No. 341.
Mr. Foster
to Mr. Frelinghuysen.
Madrid, January 4, 1884. (Received January 21.)
Sir: The 5th article of the agreement for the improvement of the commercial relations of the United States with Cuba and Porto Rico, transmitted with my No. 134, of yesterday, provides for the removal of all discriminating or extra duties in this commerce, and is designed to cover any cases not specified in the preceding articles. During the negotiations which led to the agreement, my attention was called to the report of the Spanish consul at New Orleans, dated in 1876, in which he states that not only is there imposed on the cargoes of Spanish vessels arriving from Cuba and Porto Rico the extra 10 per cent, ad valorem duty, but that the vessels when they bring cargo from Cuba have to pay, in addition to the usual tonnage dues, an extra charge of $1.62½ for each ton of measurement.
I have replied that I had no information in the Legation to show that any such charge existed, and that I was satisfied no such discriminating tax was now collected on Spanish vessels. It was agreed, however, that article 5 should be understood to cover the case cited by the Spanish consul at New Orleans, as well as any other discriminating charges which might exist in the ports of either the United States or the Spanish West Indies.
Article 6 of the agreement was framed to meet the difficulties arising from the export tax in Cuba and Porto Rico. It is charged that frauds are frequently perpetrated upon the Spanish treasury by exporters of sugar and tobacco with the connivance of the custom-house officials of those islands in the evasion of the payment of the export tax levied on these two products. To enable the Spanish Government to have a check upon its own officials, it has been agreed that, whenever so requested, the collectors of customs of the ports of the United States will furnish to the respective Spanish consuls certificates of the cargoes of sugar and tobacco brought in vessels proceeding from both the Spanish Antilles. The Ministry for the Colonies, in a memorandum which it has given me on the subject, expresses its belief that the necessity on the part of the Spanish consuls to ask for such certificates will very soon be obviated, “as its object is to verify and correct the dishonesty on the part of the officials of the custom houses, if it exists in Cuba, as some charge, and as soon as these officials learn that the shipments of sugar and tobacco are compared on their arrival they will cease to commit frauds on the revenue, if they practice them.”
I respectfully suggest that the contents of this dispatch be made known to the Department of the Treasury for its information and action.
I am, &c.,