May 30, 1980. HIS EXCELLENCY EPHRAIM EVRON, Ambassador of Israel. 　　EXCELLENCY: I have the honor to refer to the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington on November 20, 1975 and amended by a Protocol which was signed today. In the process of negotiating this Convention, the Israeli delegation emphasized the necessity of including in the Convention additional provisions, such as an investment credit for foreign investment, which will create incentives to promote the flow of investment to Israel. 　　The United States delegation is not able to accept such provisions at this time. However, I wish to assure you that my Government realizes the importance your government attaches to the increase of investments in Israel. Should circumstances change, including any changes in the manner in which the United States imposes income tax upon the income of the United States investments in Israel, our Government would be prepared to re-open the discussions on provisions which would minimize the conflicts between the United States tax system and the incentives proposed by the Israeli Government to foreign investors and which would be consistent with the income tax policies of the United States, including treaty policies, with respect to other developing countries. 　　I have the honor to propose that this note and your Excellency's reply confirming the above points of understanding on behalf of your Government shall be regarded as constituting an agreement between our two Governments concerning this matter, which will enter into force on the date of the entry into force of the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20, 1975. Accept, Excellency, the renewed assurances of my highest consideration. For the Secretary of State: (s) HAROLD H. SAUNDERS. EMBASSY OF ISRAEL Washington, D.C., June 2, 1980. THE SECRETARY OF STATE, The Department of State, Washington, D.C. 　　EXCELLENCY: I have the honor to acknowledge your note of May 30, 1980, which reads as follows: 　　"EXCELLENCY: I have the honor to refer to the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington on November 20, 1975 and amended by a Protocol which was signed today. In the process of negotiating this Convention, the Israeli delegation emphasized the necessity of including in the Convention additional provisions, such as an investment credit for foreign investment, which will create incentives to promote the flow of investment to Israel. 　　"The United States delegation is not able to accept such provisions at this time. However, I wish to assure you that my Government realizes the importance your Government attaches to the increase of investments in Israel. Should circumstances change, including any changes in the manner in which the United States imposes income tax upon the income of United States investments in Israel, our Government would be prepared to re-open the discussions on provisions which would minimize the conflicts between the United States tax system and the incentives proposed by the Israeli Government to foreign investors and which would be consistent with the income tax policies of the United States, including treaty policies, with respect to other developing countries. 　　"I have the honor to propose that this note and your Excellency's reply confirming the above points of understanding on behalf of your Government shall be regarded as constituting an agreement between our two Governments concerning this matter, which will enter into force on the date of the entry into force of the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20,1975. 　　"Accept, Excellency, the renewed assurances of my highest consideration." 　　I confirm these understandings on behalf of the Government of Israel. These understandings constitute an agreement between our two Governments on this matter, which will enter into force on the date of entry into force of the Convention between the Government of the State of Israel and the Government of the United States of America with Respect to Taxes on Income signed at Washington on November 20, 1975. 　　Accept, Excellency, the renewed assurances of my highest consideration. 　　　　　　　　　　　　　　　　　　　　　　　　　　　EPHRAIM EVRON, 　　　　　　　　　　　　　　　　　　　　　　　　　　　Ambassador. 　　　　　　　　　　　　　　　　　　　　　　　　　　　MAY 30, 1980. HIS EXCELLENCY EPHRAIM EVRON, Ambassador of Israel. 　　EXCELLENCY: I have the honor to refer to the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20, 1975 and amended by a Protocol which was signed today, and to confirm on behalf of the Government of the United States of America, the following understanding reached between the two Governments. 　　The competent authorities of each of the Contracting States shall review the procedures and requirements for an organization of the other Contracting State to establish its status as an eligible recipient of the charitable contributions described in Article 15-A with a view to avoiding duplicate application by such organizations to the administering agencies of both Contracting States. If a Contracting State determines that the other Contracting State maintains procedures to determine such status and rules for qualification that are compatible with such procedures and rules of the firstmentioned Contracting State, it is contemplated that such Contracting State shall accept the certification of the administering agency of the other State as to such status for the purpose of determining the deductibility or creditability of such charitable contributions. 　　I have the honor to propose that this note and your Excellency's reply confirming the above points of understanding on behalf of your Government shall be regarded as constituting an agreement between our two Governments concerning this matter, which will enter into force on the date of the entry into force of the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20, 1975. 　　Accept, Excellency, the renewed assurances of my highest consideration. For the Secretary of State: 　　　　　　　　　　　　　　　　　　　　　　　　(s) HAROLD H. SAUNDERS. 　　　　　　　　　　　　　　　　　　　　　　　EMBASSY OF ISRAEL 　　　　　　　　　　　　　　　　　　　　Washington, D.C., June 2, 1980. THE SECRETARY OF STATE, The Department of State, Washington, D.C. 　　EXCELLENCY: I have the honor to acknowledge your note of May 30, 1980, which reads as follows: 　　"EXCELLENCY: I have the honor to refer to the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington on November 20, 1975 and amended by a Protocol which was signed today, and to confirm on behalf of the Government of the United States of America, the following understanding reached between the two Governments. 　　"The competent authorities of each of the Contracting States shall review the procedures and requirements for an organization of the other Contracting State to establish its status as an eligible recipient of the charitable contributions described in Article 15-A with a view to avoiding duplicate application by such organizations to the administering agencies of both Contracting States. If a Contracting State determines that the other Contracting State maintains procedures to determine such status and rules for qualification that are compatible with such procedures and rules of the firstmentioned Contracting State, it is contemplated that such Contracting State shall accept the certification of the administering agency of the other State as to such status for the purpose of determining the deductibility or creditability of such charitable contributions. 　　"I have the honor to propose that this note and your Excellency's reply confirming the above points of understanding on behalf of your Government shall be regarded as constituting an agreement between our two Governments concerning this matter, which will enter into force on the date of the entry into force of the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20, 1975. 　　"Accept, Excellency, the renewed assurances of my highest consideration." 　　I confirm these understandings on behalf of the Government of Israel. These understandings constitute an agreement between our two Governments on this matter, which will enter into force on the date of entry into force of the Convention between the Government of the State of Israel and the Government of the United States of America with Respect to Taxes on Income signed at Washington on November 20, 1975. 　　Accept, Excellency, the renewed assurances of my highest consideration. 　　　　　　　　　　　　　　　　　　　　　　　　　　　　EPHRAIM EVRON, 　　　　　　　　　　　　　　　　　　　　　　　　　　　　Ambassador. 　　　　　　　　　　　　　　　　　　　　　　　　　　　　MAY 30, 1980. HIS EXCELLENCY EPHRAIM EVRON, Ambassador of Israel. 　　EXCELLENCY: I have the honor to refer to the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington on November 20, 1975 and amended by a Protocol which was signed today, and to confirm, on behalf of the Government of the United States of America, the following understanding reached between the two Governments. 　　The Government of the United States and the Government of Israel agree that exchange of information shall be made in accordance with Article 29 (Exchange of Information) of the Convention. 　　It is understood, however, that due to a lack of technical capability, and to a severe manpower shortage in revenue administration in Israel, it is impractical, at this time, for the Government of Israel to exchange information on a routine basis with respect to receipts from Israel of dividends, interest and royalties by residents of the United States as well as any information not existing in the Finance Minister's files. However, as soon as the above deficiencies are remedied, the Government of Israel will provide information made available by advances in its capability of acquiring and compiling tax information. 　　I have the honor to propose that this note and your Excellency's reply confirming the above points of understanding on behalf of your Government shall he regarded as constituting an agreement between our two Governments concerning this matter, which will enter into force on the date of the entry into force of the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20, 1975. 　　Accept, Excellency, the renewed assurances of my highest consideration. For the Secretary of State: (s) Harold H. Saunders EMBASSY OF ISRAEL, Washington, D.C., May 30, 1980. . THE SECRETARY OF STATE, The Department of State, Washington, D.C. 　　EXCELLENCY: I have the honor to acknowledge your note of May 30, 1980, which reads as follows: 　　"EXCELLENCY: I have the honor to refer to the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington on November 20, 1975 and amended by a protocol which was signed today, and to confirm, on behalf of the Government of the United States of America, the following understandings reached between the two governments. 　　"The Government of the United States and the Government of Israel agree that exchange of information shall be made in accordance with Article 29 (Exchange of Information) of the Convention. 　　"It is understood, however, that due to a lack of technical capability, and to a severe manpower shortage in revenue administration in Israel, it is impractical, at this time, for the Government of Israel to exchange information on a routine basis with respect to receipts from Israel of dividends, interest and royalties by residents of the United States as well as any information not existing in the Finance Minister's files. However, as soon as the above deficiencies are remedied, the Government of Israel will provide information made available by advances in its capability of acquiring and compiling tax information. 　　"I have the honor to propose that this note and your Excellency's reply confirming the above points of understanding on behalf of your Government shall be regarded as constituting an agreement between our two Governments concerning this matter, which will enter into force on the date of the entry into force of the Convention between the Government of the United States of America and the Government of the State of Israel with respect to taxes on income, signed at Washington November 20, 1975. 　　"Accept, Excellency, the renewed assurances of my highest consideration. 　　I confirm these understandings on behalf of the Government of Israel. These understandings constitute an agreement between our two Governments on this matter, which will enter into force on the date of entry into force of the Convention between the Government of the State of Israel and the Government of the United States of America with Respect to Taxes on Income signed at Washington on November 20, 1975. 　　Accept, Excellency, the renewed assurances of my highest consideration. Sincerely, 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　EPHRAIM EVRON, 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Ambassador.