811.114 Canada/5041½

Memorandum by the Economic Adviser (Feis)

When Mr. Wrong, the Canadian Chargé, and the Secretary of the Treasury had completed their exchange of views about monetary matters, Mr. Wrong stated that though there was no connection except in point of time, and though he did not in any way want to establish any connection, he might well find when he got up to Ottawa that the attitude of the Canadian Government would be affected by the problem that had arisen in regard to the liquor tax in certain legislation now under consideration at the Capitol. Mr. Wrong said that it was not this action itself that was disturbing the Canadian authorities as much as the inherent precedent.

The Secretary of the Treasury answered that the Treasury was responsible for this and emphasized that the Treasury was handling the matter, not the State Department. He then stated that he would be regretful if it caused difficulties between the two governments; his whole wish was to improve relations between the two countries, not the contrary; therefore, he said that if the Canadian Government wished to send someone down with Mr. Wrong when he returned from Ottawa, in order to discuss the question directly with the officials in the Treasury who were handling it, he would welcome such a visit and such an opportunity to take the matter out fully and carefully.

Mr. Wrong stated that he would convey this suggestion to his Government.

H[erbert] F[eis]