Mr. Olney to Sir Julian Pauncefote .
Washington , February 18, 1896 .
Excellency: I have the honor to acknowledge the receipt of your note of November 25, 1895, in relation to the reciprocity in maritime charges upon vessels of either country in the ports of the other. You requested that, before communicating further with me touching the matter, you might be favored with the observations of the Secretary of the Treasury on the minute of the privy council of Canada, transmitted with your note of November 21 last, since, if the facts therein stated were not open to dispute, it would seem that they dispose of the complaint of this Government.
I have now to say that this minute has had the careful consideration of the Secretary of the Treasury. His judgment, in which I concur, [Page 713] is that it appears to be based on a misunderstanding of reciprocity in maritime charges. The understanding of the Government of the United States in the matter of the uniform treatment of foreign and domestic vessels is that charges on foreign vessels in the ports of the United States should be no higher than those imposed on vessels of the United States in the ports of this country, and that the charges imposed on American vessels in foreign ports should be no higher than the charges imposed on the vessels native to those ports. This is the practice of this Government, and it is in accord with nearly all of its treaties of commerce and navigation with foreign powers.
The fact cited in the Canadian minute, that the charges of this Government on lake ports are larger than those imposed by the Dominion authorities, will, upon more mature reflection, I am confident, be regarded as irrelevant, since those charges are imposed equally on American and foreign vessels.
It is acknowledged in the Canadian minute that a higher charge is imposed, at entry and clearance, on American than on Canadian or British vessels. As conclusive on this point that the Canadian tax distinctly discriminates against American vessels, I shall cite the following extract from that minute:
The Canadian authorities have long since dispensed with all such fees, with the exception of those at present in question; and while regretting that any fees are still exacted by the United States authorities, he [the Canadian minister] can not, while such exactions exist, recommend legislative action with a view to a change in the law which provides for the exaction of the one remaining fee from foreign vessels entering Canada at ports above Montreal, but would, were the United States authorites disposed to abolish those fees still exacted by its officers, heartily recommend such a change in the law as would permit of a removal of the fees exacted in Canada herein referred to.
It is immaterial to consider whether this fee of $1 levied upon American vessels entering or clearing from Canadian ports is for tonnage or lighthouse dues. It is sufficient to know that it exists, and that it constitutes an unfair discrimination against American commerce.
It is evident to my mind that the Canadian council has misapprehended the essential point involved in this discussion, and has failed to see that an actual discrimination in the matter of port charges against vessels of the United States entering the ports of Canada is not offset by the circumstances that charges upon all vessels, whether under the British or American flag, in the lake ports may be, in fact, larger than similar charges in Canada upon American vessels.
Section 2 of the act of Congress approved June 19, 1886, as amended by that of April 4, 1888, provides:
That such proclamation shall exclude from the benefits of the suspension herein authorized the vessels of any foreign country in whose ports the fees or dues of any kind or nature imposed on vessels of the United States, or the import or export duties on their cargoes, are in excess of the fees, dues, or duties imposed on the vessels of such country or on the cargoes of such vessels.
This Government is not without hope that the Canadian council will perceive from this full statement the obvious misunderstanding that has arisen, and that a different and more satisfactory conclusion may be speedily reached, to the end, as heretofore expressed, that Her Majesty’s Government may see its way to promptly equalize the charges on American vessels entering and clearing from Canadian ports with the entrance and clearance fees imposed on Canadian ship ping in the Dominion.
This Government does not desire, in case it can possibly be avoided, to resort to a revocation of the proclamations of the President made in [Page 714] pursuance of section 2 of the act cited, and therewith the exclusion of British vessels from the exemptions from tonnage tax in the ports of the United States, which were authorized by that act and prescribed by those proclamations. The continuance of this discrimination, however, will leave it no option in the matter.
I trust that you will promptly bring these observations to the attention of the Dominion authorities, and, in view of the long time that has elapsed since the subject was first presented, that I may receive, for communication to the Secretary of the Treasury, the final reply of the British Government at the earliest practicable date.
I have, etc.,