
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 48USC1902]

 
              TITLE 48--TERRITORIES AND INSULAR POSSESSIONS
 
           CHAPTER 18--MICRONESIA, MARSHALL ISLANDS, AND PALAU
 
              SUBCHAPTER I--MICRONESIA AND MARSHALL ISLANDS
 
Sec. 1902. Agreements with Federated States of Micronesia


(a) Law enforcement assistance

                            (1) Agreement

        The President of the United States shall negotiate with the 
    Government of the Federated States of Micronesia an agreement 
    pursuant to section 175 of the Compact which is in addition to the 
    Agreement pursuant to such section dated October 1, 1982, and 
    transmitted to the Congress by the President on February 20, 1985. 
    Such additional agreement shall provide as follows:

        (A) Mutual assistance in law enforcement

            The law enforcement agencies of the United States and the 
        Federated States of Micronesia shall assist one another, as 
        mutually agreed, in the prevention and investigation of crimes 
        and the enforcement of the laws of the United States and the 
        Federated States of Micronesia specified in subparagraph (C) of 
        this paragraph. The United States and the Federated States of 
        Micronesia will authorize mutual assistance with respect to 
        investigations, inquiries, audits and related activities by the 
        law enforcement agencies of both Governments in the United 
        States and the Federated States of Micronesia. In conducting 
        activities authorized in accordance with this section, the 
        United States and the Federated States of Micronesia will act in 
        accordance with the constitution and laws of the jurisdiction in 
        which such activities are conducted.

        (B) Narcotics and control of illegal substances

            The United States and the Federated States of Micronesia 
        will take all reasonable and necessary steps, as mutually 
        agreed, based upon consultations in which the Attorney General 
        or other designated official of each Government participates, to 
        prevent the use of the lands, waters, and facilities of the 
        United States or the Federated States of Micronesia for the 
        purposes of cultivation of, production of, smuggling of, 
        trafficking in, and abuse of any controlled substance as defined 
        in section 802(6) of title 21 and Schedules I through V of 
        Subchapter II of the Controlled Substances Act of the Federated 
        States of Micronesia, or for the distribution of any such 
        substance to or from the Federated States of Micronesia or to or 
        from the United States or any of its territories or 
        commonwealths.

        (C) Other criminal laws

            Assistance provided pursuant to this subsection shall also 
        extend to, but not be limited to, prevention and prosecution of 
        violations of the laws of the United States and the laws of the 
        Federated States of Micronesia related to terrorism, espionage, 
        racketeer influenced and corrupt organizations, and financial 
        transactions which advance the interests of any person engaging 
        in unlawful activities, as well as the schedule of offenses set 
        forth in Appendix A of the subsidiary agreement to section 175 
        of the Compact.

                (2) Technical and training assistance

        Pursuant to sections 224 and 226 of the Compact, the United 
    States shall provide non-reimbursable technical and training 
    assistance as appropriate, including training and equipment for 
    postal inspection of illicit drugs and other contraband, to enable 
    the Government of the Federated States of Micronesia to develop and 
    adequately enforce laws of the Federated States of Micronesia and to 
    cooperate with the United States in the enforcement of criminal laws 
    of the United States. Funds appropriated pursuant to section 1905(l) 
    of this title may be used to reimburse State or local agencies 
    providing such assistance.

                          (3) Consultation

        Any official, designated by this joint resolution or by the 
    President to negotiate any agreement under this section, shall 
    consult with affected law enforcement agencies prior to entering 
    into such an agreement on behalf of the United States.

                             (4) Report

        The President shall report annually to Congress on the 
    implementation of this subsection. Such report shall provide 
    statistical and other information about the incidence of crimes in 
    the Federated States of Micronesia which have an impact upon United 
    States jurisdictions, and propose measures which the United States 
    and the Federated States of Micronesia should take in order better 
    to prevent and prosecute violations of the laws of the United States 
    and the Federated States of Micronesia. The reports required under 
    section 2291(e) \1\ of title 22 shall include relevant information 
    concerning the Federated States of Micronesia.
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    \1\ See References in Text note below.
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(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.

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

                       References in Text

    The Compact, referred to in text, is the Compact of Free Association 
between the Government of the United States and the Governments of the 
Marshall Islands and the Federated States of Micronesia, which is 
contained in section 201 of Pub. L. 99-239, set out as a note under 
section 1901 of this title.
    This joint resolution, referred to in subsecs. (a)(3) and (c)(6), is 
Pub. L. 99-239, Jan. 14, 1986, 99 Stat. 1770, as amended, known as the 
Compact of Free Association Act of 1985, which is classified principally 
to this subchapter and chapter 19 (Sec. 2001 et seq.) of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 1901 of this title and Tables.
    Section 2291(e) of title 22, referred to in subsec. (a)(4), was 
repealed and section 2291(i) of title 22, relating to definitions, was 
redesignated section 2291(e) by Pub. L. 102-583, Sec. 6(b)(2), (3), Nov. 
2, 1992, 106 Stat. 4932. See sections 2291h and 2291i of Title 22, 
Foreign Relations and Intercourse.
    For Oct. 21, 1986, as the effective date of the Compact of Free 
Association with the Marshall Islands, and Nov. 3, 1986, as the 
effective date of the Compact of Free Association with the Federated 
States of Micronesia, referred to in subsec. (b)(1), see Proc. No. 5564, 
Nov. 3, 1986, 51 F.R. 40399, set out as a note under section 1801 of 
this title.

                          Codification

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

                  Section Referred to in Other Sections

    This section is referred to in sections 1901, 1905, 1910, 1931, 1955 
of this title.
