United States-Israel Convention on Income Taxes Message to the Senate Transmitting a Protocol A mending the Convention.

To the Senate of the United States:

I transmit herewith, for Senate advice and consent to ratification, a Protocol Amending the Convention between the Government of the United States of America and the Government of Israel with Respect to Taxes on Income, signed at Washington on November 20, 1975. The Protocol was signed at Washington on May 30, 1980. I also transmit three related exchanges of notes and the report of the Department of State with respect to the Protocol.

Consideration of the Convention by the Senate has been delayed pending the correction of certain technical problems in its text. The Protocol accomplishes this by making certain amendments to the Convention. For example, Article 10 (Grants) is modified to conform more closely to United States and Israeli law with regard to the treatment of Israeli grants to United States investors.

The Protocol also modifies the withholding rates applicable to dividends paid by a subsidiary to a parent corporation and adds a new article dealing with charitable contributions.

It is most desirable that this Protocol, together with the Convention, be considered by the Senate as soon as possible and that the Senate give advice and consent to ratification of both instruments.

JIMMY CARTER

The White House,

July 3, 1980.