No. 343.
Mr. Foster
to Mr. Frelinghuysen.
[Extract.]
Legation of
the United States,
Madrid, January 23, 1884.
(Received February 11.)
No. 155.]
Sir: I advised you in my No. 128, of the 22d
ultimo, of the informal notice I had received from the Ministry of State
that it had been decided to order the return of the cattle-tax exacted by
the Spanish consul at Key West. As the official notice did not come as
promised, after waiting two weeks in anticipation of the change of ministry,
I asked the subsecretary of state to have the matter dispatched if possible.
On the 19th instant, the day after the change of ministry, I received a
note, dated the 12th, signed by Señor Ruiz Gomez, of which a copy and
translation is inclosed, communicating the action, or rather the intention,
of the Spanish Government.
This note states that having asked information of the consul at Key West, and
it appearing that the tax on cattle was collected under a misapprehension,
on the 20th of May last it was ordered that the duty should be lowered to 10
cents per head, and that now the necessary orders will be sent that the
consul at Key West may proceed to rectify the sums which have been
wrongfully received, in order to return the same to the interested parties.
It adds that the modification of the tonnage-tax is a question for very
attentive and delicate study, requiring the approval of the Cortes, but that
the Government is examining the subject with a view to a project of
reform.
I also inclose a copy of my note of the 22d instant in reply. While I thank
the minister for the promised return of the illegally collected tax, I
express regret that the note did not contain an announcement of the
intention of the Spanish Government to abolish the tonnage-tax altogether,
and I thought it opportune to review briefly the position of our Government
on that question.
But in view of the concession which has been made in the third article of the
agreement of the 2d instant as to the tonnage dues in the West Indian trade,
I consider it best not to press too strongly the general question, until we
have secured that concession, which it seems will require the approbation of
the Cortes. When that is gained the total abolition will be more easy. I
have been the more confirmed in this view from an examination of the facts
attending the original establishment of this tonnage-tax. By reference to
Mr. Adee’s Nos. 329, 342, and 372, of October, 1876, it will be seen that
this tax was substituted for what is known as the “package”-tax, against
which our Government had earnestly remonstrated, and that Mr. Adee, in
transmitting the royal order of October 16, 1876, repealing the package-tax
and imposing the tonnage-tax in its present shape, called the attention of
the Department to the very points raised in the instructions of Secretary
Blaine to Minister Hamlin, and asked the instructions of the Department upon
them. I do not understand that the omission to give any instructions is to
be taken as an acquiescence at the time in the tonnage-tax, as it is to be
inferred that the Department considered the enforcement of the tax in
specific cases as affording the most opportune occasion to protest against
it.
* * * * * * *
I am, &c.
[Page 475]
[Inclosure 1 in No.
155.—Translation.]
Mr. Gomez to Mr.
Foster.
Ministry of
State
Palace,
January 12, 1884. (Received January 19, 7.30
p.m.)
Excellency: This ministry duly received the
notes which your excellency was pleased to address to it on the 16th
July and 18th October last, relative to the claims presented by Mr.
Mackay against the exaction of certain duties exacted by the consular
agents of Spain at Key West on the exportation of live stock to the
Island of Cuba, and insisting at the same time on the point of view
adopted by the Republic in respect to the exaction of these same duties
in the territory of the Union.
In reply I have the honor to inform your excellency that having
opportunely asked of the said consulate information as to the collection
of the 40 cents on each head of live stock, and it having been shown
that this exaction was unjustified and was founded on a misunderstanding
of one of the officials who had charge of the agency, this ministry
ordered on the 20th May last that the above-mentioned duty should be
lowered to the sum of 10 cents, which Has been collected since said
date; and now the necessary instructions will be sent that the consul at
Key West may proceed to verify the general liquidation of the sums which
have been wrongfully received, in order to return the same to the
interested party.
As to the modification of the tariff in respect to the tonnage duty on
the cargoes of vessels, I must repeat that it is a question for a very
attentive and delicate study, as it treats of a reform of a legislative
character, which can only be carried into effect with the consent of the
co-legislative body; and I limit myself, therefore, in assuring your
excellency that the Government is examining the general question of
consular duties with all care, in order to present within the shortest
possible time a general project of reform, which will embrace this
special question and some others claimed by the innovations which have
been introduced in commercial matters and exacted for the convenience of
the public service.
I avail, &c.,
[Inclosure 2 in No. 155.]
Mr. Foster to Mr.
Elduayen.
Legation of the United States,
Madrid, January 22,
1884.
Excellency: The note which your excellency’s
predecessor did me the honor to address to me, under date of the 12th
instant, was received at this legation on the 19th instant, in which he
informs me that the necessary instructions will be sent to the consul at
Key West to return the cattle-tax wrongfully collected from citizens of
the United States, and that the subject of tonnage dues on cargoes of
vessels exacted by Spanish consuls in American ports is receiving
examination with a view to a general project of reform.
I beg to express to your excellency the great gratification which I have
experienced in receiving this new evidence of the spirit of justice
which animates the Government of His Catholic Majesty, and I will hasten
to communicate to Washington the resolution which has been taken to
order the return of the cattle-tax wrongfully exacted by the Spanish
consul at Key West.
While I thus manifest the pleasure which this information occasions, I am
constrained to express some feeling of regret that the note of the 12th
instant should not at the same time have contained the announcement of
the intention of the Spanish Government to abolish the tonnage dues
exacted by Spanish consuls in United States ports which gave rise to
this cattle-tax. But it appears that the resolution to return the
wrongful cattle-tax only extends to 30 cents of the 40 cents per head
collected, and that 10 cents per head is to be retained by the consul,
by virtue of the Spanish consular regulation which authorizes the
collection of 10 cents per ton on all cargoes of vessels sailing from
ports of the United States to Spanish ports. While the said note
announces a determination to examine the general subject with a view to
future modifications, it would seem that for the present the Spanish
Government was disposed to sanction the collection of a tax by its
consuls in the territory of the United States which had been expressly
prohibited by the Constitution of those States.
This question of tonnage dues exacted by Spanish consuls has been the
occasion of considerable correspondence between this legation and your
excellency’s predecessors, and I take the liberty of citing in this
connection the notes of the legation of January 7 and September 22,
1882, and of July 16 of the past year as containing the [Page 476] views of my Government thereon. In these
notes it is shown that the tax collected by the consuls is not a
specific fee for a specific service performed by the Spanish official,
but that it is a pro rata tax on the cargo of the vessel, and is to all
intents and purposes an export tax levied and collected by Spanish
consuls in the ports of the United States; that as such my Government,
as long ago as January 7, 1882, protested against it as objectionable,
offensive, and inadmissible, and qualified it as a system which has for
its object the collection of revenue in the ports of a foreign
government; and it further gave notice that, if persisted in, it might
become necessary to levy a similar duty in the United States on Spanish
products shipped from the ports of Spain and its colonies to the United
States. I need hardly repeat the conviction expressed in the note of my
predecessor of January 7, 1882, entertained by my Government, that Spain
does not intend or desire to put obstacles in the way Of free commercial
relations between the two countries, and that your excellency’s
Government does not propose to arrogate to itself the right to levy an
export duty in the ports of foreign and friendly nations; but such is
the real effect of the Spanish consular tonnage dues; and when I add
that the people of my country are so hostile to all kinds of export
taxes that from the foundation of the Government to the present day the
National Constitution has contained a prohibition against the levy of
all export taxes, your excellency will understand how impossible it is
that my Government should acquiesce in the collection of the tonnage
dues referred to, nor can I believe that when the full gravity of the
question is understood by your excellency, you will allow the consuls of
Spain in the United States to continue to violate the express provision
of the National Constitution and disregard the solemn protests of my
Government.
In view of the statement which is contained in the note of your
excellency’s predecessor to which I now reply, that the subject was
receiving examination with a view to a project of reforms of consular
duties, I have thought it well to make the foregoing reference to the
attitude of my Government, and to express the hope that an early and
satisfactory settlement may be reached.
I renew, &c.,
