No. 108.
Mr. Bayard to Mr. Hosmer.

No. 571.]

Sir: In connection with my No. 569, of the 18th instant, I herewith transmit for your information and files a copy of a letter from the Secretary of the Treasury, dated the 24th instant, and of my reply thereto, dated the 27th, explaining that the withdrawal of the Marquis de Campo steamers, as reported in Mr. Hall’s No. 793, of the 27th ultimo, related exclusively to the Republic of Guatemala.

I am, etc.,

T. F. Bayard.
[Inclosure 1 in No. 571.]

Mr. Fairchild to Mr. Bayard.

Sir: I have the honor to acknowledge the receipt of your letter, dated the 18th instant, transmitting a copy of dispatch No. 793, of the 27th ultimo, from the United States minister at Guatemala City, relative to a revocation by the Guatemalan Government of its decree of July 11, 1887, placing regular lines of vessels entering in that country on the same footing as the vessels of the Spanish Central Line of steamers.

The minister reports that the withdrawal of the Marquis de Campo’s steamers “from these waters” is now announced by his agent at Guatemala, and you remark that [Page 149] there appears to be no discrimination in the Pacific ports of Central America in favor, of any foreign flag.

In the minister’s dispatch of December 10, 1886, he stated that Costa Rica conceded a rebate of customs duties on all merchandise imported into its Pacific ports in the steamers of the Spanish Central American Line, plying between Panama and San Francisco, and in your communication of the 6th of February last you expressed the opinion that the discrimination then made by Costa Rica was violative of the treaty of 1851, and would justify this Government in regarding its provisions as temporarily suspended by Costa Rica.

This Department does not recall that notice has been given of any formal abrogation of this concession, nor is it understood whether the minister intended to say, in dispatch 793, that the vessels of the Spanish Central Line have been withdrawn from the waters of Costa Rica.

As instructions have been given to the collectors of customs in accordance with the suggestion in your letter of February 6, above cited, to apply to importations in Costa Rican vessels the provisions of section 2502, Revised Statutes, imposing additional duties, it is essential that full information should be received by this Department of any facts that may warrant a revocation of the instructions.

If, in your opinion Article, VI., of the treaty should now be considered as in force, and not temporarily suspended, I will thank you to so advise me.

Respectfully, yours,

C. S. Fairchild,
Secretary.
[Inclosure 2 in No. 571.]

Mr. Bayard to Mr. Fairchild.

Sir: I have the honor to acknowledge receipt of your letter of the 24th instant and to say that from Mr. Hall’s dispatch No. 793, of March 27 last, it is evident that the withdrawal of the Marquis de Campo steamers, otherwise known as the Spanish Central American Line of steamers, was a withdrawal simply from Guatemalan waters. It was in consequence of the first decree of that Government extending the rebate on imports, so far as the contract with the Marquis de Campo would permit, to all regular lines of vessels. The withdrawal having been announced by the agent of that company in Guatemala, a decree of March 24, 1888, was issued withdrawing all rebate in duties and placing all nationalities on the same footing All this however, appears to relate to Guatemala alone, and the term withdrawal “from these waters” seems to have been used by Mr. Hail as applying to the waters of that republic.

Nothing has been received from Mr. Hall on this subject, so far as Costa Rica is concerned, since his No 775 of February 16, 1888, a copy of which was sent to you on the 16th ultimo. That dispatch showed that Costa Rica maintained the discrimination in favor of the Spanish Line.

I have, etc.,

T. F. Bayard.