Search

 

Cablegate: U.S.-Czech S&T Agreement: Time to Come to Closure

VZCZCXYZ0000
RR RUEHWEB

DE RUEHPG #1227 2771318
ZNR UUUUU ZZH
R 041318Z OCT 06
FM AMEMBASSY PRAGUE
TO SECSTATE WASHDC 8054

UNCLAS PRAGUE 001227

SIPDIS

SIPDIS

STATE FOR OES (DAUGHERTY), L/OES (BURTON), EUR/NCE (FICHTE)

E.O. 12958: N/A
TAGS: KTIA KSCA PREL EZ
SUBJECT: U.S.-CZECH S&T AGREEMENT: TIME TO COME TO CLOSURE
ON TAX LANGUAGE

1. This is an action request, see para 4.

2. The U.S. and the Czech Republic have been negotiating a
new Science and Technology Agreement since 2003. The sole
unresolved issue is language covering taxation of assistance
funds. EU regulations do not permit the Czechs to conclude
an agreement that waives taxes on assistance. However, the
Czech government states that it will not use its own
assistance funds on scientific cooperation with the U.S., and
adds that it believes the U.S. is not using American
assistance funds to cover scientific activities in the Czech
Republic. Therefore, Prague would like to sign an agreement
that specifically excludes projects that use assistance
funds, but would cover all other forms of cooperation. The
agreement proposed by the Czechs would not contain any
language guaranteeing the waiving or reimbursement of
taxation of assistance funds. If projects using American
assistance funds were to be proposed at a later date, the
Czechs have indicated a willingness to discuss ad hoc
mechanisms to deal with the issue of taxation.

3. Embassy Prague believes the Czech proposal is the most
practical and expedient way to move the agreement to
conclusion. We believe no U.S. institutions are currently
carrying out scientific activities in the Czech Republic that
rely on U.S. assistance funds. We have directly contacted a
number of agencies, including the National Science
Foundation, the National Institute of Health, the
Environmental Protection Agency, and NASA. USAID closed its
office in the Czech Republic in 1997. SEED funds were last
obligated in 2004.

4. It is time to bring this agreement to closure. Embassy
requests Department approval to notify the Czech side that
the USG is prepared to conclude the agreement in a manner
that does not include projects funded with government
assistance, using language similar to what was agreeed to in
the 2005 S & T Agreement with Poland:

"The Parties do not foresee the provision of foreign
assistance under this agreement. If they decide otherwise,
with respect to a particular activity, the relevant
implementing arrangement would need to be consistent with the
requirements of laws of the United States and the Czech
Republic that regulate activities related to foreign
assistance."


GRABER

© Scoop Media

 
 
 
World Headlines

 

OECD: COVID-19 Crisis Puts Migration And Progress On Integration At Risk, Says

Watch the live webcast of the press conference Migration flows have increased over the past decade and some progress has been made to improve the integration of immigrants in the host countries. But some of these gains may be erased by the COVID-19 pandemic ... More>>


Pacific Media Watch: How Pacific Environmental Defenders Are Coping With The Covid Pandemic

SPECIAL REPORT: By Sri Krishnamurthi of Pacific Media Watch Pacific Climate Warriors - creative action to trigger better responses to climate crisis. Image: ... More>>

Reporters Without Borders: Julian Assange’s Extradition Hearing Marred By Barriers To Open Justice

After monitoring four weeks of evidence in the US extradition proceedings against Wikileaks publisher Julian Assange, Reporters Without Borders (RSF) reiterates concern regarding the targeting of Assange for his contributions to journalism, and calls ... More>>

OHCHR: Stranded Migrants Need Safe And Dignified Return – UN Migrant Workers Committee

The UN Committee on Migrant Workers has today called on governments to take immediate action to address the inhumane conditions of migrant workers who are stranded in detention camps and ensure they can have an orderly, safe and dignified return to ... More>>