Memorandum by Mr. C. Thayer White of the Division of Commercial Treaties and Agreements

In reply to an inquiry of July 9, 1941, Miss Esgate87 stated by telephone that if the 1937 commercial agreement between the United States and the Soviet Union were continued in force without change, and without any accompanying related notes, the Treasury Department would continue to accord Soviet coal the treatment specified in the accompanying United States note of August 6, 1940. In this [Page 923] connection reference was made to the reservation in that note to the effect that exemption of Soviet coal from the excise tax is subject to possible adverse action by the courts.

Miss Esgate indicated that the matter had been checked with Mr. W. R. Johnson, Commissioner of Customs.

  1. Miss H. H. Esgate, Bureau of Customs, Treasury Department.