Mr. White to Mr. Hay.
Berlin, February 13, 1899.
Sir: Referring to ray dispatch, No. 737, of the 10th instant, I have the honor to inform you that the interpellation in regard to the commercial relations between the United States and Germany was reached at too late an hour on that day to be discussed, and that consequently it was not taken up by the Reichstag until the afternoon of Saturday, the 11th instant.
That afternoon, after Minister von Bülow, the imperial secretary of state for foreign affairs, had declared his readiness to answer the interpellation, Count Kanitz, its introducer—in a speech of considerable length, which was remarkable for its lack of aggressiveness—referred to the increase in American importations throughout Europe and the decrease in exportation to the United States, reviewing the whole of the American tariff legislation since 1861 and describing what he called the American transition from free trade to extreme protection, and mentioning in particular the Saratoga agreement of 1891 and the more recent convention with the French Republic, the advantages of which had been denied to Germany by the United States—a fact which he considered an absolute breach of the “most-favored-nation” clause of the treaty of 1828 with Prussia. He said that in consequence of this it would not be necessary to give notice of intention to terminate that treaty, but that the German Government was at once in a position to apply the higher rates of duty prescribed in its general tariff. He stated that in his opinion German agriculture could supply all domestic demands for wheat, rye, and meats, and that German mines could do the same in the case of raw copper; that cotton could be imported from Egypt and India, and petroleum from Russia; and that under such circumstances America would feel a tariff war, should it actually come to that, much more than would Germany. He hoped that the Government would show the necessary energy in protecting home interests.
Minister von Bülow at once arose and read a formal reply.* * * In this reply he stated that negotiations were being conducted with the United States Government in regard to commercial matters at the present time, and that consequently, in accordance with diplomatic usage, he was not in a position to discuss them. He wanted the house to know, however, the spirit (geist) in which these negotiations were being conducted. Germany’s commercial relations with the United States rest upon the treaty between the United States and Prussia of 1828, and the similar treaty with the Hanse Towns of about the same date. He discussed in detail Articles V and IX of this treaty, explaining the different interpretations given to them by the two Governments concerned. He referred to the treatment of German sugar under the Dingley tariff and stated that German representations in the matter had been so far successful that the indirect export premiums upon sugar exported from other countries were now considered by the American customs officials. He then referred to the question of [Page 298] tonnage dues, reciting the action of our Government in 1888 and the reversal of the same in 1896, adding that there appeared to be some probability that this question would be regulated by legislation in the United States. He further stated that the German Government had repeatedly informed the American Government of its views in these matters, in regard to the refusal to accord to Germany the benefits of the recent agreement with France, and the action of the American customs officials in regard to exports from Germany. In his opinion it is probable, in view of the increasing exportation of American goods to Germany, that the friendly discussion now going on will have a satisfactory result, and consequently he expressed the hope that the house would show that it had confidence in the Government.
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