    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book II)]
    [October 22, 1993]
    [Pages 1807-1808]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the Protocol to the Netherlands-
    United States Taxation Convention
    October 22, 1993

    To the Senate of the United States:
        I transmit herewith for Senate advice and consent to ratification
    the Protocol Amending the Convention Between the United States of
    America and the Kingdom of the Netherlands for the Avoidance of Double
    Taxation and the

    [[Page 1808]]

    Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at
    Washington on October 13, 1993. A related exchange of notes is enclosed
    for the information of the Senate. Also transmitted for the information
    of the Senate is the report of the Department of State with respect to
    the Protocol.
        The Protocol will prohibit a treaty abuse otherwise permitted by the
    Convention, which was previously transmitted to the Senate. The Protocol
    will prevent a Dutch investor in the United States from evading
    virtually all income taxes in both the United States and the Netherlands
    through a permanent establishment in a third, low-income jurisdiction.
    The Protocol and the Convention are intended to reduce the distortions
    of both double taxation and tax evasion. The two agreements will
    modernize tax relations between the United States and the Netherlands
    and will facilitate greater bilateral private sector investment.
        I recommend that the Senate give early and favorable consideration
    to the Protocol, together with the Convention, and give its advice and
    consent to ratification.

                                                          William J. Clinton

    The White House,
    October 22, 1993.