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foreign countries for the reciprocal abolition of differential duties, without the previous conclusion of a Treaty, a measure which, according to the then existing legislation of this country, was a necessary preliminary to any such arrangement.

That Bill having now passed both Houses of Parliament, and received the Royal assent, I transmit to you 3 printed copies thereof. You will communicate the same to the Marquis de Miraflores, and you will state that it is the intention of Her Majesty's Government to avail themselves of the powers granted by this Act by issuing, at the earliest opportunity, an Order in Council placing Spanish vessels in the ports of the United Kingdom on the same footing in regard to port and local dues as British vessels.

L. C. Otway, Esq.

I am, &c.

MALMESBURY.

(Inclosure.) — An Act to enable Her Majesty to Abolish otherwise than by Treaty, on Condition of Reciprocity, Differential Duties on Foreign Ships. [See Vol. XLI. Page 682.]

No. 145.-Mr. Otway to the Earl of Malmesbury.-(Rec. July 26.)
MY LORD,
Madrid, July 20, 1852.

BEING fully aware of the great advantages which will accrue to British shipping interests from the carrying out of the contemplated arrangements for the reciprocal abolition of differential duties between England and Spain, I did not lose a moment in addressing to the Marquis of Miraflores a communication in conformity with the instructions contained in your Lordship's despatch of the 13th instant.

I have now the honour to forward to your Lordship a translation of the note which his Excellency has addressed to me in answer.

Your Lordship will observe that the Marquis de Miraflores suggests the propriety of some day being fixed upon for the contemplated changes being brought into play in both countries simultaneously, and that his Excellency requests me to make known to your Lordship the desire thus expressed on the part of Her Catholic Majesty's Government. I have, &c. L. C. OTWAY.

The Earl of Malmesbury.

P.S.-I transmit to your Lordship a copy of my note to the Marquis de Miraflores.

(Inclosure 1.)-Mr. Otway to the Marquis of Miraflores. Madrid, July 16, 1852.

SIR, LORD HOWDEN acquainted Her Catholic Majesty's Government [1862-63. LIII.] 3 U

some time since that the Government of Her Britannic Majesty had introduced a Bill into Parliament to enable the Crown to carry out arrangements with foreign countries for the reciprocal abolition of differential duties, without the previous conclusion of a Treaty, a measure which, according to the then existing legislation of Great Britain, was a necessary preliminary to any such arrangement.

That Bill having now passed both Houses of Parliament, and received the Royal assent, I have received instructions from Her Majesty's Principal Secretary of State for Foreign Affairs to transmit to your Excellency two printed copies thereof, and I am to state that it is the intention of Government to avail themselves of the powers granted by the Act, by issuing, at the earliest opportunity, an Order in Council placing Spanish vessels in the ports of the United Kingdom on the same footing, in regard to port and local dues, as British vessels. I avail, &c.

The Marquis of Miraflores.

SIR,

L. C. OTWAY.

(Inclosure 2.)-The Marquis of Miraflores to Mr. Otway.

(Translation.)

San Ildefonso, July 17, 1852. I HAVE the honour to acknowledge the receipt of your note dated yesterday, in which you inform me that the Bill which had been introduced into Parliament by Her Britannic Majesty's Government to enable the Crown to carry out arrangements with foreign countries for the reciprocal abolition of differential duties having now passed both Houses of Parliament, and received the Royal assent, you have been instructed by your Government to state to the Government of Her Catholic Majesty, that the former intend to avail themselves of the powers granted by the Act, by issuing at the earliest opportunity an Order in Council placing Spanish vessels in the ports of the United Kingdom on the same footing in regard to port and local dues, as British vessels, "to commence from the date which may be fixed by mutual agreement between the two Governments."

Her Majesty's Government being desirous, on their part, to cooperate towards the most speedy arrangement of this affair, and for the purpose of preventing any future difficulty or complaint whatsoever, consider it very expedient that a day should be fixed for the equalization in question to be carried into effect, and to commence to be in force in both countries at the same time.

I request you will have the goodness to communicate this suggestion to your Government, entreating them, at the same time, in the name of Her Catholic Majesty's Government, to fix the day on which the equalization in question may come into operation, in order that the necessary orders may consequently be issued through

the Finance Department, for the proper reciprocity to be carried into effect in the ports of Spain and of her adjacent islands.

I avail, &c.

L. C. Otway, Esq.

MARQUIS DE MIRAFLORES.

SIR,

No. 146.-The Earl of Malmesbury to Mr. Otway.

Foreign Office, August 24, 1852. I TRANSMIT to you 6 printed copies of an Order in Council which was issued by Her Majesty on the 18th instant,* and which grants to the trade and shipping of Spain the benefits of the Act of last session, enabling Her Majesty to abolish, otherwise than by Treaty, on condition of reciprocity, differential duties on foreign ships, of which Act a copy was inclosed in my despatch of the 9th ultimo. You will lose no time in communicating the Order in Council officially to the Spanish Government, and as it comes into operation immediately upon its publication, you will urge the Spanish Government to give directions, with the least possible delay, that British vessels in the ports of Spain may, from and after the present date, enjoy the benefits of the Spanish Decree of the 3rd of January last,† which concedes to the vessels of foreign nations, on condition of reciprocity, equality of treatment with national vessels in regard to navigation and port dues in the Peninsula and the adjacent islands.

Although Her Majesty's Government are glad that the question of differential duties will thus have been so far satisfactorily arranged, they feel it their duty to instruct you to take this opportunity of calling the serious attention of the Spanish Government to the very disadvantageous position in which British vessels will still be placed in the ports of Spain as compared with Spanish vessels, even when the benefits of the Spanish Decree of the 3rd of January last shall have been secured to them; for although British vessels will then be admitted into the ports of the Peninsula and the adjacent islands on the same footing as national vessels in regard to navigation and port dues, the goods imported in British vessels will remain subject to the heavy differential dues levied under the Spanish tariff on goods imported in vessels sailing under any other than the national flag.

In this country, on the other hand, no such distinction is made, and goods imported in Spanish vessels pay no higher or other duties than if imported in British vessels.

The case is still stronger when viewed with reference to the colonies of the two countries. The Decree of the 3rd of January last does not apply to the Spanish colonies, in which differential duties are levied both on British vessels and on the goods which * Vol. XLI. Page 669. + Page 1020.

they convey. Those differential duties will still be levied in the Spanish colonies to the prejudice of British trade and shipping, notwithstanding that, by the combined operation of the Navigation Act and of the Order in Council of the 18th instant, Spanish vessels and the goods conveyed by them will be placed upon a footing of perfect equality with British vessels and goods conveyed by them, as well in the British colonies as in the ports of the mothercountry.

As it might possibly be concluded by the Spanish Government that, if the points above adverted to were passed over in silence by Her Majesty's Government upon the present occasion, they are disposed to waive what they conceive to be the just claims of Great Britain to receive at the hands of the Government of Spain both in the ports of Spain and of her possessions, that equality of treatment in respect of charges levied on vessels and goods which will now be extended to Spain, as well in the British colonies as in the ports of Great Britain, I have to instruct you to state to the Spanish Government, in communicating to them the Order in Council, that the step taken by Her Majesty's Government to secure to British shipping the limited advantage conceded, on condition of reciprocity, by the Spanish Decree of the 3rd of January last, cannot be considered as waiving their right to complain of the unequal treatment to which British vessels will still be subjected in the ports of Spain and her possessions, or as in any way prejudicing the course which Her Majesty's Government may think fit to adopt, in pursuance of the powers given by the Navigation Act of 1849, for ensuring a reciprocal equality of treatment in matters of trade and navigation.

Her Majesty's Government would feel the greatest reluctance in availing themselves of these powers, but they must now assure the Spanish Government that a sense of public duty will oblige them to adopt measures of retaliation should Spain continue her unfair system of restriction towards this country. L. C. Otway, Esq.

I am, &c. MALMESBURY.

(Inclosure.)-Order in Council.-Osborne, August 18, 1852.
[See Vol. XLI. Page 669.]

No. 147.-Mr. Otway to the Earl of Malmesbury.—(Rec. Sept. 20.)
MY LORD,
Madrid, September 14, 1852.

WITH reference to the instructions contained in your Lordship's despatch of the 24th ultimo, I have the honour to transmit to your Lordship herewith, copy and translation of a Royal Order which has been published in the "Madrid Gazette" of this day, granting to British vessels in the ports of the Peninsula and adjacent islands, from the 2nd of this month, the day on which I communicated

officially to the Spanish Government the Order in Council of the 18th of August last, the same equality of treatment with national vessels in regard to port and navigation dues.

I have communicated this Royal Order in a circular despatch to Her Majesty's Consuls in this country.

The Earl of Malmesbury.

I have, &c.

L. C. OTWAY.

(Inclosure.)-- Royal Order respecting Port and Navigation Dues to be paid by British Shipping.

(Translation

ย.

San Ildefonso, September 7, 1852. HER Majesty the Queen (whom God preserve) has been pleased to order that English vessels be considered in the ports of the Peninsula and the adjacent islands the same as the national vessels in regard to the payment of port and navigation dues, from the 2nd instant, when the official notice was received by which the Spanish flag was put upon an equality with the English for the payment of those dues in the ports of Great Britain.

I communicate this to you by Royal command for your information, and for the purposes intended.

God preserve you, &c.

BRAVO MURILLO.

No. 148.-Mr. Otway to the Earl of Malmesbury.—(Rec. Oct. 15.)
MY LORD,
Madrid, October 9, 1852.

OBSERVING that in Señor Bertran de Lis's note to me of the 13th ultimo, copy of which was forwarded to your Lordship in my despatch of the 14th ultimo, no notice was taken of the remarks which, agreeably to the instructions contained in your Lordship's despatch of the 24th August, I addressed to his Excellency on the subject of the differential duties levied on British vessels and the goods which they convey, I thought it right to call his Excellency's attention to this omission, which I did in the note a copy of which is inclosed.

I have the honour also to transmit a copy of Señor Bertran de Lis's reply to my communication. I have, &c.

The Earl of Malmesbury.

SIR,

L. C. OTWAY.

(Inclosure 1.)—Mr. Otway to Señor Bertran de Lis. Madrid, September 15, 1852. I HAVE the honour to acknowledge the receipt of your Excellency's note of the 13th instant, forwarding a copy of the Royal Order of the 7th instant, by which British vessels are placed on the same footing as national ones as regards port and navigation dues in Spain and the adjacent islands.

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