79–115

106TH CONGRESS EXEC. RPT.

2d Session " ! SENATE 106–20

PROTOCOL AMENDING THE 1950 CONSULAR CONVENTION

WITH IRELAND

SEPTEMBER 29, 2000.—Ordered to be printed

Mr. HELMS, from the Committee on Foreign Relations,

submitted the following

REPORT

[To accompany Treaty Doc. 106–43]

The Committee on Foreign Relations, to which was referred the

Protocol Amending the 1950 Consular Convention Between the

United States of America and Ireland, signed at Washington on

June 16, 1998 (Treaty Doc. 106–43), having considered the same,

reports favorably thereon with the declaration and proviso indicated below, and recommends that the Senate give its advice and

consent to the ratification thereof as set forth in this report and the

accompanying resolution of ratification.

CONTENTS

Page

I. Purpose ........................................................................................................... 1

II. Summary ........................................................................................................ 1

III. Entry Into Force and Termination ............................................................... 3

IV. Committee Action .......................................................................................... 3

V. Committee Recommendation and Comments .............................................. 4

VI. Text of Resolution of Ratification ................................................................. 4

I. PURPOSE

The 1950 bilateral consular convention between the United

States and Ireland exempts diplomatic and consular personnel

from taxation in the receiving state subject to several exceptions.

The Protocol would eliminate two of these exceptions.

II. SUMMARY

A. GENERAL

Prior to the negotiation of the Vienna Convention on Diplomatic

Relations (23 UST 3227; TIAS 7502) in 1961, the privileges and imVerDate 11-MAY-2000 16:04 Sep 29, 2000 Jkt 000000 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 C:\REPORTS\EIRE SFRELA2 PsN: SFRELA2
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munities of diplomatic officials and personnel were well established

in customary international law and generally honored in State

practice. That was not the case with respect to consular officers

and personnel. Customary international law regarding their status,

privileges, and immunities at that time was fragmentary and uncertain. As a consequence, the establishment of consular relations

between States depended largely on the negotiation of bilateral

agreements. Many consular agreements, including the agreement

with Ireland, included a provision that diplomats would not receive

less favorable treatment than consular officers received under the

particular agreement.

The Vienna Convention on Consular Relations (21 UST 77; TIAS

6820) was negotiated in 1963 and provided a detailed international

legal framework for consular relations. The Convention also eliminated the need to negotiate separate bilateral agreements on consular relations by providing that consent to the establishment of

diplomatic relations between States would also constitute consent

to the establishment of consular relations, unless otherwise stated

by the Parties (Article 2(2)). But in recognition of the numerous bilateral agreements concerning consular relations that already existed, Article 73 of the Convention provided that ‘‘[t]he provisions

of the present Convention shall not affect other international

agreements in force as between States parties to them.’’ In addition, Article 73 allowed new consular agreements to be negotiated:

‘‘Nothing in the present Convention shall preclude States from concluding international agreements confirming or supplementing or

extending or amplifying the provisions thereof.’’

Thus, the United States continues to have bilateral consular

agreements with a number of states, even when both the United

States and the other state are also Parties to the Vienna Convention. In the United States’ view, if the bilateral agreement and the

Vienna Conventions address the same subject matter, the more

generous provision controls.

Ireland and the United States are Parties to the Vienna Conventions as well as the 1950 bilateral Consular Convention. These

Conventions provide a number of exemptions from taxes as well as

a number of exceptions to the exemptions. Ireland interprets some

of the key tax provisions of the Vienna Conventions more restrictively than does the United States. Thus, in order to provide the

United States broader tax exemption, it was necessary for Ireland

to conclude an agreement with the United States.

B. KEY PROVISIONS

The 1950 bilateral agreement affords consular personnel and diplomats (but not their families) an exemption from ‘‘all taxes or

other similar charges of any kind which are or may be imposed or

collected by the receiving state, or by any state, province, municipality, or other local subdivision thereof’’ (Article 13(4)). That exemption is subject to several exceptions, including the two that are

the subject of the Protocol.

Article 13(5)(a) of the Consular Convention limits the tax exemption to those for which the officer or employee is personally liable

and provides that it does not extend to taxes for which someone

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else is legally liable, notwithstanding that the burden of such a tax

is passed on to the consular officer or employee.

Article 13(5)(b)(iv) of the Consular Convention, in turn, excepts

from the exemption ‘‘taxes on transactions or instruments effecting

transactions, such as taxes on the sale or transfer of money or

property, or stamp duties imposed or collected in connection therewith * * *.’’

The Protocol would eliminate these exceptions. Articles 1 and 2

provide generally that the Convention can be extended to include

relief from the taxes for which §§ (5)(a) and (5)(b)(iv) of Article 13

of the bilateral agreement impose liability.

Article 3 provides that the Embassy and career Consulates of the

United States in Ireland ‘‘shall be exempt from or be refunded all

identifiable national, regional and municipal taxes whether or not

incorporated in the price of goods or services supplied for official

use.’’ Article 3 also provides that an identical exemption applies to

U.S. diplomatic agents and administrative and technical staff of

the Embassy, consular officers and employees, and the members of

their families forming part of their households. The exemption extends not only to goods or services supplied for official use but also

to those supplied for personal use.

Article 3 further provides reciprocal exemptions to Ireland regarding ‘‘federal, state and municipal taxes on the purchase or sale

of goods and services supplied for official use’’ and, in the case of

individuals, for personal use as well.

Article 4 states that the Parties ‘‘agree that a special reciprocal

administrative arrangement will apply in respect of relief of taxation on motor vehicles.’’

Article 5 denotes that the Protocol does not ‘‘prejudice’’ the positions of either the United States or Ireland regarding their interpretations of the Vienna Conventions on diplomatic and consular

relations and, further, that the tax exemption granted by the

United States under the Protocol has ‘‘the same scope as the grant

of tax exemption accorded by the United States in implementation

of the said Vienna Conventions.’’

III. ENTRY INTO FORCE AND DENUNCIATION

A. ENTRY INTO FORCE

The Protocol will enter into force 30 days after notification by

both Parties that their ‘‘domestic requirements for its entry into

force have been completed.’’

B. TERMINATION

The Protocol may be terminated by either Party on six months

notice.

IV. COMMITTEE ACTION

The Committee on Foreign Relations held a public hearing on the

proposed Protocol on September 12, 2000, (a transcript of the hearing and questions for the record can be found in Senate hearing

106–660 entitled, ‘‘Consideration of Pending Treaties’’). The Committee considered the proposed Protocol on September 27, 2000,

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and ordered it favorably reported by voice vote, with the recommendation that the Senate give its advice and consent to the

ratification of the proposed Protocol subject to the declaration and

proviso noted below.

V. COMMITTEE RECOMMENDATION AND COMMENTS

The Committee on Foreign Relations recommends favorably the

proposed Protocol. The Committee believes that the proposed Protocol is in the interest of the United States and urges the Senate

to act promptly to give its advice and consent to ratification.

VI. TEXT OF THE RESOLUTION OF RATIFICATION

Resolved, (two thirds of the Senators present concurring therein), That the Senate advise and consent to the ratification of the

Protocol Amending the 1950 Consular Convention Between the

United States of America and Ireland, signed at Washington on

June 16, 1998 (Treaty Doc. 106–43), subject to the declaration of

subsection (a) and the proviso of subsection (b).

(a) DECLARATION.—The Senate’s advice and consent is subject

to the following declaration, which shall be binding upon the President:

TREATY INTERPRETATION.—The Senate affirms the applicability to all treaties of the constitutionally based principles of

treaty interpretation set forth in Condition (1) of the resolution

of ratification of the INF Treaty, approved by the Senate on

May 27, 1988, and Condition (8) of the resolution of ratification

of the Document Agreed Among the States Parties to the Treaty on Conventional Armed Forces in Europe, approved by the

Senate on May 14, 1997.

(b) PROVISO.—The resolution of ratification is subject to the following proviso, which shall not be included in the instrument of

ratification:

SUPREMACY OF THE CONSTITUTION.—Nothing in this Protocol requires or authorizes legislation or other action by the

United States of America that is prohibited by the Constitution

of the United States as interpreted by the United States.

Æ