Will you please immediately inform the United Kingdom authorities that in the forthcoming tariff negotiations the Canadian Government will negotiate on the basis of the Canadian Customs tariff, with respect to both the British preferential and most-favoured-nation rates, as it existed immediately prior to the war, namely July 1, 1939.

Please inform them further that in accordance with the procedure agreed at the Preparatory Committee Meeting in London, we will notify the United Nations on January 9th.

In addition please advise them that the Minister of Finance intends to issue in Ottawa on January 11th the following Press release:

"At the meeting of the Preparatory Committee of the International Conference on Trade and Employment held in London during October and November, it was agreed to recommend to the seventeen governments represented that they should enter into reciprocal and mutually advantageous negotiations directed to the substantial reduction of tariffs at the second session of the Preparatory Committee which is to begin on April 8th in Geneva. The Governments concerned have been asked to inform one another through the United Nations, as soon as possible, of the base date from which they intend to negotiate. The Canadian Government has informed the United Nations that it will negotiate on the basis of the Canadian Customs Tariff, with respect to both the British Preferential and Most Favoured-Nation rates, as it existed immediately prior to the war, namely, July 1, 1939.

"In 1940, many British preferential rates were temporarily eliminated, or substantially reduced below the rates in effect in 1939, as a wartime measure under the War Exchange Conservation Act. As provided under this Act, these reductions are to expire on the date of the issue of a Proclamation under the War Measures Act declaring that a state of war no longer exists or on such earlier date as may be fixed in a Proclamation of the Governor in Council. In view of the impending tariff negotiations and the obligation to inform other governments of the base date from which we will negotiate, an Order-in-Council has been passed providing for the issue of Proclamation on June 30th, 1947, terminating the War Exchange Conservation Act, 1940. It is hoped that by June 30th next substantial progress will have been made in the trade discussions. The future tariff relations with the United Kingdom and with the other countries represented at the Geneva Trade Conference will be determined by the outcome of the negotiations."

We are similarly advising other Commonwealth countries.

¹Voir le volume 12, les documents 602-604./See Volume 12, Documents 602-4.