48 U.S.C. § 1901
Approval of Compact of Free Association
“The relief from liability referred to in the second sentence of section 254(a) of the Compact means only—
“Section 255 of the Compact shall be construed and applied as if it read as follows: “ ‘Section 255 “ ‘(a) Extension of Section 936 to the Marshall Islands and the Federated States of Micronesia .—For purposes of section 936 of the Internal Revenue Code of 1986, the Marshall Islands and the Federated States of Micronesia shall be treated as if they were possessions of the United States. “ ‘(b) Exchange of Information .—Subsection (a) shall not apply to the Marshall Islands and the Federated States of Micronesia (as the case may be) for any period after December 31, 1986 , during which there is not in effect between the appropriate government and the United States an exchange of information agreement of the kind described in section 274(h)(6)(C) (other than clause (ii) thereof) of the Internal Revenue Code of 1986. “ ‘(c) Procedure If Section 936 Incentives Reduced .—If the tax incentives extended to the Marshall Islands and the Federated States of Micronesia under subsection (a) are, at any time during which the Compact is in effect, reduced, the Secretary of the Treasury shall negotiate an agreement with the Marshall Islands and the Federated States of Micronesia under which, when such agreement is approved by law, they will be provided with benefits substantially equivalent to such reduction in benefits. If, within the 1 year period after the date of the enactment of the Act making the reduction in benefits, an agreement negotiated under the preceding sentence is not approved by law, the matter shall be submitted to the Arbitration Board established pursuant to section 424 of the Compact. For purposes of Article V of Title Two of the Compact, the Secretary of the Treasury or his delegate shall be the member of such Board representing the Government of the United States. Any decision of such Board in the matter when approved by law shall be binding on the United States, except that such decision rendered is binding only as to whether the United States has provided the substantially equivalent benefits referred to in this subsection.’.
(a) Federated States of Micronesia
The Compact of Free Association set forth in title II of this joint resolution between the United States and the Government of the Federated States of Micronesia is hereby approved, and Congress hereby consents to the subsidiary agreements as set forth on pages 115 through 391 of House Document 98–192 of March 30, 1984 , as they relate to such Government. Subject to the provisions of this joint resolution, the President is authorized to agree, in accordance with section 411 of the Compact, to an effective date for and thereafter to implement such Compact, having taken into account any procedures with respect to the United Nations for termination of the Trusteeship Agreement.
(b) Marshall Islands
The Compact of Free Association set forth in title II of this joint resolution between the United States and the Government of the Marshall Islands is hereby approved, and Congress hereby consents to the subsidiary agreements as set forth on pages 115 through 391 of House Document 98–192 of March 30, 1984 , as they relate to such Government. Subject to the provisions of this joint resolution, the President is authorized to agree, in accordance with section 411 of the Compact, to an effective date for and thereafter to implement such Compact, having taken into account any procedures with respect to the United Nations for termination of the Trusteeship Agreement.
(c) Reference to Compact
Any reference in this joint resolution to “the Compact” shall be treated as a reference to the Compact of Free Association set forth in title II of this joint resolution.
(d) Amendment, change, or termination in Compact and certain agreements
(1)
Mutual agreement by the Government of the United States as provided in the Compact which results in amendment, change, or termination of all or any part thereof shall be effected only by Act of Congress and no unilateral action by the Government of the United States provided for in the Compact, and having such result, may be effected other than by Act of Congress.
(2)
The provisions of paragraph (1) shall apply—
(A)
to all actions of the Government of the United States under the Compact including, but not limited to, actions taken pursuant to sections 431, 432, 441, or 442;
(B)
to any amendment, change, or termination in the Agreement between the Government of the United States and the Government of the Federated States of Micronesia Regarding Friendship, Cooperation and Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free Association referred to in section 462(j) of the Compact and the Agreement between the Government of the United States and the Government of the Marshall Islands Concerning Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free Association referred to in section 462(k) of the Compact;
(C)
to any amendment, change, or termination of the agreements concluded pursuant to Compact sections 175, 177, and 221(a)(5), the terms of which are incorporated by reference into the Compact; and
(D)
to the following subsidiary agreements, or portions thereof:
(i)
Article II of the agreement referred to in section 462(a) of the Compact;
(ii)
Article II of the agreement referred to in section 462(b) of the Compact;
(iii)
Article II and Section 7 of Article XI of the agreement referred to in section 462(e) of the Compact;
(iv)
the agreement referred to in section 462(f) of the Compact;
(v)
Articles III and IV of the agreement referred to in section 462(g) of the Compact;
(vi)
Articles III and IV of the agreement referred to in section 462(h) of the Compact; and
(vii)
Articles VI, XV, and XVII of the agreement referred to in section 462(i) of the Compact.
(e) Subsidiary agreements deemed bilateral
For purposes of implementation of the Compact and this joint resolution, each of the subsidiary agreements referred to in subsections (a) and (b) (whether or not bilateral in form) shall be deemed to be bilateral agreements between the United States and each other party to such subsidiary agreement. The consent or concurrence of any other party shall not be required for the effectiveness of any actions taken by the United States in conjunction with either the Federated States of Micronesia or the Marshall Islands which are intended to affect the implementation, modification, suspension, or termination of any such subsidiary agreement (or any provision thereof) as regards the mutual responsibilities of the United States and the party in conjunction with whom the actions are taken.
(f) Effective date
(1)
The President shall not agree to an effective date for the Compact, as authorized by this section, until after certifying to Congress that the agreements described in section 1902 of this title and section 1903 of this title have been concluded.
(2)
Any agreement concluded with the Federated States of Micronesia or the Marshall Islands pursuant to sections 1902 and 1903 of this title and any agreement which would amend, change, or terminate any subsidiary agreement or portion thereof as set forth in paragraph (4) of this subsection shall be submitted to the Congress. No such agreement shall take effect until after the expiration of 30 days after the date such agreement is so submitted (excluding days on which either House of Congress is not in session).
(3)
No agreement described in paragraph (2) shall take effect if a joint resolution of disapproval is enacted during the period specified in paragraph (2). For the purpose of expediting the consideration of such a joint resolution, a motion to proceed to the consideration of any such joint resolution after it has been reported by an appropriate committee shall be treated as highly privileged in the House of Representatives. Any such joint resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of Public Law 94–329 .
(4)
The subsidiary agreements or portions thereof referred to in paragraph (2) are as follows:
(A)
Articles III and IV of the agreement referred to in section 462(b) of the Compact.
(B)
Articles III, IV, V, VI, VII, VIII, IX, X, and XI (except for Section 7 thereof) of the agreement referred to in section 462(e) of the Compact.
(C)
Articles IV, V, X, XIV, XVI, and XVIII of the agreement referred to in section 462(i) of the Compact.
(D)
Articles II, V, VI, VII, and VIII of the agreement referred to in section 462(g) of the Compact.
(E)
Articles II, V, VI, and VIII of the agreement referred to in section 462(h) of the Compact.
(F)
The Agreement set forth on pages 388 through 391 of House Document 98–192 of March 30, 1984 .
(5)
No agreement between the United States and the Government of either the Federated States of Micronesia or the Marshall Islands which would amend, change, or terminate any subsidiary agreement or portion thereof, other than those set forth in subsection (d) of this section or paragraph (4) of this subsection shall take effect until the President has transmitted such agreement to the President of the Senate and the Speaker of the House of Representatives together with an explanation of the agreement and the reasons therefore.
( Pub. L. 99–239, title I, § 101 , Jan. 14, 1986 , 99 Stat. 1773 .)