No. 96.
Mr. Hall to Mr. Bayard.

No. 773.]

Sir: With my dispatch No. 691 of the 22d July, 1887, I had the honor to transmit a copy and translation of an additional contract, dated the 14th June of the same year, between the Marquis de Campo and the [Page 127] Government of Salvador, by which the latter agreed to concede to the line of Spanish Central American steamers, an indirect rebate of 3 per cent in the import duties upon merchandise brought to Salvador by the steamers of that line.

In my subsequent dispatch, No. 700, of the 30th August last, I transmitted a copy and translation of an executive order of that Government, dated the 17th of the same month, extending the rebate to all regular lines of steamers and sailing vessels.

I now inclose a copy and translation of another executive order, dated the 27th ultimo, revoking that of the 17th August last. The reasons given are that the Marquis de Campo, through his agent, has officially informed the Government that it is impossible for him to carry out his contracts for a service of steamers, and that in consequence, the order of the 17th August has no longer any object.

There is no allusion to the contracts of May 6, 1886, and June 14, 1887, but it may be inferred, in view of the premises, that they will be held to have lapsed.

The steamers referred to continue to ply between Panama and San Francisco, but not with any regularity.

I am, etc.,

Henry C. Hall.
Inclosure in No. 773.—Translation.—From the Diario Offcial of Salvador of the 28th January, 1888.]

The executive power, taking into consideration that the Marquis de Campo, through his agent in this republic, has officially notified the department of public works that it is impossible for him to carry out the contract with this Government in regard to a service of Spanish steamers, and that in consequence the executive order of the 17th of August, by which the indirect subvention, established by article 1 of the additional contract of the 6th June of last year, was extended to all regular lines of steamers and sailing vessels complying with the terms thereof, has ceased to have any object, decrees the revocation, in all its parts, of the above-mentioned executive order of the 17th of August of the past year.

Signed by the President.
Alvarado,
Secretary of Public Works.