File No. 21274/3.

Minister Brown to the Secretary of State.

No. 101.]

Sir: I have the honor to submit herewith copies of correspondence relating to the proposed nationalization of vessels owned by foreigners [Page 367] residing in Honduras in accordance with the Honduranean laws of navigation, which have been recently enacted and copies of which, I understand, were duly transmitted to the department by Consul Alger.

The present difficulty centers about Article I of decree No. 112, which reads as follows:

All vessels built in the shipyards of the Republic, or of foreign construction, for the service of individuals residing in the Republic, natives or foreigners, will be considered as Honduranean, and, therefore, can not fly any other flag.

This legation is in possession of very limited references on this subject of the nature of precedents, but I have been unable to find, either in international law or in a common-sense interpretation of the treaty between Honduras and the United States, which provides for complete liberty of commerce, any justification for the requirements of the law above quoted, I felt compelled, therefore, in order to fully safeguard American rights in this respect, to address to the Honduranean Government a note on the 11th instant, as per inclosure No. 2, and also to send a telegram to the consular agent at Trujillo on the same day (inclosure No. 3), and trust that my action in this regard will meet with your approval.

I am inclined to believe that the Honduranean Government is now beginning to realize the extreme and perhaps insuperable difficulties in the way of enforcing strictly the laws in question, and it is more than likely that the offensive provisions of the law under consideration will remain a dead letter.

In the meantime I will keep the department fully informed as to any further developments in this matter, and trust there will be no disagreeable incidents in connection with any attempted application of the law in the extreme sense above indicated.

I have, etc.,

Philip Brown.
[Inclosure 1.]

Minister Brown to the Minister for Foreign Affairs.

No. 44.]

Mr. Minister: I have the honor to inform your excellency that this legation is in receipt of a communication from the American consular agent at Trujillo, stating that the collector of customs at that port has notified him that in view of the new “navigation laws” (decree No. 50), which go into effect on the 12th instant, after that date he will neither enter nor clear vessels under a foreign flag owned by persons resident in this Republic nor vessels registered under 100 tons net. The consular agent furthermore reports that the authorities at Iriona have given notice that the American tugboat La Crosse, owned in New Orleans and employed in the service of loading and unloading of vessels, will have to be placed under the Honduranean flag.

It is to be assumed that the local authorities have misinterpreted the laws referred to, but in order to avoid any misunderstanding, I would state that while the right of Honduras to regulate its coastwise trade as it pleases is fully recognized, on the other hand it can in no way be admitted that foreign-owned vessels, engaged in commerce between Honduras and other countries, should be compelled to conform to the requirements of the laws, as interpreted by the local authorities, referred to. Such action would clearly be in contravention of international law and the provisions of the treaty of amity and commerce between Honduras and the United States.

I am this day telegraphing in the sense above indicated to the consular agent at Trujillo, but in order that there may be no serious regretable incidents in this connection, I would request your excellency’s Government to kindly [Page 368] confirm this understanding of the laws in question and to send telegraphic orders immediately, not only to Trujillo, but to all other ports of Honduras, for the instruction and guidance of the authorities whose duty it will be to enforce the new laws of navigation.

Accept, etc.,

Philip Brown.
[Inclosure 2.]

Minister Brown to Consular Agent Glynn.

[Telegram.]

Referring to your communication of July 27, would state that if the local authorities should attempt to interfere in any way with vessels of any size owned in the United States and engaged in commerce between Honduras and any other foreign country it would be considered as a breach of international law and in contravention of the treaty of amity and commerce between Honduras and the United States, and such action could only be considered as an insult to the American flag, which you will indignantly protest against and take all means in your power to secure protection for American rights. For your personal information I would state that the laws concerned refer evidently to foreigners domiciled in Honduras, and consequently that as all American citizens constructively retain their domicile in the United States, the law for no other reason could have no application to them. Moreover, as regards the tugboat La Crosse, article 24 of decree No. 112 expressly exempts boats employed in loading and unloading vessels from the requirements of this law.