DER STAATSSEKRETAR DES AUSWARTIGEN AMTS BONN, 29, August 1989 His Excellency Mr. Vernon Walters Ambassador of the United States of America Bonn Excellency, 　　I have the honor to refer to the Convention signed today between the Federal Republic of Germany and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and to certain ether Taxes and to inform you on behalf of the Government of the Federal Republic of Germany of the following: 　　In the course of the negotiations leading to the conclusion of the Convention signed today, the negotiators developed and agreed upon a memorandum of understanding intended to give guidance both to the taxpayers and the tax authorities of our two countries in interpreting Article 28 (Limitation on Benefits). This memorandum of understanding, attached to this Note, represents the current views of the Government of the Federal Republic of Germany with respect to Article 28. It is my Government's view that as we both gain experience in administering the Convention, and particularly Article 28, the competent authorities may develop and publish amendments and further understandings and interpretations. 　　If this position meets with the approval of the Government of the United States of America, this Note and your Note in reply thereto will indicate that our Governments share a common understanding of the role of the memorandum of understanding relating to Article 28 of the Convention. Accept, Excellency, the expression of my highest consideration. (s) Dr. Hans Werner Lautenschlager EMBASSY OF THE UNITED STATES OF AMERICA Bonn, August 29, 1989 His Excellency, Dr. Hans Werner Lautenschlager State Secretary of the Foreign Office Bonn Excellency, 　　I have the honor to confirm receipt of your Note of today's date which reads as follows: 　　"I have the honor to refer to the Convention signed today between the Federal Republic of Germany and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and to certain other Taxes and to inform you on behalf of the Government of the Federal Republic of Germany of the following: 　　In the course of the negotiations leading to the conclusion of the Convention signed today, the negotiators developed and agreed upon a memorandum of understanding intended to give guidance both to the taxpayers and the tax authorities of our two countries in interpreting Article 28 (Limitation on Benefits). This memorandum of understanding, attached to this Note, represents the current views of the Government of the Federal Republic of Germany with respect to Article 28. It is my Government's view that as we both gain experience in administering the Convention, and particularly Article 28, the competent authorities may develop and publish amendments and further understandings and interpretations. 　　If this position meets with the approval of the Government of the United States of America, this Note and your Note in reply thereto will indicate that our Governments share a common understanding of the role of the memorandum of understanding relating to Article 28 of the Convention." 　　I have the honor to inform you. that my Government agrees to the above. Accept, Excellency, the expression of my highest consideration. (s) V.A.W.