Mr. Sullivan to Mr. Seward.

No. 49.]

Sir: I have the honor to inclose herewith copies (A and B) of correspondence had between the Colombian government and myself on the subject of the Panama commercial war tax.

The international law, as quoted by Secretary Martin, is equitable and just, but, in my opinion, does not well apply to the case at issue. This law presupposes that the native business men of any civilized country exceed in numbers the foreigners who may reside and do business in it. In the State of Panama all the merchants are, I believe, foreigners, principally citizens of the United States, and are to bear the whole of whatever taxation which every successful revolutionist may choose to levy upon them to aid him in his, sometimes, unlawful purposes.

While the government of Panama was trying to sustain one class of revolutionists the government of Bolivar was endeavoring to uphold another, and levied very heavy contributions on foreign merchants for that purpose. Every three or four years this practice has been ruinously pursued by lawless persons in Colombia, and it is high time that it should, so far as our people doing business here are concerned, in some way or other, be restrained.

[Page 1048]

As there have been no claims as yet presented through me to this government, founded upon said decrees or seizures, and as there is plenty of time to review this subject and fix upon a reasonable rule in the case by which I shall be governed, I have thought it better to submit the matter for the President’s consideration and yours, than for myself to reply to Secretary Martin’s said answer.

His answer is not altogether a very unfavorable one.

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

PETER J. SULLIVAN.

Hon. William H. Seward, Secretary of State, Washington, D. C.

A.

Mr. Sullivan to Señor Martin.

Sir: I have to inclose to your excellency a copy of instructions addressed to me on June 13, 1867, by the honorable Secretary of State of the United States of America, on the subject of the rights and obligations of citizens of the United States of America residing in the United States of Colombia.

Having previously read these instructions to your excellency, I now beg leave to entreat you to receive with favor the wisdom and good intentions which they impart towards your country; and believe me to be, sir, your excellency’s most obedient servant,

PETER J. SULLIVAN.

His Excellency Señor Doctor Carlos Martin, Secretary of the Interior and Foreign Relations U. S. C.

B.

[Translation.]

Señor Martin to Mr. Sullivan.

Mr. Minister: I had the honor duly to receive the communication of your honor dated the 27th of last August, marked No. 32, and inclosing the instructions issued on the 13th of last June by the department of the United States of America to your honor, as resident minister to my government, and to the different American consuls and commercial agents in the Colombian Union.

As these instructions refer to certain acts of the government of the sovereign State of Panama, the executive has had to wait for official and detailed information of said proceedings before handing to your honor the reply which I herewith have the honor to address to you to-day. At the same time as I give this answer permit me to make a short résumé of the occurrences which have given rise to the claims made by certain North American citizens before the Department of State at Washington, so as to be able to duly appreciate the justice of said claims and the spirit of the instructions referred to, which were the result of said claims.

The 24th of October, 1866, the legislative assembly of the sovereign State of Panama, issued the seventeenth law granting certain authorization to the executive of the State; in therein is found, in the second paragraph of the first article, that which authorizes the raising, to double the value in the present year the commercial contributions, peruana, &c.; and the third paragraph of the same article first, which allows the State executive to anticipate the collection of the rents and contributions of the State, so as to be prepared for any eventuality which might produce the derangement of public order, the executive of Panama issued the decrees of the 11th of April and 24th of May last, making use of the authorities granted by said law seventeenth of the State.

These decrees were matter for the consideration of the foreign consuls residing on [Page 1049] the isthmus when they replied on the 27th of May last to a circular note of the 25th of the same which was addressed to them to inform them that, as General Mosquera had dissolved the national congress, refused to recognize sundry acts of said body, and declared the republic in a state of war, the President of Panama would not admit any force which might be sent by him to the isthmus so long as the situation which then threatened the country might last.

Mr. Francis W. Rice, consul of the United States of America, in giving with his colleagues the above mentioned reply of the 27th of May, manifested that such decrees of the government of Panama were contrary to public treaties and to the law practice of nations.

In view of these opinions, which were not accepted by the President of Panama, he, the President, hastened to call a meeting of various foreigners, so as to agree with them upon some measure which, might replace that which they looked upon as prejudicial to their interests; but the arrangement which was sought by the President of Panama in the civilizing spirit of conciliation could not be arrived at, and he was obliged to order that his previous disposition should be carried into effect.

Afterwards he accepted a proposition which was made to him, that the quarter which commenced on the 1st of June should be paid in advance, reserving to himself the right to raise the contribution to the limits of the said seventeenth law in case of need, after temporarily suspending the execution of said decrees.

This is the truth of the circumstances, and on such acts, supported by trustworthy documents in possession of the national executive, do I now proceed to examine the claims referred to, and to take into consideration the instructions which your honor has been pleased to pass me a legalized copy of.

This appreciation would appear useless in consequence of the suspension of the execution of the executive decrees of the government of Panama issued in compliance with a law of the assembly; but as this is a precedent which may in future cause new questions, the federal executive thinks it might be examined.

The seventeenth law of the sovereign State of Panama, and the decrees of the 11th of April and 24th of May last, in the execution of said law, are not contrary to the national constitution, which allows the States to establish contribution to provide for the expenses, so long as the limit set down in the eighth article of our fundamental law is not exceeded.

The treaty of amity, navigation, and commerce, existing between the two countries, was not violated in any way by said acts, there not being any stipulation exempting the citizens of North America from the payment of ordinary contributions of the class now under discussion.

Quite on the contrary, in the third article it is stipulated that the citizens of either of the contracting countries may reside and trade in the territory of the other, enjoying the same rights, privileges, and exemptions as the natives, but subject to the laws, decrees, and usages to which native citizens are subject.

There is now only to inquire if these acts of the government of Panama are contrary to the general stipulations of international law. The general rule is saving only when restrictions are imposed by public treaties, that foreign inhabitants have to bear the burden which the laws impose upon the citizens without any other condition than that of the burden of services; and obligations of this description comprise equally citizens and foreigners.

In accordance with the above prescriptions of international law, the Colombian law of the 21st of June, 1866, defining the condition of foreigners, their rights and obligations, concedes to domiciled foreigners the same guarantees and rights as the Colombians in their persons and property, saving likewise the stipulations of public treaties.

And these prescriptions of international law, which are ratified in the Colombian law, are the expression of a very just obligation. If foreigners come to our country for their convenience, under the protection of our laws, it is natural that if the progress of the country should require it, as actually happened, for the preservation of public order and the support of the authorities, and if this progress should reach them in their private affairs, that they should lend their aid and contribute in a just and equal measure to the preservation of public order, and the support of these authorities who protect them.

This doctrine, wholly equitable, just, and in accordance with international law, is that which is accepted and sustained by the government of the Union in cases of the class to which I have referred.

The instructions which your honor has been pleased to communicate to me, appear to result from a report somewhat partial, and it is on that account, without doubt, that the American government, considering said contributions, destined for war purposes, judged that the treaty between the two countries, as likewise the Colombian constitution and international law, were a just support to the claims. Proceeding on these premises, his excellency Mr. Seward, the Secretary of Spate’s said instructions, that the citizens of the United States of America, resident in Panama, were to refuse the payment of said contributions, except under protest, and his excellency the [Page 1050] Secretary of State adds, that after it is fully known the character of the conflict, his government will determine upon the question that might be presented.

Evidently the instructions alluded to were dictated by a spirit of foresight and benevolence for this government, which is appreciated in a high degree by the President; but having been issued under suppositions distinct from the actual facts, and from reports which attributed to the acts of the government of Panama motives and irregular tendencies which did not exist, the national government considers that it ought to place said acts in their proper light, so that the minister, being better informed, may manifest to his government the true facts, that there may be no deception as to the legality of the action of the Panama government with reference to the decrees about the commercial contribution.

The executive considered just the instructions issued by his excellency the Secretary of State of the United States of America with respect to the observance of certain blockades. The federal government, as soon as it received advice of the blockade of the port of Santa Martha, disapproved in the most explicit manner of said acts, in consequence of its having been decreed by incompetent authorities to decree and carry into effect, and for other motives. Timely orders were given in consequence of the blockade, and the necessary measures taken that said orders should be obeyed, as they were accordingly.

Having terminated the reply which the instructions communicated by your honor to my department required, I have the honor to subscribe myself General Sullivan’s obedient and faithful servant,

C. MARTIN.