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Article III
Administrative Provisions
Section 231

Upon the thirteenth anniversary of the effective date of this

Compact,

the Government of the United States and the Governments

of the Marshall Islands and the Federated States of Micronesia

shall commence negotiations regarding those provisions of this
Compact which expire on the fifteenth anniversary of its effective date.
If these negotiations are not concluded by the fifteenth
anniversary of the effective date of this Compact, the period of
negotiations shall extend for not more than two additional years,

during which time the provisions of this Compact including Title
Three shall remain in full force and effect.
During this additional
period of negotiations, the Government of the United States shall
continue its assitance to the Governments with which it is negotiating pursuant to this Section at a level which is the average
of the annual amounts granted pursuant to Sections 211, 212, 213,
214,

215 and 216 during the first fifteen years of this Compact.

The average annual amount paid pursuant to Sections 211, 212, 214
and 215 shall be adjusted pursuant to Section 217.
Section 232

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The specific nature, extent and contractual arrangements of the

services and programs provided for in Section 221 as well as the
legal status of agencies of the Government of the United States,
their civilian employees and contractors, and the dependents of
such personnel while present in the Marshall Islands or the

Federated States of Micronesia,

and other arrangements

in connec-

tion with a service or program furnished by the Government of the
United States, are set forth in separate agreements which shall
come into effect simultaneously with this Compact.
Section 233

The Government of the United States, in consultation with the
Governments of the Marshall Islands and the Federated States of
Micronesia, shall determine and implement procedures for the periodic audit of all grants and other assistance made under Article I
of this Title and of all funds expended for the services and programs provided under Article II of this Title.

Such audits shall

be conducted on an annual basis during the first five years following the effective date of this Compact and shall be at no cost to
the Government of the Marshall Islands or the Federated States of
Micronesia.

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