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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 180

  After a considerable interchange regarding detail, the Minister
tentatively advanced the suggestions first that perhaps it might be
possible for the Secretary to bring it about that there was no new
legislation in this field at this session, or second that the tax treaty
with Canada would be promptly ratified and that provision be made
in any legislation that was passed making special exception for the
treaty commitments of the United States; and in that case the Cana-
dian Treasury will be prepared immediately thereafter to enter dis-
cussion with the American Treasury with regard to the possible revi-
sion of the treaty for the purpose of carrying out the idea of equality
of tax treatment as between Americans and Canadians in the matter
of income derived from American sources.
  The Secretary did not give any clear indication as to his judgment
of the feasibility of either line of procedure. The first line was in
no way encouraging. Mr. Feis indicated that the Treasury might
find the second line of procedure acceptable.
  It was agreed that an opportunity be presented for the Canadian
Minister to discuss this matter directly with Mr. Magill, Under Secre-
tary of the Treasury, directly in charge of the Treasury work in this
  Throughout the discussion the Minister emphasized the fact that
the Canadian Treasury is completely prepared to cooperate with the
American Treasury to deal with tax evasion. It will do everything
feasible to see that the American Treasury is kept fully advised of the
income secured by Americans from Canadian sources.
  After talking with the Secretary the Minister came to my Office
and I telephoned Mr. Magill, who is up in Connecticut, and explained
the gist of the matter to him and arranged for a meeting between
the Minister and Mr. Magill on Wednesday morning next.
811.512342 Double/63
Memorandum, by the Adviser on International Economic Affair8
                                    [WASHINGTON] July 27, 1937.
  Sir Herbert Marler, Canadian Minister at Washington, telephoned
me from Montreal to inform the Department that he had talked over
with the Canadian Prime Minister and Minister of Finance and vari-
ous other officials the tax matters he had previously discussed with the
State and Treasury Departments.
  He wanted us to know at the first possible moment that he was now
authorized to give this Government the fullest assurances (which
would be given in written form upon his return): (1) that the Cana-

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