Mr. Marsh to Mr. Seward.

No. 166.]

Sir: I have the honor to enclose herewith a translation of a circular from the ministry of foreign affairs sent to this legation by way of reply to Mr. Clay’s note of the 26th September, 1866, relative to the liability of American citizens residing in Italy to assessment for forced loans, together with a copy of a note which I addressed to the ministry in answer.

I was assured at the foreign office yesterday that proceedings against American residents in Italy for the collection of assessments under the royal decree would be suspended a sufficient time to allow of action on the part of foreign governments respecting the subject.

I have the honor to be, sir, most respectfully, your obedient servant,

GEORGE P. MARSH.

Hon. William H. Seward, Secretary of State.

Note from the ministry of foreign affairs.

[Translation.]

While the government of the King was occupied with the regulations necessary for the collection of the national loan promulgated by royal decree of the 28th of July last, several legations addressed notes to the royal ministry of foreign affairs in order to obtain for their respective citizens exemption from contribution to this loan, basing their claim upon treaty stipulations between their governments and the government of the King.

The royal minister of finance has had the question under consideration, and, while he recognizes that the exemption invoked is guaranteed to some of the states by treaty, for others it can only be claimed on a liberal interpretation of the article which stipulates the treatment of the most favored nation, or by the fact of reciprocity established by common accord on the subject.

From this consideration the royal minister of finance has decided that for foreigners belonging to the first category the exemption be accorded in full, and that the same favor be extended to the subjects of the states in the other categories on the condition that the respective legations shall file with the government of the King an official declaration to the effect that the governments which they represent engage to observe in like case the principle of reciprocity to the benefit of Italian subjects residing in their territories. As the measures taken for the collection of the loan cannot be interrupted, it is essential that this declaration should be transmitted as early as possible to the ministry of foreign affairs of his Majesty the King of Italy.

Note addressed to the minister of foreign affairs.

Mr. Minister: I have the honor to acknowledge the receipt of a circular note from the ministry of foreign affairs, under date of the 5th of October, 1866, in relation to the liability of the subjects and citizens of foreign states residing in Italy to assessment for the national loan ordered by royal decree on the 28th of July last, and I have lost no time in transmitting a copy of the note to my government. The case not having been foreseen, I am without special instructions on the subject, and it is of course out of my power to bind the government of the United States by a formal pledge which would exceed the usual limits of diplomatic prerogative. At the same time I have no doubt that my government will be entirely ready to secure to Italian citizens residing in the United States complete reciprocity of treatment in this as well as in all other particulars, and I trust that his Majesty’s government will, with its accustomed liberality, direct proceedings against American citizens residing in this kingdom, for the enforcement of assessments under the decree, to be stayed until the legation shall receive instructions on the subject from the government of the United States.

I pray you, Mr. Minister, to accept the renewed assurances of my most distinguished consideration.

GEORGE P. MARSH.