811.512394Shipping/23

The Acting Secretary of State to the Japanese Ambassador (Matsudaira)

Excellency: Referring further to your note of March 31, 1926, and to previous correspondence in regard to the establishment by the United States and Japan of reciprocal exemption from taxation of income derived from the operation of merchant vessels, I have the honor to inform you of the receipt of a letter on the subject from the Secretary of the Treasury dated May 26, 1926.11

The Secretary of the Treasury states that he approved, on February 1, 1926, Treasury Decision 3812 embodying the ruling that from July 18, 1924, Japan satisfies the equivalent exemption provision of Section 213 (b) (8) of the Revenue Act of 1924, and that this action is all that is necessary to give effect to the reciprocal arrangement on the part of the United States.

Accept [etc.]

Joseph C. Grew
  1. Not printed.