[Congressional Record Volume 143, Number 149 (Thursday, October 30, 1997)]
[Senate]
[Pages S11447-S11448]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                    EXECUTIVE REPORTS OF COMMITTEES

  The following executive reports of committees were submitted:

       By Mr. HELMS, from the Committee on Foreign Relations:
       Treaty Doc. 104-30 Taxation Agreement With Turkey (Exec. 
     Rept. 105-6)

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Agreement between the Government of the 
     United States of America and the Government of the Republic 
     of Turkey for the Avoidance of Double Taxation and the 
     Prevention of Fiscal Evasion with Respect to Taxes on Income, 
     together with a related Protocol, signed at Washington on 
     March 28, 1996 (Treaty Doc. 104-30) subject to the 
     declaration of subsection (a), and the proviso of subsection 
     (b).
       (a) Declaration.--The Senate's advice and consent is 
     subject to the following declaration, which shall be binding 
     on the President:
       (1) Treaty interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (b) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President:
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 104-31 Taxation Convention With Austria (Exec. 
     Rept. 105-7).

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the United States of 
     America and the Republic of Austria for the Avoidance of 
     Double Taxation and the Prevention of Fiscal Evasion with 
     Respect to Taxes on Income, signed at Vienna on May 31, 1996 
     (Treaty Doc. 104-31), subject to the understanding of 
     subsection (a), the declaration of subsection (b), and the 
     proviso of subsection (c).
       (a) Understanding.--The Senate's advice and consent is 
     subject to the following understanding, which shall be 
     included in the instrument of ratification, and shall be 
     binding on the President:
       (1) OECD commentary.--Provisions of the Convention that 
     correspond to provisions of the Organization for Economic 
     Cooperation and Development (OECD) Model Tax Convention on 
     Income and on Capital generally shall be expected to have the 
     same meaning as expressed in the OECD Commentary thereon. The 
     United States understands, however, that the foregoing will 
     not apply with respect to any reservations or observations it 
     enters to the OECD Model or its Commentary and that it may 
     enter such a reservation or observation at any time.
       (b) Declarations.--The Senate's advice and consent is 
     subject to the following two declarations, which shall be 
     binding on the President:
       (1) Real estate investment trusts.--The United States shall 
     use its best efforts to negotiate with the Republic of 
     Austria a protocol amending the Convention to provide for the 
     application of subparagraph (b) of paragraph 2 of Article 10 
     of the Convention to dividends paid by a Real Estate 
     Investment Trust in cases where (i) the beneficial owner of 
     the dividends beneficially holds an interest of 5 percent or 
     less in each class of the stock of the Real Estate Investment 
     Trust and the dividends are paid with respect to a class of 
     stock of the Real Estate Investment Trust that is publicly 
     traded or (ii) the beneficial owner of the dividends 
     beneficially holds an interest of 10 percent or less in the 
     Real Estate Investment Trust and the Real Estate Investment 
     Trust is diversified.
       (2) Treaty interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (c) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President:
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 104-33 Taxation Convention With Luxembourg 
     (Exec. Rept. 105-8)

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved, (two-thirds of the Senators concurring therein), 
     That the Senate advise and consent to the ratification of the 
     Convention between the Government of the United States of 
     America and the Government of the Grand Duchy of Luxembourg 
     for the Avoidance of Double Taxation and the Prevention of 
     Fiscal Evasion with Respect to Taxes on Income and Capital, 
     signed at Luxembourg on April 3, 1996 (Treaty Doc. 104-33), 
     subject to the reservation of subsection (a), the 
     declarations of subsection (b), and the proviso of subsection 
     (c).
       (a) Reservation.--The Senate's advice and consent is 
     subject to the following reservation, which shall be included 
     in the instrument of ratification, and shall be binding on 
     the President:
       (1) Real Estate Investment Trusts.--Subparagraph (a)(ii) of 
     paragraph 2 of Article 10 of the Convention shall apply to 
     dividends paid by a Real Estate Investment Trust in cases 
     where (i) the beneficial owner of the dividends beneficially 
     holds an interest of 5 percent or less in each class of the 
     stock of the Real Estate Investment Trust and the dividends 
     are paid with respect to a class of stock of the Real Estate 
     Investment Trust that is publicly traded, (ii) the beneficial 
     owner of the dividends beneficially holds an interest of 10 
     percent or less in the Real Estate Investment Trust and the 
     Real Estate Investment Trust is diversified, or (iii) the 
     beneficial owner of the dividends beneficially held an 
     interest in the Real Estate Investment Trust as of June 30, 
     1997, the dividends are paid with respect to such interest, 
     and the Real Estate Investment Trust is diversified (provided 
     that such provision shall not apply to dividends paid after 
     December 31, 1999 unless the Real Estate Investment Trust is 
     publicly traded on December 31, 1999 and thereafter).
       (b) Declarations.--The Senate's advice and consent is 
     subject to the following two declarations, which shall be 
     binding on the President:
       (1) Simultaneous exchange.--The United States shall not 
     exchange the instruments of ratification of this Convention 
     with the Government of the Grand Duchy of Luxembourg until 
     such time as it exchanges the instruments of ratification 
     with respect to the Treaty Between the Government of the 
     United States of America and the Government of the Grand 
     Duchy of Luxembourg on Mutual Legal Assistance in Criminal 
     Matters, signed at Washington on March 13, 1997 (Treaty Doc. 
     105-11).
       (2) Treaty interpretation.--The Senate affirms the 
     applicability of all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (c) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President:
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 105-2 Taxation Convention With Thailand (Exec. 
     Rept. 105-9)

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the Government of the 
     United States of America and the Government of the Kingdom of 
     Thailand for the Avoidance of Double Taxation and the 
     Prevention of Fiscal Evasion with Respect to Taxes on Income, 
     signed at Bangkok, November 26, 1996 (Treaty Doc. 105-2), 
     subject to the declaration of subsection (a); and the proviso 
     of subsection (b).
       (a) Declaration.--The Senate's advice and consent is 
     subject to the following declaration, which shall be binding 
     on the President:
       (1) Treaty interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (b) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President:
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 105-8 Tax Convention With Switzerland (Exec. 
     Rept. 105-10)

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention Between the United States of 
     America and the Swiss Confederation for the Avoidance of 
     Double Taxation with Respect to Taxes on Income, signed at 
     Washington,

[[Page S11448]]

     October 2, 1996, together with a Protocol to the Convention 
     (Treaty Doc. 105-8), subject to the declarations of 
     subsection (a), and the proviso of subsection (b).
       (a) Declarations.--The Senate's advice and consent is 
     subject to the following two declarations, which shall be 
     binding on the President:
       (1) Real estate investment trusts.--The United States shall 
     use its best efforts to negotiate with the Swiss 
     Confederation a protocol amending the Convention to provide 
     for the application of subparagraph (b) of paragraph 2 of 
     Article 10 of the Convention to dividends paid by a Real 
     Estate Investment Trust in cases where (i) the beneficial 
     owner of the dividends beneficially holds an interest of 5 
     percent or less in each class of the stock of the Real Estate 
     Investment Trust and the dividends are paid with respect to a 
     class of stock of the Real Estate Investment Trust that is 
     publicly traded or (ii) the beneficial owner of the dividends 
     beneficially holds an interest of 10 percent or less in the 
     Real Estate Investment Trust and the Real Estate Investment 
     Trust is diversified.
       (2) Treaty interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (b) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President:
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 105-9 Tax Convention With South Africa (Exec. 
     Rept. 105-11)

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the United States of 
     America and the Republic of South Africa for the Avoidance of 
     Double Taxation and the Prevention of Fiscal Evasion with 
     Respect to Taxes on Income and Capital Gains, signed at Cape 
     Town February 17, 1997 (Treaty Doc. 105-9), subject to the 
     declaration of subsection (a), and the proviso of subsection 
     (b).
       (a) Declaration.--The Senate's advice and consent is 
     subject to the following declaration, which shall be binding 
     on the President:
       (1) Treaty interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (b) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President.
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 105-29 Protocol Amending Tax Convention With 
     Canada (Exec. Rept. 105-12)

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Protocol Amending the Convention Between 
     the United States of America and Canada with Respect to Taxes 
     on Income and on Capital Signed at Washington on September 
     26, 1980 as Amended by the Protocols Signed on June 14, 1983, 
     March 28, 1984 and March 17, 1995, signed at Ottawa on July 
     29, 1997 (Treaty Doc. 105-29) subject to the declaration of 
     subsection (a), and the proviso of subsection (b).
       (a) Declaration.--The Senate's advice and consent is 
     subject to the following declaration, which shall be binding 
     on the President:
       (1) Treaty Interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (b) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President.
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.
                                  ____

       Treaty Doc. 105-31 Tax Convention With Ireland (Exec. Rept. 
     105-13).

   Text of the Committee Recommended Resolution of Advice and Consent

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the Government of the 
     United States of America and the Government of Ireland for 
     the Avoidance of Double Taxation and the Prevention of Fiscal 
     Evasion with Respect to Taxes on Income and Capital gains, 
     signed at Dublin on July 28, 1997, together with a Protocol 
     and exchange of notes done on the same date (Treaty Doc. 105-
     31), subject to the understanding of subsection (a), the 
     declarations of subsection (b), and the proviso of subsection 
     (c).
       (a) Understanding.--The Senate's advice and consent is 
     subject to the following understanding, which shall be 
     included in the instrument of ratification, and shall be 
     binding on the President:
       (1) Exchange of information.--The United States competent 
     authority follows a practice of comity with respect to 
     exchanges of information under all tax conventions.
       (b) Declarations.--The Senate's advice and consent is 
     subject to the following two declarations, which shall be 
     binding on the President:
       (1) Real estate investment trusts.--The United States shall 
     use its best efforts to negotiate with the Government of 
     Ireland a protocol amending the Convention to provide for the 
     application of subparagraph (b) of paragraph 2 of Article 10 
     of the Convention to dividends paid by a Real Estate 
     Investment Trust in cases where (i) the beneficial owner of 
     the dividends beneficially holds an interest of 5 percent or 
     less in each class of the stock of the Real Estate Investment 
     Trust and the dividends are paid with respect to a class of 
     stock of the Real Estate Investment Trust that is publicly 
     traded or (ii) the beneficial owner of the dividends 
     beneficially holds an interest of 10 percent or less in the 
     Real Estate Investment Trust and the Real Estate Investment 
     Trust is diversified.
       (2) Treaty interpretation.--The Senate affirms the 
     applicability to all treaties of the constitutionally based 
     principles of treaty interpretation set forth in Condition 
     (1) of the resolution of ratification of the INF Treaty, 
     approved by the Senate on May 27, 1988, and Condition (8) of 
     the resolution of ratification of the Document Agreed Among 
     the States Parties to the Treaty on Conventional Armed Forces 
     in Europe, approved by the Senate on May 14, 1997.
       (c) Proviso.--The resolution of ratification is subject to 
     the following proviso, which shall be binding on the 
     President:
       (1) Supremacy of the constitution.--Nothing in the Treaty 
     requires or authorizes legislation or other action by the 
     United States of America that is prohibited by the 
     Constitution of the United States as interpreted by the 
     United States.

                          ____________________