[Inclosure in No. 69.]
Mr. Manning to Mr.
Mariscal.
Legation of the United States,
Mexico, February 19,
1887.
Sir: In connection with any note of December 6,
last, I would most earnestly call your excellency’s attention to the
complaint of Messrs, Alexandre & Sons, of New; York, touching the
rebate of 2 per cent. of customs duties granted by the Government of
Mexico on goods imported at Progreso and Vera Cruz, in vessels of the
Spanish Transatlantic Steamship Company, alleged to be to the detriment
of the complainants.
My note, as you win recall, stated that Messrs. Alexandre held that this
procedure manifestly discriminated against American vessels, and further
urged that, whether intentionally or not, a discrimination existed in
favor of the Spanish steamers, which was not in accord with the
uniformly friendly policy of the United States, as shown, for instance,
by the provisions of the shipping acts of 1884 and 1886, when marked
favors were shown to Mexico at the promptings of neighborhood.
Your excellency’s esteemed reply to my note, to the effect that the
rebate was granted only in the form of a subvention, and that a like
franchise in like circumstances might have been obtained by any other
company, has not, I am free to confess, satisfied my Government, whose
doubts have not been altogether dispelled as to the interpretation
placed upon the contract of the Spanish company with Mexico.
The relationship of Articles 3 and 9 of that contract seem confused. By
reference to Article 3 your excellency will observe that—
“In order to promote the commerce of the Mexican Republic, the Spanish
Transatlantic Company shall pay, at the custom-house of Vera Cruz and
that of Progreso for importers, 2 per cent. of the customs duties
payable on their goods, this amount being deducted from the subsidy to
be received by the company through said custom-house.”
On the other hand, Article 9 specifies that—
“The Government shall grant a subsidy of $5,000 in Mexican silver to the
Spanish Transatlantic Company for each round trip by its vessels between
Havana, Progreso, and Vera Cruz, in connection with its lines. It shall
also grant to the company 2 per cent. of the customs duties payable on
the goods carried by its steamers, provided that such duties amount/for
the trip, to the sum of at least $50,000.”
Your excellency will note that distinct interpretations may be given to
the above contract stipulations. Article 3 may amount to an
unconditional bounty of 2 per cent. of the duties in favor of importers
by that company’s steamers in addition to the subsidy of 2 per cent.
granted by Article 9, under its expresss condition to the company, or
the company may be called upon to pay for importers the duty of 2 per
cent., as required by Article 3, out of the $5,000 subsidy, in any
event, on each round trip; with an additional contingency that, in case
the round trips do not yield at least $50,000 of duties, so that the
additional 2 per cent. granted by Article 9 can be claimed, the line may
receive its $5,000, less the deduction of 2 per cent. for importers.
There is another point serving to illustrate the confusion that clouds
the subject. That is, whether the 2 per cent. of customs duties, which
Article 3 says the steamship company shall pay “for importers,” applies
to importers in Mexico. Ordinarily this would appear to be the correct
interpretation, but according to a letter received from one of the
leading houses in New York City, at the office of Messrs. Alexandre
& Sons, the shippers of goods from the United States enjoy the
privilege “for importers” when forwarding their merchandise by the
Spanish steamers.
[Page 691]
In order that the United States Government may be in a position to treat
this question understandingly, I am instructed, in connection with my
previous correspondence, to request that your excellency will kindly
furnish me with the true interpretation placed by the Mexican Government
upon the contract of the Spanish Transatlantic Steamship Company, as
well as any other facts which may, in your judgment, conduce to correct
and just conclusions on this matter.
I beg to protest to your excellency, etc,
