No. 110.
Mr. Morton to Mr. Frelinghuysen.

[Extract]
No. 620.]

Sir: On the 13th of August I telegraphed you that after further conferences with the minister of posts and telegraphs he had substantially agreed to the following terms:

(1)
To authorize the Commercial Cable Company to reduce its rates without notice and to re-establish the regular rates.
(2)
Rates between any given points in the United States and France to be the same as between that point and any European country.
(3)
Option between the clause giving the right to the French Government to cancel the privilege of lauding upon one year’s notice, but with the pledge that this right will not be used before the 12th of January, 1889, when the monopoly given to the Submarine Company expires, or the general clause inserted in all French concessions stating that the Government will have the right at any time to suspend or to withdraw the right to use the line conceded without being bound to pay any indemnity or to reimburse any cost.

* * * * * * *

As the terms herein accepted were not entirely satisfactory to M. de Castro, one of the two representatives here of the Commercial Cable Company, I telegraphed you the same day as follows:

Representative of Cable Company here objects to the limit of 1889, and would prefer the general clause under which French Government has the right to revoke at any time concession made, provided it is stated that this clause is applicable to all existing lines. I shall see if this can be obtained.

[Page 172]

On the 29th, after many interviews and conferences with the high officials of the postal and telegraphic departments, M. Cochery being absent, I sent you by cable this dispatch:

Frelinghuysen, Secretary, Washington:

Referring to my telegram of August 23, stating that the representative of the Cable Company objected to the limit of 1889 and preferred the general clause under which French Government has the right to revoke at any time concessions made, provided it is stated that all French and foreign telegraph companies holding a French concession are subjected to this condition, I have to report that the minister of posts and telegraphs is willing to address me an official communication containing this statement. The minister explains that the right here claimed is not to be used unless under extreme emergencies, but that it is one no state can renounce; it is a high police right recognized by international law and belongs to the United States as well as to all nations. This arrangement seems to be quite satisfactory to the representative of the Cable Company here, at whose request I have also asked and obtained the drivilege that the rates may be raised to 2.50 francs instead of 2 francs.

I supposed that everything was then settled, so far, at least, as the French administration was concerned. This was my understanding, as well as yours, and on the 1st of September you instructed me to accept, under reserve, the proposition made. Your telegram of the 1st September was translated as follows:

Under the circumstances you may accept French proposition stated in your telegram of the 29th instant. If agreeable, cable representative, but state that you reserve all right to complete reciprocity which the United States may have, leaving that as subject for future discussion, without prejudice to the United States, should occasion arise.

FRELINGHUYSEN.

Before complying with this instruction I deemed it advisable to recall to the minister of posts and telegraphs the terms agreed upon between his department and the legation, and I accordingly addressed him on the 6th instant the following letter, which was approved by M. de Castro:

Legation of the United States,
Paris, September 6, 1884.

To his Excellency Monsieur Cochery,
Minister of Posts and Telegraphs, &c.:

Sir: Consequent upon the explanations which were exchanged between your department and this legation, with reference to the conditions to be fulfilled in order to have the right of landing upon French soil the cables of the Commercial Cable Company, it was finally arranged—

(1)
That the American company may, without previous authority, either increase its rates to 2.50 francs per word or reduce them to a lower price.
(2)
Should the reduction of rates made by the company be caused by unusual circumstances, such, for instance, as a war of rates, the company shall have the right at any time to recur to its usual rates.
(3)
That the rates charged between a given point of the United States and France shall be the same as those charged between this same point and any European country.
(4)
That all the American cables between France and Great Britain shall be subject to the rules of the London convention.
(5)
That the specifications of the Commercial Company shall contain the general clause inscribed in all French telegraphic concessions, by which the Government of the Republic reserves to itself the right to suspend or revoke at any instant the concededline, but that you would address me a letter, staging that all telegraphic land lines or submarine cables conceded by France are subject to this condition.

Ths condition, you assured me, is more a matter of form than of consequence, and is only a recognition of a right of high police which belongs to every Government, but that this right is one of which no use would be made except under extraordinary circumstances, and that the French Government has neither the intention nor the desire to profit by the same to hinder or prejudice the Commercial Company.

In accepting these conditions I reserve all right to complete reciprocity which the United States may have, leaving that question as a subject for future discussion, should occasion arise, without prejudice to the United States.

Awaiting your confirmation of this understanding,

I have, &c.,

L. P. MORTON.

[Page 173]

When this letter was written, M. Cochery was still absent. Upon his return to Paris, he requested Mr. Vignaud to call, and declared to him very frankly that it was impossible for him to write to me in his offieal character a letter by which he would assent to the propositions set forth in my communication, as he could not do so consistently with his previous engagements and the rules of his department.

After two long conferences with Mr. Vignaud, he finally agreed to the following memorandum, which states exactly what he is now willing to do. This memorandum was reduced to writing by Mr. Vignaud and submitted to M. Cochery, who approved it.

memorandum.

With reference to the right of landing in France the cables of the Bennett-Mackay American Company for which the Government of the United States has made application to the Government of the Republic, the minister of posts and telegraphs has had the goodness to furnish the following verbal explanations upon various points of the specifications of this company.

The minister of posts and telegraphs consents that the rate of dispatches, instead of being fixed at 2 francs, should be increased to 2.50 francs In case a decrease of the rates should take place, the minister, while reserving his absolute right of opposing any increase, explained that, as a rule, he never does so oppose when a decrease has been brought about by the necessity of fighting against the proceedings of a competition.

The minister also explained that in reserving the right of the administration to suspend or to put an end to the right of landing, he only conforms to a general clause imposed without distinction upon all the present concessions; he added, that even the Pouyer Quertier Company, by the fact of there not being a date fixed for the termination of its concession, is by virtue of French law and jurisprudence subjected to limitations.

The minister further stated that it should be understood (1) that the rates charged between any points whatever in the United States and France shall not be higher than those charged between this same point and any of the European countries, and (2) that the cable, of which the right to land is applied for, and which connects France and the United States after touching at a point in Ireland, shall be submitted to the regulations of the London convention.

Finally, the minister said, that to give to the United States a proof of his good will he consents that the concession granted to the American company shall in no case be withdrawn before the 12th January, 1889, upon which date the monoply of the Submarine Company expires.

September 16, 1884.

In his conversation with Mr. Vignaud, M. Cochery dwelt at length upon his desire of complying with our request and of extending to the Commercial Cable Company all possible facilities, but he insisted that it would be quite improper for him to state in writing that the police right of revoking a telegraphic concession, which he considered essential to every Government, will not be used under ordinary circumstances, although such is the fact.

You will observe that although he formerly emphatically declared that no Government could yield the police right to revoke a telegraphic concession, and still professes that such right is necessary to every Government, he now assents to your conditions, as stated in your telegram of August 23, that under no circumstances will he avail himself of this right before 1889.

As this matter does not seem to be as urgent now as it was before, I shall await your instructions before taking any further steps in the premises.

I have, &c.,

LEVI P. MORTON.