No. 44.
Mr. Jarvis to Mr. Bayard.
No. 139.]

Sin: On receiving your No. of July 9, 1887, in reference to a proposed reduction or total abolition of the port charges on vessels of the United States or of Brazil entering each other’s ports, I addressed a formal note to the minister for foreign affairs on the subject, and in addition thereto had an interview with the directorgeneral of that department. In the interview the director intimated that, as Brazil has no vessels engaged in foreign trade, it was not likely the Government would find any reason for entering into the proposed arrangement, so I was prepared for the final reply of the minister, which he made on the 31st of July, 1888, giving the reasons of the Imperial Government for not accepting the proposal of the United States. I herein inclose a translation of the reply, from which it will be seen the Imperial Government assigns the following reasons for its action:

  • First. Brazil has no merchant marine, and consequently there could be no reciprocity in the proposed reduction or abolition of port charges on such vessels.
  • Second. The lighthouse tax in Brazil corresponds to the tonnage tax in the United States, and that it is not only not excessive in comparison with it, but that it is sometimes much less and especially so when the vessel is one of large tonnage.
  • Third. The ships of the United States, as well as ships of other nationalities, enjoy the privilege of engaging in the coastwise trade of Brazil between its ports without any extra burdens or conditions therefor, and that this constitutes an immunity from port charges not given by many other nations.

It is a well known fact that much of the coastwise trade of Brazil is done by foreign vessels, and I think I may say a fair proportion of it by vessels carrying the flag of the United States. There is no discrimination against vessels of the United States in the port charges in Brazil known to me, and I think I may safely report there is none.

I have the honor, etc.,

Thos. J. Jarvis.
[Inclosure in No. 139.Translation.]
Mr. da Silva to Mr. Jarvis.

In addition to the note from this Department of September 17 of the year last past I have to communicate to Mr. T. J. Jarvis, envoy extraordinary and minister plenipotentiary of the United States of America, that the Imperial Government sees no reason of advantage by which Brazil may accept the proposal of the Government of the referred to States in adopting the reduction of the tonnage tax established by Congress in favor of vessels which may enter the ports of that Republic.

Mr. Jarvis will, without doubt, find this act justified by giving attention to the following considerations:

Brazil has no merchant marine whose ships seek the ports of the United States, not being able for this reason to realize the reciprocity of intercourse between the two countries.

The lighthouse tax, which in Brazil corresponds to the tonnage tax of the United States, maintains with it a sufficient proportion, and the cases are not rare in which the second very much exceeds the first, which has its limit in favor of the larger class of vessels.

And, finally, the ships of the United States, as well as those of other nationalities, enjoy without condition the free privilege of doing the coastwise trade, which constitute an immunity which many nations do not concede to foreign vessels.

I have the honor to renew, etc.,

Rodrigo A. da Silva.