89 STAT. 60
26 USC 956. "Less developed country.
26 USC 955.
PUBLIC LAW 94-12—MAR. 29, 1975 such aircraft or vessels, or from the sale or exchange of such aircraft or vessels, and " ( i i) dividends and interest received from foreign corporations which are less developed country corporations within the meaning of this paragraph and 10 percent or more of the total combined voting power of all classes of stock of which are owned by the foreign corporation, and gain from the sale or exchange of stock or obligations of foreign corporations which are such less developed count r y corporations, and " (B) 80 percent or more of the assets of which on each day of the taxable year consists of (i) assets used, or held for use, for or in connection with the production of income described in subparagraph (A), and (ii) property described in section 956(b)(2). " (5) Xhe term 'less developed country' means (in respect to any foreign corporation) any foreign country (other than an area within the Sino-Soviet bloc) or any possession of the United States with respect to which, on the first day of the taxable year, there is in effect an Executive order by the President of the United States designating such country or possession as an economically less developed country for purposes of this section. For purposes of the preceding sentence, an overseas territory, department, province, or possession may be treated as a separate country. No designation shall be made under this paragraph with respect to— Australia Luxembourg Austria Monaco Belgium Netherlands Canada New Zealand Denmark Norway France Union of South Africa Germany (Federal ReSan Marino public) Sweden Hong Kong Switzerland Italy United K i n g d o m Japan Liechtenstein iifter the President has designated any foreign country or any possession of the United States as an economically less developed country for purposes of this section, he shall not terminate such designation (either by issuing an Executive order for that purpose or by issuing an Executive order under the first sentence of this paragraph which has the effect of terminating such designation) unless, at least 30 days prior to such termination, he has notified the Senate and the House of Representatives of his intention to terminate such designation. Any designation in effect on March 26, 1975, under section 955(c)(3) (as in effect before the enactment of the T a x Reduction Act of 1975) shall be treated as made under this paragraph. " (7) CLERICAL AMENDMENT.—The table of sections for subpart F of part III of subchapter N of chapter 1 is amended by striking out the item relating to section 955. (d) S H I P P I N G PROFITS OF CONTROLLED FOREIGN CORPORATION To B E TAXED CURRENTLY E X C E P T TO E X T E N T REINVESTED I N S H I P P I N G OPERATIONS— (1) S H I P P I N G PROFITS INCLUDED I N GROSS INCOME OF UNITED STATES SHAREHOLDERS.—
26 USC 954.
(A) Section 954(a) (relating to foreign base company income) is amended by striking out " and " at the end of para-
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