811.512351Double/47: Telegram

The Secretary of State to the Ambassador in France (Edge)

149. Your 207, July 3, 11 a.m. For Carroll from Alvord:

“Because of newspaper reports from Paris that Mills was going to Paris on secret mission for President Hoover including efforts to obtain further concessions from France on double taxation matter Treasury deemed it advisable to discuss general situation with newspaper reporters yesterday. However, it was distinctly stated that no agreement had been reached. Newspaper reporters presumably relying upon dispatches from Paris misquoted rather unfortunately my statement. The following is a Treasury newspaper release of today attempting to clear up the situation.

‘The Treasury deems it advisable to correct certain inaccurate statements and quotations appearing in various newspaper articles [Page 23] with reference to proposed or purported agreements with Great Britain and France with respect to double taxation.

No negotiations are pending with Great Britain, nor are any negotiations contemplated by the Treasury at the present time.

Informal and preliminary negotiations have been carried on between our representatives and representatives of the French Government with reference to the tax situation existing in France. Mr. Ellsworth C. Alvord, Special Assistant to the Secretary of the Treasury, returned from Paris about a week ago and has gone over in detail with the Treasury officials the results of the preliminary negotiations. However, no agreement has been entered into and no action by the Treasury has been taken with respect thereto. Inasmuch as the Treasury is not empowered to enter into agreements of this nature, it can take no definite action until after legislative authority has been granted, which obviously cannot be obtained prior to the next session of the Congress. Any agreement by the Treasury must, of course, conform to legislative authority. It is impossible, therefore, at this time to make any definite statement either as to the possibility of a final agreement or as to any of its terms.’

Treasury position remains unchanged. I have discussed the matter in detail with Hawley, Bacharach, and Garner and their reaction was rather more favorable than I had expected. However, they were unwilling to commit themselves on the policy. Alvord.”