No. 112.
Mr. Hall to Mr. Bayard.

No. 710.]

Sir: With reference to my dispatches Nos. 652, 679, and 684, the latter dated the the 12th of July last, relating to the line of Spanish Central American steamers which it is proposed shall run between Panama and San Francisco, I have the honor to inform you that the first one of the proposed line has arrived at San José de Guatemala, and will sail to-morrow for the last-named port.

This steamer is called tie Guatemala, and sails under the Guatemalan flag. She arrived here with a provisional register issued by a Guatemalan consul in Europe, and she will be provided at this place with a regular register issued by this Government.

This vessel, in my opinion, comes clearly within the provisions of section 2502 of the Revised Statutes as to the discriminating duty of the 10 per centum upon any merchandise imported by the said vessel into the United States.

We have no treaty with Guatemala, and with the exception of the Pacific Mail Company’s vessels having a contract with the Government this Guatemalan steamer has special privileges in Guatemalan ports not possessed by any American vessels.

It is but just, therefore, that the discrimination established by the laws of the United States should be applied in this instance.

For convenient reference I beg leave to inclose a copy of the above-mentioned section 2502.

I have, etc.,

Henry C. Hall.
[Inclosure in No. 710.—Revised Statutes, section 2502.]

Sec. 2502. A discriminating duty of ten per centum ad valorem, in addition to the duties imposed by law, shall be levied, collected, and paid on all goods, wares, and merchandise which shall be imported on vessels not of the United States; but this discriminating duty shall not apply to goods, wares, and merchandise which shall be imported in vessels not of the United States entitled by treaty or any act of Congress to be entered in the ports of the United States on payment of the same duties as shall then be paid on goods, wares, and merchandise imported in vessels of the United States.