Mr. Lawrence to Mr. Blaine.

No. 228.]

Sir: With reference to increased export tax, levied by the States of Bahia and Pernambuco on certain articles exported to the United [Page 27] States, I have the honor to report that I have brought the matter to the attention of the Brazilian Government in a note to the minister of foreign affairs, and in reply am advised that he will seek an understanding with the respective governors, that the protests may be attended to.

I inclose copies of the correspondence.

I have, etc.,

William H. Lawrence,
Charge d’Affairs ad interm.
[Inclosure 1 in No. 228.]

Mr. Lawrence to Senhor Corrêa.

Sir: I have the honor to bring to the notice of your excellency that complaints and protests have been made by exporting merchants of Bahia and Pernambuco of the imposition of an increased export tax on merchandise shipped from those cities to the United States of America, to wit:

By the merchants of Bahia, that under the provisions of a law enacted by the legislature of that State, on the 11th of January last, they are obliged to pay a duty of 19 per cent on all skins exported to the United States of America.

And by the merchants of Pernambuco, that under a decree of the junta, on the 1st of February last, there has been and is levied an additional tax of 2 per cent on all sugars exported from Pernambuco to the United States of America.

Referring to the commercial arrangement entered into between our respective Governments, and which was proclaimed by both on the 5th day of February, 1891, in which it is provided by the Government of the United States of Brazil “that no increase shall be made in the export tax now in force, whether national, State, or municipal, upon any article, the product of Brazil, now on the free list of the tariff of the United States of America, so long as such article continues to be admitted free of duty,” I beg to call your attention to the present tariff law of the United States of America, in the third section of which provision was made for “the admission into the ports of the United States, free of duty, whether national, State, or municipal, of the following articles: Sugars, all not above No. 16, Dutch standard in color, all tank bottoms, all sugar drainings and sugar sweepings, sirups of cane juice, melada, concentrated melada, and concrete and concentratad molasses; molasses; coffee; hides, raw or uncured, whether dry, salted, or pickled; Angora goat skins, raw, without the wool, unmanufactured; asses’ skins, raw or unmanufactured; and skins, except sheep skins, with the wool on.”

As it would therefore appear that the imposing of these duties of export is a violation of the provisions of our commercial arrangement, my Government has instructed me to bring the matter to the attention of your excellency, in order that the Government of Brazil may provide for the stipulations of the arrangement.

In presenting the subject to your excellency, I reiterate the assurance of Minister Conger that my Government has entire confidence in the desire and determination of the Government of Brazil that the provision of the arrangement shall be faithfully executed.

If, upon investigation, these complaints should prove to be well founded, I will thank your excellency to advise me at as early a date as practicable of the action taken for the relief of these exporters and to secure to all the advantages to which they are entitled.

I avail myself of the occasion to renew to your excellency the assurance of my highest consideration.

William H. Lawrence,
Charge d’Affairs ad interm.
[Page 28]
[Inclosure 2 in No. 228—Translation.]

Senhor Corrêa to Mr. Lawrence.

I have the honor to acknowledge the receipt of the note addressed to me by Mr. William H. Lawrence, chargé d’affaires of the United States of America, on the 4th instant, informing me that protests had been made by certain exporting merchants of Bahia and Pernambuco against an increased tax on merchandise exported from those States referred to.

I will have an understanding with the governors of those States in order that the protests may be attended to.

I renew, etc.,

Serzedello Corrêa.