57.

asked the Chancellor of the exchequer what is the position in regard to the non-taxation by the United States of America of ships of those countries which were willing to extend reciprocal exemption of taxation of the United States ships; and if any other countries besides ourselves have accepted it?

Mr. GRAHAM:

I understand that exemption from Income Tax is granted by the United States of America under the provisions of Section 213 (8) of the Revenue Act, 1921, in respect of shipping of the following countries, which either impose no Income Tax or grant a reciprocal exemption, namely

• Argentine Republic.
• Bulgaria.
• Denmark.
• Egypt.
• Iceland.
• Netherlands.
• Norway.
• Paraguay.
• Persia.
• St. Lucia.
• Siam,
• Sweden.
• Venezuela.

Negotiations in respect of the reciprocal exemption from Income Tax of British and United States shipping are still proceeding.

Can the hon. Gentleman say whether this is likely to come into force at an early date?

Mr. GRAHAM:

I think I should hold out false hopes if I indicated anything of the kind. I am afraid that the negotiations will take a little longer than we expected.

As the offer was made in America and passed by this House, surely it could come into force at once.

Mr. GRAHAM:

It is impossible in reply to a question to go into details, but there are other considerations that have to be taken into account, and these I shall be glad to explain personally to my hon. Friend.