US embassy cable - 05PRAGUE1562

UNCLAS PRAGUE 001562 
 
SIPDIS 
 
STATE FOR L-WHA RRICHARDSON, BUDAPEST FOR KPOSNER-MULLEN 
 
E.O. 12958: N/A 
TAGS: OSCI, TSPL, EZ, EUN 
SUBJECT: CZECH GOVERNMENT APPROVES BILATERAL SCIENCE AND 
TECHNOLOGY AGREEMENT 
 
 
1.  The government of the Czech Republic approved the draft 
of a US-Czech bilateral agreement on science and technology 
on October 19.  The Czech government is the first of the ten 
new EU members to approve a new agreement, which includes 
reimbursement for VAT and customs duties imposed on 
commodities acquired with U.S. assistance funds. 
 
2.  The document was originally scheduled to be approved by 
the cabinet at its meeting on October 5.  Approval was 
postponed at the last minute when Finance Minister Bohuslav 
Sobotka asked the Ministry of Education to check with 
Brussels on the document's compatibility with EU regulations 
and laws. Peter Krenek, who heads the Department for 
International Cooperation at the Ministry of Education, told 
the Embassy that "there were some problems," but that 
officials from the Directorate that handles tax matters met 
with Czech officials and, in Krenek's words, "we overcame the 
problems by using Article 133 and the principal of usual 
privileges, which are often used in such agreements." 
 
3.  Embassy Prague wishes to thank OES and L for their 
patience and flexibility in suggesting innovative ways to 
meet the Czech demand for reciprocity. 
 
4.  English and Czech versions of the agreement have been 
forwarded to Washington for clearance.  Once Embassy Prague 
receives clearance from Washington, a signing ceremony will 
be arranged.  The government has authorized the Minister of 
Education Petra Buzkova, or her assistant, Petr Kolar, to 
sign the document.  After the agreement is signed by both 
sides, it will be submitted to both houses of the Czech 
parliament, and to the U.S. Congress for ratification. 
CABANISS