Mr. Reid to Mr. Blaine.

[Extract.]
No. 209.]

Sir: On the 8th of July I was informed of a proposition said to have been submitted by the budget committee of the Chamber to the minister of finance, which appeared designed to discriminate against American lubricating oils in favor of those of Russian origin. I promised to ask the minister for foreign affairs if the Government was really considering such a proposal.

On July 9 I called on Mr. Ribot at the foreign office, and, after disposing of my other business, mentioned this complaint, saying that I only ventured to do so in the hope that he could tell me there was no occasion to trouble my Government with the matter. He said that if I gave him a memorandum of it he would mention it to his colleagues. Accordingly, I sent him the verbal note a copy of which is herewith inclosed.

I have, etc.,

Whitelaw Reid.
[Inclosure in No. 209.]

Mr. Reid to Mr. Ribot.

The minister of the United States presents his compliments to His Excellency the minister of foreign affairs, and, referring to their conversation this afternoon, begs to inclose herewith a memorandum of the note received by him from one of the large petroleum importing houses of his country. Mr. Reid has hoped that Mr. Ribot might be able to inform him that there was no warrant for the report therein referred to, and so relieve him of the necessity for forwarding the statement to his Government at all.

[Inclosure.]

Memorandum.

A large petroleum importing house brings to the attention of the minister of the United States a statement that the budget committee of the Chamber of Deputies has recently recommended or decided to recommend an increase of duties on mineral lubricating [Page 288] oils from 12 francs per 100 kilogrammes, as at present, to 16 francs per 100 kilogrammes for black oils, and to 20 francs per 100 kilogrammes for pale oils, this classification being obviously calculated to discriminate in favor of Russian lubricating oils as against those of American origin.

The same house mentions apprehensions arising from other rumors to the effect that further legislation is contemplated discriminating against all American products of petroleum.