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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Canada,   pp. 160-199 PDF (14.9 MB)

Page 178

discriminatory practice of my government, including that with Cuba,
had been abolished and abandoned; that this was the only way we
could successfully urge other governments to take these steps so
necessary and indispensable to the restoration of international trade;
that employment was the one great firm basis of economic well-being,
military disarmament, and peace. The Minister concurred in the
foregoing but still held out for this tax ratification. He also referred
-to the earnest fight he and others were making for a loosening up of
British Empire economic policies, adding that Sir Edward Beatty 23
had gone away from Washington entirely favorable to our view-
-point, although belonging to the reactionary group in Canada.
                                                C[ORDELL] H[uLL]
811.512342 Double/55a: Telegram
  The Acting Secretary of State to the Ambassador in the United
                      Kingdom (Bingham)
                                WASHINGTON, May 24,1937-6 p. m.
  194. From the Secretary of State. I should like to have conveyed
in some way to Mr. King 24 and Mr. Dunning 25 the information that
I have notified the Senate Foreign Relations Committee that I no
longer have any objection to their favorable consideration of our Tax
Convention with Canada, signed on December 30, 1936, and already
ratified by Canada. For background purposes, see Department's press
release of that day.26
  It is my understanding that the Convention has been reported
favorably by a sub-committee of the Foreign Relations Committee,
but that no action has yet been taken by the Committee as a whole.
  Confidentially, this information was conveyed sometime ago to the
Canadian Minister here, but I have just learned that he has not yet
transmitted the information to his Government. I also pointed out
to him that, under the terms of the Convention, either Government
was free at any time to raise the withholding rate above 5%7, and
-that the result of such action would merely be to release the other
Government from its obligation. I stressed this point because it is
not yet known whether the policy of the Treasury Department will
necessitate a higher withholding tax and, if it were found necessary
to do this, I did not wish this Government to be charged with bad
23 Sir Edward W. Beatty, president of the Canadian Pacific Railway; vice
president of Canadian Airways.
  24 W. L. Mackenzie King, Canadian Prime Minister.
  25 A. C. Dunning, Canadian Minister of Finance.
  " Department of State, Press Releases, January 2, 1937, p. 4.

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