    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book II)]
    [November 14, 2002]
    [Pages 2075-2076]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the United Kingdom-United States
    Taxation Convention
    November 14, 2002

    To the Senate of the United States:
        I transmit herewith, for Senate advice and consent to ratification,
    the Convention Between the Government of the United States of America
    and the Government of the United Kingdom of Great Britain and Northern
    Ireland for the Avoidance of Double Taxation and the Prevention of
    Fiscal Evasion with Respect to Taxes on Income and on Capital Gains,
    signed at London on July 24, 2001, together with an exchange of notes,
    as amended by the Protocol signed at Washington on July 19, 2002 (the
    ``Convention''). I also transmit the report of the Department of State
    concerning the Convention.
        The proposed Convention transmitted herewith would replace the
    Convention Between the Government of the United States of America and
    the Government of the United Kingdom of Great Britain and Northern
    Ireland for the Avoidance of Double Taxation and the Prevention of
    Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed
    at London on December 31, 1975, as modified by a subsequent agreement
    and protocols.
        This Convention, which is similar to tax treaties between the United
    States and other developed nations, provides for maximum rates of tax to
    be applied to various types of income, protection from double taxation
    of income, and for the exchange of information. The Convention also
    contains rules making its benefits unavailable to persons who are
    engaged in treaty shopping. The proposed Convention is the first U.S.
    income tax convention to provide a zero rate of withholding on certain
    direct investment dividends.

    [[Page 2076]]

        I recommend that the Senate give early and favorable consideration
    to this Convention, and that the Senate give its advice and consent to
    ratification.

                                                              George W. Bush

     The White House,

     November 14, 2002.