No. 349.
Mr. Frelinghuysen to Mr. Foster.

No. 141.]

Sir: Your No. 168, of the 14th ultimo, has been received. The text, which it forwards, of the substitutionary agreement signed by you and the minister of state on the 13th ultimo, has been compared with the text as received by cable and proclaimed by the President, and the latter is found to have been substantially correct, as you will have seen by the copies sent to you.

The reasons given for the omission of Articles V and VIII are accepted. Article VIII of the original agreement of January 2 was never regarded by us as essential to an understanding or as importing more than a mutual declaration that the two Governments desired a better and more comprehensive commercial agreement than that thus created. The declaration simply recognized an existing fact; it did not create a situation. In this sense, your reference thereto in the memorandum (inclosure No. 2) which accompanies your No. 168 is approved.

The situation as regards the omission of Article V is somewhat different. It is true, as the minister says, that in the United States there is imposed no discriminating tonnage duty against Spanish ships. Hence there was no mutual obligation to decree their removal. But the tonnage duties in Cuba and Porto Rico are understood to be higher than those in our ports, and in the case of vessels making regular trips at short intervals, more onerous than ours. It is very desirable that the tonnage dues on Spanish and American shipping should be approximately equal and uniform in the ports of the two countries. The omission of Article V cannot therefore be construed as an admission on our part that such an equalization of treatment is no longer desirable.

A fuller instruction, touching the negotiation of a complete commercial treaty between the two countries, is in process of preparation, and will soon be sent to you.

I am, sir, &c.,

FRED’K T. FRELINGHUYSEN.