No. 16.
Mr. Lee to
Mr. Bayard.
Legation of
the United States,
Vienna, November 20, 1886.
(Received December 13.)
No. 220.]
Sir: Referring to my dispatch No. 217, concerning
our petroleum interests, I have the honor to report that I have had with
Baron Pasetti, of the foreign office, a very pleasant interview, in which he
showed great interest, and said that he would have the question thoroughly
examined and brought to the attention of the ministry if I would write him a
personal letter on the subject.
I then suggested to Mr. Libby to write to me, and I now have the honor to
inclose a copy of my letter to Baron Pasetti, in which I forwarded a similar
copy of Mr. Libby’s letter, inclosed.
The matter is now as much before this Government as if I had protested, and
in a way much more likely to receive favorable consideration, as everything
has been done in a personal and friendly way, with no antagonisms, such as a
formal protest always produces.
* * * * * * *
I do not think for the present any further action is necessary beyond
advising me of the views of our Government, until the compromise is reached
between the Austrian and the Hungarian ministries. I ought then to be in a
position to protest at once if a protest is to be made and is expected to
accomplish anything before the compromise is ratified by the separate
Parliaments.
I, however, believe that a compromise will be reached which will at least
better our position even if it should not render it a perfectly equitable
one.
* * * * * * *
I have, etc.,
[Inclosure 1 in No. 220.]
Mr. Libby to Mr.
Lee.
Vienna, October 27,
1886.
Sir: Responding to your inquiries, I have the
honor to define as follows the position of the American petroleum
industry:
American petroleum has “been gradually excluded from the markets of
Austria-Hungary. Were this traceable to inferiority of product,
geographic position, or to any other natural incident of competitive
commerce, it would have been a source of regret, but not a ground for
complaint, or had this exclusion been due to the protection of a home
industry or an increase of the internal revenue it would have been again
an occasion of regret, but again no ground for complaint.
The American industry has, however, a grievance, and it is an emphatic
one, viz, a product corning from another foreign country (it matters not
by what technical or trade name the said product may be designated), but
which is practically and actually [Page 18] a semi-refined petroleum, is admitted into
Austria-Hungary upon the payment of about one-half the duty exacted from American crude, viz, 1.10 and 2
florins per 100 kilos, respectively.
In the full belief that this inequitable discrimination against the
American product (and which has driven it from these markets, where it
should naturally compete for public favor) is in conflict with the,
spirit and intent and language of the treaty existing between
Austria-Hungary and the United States, the petroleum industry of America
have solicited the friendly interposition of the Department of State in
submitting their grievance to the Government of Austria-Hungary in the
hope that its justice may be recognized and the discrimination
complained of may be removed.
I have, etc.,
[Inclosure 2 in No. 220.]
Mr. Lee to Baron
Pasetti.
Legation of the United States,
Vienna, October 27,
1886.
Excellency: As suggested by you at an
unofficial interview, I inclose in an entirely unofficial way a copy of
a letter received by me from Mr. Libby concerning the effect which has
been produced on our export trade in petroleum by the present rendering
of existing laws.
Mr. Libby is in Europe in the interest of the American petroleum
industry, and any statement of his with regard to that trade is entitled
to attentive official consideration by me.
I venture to ask you in this unofficial way to look into the subject,
because I believe that an investigation of the question at this
particular time will develop so intimate a relation between the
interests of this country and those of the American petroleum trade that
any official action will become unnecessary on my part.
With assurances, etc.,
