Memorandum by the Assistant Adviser on International Economic Affairs (Livesey)

Mr. Eldon King, Deputy Commissioner of Internal Revenue, who visited the Department August 9 to discuss the relation between the pending tax bill and the Canadian taxation treaty, said he had received a note last week from Under Secretary of the Treasury Magill [Page 182] saying that the latter wished to push negotiations looking to obtaining treaties for cooperation against fiscal evasion with Canada, France and the Netherlands. This should be taken up as soon as it is possible after disposition of the pending legislation and every effort should be made to expedite the matter. The Department of State would be asked to cooperate.

Today Mr. Francis de Wolf27 tells me that Mr. King again mentioned the matter to him. Mr. de Wolf suggested that Mr. King might be able to advance the matter when he attends the session of the Fiscal Committee of the League of Nations in October. Mr. King seemed to think well of the suggestion.

Canada is prepared to go ahead actively with negotiations for a treaty regarding fiscal evasion as soon as the Canadian taxation treaty is ratified28 and the pending tax bill enacted.29 This has been publicly announced by Under Secretary Magill in connection with the hearings on the tax bill.…

  1. Of the Treaty Division.
  2. Ratification having been advised by the Senate August 6, 1937, ratifications were exchanged at Washington on August 13, 1937.
  3. Revenue Act approved August 26, 1937; 50 Stat. 813.