48 U.S.C. § 1901 — Approval of Compact of Free Association

Page 213 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 Sec. 1982. Definitions. 1983. Approval of 2023 Agreement to Amend the U.S.-FSM Compact, 2023 Agreement to Amend the U.S.-RMI Compact, 2023 U.S.- Palau Compact Review Agreement, and Subsidiary Agreements. 1984. Agreements with Federated States of Micro- nesia. 1985. Agreements with and other provisions related to the Republic of the Marshall Islands. 1986. Agreements with and other provisions related to the Republic of Palau. 1987. Oversight provisions. 1988. United States policy regarding the Freely As- sociated States. 1989. Additional authorities. 1990. Compact appropriations. SUBCHAPTER I—MICRONESIA AND MARSHALL ISLANDS PART A—APPROVAL AND IMPLEMENTATION OF ORIGINAL COMPACT § 1901. Approval of Compact of Free Association (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 Fed- erated 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 sec- tion 411 of the Compact, to an effective date for and thereafter to implement such Compact, hav- ing taken into account any procedures with re- spect 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 Mar- shall Islands is hereby approved, and Congress hereby consents to the subsidiary agreements as set forth on pages 115 through 391 of House Doc- ument 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 Trustee- ship 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 Com- pact and certain agreements (1) Mutual agreement by the Government of the United States as provided in the Compact which results in amendment, change, or termi- nation 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 pro- vided for in the Compact, and having such re- sult, may be effected other than by Act of Con- gress. (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 termi- nation in the Agreement between the Govern- ment of the United States and the Govern- ment of the Federated States of Micronesia Regarding Friendship, Cooperation and Mu- tual 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 Mar- shall Islands Concerning Mutual Security Con- cluded 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 termi- nation 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 re- ferred 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 Com- pact and this joint resolution, each of the sub- sidiary agreements referred to in subsections (a) and (b) (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 concur- rence 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 imple- mentation, modification, suspension, or termi- nation of any such subsidiary agreement (or any provision thereof) as regards the mutual respon- sibilities 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 effec- tive date for the Compact, as authorized by this section, until after certifying to Congress that the agreements described in section 1902 of this Page 214 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 title and section 1903 of this title have been con- cluded. (2) Any agreement concluded with the Fed- erated States of Micronesia or the Marshall Is- lands 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 Con- gress. 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 ses- sion). (3) No agreement described in paragraph (2) shall take effect if a joint resolution of dis- approval 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 Representa- tives. Any such joint resolution shall be consid- ered in the Senate in accordance with the provi- sions of section 601(b) of Public Law 94–329. (4) The subsidiary agreements or portions thereof referred to in paragraph (2) are as fol- lows: (A) Articles III and IV of the agreement re- ferred 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 agree- ment referred to in section 462(h) of the Com- pact. (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 sec- tion 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. (Pub. L. 99–239, title I, § 101, Jan. 14, 1986, 99 Stat. 1773.) Editorial Notes 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 Is- lands and the Federated States of Micronesia, which is contained in section 201 of Pub. L. 99–239, as amended, 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, known as the Compact of Free Association Act of 1985, which is classified principally to this part and chapter 19 (§ 2001 et seq.) of this title. For complete classifica- tion 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 As- sociation with the Federated States of Micronesia, re- ferred to in subsecs. (a), (b), and (f), see Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out as a note under sec- tion 1801 of this title. Section 601(b) of Public Law 94–329, referred to in sub- sec. (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. CODIFICATION Section was formerly set out as a note under section 1681 of this title. Statutory Notes and Related Subsidiaries SHORT TITLE OF 2024 AMENDMENT Pub. L. 118–42, div. G, title II, § 201, Mar. 9, 2024, 138 Stat. 419, provided that: ‘‘This title [enacting sub- chapter IV of this chapter, amending sections 1921c and 1921d of this title, sections 1612, 1613, and 1641 of Title 8, Aliens and Nationality, sections 1411, 6331, and 7801 of Title 20, Education, sections 111, 1724, and 1730C of Title 38, Veterans’ Benefits, and sections 201, 9832, and 9835 of Title 42, The Public Health and Welfare, and amending provisions set out as notes under section 1921 of this title] may be cited as the ‘Compact of Free Association Amendments Act of 2024’.’’ SHORT TITLE OF 2012 AMENDMENT Pub. L. 112–149, § 1, July 26, 2012, 126 Stat. 1144, pro- vided that: ‘‘This Act [amending section 1921b of this title and section 297 of Title 28, Judiciary and Judicial Procedure, and amending provisions set out as notes under section 206 of Title 29, Labor] may be cited as the ‘Insular Areas Act of 2011’.’’ SHORT TITLE OF 2003 AMENDMENT Pub. L. 108–188, § 1(a), Dec. 17, 2003, 117 Stat. 2721, pro- vided that: ‘‘This joint resolution [enacting part B of this subchapter and provisions set out as notes under section 1921 of this title and amending provisions set out as a note under section 3101 of Title 5, Government Organization and Employees], together with the table of contents in subsection (b) of this section [117 Stat. 2721], may be cited as the ‘Compact of Free Association Amendments Act of 2003’.’’ SHORT TITLE Pub. L. 99–239, § 1(a), Jan. 14, 1986, 99 Stat. 1770, pro- vided that: ‘‘This joint resolution [enacting this part, chapter 19 (§ 2001 et seq.) of this title, and provisions set out below], together with the Table of Contents in sub- section (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, § 3(a), Nov. 13, 2000, 114 Stat. 2312, pro- vided that: ‘‘The freely associated states of the Repub- lic of the Marshall Islands, the Federated States of Mi- cronesia, 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 assist- ance, and services are provided to States and local gov- ernments of the United States and residents of such States, for which a freely associated State or its citi- zens were eligible on October 1, 1999. This eligibility shall continue through the period of negotiations re- Page 215 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ferred to in section 231 of the Compact of Free Associa- tion 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, § 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 be- tween the Government of the United States and the Governments of the Marshall Islands and the Federated States of Micronesia and the Compact of Free Associa- tion 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 MI- CRONESIA 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 ap- proved 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 As- sociation 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 As- sociation Pursuant to section 432 of the Compact’, signed on March 9, 1988.’’ RECITAL CLAUSES Pub. L. 99–239 which enacted this part and chapter 19 of this title contained several ‘‘Whereas’’ clauses read- ing as follows: ‘‘Whereas the United States, in accordance with the Trusteeship Agreement, the Charter of the United Na- tions and the objectives of the international trustee- ship system, has promoted the development of the peo- ples of the Trust Territory toward self-government or independence as appropriate to the particular cir- cumstances 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 de- sires of the peoples of the Federated States of Micro- nesia and the Marshall Islands expressed through their freely-elected representatives and by the official pro- nouncements and enactments of their lawfully con- stituted governments, and in consideration of its own obligations under the Trusteeship Agreement to pro- mote self-determination, entered into political status negotiations with representatives of the peoples of the Federated States of Micronesia, and the Marshall Is- lands; 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 ap- proved 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 proc- esses with respect to the Compact as contemplated in Compact Section 411’’. COMPACT OF FREE ASSOCIATION Pub. L. 99–239, title II, § 201, Jan. 14, 1986, 99 Stat. 1800, as amended by Pub. L. 108–108, title I, Nov. 10, 2003, 117 Stat. 1261, provided that: ‘‘The Compact of Free Asso- ciation 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 rela- tionships 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 Terri- tory of the Pacific Islands in creating close and mutu- ally beneficial relationships through two free and vol- untary 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 Terri- tory 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 pro- gressively developed their institutions of self-govern- ment, 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-gov- ernment relationships each of which is in accordance with a new political status based on the freely-ex- pressed wishes of peoples of the Trust Territory of the Pacific Islands and appropriate to their particular cir- cumstances; 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 Constitu- tions 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 relation- ships of free association which provide a full measure of self-government for the peoples of the Marshall Is- lands and the Federated States of Micronesia; and ‘‘FURTHER AGREE that the relationships of free as- sociation derive from and are as set forth in this Com- pact; and that, during such relationships of free asso- ciation, 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. Page 216 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ‘‘TITLE ONE ‘‘GOVERNMENTAL RELATIONS ‘‘Article I ‘‘Self-Government ‘‘Section 111 ‘‘The peoples of the Marshall Islands and the Fed- erated States of Micronesia, acting through the Gov- ernments established under their respective Constitu- tions, 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 Mi- cronesia 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, sea- bed or subsoil to the full extent recognized under international law; ‘‘(2) the conduct of their commercial, diplomatic, consular, economic, trade, banking, postal, civil avia- tion, communications, and cultural relations, includ- ing negotiations for the receipt of developmental loans and grants and the conclusion of arrangements with other governments and international and inter- governmental 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 Gov- ernments of the Marshall Islands and the Federated States of Micronesia confirm that they shall act in ac- cordance 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 Is- lands and the Federated States of Micronesia for mem- bership or other participation in regional or inter- national organizations as may be mutually agreed. The Government of the United States agrees to accept for training and instruction at the Foreign Service Insti- tute [now George P. Shultz National Foreign Affairs Training Center], established under 22 U.S.C. 4021, citi- zens of the Marshall Islands and the Federated States of Micronesia. The qualifications of candidates for such training and instruction and all other terms and condi- tions of participation by citizens of the Marshall Is- lands and the Federated States of Micronesia in For- eign 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 responsi- bility 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 Govern- ment 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 Govern- ment of the United States, in the conduct of its foreign affairs, shall consult with the Government of the Mar- shall Islands or the Federated States of Micronesia on matters which the Government of the United States re- gards 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 Is- lands 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 Is- lands or the Federated States of Micronesia undertaken with the assistance or through the agency of the Gov- ernment 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 Fed- erated States of Micronesia in the area of foreign af- fairs, 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 sub- ject to the consent of the receiving state, the Govern- ment of the United States shall extend consular assist- ance on the same basis as for citizens of the United States to citizens of the Marshall Islands and the Fed- erated States of Micronesia for travel outside the Mar- shall 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 agree- ment 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 fre- quency assignments to radio communications sta- tions 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 sta- tions; and ‘‘(2) the United States Federal Communications Commission has jurisdiction, pursuant to the Com- Page 217 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 munications 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 ter- minal stations where such stations are owned or op- erated by United States common carriers and are lo- cated 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 re- ferred 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 Gov- ernment of the United States to operate telecommuni- cations services in the Marshall Islands and the Fed- erated 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 ef- fect 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 resi- dence as a nonimmigrant in the United States and its territories and possessions without regard to para- graphs (14), (20), and (26) of section 212(a) of the Immi- gration and Nationality Act, 8 U.S.C. 1182(a) (14), (20), and (26): ‘‘(1) a person who, on the day preceding the effec- tive 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 Micro- nesia at birth, on or after the effective date of the re- spective 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 certifi- cate 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 Mar- shall 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 permis- sion 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 nondiscrim- inatory 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 natu- ralization 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 Mi- cronesia 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 Mi- cronesia, 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 domi- cile is sought. ‘‘(b) With respect to the subject matter of this Sec- tion, 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 coun- tries; 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 na- tionality 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 ef- fective 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 Gov- ernment of the Marshall Islands or the Federated States of Micronesia may establish and maintain rep- resentative 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 busi- ness. The Governments may establish and maintain ad- ditional offices on terms and in locations as may be mutually agreed. Page 218 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ‘‘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 ex- pressly waived. Official communications in transit shall be inviolable and accorded the freedom and pro- tections accorded by recognized principles of inter- national law to official communications of a diplo- matic mission. ‘‘(b) Persons designated by the sending Government may serve in the capacity of its resident representa- tives with the consent of the receiving Government. Such designated persons shall be immune from civil and criminal process relating to words spoken or writ- ten and all acts performed by them in their official ca- pacity and falling within their functions as such rep- resentatives, except insofar as such immunity may be expressly waived by the sending Government. While serving in a resident representative capacity, such des- ignated persons shall not be liable to arrest or deten- tion pending trial, except in the case of a grave crime and pursuant to a decision by a competent judicial au- thority, 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 Diplo- matic Relations. ‘‘(e) The privileges, exemptions and immunities ac- corded under this Section are not for the personal ben- efit 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 Govern- ment and the Government of the United States, is des- ignated 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 po- sitions 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 Mi- cronesia. In order to carry out this policy, the Govern- ment of the United States and the Governments of the Marshall Islands and the Federated States of Micro- nesia agree to the following mutual and reciprocal un- dertakings. ‘‘(a) The Government of the United States: ‘‘(1) shall continue to apply the environmental con- trols 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 agree- ments as if the Marshall Islands and the Federated States of Micronesia were the United States; ‘‘(3) shall comply also, in the conduct of any activ- ity 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 Im- pact 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 Mar- shall 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 devel- opment 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 Micro- nesia 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 re- ciprocal obligation to the undertakings of the Govern- ment of the United States under this Article, the Gov- ernments of the Marshall Islands and the Federated States of Micronesia, taking into account their par- ticular environments, shall develop standards for envi- ronmental protection substantively similar to those re- quired of the Government of the United States by Sec- tion 161(a)(3) prior to their conducting activities in the Marshall Islands and the Federated States of Micro- nesia, respectively, substantively equivalent to activi- ties conducted there by the Government of the United States and, as a further reciprocal obligation, shall en- force those standards. ‘‘(c) Section 161(a), including any standard or proce- dure applicable thereunder, and Section 161(b) may be modified or superseded in whole or in part by agree- ment of the Government of the United States and the Page 219 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 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 Govern- ment 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 Sec- tion 161(a)(3) shall apply to the activities of the Gov- ernment 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 Fed- erated States of Micronesia may bring an action for ju- dicial 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 en- forcement 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 juris- diction of the court; decisions of the District Court shall be reviewable in the United States Court of Ap- peals 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 activi- ties of the Government of the United States and its of- ficers and employees governed by Section 161. ‘‘(f) In actions pursuant to this Section, the Govern- ments 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 re- quirements of this Article, the Governments of the Marshall Islands and the Federated States of Micro- nesia 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 ex- ercise of the authority and responsibility of the Gov- ernment 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 gath- ering data necessary to discharge its obligations under this Article, except to the extent such access would un- reasonably 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 infor- mation 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 re- spect 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 Fed- erated 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 ju- dicial review provisions of the Administrative Proce- dure Act, 5 U.S.C. 701–706, except that only the Govern- ment of the Marshall Islands or the Federated States of Micronesia may seek judicial review under the Admin- istrative Procedure Act or judicial enforcement under the Freedom of Information Act when such judicial re- view 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 nec- essary 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 Mi- cronesia pursuant to this Compact and its related agreements and by those Governments in the United States pursuant to this Compact and its related agree- ments. ‘‘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 Page 220 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 from the jurisdiction of the courts of the Marshall Is- lands and the Federated States of Micronesia. ‘‘(b) The Government of the United States accepts re- sponsibility for and shall pay: ‘‘(1) any unpaid money judgment rendered by the High Court of the Trust Territory of the Pacific Is- lands 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 aris- ing as a result of acts or omissions of the Govern- ment of the Trust Territory of the Pacific Islands or the Government of the United States prior to the ef- fective date of this Compact; ‘‘(2) any claim settled by the claimant and the Gov- ernment 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 omis- sions 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 Gov- ernment of the United States prior to the effective date of this Compact shall be adjudicated in the same man- ner as a claim adjudicated according to Section 174(d). In any claim against the Government of the Trust Ter- ritory of the Pacific Islands, the Government of the United States shall stand in the place of the Govern- ment 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 Govern- ment of the United States, may be presented for certifi- cation 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 re- viewable as provided by the laws of the United States. The United States Court of Appeals for the Federal Cir- cuit shall certify such judgment, and order payment thereof, unless it finds, after a hearing, that such judg- ment 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 Mar- shall 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 prop- erty 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 fugi- tives 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 judg- ments 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 Micro- nesia (or Palau) for loss or damage to property and per- son of the citizens of the Marshall Islands, or the Fed- erated States of Micronesia, resulting from the nuclear testing program which the Government of the United States conducted in the Northern Marshall Islands be- tween 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 ade- quate 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 radi- ation related medical surveillance and treatment pro- grams and radiological monitoring activities and for such additional programs and activities as may be mu- tually agreed, and for the assumption by the Govern- ment of the Marshall Islands of responsibility for en- forcement of limitations on the utilization of affected areas developed in cooperation with the Government of the United States and for the assistance by the Govern- ment of the United States in the exercise of such re- sponsibility 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 pro- vide 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 serv- ices and programs set forth in this separate agreement, the language of which is incorporated into this Com- pact. ‘‘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 pro- visions 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 set- tled under Section 178(a) shall be disposed of exclu- sively in accordance with Article II of Title Four. Arbi- tration 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 re- ferred 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 sepa- rate agreements; and ‘‘(2) arbitration, referred to in Section 178(b), in a timely manner, at a site convenient to the claimant, Page 221 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 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 Mar- shall 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 relation- ship 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 annu- ally for five years commencing on the fifth anniver- sary 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 pro- vision 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 com- mencing on the effective date of this Compact, $51 million annually for five years commencing on the fifth anniversary of the effective date of this Com- pact, and $40 million annually for five years com- mencing on the tenth anniversary of the effective date of this Compact. Over this fifteen year period, the Government of the Federated States of Micro- nesia shall dedicate an average of no less than 40 per- cent of these amounts annually to the capital ac- count subject to provision for revision of this per- centage incorporated into the plan referred to in Sec- tion 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 cer- tified 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 Fed- erated States of Micronesia shall be in accordance with official overall economic development plans provided by those Governments and concurred in by the Govern- ment 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) de- pends upon the availability of adequate internal rev- enue as well as economic assistance from sources out- side 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 re- port annually to the President of the United States and to the Congress of the United States on the implemen- tation of the plans and on their use of the funds speci- fied 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 at- tendant 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 pro- vide on a grant basis $1.9 million annually to the Gov- ernment of the Marshall Islands in conjunction with Section 321(a). The Government of the Marshall Is- lands, 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 Mar- shall Islands. ‘‘(b) The Government of the United States shall pro- vide on a grant basis to the Government of the Fed- erated States of Micronesia the sum of $160,000 in con- junction with Section 321(a). This sum shall be made available concurrently with the grant assistance pro- vided pursuant to this Article during the first year after the effective date of this Compact. The Govern- ment 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 in- creased self-sufficiency in energy production, the Gov- ernment 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 Com- pact 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 oper- ations and maintenance of communications systems, the Government of the United States shall provide on a grant basis for fifteen years commencing on the effec- tive 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 communica- tions 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 pro- vided 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 pro- vide on a current account basis an annual grant of $5.369 million for fifteen years commencing on the ef- fective date of this Compact for the purposes set forth below: Page 222 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ‘‘(1) $890,000 annually for the surveillance and en- forcement by the Governments of the Marshall Is- lands 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 treat- ment 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 accred- ited, 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 re- ferred to in Section 211(b). ‘‘(b) The Government of the United States shall pro- vide 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 dis- tribution agreed upon by the Governments of the Mar- shall 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 Gov- ernment 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 Ter- ritory 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 deter- mined 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 ex- tent 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 effec- tive date of this Compact, the services and related pro- grams: ‘‘(1) of the United States Weather Service; ‘‘(2) of the United States Federal Emergency Man- agement Agency; ‘‘(3) provided pursuant to the Postal Reorganization Act, 39 U.S.C. 101 et seq.; ‘‘(4) of the United States Federal Aviation Adminis- tration; and ‘‘(5) of the United States Civil Aeronautics Board or its successor agencies which has the authority to im- plement 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, recog- nizing the special needs of the Marshall Islands and the Federated States of Micronesia particularly in the fields of education and health care, shall make avail- able, 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 agree- ment 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 develop- ment projects, studies and conservation measures as are applicable to the Trust Territory of the Pacific Is- lands 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 pur- poses 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 Fed- erated States of Micronesia. ‘‘Section 222 ‘‘The Government of the United States and the Gov- ernment of the Marshall Islands or the Federated States of Micronesia shall consult regularly or upon re- quest regarding: ‘‘(a) The economic development of the Marshall Is- lands 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 mu- tual 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 Fed- erated States of Micronesia who are receiving post-sec- ondary 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 com- plete 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 Gov- ernment of the Marshall Islands or the Federated States of Micronesia may agree from time to time to the extension of additional United States grant assist- ance, services and programs as provided by the Laws of the United States, to the Marshall Islands or the Fed- erated 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 serv- ices 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 Mi- cronesia 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 recipi- ents 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 Page 223 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 the United States shall make available United States military Civic Action Teams for use in the Federated States of Micronesia under terms and conditions speci- fied in a separate agreement which shall come into ef- fect 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 com- mence negotiations regarding those provisions of this Compact which expire on the fifteenth anniversary of its effective date. The period for the enactment of leg- islation approving the agreements resulting from such negotiations shall extend through the earlier of the date of the enactment of such legislation or September 30, 2004, during which time the provisions of this Com- pact, including Title Three, shall remain in full force and effect. [As amended Pub. L. 108–108, title I, Nov. 10, 2003, 117 Stat. 1261.] ‘‘Section 232 ‘‘The specific nature, extent and contractual arrange- ments of the services and programs provided for in Sec- tion 221 as well as the legal status of agencies of the Government of the United States, their civilian em- ployees and contractors, and the dependents of such personnel while present in the Marshall Islands or the Federated States of Micronesia, and other arrange- ments in connection with a service or program fur- nished by the Government of the United States, are set forth in separate agreements which shall come into ef- fect simultaneously with this Compact. ‘‘Section 233 ‘‘The Government of the United States, in consulta- tion 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 Com- pact 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 Govern- ment of the Trust Territory of the Pacific Islands on or before the day preceding the effective date of this Com- pact 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 sepa- rate agreement which shall come into effect simulta- neously with this Compact. The provisions of this Sec- tion 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 Is- lands or the Federated States of Micronesia, shall ap- point 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 pur- poses 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 Pa- cific 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 Com- pact by the Government of the United States shall con- stitute 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 juris- diction in cases arising under this Section, notwith- standing 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 prod- ucts 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 Is- lands or the Federated States of Micronesia. ‘‘Section 243 ‘‘All products of the Marshall Islands or the Fed- erated 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 cus- toms duties or charges of a similar nature and with re- spect 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 cir- culating legal tender of the Marshall Islands and the Federated States of Micronesia. Should the Govern- ment 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 Fed- erated 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 man- ner as such Government deems appropriate. The deter- mination 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. Page 224 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ‘‘Section 253 ‘‘A citizen of the Marshall Islands or the Federated States of Micronesia, domiciled therein, shall be ex- empt from: ‘‘(a) Income taxes imposed by the Government of the United States upon fixed or determinable annual in- come. ‘‘(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 au- thority to impose tax upon income derived by a resi- dent 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 re- spective jurisdictions. If the Government of the Mar- shall Islands or the Federated States of Micronesia ex- ercises 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 Is- lands or the Federated States of Micronesia shall be re- lieved 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 Fed- erated 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 pe- riod of 183 or more days during any taxable year; pro- vided, that as between the Government of the Marshall Islands and the Federated States of Micronesia, the au- thority to tax an individual resident of the Marshall Is- lands 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 Govern- ment in whose jurisdiction such individual was phys- ically 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 tax- ation 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 au- thority 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 Fed- erated States of Micronesia shall negotiate an agree- ment which shall provide benefits substantially equiva- lent 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 peo- ples 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 Micro- nesia by military personnel or for the military pur- poses of any third country; and ‘‘(3) the option to establish and use military areas and facilities in the Marshall Islands and the Fed- erated 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 Na- tions in the exercise of this authority and responsi- bility. ‘‘Section 312 ‘‘Subject to the terms of any agreements negotiated in accordance with Sections 321 and 323, the Govern- ment 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 ac- tions which the Government of the United States deter- mines, after appropriate consultation with those Gov- ernments, to be incompatible with its authority and re- sponsibility for security and defense matters in or re- lating 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 deter- mination by the Government of the United States re- ferred 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 radio- active, 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 ac- tual or impending armed attack on the United States, the Marshall Islands or the Federated States of Micro- nesia, 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 radio- active materials nor any toxic chemical materials in- tended for weapons use. ‘‘(c) Radioactive, toxic chemical, or biological mate- rials not intended for weapons use shall not be affected by Section 314(b). Page 225 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ‘‘(d) No material or substance referred to in this Sec- tion shall be stored in the Marshall Islands or the Fed- erated 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 obli- gations 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 juris- diction 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 coun- tries 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, ap- proval 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 trans- ferred 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 Fed- erated States of Micronesia are set forth in separate agreements which shall come into effect simulta- neously with this Compact. ‘‘(b) If, in the exercise of its authority and responsi- bility under this Title, the Government of the United States requires the use of areas within the Marshall Is- lands 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 Govern- ment 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 Sec- tion 321(b), the Government of the United States shall follow the policy of requesting the minimum area nec- essary 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 pub- lic 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 Mi- cronesia at least to the extent necessary for the exer- cise 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, ex- clusively, shall assume and enjoy, as to the Marshall Islands and the Federated States of Micronesia, all ob- ligations, responsibilities, rights and benefits of: ‘‘(a) Any defense treaty or other international secu- rity 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 secu- rity 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 Gov- ernment of the United States shall be preceded by ap- propriate 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 es- tablish habitual residence in the United States, its ter- ritories or possessions. ‘‘Section 342 ‘‘The Government of the United States shall have en- rolled, 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 re- spective Governments, in each of: ‘‘(a) The United States Coast Guard Academy pursu- ant to 14 U.S.C. 195 [now 14 U.S.C. 1923]. ‘‘(b) The United States Merchant Marine Academy pursuant to [former] 46 U.S.C. [App.] 1295b(b)(6) [see 46 U.S.C. 51304], provided that the provisions of 46 U.S.C. [App.] 1295b(b)(6)(C) [now 46 U.S.C. 51304(b)(2)] shall not apply to the enrollment of students pursuant to Sec- tion 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 Commit- tees empowered to consider disputes under the imple- mentation 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 addi- tional 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 Page 226 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 place to be designated, after appropriate consultation, by the Government of the United States. A Joint Com- mittee 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 resolu- tion, 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 con- cerns with the United States Secretary of Defense per- sonally 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 re- sponsibility 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 par- ties to a formal declaration of war, without their re- spective consent. ‘‘(b) Absent such consent, this Compact is without prejudice, on the ground of belligerence or the exist- ence 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 Mi- cronesia, 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 mutu- ally 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 Govern- ment of the United States and the Governments of the Marshall Islands and the Federated States of Micro- nesia, and in view of the existence of separate agree- ments with each of them pursuant to Sections 321 and 323, that, even if this Title should terminate, any at- tack 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 Micro- nesia 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 Is- lands or the Federated States of Micronesia and subse- quent to completion of the following: ‘‘(a) Approval by the Government of the Marshall Is- lands or the Federated States of Micronesia in accord- ance 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 Mar- shall 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 proc- esses. The Marshall Islands and the Federated States of Micronesia shall each be considered a voting jurisdic- tion, 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 Govern- ments 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 plebi- scite shall be called jointly by the Administering Au- thority 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 Mar- shall 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 Fed- erated 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 pro- vided 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 mutu- ally agree that the decision shall be advisory. Arbitra- tion shall occur according to the following terms: Page 227 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 ‘‘(a) An Arbitration Board shall consist of a Chair- man and two other members, each of whom shall be a citizen of a party to the dispute. Each of the two Gov- ernments 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 require- ments 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 dis- pute. 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 cho- sen 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 Inter- national Court of Justice. ‘‘(e) The Arbitration Board shall adopt such rules for its proceedings as it may deem appropriate and nec- essary, but such rules shall not contravene the provi- sions of this Compact. Unless the parties provide other- wise 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 dis- pute. ‘‘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 Govern- ment 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 mu- tual agreement. The effect of any amendment made pursuant to this Section shall be restricted to the rela- tionship between the Governments agreeing to such amendment, but the other Governments signatory to this Compact shall be notified promptly by the Govern- ment 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 Fed- erated 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 Govern- ment 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 ex- tended. ‘‘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 Mi- cronesia 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 ad- ministered by such Government in accordance with its constitutional and legislative processes, but the Gov- ernment of the United States may send its own observ- ers 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 cer- tification 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 fol- lowing 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 re- main in full force and effect until the fifteenth anniver- sary 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 Mi- cronesia 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 oc- curs 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 de- termined by the Government of the United States. Such assistance shall continue until the fifteenth anni- versary 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 re- main in full force and effect until the fifteenth anniver- sary 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 Mi- cronesia 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 as- sistance which the Government of the United States shall provide to the Government so terminating for the period ending on the fifteenth anniversary of the effec- Page 228 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 tive 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 Com- pact: ‘‘(a) The Government of the United States reaffirms its continuing interest in promoting the long-term eco- nomic advancement and self-sufficiency of the peoples of the Marshall Islands and the Federated States of Mi- cronesia. ‘‘(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 dura- tion 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 fol- lowing meanings: ‘‘(a) ‘Trust Territory of the Pacific Islands’ means the area established in the Trusteeship Agreement con- sisting 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 Ter- ritory 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 in- clude 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 Constitu- tion 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 telecommuni- cation by means of radio waves. ‘‘(2) ‘Station’ means one or more transmitters or receivers or a combination of transmitters and re- ceivers, including the accessory equipment, necessary at one location for carrying on a radio communica- tion service; each station shall be classified by the service in which it operates permanently or tempo- rarily. ‘‘(3) ‘Broadcasting Service’ means a radio commu- nication service in which the transmissions are in- tended 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 ‘Fre- quency Assignment’ means in the 1976 Edition of the Radio Regulations of the International Telecommuni- cations Union (ISBN 92–61–0081–5). ‘‘(g) ‘Habitual Residence’ means a place of general abode or a principal, actual dwelling place of a con- tinuing 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 Micro- nesia 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 Mi- cronesia during eighty-five percent of the period of residency required by Section 141(a)(3); and ‘‘(2) ‘Certificate of Actual Residence’ means a cer- tificate issued to a naturalized citizen by the Govern- ment which has naturalized him stating that the cit- izen has complied with the actual residence require- ment 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 Gov- ernment 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 in- frastructure; 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 activi- ties necessary to achieve a specified set of economic goals and objectives during the period of free associa- tion, consistent with the economic assistance author- ity 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 Fed- erated States of Micronesia. Project identification should include initial cost estimates, with project pur- poses related to specific development goals and objec- tives. ‘‘(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 Gov- ernment of the Marshall Islands or the Federated States of Micronesia, as appropriate, shall conclude re- lated agreements which shall come into effect and shall survive in accordance with their terms, as follows: ‘‘(a) Agreement Regarding the Provision of Tele- communication Services by the Government of the United States to the Marshall Islands and the Fed- Page 229 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 erated States of Micronesia Concluded Pursuant to Section 131 of the Compact of Free Association; ‘‘(b) Agreement Regarding the Operation of Tele- communication Services of the Government of the United States in the Marshall Islands and the Fed- erated 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 Con- cluded 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 Is- lands for the Implementation of Section 177 of the Compact of Free Association; ‘‘(e) Federal Programs and Services Agreement Con- cluded 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 Oper- ating 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 Oper- ating Rights of the Government of the United States in the Federated States of Micronesia Concluded Pursu- ant 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, Coopera- tion and Mutual Security Concluded Pursuant to Sec- tions 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 Is- lands Regarding Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free Associa- tion. ‘‘Section 463 ‘‘(a) Except as set forth in Section 463(b), any ref- erence 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 Sec- tions 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 In- formation 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 author- ity 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 agree- ments. The Governments pledge that they are so com- mitted. ‘‘(b) Each of the Governments of the United States, the Marshall Islands and the Federated States of Mi- cronesia shall take all necessary steps, of a general or particular character, to ensure, not later than the ef- fective 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 oth- erwise, by the Government of the United States, the Government of the Marshall Islands, and the Govern- ment of the Federated States of Micronesia. Each Gov- ernment accepting this Compact shall possess an origi- nal English language version. ‘‘IN WITNESS WHEREOF, the undersigned, duly au- thorized, 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’’. [Pub. L. 108–108, title I, Nov. 10, 2003, 117 Stat. 1261, which directed amendment of section 231 of Pub. L. 99–239, was executed by amending section 231 of the Compact of Free Association, set out above, to reflect the probable intent of Congress. Pub. L. 99–239, which sets out the Compact, does not contain a section 231.] [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.] Page 230 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 [For transfer of all functions, personnel, assets, com- ponents, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emer- gency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security.] [For transfer of functions, personnel, assets, and li- abilities of the Federal Emergency Management Agen- cy, including the functions of the Director of the Fed- eral Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treat- ment of related references, see former section 313(1) and sections 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization 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 relat- ing 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 Secu- rity, and the Department of Homeland Security Reor- ganization 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 require- ments under section 211(c) of the Compact of Free Asso- ciation, 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 Mar- shall 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 im- ported 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 cal- endar year, as reported by the National Marine Fish- eries 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 para- graph (1) shall not apply to— ‘‘ ‘(A) watches, clocks, and timing apparatus pro- vided 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 sub- ject 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 ap- praised 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 sec- tion 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 Mi- cronesia or the Marshall Islands which are not exempt from duty under paragraphs (1), (2), (3), and (4) of sec- tion 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 im- ported into the Federated States of Micronesia or the Marshall Islands shall receive treatment no less favor- able 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 IS- LANDS 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 Fed- erated 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 RE- DUCED.—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 Com- pact 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 Page 231 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1901 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 reduc- tion 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 substan- tially equivalent benefits referred to in this sub- section.’. ‘‘SEC. 405. THE MARSHALL ISLANDS AND THE FED- ERATED 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 Is- lands and the Federated States of Micronesia. ‘‘SEC. 406. EFFECTIVE DATE. ‘‘This title shall apply to income earned, and trans- actions 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 fore- going provisions of this title), and ‘‘(2) shall report the results of such study before Oc- tober 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, § 11831(b), Nov. 5, 1990, 104 Stat. 1388–559.] ‘‘SEC. 408. COORDINATION WITH OTHER PROVI- SIONS. ‘‘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.’’ EX. ORD. NO. 12569. MANAGEMENT OF COMPACT OF FREE ASSOCIATION WITH REPUBLIC OF THE MARSHALL IS- LANDS, FEDERATED STATES OF MICRONESIA, AND RE- PUBLIC 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 Re- public of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau (the ‘‘Freely As- sociated 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 de- sirable. 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 rep- resentative offices in the Freely Associated States and supervision of the United States representatives and their staff. The Secretary also shall provide, in accord- ance 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 ac- tions 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 agree- ments and in the laws of the United States as they re- late to the conduct of government-to-government rela- tions 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 nec- essary to carry out the provisions of this Order in rela- tion 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 accord- ance 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 pursu- ant 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 de- velopment 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 Af- fairs and the Office of Freely Associated State Affairs. (a) There is established an Interagency Group on Freely Associated State Affairs for the purpose of pro- viding guidance and oversight with respect to the es- tablishment and implementation of policy concerning the Compact and United States relations with the Free- ly Associated States. (b) The Interagency Group shall consist of the Sec- retary 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, Com- merce, 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 rec- ommendations as it shall deem appropriate to the President, through the Assistant to the President for National Security Affairs, concerning United States re- lations with the Freely Associated States. The Inter- agency Group also shall provide such guidance as it deems appropriate to departments and agencies dele- gated authority by this Order concerning administra- tion 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 pursu- ant to section 105(g) of the Act [48 U.S.C. 1905(g)] are appropriate, it shall make appropriate recommenda- tions 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 pro- vide appropriate support to the Interagency Group, bearing in mind the continued special relationship be- tween 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 Page 232 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1902 their respective authorities and responsibilities as de- scribed in this Order to the Secretary of State or his or her designee. The Secretary of State or his or her des- ignee shall serve as Executive Secretary of the Inter- agency Group. (3) Personnel additional to that provided by the Sec- retary 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 nec- essary to conduct United States relations with the Freely Associated States. SEC. 4. United States Representatives to the Freely Asso- ciated States. The United States Representative as- signed 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 ca- pacity in that Freely Associated State, and shall super- vise 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. Noth- ing in this Order shall be construed to impair the au- thority 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 develop- ment plans prepared by the Government of the Fed- erated 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 im- pact 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 fol- lowing authorities are delegated to the Secretary of State: (a) Reporting to the Congress on crimes in the Fed- erated 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 sec- tion 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 re- garding 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 super- seded and rendered inapplicable, except that the au- thority 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 pur- suant 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 en- tirety of Executive Order No. 11021 shall be superseded. (b) Nothing in this Order shall be construed as modi- fying 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 con- cerning the Compact. SEC. 9. Effective Date. This Order shall become effec- tive with respect to a Freely Associated State simulta- neously with the entry into force of the Compact for that State. § 1902. Agreements with Federated States of Mi- cronesia (a) Law enforcement assistance (1) Agreement The President of the United States shall ne- gotiate with the Government of the Federated States of Micronesia an agreement pursuant to section 175 of the Compact which is in addi- tion to the Agreement pursuant to such sec- tion 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 mu- tually agreed, in the prevention and inves- tigation of crimes and the enforcement of the laws of the United States and the Fed- erated States of Micronesia specified in sub- paragraph (C) of this paragraph. The United States and the Federated States of Micro- nesia will authorize mutual assistance with respect to investigations, inquiries, audits and related activities by the law enforce- ment agencies of both Governments in the United States and the Federated States of Micronesia. In conducting activities author- ized 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 sub- stances 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 At- torney 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 Fed- erated States of Micronesia, or for the dis- tribution of any such substance to or from the Federated States of Micronesia or to or from the United States or any of its terri- tories or commonwealths.