858.5123 P 34/4
The Minister in Sweden ( Harrison ) to the Secretary of State
[Received May 3.]
Sir: With reference to my despatch No. 153, of December 7, 1927,8 regarding the possibility of obtaining for American citizens resident in Sweden, pending the conclusion of a most-favored-nation treaty between the United States and Sweden, the benefit of the same deductions enjoyed by Swedish nationals in computing their net income for income tax purposes, I have the honor to report that upon receipt of the Department’s instruction No. 38, of February 9, 1928, I took the first opportunity to discuss the matter with the Minister for Foreign Affairs. After confirming my understanding that under Swedish law non-resident Swedes and non-resident aliens are treated alike, I left with the Minister, on March 7th, a memorandum of the statement which I was authorized to make in response to his inquiry respecting the treatment accorded Swedish residents in the United States, together with an explanation of the provisions of Section 222 of the Revenue Act, in accordance with the directions contained in the Department’s [Page 887] instructions mentioned above. Mr. Löfgren was good enough to say that he would lose no time in communicating with the Ministry of Finance and that he would not fail to advise me of the result as soon as possible. A copy of my memorandum of March 7th is enclosed herewith.9
After repeated inquiries at the Ministry for Foreign Affairs respecting the status of the matter, Mr. Winter, Chief of Bureau, informed me by direction of the Minister that upon the receipt of a note confirming my statement respecting the treatment accorded Swedes in the United States, arrangements would be made for the issuance, on or about May 1st next, of a Royal Decree extending to resident citizens of the United States and of Finland (the latter by virtue of the Commercial Treaty recently concluded between Sweden and Finland10) the same benefits respecting deductions in the taxable amount of their income now enjoyed by Swedish nationals. Subsequently, on handing the note in question to Mr. Winter on April 4th, he assured me that as soon as the Royal Decree had been signed I would receive a note in reply informing me of the action taken by the Swedish Government in the matter. A copy of my note of April 4th to Mr. Löfgren is enclosed herewith.9
I have [etc.]