54 STAT.] CANADA-EXCHANGE CONTROL MEASURES-JUNE 18, 1940 2317 Agreement between the United States of America and Canadarespecting June 18, 1940 exemptions from exchange control measures. Effected by exchange of [E. . S .No. 1741 notes signed June 18, 1940; effective June 18, 1940. The CamadianSecretary of State for ExternalAffairs to the American Minister DEPARTMENT OF EXTERNAL AFFAIRS CANADA No. 84 OTTAWA, June 18th, 19,0. SIR: With reference to recent conversations between representatives of the Government of Canada and the Government of the United States of America regarding the extension to individuals ordinarily resident in Canada who are nationals of the United States and are not British subjects of certain exemptions from orders and regulations now or hereafter in force respecting the acquisition and disposition of foreign currency and foreign securities, I have the honour to propose an agree- ment concerning these exemptions in the following terms:-- Terms proposed. 1. Such individuals will be exempt from any required declara- tion or sale of, and will be permitted freely to use or dispose of, foreign currency and foreign securities held by them (in which no non-exempted resident has any beneficial interest) which were (a) acquired by them before the time of the coming into force of the Foreign Exchange Control Order, viz., before September 16, 1939; or (b) acquired by them subsequent to such time from non- residents of Canada, excluding any foreign currency and foreign securities so acquired (1) in connection with exports from or imports into Canada of property not exempted by this agreement, or (2) as the result of business carried on in Canada. 2. The foregoing paragraph shall apply to private individuals and not to corporations, companies, associations, firms or partner- ships. 3. Any of the exemptions mentioned above shall lapse if and when such individual becomes a British subject or ceases to be a United States national. 4. In the event similar exchange control measures should be enforced in the United States with respect to individuals ordi- narily resident in the United States who are nationals of Canada and are not nationals of the United States, without like exemp- tions being granted such individuals, the Government of Canada shall consider themselves released from the obligation to continue to grant such of the exemptions provided for in this agreement as may not be accorded to the said individuals. 5. "Foreign currency", as used in this agreement, is defined as meaning any currency (excluding coin) other than Canadian currency, including bank notes and other notes intended to circu- late as money in any country outside Canada and also postal notes,
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