-7account will be established from grant funds, to be used for
economic development and government operations, repectively.
In order to enable the FAS to undertake economic development
programs at the outset of the initial fifteen year term of free
association, the grant assistance package was structured to
provide maximum "front-end loading" of grant funding, while at the
same time spreading out funding levels over the entire fifteen-
year period to ensure that minimum needs can be satisfied and that
economic stability can be preserved throughout the initial period
of free association.
Thus, at the fifth and again at the tenth
anniversary of the effective date of the Compact, the amounts of
grants will be reduced from the higher levels provided during the
first five years.
This section also calls for each of the FAS to establish
official development plans and each FAS agrees that during the
term of the Compact an average of no less than 40 percent of
designated grant funding will have been dedicated to capital
account activities as set forth specifically in the plans.
This
section recognizes that achievement of the goals of the economic
development plans may be affected by the impact of exceptional,
economically adverse circumstances.
Each FAS is to report
annually to the President and the Congress on the implementation
of the plans and the use of grant money.
Section 212.
The section provides for fourteen annual payments to
the FSM, commencing on the first anniversary of free association,
for development, which may be used to pay certain account
expenditures for the operations of United States military Civic
Action Teams made available to the FSM under Section 227.
Section 213.
This section provides that the specified scheduled
amounts provided therein to the Governments of the Marshall
Islands and the Federated States of Micronesia shall be used by
them to offset the impact of any United States military activities
conducted pursuant to Section 32l(a) and its separate agreements.
Section 214.
This section provides for fourteen annual payments,
commencing on the first anniversary of free association, for
energy production in the FAS.
These grants are provided with the
goal of increasing FAS energy self-sufficiency.
Section 215.
This section provides annual grants in support of
current account communications operations and for other current or
capital account activities which may include purchase of communications facilities and equipment now located in the Trust Territory,
including the new COMSAT earth stations.
Section 216.
This section provides annual grants for maritime
zone survelllance and enforcement, medical referral transportation
and other health services, and post-secondary educational scholarship programs.
This funding is augmented by a United States