811.512356 Double/29

The Secretary of State to the Netherlands Minister (Van Haersma de With)

Sir: I have the honor to refer to your note No. 1802 of May 13, 19384 concerning the conclusion of an agreement in matters of taxation between the United States and the Netherlands and to inform you that a communication concerning this matter has been received from the Treasury Department.

In its communication the Treasury Department states that it is agreeable to the negotiations referred to taking place any time during June 1938. It further states that Mr. Eldon P. King, Special Deputy Commissioner, Bureau of Internal Revenue, has been designated to conduct the negotiations on behalf of the Treasury Department. I may add that so far as this Department is concerned, any time in June [Page 609] will be agreeable for the negotiations in question to take place. The Department has designated Mr. Francis Colt de Wolf of the Treaty Division and Mr. Horace White, Jr. of the Office of the Adviser on International Economic Affairs to participate in the forthcoming negotiations.

With respect to the request of the Netherlands authorities relating to the suspension by the United States revenue authorities of claims pending for United States taxes against Netherlands firms, the Treasury Department suggests that, in view of the fact that the identity of the taxpayers concerned can be learned only by a canvass of various activities within the Bureau of Internal Revenue involving numerous administrative groups, and since such matters as limitation points may be involved in specific cases, it would be desirable for the Netherlands authorities to furnish the Treasury Department with a list of the names and addresses of the Netherlands firms involved. With this information in its possession the Treasury Department will give careful consideration to the request of the Netherlands authorities. In the circumstances I shall take pleasure in transmitting to the Treasury Department any information on this point which you may be in a position to obtain from your Government.

The Department has been informed by the American Legation at The Hague under date of May 6, 19385 that the Netherlands delegation to the forthcoming negotiations will consist of Dr. Albarda, Section Chief in the General Treasury Department of the Ministry of Finance, and Mr. J. B. Y. Peeters, Section Chief in the Direct Tax Division of the Ministry of Finance, and possibly one or two experts, and that in all probability the delegation would leave for the United States almost immediately after the official announcement had been made. The Department is now instructing the American Legation at The Hague to request the competent Netherlands authorities to advise the Legation as soon as possible of the exact composition of the Netherlands delegation and of the date of their arrival in the United States.

Accept [etc.]

For the Secretary of State:
R. Walton Moore
  1. Not printed.
  2. Despatch No. 314, May 6, not printed.