ARTICLE 31

Termination

(1) This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention at any time after 5 years from the date on which this

Convention enters into force provided that at least 6 months prior notice of termination has been given through diplomatic channels. In such event the Convention shall cease to have effect as respects income of calendar years or taxable years beginning (or, in the case of taxes payable at the source, payments made) on or after January 1 next following the expiration of the 6-month period.

(2) Notwithstanding the provision of paragraph (1), and upon prior notice to be given through diplomatic channels, the provisions of Article 17 (Social Security Payments) may be terminated by either Contracting State at any time after this Convention enters into force.

FOR THE PRESIDENT OF THE FOR THE KINGDOM UNITED STATES OF AMERICA OF BELGIUM (s) John S. D. Eisenhower (s) Pierre Harmel

PROTOCOL

Supplementary Protocol Modifying and Supplementing the Convention of July 9, 1970 with an

Exchange of Notes Signed at Washington December 31, 1987; Transmitted by the President of the United States of America to the Senate February 29, 1988

(Treaty Doc. No. 100-15, 100th Cong., 2d Sess.); Reported Favorably by the Senate Committee on Foreign Relations September 22, 1988 (S. Ex.

Rept. No.100-24, 100th Cong., 2d Sess.); Advice and Consent to Ratification by the Senate October 22, 1988;

Ratified by the President December 20, 1988;

Ratified by Belgium June 19, 1989; Ratifications Exchanged at Brussels July 19, 1989;

Proclaimed by the President September 6, 1989;

Entered into Force August 3, 1989 .

SUPPLEMENTARY PROTOCOL TO THE 1970 TAX

CONVENTION WITH BELGIUM

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

THE SUPPLEMENTARY PROTOCOL, TOGETHER WITH A RELATED EXCHANGE OF

NOTES, SIGNED AT WASHINGTON ON DECEMBER 31, 1987, MODIFYING AND

SUPPLEMENTING THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA

AND THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME,

SIGNED AT BRUSSELS ON JULY 9, 1970

LETTER OF SUBMITTAL (PROTOCOL)

DEPARTMENT OF STATE, Washington, February 2, 1988.

The PRESIDENT, The White House.

THE PRESIDENT. I have the honor to submit to you, with a view to its transmission to the Senate for advice and consent to ratification, a Supplementary Protocol Modifying and Supplementing the Convention between the United States of America and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, together with a related exchange of notes. The Supplementary Protocol and the exchange of notes were signed at Washington on December 31, 1987.

The Convention needs to be modified to reflect changes in the tax laws and treaty policies of the United States and Belgium since it was concluded in 1970. Pending the successful conclusion of a comprehensive new convention, Department of the Treasury negotiators have concluded a limited Protocol addressing an issue of immediate concern to United States investors.

The Protocol will reduce the tax at source on direct investment dividends from 15 percent to 5 percent, effective January 1,1988. This will be beneficial to many United States businesses which, especially after the Tax Reform Act of 1986, have large excess foreign tax credits with respect to their foreign income. The Protocol will also provide rules to ensure that the reduced rates of tax provided in the Convention, as amended by the Protocol, are enjoyed only by residents of the two countries and do not become the object of "treaty shopping" by others.

The exchange of notes confirms that the French and Dutch texts of the new Article 12A incorporate the meaning of the English language term "beneficial interest."

A technical memorandum explaining in detail the provisions of the Supplementary Protocol is being prepared by the Department of the Treasury and will be submitted separately to the Senate Committee on Foreign Relations.

The Department of the Treasury, with the cooperation of the Department of State, was primarily responsible for the negotiation of the Supplementary Protocol. It has the approval of both Departments.

Respectfully submitted,

GEORGE P. SHULTZ.

LETTER OF TRANSMITTAL (PROTOCOL)

THE WHITE HOUSE, February 29, 1988.

To the Senate of the United States:

I transmit herewith, for Senate advice and consent to ratification, the Supplementary Protocol Modifying and Supplementing the Convention between the United States of America and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, together with a related exchange of notes. The Supplementary Protocol and the exchange of notes were signed at Washington on December 31, 1987. I also transmit for the information of the Senate the report of the Department of State with respect to the Protocol.

Pending the successful conclusion of a comprehensive new income tax convention, the Supplementary Protocol will make certain improvements in the existing convention intended to promote the development of economic relations between the United States and Belgium.

It is most desirable that this Protocol be considered by the Senate as soon as possible and that the Senate give advice and consent to ratification.

RONALD REAGAN.

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

CONSIDERING THAT:

The Supplementary Protocol Modifying and Supplementing the Convention Between the United States of America and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, together with a related exchange of notes, was signed at Washington on December 31, 1987, the text of which is hereto annexed;

The Senate of the United States of America by its resolution of October 22, 1988, two-thirds of the Senators present concurring therein, gave its advice and consent to ratification, subject to the understandings that:

(1) The Treasury Department will effect the negotiation of a new Convention in an expeditious

manner with the objective of modifying the tax rate on dividends specified in paragraph 2 of Article 10 (Dividends) to deny inappropriate relief from taxation at source on dividends paid by Regulated Investment Companies, Real Estate Investment Trusts, and any other U.S. corporations that essentially receive conduit treatment for U.S. income tax purposes; and

(2) The Treasury Department will effect the negotiation of a new Convention in an expeditious manner with the objective of coordinating policy as revised by the Tax Reform Act of 1986.

The Supplementary Protocol, with a related exchange of notes, subject to the said understandings, was ratified by the President of the United States of America on December 20, 1988, in pursuance of the advice and consent of the Senate;

It is provided in Article 4 of the Supplementary Protocol that the Supplementary Protocol shall enter into force on the fifteenth day after the date of the exchange of the instruments of ratification;

The instruments of ratification of the Supplementary Protocol were exchanged at Brussels on July 19, 1989, and accordingly, the Supplementary Protocol and the related exchange of notes, subject to the said understandings, entered into force on August 3, 1989.

NOW, THEREFORE, I, George Bush, President of the United States of America, proclaim and make public the Supplementary Protocol, with an exchange of notes, subject to the said understandings, to the end that it be observed and fulfilled with good faith on and after August 3, 1989, by the United States of America and by the citizens of the United States of America and all other persons subject to the jurisdiction thereof.

IN TESTIMONY WHEREOF, I have signed this proclamation and caused the Seal of the United States of America to be affixed.

DONE at the city of Washington this sixth day of September in the year of our Lord one thousand nine hundred eighty-nine and of the Independence of the United States of America the two hundred fourteenth.

By the President:

(s) George Bush

Secretary of State:

(s) James A. Baker, III

SUPPLEMENTARY PROTOCOL MODIFYING AND SUPPLEMENTING THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA AND THE KINGDOM OF

BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES SIGNED AT BRUSSELS

ON JULY 9, 1970

The Government of the United States of America

and the Government of the Kingdom of Belgium,

Desiring to promote the development of the economic relations between the United States of America and the Kingdom of Belgium,

Considering that, in the course of the ongoing negotiations of a new convention between both countries, it is desirable to remove certain constraints to such development before the successful conclusion of the new convention,

Have decided to conclude a supplementary Protocol to the Convention between the United States of America and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at Brussels on July 9, 1970 (hereinafter "the Convention") and

Have agreed upon the following articles: