(M) in section 461(h), by striking ‘‘Tele-
communications’’ and inserting ‘‘Telecommuni-
cation’’; 
(N) in section 462(b)(4), by striking ‘‘of 
Free Association’’ the second place it appears; 
and 
(O) in section 463(b), by striking ‘‘Articles 
IV’’ and inserting ‘‘Article IV’’. 
(2) U.S.–RMI COMPACT.—The Compact of 
Free Association, as amended, between the Govern-
ment of the United States of America and the Gov-
ernment of the Republic of the Marshall Islands (as 
provided in section 201(b) of the Compact of Free 
Association Amendments Act of 2003 (117 Stat. 
2795)) is amended— 
(A) in section 174(a), by striking ‘‘court’’ 
and inserting ‘‘courts’’; 
(B) in section 177(a), by striking the 
comma before ‘‘(or Palau)’’; 
(C) in section 179(b), by striking ‘‘amend-
ed Compact,’’ and inserting ‘‘Compact, as 
amended,’’; 
(D) in section 211— 
(i) in the fourth sentence of sub-
section (a), by striking ‘‘Compact, as
Amended, of Free Association’’ and insert-
ing ‘‘Compact of Free Association, as 
amended’’; 
(ii) in the first sentence of subsection 
(b), by striking ‘‘Agreement between the 
Government of the United States and the 
Government of the Republic of the Mar-
shall Islands Regarding Miliary Use and 
Operating Rights’’ and inserting ‘‘Agree-
ment Regarding the Military Use and Op-
erating Rights of the Government of the 
United States in the Republic of the Mar-
shall Islands concluded Pursuant to Sec-
tions 321 and 323 of the Compact of Free 
Association, as Amended (Agreement be-
tween the Government of the United 
States and the Government of the Republic 
of the Marshall Islands Regarding Military 
Use and Operating Rights)’’; and 
(iii) in the last sentence of subsection 
(e), by inserting before the period at the 
end the following: ‘‘and the Federal Pro-
grams and Services Agreement referred to 
in section 231’’; 
(E) in section 221(a)—
(i) in the matter preceding paragraph 
(1), by striking ‘‘Section 231’’ and insert-
ing ‘‘section 231’’; and 
(ii) in paragraph (5), by inserting 
‘‘(Federal Emergency Management Agen-
cy)’’ after ‘‘Homeland Security’’; 
(F) in the second sentence of section 232, 
by striking ‘‘sections 103(m)’’ and all that fol-
lows through ‘‘(January 14, 1986)’’ and insert-
ing ‘‘section 103(k) of Public Law 108–188, 
117 Stat. 2734, December 17, 2003’’; 
(G) in the first sentence of section 341, by 
striking ‘‘Section 141’’ and inserting ‘‘section 
141’’; 
(H) in section 342— 
(i) in subsection (a), by striking ‘‘14 
U.S.C. 195’’ and inserting ‘‘section 195 of 
title 14, United States Code’’; and 
(ii) in subsection (b)— 
(I) 
by 
striking 
‘‘46 
U.S.C. 
1295(b)(6)’’ and inserting ‘‘section 
1303(b)(6) of the Merchant Marine 
Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 
and
(II) by striking ‘‘46 U.S.C. 
1295b(b)(6)(C)’’ and inserting ‘‘sec-
tion 1303(b)(6)(C) of that Act’’; 
(I) in the third sentence of section 354(a), 
by striking ‘‘section 442 and 452’’ and insert-
ing ‘‘sections 442 and 452’’; 
(J) in the first sentence of section 443, by 
inserting ‘‘, as amended.’’ after ‘‘the Compact’’; 
(K) in the matter preceding paragraph (1) 
of section 461(h)— 
(i) by striking ‘‘1978’’ and inserting 
‘‘1998’’; and 
(ii) by striking ‘‘Telecommunications’’ 
and inserting ‘‘Telecommunication Union’’; 
and 
(L) in section 463(b), by striking ‘‘Article’’ 
and inserting ‘‘Articles’’. 
SEC. 8. TRANSMISSION OF VIDEOTAPE PROGRAMMING. 
Section 111(e)(2) of title 17, United States Code, is 
amended by striking ‘‘or the Trust Territory of the Pacific 
Islands’’ and inserting ‘‘the Federated States of Micro-
nesia, the Republic of Palau, or the Republic of the Mar-
shall Islands’’.
SEC. 9. PALAU ROAD MAINTENANCE. 
The Government of the Republic of Palau may de-
posit the payment otherwise payable to the Government 
of the United States under section 111 of Public Law 
101–219 (48 U.S.C. 1960) into a trust fund if— 
(1) the earnings of the trust fund are expended 
solely for maintenance of the road system con-
structed pursuant to section 212 of the Compact of 
Free Association between the Government of the 
United States of America and the Government of 
Palau (48 U.S.C. 1931 note); and 
(2) the trust fund is established and operated 
pursuant to an agreement entered into between the 
Government of the United States and the Govern-
ment of the Republic of Palau. 
SEC. 10. CLARIFICATION OF TAX-FREE STATUS OF TRUST 
FUNDS. 
In the U.S.–RMI Compact, the U.S.–FSM Compact, 
and their respective trust fund subsidiary agreements, for 
the purposes of taxation by the United States or its sub-
sidiary jurisdictions, the term ‘‘State’’ means ‘‘State, ter-
ritory, or the District of Columbia’’. 
SEC. 11. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR-
EIGN RECIPIENTS. 
(a) TRANSFERS BY GRANT.—The President is au-
thorized to transfer vessels to foreign countries on a grant
basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j), as follows: 
(1) TURKEY.—To the Government of Turkey— 
(A) the OLIVER HAZARD PERRY class 
guided missile frigates GEORGE PHILIP 
(FFG–12) and SIDES (FFG–14); and 
(B) the OSPREY class minehunter coastal 
ship BLACKHAWK (MHC–58). 
(2) LITHUANIA.—To the Government of Lith-
uania, the OSPREY class minehunter coastal ships 
CORMORANT 
(MHC–57) 
and 
KINGFISHER 
(MHC–56). 
(b) TRANSFERS BY SALE.—The President is author-
ized to transfer vessels to foreign recipients on a sale basis 
under section 21 of the Arms Export Control Act (22 
U.S.C. 2761), as follows: 
(1) TAIWAN.—To the Taipei Economic and 
Cultural Representative Office in the United States 
(which is the Taiwan instrumentality designated 
pursuant to section 10(a) of the Taiwan Relations 
Act (22 U.S.C. 3309(a))), the OSPREY class 
minehunter coastal ships ORIOLE (MHC–55) and 
FALCON (MHC–59).
(2) TURKEY.—To the Government of Turkey, 
the 
OSPREY 
class 
minehunter 
coastal 
ship 
SHRIKE (MHC–62). 
(c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 
of a vessel transferred to a recipient on a grant basis pur-
suant to authority provided by subsection (a) shall not be 
counted against the aggregate value of excess defense arti-
cles transferred in any fiscal year under section 516(g) 
of the Foreign Assistance Act of 1961. 
(d) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient. 
(e) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the 
transfer of a vessel under this section, that the recipient 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed before the vessel 
joins the naval forces of the recipient performed at a ship-
yard located in the United States, including a United 
States Navy shipyard. 
(f) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end
of the 2-year period beginning on the date of the enact-
ment of this Act. 
Passed the House of Representatives November 13, 
2007. 
Attest: 
Clerk.
110TH CONGRESS 
1ST SESSION 
H. R. 2705 
AN ACT 
To amend the Compact of Free Association 
Amendments Act of 2003, and for other purposes.