Mr. Conger to Mr. Blaine .

No. 101.]

Sir: Referring to your No. 62, of June 23, with inclosed complaint of Messrs. Charles Ahrenfeldt & Co., that a tax of 5 per cent was imposed by the State of Amazonas, Brazil, on rubber from Peru passing through that State in transit to New York, I have written our consular agent at Manaos for more definite information as to the facts, and in the meantime have learned from my colleague, the minister from Peru, that the same complaint had some time since been made to him by citizens of Peru, and that upon asking information from the Peruvian consul at Manaos he had received reply, dated June 25, that the requirement demanding 5 per cent tax on rubber in transit had been rescinded and the tax already collected ordered refunded.

I am also informed by the foreign office here that they have as yet no information on the subject whatever.

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I have therefore thought best to let the matter rest until I hear from our consular agent at Manaos, for it is quite probable that upon reference to the provisions of the new federal constitution, which positively prohibits such a levy, the governor of Amazonas has already ordered the refunding of all this tax.

Article 7 of the constitution reserves exclusively to the General Government the power to levy foreign imposts, and article 11 denies both to the States and to the General Government the right to levy imposts for the transit through the territory of one State or in the passage from one to another upon the products of other States, or upon foreign products, as well as upon the vessels or vehicles which transport them.

I have, etc.,

E. H. Congee.