-11no cost United States property located in the Trust Territory for
which there is no continuing U.S. need.
This transfer process is
largely complete.
Transfer of federal property began in the Trust
Territory in 1980, pursuant to Section 402 of United States Public
Law 96-597.
Section 235.
During the Trusteeship, trust funds have ‘been
established for the benefit of various groups of Trust Territory
citizens, such as those affected by the United States nuclear
testing programs in the Marshall Islands.
This section provides
for appointment by the United States of a new trustee to replace
the High Commissioner as trustee of such funds, so that the
initial legislative intent in creating the funds can be carried
out.
The United States also agrees to carry out such functions of
government formerly exercised by the High Commissioner as are
necessary to implement the provisions of a particular trust.
For
instance, the High Commissioner is currently required to make
certain determinations and exercise certain administrative
functions in connection with trust funds.
Under the Compact, this
will now be undertaken by the United States.
Section 236.
This section pledges the full faith and credit of
the United States for payment of the amounts provided for under
Articles I and III of Title Two.
A similar pledge is contained in
the Covenant to Establish a Commonwealth of the Northern Mariana
Islands in Political Union with the United States.
This pledge is
intended to create an enforceable obligation of the United States
to pay the amounts provided for in Articles I and III.
While this
obligation will be discharged in the same manner as other
financial obligations incurred through international agreements
requiring an act of appropriation, the FAS are provided with a
judicial remedy before the United States Claims Court in the event
payments owing under the Compact are not made.
Because the
Compact will be both an international agreement and public law,
this is a valid grant of jurisdiction which makes an express
exception for the FAS from the restriction contained in 28 U.S.C.
1502 relating to actions arising from treaties with foreign
nations.
Any judgments resulting from an action by the FAS under
this section would be paid under 31 U.S.C. 1304.
Article IV,
Trade
Section 241-243.
These sections provide that the FAS will not be
within the customs territory of the United States, and will be
able to export products to the United States duty free,
provided
that less than 70% of the products' value derives from foreign
sources.
This is the same treatment which United States insular
possessions receive under General Headnote 3(a) of the United
States Tariff Scheduie.
Articles not covered by General Headnote
(3) will be entitled to most favored treatment.
Article V,
Finance-and Taxation