Minister Graves to the Secretary of State.

No. 60.]

Sir: I have the honor to report that the commercial and navigation treaty between Sweden and Germany, which has been for six months in negotiation, has been concluded by the commissioners and submitted to the Riksdag for approval.

In the report made and the newspaper comments upon it the statement is made that the concessions granted by the two countries from their present tariffs, based on the last fiscal year, is by Sweden 272,000 crowns and by Germany 5,178,000 crowns. But in commenting on the fact that the term of the treaty is only about four years, expiring December 31, 1910, the statement is made that this was done to allow Sweden an opportunity to revise its present tariff, when the subject can be again treated. It is mentioned that Germany “had prepared herself for these negotiations by making a new, skillfully elaborated, and up-to-date customs tariff to this end, so specified that every heading embraces just the duties which will be called for with respect to the industries thereby touched, whereas the Swedish customs tariff, made in 1892, must in many respects be considered antiquated, and owing to the lack of specification it can not be considered to fill the demands which must now be placed on a skillfully elaborated protection for industry under present conditions,” and that the disadvantage hereof has clearly stood forth during the present negotiations.

The special licenses heretofore required by German commercial travelers in Sweden will still be retained with but slight modifications.

The imposition by Sweden of an export duty on iron ore, which has been mooted, was apparently disapproved by Germany, the report stating that the necessary concessions for the benefit of Swedish commerce could not be obtained if that was imposed. The treaty is recommended by the Government.

I have, etc.,

Charles H. Graves.