Papers Relating to the Foreign Relations of the United States, Transmitted to Congress with the Annual Message of the President, December 2, 1872, Part I

No. 191.
Mr. Francis to Mr. Fish.

Legation of the United States,
Athens, March 2, 1872. (Received March 28.)

No. 38.]

Sir: I have the honor to transmit herewith copies and translations of correspondence between the Greek minister of foreign affairs and myself on the subject of the tariff-duty imposed by the United States Government upon dried currants, the chief article produced by Greece for exportation.

I have little to add to the facts elicited by this correspondence. It will be seen that, in 1869, with our tariff of 5 cents per pound upon dried currants, the exportation from Greece to the United States was only 2,438,000 pounds. Under the reduced duty of 2½ cents per pound, the exportation was increased in 1870 to 7,159,500 pounds, and in 1871 to 10,709,400 pounds.

It is believed that a further reduction of the duty to one cent and a half per pound will have the effect to increase importations, so that the revenue of the United States will be augmented rather than diminished, at the same time an encouragement will thus be afforded to commercial enterprise between Greece and the United States advantageous to both countries. Thus American petroleum, largely consumed here, and now brought from Germany, Constantinople, and Smyrna, may be imported direct from the United States at a lower price, so increasing the consumption. Agricultural implements, machinery, &c, may also be shipped directly from America to Greece by ships that take out Greek products for our markets.

I do not hesitate, after a careful consideration of this subject, to express it as my deliberate judgment that beneficial results to the United States as well as to Greece will be realized by a reduction of the tariff upon dried currants to one cent and a half per pound.

I am, &c.,

JOHN M. FRANCIS.

[Inclosure 1 in No. 38.—Translation.]

Mr. Zaïmis to Mr. Francis.

Ministry of Foreign Affairs,
Athens, December 10, 1871. (December 22.)

Mr. Minister: A question of great importance to Greece is the development of the commerce of dried currants.

A part of this product is exported to the United States of America, and for some time past has been an object of commerce quite active between the two countries.

Although limited for the time being, this commerce is susceptible of a much larger development in the future. What appears to hinder this development is the duty on importations with which it is now burdened in the ports of the Union.

The American Government, moved by a sentiment of good feeling toward Greece, reduced this duty in 1870; but this reduction appears to be insufficient to encourage commercial enterprise, and to facilitate the shipments of this product to the United States, in the undoubted interest of both countries.

We know that previous to the imposition of the high duty on importation which took place during the civil war, cargoes of dried currants were shipped directly from Greece to America. These shipments ceased after the vigorous application of the new tariff, and the export of dried currants to the United States was almost annihilated. In fact, we have known cargoes of dried currants to be shipped for England which English enterprise had tried in vain to-introduce into the United States.

But, with the reduction of the duty on importation, direct shipments from Greece were resumed. It follows that to-day the American Treasury derives more profit from the importation of this article than under the former prohibitive tariff, and that a new reduction of the duty will bring about an immediate increase rather than a diminution of the receipts of the custom-house.

Looking at the question from another stand-point, one can easily satisfy himself that a further reduction, while bringing relief to the cultivators of currants, will not fail to promote the interests of industry and commerce in the United States.

Greece, Mr. Minister, being eminently an agricultural country, supplies herself from abroad with most of the manufactured articles necessary for her consumption.

If a new reduction of the duty on dried currants is made, direct shipments from Greece to the United States will be multiplied, and consequently the commercial interests of the two countries will be greatly promoted. The necessary result will be a mutual interchange of products; for Greece will supply herself with a large number of articles which are purchased to-day in the markets of France, England, Germany, and other countries.

It is, therefore, for the advantage of the American Government to take into consideration a proposition that promises to satisfy the needs of commerce and give more freedom to its enterprises. It is therefore with confidence, Mr. Minister, that I ask you to intercede with your Government that it may be pleased to propose to Congress, and, if possible during the present session, a new reduction of the duty in question that shall be more equitable, and more in keeping with the needs of commerce. The hearty friendship for Greece, of which the United States has given unequivocal proofs, encourages me to hope that the wishes now expressed will be favorably received. Be pleased to accept, Mr. Minister, the assurances of my high consideration.

PH. A. ZAÏMIS.

[Inclosure 2 in No. 38.]

Mr. Francis to Mr. Zaïmis.

Legation of the United States,
Athens, December 26, 1872.

Mr. Minister: I have the honor to acknowledge your dispatch of the date of December 10–22nd instant.

You refer to the tariff now imposed upon dried currants by the United States Government, and argue that a still further reduction of the duty imposed upon that article will have the effect to augment the commerce between the United States and Greece, and redound to the mutual advantage of both countries. I shall make haste to transmit a copy of your communication to my Government, from which it will, no doubt, receive the consideration its importance demands.

But, in order to enable me to present the matter as fully as I desire, I should be glad to have furnished me certain official information here, namely:

1. The aggregate in pounds of the shipments of Zante currants to the United States from Greek ports the year previous to the reduction of the duty in 1870 from 5 cents to 2½ cents per pound.

2. The aggregate of the shipments of Zante currants to the United States from Greek ports during the past year, or up to the latest official returns.

3. The average price of Zante currants at the ports of their shipments in Greece.

4. The duties imposed by the Greek government upon American petroleum, upon labor-saving agricultural implements, machinery, fire-arms, cotton manufactures, butter, cheese, and bacon.

I make the inquiry in respect to the custom-duties imposed by the Greek government upon the articles named, with a view of learning the possible opportunity for return exportations from the United States, in consideration of increased importations of currants from Greece.

Accept, Mr. Minister, assurances of my high consideration.

JOHN M. FRANCIS.

[Inclosure 3 in No. 33.—Translation.]

Mr. Bulgaris to Mr. Francis.

Ministry of Foreign Affairs,
Athens, February 18, 1872.

Mr. Minister: By your letter, dated 26th December, 1871, to my predecessor, you have expressed the desire to obtain information as to the quantity of Corinthian currants forwarded from Greece to the United States during the year 1870, and in respect to the Greek importation duties upon petroleum and other products of American industry.

Mr. Zaïmis hastened to ask for this information from the department of finance, and my colleague in that department has sent me in response the dispatch I have the honor to transmit herewith.

You will observe, Mr. Minister, that the importation of Corinthian currants to the United States was greatly increased from the year 1809 to 1871, inclusive. The increase promises to continue, according as import duties in the United States are diminished.

From the dispatch above mentioned, you will perceive that other products of Greece have also been sent to the United States.

I am, then, justified in the belief that if the American Government, in its solicitude for the well-being of Greece and in the interest of commerce, should still further reduce the import duties upon the Corinth currants, which duties are still very high, the commercial intercourse between the two countries will be largely augmented, and the two people, already so intimately related by sentiments of mutual sympathy, would realize the large benefits resulting from the increase of commercial enterprise.

Thus it only remains for me to reiterate the request that you will intercede with your Government, in the hope of obtaining a reduction of the import duties in question.

Be so kind as to accept, Mr. Minister, the assurance of my high consideration.

D. G. BULGARIS.

[Inclosure 4 in No. 38.]

Minister of finance to minister of foreign affairs.

Athens, February 9—21, 1872.

Mr. Minister: In restoring to you under this envelope your note of the date of December 28, 1871, upon the communication of the minister of the United States of America, we have the honor to report these facts, which have been derived from the most exact information:

There has been exported from Greek ports to the United States the following quantity of Corinth currants:

In 1869	2,438,000	pounds.
In 1870	7,159,500	pounds.
In 1871	10,709,400	pounds.

The average cost of the currants ready to be shipped in the ports of the Peloponne sus was—

*For 1869	209	drachmas,
For 1870	244	drachmas,
For 1871	199	drachmas,
For each thousand pounds.

The average cost of the currants from the Ionian Islands was as follows:

For 1869	138	drachmas.
For 1870	188	drachmas.
For 1871	150	drachmas,
To each thousand pounds.

The following duties are imposed by the Greek government upon the articles named:

• Petroleum oil at the rate of 20 leptas per oke, (equal to about 3 pounds.)
• Butter at the rate of 30 leptas per oke.
• Cheese at the rate of 40 leptas per oke.
• Lead at the rate of 15 leptas per oke.
• For fire-arms, see printed tariff, inclosed.

For cotton and cotton manufactures, agricultural implements, machinery, &c, also see furnished tariff enclosed on agricultural implements and machines, and complicated machinery for manufacturing generally, no import duties are exacted.

In 1871 there was sent to America 157,410 okes of raw wool, of the value of 284,089 drachmas.

If you desire further information, be so kind as to inform us, that it may be promptly furnished the minister.

PAPAMICHALOPONIO,

1. In the figures of currency calculate one drachma as 17.275 cents. One hundred leptas make a drachma; six leptas one cent.