Mr. Beaupré to Mr. Hay.

No. 188.]

Sir: Referring to my No. 160a of September 29, 1903, concerning the taxes and charges on shipping at Panama, I have the honor to inclose herewith a copy and translation of a note from the minister for foreign affairs on the subject.

I am, sir, your obedient servant,

A. M. Beaupré.
[Inclosure with No. 188, October 23, 1903—Translation.]

Mr. Minister: On account of the presence of an alarming degree of bubonic plague in various points on the Pacific coast it was determined to use a Government ship for a lazaretto in the Bay of Panama, and in accordance with law 106 of 1892, authorizing the organization of the sanitary service in the marine ports of the Republic in time of peace and placing an extraordinary contribution on the boats which arrive in Colombian ports, the governor of the department using these legal rights, issued the decrees of June 24 and August 4 of this year, by which a tax was temporarily levied on boats of more than 1,000 tons register arriving in the ports of Panama and Colon, proceeds of which were to defray the expenses of that lazaretto. The urgency of the case prevented notice of such police measures being given to the public sooner than their insertion in the official publication.

The ports of Panama and Colon being united by rail, the same measures taken in either of these benefit the other and are taken not only to attend to transit sickness and to avoid contagion, but to favor navigation in both oceans. This shows how fair it is that not only the ships arriving at Panama but also those entering Colon should pay the tax for the plague hospital.

To facilitate foreign commercial relations as those of importation, exportation, and transit, etc., which are or are not permitted to be executed in the ports of the Republic the law divides these into free and closed ports.

The designation of free ports does not come from any international pact, neither does it signify that the vessels arriving in those ports are exempt from the payment of taxes or contributions. In the binding treaty between Colombia and the United States it is stipulated that the citizens of each of the contracting parties may frequent all the coasts and territories of the other, and reside therein and do business in all classes of productions, manufactured goods, and merchandise; that they will enjoy all the rights, privileges, and exemptions in navigation and commerce which the citizens of that country enjoy or may enjoy in accordance with the laws, decrees, and uses established there, and that no other or higher duties will be levied on the tonnage of the respective ships.

The free transit of the Isthmus of Panama is conceded to the citizens of the United States and the transport of their products, manufactures, or merchandise of lawful [Page 217] commerce without the imposition of other taxes or contributions other than those placed on the natural products of the country (Panama) under similiar circumstances.

There are these advantages of an equal treatment, and there is no other in favor of the ships of the United States.

In the polite note of September 29 last, your excellency informs me that you have received a protest from the vice-consul-general of the United States against the taxes and contributions on shipping levied in the port of Panama, and especially against said decree No. 91.

In reference to the different points treated of in said note, in which your excellency is also pleased to express the hope that means will be taken in the matter, I have the honor to inform your excellency, in addition to what I have expressed in this note, that according to the information which has been given me in this matter, it is hoped that in a short time all fears of the invasion of the bubonic plague on the Isthmus will have ceased, and immediately the tax levied for the lazaretto will be rescinded.

I avail myself of this opportunity, etc.,

Luis Carlos Rico.

His Excellency A. M. Beaupré, etc.

  1. Not printed.