[Senate Treaty Document 104-15]
[From the U.S. Government Publishing Office]



   104th Congress 1st            SENATE              Treaty Doc.
         Session
                                                        104-15
_______________________________________________________________________



                                     



 
    EXCHANGE OF NOTES RELATING TO THE TAX CONVENTION WITH KAZAKHSTAN

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

AN EXCHANGE OF NOTES DATED AT WASHINGTON JULY 10, 1995, RELATING TO THE 
   CONVENTION (SEE TREATY DOC. 103-33) BETWEEN THE GOVERNMENT OF THE 
    UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF 
 KAZAKHSTAN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF 
 FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL, TOGETHER 
      WITH RELATED PROTOCOL, SIGNED AT ALMATY ON OCTOBER 24, 1993




August 3, 1995.--Treaty was read the first time and, together with the 
accompanying papers, referred to the Committee on Federal Relations and 
            ordered to be printed for the use of the Senate
                         LETTER OF TRANSMITTAL

                              ----------                              

                                   The White House, August 3, 1995.
To the Senate of the United States:
    I transmit herewith an exchange of notes dated at 
Washington July 10, 1995, for Senate advice and consent to 
ratification in connection with the Senate's consideration of 
the Convention Between the Government of the United States of 
America and the Government of the Republic of Kazakhstan for 
the Avoidance of Double Taxation and the Prevention of Fiscal 
Evasion with Respect to Taxes on Income and Capital, together 
with a related Protocol, signed at Almaty on October 24, 1993, 
and exchanges of notes (the ``Taxation Convention''). Also 
transmitted for the information of the Senate is the report of 
the Department of State with respect to the exchange of notes.
    This exchange of notes addresses the interaction between 
the Taxation Convention and other treaties that have tax 
provisions, including in particular the General Agreement on 
Trade in Services (``GATS''), annexed to the Agreement 
Establishing the World Trade Organization, done at Marrakesh 
April 15, 1994.
    I recommend that the Senate give favorable consideration to 
this exchange of notes and give its advice and consent to 
ratification in connection with the Taxation Convention.

                                                William J. Clinton.
                          LETTER OF SUBMITTAL

                              ----------                              

                                       Department of State,
                                         Washington, July 14, 1995.
The President,
The White House.
    The President: I have the honor to submit to you an 
exchange of notes, dated at Washington July 10, 1995, with a 
view to transmission of these notes to the Senate for advice 
and consent to ratification in connection with the Senate's 
consideration of the Convention Between the Government of the 
United States of America and the Government of the Republic of 
Kazakhstan for the Avoidance of Double Taxation and the 
Prevention of Fiscal Evasion with Respect to Taxes on Income 
and Capital, together with a related Protocol, signed at Almaty 
on October 24, 1993, and exchanges of notes (the ``Taxation 
Convention'').
    This exchange of notes addresses the interaction between 
the Taxation Convention and other treaties and agreements that 
have provisions affecting taxes.
    The United States is a party to the General Agreement on 
Trade in Services (``GATS''), annexed to the Agreement 
Establishing the World Trade Organization, done at Marrakesh 
April 15, 1994. GATS entered into force on January 1, 1995. 
Although the United States is a party to GATS, the Government 
of Kazakhstan is not yet a party. The exchange of notes ensures 
first that, if Kazakhstan accedes to the GATS and GATS 
obligations become applicable between the United States and 
Kazakhstan, the dispute resolution mechanisms of the Taxation 
Convention would govern national treatment disputes regarding 
taxation measures. The exchange of notes further provides that 
the non-discrimination provisions of the Taxation Convention, 
rather than the national or most-favored-nation treatment 
obligations of any other agreement (except for the General 
Agreement on Tariffs and Trade, if it applies between the 
United States and Kazakhstan, and the Agreement on Trade 
Relations Between the United States and Kazakhstan, signed on 
May 19, 1992) will apply to taxation measures except those 
outside the scope of the Taxation Convention.
    Provisions similar to those in this exchange of notes are 
included in the taxation conventions between the United States 
and Portugal, Sweden, and France, which have been transmitted 
to the Senate.
    The Department of Treasury and the Department of State 
cooperated in the negotiation of the Convention and the most 
recent exchange of notes. The notes have the full approval of 
both Departments.
    Respectfully submitted.

                                                Warren Christopher.