No. 223.] TERMINATION OF RECIPROCITY ARRANGEMENT. Mr. Taylor to Mr. Gresham. LEGATION OF THE UNITED STATES, Madrid, August 20, 1894. (Received August 30.) SIR: I have the honor to report that on Saturday, the 18th instant, I received an invitation from the minister of state, requesting a conference for that evening at half past 6 o'clock. I met the minister at the time indicated, and, after the usual preliminaries, he gave me to understand that he desired to discuss the contents of the pending tariff bill, so far as the same will affect the commercial arrangement now existing between Spain and the United States. From his conversa tion it clearly appeared that he was informed in a general way as to the contents of the pending bill, and he expressed the belief that its prac tical effect will be to wipe out the provisions of law upon which the reciprocity arrangement is based, and thus bring that arrangement abruptly to an end, provided no saving clauses are contained in the bill which will produce that result in a more gradual way. Not having seen the text of the bill in its final form, and having no exact information as to its contents except the very imperfect statements contained in the European press, I made it a point to indulge in no positive statements either as to the contents of the bill or as to its effects. The interview concluded with a request from the minister that I should submit to you as soon as possible the following questions: (1) When will the pending bill take effect? (2) Will the provisions of law, by virtue of which the present com mercial arrangement was executed upon the part of the United States, come at once to an end without notice or warning to Spain? (3) What will then be the condition of the commercial relations between the two countries, so far as Cuba and Puerto Rico are concerned. and what action had best be taken by both countries with a view of preserving harmony in those relations? The minister expressed himself in a most conservative and amicable spirit, saying that Spain had every desire to cooperate with the United States in an effort to make the commercial relations between the two countries harmonious, stating at the same time that Spain had no desire to impose additional burdens upon the commerce of the United States with Cuba and Puerto Rico if such a course could be avoided, and my cooperation was asked to that end. The minister requested me to ask that you would send him at least general answers to his questions by cable as soon as my letter is received, as it is very necessary for him to know what will be the general effect of the bill upon Spanish interests. I am, etc., HANNIS TAYLOR. No. 226.] Mr. Taylor to Mr. Gresham. LEGATION OF THE UNITED STATES, Madrid, August 23, 1894. (Received September 5.) SIR: I have the honor to inclose, with translation, an extract from El Liberal of the 22d instant, indicating the course to be taken by the custom-house authorities of Cuba and Porto Rico as to imposition of tariff dues upon merchandise from the United States the moment that the new tariff bill takes effect. I am, etc., HANNIS TAYLOR. [Inclosure in No. 226.-Translation.-From El Liberal of August 22, 1894.] As regards the new bill voted by the chambers of the United States reimposing the duties on sugar, Señor Becerra, in accord with Señor Moret, telegraphed yesterday to Gen. Calleja ordering him to communicate with the representative of Spain at Washington and with the captain-general of Porto Rico, so that on the same day and at the same hour in which the bill of the United States is put in force the old tariffs for North American products may be reestablished in both Antilles. Mr. Gresham to Mr. Taylor. [Telegram.] DEPARTMENT OF STATE, Secretary of the Treasury holds, no doubt correctly, that our new tariff law went into effect on the 27th instant at midnight, and that the commercial arrangement under act of 1890 then terminated. GRESHAM. No. 228.] Mr. Taylor to Mr. Gresham. LEGATION OF THE UNITED STATES, Madrid, August 30, 1894. (Received September 10.) SIR: I have the honor to inclose herein, with translation, a copy of a note just received from the minister of state, announcing the fact that His Majesty's Government has decided to annul the decree of June 28, 1891, putting into execution the reciprocity arrangement in the islands of Cuba and Porto Rico. I am, etc., HANNIS TAYLOR. [Inclosure in No. 228.-Translation.] Mr. Moret to Mr. Taylor. MINISTRY OF STATE, Palace, August 28, 1894. EXCELLENCY: The Government at Washington having yesterday put into force the new tariff regulations, according to the official advices received from the Spanish minister, the reciprocity agreement which has governed the commercial relations between the two countries comes to an end. In view of these facts the Government of His Majesty the King has decided in its turn to annul the decree of June 28, 1891, which was published to put into execution the reciprocity arrangement in the islands of Cuba and Porto Rico. In making this communication to your excellency I again call your attention to the unfairness and prejudice which would come of apply. ing the new tariff to the products of the Philippine Islands, which, having been shipped previous to this date, would find themselves in a peculiarly disadvantageous position on their arrival in the United States if they were expected to pay the imposts of the new tariff. I avail, etc., S. MORET. No. 188.] Mr. Uhl to Mr. Taylor. DEPARTMENT OF STATE, SIR: I have to acknowledge receipt of your No. 228, of the 30th ultimo, with which was inclosed a copy of a note from the minister of state announcing that His Majesty's Government has decided to annul the decree of June 28, 1891, putting into execution the reciprocity arrangement in the islands of Cuba and Porto Rico. In this connection I inclose herewith copy of a telegram received from the United States consul-general at Havana, copy of a letter from the Treasury Department, and copy of a telegram to the consul-general at Havana, all relating to the date when the reciprocity arrangement ceased to be in force. I am, etc., EDWIN F. UHL, Acting Secretary. [Inclosure 1 in No. 188.-Telegram.] Mr. Williams to Mr. Gresham. HAVANA, August 30, 1894. The importers here of American merchandise desire to know if the products shipped from Cuba to the United States up to the closing of the 27th instant are included in the franchises of the reciprocity agree ment, as they claim from the Spanish Government that American products shipped there up to that date ought to be allowed to fully enjoy the franchises of that agreement. Please cable answer. WILLIAMS, Consul-General. [Inclosure 2 in No. 188.] Mr. Carlisle to Mr. Gresham. TREASURY DEPARTMENT, Washington, August 30, 1894. (Received August 30.) SIR: Replying to your note of this date, in relation to a telegram received from Havana merchants, asking as to the date upon which they will cease to enjoy the franchises of the reciprocity agree nent, I have to state that the date of shipment is of no legal account in such transactions, the liability to duty being determined entirely by the date of arrival at a port of entry in the United States. I can give no information relative to the probable action of the Spanish Government in regard to the question of merchandise imported under the reciprocity agreement. Very respectfully, J. G. CARLISLE, [Inclosure 3 in No. 188.-Telegram.] Mr. Gresham to Mr. Williams. DEPARTMENT OF STATE, Washington, August 30, 1894. Secretary of the Treasury informs me that all goods arriving at ports of entry of the United States after midnight of August 27th instant will be subject to the duties prescribed by our new tariff law irrespective of the time of shipment. COMMERCIAL RELATIONS. [Memorandum.] LEGATION OF SPAIN, Washington, April 27, 1894. (Received August 22.) Under stress of special circumstances the Spanish Government might be compelled to raise, in a general way, the duties on imports in Cuba and Puerto Rico. Although it is apparently in the mind of both branches of Congress to abrogate the reciprocity clause of the McKinley bill, the Spanish Government does not desire to revoke the mutually existing agreement without ascertaining previously the views of the Government of the United States on the subject. Can any alterations be brought to the various schedules of the convention of July 28, 1891, whether free or under scale reductions without changing essentially its actual commercial conditions between Spain and the United States, provided no other or higher duties were imposed on American imports than those attached to national products? If the existing prosperous condition of trade could be maintained without serious prejudice to the revenues of both countries, the Spanish Government would gladly concur in any agreement, temporary or permanent, which might further develop the commercial binding interests of Spain and the United States. Mr. Muruaga to Mr. Gresham. LEGATION OF SPAIN, The undersigned, envoy extraordinary and minister plenipotentiary of Spain, has the honor to inform the honorable Secretary of State, in addition to the verbal statements which he has already made to him, that, as His Majesty's Government will probably soon be under the necessity of imposing customs duties upon articles of Spanish production in general, which are now free, and of increasing those already established on foreign goods, it desires to know the opinion and to receive a statement of the views of the United States Government on the following points: 1. Whether, if His Majesty's Government shall levy import duties in Cuba and Puerto Rico on goods of Spanish production, duties will, in like manner, be levied by the United States Government upon those productions which are now free in pursuance of the reciprocity treaty applicable to those islands which is now in force? 2. Whether, in case of an increase on all items of the tariffs now in force, the same increase will be made in the case of articles which, under the aforesaid tariff, pay a reduced duty! The undersigned minister begs the honorable Secretary of State to inform him, with as little delay as possible, concerning the views and intentions of his Government on the foregoing points, and he gladly avails himself, etc. E. DE MURUaga. Mr. Uhl to Mr. Muruaga. DEPARTMENT OF STATE, SIR: I have the honor to acknowledge receipt of your note of 14th instant, making inquiries touching changes in the duties at present operative under the reciprocity arrangement. A copy of your note has been laid before the Secretary of the Treasury for his consideration and an expression of his views upon the subject-matter thereof. Accept, etc., Mr. Uhl to Mr. Muruaga. EDWIN F. UHL, SIR: Your note of the 14th ultimo, in contemplation of the contingency, as therein stated by you, that "His Majesty's Government will probably soon be under the necessity of imposing customs duties upon articles of Spanish production in general, which are now free, and of increasing those already established on foreign goods," propounded, for an expression of the views of this Government hereon, the two following inquiries: "1. Whether, if the Spanish Government shall levy import duties in Cuba and Puerto Rico, on articles of Spanish production carried to those islands from Spain, the United States will impose a similar duty on those same articles, on importation into the United States, under the stipulation of the existing reciprocity arrangement which permits the Cortes or Congress to modify or repeal said arrangement whenever they may think proper," and "2. Whether, in case of an increase on all items of the tariff now in force, the same increase will (may?) be made in the case of articles which, under the aforesaid tariffs, pay a reduced duty." These questions are understood to call for information as to whether, and to what extent, the freedom now enjoyed by importers into the United States of certain products of Spain and her colonies, from the imposition of duties under the power conferred upon the President by section 3 of the act of October 1, 1890, would be affected by the proposed changes in the Spanish tariff. The matter having been submitted to the consideration of the Secretary of the Treasury, as you were informed in this Department's note of May 19, I have the honor to acquaint you with the purport of his |