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PUBLIC LAW 85-223-AUG. 30, 1957

Public Law 85-223 AN ACT

To implement a treaty and agreement with the Republic of Panama, and for other purposes. Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,

August 30, 1957 [H. R. 6709]

of the

TITLE I—CONVEYANCE OF PROPERTY TO THE R E P U B LIC O F PANAMA AND FISCAL ADJUSTMENTS BY P A N A M A CANAL C O M P A N Y SEC. 101. I t is hereby declared to be the purpose of this title— Purpose. (1) to authorize and direct the fulfillment of those provisions of the Treaty of Mutual Understanding and Cooperation between the United States of America and the Republic of Panama signed on January 25, 1955, and of the memorandum of under- 6 UST 2273. standings reached signed on the same date, which contemplate, subject to authorization by the Congress, the conveyance of various lands and improvements to the Republic of Panama, including, but not limited to, conveyance of the lands and improvements in, and simultaneous relinquishment of all right, power and authority in, the area known as Paitilla Point, and including the removal of the railway terminal operations of the Panama Canal Company from the city of Panama and the conveyance of the lands and improvements known as Panama Railroad Yard in the city of Panama; and (2) to authorize and provide for the adjustments in the fiscal obligations of the Panama Canal Company necessitated by the aforesaid conveyances. SEC. 102. (a) I n accordance with and subject to the provisions of article V of the Treaty of Mutual Understanding and Cooperation 6 UST 2278. between the United States of America and the Republic of Panama signed on January 25, 1955, and item 2 of the memorandum of understandings reached signed on same date— (1) the Secretary of State is authorized and directed to convey to the Republic of Panama free of cost all the right, title, and interest held by the United States of America or its agencies in and to the land and improvements in the area known as Paitilla Point and in the areas designated in paragraphs 1, 2, and 3 of paragraph (a) of said item 2; and (2) the Panama Canal Company is authorized and directed to remove its operations and withdraw from the other lands and improvements designated in said item 2, and to convey to the Republic of Panama free of cost all the right, title, and interest held by the Panama Canal Company and the United States of America in and to said other lands and improvements. (b) The market value of the property of the Panama Canal Company conveyed under this directive or by operation of articles VI or 2285." ^ ^ 2279, VII of the treaty and the net capital loss, if any, as established by the Panama Canal Company and approved by the Director of the Bureau of the Budget, sustained in the disposal, relocation, or reutilization of any facility or other property of the Panama Canal Company rendered excess, wholly or in part, by operation of articles V or X II of the treaty or items 2, 6, 9, or 10 of the memorandum of understandings reached shall be treated as extraordinary expenditures and losses incurred through directives based on national policy and not related to the operations of the corporation, within the 84352 O - 5 8 - 3 5

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