Page:United States Statutes at Large Volume 99 Part 2.djvu/730

 99 STAT. 1840

PUBLIC LAW 99-239—JAN. 14, 1986

48 USC 1681 note.

SEC. 405. THE MARSHALL ISLANDS AND THE FEDER4TED STATES OP MICRONESIA TREATED AS NORTH AMERICAN AREA.

26 USC 274.

For purposes of section 274(h)(3)(A) of the Internal Revenue Code of 1954, the term "North American Area" shall include the Marshall Islands and the Federated States of Micronesia.

48 USC 1681 note.

SEC. 406. EFFECTIVE DATE.

48 USC 1681 note.

Report.

48 USC 1681 note.

This title shall apply to income earned, and transactions occurring, after September 30, 1985, in taxable years ending after such date. SEC. 407. STUDY OF TAX PROVISIONS.

The Secretary of the Treasury or his delegate— (1) shall conduct a study of the effects of the tax provisions of the Compact (as clarified by the foregoing provisions of this title), and (2) shall report the results of such study before October 1, 1987, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. SEC. 408. COORDINATION WITH OTHER PROVISIONS.

Nothing in any provision of this joint resolution (other than this title) which is inconsistent with any provision of this title shall have any force or effect. TITLE V—COMPACT OF FREE ASSOCMTION WITH PALAU

48 USC 1681 note.

SEC. SOL APPROVAL IN PRINCIPLE.

48 USC 1681 note.

SEC. 502. MODIFICATIONS OF COMPACT.

(a) Subject to subsection (b) of this section. Congress expresses its approval in principle of the Compact of Free Association Between the Government of the United States of America and the Government of the Republic of Palau, the text of which was printed in the Congressional Record of November 14, 1985 on pages SI 5622 through SI 5628, inclusive, and which is also printed as Committee Print No. 4 of the Committee on Interior and Insular Affairs of the House of Representatives of the 99th Congress. (b) A Compact with Palau after it is transmitted to Congress by the President shall take effect only upon^ (1) a certification by the President to the Congress that the President of U.S. Republic of Palau has approved a Compact in accordance with section 411 of the Compact described in subsection (a) and that Ante, p. 1827. the President has determined that the United States will be able to carry out fully its rights and responsibilities under Title Three of the Compact described in subsection (a) and the subsidiary agreements thereto; and (2) enactment by the Congress of a joint resolution approving a compact and providing for its implementation.

Ante, pp. 1791, 1835.

Title IV and Sections 105(b), 105(c), 105(h)(l), 105(1), and 202 of this joint resolution shall apply to a compact with Palau, except that any reference in such sections to the (Compact shall be treated as referring to the Compact described in section 501 of this joint

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