Mr. Gresham to Count Reventlow .

No. 3.]

Sir: I have the honor to acknowledge the receipt of your note of the 19th instant, concerning the discriminating duty of one-tenth of 1 cent a pound on sugar which receives a bounty on exportation to the United States from Denmark.

Your representations rest in part on the fifth article of the treaty of 1826, and in part on the considerations you adduce to show that no direct bounty whatever is paid on sugars exported from Denmark; that an indirect bounty is allowed by way of refund upon a certain class of refined sugar (melis) only when manufactured in Denmark and exported therefrom; and that no bounty, direct or indirect, is paid on sugars produced in and exported from the Danish West India Islands, but, on the contrary, those sugars are subject to an export duty of 5 per cent ad valorem.

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Discussion of the questions you present may with propriety be postponed in view of the pendency of a bill in Congress providing for the repeal of the section of the present law imposing the differential duty. When that bill is disposed of, I may communicate further with you on the subject.

Accept, etc.,

W. Q. Gresham