Mr. Hay to Mr. Beaupré.

No. 397.]

Sir: I have to acknowledge the receipt of your No. 599, of the 23d of April last, in regard to expropriations.

In reply I have to say that the benefit of the provisions of Article XVI of the treaty of 1866 between Colombia and Great Britain in relation to exemption from military contributions and expropriation of property in Colombia can not be claimed by the United States by virtue of the most-favored-nation clause of our treaty of 1846 with New Granada (Article II), by which the United States and NewGranada mutually engage not to grant any particular favor to other nations “in respect to commerce and navigation” which shall not immediately become common to the other party, “who shall enjoy the same freely if the concession was freely made, or on allowing the same compensation if the concession was conditional.”

As between the United States and Colombia, the matter is governed by the express terms of the treaty of 1846 between the United States [Page 305] and New Granada (Colombia), Article VIII of which provides that “the citizens of neither of the contracting parties shall be liable to any embargo nor be detained with their vessels, cargoes, merchandise, or effects for any military expropriation nor for any public or private purpose whatever without allowing those interested an equitable and sufficient indemnification.

I am, etc.,

John Hay.