811.114 St. Pierre-Miquelon/471: Telegram

The Secretary of State to the Ambassador in France (Bullitt)

109. Your No. 271, February 24, 7 p.m. Treasury Department considers proposal to leave the decree of April 9, 1935, in full force and effect satisfactory. While there has been a gradual escape of alcohol from St. Pierre-Miquelon in violation of the present decree, on the whole it has worked out fairly well and is in line with similar bonding regulations in effect in other places adjacent to the coast of the United States, such as Newfoundland, Canada, the British West Indies and Mexico.

Treasury Department believes that any modification of present decree, even though surrounded with apparently satisfactory safeguards, would be interpreted by smugglers as a change in the restrictive policy which has been in force since the promulgation of the present decree and might lead to increased illegal activity.

We are happy to note that the Administration at St. Pierre-Miquelon will receive instructions to supervise the importation of alcohol in order to prevent the building up of new stocks and that the manufacture of alcohol in the Islands will not be permitted.

Secretary Morgenthau asked me specially to express to you his very great appreciation of your fine cooperation and helpfulness in this matter.