Title 48, Territories and Insular PossessionsRelease 119-110
§1902 Agreements with Federated States of Micronesia
Title 48 › CHAPTER 18 — MICRONESIA, MARSHALL ISLANDS, AND PALAU › SUBCHAPTER I — MICRONESIA AND MARSHALL ISLANDS › Part A — Approval and Implementation of Original Compact › § 1902
Summary
The President must make a new law-enforcement agreement with the Federated States of Micronesia (FSM) under section 175 of the Compact. This new deal adds to the October 1, 1982 agreement sent to Congress on February 20, 1985. U.S. and FSM police will help each other, when both sides agree, to prevent and investigate crimes and enforce certain laws, and they must follow the laws where they work. The two governments will work together against illegal drugs, with high-level officials like the Attorney General taking part in talks. Help covers crimes such as terrorism, spying, organized crime, and financial crimes, plus the offenses listed in the Compact’s Appendix A. The United States will give training and equipment without charging FSM when needed, and U.S. funds may reimburse state or local agencies that help. Officials negotiating the agreement must talk with the law-enforcement agencies that will be affected. The President must report to Congress every year about how this help is working, include crime statistics that affect the United States, and suggest steps to improve cooperation. Reports required under section 2291(e) of title 22 must also include FSM information. The FSM must send U.S.-compatible economic development plans at least every 5 years. Any major construction or planned independent aircraft purchases paid for with Compact funds must be listed. The U.S. will not agree to those plans until the President reviews them, reports to Congress, and Congress has 30 days (not counting days when both Houses are not in session) to look them over; the President must finish the review and report within 60 days after getting the plans. The President, with the U.S. Comptroller General, must also update audit rules so the GAO can audit all Compact grants and any other U.S. help to FSM. The GAO can access and copy records and must be allowed to continue auditing for at least 3 years after the last grant. FSM must keep records separate for at least 3 years, give annual financial statements in its yearly report, and send those statements to the President no later than 180 days after the end of the U.S. fiscal year for audit and transmission to Congress. “Audits” include financial, program, and management checks to see if funds were used correctly and lawfully. The FSM must fully cooperate with these audits.
Full Legal Text
Title 48, §1902
Territories and Insular Possessions, Source: USLM XML via OLRC
(a)Law enforcement assistance
(1)Agreement
The President of the United States shall negotiate with the Government of the Federated States of Micronesia an agreement pursuant to section 175 of the Compact which is in addition to the Agreement pursuant to such section dated October 1, 1982, and transmitted to the Congress by the President on February 20, 1985. Such additional agreement shall provide as follows:
(A)Mutual assistance in law enforcement
The law enforcement agencies of the United States and the Federated States of Micronesia shall assist one another, as mutually agreed, in the prevention and investigation of crimes and the enforcement of the laws of the United States and the Federated States of Micronesia specified in subparagraph (C) of this paragraph. The United States and the Federated States of Micronesia will authorize mutual assistance with respect to investigations, inquiries, audits and related activities by the law enforcement agencies of both Governments in the United States and the Federated States of Micronesia. In conducting activities authorized in accordance with this section, the United States and the Federated States of Micronesia will act in accordance with the constitution and laws of the jurisdiction in which such activities are conducted.
(B)Narcotics and control of illegal substances
The United States and the Federated States of Micronesia will take all reasonable and necessary steps, as mutually agreed, based upon consultations in which the Attorney General or other designated official of each Government participates, to prevent the use of the lands, waters, and facilities of the United States or the Federated States of Micronesia for the purposes of cultivation of, production of, smuggling of, trafficking in, and abuse of any controlled substance as defined in section 802(6) of title 21 and Schedules I through V of Subchapter II of the Controlled Substances Act of the Federated States of Micronesia, or for the distribution of any such substance to or from the Federated States of Micronesia or to or from the United States or any of its territories or commonwealths.
(C)Other criminal laws
Assistance provided pursuant to this subsection shall also extend to, but not be limited to, prevention and prosecution of violations of the laws of the United States and the laws of the Federated States of Micronesia related to terrorism, espionage, racketeer influenced and corrupt organizations, and financial transactions which advance the interests of any person engaging in unlawful activities, as well as the schedule of offenses set forth in Appendix A of the subsidiary agreement to section 175 of the Compact.
(2)Technical and training assistance
Pursuant to section 224 and 226 of the Compact, the United States shall provide non-reimbursable technical and training assistance as appropriate, including training and equipment for postal inspection of illicit drugs and other contraband, to enable the Government of the Federated States of Micronesia to develop and adequately enforce laws of the Federated States of Micronesia and to cooperate with the United States in the enforcement of criminal laws of the United States. Funds appropriated pursuant to section 1905(l) of this title may be used to reimburse State or local agencies providing such assistance.
(3)Consultation
Any official, designated by this joint resolution or by the President to negotiate any agreement under this section, shall consult with affected law enforcement agencies prior to entering into such an agreement on behalf of the United States.
(4)Report
The President shall report annually to Congress on the implementation of this subsection. Such report shall provide statistical and other information about the incidence of crimes in the Federated States of Micronesia which have an impact upon United States jurisdictions, and propose measures which the United States and the Federated States of Micronesia should take in order better to prevent and prosecute violations of the laws of the United States and the Federated States of Micronesia. The reports required under section 2291(e) of title 22 shall include relevant information concerning the Federated States of Micronesia.
(b)Economic development plans review process
(1)Submission
Notwithstanding section 211(b) of the Compact, the President may agree to an effective date for the Compact pursuant to section 1901(a) of this title if the Government of the Federated States of Micronesia agrees to submit economic development plans consistent with section 211(b) of the Compact to the Government of the United States for concurrence at intervals no greater than every 5 years for the duration of the Compact. Any capital construction project and any planned independent purchase of aircraft which is to be financed (directly or indirectly) through the use of funds provided under section 211 of the Compact shall be identified in the economic development plans.
(2)United States Government review
The United States shall not concur in those development plans described in paragraph (1) of this subsection until—
(A)after the President of the United States has conducted a review and reported the findings of the President to the Congress; and
(B)the Congress has had 30 days (excluding days on which both Houses of Congress are not in session) to review the findings of the President.
(3)Report
The President shall complete the review under paragraph (2) and shall report the findings no later than 60 days after the President’s receipt of such plans.
(4)Views and comments
The report shall include the views of the Secretary of the Interior, the Administrator of the Agency for International Development, and the heads of such other Executive departments as the President may decide to include in the report, as well as any comments which the Federated States of Micronesia may wish to have included.
(c)Agreement on audits
In accordance with section 233 of the Compact, the President of the United States, in consultation with the Comptroller General of the United States, shall negotiate with the Government of the Federated States of Micronesia modifications to the “Agreement Concerning Procedures for the Implementation of United States Economic Assistance, Programs and Services Provided in the Compact of Free Association”, which shall provide as follows:
(1)General authority of the GAO to audit
(A)The Comptroller General of the United States (and his duly authorized representatives) shall have the authority to audit—
(i)all grants, program assistance, and other assistance provided to the Government of the Federated States of Micronesia under Articles I and II of Title Two of the Compact; and
(ii)any other assistance provided by the Government of the United States to the Government of the Federated States of Micronesia.
Such authority shall include authority for the Comptroller General to conduct or cause to be conducted any of the audits provided for in section 233 of the Compact. The authority provided in this paragraph shall continue for at least three years after the last such grant has been made or assistance has been provided.
(B)The Comptroller General (and his duly authorized representatives) shall also have authority to review any audit conducted by or on behalf of the Government of the United States. In this connection, the Comptroller General shall have access to such personnel and to such records, documents, working papers, automated data and files, and other information relevant to such review.
(2)GAO access to records
(A)In carrying out paragraph (1), the Comptroller General (and his duly authorized representatives) shall have such access to the personnel and (without cost) to records, documents, working papers, automated data and files, and other information relevant to such audits. The Comptroller General may duplicate any such records, documents, working papers, automated data and files, or other information relevant to such audits.
(B)Such records, documents, working papers, automated data and files, and other information regarding each such grant or other assistance shall be maintained for at least three years after the date such grant or assistance was provided and in a manner that permits such grants, assistance, and payments to be accounted for distinct from any other funds of the Government of the Federated States of Micronesia.
(3)Representative status for GAO representatives
The Comptroller General and his duly authorized representatives shall be accorded the status set forth in Article V of Title One of the Compact.
(4)Annual financial statements
As part of the annual report submitted by the Government of the Federated States of Micronesia under section 211 of the Compact, the Government shall include annual financial statements which account for the use of all of the funds provided by the Government of the United States to the Government under the Compact or otherwise. Such financial statements shall be prepared in accordance with generally accepted accounting procedures, except as may otherwise be mutually agreed. Not later than 180 days after the end of the United States fiscal year with respect to which such funds were provided, each such statement shall be submitted to the President for audit and transmission to the Congress.
(5)“Audits” defined
As used in this subsection, the term “audits” includes financial, program, and management audits, including determining—
(A)whether the Government of the Federated States of Micronesia has met the requirements set forth in the Compact, or any related agreement entered into under the Compact, regarding the purposes for which such grants and other assistance are to be used; and
(B)the propriety of the financial transactions of the Government of the Federated States of Micronesia pursuant to such grants or assistance.
(6)Cooperation by Federated States of Micronesia
The Government of the Federated States of Micronesia will cooperate fully with the Comptroller General of the United States in the conduct of such audits as the Comptroller General determines necessary to enable the Comptroller General to fully discharge his responsibilities under this joint resolution.
Legislative History
Notes & Related Subsidiaries
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 Islands and the Federated States of Micronesia, which is contained in section 201 of Pub. L. 99–239, set out as a note under section 1901 of this title. This joint resolution, referred to in subsecs. (a)(3) and (c)(6), is Pub. L. 99–239, Jan. 14, 1986, 99 Stat. 1770, 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 classification of this Act to the Code, see
Short Title
note set out under section 1901 of this title and Tables. section 2291(e) of title 22, referred to in subsec. (a)(4), was repealed and section 2291(i) of title 22, relating to definitions, was redesignated section 2291(e) by Pub. L. 102–583, § 6(b)(2), (3), Nov. 2, 1992, 106 Stat. 4932. See section 2291h and 2291i of Title 22, Foreign Relations and Intercourse. For Oct. 21, 1986, as the
Effective Date
of the Compact of Free Association with the Marshall Islands, and Nov. 3, 1986, as the
Effective Date
of the Compact of Free Association with the Federated States of Micronesia, referred to in subsec. (b)(1), see Proc. No. 5564, Nov. 3, 1986, 51 F.R. 40399, set out as a note under section 1801 of this title. Codification Section was formerly set out as a note under section 1681 of this title.
Statutory Notes and Related Subsidiaries
Termination of Reporting RequirementsFor termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which reports required under subsecs. (a)(4) and (c)(4) of this section are listed as the 12th and last items on page 37), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance.
Reference
Citations & Metadata
Citation
48 U.S.C. § 1902
Title 48, Territories and Insular Possessions
Last Updated
Sep 23, 2026
Release point: 119-110