An Act to provide for the settlement of claims of certain residents of the Trust Territory of the Pacific Islands
PL 88-485 (H.R.1988), enacted 08/22/1964

598 
PUBLIC LAW 88-485-AUG. 22, 1964 
[78 STAT. 
Personal hold-
ing company in-
come. 
Rents. 
Ante, p. 81. 
26 u s e 543. 
SEC. 3. (a) Section 543(a) (2) of the Internal Revenue Code of 1954 
(relating to rents) is amended by adding at the end thereof the fol-
lowing new sentence: "For purposes of applying this paragraph, 
royalties received for the use of, or for the privilege of using, a patent, 
invention, model, or d e s i ^ (whether or not patented), secret formula 
or process, or any other similar property right shall be treated as rent, 
if such property right is also used by the corporation receiving such 
royalties in the manufacture or production of tangible personal prop-
erty held for lease to customers, and if the amount (computed without 
regard to this sentence) constituting rent from such leases to customers 
meets the requirements of subparagraph (A)." 
(b) The amendment made by siibsection (a) shall apply to taxable 
years beginning after December 31,1963. 
Approved August 22, 1964. 
August 22, 1964 
[H. R. 1988] 
Public Law 88-485 
AN ACT 
To provide for the settlement of claims of certain residents of the Trust Territory 
of the Pacific Islands, 
Rongelap Atoll. 
Radiation vic-
tims, compensa-
tion. 
Appropri at io n; 
conditions for 
payment. 
Attorney fees. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Congress 
hereby assumes compassionate responsibility to compensate inhabit-
ants in the Rongelap Atoll, in the Trust Territory of the Pacific 
Islands, for radiation exposures sustained by them as a result of a 
thermonuclear detonation at Bikini Atoll in the Marshall Islands on 
March 1,1954. 
SEC. 2. There is authorized to be appropriated for such purpose out 
of the Treasury of the United States the sum of $950,000 to be 
expended by the Secretary of the Interior (hereinafter referred to as 
the "Secretary") in the manner hereinafter provided. After deduct-
ing the amount provided for in section 5 hereof, the Secretary shall 
pay the remainder in equal amounts to each of the affected inhabit-
ants of Rongelap, except that (a) with respect to each such inhabitant 
who has died before receipt of such payment, the Secretary shall pay 
such sum to the heirs or legatees of such inhabitant, and (b) with 
respect to any such inhabitant who is less than twenty-one years of 
age or who has been adjudged incompetent or insane, payment shall 
be made, in the discretion of the Secretary, to a parent, relative, other 
person, or institution for his benefit. 
SEC. 3. The Secretary shall give advice concerning prudent financial 
management to each person receiving a payment pursuant to this Act, 
to the end that each such person will have information as to methods of 
conserving his funds and as to suitable objects for which such funds 
may be expended. 
SEC. 4. A payment made under the provisions of this Act shall be 
in full settlement and discharge of all claims against the United States 
arising out of the thermonuclear detonation on March 1,1954. 
SEC. 5. The Secretary is authorized to pay reasonable attorney fees 
for legal services rendered on behalf of the people of Rongelap prior 
to the date of enactment of this Act. 
Such fees shall be paid out of 
the funds authorized to be appropriated in section 2 of this Act, but 
the total of such fees paid shall not exceed 5 per centum of the appro-
priated funds. 
SEC. 6. The decisions of the Secretary in carrying out the provisions 
of this Act shall be final and not subject to review. 
Approved August 22, 1964.