851.512 American Stock Exchange Brokers/27
The Secretary of State to the Ambassador in France (Bullitt)
Sir: With reference to the Embassy’s despatch No. 3056, of September 10, 1936,62 relating to the two per mille tax on the operations of American Stock Exchange brokers in France, you are informed that Count René de Chambrun called at the Department on October 6, 1936, to discuss this matter.
As you know, Mr. de Chambrun has been retained as counsel for the defense in the case of the French fisc versus de St. Phalle, and is therefore representing the interests of the American stock exchange firms in France. Mr. de Chambrun is particularly anxious at this time to obtain a postponement of the trial of the case and he is convinced that, if the French tax authorities understood that the Department was willing to explore the possibilities for negotiation on tax matters, his request for a postponement would be favorably received.
The Department has informed Mr. de Chambrun orally that Mr. Eldon P. King, Special Deputy Commissioner of Internal Revenue, expected to be in Paris late in October in order to discuss tax questions with the Embassy, and that, in view of Mr. King’s competence in this field, the Department suggested to Mr. de Chambrun that he communicate again with the Embassy upon his return to Paris.
The Department, of course, does not wish to commit itself in any way to a promise to open negotiations with the French Government on tax questions, and it is not prepared to give an opinion concerning the validity of the de St. Phalle case. It is of the opinion, however, that after Mr. King has conferred with the French fiscal authorities the latter may be willing to recommence [recommend?] the postponement of the de St. Phalle case. If you also are of this opinion, after having discussed the matter with Mr. King, you are requested to inform Mr. de Chambrun when he calls at the Embassy that, if he decides to ask for a postponement of the de St. Phalle case, the Embassy will informally support his request with the French authorities.
Very truly yours,
- Not printed.↩