A joint resolution to approve the "Compact of Free Association", and for other purposes.

Title I: Approval of Compact; Interpretation of, and U.S. Policies Regarding Compact; Supplemental Provisions - Grants congressional approval to the Compact of Free Association between the United States, the Marshall Islands, and the Federated States of Micronesia.

Sets forth: (1) provisions for implementing such Compact (including provisions for congressional submission, presidential certification, mutual assistance in law enforcement and drug control, and review of economic development plans); and (2) U.S. policies regarding such Compact.

Provides for the President to negotiate with the Government of the Marshall Islands an agreement to assure continued use of lands on Ujelang by the people of Enewetak and lands on Ejit by the people of Bikini. Requires the United States to pay, or to make loans to, the Government of the Marshall Islands for the use of land on Kwajalein Atoll for U.S. military purposes.

Sets forth provisions with respect to: (1) payments to the people of Bikini, Enewetak, Rongelap, and Utirik affected by U.S. nuclear weapons tests; (2) health care; (3) agricultural and food programs; (4) establishment of the Enjebi Community Trust Fund; and (5) Rongelap and Bikini Island cleanup.

Sets forth provisions regarding: (1) the continuance of democracy and respect for international human rights by the Marshall Islands and the Federated States of Micronesia; (2) non-alienation of compact state lands; and (3) nuclear waste disposal.

Requires the President to: (1) report to the Congress with respect to the impact of the Compact on the U.S. territories and Hawaii; and (2) seek the cooperation of the Marshall Islands and the Federated States of Micronesia in the development of international and regional fishery management policy (including jurisdiction over highly migratory species of fish found outside the territorial sea of the compact states). Prohibits U.S. funds from being used by the compact states to pay off foreign loans. Authorizes the Comptroller General to audit all U.S. assistance to the compact states.

Sets forth provisions relating to: (1) Trust Territory authorizations; (2) foreign agent registration; (3) security and defense matters; (4) education assistance programs; (5) compact state debts to Federal agencies; (6) technical assistance by the U.S. Forest Service, U.S. Coast Guard, and U.S. Fish and Wildlife Service; (7) Department of Defense medical facilities; (8) Micronesian war claims; (9) United States land use payments; (10) disease control; (11) congressional approval of amendments to the Compact; and (12) user fees.

Provides that upon the effective date of the Compact: (1) the laws of the United States generally applicable to the Trust Territory of the Pacific Islands shall continue to apply to the Republic of Palau; and (2) Palau shall continue to be eligible for such proportion of Federal assistance as it would otherwise have been eligible to receive under such laws prior to the effective date of such Compact.

Provides for preferences to local and U.S. contractors on construction projects, and for local hiring and training for such projects. Authorizes appropriations.

Title II: Compact of Free Association - Sets forth the Compact of Free Association between the United States, the Marshall Islands, and the Federated States of Micronesia. (Declares that the people of the Marshall Islands and the Federated States of Micronesia are self-governing. States that the United States shall provide grant and program assistance to such territories. Declares that the United States has full authority and responsibility for the security and defense of such territories.)

Declares that the defense sites of the United States established in the Marshall Islands or the Federated States of Micronesia in accordance with the Compact and its related agreements are within the special maritime and territorial jurisdiction of the United States.

Title III: Pacific Policy Review Commission - Establishes the Pacific Policy Review Commission which shall review U.S. policy toward the Pacific region to determine whether modifications are necessary to achieve political, social, and economic development there. Requires the Commission to submit annual reports to the President and to the Congress. Authorizes appropriations. Terminates the Commission when it makes its final report to the Congress and the President.

Title IV: Clarification of Certain Trade and Tax Provisions of the Compact - Provides that the Compact shall not affect the tariff treatment of products imported into the United States from the Federated States of Micronesia or the Marshall Islands.

Declares that the exemption from U.S. income tax shall not apply to U.S. citizens who reside in the Marshall Islands and the Federated States of Micronesia. Sets forth provisions relating to tax incentives and exchange of tax information.

Authorizes appropriations to such territories to compensate for any reductions in tax incentives. Requires the Secretary of the Treasury to conduct a study on the effects of the Compact's tax provisions and to report such results to specified congressional committees.