ORGANTSATION POR Eb. EA) ECONOMIC CO-OPERATION Fo/(60)4 Seales: 3 Provisional vending approval “by the. : Committeeat its next session ae Or. Fre Minutes of the’ 19th Session, ché'sen a tbeluPS “iu Switzerland Turkey United Kingdom 25797 a. 64779Fo/st(60)4 - PRESENT (continued): Me. WALLETS United States Me. JANSEW Representative of the Commission of the European Economie Community Seoretariat Mr. GILMER ADOPTION oF ais AGENDA O# THE 19th SESSION AN) APPROVAL OF THE MINUTES Or THz 16th SsSS iow ‘The Chairman apologised for Mr, Mersman, Mr. Vogel, Mr, Tsingris and Mr. Streuss, who were unable to be present, and welcomed Mr. Paci, of the Italian Ministry of Finance, and + Perulles, of the Spanish Ministry of Finance, who were attending a meeting of the Committee for the first time. the Agenda FC/a(60)4 was adopted. The Committee next approved the Minutes of the 18th Session £20/11(60)3 of 28th May/, subject to the following amendments : e Page 6, 4th line: For the second sentence, substitute the following: "He thought that the general question of matching credits should be dealt with in the Commentary." @ Page 9, 2nd paragraph, 12th line: Read: ".... could not in all cases, therefore, assert a different interpretation. Page 10, end of first paragraph: Delete the words: “accompanied by a Commentary". Foge 12, first parograph, 2nd line: ead: “the Delegate for the Netherlands thought that the country of sou Gd not take the reduction of its tax conditional .-3- we/m(60)s Page 14, ist paragraph: For'the first cipht lines, substitute the fol¥owing: “The Delepate for Italy sete that interent existing in Italy wes iioble to the ‘imposta dt ricchezza mobile’ (23 per cent in the.case of interest in the naturexof litcome from capitel; 18 per-cent, 2s 8 general, rule, in other cases, although certain Local udattions brought’ the rate up to around 27 percent); there. were. exemptions in certain cases. . In addition, Anterest paid toa person resident abroad.ias. Lieble to the ‘imposta complementare progressiva” Lf’ the recipi. ent wes an individual, or to the ‘imposta sulir societé' if the recipient was a company or-assoclation possess~ - ing a permanent. establishment in Italy. Finally, there was a tax at the source on bonds, of 5 per mil of the, taxable value of the bonds." Page WW, first paragraph, 16th line: ” Insert ‘the following before the antepenultimate sent— ence: “ghe" Delegate for Frence said that in that case one solution might be not to fix in paragraph @.of the draft Article a maxinum rate. for the tax.levied on interest. in-the country of source, but. to provide. in that peragraph that the reduction of the tax at. the “gource -should he settled by. bilateral negotiations between the Contracting States. The Chairman observed that such a solution did not seem to him to be advisable, in.view of the fact that all. Member. coun- tries except Italy were in favour of fising a: maxima xste in the ecuntry of source." * Page 14}. first, paragraph, 22nd lin Read: "is. Wa’ riot; as a ‘general rule,’ clierged on foreign interest: on capital .Ty. Page li, 3rd:paragraph, ‘Ath lines 2 For. the second sentence, substitute the following: "Ghe Délégate ‘for the Netherlarids shared this view. He considered that is question should be settled under the national laws. Page 15, 2nd paregraph, 6th line: Read "..., there the creditor resided in the country a8 the debtor or i ble therePage 16, 3rd paragraph, Srq.lines >, - Reads Am-order to examine: the. new. text of ELOL Ue : Working Party. cing Parties Nos. ‘Connéntaries in ; to een In regard to parazvorh 1, the ‘the forutlea “whese ¢ resident y in the third line"... or~5- Fo/n{Go)4 As regards paragraph 2, the Committee decided te sub- stitute for. the. words "the authority, competent under tne. provision. of, paragraph (L".tho words “the competent. authonLoy. .. of the State. concerned", it being agreed that the competent, authorities: would be defined by Worlting Party.No, 14 in the Article on definitions. The Delegate for France. though. that. the paragraph should staté that ii thé authority in the country of the taxpayer's residence considered the objection justified, it should rectify. the.position, and that if it-did not. ite with that authority to.do so. it-should.ondeavour to reach. agreemen with. the. competent. authority in’ the other state, : With respect. to. paragraph 3, the Committee decided, to substitute,.in the, lth line,.for the words "They. shall also consult together..." the worde They may alo consult to- gether ooo. 5 Te Whe Chairman stated that the question raised by the Delegate for Belettim in connection with Articole XxvI, namely, thes Sorelative stjustment of profits. by, the other. State: where the profits of enterprises of a State which were covered by that Article. were, adjuated by that State, could be settled: undez, the mutual: agreement. procedure, he ‘Chairman thanked the working’ Party Now ll for the work 1t "Had accomplished and asked it to submit for the Sept: session a.revised text for article, £ and Commentardes;.on the 12x indicated. in; the Report:. “The: Delegate for the Netherlands poinved out that it. yould be; premature: & 8, Stage to adopt the: pro- posals submitted by. the Swiss. Delegation for thé creation ofa Consultative. Commission: /see- FC/WE14(60)2 of: 3rd-May, 1960/7. ‘The Committee decided that the Commentary should state. that this question would be examined later in connection. with. the. future mltilateral Convention. 5 i IV, "PAX REGULATIONS CONCERNING NUCLEAR RISK INSURANCE The, Secretary of the Commttee stated that the. report of the Instranes Sub-Committee on the, technical and ‘practical. cor~ ditions. under which, nuclear risk insurance would take place Zi (60)2 of 23rd May 19607. would: be examined. by. the. Joint Trade and Intra-European: Payments Committee as.soon.as the.draft. Conveation on third party liability in the field-of nuclear energy had been.adopted by the Council, Following. the: Executiv: Comnittee's examination of the draft Convention on 17th May, 196C, & revised text had been circulated under 6(60)93 of 19th May, 1960; a revised text of the “ixposé. des Motifs" was contained in Annex II to the revised draft, under date 24th May, 1960, These doeumeuts would bea submitted to the Couneil] for examination.Po/M(60)4 Se on ist July, 1960, There reports, and various other documents comnected with them, hed been sent to the members of Working Party No, 16, by the Secretariat, vnteh would keep them in- formed of the progress of the work bein, Sone in the different bodies of the Orgenisation.*™ Ghe Delegate for the United Kingdom, Rapporteur of Working Party No, I6 appointed to examine the question of tax regulations relating to nuclear risk insurance, said. that the Working Party vould meet in-Paris in September on the occasion of the Committee's next session, and would try to have its report ready for the Conmittee at the October session, He pointed out that in its report, the Insurance Sub-Committee hed expressed a wish'to be kept informed of the results of the Fiscal Committee's studies before the Fiscal Committee!s report was examined by the Council. The Secretary of the Committee suggested that the Working Party might convact the Chalrmai of the Insurance Sub-Committee, Mr, BASYN (Belgium), through the Delegate for Belgiun to Working Party No. 16, ve WOR). OF THE OVERSEAS TERRITORIES COMMITTES CONCERNING MENT a HE TAXATION = es aE OVERSEAS COUNTRIES AND PERRTTONIES ASSOCIATED WITH MEMBER COUNTIRTES ———OC~C<“‘“SCSSSS ‘The- Secretary of the Fiscal Committee recalled that he had already had occasion to Inform the Committee of the work being done by the Overseas’ Territories Committee on this ques— tion and ‘that the Fiscal: Comalttee had asked to:be-informed of the progress of this work /fee Minutes of the 13th session FO/1(59)3 of 5th August, 1959 - Item V7. Mr. LUCAS; Seeretary of the Overseas Territories Comnittce, wae invited to make a ‘Btatemént on the present progress of the work, ‘He said, in particular, that a number of papers had already been prepared, mainiy on the basis of information supplied by the members of % Note by the Secretariat: Following the Council's examination OF BEpoFE [00/93 on Ist July, a new revised text of ‘the draft Convention and of the "Exposé des Motifs" was: cir- culated under’ reference ¢(60)93(Revised) of 2nd July, 1960. This: document was examined by the Councdi on'19th July, 1960, The Convention on third party liability in the field of nuclear energy is expected to be signed on 29th duly, 1960, 7 d7- 0/1(60) 4b the Overseas Territories Committee, These papers were cont. toa deseription of the taxation treatment of investment in each of the countries and territories in question, and it wae Antended to publish them, after agreement with the Delegations. concerned. A‘ first set of papers on the Belgien Congo and Ruci : Urundi, Somaliland under Italian Trusteeship, Surinam, Angola. and Mozambique, and the first part of a paper on the British over= sens beter tons ee POMS: Be “published in September. ease es he Ghatrman asked that these studies shoula be ais tributed to the tembers of the Fiscal Committee for their information as they were Published. VI. WORK OF THE EUROPSAN PRODUCTIVIDY somioy ON: PISOAL MEASURES 70 ENCOURAGE INDUSTICAL RESEARCH . The Seoreta of the “Conmittes regalled that. the ‘come es mittee had been dnforned of the work undertaken on this question by the Committes for Applied Research’ of the. European Produc~ tivity Agency /3ee Minutes of the 13th session ¥C/M(59)3 of -5th August 1959 - rtem'v, and Minutes of the lith session FO/M(59)4 of 20th October 1959+ Item V7, and said that the first of the country studies would be Published in the autum,. The Chairman asiced that these documents also should be dis~ ‘“Enibuted to the members of the Committee for information. Vi. REORGANISATION OF THE O.E.2.C. é At the request of the Ghairman, ‘the Secretary of the’ Committee gave.a brief account of the-current work pelaving fo the reorganisation of the 0.2.H.C. ‘VIII, ‘THE COMMITTER'S PROGRAMME OF WORK FOR 1960-61 The Chairman recalled that at its April session, the Committee had already fixed the following time-table for its sessions UP to the end of the year: = 20th session: from Tuesday 6th September to Friday 9th September; ” Qlst session: from Tuesday 25th October. to Friday 28th October; > 22nd session: from Tuesday 13th December to Friday 16th ‘December, S: ‘The Chairman stated that at the Joint, meeting the dey See ‘before of Working Farties Nos. 8, 11, 12 and 15, it had. been Ggeided to harmonize the presentation of the draft Articles on royalties, interest and dividends. He asked the three Working Parties concerned to prepare the nev texts of these Articles for. examination by the Committee at the September session and, _ a8 far as possible, to present the. Coimentaries at the same time, Working Party No, 15 would submit a revised text of Articles < anid Commentaries for the October session:It, Tq. Iv. VIL =9- BO/M(SO)4 ° annex es DRAPD AGENDA of the 20th session of the Fiscal, Com tt bo be held at the Chiteau de la Nuette on Tuesday, Sth September, 1960 at 10 a.m. (and to contime on 7th, 8th and 9th September) ADOPTION OF AGENDA ~ELSQTION OF "THE OFFICERS OF THE PISCAL COMMENTER FOCIsOfol ° APPROVAL OF MINUTES OF Loth SEssTON FC/i(60)4(Prov.) GENERAL PROVISIONS .OF THE CONVENTION 4 +. Examination of the revised ‘text of article E : and Commentaries prepared by Working: Party No. a =, Gontimation of cxamination of the hepert of working Party No. 14 2/14 (59) 1 (Articles F to 1) a a March, 1959 and of the Workin Party's Note ROMP GO)2 ee F and a 3rd May, 1 OF ROVATTTES, INTEREST AND DIVIDENDS Examination of the revised draft Articles prepared. by Working Parties Nos,.8, 11 and 12. OTHER BUSINESS