811.512394 Shipping/68
The Japanese Embassy to the Department of State
Memorandum
The Japanese Embassy acknowledges the receipt of the memorandum of the State Department under date of October 20, 1936, in which it is stated that the Department of State is authorized by the Treasury Department to accept as a basis for settlement the counter-proposal of the Japanese Government, as set forth in the memorandum of the Embassy of September 19, 1936, with regard to the settlement of pending cases concerning additional war profits taxes asserted by the Treasury Department against three Japanese steamship companies. In the memorandum under acknowledgment it is assumed that the Japanese Government will advise the steamship companies to arrange for a conference at an early date between the representatives of such companies and the Treasury Department to work out the details of the plan of settlement; and that the amount of $650,000 will be paid in cash at the time of the consummation of the agreement. It is also stated that the attention of the Japanese Embassy is invited to the fact that it will be necessary for the steamship companies to reach an agreement among themselves as to the allocation of the amount to be paid.
The memorandum of the Department having been duly transmitted to Tokyo, the Japanese Embassy is now in a position to inform the [Page 964] State Department that the steamship companies are now in readiness to arrange, through their representatives in New York, for such a conference as suggested at as early a date as possible; and that an agreement will be reached among themselves as to the allocation of the $650,000 payment; and that the payment of the said amount will be made in cash at the time of the consummation of the agreement.