U.S. TO END NETHERLANDS ANTILLES TAX TREATY
  The Treasury Department said it
  notified the Netherlands that it was terminating the 1948
  income tax treaty as it applies to the Netherlands Antilles and
  Aruba.
      The termination is effective January 1, 1988, the Treasury
  said in a two-sentence announcement.
      The Treasury decided to end the treaty after negotiations
  between the United States and the Netherlands over the past
  eight years had failed to reach an accord, a Treasury spokesman
  said.
      The decision means the sale by U.S. parent companies of
  Eurobonds through Netherlands Antilles subsidiaries will no
  longer be free of the 30 pct U.S. withholding tax, the
  spokesman said.
      Terminating the tax treaty with the Netherlands Antilles 
  may cause bond issuers to call in the bonds early. Most have
  maturities of 10 years or less and were issued before 1984, the
  spokesman said.
      He said the Treasury did not expect the action to have an
  adverse effect on U.S. issuers of the bonds because the general
  decline in interest rates means they will be able to refinance
  at lower interest rates.
      However, the holders of the bonds presumably will be faced
  with lower yields.
  

