Mr. Buchanan to Mr.
Gresham.
Legation of the United States,
Buenos Ayres, October 1,
1894. (Received November 5.)
No. 59.]
Sir: Referring to your No. 23, and especially
to the inclosures accompanying it, I beg to say that I see no reason to
change the view I expressed in my No. 49, of the probable action of this
Government with relation to lowering the duties on American
products.
Great stress is laid by the Argentine minister, in his letter to the
Department on January 30 last, on the action of the Argentine Congress
in placing crude petroleum on the “free” list, and the distinguished
minister cites the amount of coal imported here, conveying the idea that
our “free” crude petroleum is to take its place as fuel.
When I say that no crude petroleum comes here, and that, so far as I can
see, no prospect exists that any will come, unless the Standard Oil
Company should build a refinery here, which seems wholly improbable, as
they control the market as it is, you will be better able to appreciate
the benefit of “free” crude petroleum to our commerce. “Free” crude
petroleum was asked for by an importer here who felt that he would be
able to get the railways to use it for locomotive fuel, but the hard
times of the last few years side-tracked that plan entirely, and, when
the Argentine Congress made the article “free,” there was no use for it,
and has been none since. I am of the opinion that this act instead of
helping will hurt us, as it is used here as the Argentine minister has
used it, conveying the idea that it was a concession to us, and one of
great advantage.
There are a great number of articles in the manufacture of which we ought
to and can compete with other countries, which by the Argentine tariff
are either virtually prohibited or made luxuries; these, in my judgment,
are more important to us than any one single item, and my efforts while
here will be in the direction of attracting in every way the products of
as many of our factories as possible to this market.
While their conclusions have not been given to the public, except by the
newspapers, I think I am safe in saying that the work of the Argentine
tariff commission, which has just adjourned, has been in the direction
of increased duties.
What the action of the Government will be before the bill is submitted to
Congress is uncertain. In this connection I beg to inclose a [Page 13] copy of a note I addressed to the
foreign office, in relation to the general subject, on September 18,
last, and to inclose copy and translation of the minister’s reply
thereto.
I shall use my best efforts in trying to secure some concessions from the
scheme submitted to the Government by the tariff commission.
I have, etc.,
[Inclosure 1 in No. 59.]
Mr. Buchanan to
Senor Costa.
Legation of the United States,
Buenos Ayres, September 18, 1894.
Mr. Minister: I beg to acquaint your
excellency with the fact that I am in receipt of a dispatch from my
Government acknowledging my dispatch in which I transmitted the
assurances made by your excellency of the wish and purpose of your
excellency’s Government, in return for the action of the American
Congress in placing wool on the “free” list, to modify and reduce,
so far as possible, the duties on some of the more prominent
articles exported from the United States to this Republic.
It is needless to say that my Government received the information
with satisfaction, and that it sincerely hopes such modifications
will be made as will demonstrate to the American people the wisdom
of the action of the American Congress.
The Department incloses copies of two letters from your excellency’s
minister in Washington, both confirming the views of your
excellency’s Government as expressed by your excellency. In his
letter to the State Department on January 30 last, your excellency’s
minister says:
“The Argentine Government desires to strongly insist upon its opinion
that the approval of this action in respect to wool (referring to
the recommendation of the Ways and Means Committee to place wool on
the ‘free’ list) will extraordinarily increase the volume of the
commercial relations between the two countries and permit the
manufactured products of the United States to enter into active
competition with similar articles of European origin in the rich
Argentine market.
“It is also expected that the Argentine Congress will exempt from the
payment of duties lumber, lubricating and fuel oils, and refined
petroleum from this country, which articles are consumed in
Argentine upon a large scale.”
And, in his note to the Department on July 30 last, he says:
“The inclosed copy of the telegram of the minister of foreign
relations of my Government, in which he acknowledges receipt of the
news of the vote to which I have referred, shows that the executive
power of my Government proposes to advocate additional reductions of
duty in respect to products of the United States of America; and a
commission appointed to study the reform of the customs laws has
already publicly stated its opinion in favor of the reduction, to an
important extent, of duties upon refined petroleum, agricultural
machinery, and white pine and spruce (lumber), which articles are at
present among the principal purchases of the Argentine Republic in
the market of the United States.”
(The minister is mistaken: Pitchpine is of far greater importance to
us than spruce, and is the one class of lumber discriminated against
by your tariff.)
These expressions and the views they represent have given my
Government great pleasure, and it is reasonable to believe had some
bearing on the subject of “free” wool. It is unnecessary for me to
assure your excellency that I, whose views on the subject of tariffs
you well understand, am especially gratified to feel that, in the
wise course indicated, your excellency’s Government can, by reducing
and fairly adjusting the duties and valuations on several American
products, focus the judgment of the American people on the benefits
that follow the free introduction of the great slope products of
sister countries.
In this connection I may say that I will not believe the rumor which
has reached me, from apparently authentic sources, that the tariff
commission now sitting proposes to increase the duty on agricultural
implements, make no change in petroleum, and only a trivial
correction in the glaring injustice of your tariff as applied to
pitch-pine lumber, which is wholly, I may say, a product of the
United States. Such a course would be so inconsistent with the views
of your excellency’s Government, as communicated to my Government,
that I can not consent to credit it.
I hope your excellency will furnish me with an early opportunity of
talking over this matter with yourself and the minister of
Hacienda.
I have, etc.,
[Page 14]
[Inclosure 2 in No.
59.—Translation.]
Senor Costa to
Mr. Buchanan.
Ministry of Foreign Affairs,
Buenos Ayres, September 26,
1894.
Mr. Minister: I have had the honor to
receive your excellency’s note of the 18th instant, referring to the
tariffs in force or projected in both countries.
Taking keen interest in so important a note, I am pleased to state
that I have transmitted it to the minister of finance, calling his
attention to the matter.
It will be very agreeable to me to talk with you in regard to these
matters, and I permit myself to invite your excellency to come to my
office on Tuesday, the 2d of October, at 2 p.m.
I avail, etc.,
