Technical Explanation to the 1984 Exchange of Letters (1985)

TECHNICAL EXPLANATION TO THE 1984 EXCHANGE OF LETTERS (1985)

In letters signed at the same time as the rest of the Agreement, President Reagan and Premier Zhao confirm the understanding of the two governments with respect to the United States position on tax sparing credits. It is agreed that, if the United States amends its laws to authorize such credits or grants such a credit in a tax treaty with another country, the Agreement will be amended to incorporate such a credit. The amended Agreement would be subject to ratification.