Mr. Belmont to Mr. Blaine.

No. 12.]

Sir: Referring to Department’s No. 271, of February 28, 1888, and No. 279, of April 2, 1888, in reference to discrimination made by the Cuban officials against American vessels, in disregard to the provisions of the existing modus vivendi with Spain, I have the honor to inclose copy and translation of a note from the minister of state in reply to the notes of this legation of March 14 and April 20 last, copies of which are also inclosed, stating that orders have been given to the customs authorities of the Island of Cuba to pay strict attention to the terms of the existing agreement and that the excess of tonnage dues collected from the schooner Uranus would be returned.

I have, etc.,

Perry Belmont.
[Inclosure 1 in No. 12.]

Mr. Curry to Mr. Moret.

Excellency: I have been instructed to call the attention of the Government of Her Majesty the Queen Regent to what appears to be a serious infringement of the principle of perfect equality between American and Spanish vessels plying between the United States and ports of the Island of Cuba which is assumed to have been established by the present modus vivendi.

During the correspondence which led to the signing of the agreement of October 27, 1886, I had the honor, on the 10th of April of the same year, to submit to your [Page 679] excellency a memorandum, of which the following, translated and printed on page 12 of the Spanish Red Book, is an extract:

“In continuation of the representation which my Government has heretofore made, and regrets to he under the necessity of repeating, on the practice of Cuban authorities, adverse to the established agreements between Spain and the United States, I may state that Spanish vessels arriving at Cuban ports from Spain, not exceeding twenty days out, and sailing from Cuba with cargo to the ports of the United States, are exempt in clearing from all tonnage duties in Cuban ports, while American steamers, sailing from Cuba with cargo to the ports of the United States, are required to l>ay, on clearing from Cuban ports, 6½ cents per ton on their cargoes, if mail steamers or $1.35 if not such. Spanish sailing vessels arriving from Spain at Cuban ports and clearing from Cuba, with cargo to the ports of the United States pay in Cuban ports 25 cents per ton on their cargoes destined for the United States, while American sailing vessels clearing from Cuba with cargo to the ports of the United States pay in Cuban ports $1.35 per ton on their cargoes. Thus discriminating or countervailing duties on tonnage are levied urpon vessels of the United States in Cuban ports.”

The other causes of complaint mentioned in that memorandum have since been removed, but I regret to state that the one described in the paragraph above quoted still exists, to the serious injury of American vessels plying between the United States and Cuba, and to the great dissatisfaction of owners of those vessels.

The pith of the objection made by my Government is simply this: That as a result of certain regulations of which article 5 of the Cuban tariff may be taken as an example, a Spanish vessel making the trip between the Antilles and the United States, perhaps side by side with an American vessel, has certain material advantages in tonnage dues which the American vessel has not, because some port in the Peninsula was the original point of departure of the Spanish vessel, which had made a voyage from Spain to Cuba before undertaking the voyage from Cuba to the United States.

Two illustrations will give a clear idea of the injustice to which American vessels are subjected: 1. An American sailing vessel of 500 tons pro forma net register pays tonnage on inward and outward cargoes in the ports of Cuba at the rate of $1.35 per ton, or $675.

A Spanish sailing vessel of the same tonnage coming from Spain to Cuba pays on inward cargo, at 37½ cents, $187.50, and on leaving Cuba for the United States pays on the 500 tons net register at the rate of 25 cents per ton, or $125, or $312.50 inward and outward.

The difference in favor of the Spanish sailing vessel is therefore $362.50.

2. A Spanish regular trading steam-ship, coming loaded from Spain to Cuba in less than twenty days, brought 1,460 tons of cargo and then took out 2,100 tons of cargo for the United States, without paying any tonnage dues, while a regular American steamer would, when the joint inward and outward cargo does not exceed its register tonnage, surfers an inequality of $2,225.

Your excellency will at once see that the “perfect equality” called for by the agreement does not exist, and that Spanish vessels competing with the vessels of the United States in the trade between the United States and the Antilles, or between these two countries and any foreign port, must be placed on equal terms with the American vessels, irrespective of the point of departure, which is entirely irrelevant to the terms of the agreement. As long as this condition of equality does not exist the agreement itself fails to execute the purposes for which it was framed. Judging, therefore, from the promptness with which Her Majesty’s Government basin the past remedied just demands based on existing agreements, it is the belief my Government that these illegal discriminations will be speedily suppressed.

Hoping that the matter will receive from your excellency at an early date the attention which its importance deserves, I gladly avail, etc.,

J. L. M. Curry.
[Inclosure 2 in No. 12.]

Mr. Curry to Mr. Moret.

Excellency: On the 14th of last month I had the honor to call your excellency’s attention to a serious infringement of the present modus vivendi between Spain and the United States by a material discrimination in tonnage dues in favor of vessels of the former country where a voyage has been made from some Antillean or Spanish port before the voyage from Cuba to the United States.

A case of this unjust discrimination has just occurred at Cienfuegos, where the American schooner Uranus, of about 346 tons burden, came in ballast from Ponce, [Page 680] Porto Rico, to Cienfuegos, loaded molasses for the United States at the latter port, and was compelled to pay 37 cents per register ton duty on her outward cargo.

A Spanish vessel would have paid under the same circumstances only 25 cents per ton.

I am instructed to bring this case to the attention of the Government of Her Majesty the Queen Regent, and to request that the money representing the amount of the discrimination thus improperly exacted may be returned.

With an expression also of the hope that an early reply from your excellency to my above-mentioned note of March 14 will enable me to inform my Government of the prompt and satisfactory disposal of this cause of complaint,

I avail, etc.,

J. L. M. Curry.
[Inclosure 3 in No. 12.—Translation.]

Marquis de la Vega de Armijo to Mr. Belmont.

Excellency: In reply to the notes dated March 14 and April 20 last, I have the honor to inform your excellency that, in accordance with information conveyed to me by my colleague the minister of the colonies on February 26 last, the governor-general of Cuba was on said date notified that in view of the claims growing out of the excess of tonnage dues collected from American when compared with those collected from Spanish vessels, and the result being that by such collection there has been an infringement of the provisions of the commercial agreement of May 26, 1888, between Spain and the North American Republic, since that agreement established absolute equality between national vessels and those of said Republic, orders have been given that the Treasury authorities, and more particularly the collectors of customs of that island, should in the collection of dues to be paid by American vessels pay attention to said agreement, and that the sum in excess collected from the brig Uranus by the Cienfuegos custom-house be refunded to that vessel.

I avail, etc.,

Marquis de la Vega de Armijo.