ARTICLE 28. EFFECTIVE DATES — U.S. Income Tax Treaty

This Article provides for the ratification of the proposed Convention and for the exchange of instruments of ratification. The proposed Convention will have effect for taxable years beginning on or after the first day of January of the year in which the instruments of ratification are exchanged. However, (1) the provi sions of paragraph (2) of Article 7 (Tax- Deferral for Technical Assistance) shall be effective with respect to stock received on or after the date of the signing of the Convention and (2) Trinidad and Tobago agrees, following the signing of this Convention, to take all steps that are necessary to give effect to the provi sions of Article 12 (Dividends) so that the provisions of that Article shall be effective from January 1, 1970, and shall terminate on December 31, 1970, unless this Convention has been ratified by both States. This provision was added in order to authorize Trinidad and Tobago to reduce the rate of its withholding on dividends as soon as the Convention is signed and not postpone this reduction until the Convention is ratified.

This Article also provides rules for terminating the Convention. The Conven tion will continue in effect indefinitely, but may be terminated by either State at any time after 5 years from the first day of January of the year in which the instruments of ratification are exchanged. A State seeking to terminate the Con

vention must give notice at least 6 months before the end of the calendar year through diplomatic channels. If the Convention is terminated such termination shall he effective for taxable years beginning on or after the first day of January next following the expiration of the 6-month period.