#### Nr. I
DEPARTEMENT OF STATE
WASHINGTON
Excellency,
I have the honor to refer to the Convention signed today 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 and to propose
on behalf of the Government of the United States of America the following:
Both Governments confirm that their respective countries recognize the principle that
the Convention, once in force, is binding upon both parties and muest be performed
by them in good faith and in accordance with generally accepted rules of international
law. The Governments further confirm their recognition that they should avoid enactment
or interpretation of legislation or other domestic measures that would prevent the
performance of their obligations under the Convention.
On the other hand, both governments recognize the possibility of significant changes
in the national taxation laws which may affect implementation of the Convention. The
Governments agree in principle that in such a case an appropriate amendment of the
Convention might be necessary. Whether and to the extent to which such an amendment
is necessary and acceptable will be determined in consultation and negotiation between
the two Governments.
Furthermore, the Government of the United States gives its assurances to the Government
of The Netherlands, that, in the event a state or local government in the United States
seeks to impose a tax on the income of airline or shipping companies resident in The
Netherlands in circumstances where the Convention would preclude a Federal income
tax on that income, the United States Government will contact the state or local government
seeking to impose the tax in an effort to presuade that government to refrain from
imposing the tax.
Finally, in the course of the negotiations leading to the conclusion of the Convention
signed today, the negotiators developed and agreed upon a memorandum of understanding
intended to give guidance both to the taxpayers and the tax authorities of our two
countries in interpreting various provisions contained in the Convention. It is my
Government's view that as we both gain experience in administrering the Convention
competent authorities may in the context of a mutual agreement procedure under [Article 29](#Verdrag_2_Verdragtekst_1_HoofdstukV_Artikel29) of the Convention develop and publish amendments to the understandings and interpretations
laid down in the attached memorandum of understanding.
If the above-mentioned understandings and the interpretation of the various provisions
laid down in the attached memorandum of understanding meet with the approval of the
Government of the Kingdom of the Netherlands, this Note and your Note in reply thereto
will consitute a common and binding understanding by our Governments of the Convention
and of the contents and the role of the memorandum of understanding relating to the
Convention.
Accept, Your Excellency, the expression of my highest consideration.
For the Secretary of State:
(w.g.) EUGENE J. MCALLISTER
His Excellency
Hans Meesman
Ambassador of the Kingdom of the Netherlands.
#### Nr. II
Washington D.C., December 18, 1992
Mr.Secretary
I have the honour to confirm receipt of your Note of today's date which reads as follows:
[Red: (zoals in Nr. I)]
I have the honour to inform you, that my Government agrees to the above.
Accept, Your Excellency, the expression of my highest consideration.
(sd.) J. H. MEESMAN
Hans Meesman
Ambassador of the Kingdom
of the Netherlands
The Honorable Lawrence S. Eagleburger
Secretary of State of
the United States of America