    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book II)]
    [July 16, 2004]
    [Pages 1362-1363]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting a Protocol Amending the Netherlands-
    United States Convention on Taxation
    July 16, 2004

    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 Prevention of Fiscal Evasion with Respect to Taxes on
    Income, signed at Washington, D.C., on March 8, 2004. Transmitted for
    the Senate's information is an exchange of notes with an attached
    Understanding, which provides clarification with respect to the
    application of the Convention, as amended, in specific cases. Also
    transmitted for the information of the Senate is the report of the
    Department of State with respect to the Protocol.
        The Protocol would bring the existing Convention into closer
    conformity with current U.S. tax treaty policy. As modified by the
    Protocol, the Convention would be similar to tax treaties between the
    United States and other developed nations. The Protocol was concluded in
    recognition of the importance of the United States' economic relations
    with the Netherlands.
        The Protocol would modify the treatment of certain cross-border
    dividend payments and would modernize the Convention's anti-treaty-
    shopping provisions. The Protocol also would liberalize provisions in
    the existing Convention regarding the mutual recognition of each
    country's pension plans. Other provisions in the Protocol update the
    Convention to take account of changes in law in the two countries over
    the last 10 years. The exchange of notes with an attached Understanding
    provides guidance to taxpayers and each government regarding the
    intended interpretation of certain provisions of the existing
    Convention, as amended.
        I recommend that the Senate give early and favorable consideration
    to this Protocol,

    [[Page 1363]]

    and that the Senate give its advice and consent to ratification.

                                                              George W. Bush

     The White House,

     July 16, 2004.