it's the recursive clause, that applies gplv2 to derivative works. the prescriptive part is "must cause … to be licensed", and nothing else. what is says is that paraphrasing "the work based on program must be licensed at no additional fee under similar terms as the original program". this part is self-contained and doesn't say anything about e.g. copy and distribution.
the copy and distribution clause is only part 3, where you "may" copy and distribute the program (or its derivative work, as per part 2) provided that you either "accompany it with complete … source code" or some means to get the source code from you on demand.
I can't claim this just from reading the license, because I'm not a lawyer, but in rms's reading and in Lessing's reading, the combination of part 1 and part 2 mean, paraphrasing, "if you make derivative work, compile it, and distributed it, you must also provide source code".
the copy and distribution clause is only part 3, where you "may" copy and distribute the program (or its derivative work, as per part 2) provided that you either "accompany it with complete … source code" or some means to get the source code from you on demand.
I can't claim this just from reading the license, because I'm not a lawyer, but in rms's reading and in Lessing's reading, the combination of part 1 and part 2 mean, paraphrasing, "if you make derivative work, compile it, and distributed it, you must also provide source code".