No. 416.
Mr. Curry to Mr. Bayard.

No. 140.]

Sir: Continuing the history of the negotiations connected with the agreement of 13 February, 1884, I have the honor to state that, after receiving your telegram of 22d instant, several conferences were held with the minister of state, in which, for the purpose of disabusing his mind of some mistaken impressions and facilitating negotiations, I reviewed at some length and with entire frankness the failure of the Spanish to observe the agreement as understood by the United States, the vacillation in reference to the royal order of 22 June, 1886, and the irritations which necessarily resulted from the delays interposed to the fulfillment of several explicit promises. In these discussions the minister of state conceded that the proper interpretation of the agreement required the suppression of any flag discrimination as applied to foreign goods carried under the American flag from American ports to the ports of Cuba and Porto Rico. Heretofore the minister of ultramar would not concur in that interpretation, but the present minister had yielded to the arguments as presented on the American side of the question. * * *

Actuated by what I believe to have been a sincere desire to promote the most amicable relations between the two countries, the minister of state, in our conference on the 25th, agreed to yield the point in reference to goods from any foreign country, and on the night of that day sent me a note covering his assent. Yesterday I was waiting a formulated statement in briefer terms for transmission to the Department when I received your telegram stating that Mr. Muruaga, under the instruction of his Government, had submitted a proposition to absolutely equalize the flags of the two countries in the Spanish West Indies, no discrimination being made in regard to the origin of the cargo or the point or shipment thereof.

The minister invited me to an interview at the foreign office in the afternoon, read to me several telegrams from the Spanish minister, and gave me a copy of the memorandum of agreement. * * *

Last night he sent me a note announcing, in his opinion, the termination of the negotiation, copies of which, in Spanish and in English, are herein inclosed. He substituted the text of the agreement, furnished from Washington, in lieu of proposition II as heretofore cabled, and as covering unmistakably the requirement in your telegram. Last night I sent you a dispatch by cable, as he authorized. * * *

It will be observed that the closing paragraph of the note of the minister of 26th, speaks of a protocol to be signed, embodying the conclusions reached, and a morning journal, evidently with official inspiration, speaks also of a protocol to be formally signed when the text of the propositions shall have received approval at Washington. * * *

I have, &c.,

J. L. M. CURRY.
[Inclosure in No. 140.—Translation.]

Excellency: In your note of yesterday your Excellency is pleased to inform me of the reception of a telegram from Washington, as follows:

“If the three propositions of the Spanish Government contained in your telegram include the cargoes carried in American ships, you are authorized to assure that [Page 825] the President will publish a proclamation suspending all discriminating duty as soon as he receives that notification.”

Since receiving your note I have received from His Majesty’s minister at Washington the telegram, a copy of which is inclosed.

The text of the memorandum referred to in the telegram, and which has been agreed upon in Washington by the Spanish minister and Mr. Bayard, solves the point which your excellency indicated to me in your note of the 25th, the only one upon which there was not yet any agreement, so that as they have been accepted by the Spanish Government, the three propositions which I had the honor to formulate in my note of the 22d instant are complete.

Consequently the Spanish Government considers the negotiation terminated on the basis of the propositions referred to, it being understood that the second of them shall be worded in the terms of the text agreed upon in Washington between the Spanish minister and Secretary Bayard.

I have given this information to our representative at Washington, that he may confirm the declarations contained in this note, and I am at the disposition of your Excellency for the signature of the corresponding protocol in which our agreement may be drawn up.

I avail, &c.,

S. MORET.
[Inclosure 2 in No. 140.—Telegram.—Translation.]

The minister of Spain to the minister of state.

text of memorandum.

It is expressly understood that in the islands of Cuba and Porto Rico there shall be applied from this date absolute equality in impost and tonnage duties to the products of and articles proceeding from the United States and any other foreign country in vessels belonging to citizens of the United States, and that there shall be collected no other nor greater imposts or tonnage duties from the said ships and their cargoes than those levied on Spanish ships and their cargoes under the same circumstances.

Under the conditions aforesaid the President of the Republic will issue his proclamation declaring that the collection of foreign differential tonnage duties and imposts in the United States shall cease and that they shall continue suspended as regards Spanish vessels and products, manufactured or mercantile, imported in them into the United States, whether from Spain, her colonies above, mentioned, or from any other foreign country.

I beg your Excellency, if you approve, to notify me of your acceptance in order that the proper orders may be issued.

MURUAGA.