811.114 Canada/5068½

The Acting Secretary of the Treasury (Taylor) to the Secretary of State

My Dear Mr. Secretary: The Department has considered a copy of the memorandum left with the Under Secretary of State on March 26, 1936,27 by Mr. Hume Wrong, Canadian Chargé d’Affaires, with reference to the legislation now pending in the Senate which would have the effect of imposing certain limitations upon the importation of liquor from Canada. It has also considered a copy of Mr. Hickerson’s memorandum of March 26, 1936, setting forth the statements made verbally by Mr. Wrong at the time of the delivery of the Canadian memorandum.

As regards the specific suggestions set forth in the memoranda, it will be recalled that the President, in his telegram of March 23, 1936, to Under Secretary Phillips, indicated that, as a minimum, the Canadian Government should be required to give the practical assurances of the Canadian companies not only that they would submit to the jurisdiction of our courts, but also, to quote his words, that they give “practical assurance … that any judgment which may be obtained against them will be paid.” The memoranda of the Canadian Government make no reference to practical assurances of the latter sort. The Canadian Government refers to the possibility of negotiations or conferences looking to compromise or settlement. The Department, however, cannot undertake to enter into discussions directed to compromise or settlement, and no reference thereto is made by the President in his instructions.

If practical assurances of the two sorts mentioned by the President can in fact be given the Treasury will be glad to discuss this twofold matter. The Department must insist, however, that, if these companies propose to hold such a conference they do so at once for the Department cannot jeopardize the pending legislation by further delay.

Yours very truly,

Wayne Taylor
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