No. 390.
Mr. Curry
to Mr. Bayard.
Legation of
the United States,
Madrid
,
September 29, 1886.
(Received October 18.)
No. 119.]
Sir: Your cablegram produced in the legation
surprise. At once I sought an interview with the minister of state to ask an
explanation of what, if unexplained, would place the Spanish Government in
the attitude of a nullification of its solemn and clearly understood
agreement. The minister being engaged in a council, I left a note asking an
early interview. This was granted for the next day, and I availed myself of
it to present the matter of your cablegram in the strongest light I could. I
submitted a memorandum at the same time, a copy of which is inclosed. The
minister said my statement was strictly accurate, and he was sure there was
some misunderstanding, as the object of the order of the minister of
ultramar was to equalize the flags of the two nations. On my request to put
in writing such a statement as might be used as a basis for a cablegram, he
said he would consult with his colleague of ultramar and send the paper in
twenty-four hours.
* * * I waited two days and received a note asking me “to excuse these
unavoidable delays,” as “the colonial secretary has cabled for some
information wanted to give the answer I (he) promised.” To this note I
responded immediately.
Thus the matter stands. The Madrid papers, about two weeks ago, discovered
that the order of June had been issued and began a series of attacks on the
minister of state and the Government. What effect these criticisms had can
only be conjectured.
Of the sincerity of the minister of state and his purpose, so far as lies in
his power, to carry out, in good faith, the agreement, I have not a
doubt.
The matter shall have constant and earnest attention, and the Department
shall be advised by cablegram whenever anything definite occurs.
* * * * * * *
I have, &c.,
[Inclosure 1 in No. 119.]
memorandum.
Article I of the commercial agreement of February 13, 1884, expressly
provided for the suppression of differential flag duties, and that the
American flag in the Antilles should be treated upon precisely the same
terms as the Spanish flag. The fact, however, that goods transshipped in
American ports in Spanish vessels were admitted under the third column
of the tariff, while the same class of goods in American vessels was
compelled to pay the fourth column duties, was an overwhelming
discrimination in favor of Spanish and against American shipping, and
the United States has, from the moment that the commercial agreement was
construed in this manner by the Spanish Government, protested against
the construction and instructed its representatives at this court to use
every effort to induce the Government to place the flags of the two
countries upon the same basis, as was expressly provided for by the
agreement.
Mr. Curry, in continuation of the negotiations of his predecessors to
this end, sent to his Excellency the minister of state on the 10th of
April, 1886, a memorandum, section 3 of which was devoted to this
question. In that memorandum Mr. Curry said:
“It appears, however, that Spanish vessels are permitted to carry foreign
goods transshipped in American ports to Cuba and Porto Rico, and have
them admitted under the third column of the tariffs of those islands,
while similar goods carried in American vessels are required to pay the
higher duties of the fourth column. This, as it [Page 804] must be apparent to your Excellency, is a manifest
discrimination against the American flag, the imposition of a different
duty, and consequently a violation of Article I of the agreement. The
President of the United States is authorized to continue the suspension
of the discriminating duty so long as the reciprocal exemption of
vessels of the United States and their cargoes shall continue, and no
longer.”
* * * * * * *
On May 20, in order to remove any possible misunderstanding, Mr. Curry,
in another note, again reviewed the whole question, and in view of the
agitation in the United States in favor of retaliatory discrimination,
urged that immediate measures be taken for the removal of the cause of
complaint. He continued, in conversation and letters, to press it upon
the attention of the minister of state, until, on June 4, Señor Moret
wrote:
“My Dear Sir: I have just had an interview with
my colleague, the colonial secretary, and I have the pleasure to inform
you that, in spite of his bad health, we have discussed thoroughly the
question of the equalization of the Spanish arid American flags, and
have agreed to have it put into practice at once in accordance with the
principles of the modus vivendi of 1884.
“My colleague shall issue the necessary orders to remove any difference
existing at present between Spanish and American ships in the ports of
the Antilles, and you may therefore inform your Government that any
discriminating duties or taxes, such as those you
mention, shall be corrected without further delay.
“Moreover, if after the orders, which will be immediately enforced, any
grievance still arises, you may rely upon the loyalty and fairness of
the Spanish Government, and be sure it will be removed as soon as it is
brought to my knowledge.”
On June 30 an official communication was received containing the order,
which was as follows:*
It will be observed that to avoid ambiguity or misconstruction in the
words “productos y procedencias” the order begins
by stating the complaint of the minister of the United States that “the
minister of the United States objects * * * that in that island the
differential duty is maintained in respect to foreign merchandise
transshipped in American ports.”
In view of the presumed successful close of long and tedious negotiations
and the satisfaction felt and expressed by the Government of the United
States at the final determination of the Spanish Government to enforce
the agreement of February 13, 1884, in accordance with the terms of
Article I, which expressly provides for the suppression of differential
flag duties, the minister of the United States has learned with regret,
through a telegram just received from his Government, that the
consul-general of the United States at Havana has reported that the
minister of ultramar has telegraphed to the “administration, central de aduanas” of Havana that the order
of June 22 permits only products of the United States shipped from ports
of the United States in vessels of the United States to the Antilles to
be admitted under the third column of the tariff. As it is clearly
stated in the preamble of that order, as has been shown above, that the
reason for its promulgation was the complaint made of the maintenance in
the Antilles of the differential flag duty in respect to foreign goods
transshipped in American ports, such instractions to the customs
authorities amount not to a construction of the order, but to a
declaration that the order is null and void. The minister of the United
States hopes and believes that there has been some misunderstanding on
the part of the consul-general of the United States or the local
authorities of Cuba. He cannot believe that the Spanish Government,
after long negotiations and explicit promises, could decide to render
its own order utterly abortive by prohibiting the fulfillment of the
very objects for which it was issued.
He is certain, therefore, that the difficulty must result from some
misunderstanding which the Government of Her Majesty will hasten to
rectify.
Presented by the minister of the United
States to his Excellency the Minister of State on the 25th of September,
1886.
[Inclosure 2 in No. 119.]
Mr. Curry to Mr.
Moret.
Legation of the United States,
Madrid
,
September 28,
1886.
Dear Sir: I have the honor to acknowledge your
kindness in sending me a note of yesterday suggesting “unavoidable
delay” as growing out of a cablegram of the colonial secretary, in
giving me a response to the subject-matter of our interview and of my
memorandum or the 25th. May I venture to express very strongly the hope
[Page 805] that the order of the
colonial secretary of June last will be reaffirmed promptly, and in such
language that the Cuban authorities cannot misconstrue it? It seems that
the colonial officers have nullified a positive and clearly expressed
order of the colonial secretary to effectuate Article I of the
commercial agreement of February 13, 1884, and “to remove any difference
existing between Spanish and American ships in the ports of the
Antilles.”
The just and honorable determination of the Government of Spain toenforce
the language and principles of the agreement of February, 1884, and
suppress the differential flag duties excited the liveliest satisfaction
in the United States, as drawing the two nations into closer and
mutually profitable commercial intercourse, and as giving still another
proof of the fidelity with which Spain observes her obligations. The
surprise and astonishment were proportionately great when information
was conveyed to Washington that inequalities, vigorously protested
against, were still enforced in the Antilles. I inclose slips from
London Times and Imparoial, confirming the information which led my
Government to appeal to your Excellency for an explanation.
The order of the colonial secretary and Article I of the commercial
agreement on which it was based were not, as some ill-informed journals
suppose, a gratuitous concession to the United States on the part of
Spain. On the contrary, the equalization of the flags of the two
countries was a solemn stipulation in return for a full and most
advantageous quid pro quo. For fifty years Spain
had sought release from a retaliatory duty reluctantly imposed by the
United States, and the promise to put flags of the two countries on the
same footing secured what she had so long desired.
The urgency of my Government and the excitement among shippers will
excuse me in the eyes of your Excellency for asking such early action,
in the most efficacious way, as will remove all possible
misunderstanding and preserve in fullest harmony the cordial relations
for which the two Governments have so earnestly and successfully
striven.
In all these negotiations my Government is happy in dealing with such
enlightened statesmen, and its representative is honored in being
permitted to renew the assurances, &c.,
[Inclosure 3 in No. 119.—Extract from El
Resumen.—Translation.]
a conflict.
We have received information this evening referring to a question of
great importance, hitherto unknown by the, press and public opinion.
Thanks to information, the exactitude of which cannot be doubted, we
propose to bring it to light with all the details that have reached us.
While this question does not belong to the domain of politics, it is so
nearly related to it that it may be the origin of a ministerial conflict
and of difficulties in our international relations.
The fact of the matter is that the representative of the United States in
Spain began a short time ago to take steps to the end that the great
North American Republic, and. above all, the marine, might obtain
greater advantages than those offered by the existing commercial treaty,
not by any means of a new agreement, but by virtue of a new
interpretation of the present one.
In accordance with the terms of the existing agreement, the products of
the United States enter the Spanish Antilles, paying duty under the
third column of the tariff as foreign products carried under the
national flag.
The North American minister, understanding well, on addressing himself to
our Government, the consequences of what he proposed, and counting
perhaps on our usual accessibility on the subject of foreign
pretensions, formulated the request that the benefit of the third column
be extended to whatever proceeds from the United
States, or what is the same thing, that everything arriving in Cuba and
Porto Rico under the flag of the Republic, whether North American
products or not, should enjoy the avantages of the third column.
It appears that the minister of state, without taking into account what
this meant, welcomed the proposals of the representative of the United
States, agreed to do what was requested, and dictated a royal order
which placed the desired construction upon the clauses of the
treaty.
The subject passed to the ministry of ultramar for the dictation of the
royal rrder, and having been received there as a matter in the ordinary
run of business, this question which appeared so insignificant, but
which was in reality nothing less than the total ruin of our poor
merchant marine, followed the usual course.
[Page 806]
We do not know how or when or where the difficulty fortunately arose, the
matter was paralyzed and began to attract the attention of the
representatives of the decayed interests of our navigation, as well as
of those who watch here over the mercantile interests of other
countries.
The concession granted in principle to the United States would be soon
saddled with the extension of this favor to other nations, who by their
conventions with us have the right to the treatment of the most favored
nation.
And from the moment in which not only the products, but what proceeds
from, enter the Antilles with the shelter of the third column, what
would remain of our merchant marine can be imagined.
The very productions of Spain would be snatched from our ports by a
competition which it would be impossible to sustain, and all the
commerce of the Antilles, no matter whence it came or with whom carried
on, would finally fall into the hands of the United States, whose rates
of freight are always more advantageous.
There was not wanting some one to see this in time, and the subject is
paralyzed, as we have said.
But the question is not settled, and is far from being so. The efforts
continue, the engagement exists, and they do not know how to escape from
it.
Perhaps the circumstance that the minister of ultramar has hastened his
return to Madrid may have some relation with what we refer to.
We could almost venture to say that it has.
Will the ministerial press now tell me what is going to be done; because
it is evident to us that the conflict is begun, and we believe that we
are rendering a service to the interests of the country in revealing the
very grave peril that threatens our decayed naval industries.
