825.85/66a: Telegram
The Secretary of State to the Chargé in Chile (Hofer)
62. Department’s telegram No. 61, dated November 19, 1 p.m.25 In regard to any proposed tariff or shipping legislation by which discriminating import duties would be imposed in favor of cargo carried in Chilean ships, you are instructed, unless you see some objection, to invite the attention of the appropriate authorities to the following laws of this country.
1. Subject to the stipulations contained in section 4228 of the Revised Statutes, mentioned below, section 2502 (as amended) provides that a discriminating duty of 10 percent shall be imposed on merchandise imported into the United States in foreign ships. However, the President, by section 4228, is empowered to suspend the application of this measure in favor of ships of any nation which presents satisfactory evidence that it does not lay discriminating duties on the cargoes of American ships. In accordance with this stipulation a Presidential proclamation dated November 1, 1850,26 suspended the application of such discriminating duties insofar as Chilean ships were concerned, the suspension to continue effective as long as reciprocal exemption of American ships from discriminatory treatment was continued by Chile.
When referring to the above stipulations of law, you should indicate that the adoption by the Chilean Government of the discriminatory measure in question would eliminate the only basis on which the President of the United States is empowered to continue in suspension the law by which Chilean ships would be subjected to similar discriminatory treatment in American ports.
2. If any proposal for discriminatory tonnage or other similar dues on American ships be made, you should, unless you see some objection, inform the Chilean authorities that American laws providing for discriminatory tonnage dues have also been suspended as far as Chilean ships are concerned, but that the President of the United States is empowered to hold these laws in suspension only so long as American ships receive national treatment with regard to such dues and charges in Chilean ports.
3. You should indicate that the intent of the laws to which reference is made is that the ships of each foreign government shall enjoy in American ports the identical privileges which the same class of American ships and cargo may enjoy in the said foreign country.