No. 80.
Mr. Hall to
Mr. Bayard.
Guatemala , December 10, 1887. (Received January 4, 1888.)
Sir: I have the honor to acknowledge the receipt of your instructions, No. 510 and No. 517, of the 2d and 5th ultimo, in regard to the rebate in customs duties conceded to the Spanish Central American Line of steamers by the Governments of some of these Republics.
The Guatemalan Government has not withdrawn the discriminating duty of one-tenth of 1 per cent, against American vessels in its Pacific ports, nor is there any probability that it will be done until some opportunity occurs for abrogating its contract with that line.
The Nicaraguan Government has withdrawn the rebate of 2 per cent, it had conceded to the same line. I have had no official correspondence with them on the subject, but while in Nicaragua, in August last, I was able to convince President Carazo and his minister for foreign affairs that the concession was contrary to the treaty of 1867. I was promised also that the rebate should be withdrawn, and I am informed by our consul at Managua that it has been done.
The Government of Honduras concedes a rebate of 2 per cent, in customs duties to the above-mentioned steamers and has taken no action towards annulling it.
In brief, as the matter now stands, the rebates in favor of the Spanish Central American steamers and the consequent discriminating duties against our vessels in the Pacific ports of Central America are as follows:
Guatemala imposes a discriminating duty of one-tenth of 1 per cent, on importations by all regular lines of American vessels, and 3 per cent, on importations by other and transient vessels of the United States.
Costa Rica imposes, practically, a discriminating duty of 5 per cent, on all merchandise imported by vessels of the United States into her Pacific ports.
Honduras concedes a rebate of 2 per cent, in favor of the Central American steamers, thus discriminating to the same extent against vessels of the United States.
Salvador concedes a rebate of 3 per cent, to all regular lines of vessels, irrespective of contracts or nationality.
Nicaragua has withdrawn the conceded rebate of 2 per cent., thus placing vessels of the United States on the most favored footing in her Pacific ports.
I have, etc,