Mr. Sherman to Mr. Powell.
Washington, October 11, 1897.
Sir: I have received your dispatch No. 35, of the 24th ultimo, transmitting copy of a law recently enacted by the Haitian Chamber of Deputies, to take effect October 1, 1897, which authorizes the levying of discriminatory taxes upon foreign merchants, clerks, etc., in Haiti. [Page 390] Under this law foreign merchants are to be subjected to a tax many times greater than that imposed upon native merchants. No license or tax is required of Haitian clerks. You state that it is intended to enforce this law rigidly. American citizens in business and having large capital invested in Haiti have asked the protection of this Government. You request instructions.
This is by no means the first attempt which has been made by the Haitian Government to increase its revenues by discriminations against foreigners. (See Mr. Bassett to Mr. Fish, dispatch No. 428, of February 17, 1876; Mr. Fish to Mr. Bassett, instruction No. 261, of March 13, 1876; Mr. Durham to Mr. Gresham, dispatch No. 235, of August 28, 1893, and Mr. Gresham to Mr. Smythe, instruction No. 7, of November 27, 1893.)
In the case first mentioned, when a decree had been promulgated by the Haitian Executive, subjecting foreign merchants, etc., to the payment of a license not required of Haitians, Secretary Fish, in instructing our minister, said:
The Department is clearly of opinion that the fifth article of the treaty between the United States and Haiti of the 3d of November, 1864, was intended to protect and should protect our citizens from any discriminations in matters of trade to the advantage of Haitian citizens. Consequently, we can not acquiesce in the license law or decree to which your dispatch refers. If, therefore, there should be any attempt to apply such a law to citizens of the United States, you will protest against it, and will, in the name of your Government, claim from that of Haiti the damages which may be sustained in consequence of the contribution which the license would require.
In 1893 our minister called the attention of the Department to a bill pending in the Haitian Chamber of Deputies, the purpose of which was to levy a personal tax on aliens in addition to other business taxes to which they were subjected in common with native Haitians. In an instruction to your predecessor, Mr. Smythe, Secretary Gresham said:
From every point of view, so far as citizens of the United States established in business in Haiti are concerned, the proposed act appears to violate the reciprocal equality of treatment stipulated by international treaty, and should be so dealt with by you in the event that it becomes a law and an attempt is made to apply it to citizens of the United States.
Article 5 of the treaty referred to above expressly declares that citizens of the United States in Haiti shall not be compelled “to pay any contributions whatever higher or other than those that are or may be paid by native citizens.”
In my opinion the law, a copy of which you inclose in your dispatch, is in direct contravention of this provision of the treaty. You will acquaint the Haitian Government with the views of this Government, and if any attempt is made to enforce the law against citizens of the United States, you will protest in the name of your Government and report the facts to the Department.
Respectfully, yours,