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Article I
Grant Assistance
Section 211
(a)
In order to assist the Governments of the Marshall
Islands and the Federated States of Micronesia in their efforts to
advance the economic self-sufficiency of their peoples and in

recognition of the special relationship that exists between them
and the United States,

the Government of the United States shall

provide on a grant basis the following amounts:
(1)

to the Government of the Marshall Islands,

$26.1 mil-

lion annually for five years commencing on the effective date of this Compact, $22.1 million annually for
five years commencing on the fifth anniversary of the
effective date of this Compact, and $19.1 million
annually for five years commencing on the tenth anniversary of this Compact.
Over this fifteen-year
period, the Government of the Marshall Islands shall
dedicate an average of no less than 40 percent of
these amounts to the capital account subject to provision for revision of this percentage incorporated
into the plan referred to in Section 211(b).

(2) to the Government of the Federated States of Micro-

nesia, $60 million annually for five years commencing
on the effective date of this Compact, $51 million
annually for five years commencing on the fifth anniversary of the effective date of this Compact, and
$40 million annually for five years commencing on the
tenth anniversary of the effective date of this Com-

pact.
Over this fifteen year period, the Government
of the Federated States of Micronesia shall dedicate

an average of no less than 40 percent of these amounts
annually to the capital account subject to provision
for revision of this percentage incorporated into the
plan referred to in Section 211(b).
To take into
account the special nature of the assistance, to be

provided under this paragraph and Sections 212(b),
213(c), 214(c), 215(a)(3), 215(b) (3), 216(a), 216(5),
221(a), and 221(b), the division of these amounts
among the national and state governments of the
Federated States of Micronesia shall be certified to
the Government of the United States by the Government
of the Federated States of Micronesia.

(b)
The annual expenditure of the grant
the capital account in Section 211(a) by the
Marshall Islands and the Federated States of
in accordance with official overall economic
‘

amounts specified for
Governments of the
Micronesia shall be
development plans

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