Señor Hurtado to Mr. Blaine.

Sir: I have the honor to acknowledge receipt of your note of the 7th instant, in reply to mine of the 25th of the previous month, and beg leave to offer some remarks on the contents of your communication, in, a sincere endeavor to reach some satisfactory result in the matter we have under consideration.

[Page 458]

With reference to the first part of your note, in which you state that the President of the United States relied on the constitutional prerogative vested in the President of Colombia to initiate and conduct negotiations with foreign Governments for action in that direction, in response to the invitation addressed to me on the 3d January, 1891, I beg to observe that the communication referred to, and to which you also adverted in your former note of the 7th January, has not been received at this legation. But I do not suppose that this fact is of importance, presuming said communication to only contain the substance of what you stated to me in our interview of the 13th March, 1891, when you called my attention to the provisions of the third section of the tariff law of the 1st October, 1890, and suggested the desirability of my asking instructions from my Government to deal with that matter at the proper time. On the 21st of June then next following I had the honor to meet Gen. John W. Foster, acting on behalf of the State Department, to exchange ideas on the subject of the reciprocity proposals. I stated on that occasion that the Government of Colombia held that in virtue of the intimate friendly and exceptionally close relations established between the two Governments by the terms of the treaty of amity, commerce, and navigation entered into in 1846, the advantages accruing from which to the United States of America were supplemented by the freedom of the ports on either side of the Isthmus of Panama, and, later on, by the exemption from tonnage and other dues on vessels entering said ports, the commerce of Colombia was entitled to most of the privileges which the United States might concede to the trade of other nations, and especially to all favors and grants touching import duties on merchandise introduced into the United States under whatever conditions the concessions might be made.

It will be readily understood that, while holding such convictions, the Government of Colombia could not and can not initiate negotiations to acquire the privilege of importing coffee and hides free of duty, by giving a consideration therefor, in addition to that already conceded under the treaty for the enjoyment of the same privilege, without thereby waiving and parting with important treaty rights. To follow such a course would expose the President to the obloquy of Congress when the negotiation would be presented for the approval of the Legislature, which in all probability, would be withheld from it as the only means of preserving the existing treaty unimpaired.

It is unnecessary to examine just now whether or no the opinion held by the Government of Colombia be correct or not. This question is not at present under consideration, and there is no desire on my part to bring it forward. Reference has been made to it ex necessitate for the purpose only of explaining the influence it has had in preventing the invitation to enter into the proposed reciprocity arrangements in the form of a treaty from being accepted, and I sincerely hope that this explanation will remove the impression which, I regret, should have been formed by the President of the United States, to the effect that his overtures tending to the development of the trade between the two countries have not been received in a conciliatory spirit.

The President of Colombia, on the contrary, adheres to the policy paving such an object in view, to the fullest extent not incompatible with the legitimate interests of Colombia, and is anxious to manifest, on this occasion, the value he places on the friendly and harmonious relations which happily exist between the two Governments and his desire that they should continue unimpaired. It is chiefly moved by these considerations that the Government of Colombia cheerfully entertains the reciprocity proposals made by the President of the [Page 459] United States, and consequently feels that he should be allowed some discretion in the manner of giving tangible expression to these sentiments.

But let it be supposed that the cordial spirit in which the President of Colombia has met the overtures of that of the United States arose out of a sense of equity for benefits accruing to the trade of Colombia from certain liberal provisions of the tariff law of the United States, would it be indispensable, even if such were the case, that the return or acknowledgment of the benefit received should take the form of a treaty or convention? Would not the idea and the principle of reciprocity be better observed and carried out by legislative enactments on the part of Colombia of a like nature to those adopted in the matter by the United States and which it is intended to reciprocate?

To arrive at this mode of adjusting the pending question was the object aimed at in my note of the 25th of February, to the accomplishment of which I foresaw no other obstacle than the short time fixed by the President of the United States to reach a result; for a solution by the independent action of the Government of Colombia was indicated as acceptable in your note of the 7th January. You there say:

I am further directed by the President to inform you * * * that unless on or before the 15th day of March next some satisfactory commercial arrangement is entered upon between the Government of the United States and the Government of Colombia, or unles some action is taken by the latter Government whereby the unequal or unreasonable state of the trade relations between the two countries is removed, the President will, on the day last named, issue his proclamation, etc.

I conveyed to you the assurance, direct from the President of Colombia, of his favorable disposition toward the proposed arrangements; of his earnest desire to follow such a course as would lead to an amicable, equitable, and mutually satisfactory result, and that, with this end in view, he would present to Congress, immediately after its organization, a bill to extend the free list of the Colombian custom-house tariff. This virtually constituted an acceptance of the second alternative in the issue presented by direction of the President, as set forth in the preceding extract from your note of 7th of January; and all that is asked to carry these assurances into effect is the time indispensable for their execution, which is no longer than would be required to arrive at any other mode of settlement of this question, for no arrangement could be completed before the meeting of next Congress.

Whatever may be thought of the plan conceived by the President of Colombia, as above set forth, allow me to assure you that it is prompted by a feeling of friendliness and deference for the Government of the United States; and it is therefore with deep regret that I perceive it is summarily rejected, without even adopting it as a basis of further discussion, which I believe would have been productive of good results.

I will now beg leave to offer a few remarks on the observations which you are pleased to make respecting that part of my note which had; reference to imports into Colombia, and I shall endeavor to be as brief as possible, in order not to take up too much of your valuable time.

You have misunderstood me when you impute to me having implied that the total importations from the United States into Colombia of “wood and all manufactures of the same,” also of all “iron and steel, and manufactures thereof,” collectively valued at $1,168,011, were introduced free of duty. It is obvious that such could not have been my meaning, for in the same part of my note, where I am represented as concurring in this error, I had carefully enumerated the few articles of wood and of iron and steel which form part of our free list; and it is not possible that I could have intended to imply that the value of [Page 460] such of these as were imported into Colombia was represented by the value of the total importations of articles of wood, iron, and steel, in which the former were included and formed but a small part thereof.

The only place in my note wherein I have alluded to the value of the free goods imported from this country into Colombia will be found toward the conclusion of my communication. I there estimate the importation of free goods from the United States into Colombian ports (other than Colon and Panama) at 5 per cent of the total American import trade, or, say, at about $200,000. Adding thereto about one-half of this sum for importations through ports of the Isthmus, the total amount of free goods imported into Colombia, as derived from any computation of mine, would be in the neighborhood of $300,000 only. I make these remarks in an explanatory way and not in a Spirit of argument.

This sum of $300,000, as value of the total free-duty import, makes but a small showing; but be it remembered that, on the whole, 40 per cent of the American imports into Colombia pay no duty whatsoever. Hence, if there was no free list nor free ports in Colombia, and the total amount of the tax at present collected on American imports was distributed on and contributed by the total volume of imports, the duties levied under that condition of things would amount to only 60 per cent of the rates charged at present, which would be equivalent to a reduction of 40 per cent on the existing tariff.

You conclude your remarks on the subject of free goods by the following observation:

My study of the free list has not brought to my notice any marked favor shown to the products of the United States.

I must, therefore, again call your attention to the fact that the free list embraces an important class of articles, viz, lumber and timber, railway carriages and cars, frame buildings and wooden houses which, I when destined to tropical countries, are required to chiefly consist of yellow or southern pine, and become therefore exclusive importations from this country. At the same time, there is no article of free importation into Colombia in which the United States could not compete with other nations. I am, therefore, of opinion that our free list favors United States products.

Immediately after the above quotation you add:

On the contrary, I find the tariff, as a whole, to be a serious impediment to the enlargement of our trade relations.

This may be said of most if not of all tariffs. We once carried on a flourishing and constantly increasing trade in tobacco with this country. Your tariff destroyed that trade by establishing a very high duty on the article. But we have no right to complain. Your Government is the sole arbiter as to the wisdom or necessity of maintaining a high tax on tobacco.

I am free to admit that the tariff of Colombia is a high tariff, and that it must consequently militate against the full development of our trade with foreign nations. But this has to be so; it is an unavoidable I evil common to all South American countries, where the revenue is chiefly derived from import dues; and until such time as other systems of taxation be discovered and found efficient, so as to remove the burden which now weighs almost exclusively on imports, the evils of a high tariff must unfortunately be endured.

You observe that I have entirely omitted to mention in my previous note one important aspect of the question which should have great weight in determining it. This is, that while all Colombian produce is [Page 461] admitted free of duty into this country, American goods are subject to a heavy tax when introduced into Colombia.

The object of my note of the 25th of last month was solely to propose a solution of the situation growing out of the provisions of the United States tariff law, by the cordial adherence of my Government to the policy of the United States in its endeavor to enlarge the trade between the two countries. That being the case, the consideration of the question under other aspects seemed to me not only premature but undesirable, as more likely to do harm than good, by possibly giving rise to irritating discussions, for, I apprehend, that we are not in perfect accord regarding the rights and obligations of our respective Governments in connection with the subject-matter. However, lest it appear that I am evading a point to which you seem to attach importance, I am constrained to offer a few remarks thereon.

The freedom from import duty on coffee, for instance, is not an advantage conceded to the foreign grower of that grain. In our coffee markets this staple is sold by the producer at one and the same price, whether it be purchased for exportation to the United States, where it enters free of duty, or for France, where it is heavily taxed on being landed. The reason of this is that the duty levied on the coffee does not fall on the exporter of the commodity, but is borne by the consumer of the article. Hence the provision of your tariff which makes coffee a free import accrues exclusively to the benefit of the people of this country, and I do not perceive the equity of demanding compensation therefor from the Government or people of coffee-producing countries.

What precedes would not only apply to cases where the United States might grant freedom of entry to articles produced or manufactured in this country, for in that event the foreign producer would be given the privilege of bringing his commodities (representing raw materials capital, and labor) into competition with those of this country, giving him the benefit of a vast market, and for those advantages compensation may be justly demanded.

On the other hand, when a manufacturer in this country sells his wares he does not inquire, because it does not concern him, what disposition is going to be made of the goods sold. He has a price for them, and when this is paid him his interest in the articles sold ceases to exist.

When a parcel of goods is thus bought by the agent of a Colombian merchant it becomes Colombian property, and upon arrival of the goods at destination the property comes under jurisdiction of the Government of Colombia. Then and there a tax is levied on the importation in the exercise of a sovereign right claimed by every nation and recognized by public law. The tax is in the first instance disbursed by the Colombian importer, who recoups himself of his outlay when he sells the goods to the Colombian consumer. I submit that these fiscal measures, not being injurious or oppressive to American interests, there exists no cause of grievance against Colombia for adopting them.

In the closing paragraph of your note you do me the honor to inform me that the President hopes I will present this subject anew to my Government, and convey to it the assurance that he will be greatly gratified if the action which it may take will relieve him of the unpleasant duty, pointed out in your note of the 7th of last January, imposed by the law of the Congress of the United States.

It will always afford me pleasure, and indeed it is my duty, to forward to my Government any and all recommendations or suggestions which the President may be pleased to make, as I do in the present [Page 462] case. But I beg leave to observe that if the 15th of the present month is to be retained (and you do not intimate anything to the contrary) as the date on which the President will issue his proclamation suspending the free importation of coffee and hides of Colombian origin, it is hopeless to rely on communications from Bogota for any change of situation before said date.

I have (yesterday) received written communications from Bogota acknowledging the receipt of my note of 8th January last transmitting copy of yours of the 7th of same month.

I am directed therein again to express the regret with which the decision of the President of the United States respecting the Colombian tariff and the intimation contained in your said note have been received. I am further directed, however to reiterate to you, for the information of the President, the assurance, in the most positive manner, that concurring in the spirit and object aimed at in section 3 of the United States tariff law, namely, the development of commercial intercourse, the President of Colombia will use all influence at his command to obtain from Congress at its next meeting such an extension of the list of nondutiable merchandise as will justify any action which the President may be pleased to take postponing until the meeting of Congress at Bogota in July next the suspension of the free entry into this country of coffee and hides of Colombian origin.

Accept, etc.,

J. M. Hurtado.