Prague - The US negotiators, whose job is to ensure that the treaty on presence of the American soldiers on Czech soil is in their favor, have come up with a compromise.
The treaty on the US army presence in the Czech Republic is part of the deal on the US missile defense system.
The first part of the treaty has been signed by US State Secretary Condoleezza Rice on July 8.
Read more: US and ČR sign missile defense treaty in Prague
One more chapter is incomplete - the section dealing with the issue of taxes.
According to a source from the Czech Defense Ministry, the US has put forward a following proposal - if the tax issue is dealt with in the same way like in treaties with other countries, the Czech Republic could be offered certain compensation and offset loans.
"This could be acceptable for us, though we are waiting for specific proposals," informed the source.
Tax-free
The Czech side wants the US contractors that are to supply the radar base pay taxes in the Czech Republic. In other countries that have US bases, the US contractors are exempted from paying taxes to the local authorities.
PM Mirek Topolánek (Civic Democrats) has recently acknowledged that ČR may compromise on this issue.
"I believe we will try to find a compromise, or respect that all over the world tax conditions are negotiated in this way [tax exemption for the US contractors]," PM said, adding that he would ask for certain benefits as compensation.
The Defense Ministry has not made it clear yet what benefits it will ask for.
Read more: Just how tough were the US-Czech radar talks?
Fear of treaty revisions
"We are in the middle of negotiations, we cannot make details public, it could harm the negotiations," Ministry spokesman Andrej Čírtek told Aktuálně.cz.
Čírtek suggested, though, that the obligation to pay taxes in ČR could gravely harm the US interests, therefore the Americans are seeking a compromise badly, offering compensations.
"If the US side was to breach the old principle [of tax exemption for their companies], other countries could demand amendments to their treaties. It is not a question of money, it is a question of principles. From this point of view, they find themselves in a hard position," Čírtek explained.
This year
PM Topolánek warns the negotiations on the NATO-SOFA treaty may last weeks.
After the treaty on the US military presence in ČR is signed, it will be submitted together with the treaty on the US radar base to both chambers of parliament.
"I cannot say how long it will take but I hope that we will be able to ratify both treaties this year," said PM Topolánek.
