821.1561/90
The Acting Secretary of State to the Minister in Colombia ( Caffery )
Sir: The Department has received your three despatches dated February 17, March 19, and March 28, 1930,6 regarding the complaint made by Messrs. Grace and Company against the tax imposed by the Colombian Government on the use of privately owned lighters in the port of Buenaventura. Your report in the last of the foregoing three despatches that a decree had been issued lowering the tax from 25 to 15 per cent has been communicated to the Company in a letter of April 24, 1930.7 Your statement in the despatch of March 19 that Colombian officials had alleged, in justification of the measure, that “similar taxes are imposed in the harbor of New York on similar services” has been brought to the attention of the Secretary of the Treasury in a letter of April 24, 1930; and he has been asked to indicate whether it is true that similar taxes are imposed in the harbor of New York on similar services. As soon as his reply shall have been received it will be communicated to you by telegraph.
There is enclosed for your further information and consideration a copy of an additional letter dated April 22, 1930, from the Company on the subject.7 In view of the statements made therein you are authorized to take such further informal action with reference to the matter as you may deem proper.
In this connection reference is made to the intimation in your confidential despatch of February 17, 1930, which the Department has noted with especial interest, that the situation complained of may have grown out of a contest between the two United States concerns mentioned by you as being interested in the matter and whose interests with reference to it appear to be conflicting. You will, of course, keep this carefully in mind and because of it handle the matter with the greater caution. Should you, however, consider it proper to take any further action in the matter on behalf of Messrs. Grace and Company you might invite the attention of the Colombian authorities to the assertion in the Company’s letter, a copy of which is enclosed, of a belief that the discontinuance of private lighterage operations in this port, which is said to be contemplated by the Colombian authorities, would not only injure their established lighterage business but would restrict the facilities of the port and thus interfere with international commerce. You might also call attention to the Company’s assertion that it was at the request of the Colombian Government [Page 646] that the Company purchased their lighters and established the existing service at Buenaventura. The Department prefers, however, that you should take no further action with reference to the matter until you shall have received the telegraphic instruction referred to above, communicating the Treasury Department’s reply to the inquiry whether it is true that similar taxes are imposed in the harbor of New York on similar services. It is supposed that the telegraphic instruction will probably have reached you before receipt of this mail instruction.
I am [etc.]