-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