811.114 Canada/5092

Memorandum by the Assistant Chief of the Division of Western European Affairs (Hickerson)

In connection with the proposed settlement of the United States Government’s claim for tax evasion against four Canadian distilleries, Mr. Sam Whitaker of the Department of Justice called me on the telephone today and said that Mr. Lazarus Phillips, representative [Page 825] of the Seagram interests, had indicated that he would like to receive certain assurances through the State Department and the Canadian Legation in respect to the criminal aspects of these cases. Mr. Whitaker explained to me that the settlements which are now being negotiated deal only with the civil cases and have no bearing on any criminal aspects, but that the United States Government does not intend to proceed with the criminal cases and regards the cases as closed. He said he would be glad to have me communicate this statement to Mr. Wrong orally and make a record of the conversation. I immediately called Mr. Wrong on the telephone and communicated with him in this sense.

John Hickerson