Mr. Thompson to Mr.
Gresham.
Legation of the United States,
Metropolis, September 22,
1894. (Received Oct. 24.)
No. 291.]
Sir: I inclose memorandum of a conversation I
had with the director-general of the foreign office on the 20th instant.
The memorandum outlines the probable action of the Brazilian Government
in regard to the commercial arrangement in view of the recent changes in
our customs duties.
I also inclose copy of a letter from Consul-General Townes upon the same
subject, complaining that orders for American goods are being canceled
on account of the possible discontinuance of the arrangement.
I have, etc.,
[Inclosure 1 in No.
291.]
memorandum.
During an interview with the director-general of the foreign office
the Viscount Cabo Frio, referring to the recent passage of the new
tariff bill by Congress, stated, unsolicited, that in view of the
fact that all sugars were made dutiable it was the present intention
of the Brazilian Government to give notice on October 1 signifying
[Page 78]
a desire to terminate
the commercial arrangements now existing between it and that of the
United States. The notice would be given in accordance with the
provisions of the arrangement requiring three months’ notice in
advance, and would be made so as to take effect on January 1, 1895.
This action was regarded necessary in order to avoid questions and
disputes which would be likely to result in reclamations against the
Government. Regret was expressed that it had been impossible for
Congress to delay the operation of the sugar schedule, so that the
denunciation could have been made as the correspondence on the
subject stipulated, but indicated that the Government was in no way
displeased that the matter would soon come to an end. That there was
a large party in Brazil violently opposed to the arrangement and
that its early termination would in all respects be
satisfactory.
The conversation was unofficial, and the above can only be regarded
as the present intention of the Government, which may be
changed.
Legation of the
United States,
Petropolis, September 21,
1894.
[Inclosure 2 in No.
291.]
Mr. Townes to
Mr. Thompson.
Consulate of the United States,
Rio de Janeiro, September 19, 1894.
Sir: Further considering the subject of
tariff changes between Brazil and the United States, I beg to advise
that quite a number of merchants of this city have daily called upon
me and made inquiries as to the probable effect the recent changes
in our tariff would have upon articles exported from the United
States to this country. The newspapers of Rio have been publishing
articles on the subject, and I understand the papers at Pernambuco
are urging the abrogation of the rights of commerce which our
country enjoys under the reciprocity treaty.
I have received a copy of the Journal of Commerce of New York, in
which is given in full the schedule of the new tariff in the United
States. From a casual perusal of the same I note that there have
been some changes in our tariff which should prove quite beneficial
to Brazil. The rate on tallow has been reduced from 2 cents to 1
cent per pound, nuts from 5 cents to 3 cents per pound, while
coffee, rubber, hoofs, horns, hides, and grass fibers all remain
free, as heretofore.
Taking the exports from this country to the United States at an
approximate total of one hundred millions of dollars annually, it
appears that only about 4 per cent of that amount is sugar, while 96
per cent is either free or reduced in rate under the new tariff.
The district of Pernambuco alone will be affected unfavorably by our
new tariff. As we are beginning to establish a most satisfactory
trade for American goods here, and as the general sentiment of this
country is now most favorable to American interests, I beg to
suggest that, if expedient, you will take some action looking toward
quieting the rumor afloat in the city to the effect that Brazil will
soon put all of our exports here upon equal footing with other
countries.
Foreign merchants in this city are now doing all they can through
that channel to have orders for American goods canceled and to
forestall the taking of further orders, as I am advised by American
houses resident here and their agents. If it is possible to procure
from the present Administration some indication that our country
will continue to enjoy the present tariff schedule, it would be
quite beneficial to American interests here, while if a treaty could
be negotiated along these lines it would ultimately result in
largely increased exports of our goods.
I remain, etc.,
Wm. T. Townes,
Consul-General.
