    [Public Papers of the Presidents of the United States: George W. Bush (2006, Book II)]
    [September 29, 2006]
    [Page 1739]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the Protocol Amending the Germany-
    United States Taxation Convention
    September 29, 2006

    To the Senate of the United States:
        I transmit herewith, for Senate advice and consent to ratification,
    a Protocol Amending the Convention Between the United States of America
    and the Federal Republic of Germany for the Avoidance of Double Taxation
    and the Prevention of Fiscal Evasion with Respect to Taxes on Income and
    Capital and to Certain Other Taxes, Signed on August 29, 1989, signed at
    Berlin June 1, 2006 (the ``Protocol''), along with a related Joint
    Declaration. Also transmitted for the information of the Senate is the
    report of the Department of State with respect to the Protocol.
        The Protocol eliminates the withholding tax on certain cross-border
    dividend payments. Like a number of recent U.S. tax agreements, the
    proposed Protocol provides for the elimination of the withholding tax on
    dividends arising from certain direct investments and cross-border
    dividend payments to pension funds. The Protocol also provides for
    mandatory arbitration of certain cases before the competent authorities.
    This provision is the first of its kind in a U.S. tax treaty. In
    addition, the Protocol also modernizes the Convention to bring it into
    closer conformity with current U.S. tax-treaty policy, including
    strengthening the treaty's provisions preventing so-called treaty
    shopping.
        I recommend that the Senate give early and favorable consideration
    to the Protocol, along with the Joint Declaration and give its advice
    and consent to ratification.

                                                              George W. Bush

    The White House,

    September 29, 2006.

    Note: This message was released by the Office of the Press Secretary on
    October 2.