Minister Collier to the Secretary of State.

No. 164.]

Sir: Supplementing my dispatch No. 162 of the 3d instant I have the honor to report that the Gaceta of the 3d instant contains the exposition, royal decree, and royal order as to the commercial agreement between Spain and Switzerland.

A modus vivendi is established which is to begin September 5 and to end November 20. During this period Swiss imports into Spain are to be dutiable “according to the second tariff, with all the reductions of the existing treaties.” The increased tariff rates established by royal order of July 1 and by royal decree of July 29 are abrogated. The new royal order is in all respects like the one putting into effect our agreement. The royal decree recites that to begin with the 5th of September there will be applied the second tariff with the rebates stipulated in the treaties in vigor.

As heretofore reported, the permanent treaty will not be published until presented to the Cortes. Notwithstanding this there have been statements, apparently from official sources, announcing the reductions made in favor of Spain. These affect wines, almonds, grapes, preserved fish, lemons, oranges, and extract of licorice.

To us the more important question is, What reductions have been made upon imports into Spain from Switzerland, for whatever they are we, under our agreement, receive the benefits of them. Although there is no positive announcement there are very plain intimations that the reductions will be on condensed milk, agricultural and electrical machinery.

I have, etc.

Wm. Miller Collier.