Executive Order 11304—Amending Executive Order No. 11175 Relating to the Exclusion For Original or New Canadian Issues Where Required for International Monetary Stability

WHEREAS I have determined that the exclusion from the interest equalization tax, to the extent provided in this order, is necessary to avoid such consequences for Canada as to imperil or threaten to imperil the stability of the international monetary system;

Now, THEREFORE, by virtue, of the authority vested in me by section 4917(a) of the Internal Revenue Code of 1954, as added by section 2 of the Interest Equalization Tax Act, approved September 2, 1964 (Public Law 88-563), by section 301 of title 3 of the United States Code, and as President of the United States, it is ordered that Executive Order No. 11175, dated September 2, 1964, be, and it is hereby, amended to read as follows:

SECTION 1. Except as provided in section 2, the tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to the acquisition by a United States person of stock or a debt obligation of Canada or a political subdivision thereof, any agency or instrumentality of Canada, any corporation, partnership, or trust organized under the laws of Canada or a political subdivision thereof, or any individual resident in Canada, if such stock or debt obligation is acquired as all or part of an original or new issue as to which there is filed the notice of acquisition prescribed by the Secretary of the Treasury or his delegate.

SEC. 2. The exclusion from tax provided in section 1 shall not apply to the following:

(a) Any acquisition of stock or a debt obligation of a company registered under the Investment Company Act of 1940 (54 Stat. 847; 15 U.S.C. 80a-1 to 80a-52); and

(b) Any acquisition of stock or a debt obligation of a Canadian corporation, partnership, or trust formed or availed of for the principal purpose of acquiring stock or debt obligations of a Canadian or other foreign issuer or obligor, other than stock or debt obligations described in section 1 or in section 4916(a) of the Internal Revenue Code of 1954.

SEC. 3. The provisions of sections 1 and 2 shall be applicable to any acquisition by a commercial bank of a debt obligation described in such sections, and section 3 of Executive Order No. 11198, dated February 10,1963, is hereby superseded.

SEC. 4. The Secretary of the Treasury or his delegate is authorized to prescribe from time to time regulations, rulings, directions, and instructions to carry out the purpose of this order.

SEC. 5. This order shall be effective upon its filing for publication in the Federal Register and shall apply to all acquisitions made during the period this order is in effect.

LYNDON B. JOHNSON

The White House

September 12, 1966