No. 94.
Mr. Bayard to Mr. Ball

No. 549.]

Sir: I transmit for your information, in connection with previous correspondence, a copy of a letter addressed by me to the Secretary of [Page 125] the Treasury to-day relative to the imposition of a discriminating duty of 10 per cent., as provided by section 2502 of the Revised Statutes of the United States, upon the cargoes imported at San Francisco from Costa Rica by the vessels of the Spanish Central American Line.

I am, etc.,

T. F. Bayard.
[Inclosure 1 in No. 549.]

Mr. Bayard to Mr. Fairchild.

Sir: I have the honor to acknowledge the receipt of your letter of the 31st ultimo, inclosing a draught of a letter to the collector of customs at San Francisco, in relation to the imposition of the 10 per cent, discriminating duty under section 2502 of the tariff act of March 3, 1883, on the cargo of the steamer Costa Eica.

The third paragraph of the letter reads as follows:

“Merchandise imported in said steamer, with the exception of such as is covered by the terms of Article VI of the treaty of 1851 with Costa Rica, is subject to the discriminating duties levied by section 2502 of the tariff act of March 3, 1883.”

The only suggestion the Department wishes to offer is whether the discriminating duty should not be imposed on all the merchandise on the vessel, as the discriminating rebate of duties on merchandise imported into Costa Rica on vessels of the line in question is understood to apply to all merchandise, whether the growth, produce, or manufacture of the United States or not.

If it should be deemed advisable not to raise this treaty question as yet it might perhaps be well explicitly to state that there shall he excepted from the imposition of the discriminating duty such merchandise as may be the growth, produce, or manufacture of the Republic of Costa Rica.

In the opinion of the Department, however, the discrimination now made by Costa Rica in favor of merchandise imported on the vessels of the Central American Line being applied to all merchandise, is violative of Article VI of the treaty of 1851 between the United States and Costa Rica, and would justify this Government in regarding its provisions as temporarily suspended by Costa Rica.

I inclose herewith, for your further information, copy of a letter of the 1st instant to this Department, from the secretary of the pacific Mail Steamship Company.

I have, etc.,

T. F. Bayard.
[Inclosure 2 in No. 549.]

Mr. Lane to Mr. Bayard.

continued imposition of a discriminating duty of 5 per cent by costa rica against american vessels in favor of those of the spanish central american line.

Sir: Referring to previous correspondence, and especially to our letter of the 27th ult., relating to the above subject, I now beg to hand to you a further extract from a letter just received from our special agent, Mr. J. H. Leverich, at the city of Guatemala, under date of January 7, 1888, from which you will notice that M. Leverich states that the 5 per cent, question was then in statu quo, and that the Marquis de Campo’s steamer Costa Rica had landed 125 tons of goods from San Francisco under that protection.

Asking that you will kindly communicate this to the Treasury Department,

I remain, etc.,

W. T. Lane, Secretary.
[Page 126]
[Inclosure 3 in No. 549.—Extract.]

Mr. Leverich to Mr. Lane.

costa rica—differential duties.

Dear Sirs: I am glad to hear you intended asking Mr. Bayard now to urge action on the part of the Treasury Department against Costa Rica in the shape of the 10 per cent, discriminating duties on goods imported into San Francisco under the flag of that Republic. My latest advices from Punt a Arenas are that the 5 per cent, question is still in statu quo and that the Costa Mica landed 125 tons of goods from San Francisco under that protection.

Respectfully, etc.,

J. H. Leverich.