No. 110.
Mr. Bayard to Mr. Hosmer.

No. 575.]

Sir: I transmit for your information a copy of a letter from the secretary of the Pacific Mail Steam-ship Company, and of the Department’s reply thereto, dated the 26th ultimo and 1st instant, respectively, touching the precise situation of Costa Rica in the matter of the discrimination in favor of the Spanish Central American line of steamers.

You will accordingly ascertain whether the de Campo steamers have been withdrawn between Costa Rica and San Francisco; and if so, whether the obnoxious legislation remains unrepealed.

I am, etc.,

T. F. Bayard.
[Inclosure 1 in No. 575.]

Mr. Lane to Mr. Bayard

Sir: I have the honor to acknowledge the receipt of letter of the Assistant Secretary, Mr. G. L. Rives, dated 18th instant, together with copy of decree of the Guatemalan Government referred to therein, for which we thank you.

We notice that Mr. Rives goes on to say that, “There now appears to be no discrimination in the Pacific ports of Central America in favor of any foreign flag.”

Referring to our previous requests for the exaction of extra duties on cargo proceeding from Costa Rican ports to San Francisco, concerning which we have not as yet been advised that the Treasury Department has taken any action, our understanding of the situation is that if the Del Campo steamers were still running between [Page 152] Costa Rica and San Francisco the discrimination against American vessels would still exist.

As, however, they have been driven off the coast by their inability to compete with this company’s steamers (irrespective of any assistance afforded us by the Treasury Department, such as that which was solicited by us) we do not understand that, any final withdrawal of the discrimination in question has been enacted by the Government of Costa Rica.

If so, we would be obliged if the Department would kindly advise us to that effect.

Respectfully, etc.,

W.H. Lane,
Secretary.
[Inclosure 2 in No. 575.]

Mr. Rives to Mr. Lane.

Sir: In reply to your letter of the 26th ultimo, I desire to say that the Department’s latest information in the matter of the discrimination by Costa Rica is in Mr. Henry C. Hall’s dispatch, No. 775, of February 16, 1888, which showed that that Government still maintained the discrimination in favor of the Spanish Central American Line, otherwise known as the Marquis de Campo steamers.

In connection with Mr. Hall’s dispatch, forwarding the Guatemalan decree of March 24, 1888, the Secretary of the Treasury asked for further and more precise information as to the position of Costa Rica in this matter, saying that instructions had heretofore been issued to the collector of customs at San Francisco to apply the provisions of section 2502 of the Revised Statutes to cargoes coming to that port from Costa Rica in the Spanish steamers. Mr. Fairchild was advised that Mr. Hall’s No. 775 contained the latest information in the Department’s possession.

Mr. Hosmer, the chargé d’affaires ad interim of the United States at Guatemala City, will be directed to ascertain whether the De Campo steamers have been withdrawn between Costa Rica and San Francisco; and, if so, whether the obnoxious legislation remains unrepealed.

I am, etc.,

G. L. Rives,
Assistant Secretary.