No. 540.
Mr. Evarts to Mr. Moran.

No. 168.]

Sir: A dispatch from Mr. Consul Dabney (No. 202) of the 11th ultimo has again drawn attention to the terms of your No. 86, relating to the acquirement for the United States, through proper application to the Portuguese Government, of the tariff privileges of Annex B, of the Franco-Portuguese treaty of 1866. You say that by the law of the Cortes of January 26, 1876, the Government of His Majesty “is authorized to extend to Great Britain and all other countries where Portuguese products enjoy the benefits of the most-favored-nations clause, the benefit of the said Annex B.”

Referring to the conclusions of your No. 122 on this subject, it would seem that the Department has not heretofore felt it of sufficient importance to make special application to be admitted to the above privileges, to which, by the terms of the treaty with Portugal of 1840, it is evident that the United States is entitled, but it has now been determined, more particularly in view of the increasing trade of this country, that so long as such an application appears to be held by that government, as a necessary preliminary to an extension to the United States of the rights claimed under the treaty of 1840, the proper action need not be longer delayed.

In connection with this instruction, I append hereto a copy of a letter on the subject from the Secretary of the Treasury.

I am, &c.,

WM. M. EVARTS.
[Inclosure in Mr. Evarts’s No. 168.]

Mr. Sherman to Mr. Evarts

Sir: I have the honor to acknowledge the receipt of your letter dated the 17th instant, inquiring whether discriminating duties are levied on merchandise or vessels coming from Portugal, and also whether this department considers it advisable that the Government of Portugal should be requested to extend the scope of its existing commercial treaty of 1866 with France to this country.

You state that under said treaty France was apparently placed on a more favorable footing as regards the importation of numerous articles into Portugal than any other country, and that under the provisions of the treaty between Portugal and the United States, made in 1840, as well as under a law of the Cortes of Portugal extending the [Page 855] benefits of the treaty with France to all countries which do not impose differentia duties upon importations from Portugal, this country is entitled to participate in the benefits conferred upon France.

It appears, however, that this privilege has not been claimed, and that the question is under consideration by you whether the representative of the United States at Lisbon shall be instructed to address the Portuguese Government upon the subject and claim such privilege.

In reply, I beg leave to state that section 2501 of the Revised Statutes requires that there shall be levied on all goods, wares, and merchandise of the growth or produce of the countries east of the Cape of Good Hope (except wool, raw cotton, and raw silk as reeled from the cocoon, or not further advanced than tram, thrown, or organzine), when imported from places west of said cape, a duty of ten per centum ad valorem in addition to the duties imposed on any such article when imported directly from the place or places of its growth or production.

With the exception of the duties which might be levied under this provision of law on importations of the character mentioned, from Portugal, no discriminating duties are levied in the United States, either on vessels or their cargoes coming from that country, and as you state that importations into Portugal from this country ought to pay from one-third to one-half less in the way of dues to that country than they do, this department is of opinion that measures should be taken to obtain from the Portuguese Government the benefits to which the United States seems to be entitled.

Very respectfully,

JOHN SHERMAN,
Secretary of the Treasury.