811.114 Canada/5040½

Memorandum by Mr. James C. H. Bonbright of the Division of Western European Affairs

Mr. Armour21 telephoned from Ottawa this morning to say that a day or two ago the Canadian Prime Minister, Mr. Mackenzie Bang, had spoken to him very forcibly with regard to Section 403 of the Treasury’s proposed liquor bill. Mr. King said that if this Section was passed, Canada would be severely penalized and that our liquor concession would be very largely nullified as far as Canada is concerned and the benefit thereof would only accrue to Great Britain. He felt particularly strongly about it because of the cooperation which his own former administration (1921–30) had shown in helping us enforce our liquor laws in the prohibition era, and referred especially to his Government’s amendment of the Canadian Export Act in 1930 (which forbade the issuance of clearance papers to vessels carrying liquor destined to countries into which the importation of liquor was [Page 799] prohibited by law) and to his assistance in getting the British to consent to the twelve-mile limit. Mr. King felt that if Congress passed the present bill with Section 403 left in it we would be making a very poor return for his previous kindness.

  1. Norman Armour, Minister in Canada.