File No. 611.3731/21.

The American Minister to the Secretary of State.

No. 685.]

Sir: Referring to my 679, I have the honor to transmit herewith a copy and translation of a personal note from Secretary Sanguily received last night, in reply to the communication made by me on March 16 with regard to sugar. * * * The secretary errs in stating that he brought this matter to my attention last October, but he did so early in January, several weeks before any bill in regard to it was introduced in the Cuban Congress. No instructions came, however, until the receipt of your telegram, although the matter had been treated by me in dispatches Nos. 550,554,1 582,1 589,1 616,1 626, 646, and 657,1 during the months of January and February. * * * I can understand the possible necessity of making Cuba maintain preferential treatment as long as the treaty is in force and there is any duty at all on sugar, but are we obliged to object if the entire duty is removed? * * * I venture to suggest this solution to your consideration, for as long as even infinitesimal preferential treatment maintains, Cuba can be prevented from adhering to the Brussels Convention by her competitors. Or would we consent to a revision of the reciprocity treaty as already suggested by Sr. Sanguily on several occasions? * * *

I have, etc.,

John B. Jackson.
[Page 105]
[Inclosure—Translation.]

The Cuban Secretary of State to the American Minister.

My Dear Mr. Jackson: I beg personally to draw your attention to one of the two notes which you kindly handed me the day before yesterday—the one referring to the preferential reduction upon sugar imported from the United States. The indication conveyed in that note places the Cuban Government in a very difficult situation. You will recall that ever since it was known here, last October, that the next Brussels convention would penalize Cuban sugars if we should not place ourselves in the position previously demanded, I approached you, relying upon the invariable kindness with which you have always treated me, with the request that you inquire of the United States Government its opinion as to whether any step upon our part that should lower the duties on sugars imported into Cuba could, in the judgment of the American Government, affect the benefits accorded American industry under the treaty of commercial reciprocity in force.

As I took the liberty on several occasions to recall the matter to your attention, and as I received no reply of any kind from your Government indicating that such a measure might be regarded as contrary to the terms of the treaty in question, the Cuban Government legitimately understood that no difficulty existed and that indeed the matter was of no real interest to the United States.

In the circumstances the Cuban Government thought itself free to proceed as the menaced interest of Cuba’s principal industry recommended; hence, upon recommendation of one of the departments of the Government, the President sent a message to Congress recommending a measure to avert the Brussels menace.

In pursuance of that message, Congress passed and the President of the Republic sanctioned the law reducing the duty on imported sugar, published in the Gaceta Oficial of February 25 this year.

Neither when the message in question became public, nor during the discussion of the bill to which it gave rise, nor from the date (ut supra) of the promulgation of the law until the 16th instant, had this Department received any intimation from the Government of the United States. Therefore, despite its purpose to avoid all difficulty, it was impossible that the Cuban Government should not consider that, in the opinion of the United States Government, it was authorized to assume itself absolutely free to act as it did in aid of the exportation of Cuban sugar to European markets, especially in view of the fact that, the importation of sugar from the United States to Cuba being of such insignificant quantity, we inferred that this circumstance was the reason why, during such a long period, the American Government should have abstained from offering timely suggestions. The Cuban Government, at least, was justified in this inference, since as a matter of fact the total importation of sugar from the United States to Cuba during the entire (fiscal) year 1908–9 amounted to but 1,565 pounds, valued at $74, and of refined sugar 40,422 pounds, valued at $1,830.

And the Cuban Government has acted in such good faith that in reducing the sugar schedule of the tariff it went even further than the requirements of the Brussels Convention.

But now, my dear Mr. Minister, your note creates for Cuba and her Government a situation as delicate as it is embarrassing, for since even in the case of an American export so utterly insignificant as that of sugar, as shown by the figures I have quoted above, the Government which you so worthily represent takes the stand indicated in your note of the 16th—with which Cuba is now for the first time acquainted—the Cuban Government must apply again to Congress to reestablish the former status, to the consequent amazement of Europe, our own damage, and with no compensating advantage to American industry that would justify the exaction of such a painful sacrifice upon the part of our Government. Unless, indeed, the American Government, in whose sense of justice and unquestioned and positive friendship our country so thoroughly confides, shall overlook this incident, of which we do not feel that we are in the least responsible, especially when, by waiting a little, it may turn out that the law passed by the Cuban Congress is inefficacious for the end contemplated because of the possible predominance among the signatories of the Brussels Convention of the idea that Cuba is favored by advantages regarded by them as [Page 106] “bounties” (“Primas”) in the terms of the treaty of commercial reciprocity with the United States, rather than by the protection of her own tariff.

I have taken the liberty, by dear Mr. Jackson, to offer you this brief statement of the situation brought about by the note of your Government, with the idea of getting around these unexpected difficulties, so that, without detriment to legitimate interests, our dignity shall not suffer, and, above all, to the end that by no means shall any alteration occur in the affectionate, sincere, and cordial friendship which binds our countries and their Governments, with the assurance in advance that for our part we wish to preserve it immutable.

And I embrace, etc.,

Manuel Sanguily.
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