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No. 10.]

HAITI.

DISCRIMINATING DUTIES.

Mr. Smythe to Mr. Gresham.

LEGATION OF THE UNITED STATES,

Port au Prince, Haiti, November 29, 1893.
(Received December 13.)

SIR: I desire to submit to your Department the suggestions and recommendations in this dispatch in the hope that they may induce the Executive to recall the proclamation of his predecessor suspending the operation of the McKinley bill as it relates to Haiti. I presume, of course, inasmuch as the Republics of Venezuela and the States of Colombia were affected in the same way, and as all the reasons that can be urged in one case are equally applicable to the others (so far as I can determine), that the President may not see fit to make what might be considered an invidious distinction in favor of one of the powers.

Aside from the patent fact that the proclamation referred to was in contravention with treaty agreements, I have become convinced after a patient and laborious investigation that such action would materially increase the volume of trade between the United States and Haiti, and be productive of a state of feeling that would tend to promote any interest that your Department may desire to advance. The Executive of the United States is already regarded as a friend to Haiti because of certain decisions of your Department during his former administration (relating to the claims of Pelletier and others), and any action on his part now in advance of legislation on the tariff would be construed as an act of grace and good will, and would not only promote every American interest in Haiti but would place this legation in a position to effectually combat the influence of the powers heretofore predominant in the foreign office.

In support of my recommendation I submit the following in relation to the coffee trade. The crop amounts to about 100,000,000 pounds, and is thought by many to be the finest in the world. Three years ago much of it was finding a profitable market in the United States, but now the duty of 3 cents is simply prohibitive, and all the crop is sent to Europe and all the goods imported from European countries are brought back in return. This year the crop is late and it will not all be gathered before June, hence immediate action in the line indicated would divert all not already shipped to the United States. Here at Port au Prince, which is not the center of the industry, the trade is a most important one, requiring many millions of dollars to move it, employing many people for whom there is at this season no other means of support, and affording immense tonnage to vessels.

Other articles upon which our duties are prohibitive are hides, wax, and honey, and I have just learned from Mr. Richard Allen, the largest dealer in these articles on the island, that he has had to break off his large trade with our ports, and that in sending his goods elsewhere he gets in return goods from Europe which ordinarily would come from

our country. He has a list of twenty other articles which he believes under favorable conditions could be profitably shipped to our ports.

It is pertinent to say that the Haitian Government depends entirely for the means of its budget on duties on imports and exports, and I learn that, notwithstanding the duties collected nearly all the food products, especially flour, lard, bacon, and salt fish are imported from the United States. Many of the light cotton fabrics of the country are also of American manufacture.

Under former conditions many mills for the preparation of coffee and other products were started up. One by Mr. Wakeman, an American, began three years ago under favorable auspices, because he had an American market for fine grades, but having lost this he contemplates giving up his business, in which he has invested many thousands of dollars.

In the sincere hope that the Secretary will submit this to the President as an earnest argument for immediate action,

I have, etc.,

HENRY M. SMYTHE.

No. 16.]

Mr. Uhl to Mr. Smythe.

DEPARTMENT OF STATE,

Washington, December 30, 1893.

SIR: I have received your dispatch No. 10, diplomatic series, of the 29th of November last, presenting certain considerations which suggest themselves to you touching the advisability of withdrawing the exist ing proclamation imposing certain discriminating duties on Haitian sugars, molasses, coffee, and hides under the third section of the customs act of October 1, 1890.

The subject has been under consideration in view of the claim of Colombia that, under its treaty with the United States, that country is entitled to receive the treatment of the most favored nation, without equivalent, inasmuch as the favor of free entry of such productions continues gratuitously to the benefit of Mexico, Argentina, and some other countries in the absence of the specifically invited agreements for commercial reciprocity.

Besides Haiti and Colombia, Venezuela comes under a similar discriminating proclamation, but the latter country, having abrogated by due notice its commercial treaty with the United States, has no conventional stipulation of favored nation treatment to which to appeal.

The question of amendatory legislation touching the customs tariff act is under urgent consideration by the Congress, with a prospect of speedy action involving extensive changes in the existing law, and under the circumstances the President has not hitherto thought it well to take executive action calculated to forestall the expected enactments.

Wax, honey, and the other important articles of Haitian export to this country, alluded to in your dispatch, do not fall within the purview of section 3 of the customs act of 1890, and the Executive has no power to exceptionally favor the trade in articles embraced in the fixed tariff.

A copy of your dispatch will be sent to the appropriate committees. of Congress, for their information. EDWIN F. UHL,

I am, etc.,

Acting Secretary.

No. 23.]

ALLEGED VIOLATIONS OF NEUTRALITY.

Mr. Smythe to Mr. Gresham.

LEGATION OF THE UNITED STATES,
Port au Prince, Haiti, January 10, 1894.
(Received January 24.)

SIR: In the same interview with the Secretary of State alluded to in my preceding dispatch' my attention was called to the fact that an American schooner (the Water Witch, of Boston, owned by Messrs. Green Kenable & Co.) had on board 2 cannon and 60 pounds of powder, and these not on the vessel's manifest.

Of course in a country where revolutions are of somewhat frequent occurrence the Government looks anxiously into the importation of munitions of war, and I promised the Secretary to immediately ask my Government for instructions in this behalf. Are sailing vessels allowed to carry an armament, either limited or unlimited? Are they permitted to carry them as ship's stores? This vessel evidently had no use for the guns, and if for sale they were not scheduled. Be kind enough to give me an early reply to this and my preceding dispatch, and I trust that I may be able to render to the Government a satisfactory reply. Accept, etc.,

HENRY M. SMYTHE.

Mr. Gresham to Mr. Smythe.

No. 21.]

DEPARTMENT OF STATE,

Washington, January 31, 1894. SIR: A copy of your No. 23, of the 10th instant, in regard to the case of the American schooner Water Witch, which arrived in Haytian waters with 2 cannon and 60 pounds of powder on board, having been transmitted to the Secretary of the Treasury, that official has replied to your inquiry whether sailing vessels of the United States are allowed to carry an armament as ship's stores, or otherwise, that the laws do not forbid the carrying of articles of the character mentioned, provided there shall be no violation of Chapter LXVII of the Revised Statutes. I am, etc.,

W. Q. GRESHAM.

Mr. Haentjens to Mr. Gresham.

[Translation.]

LEGATION OF HAITI,

24 State Street, New York, February 27, 1894.

(Received February 28.)

Mr. SECRETARY OF STATE: I have the honor to state in this dispatch the following facts, which, in conformity with instructions received by cable from my Government, I set forth in my interview yesterday with the honorable Assistant Secretary of State in your absence.

In the beginning of the month of January last a steam yacht called Natalie left the coast of Long Island (New York State) and proceeded 'Not printed.

FR 94-22

to the port of Savannah, Ga. Arrived at that port, the Natalie, under cover of night, there shipped thirty-two cases containing cartridges, guns, bullets, gun carriages, etc., and furtively sailed away without procuring any manifest or paper from the custom-house.

From Savannah the yacht proceeded to Nassau, where she was until the 9th of February, sheltering under the American flag her contraband of war, and the last telegraphic advices inform me of her presence on the 23d of February at Fortune Island, one of the Bahama Islands. This expedition, for a long time in preparation by the Haitian refugees at Kingston, and by their accomplices in New York, is conducted by one Antoine Salini, a Corsican naturalized American. His design is to reach Jamaica, there take on board the revolutionary Haitians who have taken refuge on that island, and to effect their landing on the coast of Haiti.

In view of this act of an American vessel secretly sailing from a port of the United States without papers from the custom-house, carrying away arms and munitions of war; in view of the unlawful use made by Salini and his accomplices of the American flag to conceal his contraband of war and facilitate an expedition the purpose of which is to rekindle civil war in a country which entertains friendly relations with the Republic of the United States, the Haitian Government, fully confiding in the justice of the American Government, in denouncing to it these facts requests that it will take such measures as it may deem efficacious toward arresting an attempted violation of international law. Accept, etc.,

C. HAENTJENS.

P. S.-Herewith I have the honor to forward to you copy of a letter received from Savannah and containing information concerning the cargo shipped by the Natalie. I have not procured affidavits in support of this information in the belief that if obtained directly by your orders, should you think it well to do so, they would be all the more convincing.

C. H.

[Inclosure Copy of a letter.]

Mr. Farie to Mr. Meehan.

SAVANNAH, GA., January 26, 1894.

DEAR SIR: I have to acknowledge your favor of 24th instant, inclosing cuttings from the New York Herald and World, re yacht Natalie, and beg to confirm my telegram of date saying:

Natalie Herald cutting; in the main true; Capt. Antonio Salini in command; 26 cases cartridges, 5 cases guns, 6 cases gun carriages, shipped Bannerman, Front street, New York, taken on board yacht. Destination or present location unknown. The yacht arrived here December 31. The master called himself Nelson to some people, but I find from inquiries which I made that he had given his name as Antonio Salini to others. No entry was made at the custom-house either of the arrival or departure of yacht.

After arrival here, and while waiting, the yacht was coaled up, taking on board about 13 tons of coal. Some of the coal was in sacks and was piled on deck. She was also well provisioned. Before taking coal on board, however, the master called in John Rourke, of the firm of John Rourke & Son, to examine the machinery. Some changes were recom

mended, and made, to increase speed of vessel. From all I could gather the changes made increased her speed from about 10 knots an hour to 14 knots.

It was given out here that the yacht belonged to private parties, and was awaiting their arrival here to start with them on a hunting and fishing expedition. The parties were coming from the north.

As regards the shipment of ammunition, I would state that I saw the bills of lading for same. They were shipped by the Ocean Steamship Company's steamer City of Augusta, appointed to sail January 10, 1894, viz.

First bill of lading.

Goods shipped by Francis Bannerman, 27 Front street, New York City, consigned to Earnest Morrett, Savannah (or Herritt). Box Nos. 4-12, 14-15, 24-34; 21 boxes containing cartridges.

Second bill of lading.

Five cases guns, 3 cases gun carriage and chests, 1 case gun box carriage and chests, 1 case gun chest, 1 case gun carriage.

Third bill of lading.

40-41, 42-44; 5 boxes cartridges.

The consignee here is unknown and probably was an imaginary person. The freight on the packages was paid here and the goods were hauled away after dark on the 20th and shipped on board the yacht from the river side at foot of West Broad street.

The yacht sailed Sunday night. Destination unknown; present location unknown, although the general impression here is that she went direct to the Bahamas.

The master sailed without settling all John Rourke & Son's bill. There is a balance of $100 or so unpaid, and I understand telegrams were sent to Fernandina and to Pensacola to attach vessel if she put in at these ports.

I return you herewith newspaper cuttings and inclose my bill for services in the matter.

Yours, etc.,

A. L. FARIE,

Correspondent Marine Underwriters.

Mr. Uhl to Mr. Haentjens.

DEPARTMENT OF STATE,
Washington, March 5, 1894.

SIR: I have the honor to acknowledge the.receipt of your note of the 27th ultimo, in regard to an alleged violation of the neutrality laws of the. United States by the American steam yacht Natalie, which is reported to have clandestinely shipped munitions of war at Savannah, Ga., and to have sailed from that port without manifest or other papers, her final destination being the coast of Haiti, where it is proposed to land these munitions and Haitian insurgents who had taken refuge in Jamaica. You inclose a letter from Mr. A. L. Farie, of Savannah, reciting particulars, and you ask that the necessary measures be taken to check the attempted violation of international law.

A copy of your note and of its inclosure has this day been communicated to the Secretary of the Treasury and the Attorney-General.

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