811.114 Canada/4310

The Chargé in Canada (Riggs) to the Acting Secretary of State

No. 1343

Sir: I have the honor to refer to the Legation’s telegram No. 46 of March 22, 1 p.m.,2 reporting the receipt this morning from the Prime Minister of a note suggesting on the part of Canada the conclusion of a treaty in amendment of the Convention of June 6, 1924, and for the purpose of providing “on a reciprocal basis for the denial of clearance of shipments of merchandise by water, air, or land from either country to the other when their importation is prohibited by the latter, and for such further reciprocal measures for the suppression of smuggling as may be found feasible.” Copy of this note, which is No. 24 of March 22, 1930, is transmitted herewith. Two copies of Bill No. 15 entitled “An Act to amend the Export Act”, were received as enclosures to the note and are likewise attached.2

I have [etc.]

B. Reath Riggs
[Enclosure]

The Canadian Secretary of State for External Affairs (Mackenzie King) to the American Chargé (Biggs)

No. 24

Sir: I have the honour to refer to Mr. Phillips’ note No. 349 of April 20, 1929,2 with regard to measures under consideration for the further control of smuggling operations along the border between Canada and the United States, and particularly to Mr. Phillips’ statement that the Government of the United States was convinced that the only effective means of dealing with the smuggling problem along the border would be the conclusion of a treaty amending the Convention [Page 489] of June 6, 1924, to the end that clearance be denied to shipments of commodities from either country when their importation is prohibited in the other.

The Canadian Government has been giving further consideration to the question in the light of experience in Canada as well as of developments in border enforcement by the authorities of the United States, and has reached the conclusion that further action is desirable as regards both the special problem of the smuggling of intoxicating liquors and the general problem of commercial smuggling.

As to the export of intoxicating liquors from Canada, which involves the use of governmental agencies in the release of liquors from bond as well as in the issue of clearances, it has been considered advisable that action should be taken forthwith by Dominion legislation. A bill has accordingly been introduced into the House of Commons to amend the Export Act, the main purpose of the amendment being to require officials of the Dominion Government having charge of liquor in bond and the granting of clearances to vessels to refuse to release such liquor or to grant such clearances where the granting of such release or clearance in any case would facilitate the introduction of intoxicating liquor into a country where the importation of such liquor is forbidden by law. This measure has received second reading in the House of Commons and is now being considered in detail in committee. It will be observed from the copy of the bill which I enclose that it is general in its terms, applying to export to any country where the importation of intoxicating liquor is forbidden by law.

As to the general problem, it will be recalled that in discussing the holding of a conference to consider the various proposals put forward for further action to ensure the prevention of smuggling, the Canadian Government indicated, in February, 1927, its desire that the discussion should not be confined to the question of the smuggling of liquor but should cover all forms of commercial smuggling from each country into the other. The Canadian Government believes that the present would be an opportune time to conclude with the United States a treaty as suggested amending the Convention of June 6, 1924, to provide on a reciprocal basis for the denial of clearance of shipments of merchandise by water, air, or land from either country to the other when their importation is prohibited by the latter, and for such further reciprocal measures for the suppression of smuggling as may be found feasible.

The Canadian Government would therefore be prepared to take the necessary steps at an early date for the conclusion of such a convention.

Accept [etc.]

W. L. Mackenzie King
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