-6have the force of law and shall be similar to arrangements which
the United States has with other nations.
Section 176.
This section preserves the decisional law established in civil litigation during the Trusteeship by the courts of
the Trust Territory, subject to the pewer of the courts of the FAS
derived from their respective constitutions to modify judgments in
appfopriate cases.
Section 177.
In this section, the United States accepts
responsibliity for compensation owing to citizens of the FAS for
loss or damage to person and property resulting from the nuclear
testing program conducted by the United States in the Northern
Marshall Islands between 1946 and 1958.
This section also
provides that the United States Government and the Government
the Marshall Islnads shall set forth in a separate agreement
provisions for a full and complete settlement of all uncompensated
claims which have arisen as to the Marshall Islands and
its
citizens.
The separate agreement is also to contain agreed
provisions for medical services and radiological monitoring as
well as utilization of affected lands.
This agreement has been
concluded, is incorporated into the Compact, and provides for the
establishment of a $150 million fund to finance the purposes of
this agreement.
This agreement settles all Marshall Islands
claims arising from the nuclear testing program.
Section 178.
This section enables federal agencies providing
services and programs in the FAS to settle and pay tort claims
arising from their activities in the FAS pursuant to the administrative procedures set forth at 28 U.S.C. 2672.
Claims not
resolved through that procedure will be referred to arbitration
under the conference and dispute resolution process set forth in
Title Four, Article II, of the Compact, and paid in accordance
with the arbitration award payment provisions of 31 U.S.C. 1304.
The United States will be immune from suits based on claims
arising under the provisions of this section.
TITLE Two
ECONOMIC RELATIONS
(The chart attached at Appendix A displays the amounts and
schedule for payment of grant funding and assistance set forth in
the Compact and discussed in the following analysis.)
Article I,
Grant Assistance
Section 211.
This section sets forth the basic grant assistance
constituting the economic foundation of free association.
The
fundamental concept underlying the grant assistance is that the
FAS will be provided with the resources to implement development
programs and provide public services appropriate to conditions and
needs as determined by the FAS.
A capital account and a current