ARTICLE 35 The preceding provisions do not imply the suppression of frontier controls; however the member States shall simplify the necessary formalities to the extent possible. ARTICLE 36 Goods brought onto the territory of a member State, which have profited from the provisions of Articles 29 to 31 above, may be transferred by the Community, with or without payment, only with the authorization of the State concerned and in the circumstances to be determined by agreement between the Community and such State. ARTICLE 37 At the request of a member State the regime provided for in the above articles may, by unanimous decision of the Council, be revised or completed by a system of compensating for tax receipts, as the economic and financial relations of the member States evolve as a result of the existence of the Community. Such a revision shall in any case be studied when the burden-sharing method provided for in Article 94 of the Treaty establishing the Community comes into effect. ARTICLE 38 The personnel of the Community shall be subject to the consump tion and sales taxes applicable in the State where they are stationed. They shall also be subject to customs duties on imports or exports except as otherwise provided for in the case of official travel. Chapter II-Other Taxes ARTICLE 39 The Community shall be exempted from payment of all taxes on income and capital except for: a) taxes on the assets of the Community which are not directly utilized for its normal activity; b) taxes on profit or income on the assets covered in subparagraph (a) above as well as on agriculture, industrial or business income. c) Taxes representing payment for public services. ARTICLE 40 In principle, the Community shall not benefit from any exemption from any other taxes, except for exemptions provided for by agreement between the Community and the member States. ARTICLE 41 1. The fact that persons paid by the Community exercise their official functions in a member State other than their country of resi dence at the time they enter the service of the Community shall not result in a change in their domicile for purposes of income, capital, or gift and inheritance taxes. These provisions shall also be applicable to wives or husbands and children of minor age of the persons concerned. In the country of stationing such persons shall be exempted only from taxes on income received from the Community. Upon recommendation of the Commissariat, the Council may, by unanimous vote, determine the categories of officials of high rank of the institutions of the Community who shall, in limited numbers, be exempted in their state of origin from all taxes on income and emoluments received from the Community; these exemptions may entail an imposition on such officials of taxes for the benefit of the Community in a manner also to be decided upon by unanimous vote of the Council. 2. In the application of inheritance duties, property belonging to persons described in paragraph 1 of the present article and situated on the territory of the country of stationing shall be considered as being in the country of domicile. ARTICLE 42 At the request of a member State and according to the procedures which that State establishes, the Community shall retain for the profit of such State the taxes due on the salaries and other payments received from the Community by the individuals concerned. Chapter III-General Provisions ARTICLE 43 The tax regime for canteens and military restaurants shall be the subject of special agreements between the Community and the State where such establishments are located. ARTICLE 44 The Community shall furnish all useful assistance in the tax and customs fields to the member States which shall so request. ARTICLE 45 The details of application of the general principles enunciated in this Convention shall be established by a special tax agreement which shall recapitulate, complete and elaborate upon the provisions of this Convention. This agreement shall be drafted by the Commissariat and approved by the Council by unanimous vote. The details of application of this Convention may also, if necessary, be established by agreements between the Community and the member States. TITLE IV-FINAL DISPOSITIONS ARTICLE 46 The definitions contained under Title IV of the Jurisdictional Protocol' annexed to the Treaty instituting the European Defense Community shall apply to the present Convention. ARTICLE 47 The regulations of the Treaty defining the operation of the institutions of the Community shall apply as concerns their intervention such as it is provided for under the present Convention. In particular, recourse to the Court is open within the framework of the present Convention in the cases and in the conditions where such recourse would be open under the terms of the Treaty. ARTICLE 48 Any State which shall be party to the Treaty under the conditions provided for in Article 129 of said Treaty, shall be party to the present Convention. ARTICLE 49 The present Convention shall be ratified, the instruments of ratification shall be deposited with the Government of the French Republic which shall notify such deposit to the Governments of the other member States. ARTICLE 50 The present Convention will enter into effect at the same time as the Treaty establishing the European Defense Community. [MULTILATERAL PROTOCOLS, CONVENTIONS AND EXCHANGES OF LETTERS RELATIVE TO THE TREATY ESTABLISHING THE EUROPEAN DEFENSE COMMUNITY, NOT REPRINTED HERE (a) Protocol Relative to the Grand Duchy of Luxembourg, May 27, 1952.2 (b) Conditions of Remuneration and Pension Rights of the Civil and Military Personnel Employed by the Community, May 27, 1952.3 (c) Agreement Provided for in Article 107 (Paragraph 4-B), May 27, 1952.4 (d) Protocol on Military Penal Law, May 27, 1952.5 3 Ibid., pp. 229–230. ▲ Ibid., p. 231. 5 Treaty Establishing the European Defense Community and Related Protocols (Office of the U.S. Special Representative in Europe, Paris, Jan. 26, 1953), p. 37. (e) Exchange of Letters Between the Government of the Federal 28. TRIPARTITE DECLARATION, MAY 27, 19522 The Governments of France, the United Kingdom of Great Britain and Northern Ireland, and the United States of America have signed conventions with the German Federal Republic which will establish a new relationship with that country.3 These conventions, as well as the treaties for a European Defense Community and a European Coal and Steel Community," of which France is a signatory, provide a new basis for uniting Europe and for the realization of Germany's partnership in the European Community. They are designed to prevent the resurgence of former tensions and conflicts among the free nations of Europe and any future revival of aggressive militarism. They make possible the removal of the special restraints hitherto imposed on the Federal Republic of Germany and permit its participation as an equal partner in Western defense. These conventions and treaties respond to the desire to provide by united efforts for the prosperity and security of Western Europe. The Governments of the United Kingdom and the United States consider that the establishment and development of these institutions of the European Community correspond to their own basic interests and will therefore lend them every possible cooperation and support. Moreover, Western Defense is a common enterprise in which the Governments of the United Kingdom and the United States are already partners through membership of the North Atlantic Treaty Organization. These bonds are now strengthened by the system of reciprocal guarantees agreed to between the member States of the European Defense Community, between these member States and the United Kingdom and also between these member States and the member States of the North Atlantic Treaty Organization." For these various reasons, including the fact that these new guarantees will apply to the States concerned only as members of one or the other of these organizations, the Governments of the United Kingdom and the United States have an abiding interest, as has the Government of France, in the effectiveness of the treaty creating the European Defense Community and in the strength and integrity of that Community. Accordingly, if any action from whatever quarter 1 Treaty Establishing the European Defense Community, etc., 2 S. Execs. Q and R, 82d Cong., 2d sess., pp. 253–254. 3 For the texts of these conventions, see ibid., pp. 9-22, 25–165. Supra, docs. 16-27. Supra, docs. 12-15. 6 Supra, doc. 22. 7 Supra, doc. 23. p. 55. threatens the integrity or unity of the Community, the two Governments will regard this as a threat to their own security. They will act in accordance with Article 4 of the North Atlantic Treaty. Moreover, they have each expressed their resolve to station such forces on the continent of Europe, including the Federal Republic of Germany, as they deem necessary and appropriate to contribute to the joint defense of the North Atlantic Treaty area, having regard to their obligations under the North Atlantic Treaty, their interest in the integrity of the European Defense Community, and their special responsibilities in Germany. The security and welfare of Berlin and the maintenance of the position of the three powers there are regarded by the three powers as essential elements of the peace of the free world in the present international situation. Accordingly, they will maintain armed forces within the territory of Berlin as long as their responsibilities require it. They therefore reaffirm that they will treat any attack against Berlin from any quarter as an attack upon their forces and themselves. These new security guarantees supersede the assurances contained in the declaration of the Foreign Ministers of France, the United Kingdom and the United States at New York on September 19th, 1950.2 29. STATEMENT BY THE PRESIDENT ON UNITED STATES POLICY RESPECTING THE RELATIONSHIP BETWEEN THE EUROPEAN DEFENSE COMMUNITY AND THE NORTH ATLANTIC TREATY ORGANIZATION, APRIL 15, 1954 3 3 Following is the text of a message which the President sent to the Prime Ministers of the six nations signatory to the European Defense Community-Belgium, France, the Federal Republic of Germany, Italy, Luxembourg, and the Netherlands. As the time approaches for historic decision on the remaining measures required to put into effect the European Defense Community Treaty, it is appropriate for me to state clearly the United States position on the relation between the European Army and the European Community on the one hand, and the North Atlantic Treaty Organization and the broader Atlantic Community on the other hand. The essential elements of this position, which have been discussed with leaders of both political parties in the Congress, may be simply stated. The United States is firmly committed to the North Atlantic 1 Supra, p. 813. 2 Infra, pp. 1711-1713. Department of State Bulletin, Apr. 26, 1954, pp. 619–620. |