With respect to paragraph 4 of the exchange of notes dated August 13, 1954, the United States Government and The Netherlands Government have reached the following understandings between them concerning the implementation in The Netherlands of the Agreement signed at London on June 19, 1951, Between the Parties to the North Atlantic Treaty Regarding the Status of Their Forces.

1. The expression “dependent” in paragraph 1 (c) of Article I also includes relatives who habitually reside with and are actually dependent on a member of a United States force or civillian component.

2. The Netherlands authorities do not require the countersignature of movement orders referred to in paragraph 2 (b) of Article III.

3. The Netherlands authorities, recognizing that it is the primary responsibility of the United States authorities to maintain good order and discipline where persons subject to United States military law are concerned, will, upon the request of the United States Authorities, waive their primary right to exercise jurisdiction under Article VII, except where they determine that it is of particular importance that jurisdiction be exercised by the Netherlands authorities. The United States assumes the responsibility for custody pending trial. The United States authorities will make these people immediately available to Netherlands authorities upon their request for purposes of investigation and trial and will give full attention to any other special wishes of the appropriate Netherlands authorities as to the way in which custody should be carried out.

4. The Netherlands Government confirms that persons subject to United States military law, prosecuted under Netherlands jurisdiction, will be entitled to have a representative of the United States Government present during their trial, which will be public except when the court decrees otherwise in accordance with Netherlands law.

5. In applying paragraph 10 (a) of Article VII to areas jointly used by the forces of the United States and The Netherlands, internal security measures will be a matter of joint consultation between the authorities of these forces.

6. With respect to paragraph 2 of Article IX, United States forces may procure supplies, facilities, and services directly from local sources in The Netherlands. In order to avoid such procurement having an adverse economic effect locally, the Netherlands authorities may indicate, when necessary, purchases which should be restricted or controlled.

7. United States forces may, at the installations put at their disposal, establish and operate United States military post offices for the handling of official mail and that of authorized individuals between these and other United States post offices. The Netherlands authorities will not inspect official mail in United States military postal channels. Any inspection of non-official mail in such channels which may be required by regulations of The Netherlands will be conducted by Netherlands authorities in accordance with mutually determined procedures.

8. In connection with paragraph 4 of Article IX, the manner in which local civilian labor requirements of United States forces in The Netherlands will be satisfied shall be mutually determined.

9. With respect to paragraph 4 of Article XI, United States forces may import free of duty reasonable quantities of supplies and other goods for the use of members of United States forces and civilian components, and their dependents and distribute them through official activities. In this connection, military sales exchanges, commissaries, officers' clubs and similar activities may be established and operated without being subject to taxes, including those on sales by these activities, licenses or other charges. United States authorities will cooperate closely with Netherlands authorities to prevent unauthorized resales of duty-free items on the local market or other abuses of these privileges.

10. With respect to paragraph 5 of Article XI, members of United States forces and civilian components, and their dependents may import free of duty their new and used personal effects and furniture during a period of six months from the date of their first arrival.

11. Sales of duty-free items taking place between members of United States forces and civilian components, and their dependents are not subject to duties or taxes in The Netherlands.

12. In connection with Article XIV, the following arrangements will apply.

a.

(i) United States forces may use Netherlands currency available in any United States Government accounts for transactions in The Netherlands.

(ii) United States forces, members of these forces and civilian components, and their dependents may acquire Netherlands currency needed for their operations in The Netherlands, and for personal expenditures, from the central bank of the Netherlands or other agencies designated by the Netherlands authorities, as well as that Netherlands currency available under a (i) above.

(iii) The authorities of the two Governments will determine from time to time the appropriate exchange rate to be used under this agreement.

(iv) At the request of the United States authorities, at any time, the Netherlands Government through the central bank of The Netherlands will purchase any unutilized balances of guilders, which are held as official funds of the United States Government or any instrumentality thereof and which were acquired by United States forces in accordance with the arrangements referred to in a (ii) above. Such purchases will be made in United States dollars at the rate of exchange at which such balances were acquired.

b. United States forces shall have the right to:

(i) import into, export from and possess in The Netherlands for official purposes United States dollars and dollar instruments, other non-Netherlands currency and instruments, and military payment certificates denominated in United States dollars; and

(ii) make payments to members of United States forces and civilian components, and their dependents freely in United States dollar currency, instruments, and military payment certificates, in Netherlands currency and instruments, and, to the extent of the requirements of such persons for travel outside of The Netherlands, in other non-Netherlands currency and instruments.

c. Subject to the regulations of United States forces, members of these forces and civilian components, and their dependents shall have the right freely to import into The Netherlands United States currency, instruments and military payment certificates, and to export from The Netherlands non-Netherlands currency and instruments and United States military payment certificates which they have imported or received from the authorities of the United States.

d. The United States authorities will take appropriate measures to assure that the use of United States military payment certificates is restricted to transactions within areas in use by United States forces and with mutually authorized financial institutions. The Netherlands authorities will take the necessary steps to prevent persons under its jurisdiction not authorized to use United States military payment certificates from engaging in unauthorized traffic in such military payment certificates. Neither the United States Government nor any of its agencies will have any obligation to the Netherlands Government nor to any other instrumentality or persons as a result of any unauthorized use of such military payment certificates.

e. United States authorities, in cooperation with Netherlands authorities, will take measures to safeguard the Netherlands foreign exchange regulations insofar as they may be applicable to the members of United States forces and civilian components, and their dependents.