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purpose, although it contemplates the possibility of such

inspection in certain cases, and prescribes a penalty

where a demand for inspection is made and refused.

16.

I have to express the hope that the United

States Government will furnish me with their observations

on the foregoing suggestions, which I trust it may be

possible for them to accept. I need not assure you that

they are offered with the sincere desire to reach a

practical agreement upon this matter.

17.

Before closing this note I think it well to

remove the misunderstanding which seems to exist in the

minds of the United States Government as to the activities

of the Customs agents of Canada and the Commonwealth of

Australia in the United States. These agents of the

Dominions do not demand particulars as to costs of produc

tion of individual firms, though it may happen that on

occasions they ask whether a firm is prepared to voluntee

information on the subject. There is further this great

difference between their requests and the demands sometimes

made by the United States Customs representatives, viz.

that the sanction involved in the exclusion of a firm's

goods from the Dominion concerned does not follow on a

refusal to give the information.

I have, etc.

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