1. Items of income of a resident of a Contracting State, wherever arising, not dealt with  in the foregoing Articles of this Convention shall be taxable only in that State.  

2. The provisions of paragraph 1 shall not apply to income, other than income from  immovable property as defined in paragraph 2 of Article 6, if the recipient of such income,  being a resident of a Contracting State, carries on business in the other Contracting State  through a permanent establishment situated therein and the right or property in respect of  which the income is paid is effectively connected with such permanent establishment. In  such case the provisions of Article 7 shall apply.