

the plan referred to in Section 211(b). To take into account the

special nature of the assistance, to be provided under this

paragraph and Sections 212(b), 213(c), 214(c), 215(a)(3),

215(b)(3), 216(a), 216(b), 221(a), and 221(b), the division of

these amounts among the national and state governments of the

Federated States of Micronesia shall be certified to the

Government of the United States by the Government of the

Federated States of Micronesia.

"(b) The annual expenditure of the grant amounts specified for

the capital account in Section 211(a) by the Governments of the

Marshall Islands and the Federated States of Micronesia shall be in

accordance with official overall economic development plans

provided by those Governments and concurred in by the Government of

the United States prior to the effective date of this Compact.

These plans may be amended from time to time by the Government of

the Marshall Islands or the Federated States of Micronesia.

"(c) The Government of the United States and the Governments of

the Marshall Islands and the Federated States of Micronesia

recognize that the achievement of the goals of the plans referred

to in Section 211(b) depends upon the availability of adequate

internal revenue as well as economic assistance from sources

outside of the Marshall Islands and the Federated States of

Micronesia, including the Government of the United States, and may,

in addition, be affected by the impact of exceptional economically

adverse circumstances. Each of the Governments of the Marshall

Islands and the Federated States of Micronesia shall therefore

report annually to the President of the United States and to the

Congress of the United States on the implementation of the plans

and on their use of the funds specified in this Article. These

reports shall outline the achievements of the plans to date and the

need, if any, for an additional authorization and appropriation of

economic assistance for that year to account for any exceptional,

economically adverse circumstances. It is understood that the

Government of the United States cannot be committed by this Section

to seek or support such additional economic assistance.

"Section 212

"In recognition of the special development needs of the Federated

States of Micronesia, the Government of the United States shall

provide to the Government of the Federated States of Micronesia $1

million annually for fourteen years commencing on the first

anniversary of the effective date of this Compact. This amount may

be used by the Government of the Federated States of Micronesia to

defray current account expenditures attendant to the operation of

the United States military Civic Action Teams made available in

accordance with the separate agreement referred to in Section 227.

"Section 213

"(a) The Government of the United States shall provide on a grant

basis $1.9 million annually to the Government of the Marshall

Islands in conjunction with Section 321(a). The Government of the

Marshall Islands, in its use of such funds, shall take into account

the impact of the activities of the Government of the United States

in the Kwajalein Atoll area of the Marshall Islands.

"(b) The Government of the United States shall provide on a grant

basis to the Government of the Federated States of Micronesia the

sum of $160,000 in conjunction with Section 321(a). This sum shall

be made available concurrently with the grant assistance provided

pursuant to this Article during the first year after the effective

date of this Compact. The Government of the Federated States of

Micronesia, in its use of such funds, shall take into account the

impact of the activities of the Government of the United States in

Yap State, Federated States of Micronesia.

"Section 214

"As a contribution to efforts aimed at achieving increased

self-sufficiency in energy production, the Government of the United

States shall provide on a current account grant basis for fourteen

years commencing on the first anniversary of the effective date of

this Compact the following amounts:

"(a) To the Government of the Marshall Islands, $2 million

annually.

"(b) To the Government of the Federated States of Micronesia, $3

million annually.

"Section 215

"(a) As a contribution to the current account operations and

maintenance of communications systems, the Government of the United

States shall provide on a grant basis for fifteen years commencing

on the effective date of this Compact the following amounts:

"(1) to the Government of the Marshall Islands, $300,000

annually; and

"(2) to the Government of the Federated States of Micronesia,

$600,000 annually.

"(b) For the purpose of acquiring such communications hardware as

may be located within the Marshall Islands and the Federated States

of Micronesia or for such other current or capital account activity

as may be selected, the Government of the United States shall

provide, concurrently with the grant assistance provided pursuant

to this Article during the first year after the effective date of

this Compact, the sum of $9 million to be allocated as follows:

"(1) to the Government of the Marshall Islands, $3 million; and

"(2) to the Government of the Federated States of Micronesia,

$6 million.

"Section 216

"(a) The Government of the United States shall provide on a

current account basis an annual grant of $5.369 million for fifteen

years commencing on the effective date of this Compact for the

purposes set forth below:

"(1) $890,000 annually for the surveillance and enforcement by

the Governments of the Marshall Islands and the Federated States

of Micronesia of their respective maritime zones;

"(2) $1.791 million annually for health and medical programs,

including referrals to hospital and treatment centers; and

"(3) $2.687 million annually for a scholarship fund or funds to

support the post-secondary education of citizens of the Marshall

Islands and the Federated States of Micronesia attending United

States accredited, post-secondary institutions in the United

States, its territories and possessions, the Marshall Islands or

the Federated States of Micronesia. The curricula criteria for

the award of scholarships shall be designed to advance the

purposes of the plans referred to in Section 211(b).

"(b) The Government of the United States shall provide the sum of

$1.333 million as a contribution to the commencement of activities

pursuant to Section 216(a)(1).

"(c) The annual grants referred to in Section 216(a) and the sum

referred to in Section 216(b) shall be made available by the

Government of the United States promptly after it receives

instruction for their distribution agreed upon by the Governments

of the Marshall Islands and the Federated States of Micronesia.

"Section 217

"Except as otherwise provided, the amounts stated in Sections

211, 212, 214, 215 and 231 shall be adjusted for each Fiscal Year

by the percent which equals two-thirds of the percentage change in

the United States Gross National Product Implicit Price Deflator,

or seven percent, whichever is less in any one year, using the

beginning of Fiscal Year 1981 as the base.

"Section 218

"If in any year the funds made available by the Government of the

United States for that year pursuant to this Article or Section 231

are not completely obligated by the recipient Government, the

unobligated balances shall remain available in addition to the

funds to be provided in subsequent years.

"Section 219

"All funds previously appropriated to the Trust Territory of the

Pacific Islands which are unobligated by the Government of the

Trust Territory of the Pacific Islands as of the effective date of

this Compact shall accrue to the Governments of the Marshall

Islands and the Federated States of Micronesia for the purposes for

which such funds were originally appropriated as determined by the

Government of the United States.

"ARTICLE II

"PROGRAM ASSISTANCE

"Section 221

"(a) The Government of the United States shall make available to

the Marshall Islands and the Federated States of Micronesia, in

accordance with and to the extent provided in the separate

agreements referred to in section 232, without compensation and at

the levels equivalent to those available to the Trust Territory of

the Pacific Islands during the year prior to the effective date of

this Compact, the services and related programs:

"(1) of the United States Weather Service;

"(2) of the United States Federal Emergency Management Agency;

"(3) provided pursuant to the Postal Reorganization Act, 39

U.S.C. 101 et seq.;

"(4) of the United States Federal Aviation Administration; and

"(5) of the United States Civil Aeronautics Board or its

successor agencies which has the authority to implement the

provisions of paragraph 5 of Article IX of such separate

agreements, the language of which is incorporated into this

Compact.

"(b) The Government of the United States, recognizing the special

needs of the Marshall Islands and the Federated States of

Micronesia particularly in the fields of education and health care,

shall make available, as provided by the laws of the United States,

the annual amount of $10 million which shall be allocated in

accordance with the provisions of the separate agreement referred

to in Section 232.

"(c) The Government of the United States shall make available to

the Marshall Islands and the Federated States of Micronesia such

alternate energy development projects, studies and conservation

measures as are applicable to the Trust Territory of the Pacific

Islands on the day preceding the effective date of this Compact,

for the purposes and duration provided in the laws of the United

States.

"(d) The Government of the United States shall have and exercise

such authority as is necessary for the purposes of this Article and

as is set forth in the separate agreements referred to in Section

232, which shall also set forth the extent to which services and

programs shall be provided to the Marshall Islands and the

Federated States of Micronesia.

"Section 222

"The Government of the United States and the Government of the

Marshall Islands or the Federated States of Micronesia shall

consult regularly or upon request regarding:

"(a) The economic development of the Marshall Islands or the

Federated States of Micronesia; or

"(b) The services and programs referred to in this Article.

These services and programs shall continue to be provided by the

Government of the United States unless their modification is

provided by mutual agreement or their termination in whole or in

part is requested by any recipient Government.

"Section 223

"The citizens of the Marshall Islands and the Federated States of

Micronesia who are receiving post-secondary educational assistance

from the Government of the United States on the day preceding the

effective date of this Compact shall continue to be eligible, if

otherwise qualified, to receive such assistance to complete their

academic programs for a maximum of four years after the effective

date of this Compact.

"Section 224

"The Government of the United States and the Government of the

Marshall Islands or the Federated States of Micronesia may agree

from time to time to the extension of additional United States

grant assistance, services and programs as provided by the Laws of

the United States, to the Marshall Islands or the Federated States

of Micronesia, respectively.

"Section 225

"The Governments of the Marshall Islands and 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 Marshall

Islands or the Federated States of Micronesia at no cost to the

Government of the United States as of the effective date of this

Compact or as may be mutually agreed thereafter.

"Section 226

"The Governments of the Marshall Islands and 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 and which shall grant such

technical assistance in a manner which gives priority consideration

to the Marshall Islands and the Federated States of Micronesia over

other recipients not a part of the United States, its territories

or possessions. The Government of the United States shall

coordinate the provision of such technical assistance in

consultation with the respective recipient Government.

"Section 227

"In recognition of the special development needs of the Federated

States of Micronesia, the Government of the United States shall

make available United States military Civic Action Teams for use in

the Federated States of Micronesia under terms and conditions

specified in a separate agreement which shall come into effect

simultaneously with this Compact.

"ARTICLE III

"ADMINISTRATIVE PROVISIONS

"Section 231

"Upon the thirteenth anniversary of the effective date of this

Compact, the Government of the United States and the Governments of

the Marshall Islands and the Federated States of Micronesia shall

commence negotiations regarding those provisions of this Compact

which expire on the fifteenth anniversary of its effective date. If

these negotiations are not concluded by the fifteenth anniversary

of the effective date of this Compact, the period of negotiations

shall extend for not more than two additional years, during which

time the provisions of this Compact including Title Three shall

remain in full force and effect. During this additional period of

negotiations, the Government of the United States shall continue

its assistance to the Governments with which it is negotiating

pursuant to this Section at a level which is the average of the

annual amounts granted pursuant to Sections 211, 212, 213, 214, 215

and 216 during the first fifteen years of this Compact. The average

annual amount paid pursuant to Sections 211, 212, 214 and 215 shall

be adjusted pursuant to Section 217.

"Section 232

"The specific nature, extent and contractual arrangements of the

services and programs provided for in Section 221 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 Marshall Islands or the

Federated States of Micronesia, and other arrangements in

connection with a service or program furnished by the Government of

the United States, are set forth in separate agreements which shall

come into effect simultaneously with this Compact.

"Section 233

"The Government of the United States, in consultation with the

Governments of the Marshall Islands and 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. Such audits

shall be conducted on an annual basis during the first five years

following the effective date of this Compact and shall be at no

cost to the Government of the Marshall Islands or the Federated

States of Micronesia.

"Section 234

"Title to the property of the Government of the United States

situated in the Trust Territory of the Pacific Islands or acquired

for or used by the Government of the Trust Territory of the Pacific

Islands on or before the day preceding the effective date of this

Compact shall, without reimbursement or transfer of funds, vest in

the Government of the Marshall Islands and the Federated States of

Micronesia as set forth in a separate agreement which shall come

into effect simultaneously with this Compact. The provisions of

this Section shall not apply to the property of the Government of

the United States for which the Government of the United States

determines a continuing requirement.

"Section 235

"(a) Funds held in trust by the High Commissioner of the Trust

Territory of the Pacific Islands, in his official capacity, as of

the effective date of this Compact shall remain available as trust

funds to their designated beneficiaries. The Government of the

United States, in consultation with the Government of the Marshall

Islands or the Federated States of Micronesia, shall appoint a new

trustee who shall exercise the functions formerly exercised by the

High Commissioner of the Trust Territory of the Pacific Islands.

"(b) To provide for the continuity of administration, and to

assure the Governments of the Marshall Islands and the Federated

States of Micronesia that the purposes of the laws of the United

States are carried out and that the funds of any other trust fund

in which the High Commissioner of the Trust Territory of the

Pacific Islands has authority of a statutory or customary nature

shall remain available as trust funds to their designated

beneficiaries, the Government of the United States agrees to assume

the authority formerly vested in the High Commissioner of the Trust

Territory of the Pacific Islands.

"Section 236

"Except as otherwise provided, approval of this Compact by the

Government of the United States shall constitute a pledge of the

full faith and credit of the United States for the full payment of

the sums and amounts specified in Articles I and III of this Title.

The obligation of the United States under Articles I and III of

this Title shall be enforceable in the United States Claims Court

[now United States Court of Federal Claims], or its successor

court, which shall have jurisdiction in cases arising under this

Section, 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.

"ARTICLE IV

"TRADE

"Section 241

"The Marshall Islands and the Federated States of Micronesia are

not included in the customs territory of the United States.

"Section 242

"For the purpose of assessing duties on their products imported

into the customs territory of the United States, the Marshall

Islands and the Federated States of Micronesia shall be treated as

if they were insular possessions of the United States within the

meaning of General Headnote 3(a) of the Tariff Schedules of the

United States. The exceptions, valuation procedures and all other

provisions of General Headnote 3(a) shall apply to any product

deriving from the Marshall Islands or the Federated States of

Micronesia.

"Section 243

"All products of the Marshall Islands or the Federated States of

Micronesia imported into the customs territory of the United States

which are not accorded the treatment set forth in Section 242 and

all products of the United States imported into the Marshall

Islands or 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.

"ARTICLE V

"FINANCE AND TAXATION

"Section 251

"The currency of the United States is the official circulating

legal tender of the Marshall Islands and the Federated States of

Micronesia. Should the Government of the Marshall Islands or 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 Marshall Islands or 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

such Government 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 Marshall Islands or the Federated States of

Micronesia, domiciled therein, shall be exempt from:

"(a) Income taxes imposed by the Government of the United States

upon fixed or determinable annual income.

"(b) Estate, gift, and generation-skipping transfer taxes imposed

by the Government of the United States.

"Section 254

"(a) In determining any income tax imposed by the Government of

the Marshall Islands or the Federated States of Micronesia, those

Governments shall have authority to impose tax upon income derived

by a resident of the Marshall Islands or the Federated States of

Micronesia from sources without the Marshall Islands and the

Federated States of Micronesia, in the same manner and to the same

extent as those Governments impose tax upon income derived from

within their respective jurisdictions. If the Government of the

Marshall Islands or the Federated States of Micronesia exercises

such authority as provided in this subsection, any individual

resident of the Marshall Islands or 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

Marshall Islands or 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. For purposes

of this Section, the term 'resident of the Marshall Islands or the

Federated States of Micronesia' shall be deemed to include any

person who was physically present in the Marshall Islands or the

Federated States of Micronesia for a period of 183 or more days

during any taxable year; provided, that as between the Government

of the Marshall Islands and the Federated States of Micronesia, the

authority to tax an individual resident of the Marshall Islands or

the Federated States of Micronesia in respect of income from

sources without the Marshall Islands and the Federated States of

Micronesia as provided in this subsection may be exercised only by

the Government in whose jurisdiction such individual was physically

present for the greatest number of days during the taxable year.

"(b) If the Government of the Marshall Islands or 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

"Where not otherwise manifestly inconsistent with the intent of

this Compact, provisions in the United States Internal Revenue Code

that are applicable to possessions of the United States as of

January 1, 1980 shall be treated as applying to the Marshall

Islands and the Federated States of Micronesia. If such provisions

of the Internal Revenue Code are amended, modified or repealed

after that date, such provisions shall continue in effect as to the

Marshall Islands and the Federated States of Micronesia for a

period of two years during which time the Government of the United

States and the Governments of the Marshall Islands and the

Federated States of Micronesia shall negotiate an agreement which

shall provide benefits substantially equivalent to those which

obtained under such provisions.

"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 Marshall Islands and the Federated States of Micronesia.

"(b) This authority and responsibility includes:

"(1) the obligation to defend the Marshall Islands and the

Federated States of Micronesia and their peoples 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 Marshall

Islands and 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 Marshall Islands and 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 Marshall

Islands and 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 Governments of the Marshall Islands and the Federated

States of Micronesia shall refrain from actions which the

Government of the United States determines, after appropriate

consultation with those Governments, to be incompatible with its

authority and responsibility for security and defense matters in or

relating to the Marshall Islands and the Federated States of

Micronesia.

"(b) The consultations referred to in this Section shall be

conducted expeditiously at senior levels of the Governments

concerned, 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 Marshall Islands or 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 Marshall Islands or 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 over

flight 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 Marshall

Islands or the Federated States of Micronesia, the Government of

the United States shall not store in 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 Marshall Islands or 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 Marshall Islands or 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 Marshall Islands or 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 by the Government of

the Marshall Islands or 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 Marshall Islands or the Federated States of Micronesia are set

forth in separate agreements which shall come into effect

simultaneously with this Compact.

"(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 Marshall Islands or 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

concerned to satisfy those requirements through leases or other

arrangements. The Government of the Marshall Islands or 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 Marshall Islands

and 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 Marshall Islands and

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 Marshall Islands or the Federated

States of Micronesia, are set forth in separate agreements which

shall come into effect simultaneously with this Compact.

"ARTICLE III

"DEFENSE TREATIES AND INTERNATIONAL SECURITY AGREEMENTS

"Section 331

"Subject to the terms of this Compact and its related agreements,

the Government of the United States, exclusively, shall assume and

enjoy, as to the Marshall Islands and 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 the

day preceding the effective date of this Compact.

"(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 Marshall Islands

and 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 Marshall Islands or 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

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 so long as

such person does not establish habitual residence in the United

States, its territories or possessions.

"Section 342

"The Government of the United States shall have enrolled, at any

one time, at least two qualified students, one each from the

Marshall Islands and the Federated States of Micronesia, as may be

nominated by their respective Governments, 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. 1295b(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.

"ARTICLE V

"GENERAL PROVISIONS

"Section 351

"(a) The Government of the United States and the Government of

the Marshall Islands or the Federated States of Micronesia shall

establish two Joint Committees empowered to consider disputes under

the implementation of this Title and its related agreements.

"(b) The membership of each Joint Committee shall comprise

selected senior officials of each of the two participating

Governments. The senior United States military commander in the

Pacific area shall be the senior United States member of each Joint

Committee. For the meetings of each Joint Committee, each of the

two participating Governments may designate additional or alternate

representatives as appropriate for the subject matter under

consideration.

"(c) Unless otherwise mutually agreed, each Joint Committee shall

meet semi-annually at a time and place to be designated, after

appropriate consultation, by the Government of the United States. A

Joint Committee also shall meet promptly upon request of either of

its members. Upon notification by the Government of the United

States, the Joint Committees so notified shall meet promptly in a

combined session to consider matters within the jurisdiction of

more than one Joint Committee. Each Joint Committee shall follow

such procedures, including the establishment of functional

subcommittees, as the members may from time to time agree.

"(d) Unresolved issues in each Joint Committee shall be referred

to the Governments concerned for resolution, and the Government of

the Marshall Islands or 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 Governments of the

Marshall Islands and the Federated States of Micronesia under

Titles One, Two and Four and to their responsibility to assure the

well-being of their peoples.

"Section 353

"(a) The Government of the United States shall not include any of

the Governments of the Marshall Islands and the Federated States of

Micronesia as named parties to a formal declaration of war, without

their respective consent.

"(b) Absent such consent, this Compact 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 Marshall Islands or the Federated

States of Micronesia, which arise out of armed conflict subsequent

to the effective date of this Compact 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) Notwithstanding any other provision of this Compact, the

provisions of this Title are binding from the effective date of

this Compact for a period of fifteen years between the Government

of the United States and the Governments of the Marshall Islands

and the Federated States of Micronesia and thereafter as mutually

agreed or in accordance with Section 231, unless earlier terminated

by mutual agreement pursuant to Section 441, or amended pursuant to

Article III of Title Four.

"(b) The Government of the United States recognizes, in view of

the special relationship between the Government of the United

States and the Governments of the Marshall Islands and the

Federated States of Micronesia, and in view of the existence of

separate agreements with each of them pursuant to Sections 321 and

323, that, even if this Title should terminate, any attack on the

Marshall Islands or the Federated States of Micronesia during the

period in which such separate agreements are 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 Marshall Islands and the

Federated States of Micronesia in accordance with its

constitutional processes.

"TITLE FOUR

"GENERAL PROVISIONS

"ARTICLE I

"APPROVAL AND EFFECTIVE DATE

"Section 411

"This Compact shall come into effect upon mutual agreement

between the Government of the United States, acting in fulfillment

of its responsibilities as Administering Authority of the Trust

Territory of the Pacific Islands, and the Government of the

Marshall Islands or the Federated States of Micronesia and

subsequent to completion of the following:

"(a) Approval by the Government of the Marshall Islands or the

Federated States of Micronesia in accordance with its

constitutional processes.

"(b) Conduct of the plebiscite referred to in Section 412.

"(c) Approval by the Government of the United States in

accordance with its constitutional processes.

"Section 412

"A plebiscite shall be conducted in each of the Marshall Islands

and the Federated States of Micronesia for the free and voluntary

choice by the peoples of the Trust Territory of the Pacific Islands

of their future political status through informed and democratic

processes. The Marshall Islands and the Federated States of

Micronesia shall each be considered a voting jurisdiction, and the

plebiscite shall be conducted under fair and equitable standards in

each voting jurisdiction. The Administering Authority of the Trust

Territory of the Pacific Islands, after consultation with the

Governments of the Marshall Islands and the Federated States of

Micronesia, shall fix the date on which the plebiscite shall be

called in each voting jurisdiction. The plebiscite shall be called

jointly by the Administering Authority of the Trust Territory of

the Pacific Islands and the other Signatory Government concerned.

The results of the plebiscite in each voting jurisdiction shall be

determined by a majority of the valid ballots cast in that voting

jurisdiction.

"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 Marshall Islands or the Federated

States of Micronesia and any of those Governments shall confer

promptly at the request of the Government of the United States on

matters relating to the provisions of this Compact or of its

related agreements.

"Section 422

"In the event the Government of the United States, or the

Government of the Marshall Islands or the Federated States of

Micronesia, after conferring pursuant to Section 421, determines

that there is a dispute and gives written notice thereof, the

Governments which are parties to the dispute shall make a good

faith effort to resolve the dispute among themselves.

"Section 423

"If a dispute between the Government of the United States and the

Government of the Marshall Islands or 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) 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. 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 other party to the dispute.

"ARTICLE III

"AMENDMENT

"Section 431

"The provisions of this Compact may be amended as to the

Governments of the Marshall Islands and the Federated States of

Micronesia and as to the Government of the United States at any

time by mutual agreement.

"Section 432

"The provisions of this Compact may be amended as to any one of

the Governments of the Marshall Islands or the Federated States of

Micronesia and as to the Government of the United States at any

time by mutual agreement. The effect of any amendment made pursuant

to this Section shall be restricted to the relationship between the

Governments agreeing to such amendment, but the other Governments

signatory to this Compact shall be notified promptly by the

Government of the United States of any such amendment.

"ARTICLE IV

"TERMINATION

"Section 441

"This Compact may be terminated as to any one of the Governments

of the Marshall Islands or the Federated States of Micronesia and

as to the Government of the United States by mutual agreement and

subject to Section 451.

"Section 442

"This Compact may be terminated by the Government of the United

States as to the Government of the Marshall Islands or the

Federated States of Micronesia subject to Section 452, such

termination to 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.

"Section 443

"This Compact shall be terminated, pursuant to their respective

constitutional processes, by the Government of the Marshall Islands

or the Federated States of Micronesia subject to Section 453 if the

people represented by such Government vote in a plebiscite to

terminate. Such Government 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 such

Government 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, such Government 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

"Should termination occur pursuant to Section 441, economic

assistance by the Government of the United States shall continue on

mutually agreed terms.

"Section 452

"(a) Should termination occur pursuant to Section 442, the

following provisions of this Compact shall remain in full force and

effect until the fifteenth anniversary of the effective date of

this Compact between the Government of the United States and the

Government of the Marshall Islands or the Federated States of

Micronesia and thereafter as mutually agreed:

"(1) Article VI and Sections 172, 173, 176 and 177 of Title

One;

"(2) Article I and Section 233 of Title Two;

"(3) Title Three; and

"(4) Articles II, III, V and VI of Title Four.

"(b) The Government of the United States shall also provide the

Government as to which termination occurs pursuant to Section 442

with either the programs or services provided pursuant to Article

II of Title Two as the time of termination, or their equivalent, as

determined by the Government of the United States. Such assistance

shall continue until the fifteenth anniversary of the effective

date of this Compact, and thereafter as mutually agreed.

"Section 453

"(a) Should termination occur pursuant to Section 443, the

following provisions of this Compact shall remain in full force and

effect until the fifteenth anniversary of the effective date of

this Compact between the Government of the United States and the

Government of the Marshall Islands or the Federated States of

Micronesia and thereafter as mutually agreed:

"(1) Article VI and Sections 172, 173, 176 and 177 of Title

One;

"(2) Title Three; and

"(3) 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 so

terminating shall promptly consult with regard to their future

relationship. These consultations shall determine the level of

economic assistance which the Government of the United States shall

provide to the Government so terminating for the period ending on

the fifteenth anniversary of the effective date of this Compact

provided that the annual amounts specified in Sections 211, 212,

214, 215 and 216 shall continue without diminution. Such amounts,

with the exception of those specified in Section 216, shall be

adjusted according to the formula set forth in Section 217.

"Section 454

"Notwithstanding any other provision of this Compact:

"(a) The Government of the United States reaffirms its continuing

interest in promoting the long-term economic advancement and

self-sufficiency of the peoples of the Marshall Islands and the

Federated States of Micronesia.

"(b) The separate agreements referred to in Article II of the

Title Three shall remain in effect in accordance with their terms

which shall also determine the duration of Section 213.

"ARTICLE VI

"DEFINITION OF TERMS

"Section 461

"For the purpose of this Compact only and without prejudice to

the views of the Government of the United States or the Government

of the Marshall Islands or the Federated States of Micronesia as to

the nature and extent of the jurisdiction under international law

of any of them, 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

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 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) 'Government of the Marshall Islands' means the Government

established and organized by the Constitution of the Marshall

Islands including all the political subdivisions and entities

comprising that Government.

" '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.

"(e) The following terms shall be defined consistent with the

1976 Edition of the Radio Regulations of the International

Telecommunications Union (ISBN 92-61-0081-5) as follows:

"(1) 'Radio Communications' 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

radio communication service; each station shall be classified by

the service in which it operates permanently or temporarily.

"(3) 'Broadcasting Service' means a radio communication service

in which the transmissions are intended for direct reception by

the general public, and which may include sound transmissions,

television transmissions or other types of transmissions.

"(4) 'Broadcasting Station' means a station in the broadcasting

service.

"(f) 'Frequency Assignment' means the same as 'Frequency

Assignment' means in the 1976 Edition of the Radio Regulations of

the International Telecommunications Union (ISBN 92-61-0081-5).

"(g) 'Habitual Residence' means a place of general abode or a

principal, actual dwelling place of a continuing or lasting nature;

provided, however, that this term shall not apply to the residence

of any person who entered the United States for the purpose of

full-time studies as long as such person maintains that status, or

who has been physically present in the United States, the Marshall

Islands, or the Federated States of Micronesia for less than one

year, or who is a dependent of a resident representative, as

described in Section 152.

"(h) For the purposes of Article IV of Title One of this Compact:

"(1) 'Actual Residence' means physical presence in the Marshall

Islands or the Federated States of Micronesia during eighty-five

percent of the period of residency required by Section 141(a)(3);

and

"(2) 'Certificate of Actual Residence' means a certificate

issued to a naturalized citizen by the Government which has

naturalized him stating that the citizen has complied with the

actual residence requirement of Section 141(a)(3).

"(i) 'Military Areas and Facilities' means those areas and

facilities in the Marshall Islands or the Federated States of

Micronesia reserved or acquired by the Government of the Marshall

Islands or 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) 'Capital Account' means, for each year of the Compact, those

portions of the total grant assistance provided in Article I of

Title Two, adjusted by Section 217, which are to be obligated for:

"(1) the construction or major repair of capital

infrastructure; or

"(2) public and private sector projects identified in the

official overall economic development plan.

"(k) 'Current Account' means, for each year of the Compact, those

portions of the total grant assistance provided in Article I of

Title Two, adjusted by Section 217, which are to be obligated for

recurring operational activities including infrastructure

maintenance as identified in the annual budget justifications

submitted yearly to the Government of the United States.

"(l) 'Official Overall Economic Development Plan' means the

documented program of annual development which identifies the

specific policy and project activities necessary to achieve a

specified set of economic goals and objectives during the period of

free association, consistent with the economic assistance authority

in Title Two. Such a document should include an analysis of

population trends, manpower requirements, social needs, gross

national product estimates, resource utilization, infrastructure

needs and expenditures, and the specific private sector projects

required to develop the local economy of the Marshall Islands or

the Federated States of Micronesia. Project identification should

include initial cost estimates, with project purposes related to

specific development goals and objectives.

"(m) '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.

"(n) '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

"The Government of the United States and the Government of the

Marshall Islands or the Federated States of Micronesia, as

appropriate, shall conclude related agreements which shall come

into effect and shall survive in accordance with their terms, as

follows:

"(a) Agreement Regarding the Provision of Telecommunication

Services by the Government of the United States to the Marshall

Islands and the Federated States of Micronesia Concluded Pursuant

to Section 131 of the Compact of Free Association;

"(b) Agreement Regarding the Operation of Telecommunication

Services of the Government of the United States in the Marshall

Islands and the Federated States of Micronesia Concluded Pursuant

to Section 132 of the Compact of Free Association;

"(c) Agreement on Extradition, Mutual Assistance in Law

Enforcement Matters and Penal Sanctions Concluded Pursuant to

Section 175 of the Compact of Free Association;

"(d) 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;

"(e) Federal Programs and Services Agreement Concluded Pursuant

to Article II of Title Two and Section 232 of the Compact of Free

Association;

"(f) Agreement Concluded Pursuant to Section 234 of the Compact

of Free Association;

"(g) Agreement Regarding the Military Use and Operating Rights of

the Government of the United States in the Marshall Islands

Concluded Pursuant to Sections 321 and 323 of the Compact of Free

Association;

"(h) 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 227, 321 and 323 of the

Compact of Free Association;

"(i) Status of Forces Agreement Concluded Pursuant to Section 323

of the Compact of Free Association;

"(j) 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

"(k) 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.

"Section 463

"(a) Except as set forth in Section 463(b), any reference in this

Compact 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 such provision was

in force on January 1, 1980.

"(b) Any reference in Article VI of Title One and Sections 131,

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 or the Administrative Procedure Act

constitutes the incorporation of the language of such provision

into this Compact as such provision is in force on the effective

date of this Compact 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

"(a) The Government of the United States and the Governments of

the Marshall Islands and the Federated States of Micronesia agree

that they have full authority under their respective Constitutions

to enter into this Compact and its related agreements and to

fulfill all of their respective responsibilities in accordance with

the terms of this Compact and its related agreements. The

Governments pledge that they are so committed.

"(b) Each of the Governments of the United States, the Marshall

Islands and the Federated States of Micronesia shall take all

necessary steps, of a general or particular character, to ensure,

not later than the effective date of this Compact, the conformity

of its laws, regulations and administrative procedures with the

provisions of this Compact.

"(c) Without prejudice to the effects of this Compact under

international law, this Compact has the force and effect of a

statute under the laws of the United States.

"Section 472

"This Compact may be accepted, by signature or otherwise, by the

Government of the United States, the Government of the Marshall

Islands, and the Government of the Federated States of Micronesia.

Each Government accepting this Compact shall possess an original

English language version.

"IN WITNESS WHEREOF, the undersigned, duly authorized, have

signed this Compact of Free Association which shall come into

effect in accordance with its terms between the Government of the

United States and each of the other Governments signatory to this

Compact.

"DONE AT HONOLULU, HAWAII, THIS 1ST DAY OF

"OCTOBER, ONE THOUSAND, NINE HUNDRED EIGHTY-TWO

"FOR THE GOVERNMENT

"OF

"THE UNITED STATES OF AMERICA

"ambassador fred m. zeder, ii

"president's personal representative

"for micronesian status negotiations

"DONE AT HONOLULU, HAWAII, THIS 1ST DAY OF

"OCTOBER, ONE THOUSAND, NINE HUNDRED EIGHTY-TWO

"FOR THE GOVERNMENT

"OF

"THE FEDERATED STATES OF MICRONESIA

"honorable andon l. amaraich

"chairman, commission on future

"political status and transition

"DONE AT MAJURO, MARSHALL ISLANDS, THIS 25TH DAY

"OF JUNE, ONE THOUSAND, NINE HUNDRED, EIGHTY-THREE

"FOR THE GOVERNMENT

"OF

"THE UNITED STATES OF AMERICA

"ambassador fred m. zeder, ii

"president's personal representative

"for micronesian status negotiations

"DONE AT MAJURO, MARSHALL ISLANDS, THIS 25TH DAY

"OF JUNE, ONE THOUSAND, NINE HUNDRED EIGHTY-THREE

"FOR THE GOVERNMENT

"OF

"THE MARSHALL ISLANDS

"president amata kabua

"president of the republic

"of the marshall islands".

[For abolition of Immigration and Naturalization Service,

transfer of functions, and treatment of related references, see

note set out under section 1551 of Title 8, Aliens and

Nationality.]

[For transfer of functions, personnel, assets, and liabilities of

the Federal Emergency Management Agency, including the functions of

the Director of the Federal Emergency Management Agency relating

thereto, to the Secretary of Homeland Security, and for treatment

of related references, see sections 313(1), 551(d), 552(d), and 557

of Title 6, Domestic Security, and the Department of Homeland

Security Reorganization Plan of November 25, 2002, as modified, set

out as a note under section 542 of Title 6.]

[For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.]

[For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which reporting requirements under section 211(c) of the Compact of

Free Association, set out above, are listed as the 5th and 6th

items on page 115), see section 3003 of Pub. L. 104-66, as amended,

set out as a note under section 1113 of Title 31, Money and

Finance.]

CLARIFICATION OF CERTAIN TRADE AND TAX PROVISIONS OF COMPACT OF

FREE ASSOCIATION

Title IV of Pub. L. 99-239 provided that:

"SEC. 401. FREELY ASSOCIATED STATES TARIFF TREATMENT.

"(a) Section 242. - Section 242 of the Compact [set out above]

shall be construed and applied as if it read as follows:

" 'Section 242

" 'The President shall proclaim the following tariff treatment

for articles imported from the Federated States of Micronesia or

the Marshall Islands which shall apply during the period of

effectiven[e]ss of this title:

" '(1) Unless otherwise excluded, articles imported from the

Federated States of Micronesia or the Marshall Islands, subject

to the limitations imposed under sections 503(b) and 504(c) of

title 5 of the Trade Act of 1974 (19 U.S.C. 2463(b); 2464(c)),

shall be exempt from duty.

" '(2) Only canned tuna provided for in item 112.30 of the

Tariff Schedules of the United States that is imported from the

Federated States of Micronesia and the Marshall Islands during

any calendar year not to exceed 10 percent of the United States

consumption of canned tuna 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 aggregate quantity of canned

tuna that is dutiable under rate column numbered 1 of such item

112.30 for that calendar year.

" '(3) The duty-free treatment provided under paragraph (1)

shall not apply to -

" '(A) watches, clocks, and timing apparatus provided for in

subpart E of part 2 of schedule 7 of the Tariff Schedules of

the United States;

" '(B) buttons (whether finished or not finished) provided

for in item 745.32 of such Schedules;

" '(C) textile and apparel articles which are subject to

textile agreements; and

" '(D) footwear, handbags, luggage, flat goods, work gloves,

and leather wearing apparel which were not eligible articles

for purposes of chapter V of the Trade Act of 1974 (19 U.S.C.

2461, et seq.) on April 1, 1984.

" '(4) 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 or 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(b)(2) of title V of the

Trade Act of 1974.'.

"(b) Section 243. - Section 243 of the Compact shall be construed

and applied as if it read as follows:

" 'Section 243

" 'Articles imported from the Federated States of Micronesia or

the Marshall Islands which are not exempt from duty under

paragraphs (1), (2), (3), and (4) of section 242 shall be subject

to the rates of duty set forth in column numbered 1 of the Tariff

Schedules of the United States and all products of the United

States imported into the Federated States of Micronesia or 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.'.

"SEC. 402. CONSTRUCTION OF SECTION 253 OF THE COMPACT.

"(a) Subsection (a) of section 253 of the Compact shall not

apply.

"(b) Subsection (b) of section 253 of the Compact shall apply

only to individuals who are nonresidents and not citizens of the

United States.

"SEC. 403. CONSTRUCTION OF SECTION 254 OF THE COMPACT.

"The relief from liability referred to in the second sentence of

section 254(a) of the Compact means only -

"(1) 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

"(2) relief in the form of the exclusion under section 911 of

the Internal Revenue Code of 1986 [26 U.S.C. 911].

"SEC. 404. CONSTRUCTION OF SECTION 255 OF THE COMPACT.

"Section 255 of the Compact shall be construed and applied as if

it read as follows:

" 'Section 255

" '(a) Extension of Section 936 to the Marshall Islands and the

Federated States of Micronesia. - For purposes of section 936 of

the Internal Revenue Code of 1986, the Marshall Islands and the

Federated States of Micronesia shall be treated as if they were

possessions of the United States.

" '(b) Exchange of Information. - Subsection (a) shall not apply

to the Marshall Islands and the Federated States of Micronesia (as

the case may be) for any period after December 31, 1986, during

which there is not in effect between the appropriate government and

the United States an exchange of information agreement of the kind

described in section 274(h)(6)(C) (other than clause (ii) thereof)

of the Internal Revenue Code of 1986.

" '(c) Procedure If Section 936 Incentives Reduced. - If the tax

incentives extended to the Marshall Islands and the Federated

States of Micronesia under subsection (a) are, at any time during

which the Compact is in effect, reduced, the Secretary of the

Treasury shall negotiate an agreement with the Marshall Islands and

the Federated States of Micronesia under which, when such agreement

is approved by law, they will be provided with benefits

substantially equivalent to such reduction in benefits. If, within

the 1 year period after the date of the enactment of the Act making

the reduction in benefits, an agreement negotiated under the

preceding sentence is not approved by law, the matter shall be

submitted to the Arbitration Board established pursuant to section

424 of the Compact. For purposes of Article V of Title Two of the

Compact, the Secretary of the Treasury or his delegate shall be the

member of such Board representing the Government of the United

States. Any decision of such Board in the matter when approved by

law shall be binding on the United States, except that such

decision rendered is binding only as to whether the United States

has provided the substantially equivalent benefits referred to in

this subsection.'.

"SEC. 405. THE MARSHALL ISLANDS AND THE FEDERATED STATES OF

MICRONESIA TREATED AS NORTH AMERICAN AREA.

"For purposes of section 274(h)(3)(A) of the Internal Revenue

Code of 1986 [26 U.S.C. 274(h)(3)(A)], the term 'North American

Area' shall include the Marshall Islands and the Federated States

of Micronesia.

"SEC. 406. EFFECTIVE DATE.

"This title shall apply to income earned, and transactions

occurring, after September 30, 1985, in taxable years ending after

such date.

"SEC. 407. STUDY OF TAX PROVISIONS.

"The Secretary of the Treasury or his delegate -

"(1) shall conduct a study of the effects of the tax provisions

of the Compact (as clarified by the foregoing provisions of this

title), and

"(2) shall report the results of such study before October 1,

1987, to the Committee on Ways and Means of the House of

Representatives and the Committee on Finance of the Senate.

[The due date for the report referred to in section 407 of Pub.

L. 99-239, set out above, was extended to Jan. 1, 1991 by Pub. L.

101-508, title XI, Sec. 11831(b), Nov. 5, 1990, 104 Stat.

1388-559.]

"SEC. 408. COORDINATION WITH OTHER PROVISIONS.

"Nothing in any provision of this joint resolution [see Short

Title note above] (other than this title) which is inconsistent

with any provision of this title shall have any force or effect."

-EXEC-

EX. ORD. NO. 12569. MANAGEMENT OF COMPACT OF FREE ASSOCIATION WITH

REPUBLIC OF THE MARSHALL ISLANDS, FEDERATED STATES OF MICRONESIA,

AND REPUBLIC OF PALAU

Ex. Ord. No. 12569, Oct. 16, 1986, 51 F.R. 37171, as amended by

Ex. Ord. No. 12877, Nov. 3, 1993, 58 F.R. 59159, provided:

By the authority vested in me as President by the Constitution

and laws of the United States, including the Compact of Free

Association (the Compact) [set out above] and Public Law 99-239,

(the Act) [see Short Title note above], it is ordered as follows:

Section 1. Responsibility of the Secretary of State. The

Secretary of State shall conduct the government-to-government

relations of the United States with the Republic of the Marshall

Islands, the Federated States of Micronesia, and the Republic of

Palau (the "Freely Associated States"), including any subdivisions,

officials or persons thereof, and may delegate or allocate such of

his authority under this Order to such other United States

officials as he may from time to time deem desirable. The authority

of the Secretary of State shall include, consistent with Article V

of Title One of the Compact and section 105(b)(1) of the Act [48

U.S.C. 1905(b)(1)], the establishment and maintenance of

representative offices in the Freely Associated States and

supervision of the United States representatives and their staff.

The Secretary also shall provide, in accordance with applicable

law, for appropriate privileges, immunities, and assistance to

representatives to the United States designated by the Governments

of the Freely Associated States, together with their officers and

staff. In accordance with applicable law and the provisions of this

Order, the Secretary also shall have the authority and

responsibility to take such other actions as may be necessary and

appropriate to ensure that the authorities and obligations of the

United States set forth in the Compact and its related agreements

and in the laws of the United States as they relate to the conduct

of government-to-government relations with the Freely Associated

States are carried out. The Secretary shall provide from

appropriations made to the Department of State such funds as may be

necessary to carry out the provisions of this Order in relation to

the activities of the Department of State.

Sec. 2. Responsibility of the Secretary of the Interior. The

Secretary of the Interior shall be responsible for seeking the

appropriation of funds for and, in accordance with the laws of the

United States, shall make available to the Freely Associated States

the United States economic and financial assistance appropriated

pursuant to Article I of Title Two of the Compact; the grant,

service, and program assistance appropriated pursuant to Article II

of Title Two of the Compact; and all other United States assistance

appropriated pursuant to the Compact and its related agreements.

The Secretary shall coordinate and monitor any program or any

activity by any department or agency of the United States provided

to the Freely Associated States and shall coordinate and monitor

related economic development planning. This Section shall not apply

to services provided by the Department of Defense to the Freely

Associated States or to activities pursuant to Section 1 of this

Order, including activities under the Peace Corps Act [22 U.S.C.

2501 et seq.].

Sec. 3. Interagency Group on Freely Associated State Affairs and

the Office of Freely Associated State Affairs.

(a) There is established an Interagency Group on Freely

Associated State Affairs for the purpose of providing guidance and

oversight with respect to the establishment and implementation of

policy concerning the Compact and United States relations with the

Freely Associated States.

(b) The Interagency Group shall consist of the Secretary of State

or his designee, who shall chair the Group, and of the principal

officers or their designees from the Departments of the Interior,

Defense, Commerce, Energy, and Justice, the Organization of the

Joint Chiefs of Staff, the Office of Management and Budget, the

National Security Council, and such other departments and agencies

as may from time to time be appropriate.

(c) The Interagency Group shall make such recommendations as it

shall deem appropriate to the President, through the Assistant to

the President for National Security Affairs, concerning United

States relations with the Freely Associated States. The Interagency

Group also shall provide such guidance as it deems appropriate to

departments and agencies delegated authority by this Order

concerning administration of laws with respect to the Freely

Associated States.

(d) If any department or agency charged by this Order with

implementation of the Compact or other laws of the United States

with respect to the Freely Associated States concludes that

noncompliance sanctions pursuant to section 105(g) of the Act [48

U.S.C. 1905(g)] are appropriate, it shall make appropriate

recommendations to the Interagency Group. The Interagency Group

shall consider these recommendations and report its findings to the

President for his review in making that determination.

(e)(1) The Secretary of State shall be responsible for the

conduct of United States relations with the Freely Associated

States, carry out related matters, and provide appropriate support

to the Interagency Group, bearing in mind the continued special

relationship between the United States and the Freely Associated

States.

(2) The Secretaries of Defense and Interior may, to the extent

permitted by law, delegate any or all of their respective

authorities and responsibilities as described in this Order to the

Secretary of State or his or her designee. The Secretary of State

or his or her designee shall serve as Executive Secretary of the

Interagency Group.

(3) Personnel additional to that provided by the Secretary of

State may be detailed to the Department of State by the Executive

departments and agencies that are members of the Interagency Group,

and by other agencies as appropriate. Executive departments and

agencies shall, to the extent permitted by law, provide such

information, advice, and administrative services and facilities to

the Secretary of State as may be necessary to conduct United States

relations with the Freely Associated States.

Sec. 4. United States Representatives to the Freely Associated

States. The United States Representative assigned to a Freely

Associated State in accordance with Article V of Title One of the

Compact shall represent the Government of the United States in an

official capacity in that Freely Associated State, and shall

supervise the actions of any Executive department or agency

personnel assigned permanently or temporarily to that Freely

Associated State.

Sec. 5. Cooperation among Executive Departments and Agencies. All

Executive departments and agencies shall cooperate in the

effectuation of the provisions of this Order. The Interagency Group

and the Secretary of State shall facilitate such cooperative

measures. Nothing in this Order shall be construed to impair the

authority and responsibility of the Secretary of Defense for

security and defense matters in or relating to the Freely

Associated States.

Sec. 6. Delegation to the Secretary of the Interior. The

following authorities are delegated to the Secretary of the

Interior:

(a) Reporting to the Congress on economic development plans

prepared by the Government of the Federated States of Micronesia

and the Government of the Marshall Islands, pursuant to sections

102(b) and 103(b) of the Act [48 U.S.C. 1902(b), 1903(b)];

(b) The determination required by section 103(e) of the Act

concerning the qualifications of the investment management firm

selected by the Government of the Marshall Islands;

(c) Reporting to the Congress with respect to the impact of the

Compact of Free Association on the United States territories and

commonwealths and on the State of Hawaii, pursuant to section

104(e)(2) of the Act [48 U.S.C. 1904(e)(2)]; and

(d) Causing an annual audit to be conducted of the annual

financial statements of the Government of the Federated States of

Micronesia and the Government of the Marshall Islands, pursuant to

section 110(b) of the Act [48 U.S.C. 1910(b)].

Sec. 7. Delegation to the Secretary of State. The following

authorities are delegated to the Secretary of State:

(a) Reporting to the Congress on crimes in the Federated States

of Micronesia and the Marshall Islands which have an impact upon

United States jurisdictions, pursuant to sections 102(a)(4) and

103(a)(4) of the Act [48 U.S.C. 1902(a)(4), 1903(a)(4)];

(b) Submitting the certification and report to the Congress for

purposes of section 5 of the Fishermen's Protective Act of 1967 [22

U.S.C. 1975], pursuant to section 104(f)(3) of the Act [48 U.S.C.

1904(f)(3)]; and

(c) Reporting, with the concurrence of the Secretary of Defense,

to the Congress on determinations made regarding security and

defense, pursuant to section 105(q) of the Act [former 48 U.S.C.

1905(q)].

Sec. 8. Supersession and Saving Provisions.

(a) Subject to the provisions of Section 9 of this Order, prior

Executive orders concerning the former Trust Territory of the

Pacific Islands are hereby superseded and rendered inapplicable,

except that the authority of the Secretary of the Interior as

provided in applicable provisions of Executive Order No. 11021, as

amended [formerly 48 U.S.C. 1681 note], shall remain in effect, in

a manner consistent with this Order and pursuant to section

105(c)(2) of the Act [48 U.S.C. 1905(c)(2)], to terminate the trust

territory government and discharge its responsibilities, at which

time the entirety of Executive Order No. 11021 shall be superseded.

(b) Nothing in this Order shall be construed as modifying the

rights or obligations of the United States under the provisions of

the Compact or as affecting or modifying the responsibility of the

Secretary of State and the Attorney General to interpret the rights

and obligations of the United States arising out of or concerning

the Compact.

Sec. 9. Effective Date. This Order shall become effective with

respect to a Freely Associated State simultaneously with the entry

into force of the Compact for that State.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1902, 1903, 1972 of this

title.

-End-

-CITE-

48 USC Sec. 1902 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1902. Agreements with Federated States of Micronesia

-STATUTE-

(a) Law enforcement assistance

(1) Agreement

The President of the United States shall negotiate with the

Government of the Federated States of Micronesia an agreement

pursuant to section 175 of the Compact which is in addition to

the Agreement pursuant to such section dated October 1, 1982, and

transmitted to the Congress by the President on February 20,

1985. Such additional agreement shall provide as follows:

(A) Mutual assistance in law enforcement

The law enforcement agencies of the United States and the

Federated States of Micronesia shall assist one another, as

mutually agreed, in the prevention and investigation of crimes

and the enforcement of the laws of the United States and the

Federated States of Micronesia specified in subparagraph (C) of

this paragraph. The United States and the Federated States of

Micronesia will authorize mutual assistance with respect to

investigations, inquiries, audits and related activities by the

law enforcement agencies of both Governments in the United

States and the Federated States of Micronesia. In conducting

activities authorized in accordance with this section, the

United States and the Federated States of Micronesia will act

in accordance with the constitution and laws of the

jurisdiction in which such activities are conducted.

(B) Narcotics and control of illegal substances

The United States and the Federated States of Micronesia will

take all reasonable and necessary steps, as mutually agreed,

based upon consultations in which the Attorney General or other

designated official of each Government participates, to prevent

the use of the lands, waters, and facilities of the United

States or the Federated States of Micronesia for the purposes

of cultivation of, production of, smuggling of, trafficking in,

and abuse of any controlled substance as defined in section

802(6) of title 21 and Schedules I through V of Subchapter II

of the Controlled Substances Act of the Federated States of

Micronesia, or for the distribution of any such substance to or

from the Federated States of Micronesia or to or from the

United States or any of its territories or commonwealths.

(C) Other criminal laws

Assistance provided pursuant to this subsection shall also

extend to, but not be limited to, prevention and prosecution of

violations of the laws of the United States and the laws of the

Federated States of Micronesia related to terrorism, espionage,

racketeer influenced and corrupt organizations, and financial

transactions which advance the interests of any person engaging

in unlawful activities, as well as the schedule of offenses set

forth in Appendix A of the subsidiary agreement to section 175

of the Compact.

(2) Technical and training assistance

Pursuant to sections 224 and 226 of the 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 1905(l) of this title may be

used to reimburse State or local agencies providing such

assistance.

(3) Consultation

Any official, designated by this joint resolution or by the

President to negotiate any agreement under this section, shall

consult with affected law enforcement agencies prior to entering

into such an agreement on behalf of the United States.

(4) Report

The President shall report annually to Congress on the

implementation of this subsection. Such report shall provide

statistical and other information about the incidence of crimes

in the Federated States of Micronesia which have an impact upon

United States jurisdictions, and propose measures which the

United States and the Federated States of Micronesia should take

in order better to prevent and prosecute violations of the laws

of the United States and the Federated States of Micronesia. The

reports required under section 2291(e) (!1) of title 22 shall

include relevant information concerning the Federated States of

Micronesia.

(b) Economic development plans review process

(1) Submission

Notwithstanding section 211(b) of the Compact, the President

may agree to an effective date for the Compact pursuant to

section 1901(a) of this title if the Government of the Federated

States of Micronesia agrees to submit economic development plans

consistent with section 211(b) of the Compact to the Government

of the United States for concurrence at intervals no greater than

every 5 years for the duration of the Compact. Any capital

construction project and any planned independent purchase of

aircraft which is to be financed (directly or indirectly) through

the use of funds provided under section 211 of the Compact shall

be identified in the economic development plans.

(2) United States Government review

The United States shall not concur in those development plans

described in paragraph (1) of this subsection until -

(A) after the President of the United States has conducted a

review and reported the findings of the President to the

Congress; and

(B) the Congress has had 30 days (excluding days on which

both Houses of Congress are not in session) to review the

findings of the President.

(3) Report

The President shall complete the review under paragraph (2) and

shall report the findings no later than 60 days after the

President's receipt of such plans.

(4) Views and comments

The report shall include the views of the Secretary of the

Interior, the Administrator of the Agency for International

Development, and the heads of such other Executive departments as

the President may decide to include in the report, as well as any

comments which the Federated States of Micronesia may wish to

have included.

(c) Agreement on audits

In accordance with section 233 of the Compact, the President of

the United States, in consultation with the Comptroller General of

the United States, shall negotiate with the Government of the

Federated States of Micronesia modifications to the "Agreement

Concerning Procedures for the Implementation of United States

Economic Assistance, Programs and Services Provided in the Compact

of Free Association", which shall provide as follows:

(1) General authority of the GAO 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 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 233 of the 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) GAO 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) Representative status for GAO representatives

The Comptroller General and his duly authorized representatives

shall be accorded the status set forth in Article V of Title One

of the Compact.

(4) Annual financial statements

As part of the annual report submitted by the Government of the

Federated States of Micronesia under section 211 of the Compact,

the Government shall include annual financial statements which

account for the use of all of the funds provided by the

Government of the United States to the Government under the

Compact or otherwise. Such financial statements shall be prepared

in accordance with generally accepted accounting procedures,

except as may otherwise be mutually agreed. Not later than 180

days after the end of the United States fiscal year with respect

to which such funds were provided, each such statement shall be

submitted to the President for audit and transmission to the

Congress.

(5) "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 Compact,

or any related agreement entered into under the 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.

(6) 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.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 102, Jan. 14, 1986, 99 Stat. 1775.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out as a note under section 1901 of this title.

This joint resolution, referred to in subsecs. (a)(3) and (c)(6),

is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as amended, known

as the Compact of Free Association Act of 1985, which is classified

principally to this subchapter and chapter 19 (Sec. 2001 et seq.)

of this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1901 of this title and

Tables.

Section 2291(e) of title 22, referred to in subsec. (a)(4), was

repealed and section 2291(i) of title 22, relating to definitions,

was redesignated section 2291(e) by Pub. L. 102-583, Sec. 6(b)(2),

(3), Nov. 2, 1992, 106 Stat. 4932. See sections 2291h and 2291i of

Title 22, Foreign Relations and Intercourse.

For Oct. 21, 1986, as the effective date of the Compact of Free

Association with the Marshall Islands, and Nov. 3, 1986, as the

effective date of the Compact of Free Association with the

Federated States of Micronesia, referred to in subsec. (b)(1), see

Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out as a note

under section 1801 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which reports required under subsecs. (a)(4) and (c)(4) of this

section are listed as the 12th and last items on page 37), see

section 3003 of Pub. L. 104-66, as amended, set out as a note under

section 1113 of Title 31, Money and Finance.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1901, 1905, 1910, 1931,

1955 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

48 USC Sec. 1903 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1903. Agreements with and other provisions related to Marshall

Islands

-STATUTE-

(a) Law enforcement assistance

(1) Agreement

The President of the United States shall negotiate with the

Government of the Marshall Islands an agreement pursuant to

section 175 of the Compact which is in addition to the Agreement

pursuant to such section dated May 30, 1982, and transmitted to

the Congress by the President on February 20, 1985. Such

additional agreement shall provide as follows:

(A) Mutual assistance in law enforcement

The law enforcement agencies of the United States and the

Marshall Islands shall assist one another, as mutually agreed,

in the prevention and investigation of crimes and the

enforcement of the laws of the United States and the Marshall

Islands specified in subparagraph (C) of this paragraph. The

United States and the Marshall Islands will authorize mutual

assistance with respect to investigations, inquiries, audits

and related activities by the law enforcement agencies of both

Governments in the United States and the Marshall Islands. In

conducting activities authorized in accordance with this

section, the United States and the Marshall Islands will act in

accordance with the constitution and laws of the jurisdiction

in which such activities are conducted.

(B) Narcotics and control of illegal substances

The United States and the Marshall Islands will take all

reasonable and necessary steps, as mutually agreed, based upon

consultations in which the Attorney General or other designated

official of each Government participates, to prevent the use of

the lands, waters, and facilities of the United States or the

Marshall Islands for the purposes of cultivation of, production

of, smuggling of, trafficking in, and abuse of any controlled

substance as defined in section 802(6) of title 21 and

Schedules I through V of Subchapter II of the Controlled

Substances Act of the Marshall Islands, or for the distribution

of any such substance to or from the Marshall Islands or to or

from the United States or any of its territories or

commonwealths.

(C) Other criminal laws

Assistance provided pursuant to this subsection shall also

extend to, but not be limited to, prevention and prosecution of

violations of the laws of the United States and the laws of the

Marshall Islands related to terrorism, espionage, racketeer

influenced and corrupt organizations, and financial

transactions which advance the interests of any person engaging

in unlawful activities, as well as the schedule of offenses set

forth in Appendix A of the subsidiary agreement to section 175

of the Compact.

(2) Technical and training assistance

Pursuant to sections 224 and 226 of the 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 1905(l) of

this title may be used to reimburse State or local agencies

providing such assistance.

(3) Consultation

Any official, designated by this joint resolution or by the

President to negotiate any agreement under this section, shall

consult with affected law enforcement agencies prior to entering

into such an agreement on behalf of the United States.

(4) Report

The President shall report annually to Congress on the

implementation of this subsection. Such report shall provide

statistical and other information about the incidence of crimes

in the Marshall Islands which have an impact upon United States

jurisdictions, and propose measures which the United States and

the Marshall Islands should take in order better to prevent and

prosecute violations of the laws of the United States and the

Marshall Islands. The reports required under section 2291(e) (!1)

of title 22 shall include relevant information concerning the

Marshall Islands.

(b) Economic development plans review process

(1) Submission

Notwithstanding section 211(b) of the Compact, the President

may agree to an effective date for the Compact pursuant to

section 1901(b) of this title if the Government of the Marshall

Islands agrees to submit economic development plans consistent

with section 211(b) of the Compact to the Government of the

United States for concurrence at intervals no greater than every

5 years for the duration of the Compact. Any capital construction

project and any planned independent purchase of aircraft which is

to be financed (directly or indirectly) through the use of funds

provided under section 211 of the Compact shall be identified in

the economic development plans.

(2) United States Government review

The United States shall not concur in those development plans

described in paragraph (1) of this subsection until -

(A) after the President of the United States has conducted a

review and reported the findings of the President to the

Congress; and

(B) the Congress has had 30 days (excluding days on which

both Houses of Congress are not in session) to review the

findings of the President.

(3) Report

The President shall complete the review under paragraph (2) and

shall report the findings no later than 60 days after the

President's receipt of such plans.

(4) Views and comments

The report shall include the views of the Secretary of the

Interior, the Administrator of the Agency for International

Development, and the heads of such other Executive departments as

the President may decide to include in the report, as well as any

comments which the Marshall Islands may wish to have included.

(c) Ejit

(1) 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) 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) 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.

(d) Kwajalein payments

(1) Statement of policy

The Congress of the United States hereby declares that it is

the policy of the United States that payment of funds by the

Government of the Marshall Islands to the landowners of Kwajalein

Atoll in accordance with the land use agreement dated October 19,

1982, and the related allocation agreements, is required in order

to ensure that the Government of the United States will be able

to fulfill its obligations and responsibilities under Title Three

of the Compact and the subsidiary agreements concluded pursuant

thereto.

(2) Failure to pay

In the event that the Government of the Marshall Islands fails

to make payments in accordance with paragraph (1) of this

subsection, the Government of the United States shall initiate

procedures under Section 313 of the Compact and consult with the

Government of the Marshall Islands with respect to the basis for

such non-payment of funds. The United States shall expeditiously

resolve the matter of any non-payment of funds as described in

paragraph (1) of this subsection pursuant to Section 313 of the

Compact and the authority and responsibility of the Government of

the United States for security and defense matters in or relating

to the Marshall Islands. This paragraph shall be enforced, as may

be necessary, in accordance with section 1905(g)(2) of this

title.

(3) Assistance

The President is hereby authorized to make loans and grants to

the Government of the Marshall Islands for the sole use of the

Kwajalein Atoll Development Authority for the benefit of the

Kwajalein landowners of amounts sought by such authority for

development purposes, pursuant to a development plan for

Kwajalein Atoll which such authority has adopted in accordance

with applicable laws of the Marshall Islands. Such loans and

grants shall be subject to such other terms and conditions as the

President, in his discretion, may determine appropriate and

necessary.

(e) Section 177 Agreement

(1) 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 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) 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) 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) An annual report concerning all actions of the Fund Manager

pursuant to the Section 177 Agreement and this joint resolution,

including information prepared by the Fund Manager, shall be

transmitted by the Government of the Marshall Islands to the

Congress. Such report shall include such information (whether

received from the Fund Manager or any other source) as relates to

the disbursements provided for in Article II of the Section 177

Agreement. Such report shall be made public.

(f) Nuclear test effects

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),(!2) $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.

(g) Espousal provisions

(1) 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 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.

(h) 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 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 174 members of the population of Rongelap and Utrik

who were exposed to radiation resulting from the 1954 United

States thermonuclear "Bravo" test, pursuant to Public Laws 95-134

and 96-205. Such medical care and its accompanying logistical

support shall total $22,500,000 over the first 11 years of the

Compact.

(2) Agricultural and food programs

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, Rongelap, Utrik, 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

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.

(i) Rongelap

(1) 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) 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) 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.

(j) Four atoll health care program

(1) 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 and

Public Law 96-205 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) 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) 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.

(k) Enjebi Community Trust Fund

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

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

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 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 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

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

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.

(l) Bikini Atoll cleanup

(1) Declaration of policy

The Congress hereby determines and declares 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 paragraphs (2) and (3) of this

subsection.

(2) Cleanup funds

There are hereby authorized to be appropriated such sums as are

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

The funds referred to in paragraph (2) shall 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.

(m) Agreement on audits

In accordance with section 233 of the Compact, the President of

the United States, in consultation with the Comptroller General of

the United States, shall negotiate with the Government of the

Marshall Islands an agreement which shall provide as follows:

(1) General authority of GAO 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 Marshall Islands under

Articles I and II of Title Two of the Compact; and

(ii) any other assistance provided by the Government of the

United States to the Government 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 233 of the 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) GAO 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 Marshall

Islands.

(3) Representative status for GAO representatives

The Comptroller General and his duly authorized representatives

shall be accorded the status set forth in Article V of Title One

of the Compact.

(4) Annual financial statements

As part of the annual report submitted by the Government of the

Marshall Islands under section 211 of the Compact, the Government

shall include annual financial statements which account for the

use of all of the funds provided by the Government of the United

States to the Government under the Compact or otherwise. Such

financial statements shall be prepared in accordance with

generally accepted accounting procedures, except as may otherwise

be mutually agreed. Not later than 180 days after the end of the

United States fiscal year with respect to which such funds were

provided, each such statement shall be submitted to the President

for audit and transmission to the Congress.

(5) "Audits" defined

As used in this subsection, the term "audits" includes

financial, program, and management audits, including determining

-

(A) whether the Government of the Marshall Islands has met

the requirements set forth in the Compact, or any related

agreement entered into under the 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 Marshall Islands pursuant to such grants or

assistance.

(6) Cooperation by Marshall Islands

The Government 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.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 103, Jan. 14, 1986, 99 Stat. 1778;

Pub. L. 100-446, title I, Sec. 115, Sept. 27, 1988, 102 Stat. 1802;

Pub. L. 102-247, title III, Sec. 304, Feb. 24, 1992, 106 Stat. 39;

Pub. L. 105-209, Sec. 2, July 29, 1998, 112 Stat. 880.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out as a note under section 1901 of this title.

This joint resolution, referred to in subsecs. (a)(3), (e)(5),

(k), and (m)(6), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770,

as amended, known as the Compact of Free Association Act of 1985,

which is classified principally to this subchapter and chapter 19

(Sec. 2001 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title note set out under section

1901 of this title and Tables.

Section 2291(e) of title 22, referred to in subsec. (a)(4), was

repealed and section 2291(i) of title 22, relating to definitions,

was redesignated section 2291(e) by Pub. L. 102-583, Sec. 6(b)(2),

(3), Nov. 2, 1992, 106 Stat. 4932. See sections 2291h and 2291i of

Title 22, Foreign Relations and Intercourse.

For Oct. 21, 1986, as the effective date of the Compact of Free

Association with the Marshall Islands, and Nov. 3, 1986, as the

effective date of the Compact of Free Association with the

Federated States of Micronesia, referred to in subsecs. (b)(1),

(e)(4), (h)(2), and (j)(2), (3), see Proc. No. 5564, Nov. 3, 1986,

51 F.R. 40399, set out as a note under section 1801 of this title.

Public Law 95-134, referred to in subsecs. (h)(1) and (j)(1), is

Pub. L. 95-134, Oct. 15, 1977, 91 Stat. 1159, as amended, popularly

known as the Omnibus Territories Act of 1977. For complete

classification of this Act to the Code, see Tables.

Public Law 96-205, referred to in subsecs. (h)(1) and (j)(1), is

Pub. L. 96-205, Mar. 12, 1980, 94 Stat. 84, as amended. For

complete classification of this Act to the Code, see Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

AMENDMENTS

1998 - Subsec. (h)(2). Pub. L. 105-209, Sec. 2(1), substituted

"fifteen years" for "ten years" in introductory provisions.

Subsec. (h)(2)(B). Pub. L. 105-209, Sec. 2(2), inserted at end

"The President shall ensure the assistance provided under these

programs reflects the changes in the population since the inception

of such programs."

1992 - Subsec. (h)(2). Pub. L. 102-247 substituted "ten years"

for "five years" in introductory provisions.

1988 - Subsec. (h)(2). Pub. L. 100-446, in introductory

provisions, inserted "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" after "United States firm" and, in subpar. (B), inserted

", Rongelap, Utrik," after "Bikini".

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which reports required under subsecs. (a)(4), (e)(5), and (m)(4) of

this section are listed, respectively, as the 2nd item on page 38,

the 16th item on page 115, and the 12th item on page 37), see

section 3003 of Pub. L. 104-66, as amended, set out as a note under

section 1113 of Title 31, Money and Finance.

TAX EXEMPTION FOR ENJEBI COMMUNITY TRUST FUND

Pub. L. 100-647, title VI, Sec. 6136, Nov. 10, 1988, 102 Stat.

3723, provided that:

"(a) In General. - Any earnings on, and distributions from, the

Enjebi Community Trust Fund created under section 103 of the

Compact of Free Association Act of 1985 [48 U.S.C. 1903] shall be

exempt from all Federal, State, or local taxation.

"(b) Effective Date. - The provisions of subsection (a) shall

apply to all taxable years whether beginning before, on, or after

the date of the enactment of this Act [Nov. 10, 1988]."

MEDICAL CARE AND TREATMENT AND ENVIRONMENTAL RESEARCH AND

MONITORING PROGRAM FOR INHABITANTS OF BIKINI, ETC., ATOLLS FOR

INJURY, ILLNESS, OR CONDITION RESULTING FROM NUCLEAR WEAPONS

TESTING BY UNITED STATES; IMPLEMENTATION PLAN AND REPORT

Pub. L. 95-134, title I, Sec. 106, as added by Pub. L. 96-205,

title I, Sec. 102, Mar. 12, 1980, 94 Stat. 84; amended by Pub. L.

96-88, title V, Sec. 509(b), Oct. 17, 1979, 93 Stat. 695, provided

that:

"(a) In addition to any other payments or benefits provided by

law to compensate inhabitants of the atolls of Bikini, Enewetak,

Rongelap, and Utirik, in the Marshall Islands, for radiation

exposure or other losses sustained by them as a result of the

United States nuclear weapons testing program at or near their

atolls during the period 1946 to 1958, the Secretary of the

Interior (hereinafter in this section referred to as the

'Secretary') shall provide for the people of the atolls of Bikini,

Enewetak, Rongelap, and Utirik and for the people of such other

atolls as may be found to be or to have been exposed to radiation

from the nuclear weapons testing program, a program of medical care

and treatment and environmental research and monitoring for any

injury, illness, or condition which may be the result directly or

indirectly of such nuclear weapons testing program. The program

shall be implemented according to a plan developed by the Secretary

in consultation with the Secretaries of Defense, Energy, and Health

and Human Services and with the direct involvement of

representatives from the people of each of the affected atolls and

from the government of the Marshall Islands. The plan shall set

forth, as appropriate to the situation, condition, and needs of the

individual atoll peoples:

"(1) an integrated, comprehensive health care program including

primary, secondary, and tertiary care with special emphasis upon

the biological effects of ionizing radiation;

"(2) a schedule for the periodic comprehensive survey and

analysis of the radiological status of the atolls to and at

appropriate intervals, but not less frequently than once every

five years, the development of an updated radiation dose

assessment, together with an estimate of the risks associated

with the predicted human exposure, for each such atoll; and

"(3) an education and information program to enable the people

of such atolls to more fully understand nuclear radiation and its

effects;

"(b)(1) The Secretary shall submit the plan to the Congress no

later than January 1, 1981, together with his recommendations, if

any, for further legislation. The plan shall set forth the specific

agencies responsible for implementing the various elements of the

plan. With respect to general health care the Secretary shall

consider, and shall include in his recommendations, the feasibility

of using the Public Health Service. After consultation with the

Chairman of the National Academy of Sciences, the Secretary of

Energy, the Secretary of Defense, and the Secretary of Health and

Human Services, the Secretary shall establish a scientific advisory

committee to review and evaluate the implementation of the plan and

to make such recommendations for its improvement as such committee

deems advisable.

"(2) At the request of the Secretary, any Federal agency shall

provide such information, personnel, facilities, logistical

support, or other assistance as the Secretary deems necessary to

carry out the functions of this program; the costs of all such

assistance shall be reimbursed to the provider thereof out of the

sums appropriated pursuant to this section.

"(3) All costs associated with the development and implementation

of the plan shall be assumed by the Secretary of Energy and

effective October 1, 1980, there are authorized to be appropriated

to the Secretary of Energy such sums as may be necessary to achieve

the purposes of this section.

"(c) The Secretary shall report to the appropriate committees of

the Congress, and to the people of the affected atolls annually, or

more frequently if necessary, on the implementation of the plan.

Each such report shall include a description of the health status

of the individuals examined and treated under the plan, an

evaluation by the scientific advisory committee, and any

recommendations for improvement of the plan. The first such report

shall be submitted not later than January 1, 1982."

Pub. L. 98-213, Sec. 8, Dec. 8, 1983, 97 Stat. 1460, provided

that: "The Secretary of the Interior is directed to implement the

health care program required by section 106 of Public Law 95-134

(91 Stat. 1159) [set out above] for the populations of the four

atolls in the Marshall Islands identified in such section

immediately upon enactment of this section and shall promptly

notify the Committee on Interior and Insular Affairs and the

Committee on Appropriations of the House of Representatives and the

Committee on Energy and Natural Resources and the Committee on

Appropriations of the Senate if he finds that the populations of

other atolls should be included in the program setting forth the

basis for his finding and the estimated cost of extension of the

program. The Secretary of Energy shall transmit annually to the

Committees on Interior and Insular Affairs [now Committee on

Resources] and Appropriations of the House of Representatives and

the Committees on Energy and Natural Resources and Appropriations

of the Senate together with the proposed budget for the next fiscal

year, a description of the program and the estimated costs for

implementation together with any recommendations which he may have

for improvements in such program."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1901, 1905, 1910, 1933,

1955 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. The comma probably should be a semicolon.

-End-

-CITE-

48 USC Sec. 1904 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1904. Interpretation of and United States policy regarding

Compact of Free Association

-STATUTE-

(a) Human rights

In approving the 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 Marshall Islands. The Congress also

notes and specifically endorses the preamble to the Compact, which

affirms that the governments of the parties to the 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 Marshall Islands.

(b) Immigration

The rights of a bona fide naturalized citizen of the Marshall

Islands or the Federated States of Micronesia to enter the United

States, to lawfully engage therein in occupations, and to establish

residence therein as a non-immigrant, pursuant to the provisions of

section 141(a)(3) of the Compact, shall not 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.

(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 Marshall Islands to regulate, in

accordance with their Constitutions and laws, the alienation of

permanent and long-term interests in real property so as to

restrict the acquisition of such interests to persons of Federated

States of Micronesia citizenship and Marshall Islands citizenship,

respectively.

(d) Nuclear waste disposal

In approving the Compact, the Congress understands that the

Government of the Federated States of Micronesia and the Government

of the Marshall Islands will not permit any other government or any

nongovernmental party to conduct, in the Marshall Islands or in the

Federated States of Micronesia, any of the activities specified in

subsection (a) of section 314 of the Compact.

(e) Impact of Compact on U.S. areas

(1) Statement of congressional intent

In approving the Compact, it is not the intent of the Congress

to cause any adverse consequences for the United States

territories and commonwealths or the State of Hawaii.

(2) Annual reports and recommendations

One year after January 14, 1986, and at one year intervals

thereafter, the Governor of any of the United States territories

or commonwealths or the State of Hawaii may report to the

Secretary of the Interior by February 1 of each year with respect

to the impacts of the compacts of free association on the

Governor's respective jurisdiction. The Secretary of the Interior

shall review and forward any such reports to the Congress with

the comments of the Administration. The Secretary of the Interior

shall, either directly or, subject to available technical

assistance funds, through a grant to the affected jurisdiction,

provide for a census of Micronesians at intervals no greater than

5 years from each decennial United States census using generally

acceptable statistical methodologies for each of the impact

jurisdictions where the Governor requests such assistance, except

that the total expenditures to carry out this sentence may not

exceed $300,000 in any year. Reports submitted pursuant to this

paragraph (hereafter in this subsection referred to as "reports")

shall identify any adverse consequences resulting from the

Compact and shall make recommendations for corrective action to

eliminate those consequences. The reports shall pay particular

attention to matters relating to trade, taxation, immigration,

labor laws, minimum wages, social systems and infrastructure, and

environmental regulation. With regard to immigration, the reports

shall include statistics concerning the number of persons

availing themselves of the rights described in section 141(a) of

the Compact during the year covered by each report. With regard

to trade, the reports shall include an analysis of the impact on

the economy of American Samoa resulting from imports of canned

tuna into the United States from the Federated States of

Micronesia and the Marshall Islands.

(3) Other views

In preparing the reports, the President shall request the views

of the Government of the State of Hawaii, and the governments of

each of the United States territories and commonwealths, the

Federated States of Micronesia, the Marshall Islands, and Palau,

and shall transmit the full text of any such views to the

Congress as part of such reports.

(4) Commitment of Congress to redress adverse consequences

The Congress hereby declares that, if any adverse consequences

to United States territories and commonwealths or the State of

Hawaii result from implementation of the Compact of Free

Association, the Congress will act sympathetically and

expeditiously to redress those adverse consequences.

(5) "United States territories and commonwealths" defined

As used in this subsection, the term "United States territories

and commonwealths" means the Commonwealth of Puerto Rico, the

Virgin Islands, Guam, American Samoa, and the Commonwealth of the

Northern Mariana Islands.

(6) Impact costs

There are hereby authorized to be appropriated for fiscal years

beginning after September 30, 1985, such sums as may be necessary

to cover the costs, if any, incurred by the State of Hawaii, the

territories of Guam and American Samoa, and the Commonwealth of

the Northern Mariana Islands resulting from any increased demands

placed on educational and social services by immigrants from the

Marshall Islands and the Federated States of Micronesia.

(f) Fisheries management

In clarification of Title One, Article II, section 121(b)(1) of

the Compact:

(1) Nothing in the Compact or this joint resolution shall be

interpreted as recognition by the United States of any claim by

the Federated States of Micronesia or by the Marshall Islands to

jurisdiction or authority over highly migratory species of fish

during the time such species of fish are found outside the

territorial sea of the Federated States of Micronesia or the

Marshall Islands.

(2) It is the understanding of Congress that none of the monies

made available pursuant to the Compact or this joint resolution

will be used by either the Federated States of Micronesia or the

Marshall Islands for enforcement actions against any vessel of

the United States on the basis of fishing by any such vessel for

highly migratory species of fish outside the territorial sea of

the Federated States of Micronesia or the Marshall Islands,

respectively, in the absence of a licensing agreement.

(3) Appropriate United States officials shall apply the

policies and provisions of the Magnuson-Stevens Fishery

Conservation and Management Act (16 U.S.C. 1801 et seq.) and the

Fishermen's Protective Act of 1967 (22 U.S.C. 1971 et seq.) with

regard to any action taken by the Federated States of Micronesia

or the Marshall Islands affecting any vessel of the United States

engaged in fishing for highly migratory species of fish in waters

outside the territorial seas of the Federated States of

Micronesia or the Marshall Islands, respectively. For the purpose

of applying the provisions of section 5 of the Fishermen's

Protective Act of 1967 (22 U.S.C. 1975), monies made available to

either the Federated States of Micronesia or the Marshall Islands

pursuant to the provisions of the Compact or this joint

resolution shall be treated as "assistance to the government of

such country under the Foreign Assistance Act of 1961" [22 U.S.C.

2151 et seq.]. For purposes of this Act only, certification by

the President in accordance with such section 5 shall be

accompanied by a report to Congress on the basis for such

certification, and such certification shall have no effect if by

law Congress so directs prior to the expiration of 60 days during

which Congress is in continuous session following the date of

such certification.

(4) For the purpose of paragraphs (1) and (3) of this

subsection -

(A) The term "vessel of the United States" has the same

meaning as provided in the first section of the Fishermen's

Protective Act of 1967 (22 U.S.C. 1971).

(B) The terms "fishing" and "highly migratory species" have

the same meanings as provided in paragraphs (10) and (14),(!1)

respectively, of section 3 of the Magnuson-Stevens Fishery

Conservation and Management Act (16 U.S.C. 1802(10) and (14)).

(5)(A) It is the policy of the United States of America -

(i) to negotiate and conclude with the governments of the

Central, Western, and South Pacific Ocean, including the

Federated States of Micronesia and the Marshall Islands, a

regional licensing agreement setting forth agreed terms of

access for United States tuna vessels fishing in the region;

and

(ii) that such an agreement should overcome existing

jurisdictional differences and provide for a mutually

beneficial relationship between the United States and the

Pacific Island States that will promote the development of the

tuna and other latent fisheries resources of the Central,

Western, and South Pacific Ocean and the economic development

of the region.

(B) At such time as an agreement referred to in subparagraph

(A) is submitted to the Senate for advice and consent to

ratification, the Secretary of State, after consultation with the

Secretary of Commerce and other interested agencies and concerned

governments, shall submit to the Congress a proposed long term

regional fisheries development program which may include, but not

be limited to -

(i) exploration for, and stock assessment of, tuna and other

fish;

(ii) improvement of harvesting techniques;

(iii) gear development;

(iv) biological resource monitoring;

(v) education and training in the field of fisheries; and

(vi) regional and direct bilateral assistance in the field of

fisheries.

(g) 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 Marshall Islands.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 104, Jan. 14, 1986, 99 Stat. 1788;

Pub. L. 104-208, div. A, title I, Sec. 101(a) [title II, Sec.

211(b)], Sept. 30, 1996, 110 Stat. 3009, 3009-41; Pub. L. 106-504,

Sec. 2, Nov. 13, 2000, 114 Stat. 2311.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out as a note under section 1901 of this title.

This joint resolution and this Act, referred to in subsec. (f)(1)

to (3), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as

amended, known as the Compact of Free Association Act of 1985,

which is classified principally to this subchapter and chapter 19

(Sec. 2001 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title note set out under section

1901 of this title and Tables.

The Magnuson-Stevens Fishery Conservation and Management Act,

referred to in subsec. (f)(3), is Pub. L. 94-265, Apr. 13, 1976, 90

Stat. 331, as amended, which is classified principally to chapter

38 (Sec. 1801 et seq.) of Title 16, Conservation. For complete

classification of this Act to the Code, see Short Title note set

out under section 1801 of Title 16 and Tables.

The Fishermen's Protective Act of 1967, referred to in subsec.

(f)(3), is act Aug. 27, 1954, ch. 1018, 68 Stat. 883, as amended,

which is classified generally to chapter 25 (Sec. 1971 et seq.) of

Title 22, Foreign Relations and Intercourse. For complete

classification of this Act to the Code, see Short Title note set

out under section 1971 of Title 22 and Tables.

The Foreign Assistance Act of 1961, referred to in subsec.

(f)(3), is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended,

which is classified principally to chapter 32 (Sec. 2151 et seq.)

of Title 22. For complete classification of this Act to the Code,

see Short Title note set out under section 2151 of Title 22 and

Tables.

Section 3 of the Magnuson-Stevens Fishery Conservation and

Management Act [16 U.S.C. 1802], referred to in subsec. (f)(4)(B),

was subsequently amended, and section 3(10) and (14) no longer

define the terms "fishing" and "highly migratory species". However,

such terms are defined elsewhere in that section.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

AMENDMENTS

2000 - Subsec. (e)(2). Pub. L. 106-504 substituted "Governor of

any of the United States territories or commonwealths or the State

of Hawaii may report to the Secretary of the Interior by February 1

of each year with respect to the impacts of the compacts of free

association on the Governor's respective jurisdiction. The

Secretary of the Interior shall review and forward any such reports

to the Congress with the comments of the Administration. The

Secretary of the Interior shall, either directly or, subject to

available technical assistance funds, through a grant to the

affected jurisdiction, provide for a census of Micronesians at

intervals no greater than 5 years from each decennial United States

census using generally acceptable statistical methodologies for

each of the impact jurisdictions where the Governor requests such

assistance, except that the total expenditures to carry out this

sentence may not exceed $300,000 in any year." for "President shall

report to the Congress with respect to the impact of the Compact on

the United States territories and commonwealths and on the State of

Hawaii.".

1996 - Subsec. (f)(3), (4)(B). Pub. L. 104-208 substituted

"Magnuson-Stevens Fishery" for "Magnuson Fishery".

EFFECTIVE DATE OF 1996 AMENDMENT

Section 101(a) [title II, Sec. 211(b)] of div. A of Pub. L.

104-208 provided that the amendment made by that section is

effective 15 days after Oct. 11, 1996.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1804, 1932 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

48 USC Sec. 1905 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1905. Supplemental provisions

-STATUTE-

(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 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 Federated States of Micronesia and Marshall

Islands

(1) The United States representatives to the Federated States of

Micronesia and the Republic of the Marshall Islands pursuant to

Article V of title I of the Compact shall be appointed by the

President with the advice and consent of the Senate, and shall be

under the supervision of the Secretary of State, who shall have

responsibility for government to government relations between the

United States and the Government with respect to whom they are

appointed, consistent with the authority of the Secretary of the

Interior as set forth in this section.

(2) Except for programs or services provided by or through other

federal agencies or officials to the Federated States of Micronesia

or the Republic of the Marshall Islands, or for which residents

thereof are eligible pursuant to the Compact or any other provision

of this joint resolution, appropriations made pursuant to the

Compact or any other provision of this joint resolution may be made

only to the Secretary of the Interior. The Secretary of the

Interior shall coordinate and monitor any programs or activities,

including such activities for which funding is made directly to

such other agencies, provided to the Federated States of Micronesia

or the Republic of the Marshall Islands by agencies of the

Government of the United States and related economic development

planning pursuant to the Compact or pursuant to any other

authorization except for the provisions of sections 161(e), 313,

and 351 of the Compact and the authorization of the President to

agree to an effective date pursuant to this resolution. Funds

appropriated to the Secretary of the Interior pursuant to this

paragraph shall not be allocated to other Departments or agencies,

except that the Secretary of the Interior shall be able to

reimburse Departments or agencies for purposes authorized by this

joint resolution.

(3) All programs and services provided to the Federated States of

Micronesia and the Republic of the Marshall Islands by Federal

agencies may be provided only after consultation with and under the

supervision of the Secretary of the Interior, and the head of each

Federal agency is directed to cooperate with the Secretary of the

Interior and to make such personnel and services available as the

Secretary of the Interior may request.

(4) Any United States Government personnel assigned, on a

temporary or permanent basis, to either the Federated States of

Micronesia or the Marshall Islands shall, during the period of such

assignment, be subject to the supervision of the United States

representative to that area.

(5) The President is hereby authorized to appoint an Interagency

Group on Freely Associated States' Affairs to provide policy

guidance to federal departments and agencies. Such interagency

group shall include the Secretary of the Interior and the Secretary

of State.

(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 Marshall Islands for the following purposes:

(1) Prior to October 1, 1986, for any purpose authorized by the

Compact or this joint resolution.

(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:

(1) For fiscal year 1987, an amount not to exceed 75 per

centum of the total amount appropriated for such programs for

fiscal year 1986;

(2) For fiscal year 1988, an amount not to exceed 50 per

centum of the total amount appropriated for such programs for

fiscal year 1986;

(3) 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) Medical referral debts

(1) Federated States of Micronesia

In addition to the funds provided in Title Two, Article II,

section 221(b) of the Compact, following approval of the Compact

with respect to the Federated States of Micronesia, the United

States shall make available to the Government of the Federated

States of Micronesia such sums as may be necessary for the

payment of the obligations incurred for the use of medical

facilities in the United States, including any territories and

commonwealths, by citizens of the Federated States of Micronesia

before September 1, 1985.

(2) Marshall Islands

In addition to the funds provided in Title Two, Article II,

section 221(b) of the Compact, following approval of the Compact

with respect to the Marshall Islands, the United States shall

make available to the Government of the Marshall Islands such

sums as may be necessary for the payment of the obligations

incurred for the use of medical facilities in the United States,

its territories and commonwealths by citizens of the Marshall

Islands before September 1, 1985.

(3) Use of funds

In making funds available pursuant to this subsection, the

President shall take such actions as he deems necessary to assure

that the funds are used only for the payment of the medical

expenses described in paragraph (1) or (2) of this subsection, as

the case may be.

(4) Authorization of appropriations

There are hereby authorized to be appropriated such sums as may

be necessary for the purposes of this subsection.

(e) Survivability

In furtherance of the provisions of Title Four, Article V,

sections 452 and 453 of the Compact, any provisions of the Compact

which remain effective after the termination of the Compact by the

act of any party thereto and which are affected in any manner by

provisions of this subchapter shall remain subject to such

provisions.

(f) Registration for agents of Governments of Federated States of

Micronesia and Marshall Islands

(1) In general

Notwithstanding the provisions of Title One, Article V, section

153 of the Compact, after approval of the Compact any citizen of

the United States who, without authority of the United States,

acts as the agent of the Government of the Marshall Islands or

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 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 and the Marshall Islands shall be

considered to be foreign countries.

(2) Exception

Paragraph (1) of this subsection shall not apply to a citizen

of the United States employed by either the Government of the

Marshall Islands or the Government of the Federated States of

Micronesia with respect to whom the employing Government from

time to time certifies to the Government of the United States

that such citizen is an employee of the Government of the

Marshall Islands or the Government of the Federated States of

Micronesia (as the case may be) whose principal duties are other

than those matters specified in 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. 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.

(3) Resident representative exemption

Nothing in this subsection shall be construed as amending

Section 152(b) of the Compact.

(g) Noncompliance sanctions

(1) Authority of President

The President of the United States shall have no authority to

suspend or withhold payments or assistance with respect to -

(A) section 177, 213, 216(a)(2), 216(a)(3), 221(b), or 223 of

the Compact, or

(B) any agreements made pursuant to such sections of the

Compact,

unless such suspension or withholding is imposed as a sanction

due to noncompliance by the Government of the Federated States of

Micronesia or the Government of the Marshall Islands (as the case

may be) with the obligations and requirements of such sections of

the Compact or such agreements.

(2) Actions incompatible with United States authority

The Congress expresses its understanding that the Governments

of the Federated States of Micronesia and 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 Marshall Islands pursuant to the Compact, including the

agreements referred to in sections 462(j) and 462(k) thereof. 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 Compact. The Government of the

United States reserves the right in the event of such a material

breach of the Compact by the Government of the Federated States

of Micronesia or the Government 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.

(h) Continuing programs and laws

(1) Federated States of Micronesia and Marshall Islands

In addition to the programs and services set forth in section

221 of the Compact, and pursuant to section 224 of the Compact,

the programs and services of the following agencies shall be made

available to the Federated States of Micronesia and to the

Marshall Islands:

(A) the Legal Services Corporation;

(B) the Public Health Service; and

(C) 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 Farmers Home

Loan Administration 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) Palau

Upon the effective date of the Compact, the laws of the United

States generally applicable to the Trust Territory of the Pacific

Islands shall continue to apply to the Republic of Palau and the

Republic of Palau shall be eligible for such proportion of

Federal assistance as it would otherwise have been eligible to

receive under such laws prior to the effective date of the

Compact, as provided in appropriation Acts or other Acts of

Congress.

(3) Section 219 determination

The determination by the Government of the United States under

section 219 of the Compact shall be as provided in appropriation

Acts.

(4) Tort claims

(A) At such time as the Trusteeship Agreement ceases to apply

to either the Federated States of Micronesia or the Marshall

Islands, the provisions of Section 178 of the Compact regarding

settlement and payment of tort claims shall apply to employees of

any federal agency of the Government of the United States which

provides any service or carries out any other function pursuant

to or in furtherance of any provisions of the Compact or this

Act, 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. For purposes of this

subparagraph (B),(!1) persons providing such service or carrying

out such function pursuant to a contract with a federal agency

shall be deemed to be an employee of the contracting federal

agency.

(B) For purposes of the Federal Tort Claims Act (28 U.S.C. 2671

et seq.), persons providing services to the people of the atolls

of Bikini, Enewetak, Rongelap, and Utrik as described in Public

Law 95-134 and Public Law 96-205 pursuant to a contract with a

Department or agency of the federal government shall be deemed to

be an employee of the contracting Department or agency working in

the United States. This subparagraph (B) shall expire when the

Trusteeship Agreement is terminated with respect to the Marshall

Islands.

(5) Federal education grants

Pursuant to section 224 of the Compact or section 224 of the

Compact with Palau (as contained in title II of Public Law

99-658), the Pell Grant Program, the Supplemental Educational

Opportunity Grant Program, and the College Work-Study Program (as

authorized by title IV of the Higher Education Act of 1965 [20

U.S.C. 1070 et seq.; 42 U.S.C. 2751 et seq.]) shall be extended

to students who are, or will be, citizens of the Federated States

of Micronesia, or the Marshall Islands and who attend

postsecondary institutions in the United States, its territories

and commonwealths, the Trust Territory of the Pacific Islands,

the Federated States of Micronesia, or the Marshall Islands,

except that this paragraph shall not apply to any student

receiving assistance pursuant to section 223 of the Compact or

section 223 of the Compact with Palau (as contained in title II

of Public Law 99-658).

(5) (!2) PCB cleanup

The programs and services of the Environmental Protection

Agency regarding PCB's shall, to the extent applicable, as

appropriate, and in accordance with applicable law, be construed

to be made available to such islands.

(i) College of Micronesia; education programs

(1) College of Micronesia

Notwithstanding any other provision of law, all funds which as

of January 14, 1986, were appropriated for the use of the College

of Micronesia System shall remain available for use by such

college until expended. Until otherwise provided by Act of

Congress, or until termination of the Compact, such college shall

retain its status as a land-grant institution and its eligibility

for all benefits and programs available to such land-grant

institutions.

(2) Federal education programs

Pursuant to section 224 of the Compact and upon the request of

the affected Government, any Federal program providing financial

assistance for education which, as of January 1, 1985, was

providing financial assistance for education to the Federated

States of Micronesia or the Marshall Islands or to any

institution, agency, organization, or permanent resident thereof,

including the College of Micronesia System, shall continue to

provide such assistance to such institutions, agencies,

organizations, and residents as follows:

(A) For the fiscal year in which the Compact becomes

effective, not to exceed $13,000,000;

(B) For the fiscal year beginning after the end of the fiscal

year in which the Compact becomes effective, not to exceed

$8,700,000; and

(C) For the fiscal year immediately following the fiscal year

described in subparagraph (B), not to exceed $4,300,000.

(3) Authorization of appropriations

There are hereby authorized to be appropriated such sums as are

necessary for purposes of this subsection.

(j) 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.

(k) Use of DOD medical facilities

Following approval of the Compact, the Secretary of Defense shall

make available the medical facilities of the Department of Defense

for use by citizens of the Federated States of Micronesia and the

Marshall Islands who are properly referred to such facilities by

government authorities responsible for provision of medical

services in the Federated States of Micronesia and the Marshall

Islands. The Secretary of Defense is hereby authorized to cooperate

with such authorities in order to permit use of such medical

facilities for persons properly referred by such authorities. 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 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.

(l) Technical assistance

Technical assistance may be provided pursuant to section 226 of

the 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 Soil Conservation Service,

the Fish and Wildlife Service, the National Marine Fisheries

Service, the United States Coast Guard, and the Advisory Council on

Historic Preservation, the Department of the Interior, and other

agencies providing assistance under the National Historic

Preservation Act (80 Stat. 915; 16 U.S.C. 470-470t), shall be on a

nonreimbursable basis. During the period the Compact is in effect,

the grant programs under the National Historic Preservation Act

shall continue to apply to the Federated States of Micronesia and

the Marshall Islands in the same manner and to the same extent as

prior to the approval of the Compact. Funds provided pursuant to

sections 1902(a), 1903(a), 1903(c), 1903(h), 1903(i), 1903(j), and

1903(l) of this title and subsections (c), (i), (j), (k), (l), (m),

(n), and (o) of this section shall be in addition to and not

charged against any amounts to be paid to either the Federated

States of Micronesia or the Marshall Islands pursuant to the

Compact or the subsidiary agreements.

(m) 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.

(n) 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.

(o) 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 in designing and implementing such a program.

(p) Trust funds

The responsibilities of the United States with regard to

implementation of section 235 of the Compact shall be discharged by

the Secretary of the Interior, who shall consult with the

Government of the Marshall Islands and the designated beneficiaries

of the funds held in trust by the High Commissioner of the Trust

Territory of the Pacific Islands.

(q) Omitted

(r) User fees

Any person in the Federated States of Micronesia or the Marshall

Islands shall be liable for user fees, if any, for services

provided in the Federated States of Micronesia or 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.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 105, Jan. 14, 1986, 99 Stat. 1791;

Pub. L. 99-396, Sec. 20(a), Aug. 27, 1986, 100 Stat. 844; Pub. L.

99-658, title I, Sec. 104(c), Nov. 14, 1986, 100 Stat. 3676; Pub.

L. 100-369, Sec. 9, July 18, 1988, 102 Stat. 837; Pub. L. 102-486,

title XXVII, Sec. 2704, Oct. 24, 1992, 106 Stat. 3120.)

-REFTEXT-

REFERENCES IN TEXT

This joint resolution and this Act, referred to in subsecs. (a),

(b)(2), (c)(1), and (h)(4), is Pub. L. 99-239, Jan. 14, 1986, 99

Stat. 1770, as amended, known as the Compact of Free Association

Act of 1985, which is classified principally to this subchapter and

chapter 19 (Sec. 2001 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1901 of this title and Tables.

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out as a note under section 1901 of this title.

For Oct. 21, 1986, as the effective date of the Compact of Free

Association with the Marshall Islands, and Nov. 3, 1986, as the

effective date of the Compact of Free Association with the

Federated States of Micronesia, referred to in subsecs. (b)(2),

(c), (h)(2), (j), and (m), see Proc. No. 5564, Nov. 3, 1986, 51

F.R. 40399, set out as a note under section 1801 of this title.

Act of June 30, 1954, referred to in subsec. (c), is act June 30,

1954, ch. 423, 68 Stat. 330, as amended, which enacted sections

1681 and 1681b of this title and provisions set out as notes under

section 1681 of this title. For complete classification of this Act

to the Code, see Tables.

The Foreign Agents Registration Act of 1938, referred to in

subsec. (f)(1), (2), is act June 8, 1938, ch. 327, 52 Stat. 631, as

amended, which is classified generally to subchapter II (Sec. 611

et seq.) of chapter 11 of Title 22, Foreign Relations and

Intercourse. For complete classification of this Act to the Code,

see Short Title note set out under section 611 of Title 22 and

Tables.

The Federal Tort Claims Act, referred to in subsec. (h)(4)(B), is

classified generally to section 1346(b) and chapter 171 (Sec. 2671

et seq.) of Title 28, Judiciary and Judicial Procedure.

Public Law 95-134, referred to in subsec. (h)(4)(B), is Pub. L.

95-134, Oct. 15, 1977, 91 Stat. 1159, as amended, popularly known

as the Omnibus Territories Act of 1977. For complete classification

of this Act to the Code, see Tables.

Public Law 96-205, referred to in subsec. (h)(4)(B), is Pub. L.

96-205, Mar. 12, 1980, 94 Stat. 84, as amended. For complete

classification of this Act to the Code, see Tables.

The Compact with Palau, referred to in subsec. (h)(5), is the

Compact of Free Association with Palau, which is contained in

section 201 of Pub. L. 99-658, set out as a note under section 1931

of this title.

Public Law 99-658, referred to in subsec. (h)(5), is Pub. L.

99-658, Nov. 14, 1986, 100 Stat. 3672, as amended. Title II of Pub.

L. 99-658 enacted section 1934 of this title and provisions set out

as a note under section 1931 of this title. For complete

classification of this Act to the Code, see Tables.

The Higher Education Act of 1965, referred to in subsec. (h)(5),

is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Title

IV of the Act is classified generally to subchapter IV (Sec. 1070

et seq.) of chapter 28 of Title 20, Education, and part C (Sec.

2751 et seq.) of subchapter I of chapter 34 of Title 42, The Public

Health and Welfare. For complete classification of this Act to the

Code, see Short Title note set out under section 1001 of Title 20

and Tables.

The National Historic Preservation Act, referred to in subsec.

(l), is Pub. L. 89-665, Oct. 15, 1966, 80 Stat. 915, as amended,

which is classified generally to subchapter II (Sec. 470 et seq.)

of chapter 1A of Title 16, Conservation. For complete

classification of this Act to the Code, see section 470(a) of Title

16 and Tables.

-COD-

CODIFICATION

Subsec. (q) of this section, which required the President to

report annually to Congress on determinations made by the United

States in the exercise of its authority under section 313 of the

Compact of Free Association between the Government of the United

States and the Governments of the Marshall Islands and the

Federated States of Micronesia, terminated, effective May 15, 2000,

pursuant to section 3003 of Pub. L. 104-66, as amended, set out as

a note under section 1113 of Title 31, Money and Finance. See,

also, 14th item on page 37 of House Document No. 103-7.

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

AMENDMENTS

1992 - Subsec. (h)(5). Pub. L. 102-486 added par. (5) relating to

PCB cleanup.

1988 - Subsec. (h)(5). Pub. L. 100-369 added par. (5) relating to

Federal education grants.

1986 - Subsec. (b)(2). Pub. L. 99-396 amended par. (2) generally.

Prior to amendment, par. (2) read as follows: "Appropriations made

pursuant to the Compact or any other provision of this joint

resolution may be made only to the Secretary of the Interior, who

shall coordinate and monitor any program or activity provided to

the Federated States of Micronesia or the Republic of the Marshall

Islands by departments and agencies of the Government of the United

States and related economic development planning pursuant to the

Compact or pursuant to any other authorization except for the

provisions of sections 161(e), 313, and 351 of the Compact and the

authorization of the President to agree to an effective date

pursuant to this resolution. Funds appropriated to the Secretary of

the Interior pursuant to this paragraph shall not be allocated to

other Departments or agencies."

Subsec. (c)(2). Pub. L. 99-658 substituted "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:" and subpars. (1) to (3) for "infrastructure."

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of this title.

-MISC2-

FEDERATED STATES OF MICRONESIA AND MARSHALL ISLANDS; PROGRAMS AND

SERVICES PROVIDED ON NONREIMBURSABLE BASIS

Pub. L. 99-396, Sec. 20(b), Aug. 27, 1986, 100 Stat. 844,

provided that: "The programs and services specified in section

105(h)(1), sections [sic] 105(i)(1) and (2), section 111(a) [48

U.S.C. 1905(h)(1), (i)(1), (2), 1911(a)], the services of the

National Health Service Corps pursuant to section 105(k), and the

Technical Assistance and National Historic Preservation Act [16

U.S.C. 470 et seq.] grants pursuant to section 105(l), of Public

Law 99-239 shall be provided on a nonreimbursable basis."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1804, 1902, 1903, 1932,

1933, 1959, 1962 of this title.

-FOOTNOTE-

(!1) So in original.

(!2) So in original. Probably should be "(6)".

-End-

-CITE-

48 USC Sec. 1906 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1906. Construction contract assistance

-STATUTE-

(a) Assistance to U.S. firms

In order to assist the Governments of the Federated States of

Micronesia and 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 President shall consult

with the Governments of the Federated States of Micronesia and the

Marshall Islands with respect to any such contracts, and the

President 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 Marshall Islands;

(2) to the extent that necessary skills are not possessed by

citizens of the Federated States of Micronesia and 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.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 106, Jan. 14, 1986, 99 Stat. 1797.)

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1932 of this title.

-End-

-CITE-

48 USC Sec. 1907 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1907. Limitations

-STATUTE-

(a) Prohibition

The provisions of Chapter 11 of title 18 shall apply in full to

any individual who has served as the President's Personal

Representative for Micronesian Status Negotiations or who is or was

an officer or employee of the Office for Micronesian Status

Negotiations or who is or was assigned or detailed to that Office

or who served on the Micronesia Interagency Group, except that for

the purposes of this section, clauses (i) and (ii) of section

207(b) (!1) of such title shall read as follows: "(i) having been

so employed, within three years after his employment has ceased,

knowingly acts as agent or attorney for, or otherwise represents,

any other person (except the United States), in any formal or

informal appearance before, or, with the intent to influence, makes

any oral or written communication on behalf of any other person

(except the United States) to, or (ii) having been so employed and

as specified in subsection (d) of this section, within three years

after his employment has ceased, knowingly represents or aids,

counsels, advises, consults, or assists in representing any other

person (except the United States) by personal presence at any

formal or informal appearance before - ".

(b) Termination

Effective upon the date of the termination of the Trust Territory

of the Pacific Islands with respect to Palau, the Office for

Micronesian Status Negotiations is abolished and no department,

agency, or instrumentality of the United States shall thereafter

contribute funds for the support of such Office.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 107, Jan. 14, 1986, 99 Stat. 1797.)

-REFTEXT-

REFERENCES IN TEXT

Section 207 of title 18, referred to in subsec. (a), was amended

generally by Pub. L. 101-194, title I, Sec. 101(a), Nov. 30, 1989,

103 Stat. 1716, and, as so amended, subsec. (b) of that section no

longer contains cls. (i) and (ii). For text of section 207 of Title

18, Crimes and Criminal Procedure, as it appeared prior to

amendment by Pub. L. 101-194, see Effective Date of 1989 Amendment;

Effect on Employment note set out under section 207 of Title 18.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands with

respect to Palau, see note set out preceding section 1681 of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

48 USC Sec. 1908 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1908. Transitional immigration rules

-STATUTE-

(a) Citizen of Northern Mariana Islands

Any person who is a citizen of the Northern Mariana Islands, as

that term is defined in section 24(b) of the Act of December 8,

1983 (97 Stat. 1465), is considered a citizen of the United States

for purposes of entry into, permanent residence, and employment in

the United States and its territories and possessions.

(b) Termination

The provisions of this section shall cease to be effective when

section 301 of the Covenant to Establish a Commonwealth of the

Northern Mariana Islands in Political Union With the United States

(Public Law 94-241) becomes effective pursuant to section 1003(c)

of the Covenant.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 108, Jan. 14, 1986, 99 Stat. 1798.)

-REFTEXT-

REFERENCES IN TEXT

Section 24(b) of the Act of December 8, 1983, referred to in

subsec. (a), is Pub. L. 98-213, Sec. 24(b), Dec. 8, 1983, 97 Stat.

1465, which was formerly set out as a note under section 1801 of

this title.

The Covenant to Establish a Commonwealth of the Northern Mariana

Islands in Political Union With the United States, referred to in

subsec. (b), is contained in section 1 of Pub. L. 94-241, as

amended, set out as a note under section 1801 of this title. For

November 4, 1986, as the effective date of section 301 of the

Covenant, see Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out

as a note under section 1801 of this title.

Public Law 94-241, referred to in subsec. (b), is Pub. L. 94-241,

Mar. 24, 1976, 90 Stat. 263, as amended, which is classified

generally to subchapter I (Sec. 1801 et seq.) of chapter 17 of this

title. For complete classification of this Act to the Code, see

Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1909 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1909. Timing

-STATUTE-

No payment may be made pursuant to the Compact nor under any

provision of this joint resolution prior to October 1, 1985.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 109, Jan. 14, 1986, 99 Stat. 1798.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out as a note under section 1901 of this title.

This joint resolution, referred to in text, is Pub. L. 99-239,

Jan. 14, 1986, 99 Stat. 1770, as amended, known as the Compact of

Free Association Act of 1985, which is classified principally to

this subchapter and chapter 19 (Sec. 2001 et seq.) of this title.

For complete classification of this Act to the Code, see Short

Title note set out under section 1901 of this title and Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1910 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1910. Implementation of audit agreements

-STATUTE-

(a) Transmission of annual financial statement

Upon receipt of the annual financial statement described in

sections 1902(c)(4) and 1903(m)(4) of this title, the President

shall promptly transmit a copy of such statement to the Congress.

(b) Annual audits by President

(1) The President shall cause an annual audit to be conducted of

the annual financial statements described in sections 1902(c)(4)

and 1903(m)(4) of this title. Such audit shall be conducted in

accordance with the Generally Accepted Government Auditing

Standards promulgated by the Comptroller General of the United

States. Such audit shall be submitted to the Congress not later

than 180 days after the end of the United States fiscal year.

(2) The President shall develop and implement procedures to carry

out such audits. Such procedures shall include the matters

described in sections 1902(c)(2) and 1903(m)(2) of this title.

(c) Authority of GAO

The Comptroller General of the United States shall have the

authority to conduct the audits referred to in sections 1902(c)(1)

and 1903(m)(1) of this title.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 110, Jan. 14, 1986, 99 Stat. 1798.)

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(b) of this section relating to the requirement that the annual

audit be submitted to Congress, see section 3003 of Pub. L. 104-66,

as amended, set out as a note under section 1113 of Title 31, Money

and Finance, and the 13th item on page 37 of House Document No.

103-7.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1932 of this title.

-End-

-CITE-

48 USC Sec. 1911 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1911. Compensatory adjustments

-STATUTE-

(a) Additional programs and services

In addition to the programs and services set forth in Section 221

of the Compact, and pursuant to Section 224 of the Compact, the

services and programs of the following U.S. agencies shall be made

available to the Federated States of Micronesia and the Marshall

Islands: The Federal Deposit Insurance Corporation, Small Business

Administration, Economic Development Administration, the Rural

Electrification Administration, Job Partnership Training Act, Job

Corps, and the programs and services of the Department of Commerce

relating to tourism and to marine resource development.

(b) Investment Development Funds

(1) In order to further close economic and commercial relations

between the United States and the Federated States of Micronesia

and the Marshall Islands, and in order to encourage the presence of

the United States private sector in such areas, there are hereby

created two Investment Development Funds, to be established and

administered by the Federated States of Micronesia and the Marshall

Islands respectively in consultation with the United States as

follows:

(i) For the Investment Development Fund for the Federated

States of Micronesia there is hereby authorized to be

appropriated for fiscal 1986, $20 million, backed by the full

faith and credit of the United States, of which $12 million shall

be made available for obligation for the first full fiscal year

after the effective date of the Compact, and of which $8 million

shall be made available for obligation for the third full fiscal

year after the effective date of the Compact.

(ii) For the Investment Development Fund for the Marshall

Islands there is hereby authorized to be appropriated $10 million

for fiscal 1986, backed by the full faith and credit of the

United States, of which $6 million for the first full fiscal year

after the effective date of the Compact, and of which $4 million

shall be made available for obligation for the third full fiscal

year after the effective date of the Compact.

(2) The amounts specified in this subsection shall be in addition

to the sums and amounts specified in Articles I and III of Title

Two of the Compact, and shall be deemed to be included in the sums

and amounts referred to in section 236 of the Compact.

(c) Board of Advisors

To provide policy guidance for the Funds established by

subsection (b) of this section, the President is hereby authorized

to establish a Board of Advisors, pursuant to appropriate

agreements between the United States and the Federated States of

Micronesia and the Marshall Islands.

(d) Further amounts

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 this joint resolution upon Title Two of

the Compact. There are hereby authorized to be appropriated for

fiscal years beginning after September 30, 1990, such amounts as

may be 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 this section) for adverse

impacts, if any, on the finances and economies of such areas

resulting from the effect of Title IV of this joint resolution upon

Title Two of the Compact. At the end of the initial fifteen-year

term of the Compact, should any portion of the total amount of

funds authorized in this subsection not have been appropriated,

such amount not yet appropriated may be appropriated, without

regard to divisions between amounts authorized in this subsection

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 this subsection.

-SOURCE-

(Pub. L. 99-239, title I, Sec. 111, Jan. 14, 1986, 99 Stat. 1799.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the Government of the United States and the

Governments of the Marshall Islands and the Federated States of

Micronesia, which is contained in section 201 of Pub. L. 99-239,

set out as a note under section 1901 of this title.

The Job Partnership Training Act, referred to in subsec. (a),

probably means the Job Training Partnership Act, Pub. L. 97-300,

Oct. 13, 1982, 96 Stat. 1322, as amended, which was classified

generally to chapter 19 (Sec. 1501 et seq.) of Title 29, Labor, and

was repealed by Pub. L. 105-220, title I, Sec. 199(b)(2),

(c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000.

Pursuant to section 2940(b) of Title 29, references to a provision

of the Job Training Partnership Act, effective Aug. 7, 1998, are

deemed to refer to that provision or the corresponding provision of

the Workforce Investment Act of 1998, Pub. L. 105-220, Aug. 7,

1998, 112 Stat. 936, and effective July 1, 2000, are deemed to

refer to the corresponding provision of the Workforce Investment

Act of 1998. For complete classification of the Job Training

Partnership Act to the Code, see Tables. For complete

classification of the Workforce Investment Act of 1998 to the Code,

see Short Title note set out under section 9201 of Title 20,

Education, and Tables.

For Oct. 21, 1986, as the effective date of the Compact of Free

Association with the Marshall Islands, and Nov. 3, 1986, as the

effective date of the Compact of Free Association with the

Federated States of Micronesia, referred to in subsec. (b)(1), see

Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out as a note

under section 1801 of this title.

This joint resolution, referred to in subsec. (d), is Pub. L.

99-239, Jan. 14, 1986, 99 Stat. 1770, as amended, known as the

Compact of Free Association Act of 1985. Title IV of this Act is

set out as a note under section 1901 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1901 of this title and Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1932 of this title.

-End-

-CITE-

48 USC Sec. 1912 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER I - MICRONESIA AND MARSHALL ISLANDS

-HEAD-

Sec. 1912. Jurisdiction

-STATUTE-

(a) With respect to section 321 of the Compact of Free

Association and its related agreements, the jurisdictional

provisions set forth in subsection (b) of this section shall apply

only to the citizens and nationals of the United States and aliens

lawfully admitted to the United States for permanent residence who

are in the Marshall Islands or the Federated States of Micronesia.

(b)(1) The defense sites of the United States established in the

Marshall Islands or the Federated States of Micronesia in

accordance with the Compact of Free Association and its related

agreements are within the special maritime and territorial

jurisdiction of the United States as set forth in section 7, title

18.

(2) Any person referred to in subsection (a) of this section who

within or upon such defense sites is guilty of any act or omission

which, although not made punishable by any enactment of Congress,

would be punishable if committed or omitted within the jurisdiction

of the State of Hawaii by the laws thereof, in force at the time of

such act or omission, shall be guilty of a like offense and subject

to a like punishment.

(3) The United States District Court for the District of Hawaii

shall have jurisdiction to try all criminal offenses against the

United States, including the laws of the State of Hawaii made

applicable to the defense sites in the Marshall Islands or the

Federated States of Micronesia by virtue of paragraph (2) of this

subsection, committed by any person referred to in subsection (a)

of this section.

(4) The United States District Court for the District of Hawaii

may appoint one or more magistrate judges for the defense sites in

the Marshall Islands. Such Magistrate Judges shall have the power

and the status of Magistrate Judges appointed pursuant to chapter

43, title 28, provided, however that such Magistrate Judges shall

have the power to try persons accused of and sentence persons

convicted of petty offenses, as defined in section 1(3),(!1) title

18, including violations of regulations for the maintenance of

peace, order, and health issued by the Commanding Officer on such

defense sites, without being subject to the restrictions provided

for in section 3401(b), title 18.

-SOURCE-

(Pub. L. 99-239, title II, Sec. 202, Jan. 14, 1986, 99 Stat. 1835;

Pub. L. 101-650, title III, Sec. 321, Dec. 1, 1990, 104 Stat.

5117.)

-REFTEXT-

REFERENCES IN TEXT

The Compact of Free Association, referred to in subsecs. (a) and

(b)(1), is the Compact of Free Association between the Government

of the United States and the Governments of the Marshall Islands

and the Federated States of Micronesia, which is contained in

section 201 of Pub. L. 99-239, set out as a note under section 1901

of this title.

Section 1 of title 18, referred to in subsec. (b)(4), was

repealed by Pub. L. 98-473, title II, Sec. 218(a)(1), Oct. 12,

1984, 98 Stat. 2027.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

Section was enacted as part of title II of Pub. L. 99-239, and

not as part of title I of Pub. L. 99-239 which comprises this

subchapter.

-CHANGE-

CHANGE OF NAME

Words "magistrate judges" and "Magistrate Judges" substituted for

"magistrates" and "Magistrates", respectively, wherever appearing

in subsec. (b)(4) pursuant to section 321 of Pub. L. 101-650, set

out as a note under section 631 of Title 28, Judiciary and Judicial

Procedure.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

48 USC SUBCHAPTER II - PALAU 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

-HEAD-

SUBCHAPTER II - PALAU

-End-

-CITE-

48 USC Part A - Approval of Compact and Supplemental

Provisions 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part A - Approval of Compact and Supplemental Provisions

-HEAD-

PART A - APPROVAL OF COMPACT AND SUPPLEMENTAL PROVISIONS

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1951, 1952, 1957, 1959,

1960, of this title; title 2 section 905; title 16 section 470a.

-End-

-CITE-

48 USC Sec. 1931 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part A - Approval of Compact and Supplemental Provisions

-HEAD-

Sec. 1931. Approval of Compact of Free Association

-STATUTE-

(a) Approval

The Compact of Free Association set forth in title II of this

joint resolution between the United States and the Government of

Palau is hereby approved, and Congress hereby consents to the

agreements as set forth on pages 154 through 405 of House Document

99-193 of April 9, 1986 (hereafter in this joint resolution

referred to as subsidiary or related agreements), as they relate to

such Government. Subject to the provisions of this joint

resolution, the President is authorized to agree, in accordance

with section 411 of the Compact, to an effective date for and

thereafter to implement such Compact, having taken into account any

procedures with respect to the United Nations for termination of

the Trusteeship Agreement.

(b) Reference to Compact

Any reference in this joint resolution to the "Compact" shall be

treated as a reference to the Compact of Free Association set forth

in title II of this joint resolution.

(c) Amendment, change, or termination of Compact and certain

agreements

(1) Mutual agreement by the Government of the United States as

provided in the Compact which results in amendment, change, or

termination of all or any part thereof shall be affected only by

Act of Congress and no unilateral action by the Government of the

United States provided for in the Compact, and having such result,

may be effected other than by Act of Congress.

(2) The provisions of paragraph (1) shall apply -

(A) to all actions of the Government of the United States under

the Compact including, but not limited to, actions taken pursuant

to sections 431, 432, 441, or 442;

(B) to any amendment, change, or termination in any agreement

that may be concluded at any time between the Government of the

United States and the Government of Palau regarding friendship,

cooperation and mutual security concluded pursuant to sections

321 and 323 of the Compact referred to in section 462(h);

(C) to any amendment, change, or termination of the agreements

concluded pursuant to Compact sections 175 and 221(a)(4), the

terms of which are incorporated by reference into the Compact;

and

(D) to the following subsidiary agreements, or portions

thereof:

(i) Article II of the agreement referred to in section 462(a)

of the Compact;

(ii) Article II of the agreement referred to in section

462(b) of the Compact;

(iii) Article II and Section 7 of Article X of the agreement

referred to in section 462(f) of the Compact;

(iv) the agreement referred to in section 462(g) of the

Compact;

(v) Articles II, III, IV, V, VI, and VII of the agreement

referred to in section 462(h) of the Compact; and

(vi) Articles VI, XV, and XVII of the agreement referred to

in section 462(i) of the Compact.

(d) Effective date

(1) The authority of the President to agree to an effective date

for the Compact of Free Association between the United States and

Palau concurrently with termination of the Trusteeship shall be

carried out in accordance with this section, and the Compact shall

not take effect until after -

(A) The President has certified to the Congress that the

Compact has been approved in accordance with Section 411(a) and

(b) of the Compact, and that there exists no legal impediment to

the ability of the United States to carry out fully its

responsibilities and to exercise its rights under Title Three of

the Compact, as set forth in this Act, and

(B) enactment of a joint resolution which has been reported by

the Committee on Energy and Natural Resources of the Senate and

the Committees on Interior and Insular Affairs and Foreign

Affairs and other appropriate Committees of the House of

Representatives authorizing entry into force of the Compact, and

(C) agreements have been concluded with Palau which satisfy the

requirements of section 1902 of this title. For the purpose of

this subsection the word "Palau" shall be substituted for

"Federated States of Micronesia" whenever it appears in section

1902 of this title.

(2) Any agreement concluded with Palau pursuant to subparagraph

(C) of paragraph (1) and any agreement which would amend, change,

or terminate any subsidiary agreement or related agreement, or

portion thereof, as set forth in paragraph (4) of this subsection

shall be submitted to the Congress. No such agreement shall take

effect until after the expiration of 30 days after the date such

agreement is so submitted (excluding days on which either House of

Congress is not in session).

(3) No agreement described in paragraph (2) shall take effect if

a joint resolution of disapproval is enacted during the period

specified in paragraph (2). For the purpose of expediting the

consideration of such a joint resolution, a motion to proceed to

the consideration of any such joint resolution after it has been

reported by an appropriate committee shall be treated as highly

privileged in the House of Representatives. Any such joint

resolution shall be considered in the Senate in accordance with the

provisions of section 601(b) of Public Law 94-329.

(4) The subsidiary agreement of (!1) portions thereof referred to

in paragraph (2) are as follows:

(A) Articles III and IV of the agreement referred to in section

462(b) of the Compact.

(B) Articles III, IV, V, VI, VII, VIII, IX, and X (except for

section 7 thereof) of the agreement referred to in section 462(f)

of the Compact.

(C) Articles IV, V, X, XIV, XVI, and XVIII of the agreement

referred to in section 462(i) of the Compact.

(D) Articles II, V, VI, VII, and VIII of the agreement referred

to in section 462(h) of the Compact.

(E) The agreement referred to in section 462(j) of the Compact.

(5) No agreement between the United States and the Government of

Palau which would amend, change, or terminate any subsidiary or

related agreement, or portion thereof, other than those set forth

in subsection (d) (!2) of this section or paragraph (4) of this

subsection, shall take effect until the President has transmitted

such an 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.

-SOURCE-

(Pub. L. 99-658, title I, Sec. 101, Nov. 14, 1986, 100 Stat. 3673.)

-REFTEXT-

REFERENCES IN TEXT

The Compact of Free Association and the Compact, referred to in

text, is the Compact of Free Association between the United States

and the Government of Palau, which is contained in section 201 of

Pub. L. 99-658, set out below.

This joint resolution and this Act, referred to in text, is Pub.

L. 99-658, Nov. 14, 1986, 100 Stat. 3672, as amended, which is

classified generally to this part. Title II of the joint resolution

enacted section 1934 of this title and provisions set out below.

For complete classification of this Act to the Code, see Tables.

For Oct. 1, 1994, as the date the Compact of Free Association

with Palau takes effect, referred to in subsecs. (a) and (d), see

Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, set out below.

Section 601(b) of Public Law 94-329, referred to in subsec.

(d)(3), is section 601(b) of Pub. L. 94-329, title VI, June 30,

1976, 90 Stat. 765, which is not classified to the Code.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-CHANGE-

CHANGE OF NAME

Committee on Interior and Insular Affairs of House of

Representatives changed to Committee on Natural Resources of House

of Representatives by House Resolution No. 5, One Hundred Third

Congress, Jan. 5, 1993. Committee on Natural Resources of House of

Representatives treated as referring to Committee on Resources of

House of Representatives by section 1(a) of Pub. L. 104-14, set out

as a note preceding section 21 of Title 2, The Congress.

-MISC1-

REGULATIONS REGARDING HABITUAL RESIDENCE

Commissioner of Immigration and Naturalization to issue

regulations, not later than 6 months after Sept. 30, 1996,

governing rights of "habitual residence" in United States under

terms of the Compact of Free Association between the Government of

the United States and the Government of Palau, see section 643 of

Pub. L. 104-208, formerly set out as a note under section 1901 of

this title.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of this title.

-MISC2-

RECITAL CLAUSES

Pub. L. 99-658 which enacted this part contained several

"Whereas" clauses reading as follows:

"Whereas the United States is the administering authority of the

Trust Territory of the Pacific Islands under the terms of the

Trusteeship Agreement for the former Japanese Mandated Islands

entered into by the United States with the Security Council of the

United Nations on April 2, 1947, and approved by the United States

on July 18, 1947; and

"Whereas the United States, in accordance with the Trusteeship

Agreement, the Charter of the United Nations and the objectives of

the international trusteeship system, has promoted the development

of the peoples of the Trust Territory toward self-government or

independence as appropriate to the particular cicumstances [sic] of

the Trust Territory and its peoples and the freely expressed wishes

of the peoples concerned; and

"Whereas the United States, in response to the desires of the

people of Palau expressed through their freely-elected

representatives and by the official pronouncements and enactments

of their lawfully constituted government, and in consideration of

its own obligations under the Trusteeship Agreement to promote

self-determination, entered into political status negotiations with

representatives of the people of Palau; and

"Whereas these negotiations resulted in the 'Compact of Free

Association' [set out below] between the United States and Palau

which, together with its related agreements, was signed by the

United States and by Palau on January 10, 1986; and

"Whereas the Compact of Free Association received a favorable

vote of a majority of the people of Palau voting in a United

Nations-observed plebiscite conducted on February 21, 1986; and

"Whereas the Supreme Court of Palau has ruled that the

constitutional process of Palau for approval of the Compact of Free

Association in accordance with section 411 of the Compact has not

yet been completed; and

"Whereas the President of Palau has requested the United States

to complete the process of United States approval of the Compact of

Free Association in accordance with section 411 of the Compact

through enactment of an appropriate joint resolution".

COMPACT OF FREE ASSOCIATION

Section 201 of Pub. L. 99-658 provided that: "Compact of Free

Association is as follows:

"COMPACT OF FREE ASSOCIATION

"PREAMBLE

"THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT

OF PALAU

"Affirming that their Governments and the relationship between

their Governments are founded upon respect for human rights and

fundamental freedoms for all, and

"Affirming the common interests of the United States of America

and the people of Palau in creating close and mutually beneficial

relationships through a free and voluntary association of their

Governments; and

"Affirming the interest of the Government of the United States in

promoting the economic advancement and self-sufficiency of the

people of Palau; and

"Recognizing that their previous relationship has been based upon

the International Trusteeship System of the United Nations Charter;

and that pursuant to Article 76 of the Charter, the peoples of the

Trust Territory have progressively developed their institutions of

self-government, and that in the exercise of their sovereign right

to self-determination they have, through their free-expressed [sic]

wishes, adopted a Constitution appropriate to their particular

circumstances; and

"Recognizing their common desire to terminate the Trusteeship and

establish a new government-to-government relationship in accordance

with a new political status based on the freely-expressed wishes of

the people of Palau and appropriate to their particular

circumstances; and

"Recognizing that the people of Palau 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 their

Government into this Compact of Free Association by the people of

Palau constitutes an exercise of their sovereign right to

self-determination;

"NOW, THEREFORE, AGREE to enter into relationship of free

association which provides a full measure of self-government for

the people of Palau; and

"FURTHER AGREE that the relationships of free association derives

from and is as set forth in this Compact; and that, during such

relationships of free association, the respective rights and

responsibilities of the Government of the United States and the

Government of the freely associated state of Palau in regard to

this relationship of free association derives from and is as set

forth in this Compact.

"TITLE ONE

"GOVERNMENT RELATIONS

"ARTICLE I

"SELF-GOVERNMENT

"Section 111

"The people of Palau, acting through their duly elected

government established under their constitution, are

self-governing.

"ARTICLE II

"FOREIGN AFFAIRS

"Section 121

"(a) The Republic of Palau has the capacity to conduct foreign

affairs in its own name and right, except as otherwise provided in

this Compact and the Government of the United States recognizes

that the Government of Palau, in the exercise of this capacity, may

enter into, in its own name and right, treaties and other

international agreements with governments and regional and

international organizations.

"(b) In the conduct of its foreign affairs the Government of

Palau 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 application by

the Government of Palau for membership or other participation in

regional or international organizations as may be mutually agreed.

The Government of the United States agrees to accept citizens of

Palau for training and instruction at the United States Foreign

Service Institute [now George P. Shultz National Foreign Affairs

Training Center], established under 22 U.S.C. 4021, or similar

training under terms and conditions to be mutually agreed.

"Section 123

"In recognition of the authority and responsibility of the

Government of the United States under Title Three, the Government

of Palau shall consult with the Government of the United States.

The Government of the United States, in the conduct of its foreign

affairs, shall consult with the Government of Palau on matters

which the Government of the United States regards as relating to or

affecting the Government of Palau, and shall provide, on a regular

basis, information on regional foreign policy matters.

"Section 124

"(a) The Government of Palau has authority to conduct its foreign

affairs relating to law of the sea and marine resources matters,

including the harvesting, conservation, exploration or exploitation

of living and nonliving resources from the sea, seabed or subsoil

to the full extent recognized under international law.

"(b) The Government of Palau has jurisdiction and sovereignty

over its territory, including its land and internal waters,

territorial seas, the airspace superjacent thereto only to the

extent recognized under international law.

"Section 125

"Except as otherwise provided in this Compact or its related

agreements, all obligations, responsibilities, rights and benefits

of the Government of the United States as administering authority

which have 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 the day

preceding the effective date of this Compact are no longer assumed

and enjoyed by the Government of the United States.

"Section 126

"The Government of the United States shall accept responsibility

for those actions taken by the Government of Palau in the area of

foreign affairs, only as may from time to time be expressly and

mutually agreed.

"Section 127

"The Government of the United States may assist or act on behalf

of the Government of Palau 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 Palau undertaken with the assistance

or through the agency of the Government of the United States

pursuant to this Section unless expressly agreed.

"Section 128

"At the request of the Government of Palau 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 Palau for travel outside of

Palau, the Marshall Islands, the Federated States of Micronesia,

the United States and its territories and possessions.

"ARTICLE III

"COMMUNICATIONS

"Section 131

"(a) The Government of Palau has full authority and

responsibility to regulate its domestic and foreign communications,

and the Government of the United States shall provide communication

assistance in accordance with the terms of a related agreement

which shall come into effect simultaneously with this Compact, and

such agreement shall remain in effect until such time as any

election is made pursuant to Section 131(b) and which shall provide

for the following:

"(1) the Government of the United States remains the sole

administration entitled to make notification to the International

Frequency Registration Board of the International

Telecommunications Union of frequency assignments to radio

communications stations in Palau; and to submit to the

International Frequency Registration Board seasonal schedules for

the broadcasting stations in Palau in the bands allocated

exclusively to the broadcasting service between 5,950 and 26,100

kHz and in any other additional frequency bands that may be

allocated to use by high frequency broadcasting stations; and

"(2) the United States Federal Communications Commission has

jurisdiction, pursuant to the Communications Act of 1934, 47

U.S.C. 151 et seq., and the Communications Satellite Act of 1962,

47 U.S.C. 721 et seq., over all domestic and foreign

communications services furnished by means of satellite earth

terminal stations where such stations are owned or operated by

United States common carriers and are located in Palau.

"(b) The Government of Palau may elect at any time to undertake

the functions enumerated in Section 131(a) and previously performed

by the Government of the United States. Upon such election, the

Government of the United States shall so notify the International

Frequency Registration Board and shall take such other actions as

may be necessary to transfer to the Government of Palau the

notification authority referred to in Section 131(a) and all rights

deriving from the previous exercise of any such notification

authority by the Government of the United States.

"Section 132

"The Government of Palau shall permit the Government of the

United States to operate telecommunications services in Palau to

the extent necessary to fulfill the obligations of the Government

of the United States under this Compact in accordance with the

terms of related agreements which shall come into effect

simultaneously with this Compact.

"ARTICLE IV

IMMIGRATION

"Section 141

"(a) Any person in the following categories may enter into,

lawfully engage in occupations, and establish residence as a

nonimmigrant in the United States and its territories and

possessions without regard to paragraphs (14), (20), and (26) of

section 212(a) of the Immigration and Nationality Act, 8 U.S.C.

1182(a)(14), (20), and (26):

"(1) a person who, on the day preceding the effective date of

this Compact, is a citizen of 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 a citizen of Palau;

"(2) a person who acquires the citizenship of Palau, at birth,

on or after the effective date of the Constitution of Palau; or

"(3) a naturalized citizen of Palau, 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.

Such persons shall be considered to have the permission of the

Attorney General of the United States to accept employment in the

United States.

"(b) The right of such persons to establish habitual residence in

a territory or possession of the United States may, however, be

subjected to nondiscriminatory limitations provided for:

"(1) in statutes or regulations of the United States; or

"(2) in those statutes or regulations of the territory or

possession concerned which are authorized by the laws of the

United States.

"(c) Section 141(a) does not confer on a citizen of Palau, the

right to establish the residence necessary for naturalization under

the Immigration and Nationality Act, or to petition for benefits

for alien relatives under that Act. Section 141(a), however, shall

not prevent a citizen of Palau 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 enter into,

lawfully engage in occupations, and reside in Palau, subject to the

right of that Government to deny entry to or deport any such

citizen or national as an undesirable alien. A citizen or national

of the United States may establish habitual residence or domicile

in Palau only in accordance with the laws of Palau. This subsection

is without prejudice to the right of the Government of Palau to

regulate occupations in Palau in a nondiscriminatory manner.

"(b) With respect to the subject matter of this Section, the

Government of Palau shall accord to citizens and nationals of the

United States treatment no less favorable than that accorded to

citizens of other countries; any denial of entry to or deportation

of a citizen or national of the United States as an undesirable

alien must be pursuant to reasonable statutory grounds.

"Section 143

"(a) The privileges set forth in Section 141 shall not apply to

any person who takes an affirmative step to preserve or acquire a

citizenship or nationality other than that of Palau.

"(b) Every person having the privileges set forth in Sections 141

and 142 who possesses a citizenship or nationality other than that

of Palau or the United States ceases to have these privileges two

years after the effective date of this Compact, or within six

months after becoming 21 years of age, whichever comes later,

unless such person executes an oath of renunciation of that other

citizenship or nationality.

"Section 144

"(a) A citizen or national of the United States who, after

notification to the Government of the United States of an intention

to employ such person by the Government of Palau, commences

employment with that Government shall not be deprived of his United

States nationality pursuant to Section 349(a)(2) and (a)(4) of the

Immigration and Nationality Act, 8 U.S.C. 1481(a)(2) and (a)(4).

"(b) Upon such notification by the Government of Palau, the

Government of the United States may consult with or provide

information to the notifying Government concerning the prospective

employee, subject to the provisions of the Privacy Act, 5 U.S.C.

552a.

"(c) The requirement of prior notification shall not apply to

those citizens or nationals of the United States who are employed

by the Government of Palau on the effective date of this Compact

with respect to the positions held by them at that time.

"ARTICLE V

"REPRESENTATION

"Section 151

"The Government of the United States and the Government of Palau

may establish and maintain representative offices in the capitals

of the other.

"Section 152

"(a) The premises of such representatives [sic] offices, and

their archives wherever located, shall be inviolable. The property

and assets of such representative offices shall be immune from

search, requisition, attachment and any form of seizure unless such

immunity is expressly waived. Official communications in transit

shall be inviolable and accorded the freedom and protections

accorded by recognized principles of intentional [sic] law to

official communications of a diplomatic mission.

"(b) Persons designated by the sending Government may serve in

the capacity of its resident representatives with the consent of

the receiving Government. Such designated persons 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 as such representatives, except

insofar as such immunity may be expressly waived by the sending

Government. While serving in a resident representative capacity,

such designated persons 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.

"(c) The sending Governments and their respective assets, income

and other property shall be exempt from all direct taxes, except

those direct taxes representing payment for specific goods and

services, and shall be exempt from all customs duties and

restrictions on the import or export of articles required for the

official functions and personal use of their representatives and

representative offices.

"(d) Persons designated by the sending Government to serve in the

capacity of its resident representatives shall enjoy the same

taxation exemptions as are set forth in Article 34 of the Vienna

Convention on Diplomatic Relations.

"(e) The privileges, exemptions and immunities accorded under

this Section 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 to which they

are assigned.

"ARTICLE VI

"ENVIRONMENTAL PROTECTION

"Section 161

"The Government of the United States and the Government of Palau

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 Palau.

"Section 162

"(a) The Government of the United States and the Government of

Palau agree that with respect to the activities of the Government

of the United States in Palau, and with respect to substantively

equivalent activities of the Government of Palau, each of the

Governments shall be bound by such environmental protection

standards as may be mutually agreed for the purpose of carrying out

the policy set forth in this Compact.

"Section 163

"In order to carry out the policy set forth in this Article, the

Government of the United States and the Government of Palau agree

to the following undertakings.

"(a) The Government of the United States:

"(1) shall apply environmental standards substantively similar

to those in effect on the day preceding the effective date of

this Compact to any activity requiring the preparation of an

Environmental Impact Statement under the provisions of the

National Environmental Policy Act of 1969, 83 Stat. 852, 42

U.S.C. 4321 et seq.

"(2) shall develop, prior to conducting any activity included

within the category described in this Section, appropriate

mechanisms, including regulations or other standards and

procedures, to regulate such activity in Palau in a manner

appropriate to the special governmental relationship set forth in

this Compact. The Government of the United States shall provide

the Government of Palau with the opportunity to comment formally

during the development of such mechanisms.

"(b) The Government of Palau shall develop standards and

procedures to protect the environment of Palau. As a reciprocal

obligation to the undertakings of the Government of the United

States under this Article, the Government of Palau, taking into

account the particular environment of Palau, shall develop

standards for environmental protection substantively similar to

those required of the Government of the United States by Section

163(a)(1) prior to conducting activities in Palau 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 163(a), including any standard or procedure

applicable thereunder, and Section 163(b) may be modified or

superseded in whole or in part by agreement of the Government of

the United States and the Government of Palau.

"(d) Disputes arising under this Article, except for Section

163(e), shall be resolved exclusively in accordance with Article II

of Title Four.

"(e) The President of the United States may exempt any of the

activities of the Government of the United States under this

Compact and its related agreements from any environmental standard

or procedure which may be applicable under this Article 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 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 Palau

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 Palau.

"ARTICLE VII

"GENERAL LEGAL PROVISIONS

"Section 171

"Except as provided in this Compact 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 ceases with respect to Palau as of the effective date of

this Compact.

"Section 172

"(a) Every citizen of Palau 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 nonresident alien.

"(b) The Government and every citizen of Palau shall be

considered 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.

"Section 173

"The Government of the United States and the Government of Palau,

agree to adopt and enforce such measures, consistent with this

Compact 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 Palau pursuant to this Compact and its related

agreements and by that Government in the United States pursuant to

this Compact and its related agreements.

"Section 174

"Except as otherwise provided in this Compact and its related

agreements:

"(a) The Government of Palau shall be immune from the

jurisdiction of the courts of the United States, and the Government

of the United States shall be immune from the jurisdiction of the

courts of Palau.

"(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 Trust Territory of the Pacific Islands or 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 the effective date of this Compact;

"(2) any claim settled by the claimant and the Government of

the Trust Territory of the Pacific Islands but not paid as of the

effective date of this Compact; and

"(3) settlement of any administrative claim or of any action

before a court of the Trust Territory of the Pacific Islands,

pending as of the effective date of this Compact, against the

Government 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 this 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

court, which shall have jurisdiction therefor, 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 Palau, 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 Palau in any case in which the action is based on a

commercial activity of the defendant Government carried out where

the action is brought, or in a case in which damages are sought for

personal injury or death or damage to or loss of property occurring

where the action is brought. This subsection shall apply only to

actions based on commercial activities entered into or injuries or

losses suffered on or after the effective date of this Compact.

"Section 175

"A separate agreement, which shall come into effect

simultaneously with this Compact, shall be concluded between the

Government of the United States and the Government of Palau

regarding mutual assistance and cooperation in law enforcement

matters including the pursuit, capture, imprisonment and

extradition of fugitives from justice and the transfer of

prisoners. The separate agreement shall have the force of law. In

the United States, the laws of the United States governing

international extradition, including 18 U.S.C. 3184, 3186 and

3188-3195, 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. 4100-4115,

shall be applicable to the transfer of prisoners under the separate

agreement.

"Section 176

"The Government of Palau 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 Palau to grant relief from

judgments in appropriate cases.

"Section 177

"(a) Federal agencies of the Government of the United States

which provide services and related programs in Palau are authorized

to settle and pay tort claims arising in Palau from the activities

of such agencies or from the acts or omissions of the employees of

such agencies. Except as provided in Section 177(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 177(a) which cannot be settled under

Section 177(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

Palau shall provide for:

"(1) the administrative settlement of claims referred to in

Section 177(a), including designation of local agents in Palau,

such agents to be empowered to accept, investigate and settle

such claims, in a timely manner, as provided in such related

agreements; and

"(2) arbitration, referred to in Section 177(b), in a timely

manner, at a site convenient to the claimant, in the event a

claim is not otherwise settled pursuant to Section 177(a).

"(d) The provisions of Section 174(d) shall not apply to claims

covered by this Section.

"TITLE TWO

"ECONOMIC RELATIONS

"ARTICLE I

"GRANT ASSISTANCE

"Section 211

"In order to assist the Government of Palau in its efforts to

advance the well-being of the people of Palau and in recognition of

the special relationship that exists between the United States and

Palau, the Government of the United States shall provide to the

Government of Palau on a grant basis the following amounts:

"(a) $12 million annually for ten years commencing on the

effective date of this Compact, and $11 million annually for five

years commencing on the tenth anniversary of the effective date of

this Compact, for current account operations and maintenance

purposes, which amounts commencing on the fourth anniversary of the

effective date of this Compact shall include a minimum annual

distribution of $5 million from the fund specified in Section

211(f).

"(b) $2 million annually for fourteen years commencing on the

first anniversary of the effective date of this Compact as a

contribution to efforts aimed at achieving increased

self-sufficiency in energy production, of which annual amounts not

less than $500,000 shall be devoted to the energy needs of those

parts of Palau not served by its central power-generating facility.

"(c) $150,000 annually for fifteen years commencing on the

effective date of this Compact as a contribution to current account

operations and maintenance of communications systems, and the sum

of $1.5 million, to be made available concurrently with the grant

assistance provided during the first year after the effective date

of this Compact, for the purpose of acquiring such communications

hardware as may be located within Palau or for such other current

or capital account activity as the Government of Palau may select.

"(d) $631,000 annually on a current account basis for fifteen

years commencing on the effective date of this Compact for the

purposes set forth below:

"(1) for the surveillance and enforcement by Government of

Palau of its maritime zone;

"(2) for health and medical programs, including referrals to

hospital and treatment centers; and

"(3) for a scholarship fund to support the post-secondary

education of citizens of Palau attending United States

accredited, post-secondary institutions in Palau, the United

States, its territories and possessions, and states in free

association with the United States. The curricular criteria for

the award of scholarships shall be designed to advance the

purposes of the plan referred to in Section 231.

"(e) The sum of $666,800 as a contribution to the commencement of

activities pursuant to Section 211(d)(1).

"(f) The sum of $66 million on the effective date of this

Compact, and the sum of $4 million concurrently with the grant

assistance to be made available during the third year after the

effective date of this Compact, to create a fund to be invested by

the Government of Palau in issues of bonds, notes or other

redeemable instruments of the Government of the United States or

other qualified instruments which may be identified by mutual

agreement of the Government of the United States and the Government

of Palau. Investment of the fund in qualified instruments of United

States nationality, and the distribution of sums derived from such

investment to the Government of Palau, shall not be subject to any

form of taxation by the United States or its political

subdivisions. The Government of the United States and the

Government of Palau shall set forth in a separate agreement, which

shall come into effect simultaneously with this Compact, provisions

for the investment, management and review of the fund so as to

allow for an agreed minimum annual distribution from its accrued

principal and interest commencing upon the effective date of this

Compact for fifty years. The objective of this sum is to produce an

average annual distribution of $15 million commencing on the

fifteenth anniversary of this Compact for thirty-five years. Any

excess or variance from the agreed minimum annual distributions

which may be produced from these sums shall accrue to or be

absorbed by the Government of Palau unless otherwise mutually

agreed in accordance with the provisions of the separate agreement

referred to in this paragraph. The annual distributions produced

from these sums are not subject to Sections 215 and 236.

"Section 212

"In order to assist the Government of Palau in its efforts to

advance the economic development and self-sufficiency of the people

of Palau and in recognition of the special relationship that exists

between the United States and Palau, the Government of the United

States shall provide:

"(a) To the people of Palau, a road system in accordance with

mutually agreed specifications, the construction of which shall be

completed prior to the sixth anniversary of the effective date of

this Compact; and

"(b) To the Government of Palau, the sum of $36 million, during

the first year after the effective date of this Compact, for

capital account purposes.

"Section 213

"The Government of the United States shall provide on a grant

basis to the Government of Palau the sum of $5.5 million in

conjunction with Article II of Title Three. This sum shall be made

available concurrently with the grant assistance provided pursuant

to this Article during the first year after the effective date of

this Compact. The Government of Palau, in its use of such funds,

shall take into account the impact of the activities of the

Government of the United States in Palau.

"Section 214

"All funds previously appropriated to the Trust Territory of the

Pacific Islands for the Government of Palau which are unobligated

by the Government of the Trust Territory as of the effective date

of this Compact shall accrue to the Government of Palau for the

purposes for which such funds were originally appropriated as

determined by the Government of the United States.

"Section 215

"Except as otherwise provided, the amounts stated in Sections

211(a), 211(b), 211(c) and 212(b) shall be adjusted for each fiscal

year by the percent which equals two-thirds of the percentage

change in the United States Gross National Product Implicit Price

Deflator, or seven percent, whichever is less in any one year,

using the beginning of Fiscal Year 1981 as the base.

"ARTICLE II

"PROGRAM ASSISTANCE

"Section 221

"(a) The Government of the United States shall make available to

Palau, in accordance with and to the extent provided in the

separate agreement referred to in Section 232, without compensation

and at the levels equivalent to those available to the Trust

Territory of the Pacific Islands during the year prior to the

effective date of this Compact, the services and related programs:

"(1) of the United States Weather Service;

"(2) provided pursuant to the Postal Reorganization Act, 39

U.S.C. 101 et seq.;

"(3) of the United States Federal Aviation Administration; and

"(4) of the United States Civil Aeronautics Board or its

successor agencies which has the authority to implement the

provisions of paragraph 5 of Article IX of such separate

agreements, the language of which is incorporated into this

Compact.

"(b) The Government of the United States, recognizing the special

needs of the Palau [sic] particularly in the fields of education

and health care, shall make available, as provided by the laws of

the United States,

"(1) the annual amount of $2 million which shall be allocated

in accordance with the provisions of the separate agreement

referred to in Section 232; and

"(2) the sums of $4.3 million, $2.9 million and $1.5 million,

respectively, during the first, second and third years after the

effective date of this Compact, which sums shall be used by the

Government of Palau as current account funds to finance programs

similar to those programs of the United States that applied to

Palau prior to the effective date of this Compact and that

provided financial assistance for education to any institution,

agency, organization or permanent resident of Palau or to the

College of Micronesia.

"(c) The Government of the United States shall make available to

Palau such alternate energy development projects, studies and

conservation measures as are applicable to the Trust Territory of

the Pacific Islands on the day preceding the effective date of this

Compact, for the purposes and duration provided in the laws of the

United States.

"(d) The Government of the United States shall have and exercise

such authority as is necessary for the purposes of this Article and

as is set forth in the related agreements referred to in Section

232, which shall also set forth the extent to which services and

programs shall be provided to Palau.

"Section 222

"The Government of Palau 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 law and which

shall grant such technical assistance in a manner which gives

priority consideration to Palau over other recipients not a part of

the United States, its territories or possessions and equivalent

consideration to Palau with respect to other states in Free

Association with the United States.

"Section 223

"The citizens of Palau who are receiving post-secondary education

assistance from the Government of the United States on the day

preceding the effective date of this Compact shall continue to be

eligible, if otherwise qualified, to receive such assistance to

complete their academic programs for a maximum of four years after

the effective date of this Compact.

"Section 224

"The Government of the United States and the Government of Palau

may agree from time to time to the extension to Palau of additional

United States grant assistance and of United States services and

programs as provided by the laws of the United States.

"ARTICLE III

"ADMINISTRATIVE PROVISIONS

"Section 231

"(a) The annual expenditure by the Government of Palau of the

grant amounts specified in Article I of this Title shall be in

accordance with an official national development plan promulgated

by the Government of Palau and concurred in by the Government of

the United States prior to the effective date of this Compact. This

plan may be amended from time to time by the Government of Palau.

"(b) The Government of the United States and the Government of

Palau recognize that the achievement of the goals of the plan

referred to in this Section depends upon the availability of

adequate internal revenue as well as economic assistance from

sources outside of Palau, including the Government of the United

States, and may, in addition, be affected by the impact of

exceptional, economically adverse circumstances. The Government of

Palau shall therefore report annually to the President of the

United States and to the Congress of the United States on the

implementation of this plan and on its use of the funds specified

in this Article. This report shall outline the achievements of the

plan to date and the need, if any, for an additional authorization

and appropriation of economic assistance for that year to account

for any exceptional, economically adverse circumstances. The

availability of such additional economic assistance from the

Government of the United States shall be subject to the

authorization and appropriation of funds by the Government of the

United States.

"Section 232

"The specific nature, extent and contractual arrangements of the

services and programs provided for in Section 221 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 Palau, and other arrangements in

connection with a service or program furnished by the Government of

the United States, are set forth in related agreements which shall

come into effect simultaneously with this Compact.

"Section 233

"The Government of the United States, in consultation with the

Government of Palau, shall determine and implement procedures for

the periodic audit of all grants and other assistance made under

this Title. Such audits shall be conducted at no cost to the

Government of Palau.

"Section 234

"Title to the property of the Government of the United States

situated in the Trust Territory of the Pacific Islands and in Palau

or acquired for or used by the Government of the Trust Territory of

the Pacific Islands on or before the day preceding the effective

date of this Compact shall, without reimbursement or transfer of

funds, vest in the Government of Palau as set forth in a separate

agreement which shall come into effect simultaneously with this

Compact. The provisions of this Section shall not apply to the

personal property of the Government of the United States for which

the Government of the United States determines a continuing

requirement.

"Section 235

"(a) Funds held in trust by the High Commissioner of the Trust

Territory of the Pacific Islands, in his official capacity, as of

the effective date of this Compact shall remain available as trust

funds to their designated beneficiaries. The Government of the

United States, in consultation with the Government of Palau, shall

appoint a new trustee who shall exercise the functions formerly

exercised by the High Commissioner of the Trust Territory of the

Pacific Islands.

"(b) To provide for the continuity of administration, and to

assure the Governments [sic] of Palau that the purposes of the laws

of the United States are carried out and that the funds of any

other trust fund in which the High Commissioner of the Trust

Territory of the Pacific Islands has authority of a statutory or

customary nature shall remain available as trust funds to their

designated beneficiaries, the Government of the United States

agrees to assume the authority formerly vested in the High

Commissioner of the Trust Territory of the Pacific Islands.

"Section 236

"Except as otherwise provided, approval of this Compact by the

Government of the United States shall constitute a pledge of the

full faith and credit of the United States for the full payment of

the sums and amounts specified in Article I of this Title. The

obligation of the Government of the United States under Article I

of this Title shall be enforceable in the United States Claims

Court [now United States Court of Federal Claims], or its successor

court, which shall have jurisdiction in cases arising under this

Section, 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.

"ARTICLE IV

"TRADE

"Section 241

"Palau is not included in the customs territory of the United

States.

"Section 242

"The President of the United States shall proclaim the following

tariff treatment for articles imported from Palau which shall apply

during the period of effectiveness of this Title:

"(a) Unless otherwise excluded, articles imported from Palau,

subject to the limitations imposed under sections 503(b) and 504(c)

of title 5 of the Trade Act of 1974 (19 U.S.C. 2463(b): 2464(c)),

shall be exempt from duty.

"(b) Only canned tuna provided for in item 112.30 of the Tariff

Schedules of the United States that is imported from the Federated

States of Micronesia, the Marshall Islands and Palau during any

calendar year not to exceed 10 percent of the United States

consumption of canned tuna 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 aggregate quantity of canned tuna that

is dutiable under rate column numbered 1 of such item 112.30 for

that calendar year.

"(c) The duty-free treatment provided under paragraph (1) shall

not apply to:

"(1) watches, clocks and timing apparatus provided for in

sub-part E of part 2 of schedule 7 of the Tariff Schedules of the

United States;

"(2) buttons (whether finished or not finished) provided for in

item 745.32 of such Schedules;

"(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 Palau, 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(b)(2) of

title V of the Trade Act of 1974.

"Section 243

"Articles imported from Palau which are not exempt from any duty

under paragraphs (a), (b), (c) and (d) of Section 242 shall be

subject to the rates of duty set forth in column numbered 1 of the

Tariff Schedules of the United States and all products of the

United States imported into Palau 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.

"ARTICLE V

"FINANCE AND TAXATION

"Section 251

"The currency of the United States is the official circulating

legal tender of Palau. Should the Government of Palau 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 Palau 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 such Government 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 Palau, domiciled therein and who is a nonresident

and not a citizen of the United States, shall be exempt from

estate, gift, and generation-skipping transfer taxes imposed by the

Government of the United States.

"Section 254

"(a) In determining any income tax imposed by the Government of

Palau, the Government of Palau shall have authority to impose tax

upon income derived by a resident of Palau from sources without

Palau in the same manner and to the same extent as the Government

of Palau imposes tax upon income derived from within its

jurisdiction. If the Government of Palau exercises such authority

as provided in this subsection, any individual resident of Palau

who is subject to tax by the Government of the United States on

income which is also taxed by the Government of Palau 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. For purposes

of this Section, the term 'resident of Palau' shall be deemed to

include any person who was physically present in Palau for a period

of 183 or more days during any taxable year. The relief from

liability referred to in this subsection means only:

"(1) 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

"(2) relief in the form of the exclusion under section 911 of

the United States Internal Revenue Code of 1954.

"(b) If the Government of Palau 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

"(a) For purposes of section 936 of the Internal Revenue Code of

1954 Palau shall be treated as if it was a possession of the United

States.

"(b) Subsection (a) of this Section shall not apply to Palau for

any period after December 31, 1986, during which there is not in

effect between Palau and the United States an exchange of

information agreement of the kind described in section 274(h)(6)(C)

(other than clause (ii) thereof) of the Internal Revenue Code of

1954.

"(c) If the tax incentives extended to Palau under subsection (a)

of this Section are, at any time during which the Compact is in

effect, reduced, the United States Secretary of the Treasury shall

negotiate an agreement with the Government of Palau under which,

when such agreement is approved by law, Palau will be provided with

benefits substantially equivalent to such reduction in benefits. If

within the 1-year period after the date of the enactment of the Act

making the reduction in benefits, an agreement negotiated under the

preceding sentence is not approved by law, the matter shall be

submitted to the Arbitration Board established pursuant to Section

424. For purposes of Article V of this Title, the Secretary of the

Treasury or his delegate shall be the member of such Board

representing the Government of the United States. Any decision of

such Board in the matter when approved by law shall be binding on

the United States, except that such decision rendered is binding

only as to whether the United States has provided the substantially

equivalent benefits referred to in this subsection.

"(d) For purposes of section 274(h)(3)(A) of the Internal Revenue

Code of 1954, the term 'North American area' shall include Palau.

"Section 256

"This Article shall apply to income earned, and transactions

occurring, after September 30, 1985, in taxable years ending after

such date.

"TITLE THREE

"SECURITY AND DEFENSE RELATIONS

"ARTICLE I

"AUTHORITY AND RESPONSIBILITY

"Section 311

"The territorial jurisdiction of the Republic of Palau shall be

completely foreclosed to the military forces and personnel or for

the military purposes of any nation except the United States of

America, and as provided for in Section 312.

"Section 312

"The Government of the United States has full authority and

responsibility for security and defense matters in or relating to

Palau. Subject to the terms of any agreements negotiated pursuant

to Article II of this Title, the Government of the United States

may conduct within the lands, water and airspace of Palau the

activities and operations necessary for the exercise of its

authority and responsibility under this Title. The Government of

the United States may invite the armed forces of other nations to

use military areas and facilities in Palau in conjunction with and

under the control of United States Armed Forces.

"Section 313

"The Government of Palau shall refrain from actions which the

Government of the United States determines, after consultation with

that Government, to be incompatible with its authority and

responsibility for security and defense matters in or relating to

Palau.

"ARTICLE II

"DEFENSE SITES AND OPERATING RIGHTS

"Section 321

"The Government of the United States may establish and use

defense sites in Palau, and may designate for this purpose land and

water areas and improvements in accordance with the provisions of a

separate agreement which shall come into force simultaneously with

this Compact.

"Section 322

"(a) When the Government of the United States desires to

establish or use such a defense site specifically identified in the

separate agreement referred to in Section 321, it shall so inform

the Government of Palau which shall make the designated site

available to the Government of the United States for the duration

and level of use specified.

"(b) With respect to any site not specifically identified in the

separate agreement referred to in Section 321, the Government of

the United States shall inform the Government of Palau, which shall

make the designated site available to the Government of the United

States for the duration and level of use specified, or shall make

available one alternative site acceptable to the Government of the

United States. If such alternative site is unacceptable to the

Government of the United States, the site first designated shall be

made available after such determination.

"(c) Compensation in full for designation, establishment or use

of defense sites is provided in Title Two of this Compact.

"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 Palau, are set forth in related

agreements which shall come into effect simultaneously with this

Compact.

"Section 324

"In the exercise in Palau of its authority and responsibility

under this Title, the Government of the United States shall not

use, test, store or dispose of nuclear, toxic chemical, gas or

biological weapons intended for use in warfare and the Government

of Palau assures the Government of the United States that in

carrying out its security and defense responsibilities under this

Title, the Government of the United States has the right to operate

nuclear capable or nuclear propelled vessels and aircraft within

the jurisdiction of Palau without either confirming or denying the

presence or absence of such weapons within the jurisdiction of

Palau.

"ARTICLE III

"DEFENSE TREATIES AND INTERNATIONAL SECURITY AGREEMENTS

"Section 331

"Subject to the terms of this Compact and its related agreements,

the Government of the United States, exclusively, shall assume and

enjoy, as to Palau, 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 the

day preceding the effective date of this Compact; and

"(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 Palau. Such a

determination by the Government of the United States shall be

preceded by appropriate consultation with the Government of Palau.

"ARTICLE IV

"SERVICE IN THE ARMED FORCES OF THE UNITED STATES

"Section 341

"Any citizen of Palau entitled to the privileges of Section 141

of this Compact 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 so

long as such person does not establish habitual residence in the

United States, its territories or possessions.

"Section 342

"The Government of the United States shall have enrolled, at any

one time, at least one qualified student from Palau as may be

nominated by the Government of Palau, in each of:

"(a) The United States Coast Guard Academy pursuant to 14 U.S.C.

195; and

"(b) The United States Merchant Marine Academy pursuant to 46

U.S.C. 1295b(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.

"ARTICLE V

"GENERAL PROVISIONS

"Section 351

"(a) The Government of the United States and the Government of

Palau shall establish a joint committee empowered to consider

disputes which may arise under the implementation of this Title and

its related agreements.

"(b) The membership of the joint committee shall comprise

selected senior officials of each of the participating 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 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 semi-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. Upon notification by the Government of the United

States, the joint committee shall meet promptly in combined session

with other such joint committees so notified. The joint committee

shall follow such procedures, including the establishment of

functional subcommittees, as the members may from time to time

agree.

"(d) Unresolved issues in the joint committee shall be referred

to the Government of the United States and the Government of Palau

for resolution, and the Government of Palau 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 this

Compact, the Government of the United States shall accord due

respect to the authority and responsibility of the Government of

Palau under this Compact and to the responsibility of the

Government of Palau to assure the well-being of Palau and its

people. The Government of the United States and the Government of

Palau agree that the authority and responsibility of the United

States set forth in this Title are exercised for the mutual

security and benefit of Palau and the United States, and that any

attack on Palau 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, or threat thereof, the Government of the

United States would take action to meet the danger to the United

States and Palau in accordance with its constitutional processes.

"Section 353

"(a) The Government of the United States shall not include the

Government of Palau as a named party to a formal declaration of

war, without the consent of the Government of Palau.

"(b) Absent such consent, this Compact 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 Palau which arise out of armed conflict

subsequent to the effective date of this Compact 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.

"TITLE FOUR

"GENERAL PROVISIONS

"ARTICLE I

"APPROVAL AND EFFECTIVE DATE

"Section 411

"This Compact shall come into effect upon mutual agreement

between the Government of the United States, acting in fulfillment

of its responsibilities as Administering Authority of the Trust

Territory of the Pacific Islands, and the Government of Palau,

subsequent to completion of the following:

"(a) Approval by the Government of Palau in accordance with its

constitutional processes;

"(b) Approval by the people of Palau in a referendum called on

this Compact; and

"(c) 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 and the Government of Palau

shall confer promptly at the request of the other on matters

relating to the provisions of this Compact or of its related

agreements.

"Section 422

"In the event the Government of the United States or the

Government of Palau, after conferring pursuant to Section 421,

determines that there is a dispute and gives written notice

thereof, the Governments shall make a good faith effort to resolve

the dispute among themselves.

"Section 423

"If a dispute between the Government of the United States and the

Government of Palau 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 and each of the two parties 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) 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 VI 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. 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 Palau.

"ARTICLE III

"AMENDMENT AND REVIEW

"Section 431

"The provisions of this Compact may be amended at any time by

mutual agreement of the Government of the United States and the

Government of Palau in accordance with their respective

constitutional processes.

"Section 432

"Upon the fifteenth and thirtieth and fortieth anniversaries of

the effective date of this Compact, the Government of the United

States and the Government of Palau shall formally review the terms

of this Compact and its related agreements and shall consider the

overall nature and development of their relationship. In these

formal reviews, the governments shall consider the operating

requirements of the Government of Palau and its progress in meeting

the development objectives set forth in the plan referred to in

Section 231(a). The governments commit themselves to take specific

measures in relation to the findings of conclusions resulting from

the review. Any alteration to the terms of this Compact or its

related agreements shall be made by mutual agreement and the terms

of this Compact and its related agreements shall remain in force

until otherwise amended or terminated pursuant to Title Four of

this Compact.

"ARTICLE IV

"TERMINATION

"Section 441

"This Compact may be terminated by mutual agreement and subject

to Section 451.

"Section 442

"This Compact may be terminated by the Government of the United

States subject to Section 452, such termination to 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.

"Section 443

"This Compact shall be terminated, pursuant to its constitutional

processes, by the Government of Palau subject to Section 452 if the

people of Palau vote in a plebiscite to terminate. The Government

of Palau 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 such government 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, such

government 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

"Should termination occur pursuant to Section 441, economic

assistance by the Government of the United States shall continue on

mutually agreed terms.

"Section 452

"Should termination occur pursuant to Section 442 or 443, the

following provisions of this Compact shall remain in full force and

effect until the fiftieth anniversary of the effective date of this

Compact and thereafter as mutually agreed:

"(a) Article I and Section 233 of Title Two;

"(b) Title Three; and

"(c) Articles II, III, V and VI of Title Four.

"Section 453

"Notwithstanding any other provision of this Compact:

"(a) The provisions of Section 311, even if Title Three should

terminate, are binding and shall remain in effect for a period of

50 years and thereafter until terminated or otherwise amended by

mutual consent;

"(b) The related agreements referred to in Article II of Title

Three shall remain in effect in accordance with their terms; and

"(c) The Government of the United States reaffirms its continuing

interest in promoting the long-term economic advancement and

self-sufficiency of the people of Palau.

"Section 454

"Any provision of this Compact which remains in effect by

operation of Section 452 shall be construed and implemented in the

same manner as prior to any termination of this Compact pursuant to

Section 442 or 443.

"ARTICLE VI

"DEFINITION OF TERMS

"Section 461

"For the purpose of this Compact 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

administrative districts of Kosrae, Yap, Palau, 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 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) 'Palau' is used in a geographic sense and includes 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 consistent with the Compact and its

related agreements.

"(d) 'Government of Palau' means the Government established and

organized by the Constitution of Palau including all the political

subdivisions and entities comprising that Government.

"(e) 'Habitual Residence' means a place of general abode or a

principal, actual dwelling place of a continuing or lasting nature;

provided, however, that this term shall not apply to the residence

of any person who entered the United States for the purpose of full

time studies as long as such person maintains that status, or who

has been physically present in the United States or Palau for less

than one year, or who is a dependent of a resident representative,

as described in Section 152.

"(f) For the purposes of Article IV of Title One of this Compact:

"(1) 'Actual Residence' means physical presence in Palau during

eighty-five percent of the period of residency required by

Section 141(a)(3); and

"(2) 'Certificate of Actual Residence' means a certificate

issued to a naturalized citizen by the Government which has

naturalized him stating that the citizen has complied with the

actual residence requirement of Section 141(a)(3).

"(g) 'Defense Sites' means those land and water areas and

improvements thereon in Palau reserved or acquired by the

Government of Palau for use by the Government of the United States,

as set forth in the related agreements referred to in Section 321.

"(h) 'Capital Account' means, for each year of the Compact, those

portions of the total grant assistance provided in Article I of

Title Two, which are to be obligated for:

"(1) the construction or major repair of capital

infrastructure; or

"(2) public and private sector projects identified in the

official overall economic development plan.

"(i) 'Current Account' means, for each year of the Compact, those

portions of the total grant assistance provided in Article I of

Title Two, which are to be obligated for recurring operational

activities including infrastructure maintenance as identified in

the annual budget justifications submitted yearly to the Government

of the United States.

"(j) 'Official National Development Plan' means the documented

program of annual development which identifies the specific policy

and project activities necessary to achieve a specified set of

economic goals and objectives during the period of free

association, consistent with the economic assistance authority in

Title Two. Such a document should include an analysis of population

trends, manpower requirements, social needs, gross national product

estimates, resource utilization, infrastructure needs and

expenditures, and the specific private sector projects required to

develop the local economy of Palau. Project identification should

include initial cost estimates, with project purposes related to

specific development goals and objectives.

"(k) '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.

"(l) '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

"The Government of the United States and the Government of Palau

shall conclude related agreements which shall come into effect and

shall survive in accordance with their terms, and which shall be

construed and implemented in a manner consistent with this Compact,

as follows:

"(a) Agreement Regarding the Provision of Telecommunication

Services by the Government of the United States to Palau Concluded

Pursuant to Section 131 of the Compact of Free Association;

"(b) Agreement Regarding the Operation of Telecommunication

Services of the Government of the United States in Palau, Concluded

Pursuant to Section 132 of the Compact of Free Association;

"(c) Agreement on Extradition, Mutual Assistance in Law

Enforcement Matters and Penal Sanctions Concluded Pursuant to

Section 175 of the Compact of Free Association;

"(d) Agreement Regarding United States Economic Assistance to the

Government of Palau Concluded Pursuant to Section 211(f) of the

Compact of Free Association;

"(e) Agreement Regarding Construction Projects in Palau Concluded

Pursuant to Section 212(a) of the Compact of Free Association;

"(f) Agreement Regarding Federal Programs and Services, and

Concluded Pursuant to Article II of Title Two and Section 232 of

the Compact of Free Association;

"(g) Agreement Regarding Property Turnover, Concluded Pursuant to

Section 234 of the Compact of Free Association;

"(h) Agreement Regarding the Military Use and Operating Rights of

the Government of the United States in Palau Concluded Pursuant to

Sections 321 and 322 of the Compact of Free Association; and

"(i) Status of Forces Agreement Concluded Pursuant to Section 323

of the Compact of Free Association.

"(j) Agreement regarding the Jurisdication [sic] and Sovereignty

of the Republic of Palau over its Territory and the Living and

Non-living Resources of the Sea.

"ARTICLE VII

"CONCLUDING PROVISIONS

"Section 471

"(a) The Government of the United States and the Government of

Palau agree that they have full authority under their respective

constitutions to enter into this Compact and its related agreements

and to fulfill all of their respective responsibilities in

accordance with the terms of this Compact and its related

agreements. The Governments pledge that they are so committed.

"(b) The Government of the United States and the Government of

Palau shall take all necessary steps, of a general or particular

character, to ensure, not later than the effective date of this

Compact, that their laws, regulations and administrative procedures

are such as to effect the commitments referred to in Section

471(a).

"(c) Without prejudice to the effects of this Compact under

international law, this Compact has the force and effect of a

statute under the laws of the United States.

"Section 472

"This Compact may be accepted, by signature or otherwise, by the

Government of the United States and the Government of Palau. Each

government shall possess an original English language version.

"IN WITNESS THEREOF, the undersigned, duly authorized, have

signed this Compact of Free Association which shall come into

effect in accordance with its terms between the Government of the

United States and the Government of Palau.

"DONE AT __________, THIS ___ DAY

"OF __, ONE THOUSAND NINE HUNDRED EIGHTY-FIVE

"FOR THE GOVERNMENT

"OF

"THE UNITED STATES OF AMERICA

"____________

"DONE AT __________, THIS ___ DAY

"OF __, ONE THOUSAND NINE HUNDRED EIGHTY-FIVE

"FOR THE GOVERNMENT

"OF

"THE REPUBLIC OF PALAU

"____________".

[For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.]

-EXEC-

PROC. NO. 6726. PLACING INTO FULL FORCE AND EFFECT COMPACT OF FREE

ASSOCIATION WITH REPUBLIC OF PALAU

Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, provided:

Since July 18, 1947, the United States has administered the

United Nations Trust Territory of the Pacific Islands ("Trust

Territory"), which has included the Northern Mariana Islands, the

Federated States of Micronesia, the Marshall Islands, and Palau.

On November 3, 1986, a Covenant between the United States and the

Northern Mariana Islands [48 U.S.C. 1801 note] came into force.

This Covenant established the Commonwealth of the Northern Mariana

Islands as a self-governing Commonwealth in political union with

and under the sovereignty of the United States.

On October 21, 1986, in the case of the Republic of the Marshall

Islands, and on November 3, 1986, in the case of the Federated

States of Micronesia, Compacts of Free Association with the United

States [48 U.S.C. 1901 note] became effective. Under the Compacts,

the Federated States of Micronesia and the Republic of the Marshall

Islands became self-governing sovereign states, in free association

with the United States. Following the changes in political status

of the Northern Mariana Islands, the Marshall Islands, and the

Federated States of Micronesia, the Trusteeship Agreement ceased to

be applicable to those entities and only Palau remained as the

Trust Territory of the Pacific Islands.

On January 10, 1986, the Government of the United States and the

Government of Palau concluded a Compact of Free Association [set

out above] similar to those that the United States entered into

with the Republic of the Marshall Islands and with the Federated

States of Micronesia. As in those instances, it was specified that

the Compact with Palau would come into effect upon (1) mutual

agreement between the Government of the United States, acting in

fulfillment of its responsibilities as Administering Authority of

the Trust Territory of the Pacific Islands, and the Government of

Palau; (2) the approval of the Compact by the two Governments, in

accordance with their constitutional processes; and (3) the

approval of the Compact by plebiscite in Palau.

In Palau the Compact has been approved by the Government in

accordance with its constitutional processes and by a United

Nations-observed plebiscite on November 9, 1993, a sovereign act of

self-determination. In the United States the Compact was approved

by Public Law 99-658 of November 14, 1986 [48 U.S.C. 1931 et seq.],

and Public Law 101-219 of December 12, 1989 [48 U.S.C. 1951 et

seq.].

On May 25, 1994, the Trusteeship Council of the United Nations

concluded that the Government of the United States had

satisfactorily discharged its obligations as the Administering

Authority under the terms of the Trusteeship Agreement and that the

people of Palau had freely exercised their right to

self-determination and considered that it was appropriate for the

Trusteeship Agreement to be terminated. The Council asked the

United States to consult with the Government of Palau and to agree

on a date, on or about October 1, 1994, for entry into force of

their new status agreement.

On July 15, 1994, the Government of the United States and the

Government of the Republic of Palau agreed, pursuant to section 411

of the Compact of Free Association, that as between the United

States and the Republic of Palau, the effective date of the Compact

shall be October 1, 1994.

As of this day, September 27, 1994, the United States has

fulfilled its obligations under the Trusteeship Agreement with

respect to the Republic of Palau. On October 1, 1994, the Compact

will enter into force between the United States and the Republic of

Palau, and Palau will thereafter be self-governing and no longer

subject to the Trusteeship. In taking these actions, the United

States is implementing the freely expressed wishes of the people of

Palau.

NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United

States of America, by the authority vested in me by the

Constitution and laws of the United States, including sections 101

and 102 of the Joint Resolution to approve the "Compact of Free

Association" between the United States and the Government of Palau,

and for other purposes, approved on November 14, 1986 (Public Law

99-658) [48 U.S.C. 1931, 1932], and section 101 of the Joint

Resolution to authorize entry into force of the Compact of Free

Association between the United States and the Government of Palau,

and for other purposes, approved on December 12, 1989 (Public Law

101-219) [48 U.S.C. 1951], and pursuant to section 1002 of the

Covenant to Establish a Commonwealth of the Northern Mariana

Islands in Political Union with the United States of America [48

U.S.C. 1801 note], and consistent with sections 101 and 102 of the

Joint Resolution to approve the "Compact of Free Association" and

for other purposes, approved on January 14, 1986 (Public Law

99-239) [48 U.S.C. 1901, 1902], do hereby find, declare, and

proclaim as follows:

Section 1. I determine that the Trusteeship Agreement for the

Pacific Islands will be no longer in effect with respect to the

Republic of Palau as of October 1, 1994, at one minute past one

o'clock p.m. local time in Palau. This constitutes the

determination referred to in section 1002 of the Covenant with the

Northern Mariana Islands (Public Law 94-241).

Sec. 2. The Compact of Free Association with the Republic of

Palau will be in full force and effect as of October 1, 1994, at

one minute past one o'clock p.m. local time in Palau.

Sec. 3. I am gratified that the people of the Republic of Palau,

after 47 years of Trusteeship, have freely chosen to establish a

relationship of Free Association with the United States.

IN WITNESS WHEREOF, I have hereunto set my hand this

twenty-seventh day of September, in the year of our Lord nineteen

hundred and ninety-four, and of the Independence of the United

States of America the two hundred and nineteenth.

William J. Clinton.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1951, 1955, 1972 of this

title.

-FOOTNOTE-

(!1) So in original. Probably should be "or".

(!2) So in original. Probably should be subsection "(c)".

-End-

-CITE-

48 USC Sec. 1932 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part A - Approval of Compact and Supplemental Provisions

-HEAD-

Sec. 1932. Extension of Compact of Free Association to Palau

-STATUTE-

(a) The interpretation of and United States Policy Regarding the

Compact of Free Association set forth in section 1904 of this title

shall apply to the Compact of Free Association with Palau.

(b) The provisions of section 1905 of this title, except for

subsection (i), section 1906 of this title, section 1910 of this

title, and section 1911(a) and (d) of this title shall apply to

Palau in the same manner and to the same extent as such sections

apply to the Marshall Islands.

-SOURCE-

(Pub. L. 99-658, title I, Sec. 102, Nov. 14, 1986, 100 Stat. 3675.)

-REFTEXT-

REFERENCES IN TEXT

The Compact of Free Association with Palau, referred to in

subsec. (a), is the Compact of Free Association between the United

States and the Government of Palau, which is contained in section

201 of Pub. L. 99-658, set out as a note under section 1931 of this

title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1959 of this title.

-End-

-CITE-

48 USC Sec. 1933 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part A - Approval of Compact and Supplemental Provisions

-HEAD-

Sec. 1933. Supplemental provisions

-STATUTE-

(a) Civic Action Teams

In recognition of the special development needs of Palau and the

Marshall Islands, the United States shall make available United

States military Civic Action Teams for use in Palau or the Marshall

Islands under terms and conditions mutually agreed upon by the

Government of the United States and the Governments of Palau or the

Marshall Islands, as appropriate. The Government of Palau may use

the amount of $250,000 annually from current account funds provided

pursuant to section 211 of the Compact to defray expenditures

attendant to the operation of the Civic Action Teams made available

pursuant to this subsection. The Government of the Marshall Islands

may use the amount of $250,000 annually from current account funds

provided under section 211 of Title Two of the Compact of Free

Association with the Marshall Islands to defray expenditures

attendant to the operation of the Civic Action Teams made available

pursuant to this subsection.

(b) Inventory and study of natural, historic, and other resources

The Secretary of the Interior shall conduct, upon request of

Palau, the Federated States of Micronesia or the Marshall Islands,

and through the Director of the National Park Service, a

comprehensive inventory and study of the most unique and

significant natural, historical, cultural, and recreational

resources of Palau, the Federated States of Micronesia or the

Marshall Islands. Areas or sites exhibiting such qualities shall be

described and evaluated with the objective of the preservation of

their values and their careful use and appreciation by the public,

along with a determination of their potential for attracting

tourism. Alternative methodologies for such preservation and use

shall be developed for each area or site (including continued

assistance from the National Park Service); current or impending

damage or threats to the resources of such areas or sites shall be

identified and evaluated; and authorities needed to properly

protect and allow for public use and appreciation shall be

identified and discussed. Such inventory and study shall be

conducted in full cooperation and consultation with affected

governmental officials and the interested public. A full report on

such inventory and study shall be transmitted to Palau or the

Federated States of Micronesia or the Marshall Islands, the

Committee on Interior and Insular Affairs of the United States

House of Representatives and the Committee on Energy and Natural

Resources of the United States Senate no later than two complete

calendar years after November 14, 1986. The inventory and study

shall also identify areas or sites which, if they were located in

the United States, would qualify to be listed on the Registry of

Natural Landmarks and the National Register of Historic Places.

(c) Omitted

(d) Peleliu and Angaur

Not later than one year after November 14, 1986, the Secretary of

Agriculture, after appropriate studies conducted in consultation

with the Government of Palau, shall report to the President and the

Congress concerning the feasibility and cost of rehabilitating and

restoring the fertility of the topsoil of the islands of Peleliu

and Angaur. Upon the request of the Government of Palau, the

President shall make the report of the Secretary of Agriculture

available to the Government of Palau. Technical assistance to

accomplish such rehabilitation and restoration, if feasible, may be

provided to the Government of Palau on a nonreimbursable basis,

subject to the availability of appropriated funds.

(e) Power generation

Neither the Secretary of the Treasury nor any other officer or

agent of the United States shall pay or transfer any portion of the

sum and amounts payable to the Government of Palau pursuant to this

joint resolution to any party other than the Government of Palau,

except under the procedures established by the Compact and its

related agreements. No funds appropriated pursuant to the Compact,

this Act, or any other Act for grants or other assistance to Palau

may be used to satisfy any obligation or expense incurred by Palau

prior to November 14, 1986, with respect to any contract or debt

related to any electrical generating plant or related facilities

entered into or incurred by Palau which has not been specifically

authorized by Congress in advance, except that the Government of

Palau may use any portion of the annual grant under section 211(b)

(!1) not required to be devoted to the energy needs of those parts

of Palau not served by its central power generating facilities and

any portion of the funds under section 212(b) of the Compact for

such purpose.

(f) Reduction of appropriations

Amounts appropriated to be paid pursuant to section 177 of

Article I of Title One or Articles I and III of Title Two of the

Compact of Free Association with the Federated States of Micronesia

and the Marshall Islands, as set forth in Title II of the Compact

of Free Association Act of 1985, or pursuant to section 103(h),

103(k), or 105(m) of such Act [48 U.S.C. 1903(h), (k), 1905(m)]

(Public Law 99-239), or pursuant to Article I of Title Two of the

Compact with Palau, as set forth in Title II of this joint

resolution, or subsection (l) (!2) of this section shall not be

reduced, notwithstanding Public Law 99-177, Public Law 99-366, and

other law enacted to implement Public Law 99-177, or any other

provision of law.

(g) Understandings, interpretations, and policy statements

The Congress reaffirms all of the understandings,

interpretations, and policy statements contained in Public Law

99-239 (99 Stat. 1770) [48 U.S.C. 1901 et seq., 2001 et seq.].

Congressional Resolution 4-60 adopted by the 4th Congress of the

Federated States of Micronesia on March 26, 1986 and Resolution No.

62 adopted by the Nitijela of the Marshall Islands on February 18,

1986 do not exclude, limit or modify any provision of the Compact

of Free Association as approved by the United States. To the extent

that any understandings, interpretations, and policy statements

contained in such Resolutions are inconsistent with the provisions

of Public Law 99-239, the United States does not concur therein.

The President shall take such steps, including but not limited to,

communicating with the Governments of the Federated States of

Micronesia and the Republic of the Marshall Islands, as may be

necessary to preserve all rights of the United States in connection

with interpretation and implementation of such Public Law.

(h) Additional provisions relating to Title Three of Compact

(1) The Government of the United States recognizes and respects

the scarcity and special importance of land in Palau. In making any

designation of land pursuant to section 322 of the Compact, 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 the requirement through public real

property, where available, rather than through private real

property.

(2) The Armed Forces of other nations invited to use military

areas and facilities in Palau pursuant to section 312 of the

Compact shall be permitted only as it is incident to the authority

and under the control of the United States. The activities of such

third country forces shall be subject to the same limitations and

restrictions applicable to the authority of the United States under

the terms of the Compact.

(3) The Government of the United States considers "Exclusive use"

areas established for the United States pursuant to Title Three of

the Compact to be "within the jurisdiction of Palau," as that term

is used in section 324 of the Compact.

(i) Availability of appropriations

Notwithstanding any other provision of law, funds appropriated

for the Compact of Free Association, Public Law 99-239 [48 U.S.C.

1901 et seq., 2001 et seq.], or this joint resolution, in the act

of making supplemental appropriations for fiscal year 1986, shall

remain available until expended.

(j) Authority to contract or make payments

(1), (2) Omitted

(3) No authority under this subsection to enter into contracts or

to make payments shall be effective except to the extent and in

such amounts as provided in advance in appropriations Acts. Any

provision of this subsection which authorizes the enactment of new

budget authority shall be effective only for fiscal years beginning

after September 30, 1985.

(k) Annual report

The Departments of Energy and Interior are directed to provide

the Committees on Appropriations of the House and Senate with a

report by December 1 of each fiscal year detailing how funds were

spent during the previous fiscal year for the special medical care

and logistical support program for Rongelap and Utrik and for the

agriculture and food programs for Eniwetok and Bikini as referenced

in Section 103(h) of Public Law 99-239 [48 U.S.C. 1903(h)]. The

report shall also specify the anticipated needs during the current

and following fiscal years in order to meet the radiological health

care and logistical support program for Rongelap and Utrik and the

planting, agricultural maintenance, and food programs for Eniwetok

and Bikini. It is the sense of the Congress that the special

medical care and logistical support program for Rongelap and Utrik

and for the agriculture and food programs for Eniwetok and Bikini

described in section 103(h) of Public Law 99-239 represent special

and continuing moral commitments of the United States which will be

annually funded to the extent of the need of the populations of

such atolls for such assistance.

-SOURCE-

(Pub. L. 99-658, title I, Sec. 104, Nov. 14, 1986, 100 Stat. 3675;

Pub. L. 101-219, title I, Sec. 105, Dec. 12, 1989, 103 Stat. 1871.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the United States and the Government of Palau,

which is contained in section 201 of Pub. L. 99-658, set out as a

note under section 1931 of this title.

The Compact of Free Association with the Marshall Islands and the

Compact of Free Association with the Federated States of Micronesia

and the Marshall Islands, referred to in subsecs. (a) and (f), are

contained in the Compact of Free Association, which is contained in

section 201 of Pub. L. 99-239, set out as a note under section 1901

of this title.

This joint resolution and this Act, referred to in subsecs. (e),

(f), and (i), is Pub. L. 99-658, Nov. 14, 1986, 100 Stat. 3672, as

amended, which is classified generally to this part. Title II of

this joint resolution enacted section 1934 of this title and

provisions set out as a note under section 1931 of this title. For

complete classification of this Act to the Code, see Tables.

The Compact of Free Association Act of 1985 and Public Law

99-239, referred to in subsecs. (f), (g), and (i), is Pub. L.

99-239, Jan. 14, 1986, 99 Stat. 1770, as amended, which is

classified principally to subchapter I (Sec. 1901 et seq.) of this

chapter and chapter 19 (Sec. 2001 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 1901 of this title and Tables.

Public Law 99-177, referred to in subsec. (f), is Pub. L. 99-177,

Dec. 12, 1985, 99 Stat. 1037, as amended. For complete

classification of this Act to the Code, see Tables.

Public Law 99-366, referred to in subsec. (f), is Pub. L. 99-366,

July 31, 1986, 100 Stat. 773. For complete classification of this

Act to the Code, see Tables.

The Compact of Free Association, referred to in subsecs. (g) and

(i), probably means the Compact of Free Association between the

Government of the United States and the Governments of the Marshall

Islands and the Federated States of Micronesia, which is contained

in section 201 of Pub. L. 99-239, set out as a note under section

1901 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

Section is comprised of section 104 of Pub. L. 99-658. Subsec.

(c) of section 104 of Pub. L. 99-658 amended section 1905 of this

title. Subsec. (j)(1) and (2) of section 104 of Pub. L. 99-658

amended sections 460ff-3 and 460ff-5 of Title 16, Conservation.

-MISC1-

AMENDMENTS

1989 - Subsec. (e). Pub. L. 101-219 amended subsec. (e)

generally. Prior to amendment, subsec. (e) read as follows:

"Neither the Secretary of the Treasury nor any other officer or

agent of the United States shall pay or transfer any portion of the

sums and amounts payable to the Government of Palau pursuant to

this joint resolution to any party other than the Government of

Palau. The provisions of section 174(a) of the Compact shall apply

with respect to any action based on a contract or debt related to

any electrical generating plant or related facilities entered into

or incurred by Palau prior to the date of enactment of this joint

resolution."

-CHANGE-

CHANGE OF NAME

Committee on Interior and Insular Affairs of House of

Representatives changed to Committee on Natural Resources of House

of Representatives by House Resolution No. 5, One Hundred Third

Congress, Jan. 5, 1993. Committee on Natural Resources of House of

Representatives treated as referring to Committee on Resources of

House of Representatives by section 1(a) of Pub. L. 104-14, set out

as a note preceding section 21 of Title 2, The Congress.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1962 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be followed by "of the

Compact".

(!2) So in original. This section does not contain a subsec.

(l).

-End-

-CITE-

48 USC Sec. 1934 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part A - Approval of Compact and Supplemental Provisions

-HEAD-

Sec. 1934. Jurisdiction

-STATUTE-

(a) Maritime and territorial jurisdiction

With respect to section 321 of the Compact of Free Association

and its related agreements, the jurisdictional provisions set forth

in subsection (b) of this section shall apply only to the citizens

and nationals of the United States and aliens lawfully admitted to

the United States for permanent residence who are in Palau.

(b) Defense sites

The defense sites of the United States established in Palau in

accordance with the Compact of Free Association and its related

agreements are within the special maritime and territorial

jurisdiction of the United States as set forth in section 7, title

18.

(c) Offenses

(1) Any person referred to in subsection (a) of this section who

within or upon such defense sites is guilty of any act or omission

which, although not made punishable by any enactment of Congress,

would be punishable if committed or omitted within the jurisdiction

of the territory of Guam by the laws thereof, in force at the time

of such act or omission, shall be guilty of a like offense and

subject to a like punishment.

(2) The District Court of Guam shall have jurisdiction to try all

criminal offenses against the United States, including the laws of

Guam made applicable to the defense sites in Palau by virtue of

subsection (c)(1) of this section, committed by any person referred

to in subsection (a) of this section.

(3) The District Court of Guam may appoint one or more magistrate

judges for the defense sites in Palau. Such Magistrate Judges shall

have the power and the status of Magistrate Judges appointed

pursuant to chapter 43, title 28: Provided however, That such

Magistrate Judges shall have the power to try persons accused of,

and sentence persons convicted of, petty offenses, as defined in

section 1(3),(!1) title 18, including violations of regulations for

the maintenance of peace, order, and health issued by the

Commanding Officer on such defense sites, without being subject to

the restrictions provided for in section 3401(b), title 18.

-SOURCE-

(Pub. L. 99-658, title II, Sec. 202, Nov. 14, 1986, 100 Stat. 3704;

Pub. L. 101-650, title III, Sec. 321, Dec. 1, 1990, 104 Stat.

5117.)

-REFTEXT-

REFERENCES IN TEXT

The Compact of Free Association, referred to in subsecs. (a) and

(b), is the Compact of Free Association between the United States

and the Government of Palau, which is contained in section 201 of

Pub. L. 99-658, set out as a note under section 1931 of this title.

Section 1 of title 18, referred to in subsec. (c)(3), was

repealed by Pub. L. 98-473, title II, Sec. 218(a)(1), Oct. 12,

1984, 98 Stat. 2027.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

Section was enacted as part of title II of Pub. L. 99-658, not as

part of title I of Pub. L. 99-658 which comprises this part.

-CHANGE-

CHANGE OF NAME

Words "magistrate judges" and "Magistrate Judges" substituted for

"magistrates" and "Magistrates", respectively, wherever appearing

in subsec. (c)(3) pursuant to section 321 of Pub. L. 101-650, set

out as a note under section 631 of Title 28, Judiciary and Judicial

Procedure.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

48 USC Part B - Implementation of Compact 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

PART B - IMPLEMENTATION OF COMPACT

-End-

-CITE-

48 USC Sec. 1951 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1951. Entry into force of Compact

-STATUTE-

Notwithstanding the provisions of Section 101(d)(1)(B) of Public

Law 99-658 [48 U.S.C. 1931(d)(1)(B)], entry into force of the

Compact of Free Association between the United States and Palau

(set forth in title II of Public Law 99-658 and hereafter in this

joint resolution referred to as the "Compact") in accordance with

subsections (a) and (d) of section 101 of Public Law 99-658 (100

Stat. 3673) [48 U.S.C. 1931(a), (d)] is hereby authorized -

(1) subject to the condition that the Compact, as approved by

the Congress in Public Law 99-658, is approved by the requisite

percentage of the votes cast in a referendum conducted pursuant

to the Constitution of Palau, and such approval is free from any

legal challenge, and

(2) upon expiration of 30 days, in which either the House of

Representatives or the Senate of the United States is in session,

after the President notifies the Committees on Interior and

Insular Affairs and Foreign Affairs of the House of

Representatives and the Committee on Energy and Natural Resources

of the Senate of the effective date of the Compact.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 101, Dec. 12, 1989, 103 Stat.

1870.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 99-658, referred to in text, is Pub. L. 99-658, Nov.

14, 1986, 100 Stat. 3672, as amended, which is classified generally

to part A of this subchapter. Title II of Pub. L. 99-658 enacted

section 1934 of this title and provisions set out as a note under

section 1931 of this title. For complete classification of this Act

to the Code, see Tables.

The Compact of Free Association between the United States and

Palau, referred to in text, is contained in section 201 of Pub. L.

99-658, set out as a note under section 1931 of this title.

This joint resolution, referred to in text, is Pub. L. 101-219,

Dec. 12, 1989, 103 Stat. 1870, which enacted this part and sections

1846 and 1972 of this title, amended sections 1615 and 1933 of this

title and section 3791 of Title 42, The Public Health and Welfare,

and enacted provisions set out as a note under section 1905 of

Title 44, Public Printing and Documents. For complete

classification of this joint resolution to the Code, see Tables.

For Oct. 1, 1994, as the effective date of the Compact, referred

to in par. (2), see Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777,

set out as a note under section 1931 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-CHANGE-

CHANGE OF NAME

Committee on Interior and Insular Affairs of House of

Representatives changed to Committee on Natural Resources of House

of Representatives by House Resolution No. 5, One Hundred Third

Congress, Jan. 5, 1993. Committee on Natural Resources of House of

Representatives treated as referring to Committee on Resources of

House of Representatives by section 1(a) of Pub. L. 104-14, set out

as a note preceding section 21 of Title 2, The Congress.

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2.

-End-

-CITE-

48 USC Sec. 1952 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1952. Fiscal procedures assistance

-STATUTE-

Upon request of the Government of Palau, the Secretary of the

Interior shall provide assistance to the Government of Palau to

develop and promulgate regulations for the effective expenditure of

funds received pursuant to this joint resolution, Public Laws

99-658 [48 U.S.C. 1931 et seq.] and 99-239 [48 U.S.C. 1901 et seq.,

2001 et seq.], or any other Act of Congress.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 102, Dec. 12, 1989, 103 Stat.

1870.)

-REFTEXT-

REFERENCES IN TEXT

This joint resolution, referred to in text, is Pub. L. 101-219,

Dec. 12, 1989, 103 Stat. 1870, which enacted this part and sections

1846 and 1972 of this title, amended sections 1615 and 1933 of this

title and section 3791 of Title 42, The Public Health and Welfare,

and enacted provisions set out as a note under section 1905 of

Title 44, Public Printing and Documents. For complete

classification of this joint resolution to the Code, see Tables.

Public Law 99-658, referred to in text, is Pub. L. 99-658, Nov.

14, 1986, 100 Stat. 3672, as amended, which is classified generally

to part A of this subchapter. For complete classification of this

Act to the Code, see Tables.

Public Law 99-239, referred to in text, is Pub. L. 99-239, Jan.

14, 1986, 99 Stat. 1770, as amended, known as the Compact of Free

Association Act of 1985, which is classified principally to

subchapter I of this chapter and chapter 19 (Sec. 2001 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1901 of this title and

Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1953 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1953. Antidrug program

-STATUTE-

(a) Plan

The Department of the Interior shall develop, in cooperation with

the Government of Palau and the National Drug Control Policy

Office, a plan for an antidrug program in Palau. The plan shall be

submitted to the Committees on Interior and Insular Affairs,

Foreign Affairs, and Appropriations of the House of Representatives

and the Committees on Energy and Natural Resources and

Appropriations of the Senate by April 1, 1990. The plan shall: (1)

identify the specific needs and costs of such an antidrug program;

(2) shall identify all existing resources to be allocated for its

implementation by the Government of the United States and the

Government of Palau; and (3) shall recommend priority use for

additional resources, assuming such resources are made available.

(b) Agreement

Following completion of the plan, the President and the

Government of Palau shall negotiate an agreement to facilitate

implementation of the plan. Such agreement may include -

(1) that the Government of Palau may request, on a long-term or

case-by-case basis, that the officers of United States law

enforcement agencies may conduct investigations consistent with

implementation of the plan in cooperation with the law

enforcement agencies of the Government of Palau;

(2) that the Government of Palau or the Government of the

United States may agree to provide specific resources, on a

one-time or a multiyear basis, to strengthen the antidrug

program; and

(3) a specific description of the technical assistance,

training, and equipment to be provided to Palau by the United

States necessary to implement the plan.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 103, Dec. 12, 1989, 103 Stat.

1870.)

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-CHANGE-

CHANGE OF NAME

Committee on Interior and Insular Affairs of House of

Representatives changed to Committee on Natural Resources of House

of Representatives by House Resolution No. 5, One Hundred Third

Congress, Jan. 5, 1993. Committee on Natural Resources of House of

Representatives treated as referring to Committee on Resources of

House of Representatives by section 1(a) of Pub. L. 104-14, set out

as a note preceding section 21 of Title 2, The Congress.

Committee on Foreign Affairs of House of Representatives treated

as referring to Committee on International Relations of House of

Representatives by section 1(a) of Pub. L. 104-14, set out as a

note preceding section 21 of Title 2.

-End-

-CITE-

48 USC Sec. 1954 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1954. Public auditor and special prosecutor

-STATUTE-

(a) (!1) Upon request of the Government of Palau the President

shall provide, on a nonreimbursable basis, appropriate technical

assistance to the public auditor or special prosecutor. The

assistance provided pursuant to this subsection for the first five

years after the effective date of the Compact shall, upon the

request of the Government of Palau, and to the extent personnel are

available, include (but not be limited to) the full time services

of -

(1) an auditor or accountant, as determined by the public

auditor, for the office of public auditor; and

(2) an attorney or investigator, as determined by the special

prosecutor, for the office of special prosecutor.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 104, Dec. 12, 1989, 103 Stat.

1871.)

-REFTEXT-

REFERENCES IN TEXT

For Oct. 1, 1994, as the effective date of the Compact, referred

to in text, see Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, set

out as a note under section 1931 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-FOOTNOTE-

(!1) So in original. No subsec. (b) has been enacted.

-End-

-CITE-

48 USC Sec. 1955 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1955. Audit certification

-STATUTE-

The chief officer of any agency conducting an audit pursuant to

paragraph (1) of sections 1902(c) and 1903(m) of this title and

section 1931(d)(1)(C) of this title shall certify that audit.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 106, Dec. 12, 1989, 103 Stat.

1871.)

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1956 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1956. Acquisition of defense sites

-STATUTE-

The provisions of title III of the Compact relating to future use

by the United States of defense sites in Palau do not restrict the

authority of the President of the United States to -

(1) request additional funding, subject to appropriation,

related to the use of privately owned land in Palau pursuant to

article II of title III of the Compact as may be appropriate in

light of actual land use requirements, independent appraisals of

such privately owned land accepted by both governments, and other

appropriate documentation of actual land use costs; and

(2) consent to an extension of the time set forth in a

subsidiary agreement to such article in which the Government of

Palau is required to make such land available to the United

States.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 107, Dec. 12, 1989, 103 Stat.

1872.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the United States and the Government of Palau,

which is contained in section 201 of Pub. L. 99-658, set out as a

note under section 1931 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1957 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1957. Federal programs coordination personnel

-STATUTE-

The Secretary of the Interior shall station at least one

professional staff person in each of the Offices of the United

States Representatives in the Republic of Palau, the Federated

States of Micronesia, and the Republic of the Marshall Islands to

provide Federal program coordination and technical assistance to

such governments as authorized under Public Laws 99-239 [48 U.S.C.

1901 et seq., 2001 et seq.] and 99-658 [48 U.S.C. 1931 et seq.]. In

meeting the purposes of this section the Secretary shall select

qualified persons following consultations with the Interagency

Group on Freely Associated State Affairs.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 108, Dec. 12, 1989, 103 Stat.

1872.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 99-239, referred to in text, is Pub. L. 99-239, Jan.

14, 1986, 99 Stat. 1770, as amended, known as the Compact of Free

Association Act of 1985, which is classified principally to

subchapter I of this chapter and chapter 19 (Sec. 2001 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1901 of this title and

Tables.

Public Law 99-658, referred to in text, is Pub. L. 99-658, Nov.

14, 1986, 100 Stat. 3672, as amended, which is classified generally

to part A of this subchapter. For complete classification of this

Act to the Code, see Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1958 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1958. Referendum costs

-STATUTE-

The Secretary of the Interior shall provide such sums as may be

necessary for a further referendum on approval of the Compact, if

one is required, or other appropriate costs associated with the

approval process in Palau.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 109, Dec. 12, 1989, 103 Stat.

1872.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in text, is the Compact of Free

Association between the United States and the Government of Palau,

which is contained in section 201 of Pub. L. 99-658, set out as a

note under section 1931 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1959 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1959. Agreements

-STATUTE-

(a) Effective date of certain agreements

An agreement between the United States and the Government of the

Republic of Palau consistent with the agreements approved by Public

Law 101-62 (101 (!1) Stat. 162) shall take effect without further

authorization thirty days after submission to Congress.

(b) Extensions

The provisions of article IX, paragraph 5(a) of the Agreement

referred to in section 462(e) of the Compact of Free Association as

approved by Public Law 99-239, and article IX, paragraph 5(a) of

the agreement referred to in section 462(f) of the Compact of Free

Association for Palau as approved by Public Law 99-658, are

extended, in accordance with the terms thereof, until October 1,

1998, unless earlier terminated or further extended by the laws of

the United States.

(c) Authorization

Funding to implement the provisions of this part, and for

assistance to the central health care facility and the prison in

Palau, and the offices of Public Auditor and Special Prosecutor as

proposed in the agreement entitled "Agreement Concerning Special

Programs related to the Entry into Force of the Compact of Free

Association Between the Government of the United States and the

Government of the Republic of Palau" signed on May 26, 1989, shall

be available pursuant to the authorization in section 105(c) of

Public Law 99-239 [48 U.S.C. 1905(c)] as referenced by section

102(b) of Public Law 99-658 [48 U.S.C. 1932(b)] or from funds

appropriated for technical assistance to the Secretary of the

Interior.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 110, Dec. 12, 1989, 103 Stat.

1872.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 101-62, referred to in subsec. (a), is Pub. L. 101-62,

July 26, 1989, 103 Stat. 162, which is set out as a note under

section 1901 of this title.

The Compact of Free Association as approved by Public Law 99-239,

referred to in subsec. (b), is the Compact of Free Association

between the Government of the United States and the Governments of

the Marshall Islands and the Federated States of Micronesia, which

is contained in section 201 of Pub. L. 99-239, set out as a note

under section 1901 of this title.

The Compact of Free Association for Palau as approved by Public

Law 99-658, referred to in subsec. (b), is the Compact of Free

Association between the United States and the Government of Palau,

which is contained in section 201 of Pub. L. 99-658, set out as a

note under section 1931 of this title.

Public Law 99-239, referred to in subsec. (b), is Pub. L. 99-239,

Jan. 14, 1986, 99 Stat. 1770, as amended, known as the Compact of

Free Association Act of 1985, which is classified principally to

subchapter I of this chapter and chapter 19 (Sec. 2001 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1901 of this title and

Tables.

Public Law 99-658, referred to in subsec. (b), is Pub. L. 99-658,

Nov. 14, 1986, 100 Stat. 3672, as amended, which is classified

generally to part A of this subchapter. For complete classification

of this Act to the Code, see Tables.

This part, referred to in subsec. (c), was in the original "this

title", meaning title I of Pub. L. 101-219, Dec. 12, 1989, 103

Stat. 1870, which enacted this part and amended section 1933 of

this title. For complete classification of this title to the Code,

see Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-FOOTNOTE-

(!1) So in original. Probably should be "103".

-End-

-CITE-

48 USC Sec. 1960 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1960. Modification of energy assistance funding

-STATUTE-

(a) Fulfillment of United States obligations

The President is authorized to negotiate and conclude an

agreement, including the obligation of United States funds, with

the Government of Palau which shall provide the following:

(1) The sum of $28,000,000, adjusted by section 215 of the

Compact at the time of its availability to Palau, shall be

provided to Palau pursuant to section 211(b) of the Compact and

upon entry into force of the Compact.

(2) Palau shall pay to the United States, on or before the 15th

anniversary of the effective date of the Compact, an amount equal

to the net economic cost to the United States of making available

the section 211(b) funds in the manner specified in this

subsection rather than as provided in section 211(b).

(3) Such economic cost shall reflect the time value of money

and be determined using the rate determined for an equivalent

loan by the Federal Financing Bank as of the date these funds are

advanced, and using an inflation rate consistent with the

determinations made under the provisions of section 215 of the

Compact.

(4) If the Government of Palau has not paid such net economic

costs to the United States by the 15th anniversary of the

effective date of the Compact, then the United States shall be

automatically paid such sums from the fund established under

section 211(f) of the Compact.

(5) The provision of section 211(b) funds, as appropriated by

Public Law 99-349 and pursuant to this subsection, shall be in

fulfillment of all United States obligations under such section

211(b) of the Compact and shall be subject to section 236 of the

Compact.

(b) Adjustment and payment

Subject to the provisions of subsection (a) of this section and

upon the request of the Government of Palau, the sum of $28 million

appropriated by Public Law 99-349 to fulfill the obligations of the

United States under section 211(b) of the Compact (approved in

Public Law 99-658), adjusted by section 215 of such Compact, shall

be provided to Palau upon entry into force of the Compact.

(c) Availability of appropriation account

Funding provided in Public Law 101-121 under the "Trust Territory

of the Pacific Islands" appropriation account shall remain

available until expended.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 111, Dec. 12, 1989, 103 Stat.

1873.)

-REFTEXT-

REFERENCES IN TEXT

The Compact, referred to in subsecs. (a) and (b), is the Compact

of Free Association between the United States and the Government of

Palau, which is contained in section 201 of Pub. L. 99-658, set out

as a note under section 1931 of this title.

For Oct. 1, 1994, as the date the Compact of Free Association

with Palau entered into full force and effect, referred to in

subsecs. (a)(1), (2), (4) and (b), see Proc. No. 6726, Sept. 27,

1994, 59 F.R. 49777, set out as a note under section 1931 of this

title.

Public Law 99-349, referred to in subsecs. (a)(5) and (b), is

Pub. L. 99-349, July 2, 1986, 100 Stat. 710, as amended. For

complete classification of this Act to the Code, see Tables.

Public Law 99-658, referred to in subsec. (b), is Pub. L. 99-658,

Nov. 14, 1986, 100 Stat. 3672, as amended, which is classified

generally to part A of this subchapter. For complete classification

of this Act to the Code, see Tables.

Public Law 101-121, referred to in subsec. (c), is Pub. L.

101-121, Oct. 23, 1989, 103 Stat. 701, as amended. Provisions

relating to the Trust Territory of the Pacific Islands appear at

103 Stat. 717. For complete classification of this Act to the Code,

see Tables.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1961 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1961. Submission of agreements

-STATUTE-

Any agreement concluded with the Government of Palau pursuant to

this joint resolution including the agreement entitled "Agreement

Concerning Special Programs related to the Entry into Force of the

Compact of Free Association Between the Government of the United

States and the Government of the Republic of Palau" signed on May

26, 1989, and any agreement which would amend, change, or terminate

any such agreement, or portion thereof, shall be submitted to the

Congress and may not take effect until after 30 days after the date

on which such agreement is so submitted. An amendment or agreement

substituting or in addition to the subsidiary agreement negotiated

under section 212(a) of the Compact or its annex shall take effect

only when approved by an Act of Congress.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 112, Dec. 12, 1989, 103 Stat.

1873.)

-REFTEXT-

REFERENCES IN TEXT

This joint resolution, referred to in text, is Pub. L. 101-219,

Dec. 12, 1989, 103 Stat. 1870, which enacted this part and sections

1846 and 1972 of this title, amended sections 1615 and 1933 of this

title and section 3791 of Title 42, The Public Health and Welfare,

and enacted provisions set out as a note under section 1905 of

Title 44, Public Printing and Documents. For complete

classification of this joint resolution to the Code, see Tables.

The Compact, referred to in text, is the Compact of Free

Association between the United States and the Government of Palau,

which is contained in section 201 of Pub. L. 99-658, set out as a

note under section 1931 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC Sec. 1962 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER II - PALAU

Part B - Implementation of Compact

-HEAD-

Sec. 1962. Transition funding

-STATUTE-

For the purposes of applying section 1905(c)(2) of this title to

Palau, the terms "fiscal year 1987", "fiscal year 1988", and

"fiscal year 1989" in section 104(c) of Public Law 99-658 shall be

deemed to be the first, second, and third fiscal years,

respectively, beginning after the effective date of the Compact.

-SOURCE-

(Pub. L. 101-219, title I, Sec. 113, Dec. 12, 1989, 103 Stat.

1873.)

-REFTEXT-

REFERENCES IN TEXT

Section 104(c) of Public Law 99-658, referred to in text, is

section 104(c) of Pub. L. 99-658, title I, Nov. 14, 1986, 100 Stat.

3676, which amended section 1905 of this title.

For Oct. 1, 1994, as the effective date of the Compact of Free

Association with Palau referred to in text, see Proc. No. 6726,

Sept. 27, 1994, 59 F.R. 49777, set out as a note under section 1931

of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-

-CITE-

48 USC SUBCHAPTER III - MISCELLANEOUS PROVISIONS 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-End-

-CITE-

48 USC Sec. 1971 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 1971. Transfer of surplus personal property owned by United

States

-STATUTE-

(a) Transfer to Northern Mariana Islands, Palau, Marshall Islands,

and Federated States of Micronesia

Notwithstanding any other provision of law, subject to valid

existing rights, and subject to subsection (b) of this section, all

right, title, and interest of the Government of the United States

in personal property situated in the Trust Territory of the Pacific

Islands and of the government of the Trust Territory of the Pacific

Islands in personal property wherever located shall be transferred,

without reimbursement, by a date not later than ninety days

following termination of the trusteeship agreement governing the

administration of the Trust Territory of the Pacific Islands, to

the government of the Northern Mariana Islands, Palau, the Marshall

Islands, or the Federated States of Micronesia according to a list

of distribution established by the High Commissioner of the Trust

Territory of the Pacific Islands in consultation with the recipient

government.

(b) Declaration that property is surplus

Personal property referred to in subsection (a) of this section

shall be transferred upon declaration by the High Commissioner of

the Trust Territory of the Pacific Islands that such property is

surplus to the needs of the government of the Trust Territory of

the Pacific Islands, which declaration shall be approved, if

applicable, by the head of the agency of the Government of the

United States having administrative responsibility for the

property.

(c) Property held in trust

If no government exists in Palau on December 24, 1980, that is

capable of receiving title to such property in its own name, the

government of the Trust Territory of the Pacific Islands shall hold

such property in trust for the prospective government of Palau

until such government is established.

-SOURCE-

(Pub. L. 96-597, title IV, Sec. 402, Dec. 24, 1980, 94 Stat. 3478;

Pub. L. 97-357, title II, Sec. 201, Oct. 19, 1982, 96 Stat. 1706.)

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-MISC1-

AMENDMENTS

1982 - Subsec. (a). Pub. L. 97-357, substituted "by a date not

later than ninety days following termination of the trusteeship

agreement governing the administration of the Trust Territory of

the Pacific Islands," for "by October 1, 1982,".

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of this title.

-End-

-CITE-

48 USC Sec. 1972 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 1972. Controlled substances in freely associated states

-STATUTE-

(a) In general

The President is authorized to negotiate agreements which provide

-

(1) that the United States shall carry out the provisions of

part C of the Controlled Substances Act (21 U.S.C. 821 et seq.)

as necessary to provide for the lawful distribution of controlled

substances in the freely associated states; and

(2) that a freely associated state which institutes and

maintains a voluntary system to report annual estimates of

narcotics needs to the International Narcotics Control Board, and

which imposes controls on imports of narcotic drugs consistent

with the Single Convention on Narcotic Drugs, 1961, shall be

eligible for exports of narcotic drugs from the United States in

the same manner as a country meeting the requirements of

subsection (a) of section 953 (!1) of title 21.

(b) Effective date

Agreements concluded pursuant to this section shall become

effective pursuant to section 1901(f)(5) of this title or section

1931(d)(5) of this title, as may be applicable.

-SOURCE-

(Pub. L. 101-219, title II, Sec. 201, Dec. 12, 1989, 103 Stat.

1874.)

-REFTEXT-

REFERENCES IN TEXT

The Controlled Substances Act, referred to in subsec. (a)(1), is

title II of Pub. L. 91-513, Oct. 27, 1970, 84 Stat. 1242, as

amended. Part C of the Act is classified generally to part C (Sec.

821 et seq.) of subchapter I of chapter 13 of Title 21, Food and

Drugs. For complete classification of this Act to the Code, see

Short Title note set out under section 801 of Title 21 and Tables.

Section 953 of title 21, referred to in subsec. (a)(2), was in

the original "section 1003 of the Controlled Substances Act", and

was translated as reading "section 1003 of the Controlled

Substances Import and Export Act", meaning section 1003 of title

III of Pub. L. 91-513, to reflect the probable intent of Congress.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

48 USC Sec. 1973 01/06/03

-EXPCITE-

TITLE 48 - TERRITORIES AND INSULAR POSSESSIONS

CHAPTER 18 - MICRONESIA, MARSHALL ISLANDS, AND PALAU

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 1973. Freely Associated State Air Carrier

-STATUTE-

(a) In furtherance of the objectives of the Compact of Free

Association Act of 1985 (Public Law 99-239) [48 U.S.C. 1901 et

seq., 2001 et seq.] and notwithstanding any other provision of law,

a Freely Associated State Air Carrier shall not be precluded from

providing transportation, between a place in the United States and

a place in a state in free association with the United States or

between two places in such a freely associated state, by air of

persons (and their personal effects) and property procured,

contracted for, or otherwise obtained by any executive department

or other agency or instrumentality of the United States for its own

account or in furtherance of the purposes or pursuant to the terms

of any contract, agreement, or other special arrangement made or

entered into under which payment is made by the United States or

payment is made from funds appropriated, owned, controlled,

granted, or conditionally granted, or utilized by or otherwise

established for the account of the United States, or shall be

furnished to or for the account of any foreign nation, or any

international agency, or other organization of whatever

nationality, without provisions for reimbursement.

(b) The term "Freely Associated State Air Carrier" shall apply

exclusively to a carrier referred to in Article IX(5)(b) of the

Federal Programs and Services Agreement concluded pursuant to

Article II of Title Two and Section 232 of the Compact of Free

Association.

-SOURCE-

(Pub. L. 102-247, title III, Sec. 303, Feb. 24, 1992, 106 Stat.

39.)

-REFTEXT-

REFERENCES IN TEXT

The Compact of Free Association Act of 1985, referred to in

subsec. (a), is Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as

amended, which is classified principally to subchapter I of this

chapter and chapter 19 (Sec. 2001 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 1901 of this title and Tables.

The Compact of Free Association, referred to in subsec. (b),

probably means the Compact of Free Association between the

Government of the United States and the Governments of the Marshall

Islands and the Federated States of Micronesia, which is contained

in section 201 of Pub. L. 99-239, set out as a note under section

1901 of this title.

-COD-

CODIFICATION

Section was formerly set out as a note under section 1681 of this

title.

-End-