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on sugar, ard to CSI CT telegram of the ca. to which reira ond telegrin is an advareres. Fratte Department's teie grams of Varch 4 ani 15, i tid den ciers or this legation (and the Cuban keretary of tater that Ferien ied to insiz upon the maintenance of or prezental us beretofore, wrich meant that Cuba must repeal the law risei in Ferruirt recerg the duty. This would hare earsed great er artisment to the Cuban Gorernment.

This morning I called on Secretart Sargir ari gare him the memorandum of which 3 cost is indeed berria. The artarr was much pleased at being relieved from what hai appeared to him to be a most embarrassing situation, and asked me to espress his grateful appreciation to you for your poctior, which is now thor. oughly understood. He said that Cata woud always maintain preferential treatment of American proidets in accordance with our reciprocity treaty. He thought that there was slight ehance of Cuba's signing the Brussels Convention, as it was claimed that the treatv itself created what was practically a premium on Cuban sugar. Cuba has now done all that she could to conform to the wishes of the signatory powers and must accept their decision. Senor Sanguilr said that personalis he did not see that it would be advantageous to Cuba to adhere to the convention, but that interested parties had wished for some action which might possibly free (uba from the domination of the “ Sugar Trust," the present situation being that the 20 per cent preferential accorded by treaty to Cuban sugir imported into the United States benefits the trust to a greater extent than it does the producer.

The suggestion that Cuba put sugar on the free list was made by Señor Sanguilv some time ago. No reference was made to it in our conversation this morning, and I shall not bring it up myself in any future conversation. I hare, etc.,

Joux B. JACKSON.

[laclosure.) File No. 611.3731 27.

The American Minister to the Cuban Secretary of State

[Vemorandum.)

HARASA, April 19, 1911. The American Government sees no objection to Cuba's signing the Brussels (sugar) Convention, provided that she does not entend to any other power the preferential rates accorded by treaty to American sugar, even if other powers should claim them under article 5 of the convention. The American Executive can not waive this preferential treatment, as such a waiver would amount to a partial abrogation of the reciprocity treaty, which could not he made without the consent of the Senate. The American Government does not, however, objet to the reduction in the Cuhan duty on sugar and the conseruent reduction in the preferential) which was made in February, and does not make any demand for the reestablishment of the former status.

• NOTE.—The remaining correspondence, as it refers more directly to the reciprocity treaty as a whole than to the item of sugar, will be found under Reciprocity Treaty, except a few references to sugar in the article on Tobacco.

TOBACCO.1 On January 6, 1911, in his dispatch No. 550, the American minister at Habana transmitted to the Secretary of State a note ? from Señor Sanguily, the Cuban secretary of state, dated January 2, 1911, wherein the Government of the United States is requested to express its opinion as to whether, if Cuba were to reduce the tariff on crude and refined sugars sufficiently to enable that Government to adhere to the Brussels Sugar Convention, such act would violate the reciprocity treaty between Cuba and the United States.

This request was repeated on February 14 and reported in dispatch No. 626,1 which also reported that there was before the Cuban Congress a bill which, among other things, had to do with this question; and on February 17, in his dispatch No. 637,3 the minister set forth the provisions of the bill, showing that it contemplated :

(1) Requesting of the United States an amplification of the reciprocity treaty in order to obtain for tobacco greater advantages in return for concessions in regard to other American merchandise;

(2) A treaty protecting trade-marks and patents;

(3) A surcharge of 50 per cent of existing tariff rates on products or merchandise of any nation with which Cuba shall not have concluded a reciprocity treaty, or which shall not within six months make tariff concessions to Cuban manufactured tobacco;

(4) Provision for the protection of seals by which the identity of Cuban tobacco could be clearly proved.

No response being received from Washington, the Cuban Congress on February 22 enacted a bill reducing the tariff on sugar, as reported in dispatch No. 646.

On March 21 the Secretary of State replied to the request of the Cuban secretary of state, of January 2, and also to those set forth in the above-mentioned bill in dispatch 637. This response is contained in dispatch 270, where the Secretary said in answer to (1) that " whether it would be possible to concede greater advantages for Cuban tobacco can not be indicated in advance, nor, in fact, can it be assumed that this Government will find it expedient to recommend modifications of the treaty.”

To the second item no objection was made.
To the third the Secretary replied as follows:

The proposition to apply a surcharge on the products of merchandise of any nation which has not already concluded a reciprocity treaty with Cuba, or which does not, within six months after the promulgation of this law, make tariff concessions to Cuban manufacturers of tobacco, is one that should receive the most careful consideration on the part of the Cuban Government. The complications which would result from Cuba's entering into a reciprocity treaty with other countries in view of the existing treaty with the United States, and the extreme difficulty of adjusting the Cuban tariff with those of other countries so as not to interfere with the preferences given the United States, have been fully explained in previous instructions.

“ The Department,” he continued, in a telegram of April 8,2 “has no power to waive the American tariff preference on sugar or any other article included in the treaty with Cuba, since such waiver would be a partial abrogation of that treatr, which would require the concurrence of the legislatire branch of the Gorernment"; and on the 12th he instructed the minister that there was no objection to the reduction in Cuban duties on sugar, prorided proportional preferential reduction was maintained in favor of the United States

1 As many of the dispatches from the legation concerning tobacco refer also to the reciprocity treaty and to sugar, their insertion here would repeat much irrelevant matter and they are accordingly referred to in footnotes.

* See article on " Sugar," pp. 101, 102, 105. • See article on "Reciprocity treaty," p. 94.

On April 14 the minister reported in his dispatch 7+8: the reintroduction of the bill regarding amplification of the reciprocity treaty in order to faror Cuban manufactured tobacco. The correspondence then continues as follows: File No. 611.3731 28

The Secretary of State to the American Minister. No. 305.)

WASHINGTON, May 8, 1911. SIR: The Department has received your No. 748 of the 14th ultimo (etc.).

In reply you are referred to the third paragraph of the Department's instruction to you, So. 270, of March 21 last.: I am, etc.,

P. C. Knox. File No. 611.3731 '35. The American Vinister to the Secretary of State.

AMERICAN LEGATION, No. 917.]

Habana, June 9, 1911. SIR: Referring to my dispatch No. 637, of February 17, 1911,I have the honor to report that the committee on agriculture, industry, and commerce of the Cuban Chamber of Representatives has now made a report (dated June 6) upon the bill which was introduced during the last session of the former Congress in regard to (1) the revision of the reciprocity treaty with the United States, (2) the conclusion of a treaty for the protection of trade-marks and patents, (3) the application of a tariff surcharge of 50 per cent in certain cases, and (4) the introduction of especial seals to identify Cuban tobacco, etc., upon importation. This bill is distinct from that in regard to a 30 per cent tariff surcharge, which has been the subject of more or less frequent correspondence.

The committee mentioned above has reported in favor of authorizing the executive (1) to request the United States Government to amplify the existing reciprocity treaty, with a view to obtain greater advantages for Cuban tobacco in exchange for concessions in regard to American merchandise which is not especially benefited at present, (2) to invite the United States to conclude a treaty for the reciprocal protection of trade-marks and patents, and (3) to apply a surcharge upon existing tariff rates of 30 per cent on the products or merchandise of any country which has at present no reciprocity treaty with Cuba, or which does not make tariff concessions in favor of Cuban tobacco within six months after the promulgation of this law. The committee has further advocated the proposal to introduce especial stamps (and seals) to show the identity of Cuban tobacco for the purpose of preventing the falsification of Cuban trade-marks in foreign countries and the fraudulent sale of foreign tobacco as being of Cuban production. These stamps are to be printed in Cuba (the contract to be given through public bids) and their issue and application are to be under Government control and are to be sold to manufacturers—one half of the proceeds of the sale being to pay for printing, etc., and the other for the maintenance of the central office of the “Unión de Fabricantes de la Isla de Cuba." .

i See article on " Sugar."

See article on " Reciprocity treaty," p. 94.

A further provision of the bill requires all manufacturers (“todo manufacturero") to employ native Cuban labor to the extent of at least 50 per cent.

In view of the heat at this season of the year and the difficulty encountered in maintaining a quorum, I do not think it probable that Congress will act upon this measure during its present session. A motion to close the session on the 20th instant is under consideration at present. · I have, etc.,

John B. JACKSON. File No. 611.3731/36.

The American Minister to the Secretary of State. No. 986.]

AMERICAN LEGATION,

Habana, July 8, 1911. Sir: Referring to my dispatch No. 917, of the 9th ultimo, and to previous correspondence in regard to the revision of the reciprocity treaty between the United States and Cuba, and the imposition of a tariff surcharge in certain cases, I have the honor to report that the bill in question duly passed the Cuban Chamber of Representatives after the surcharge provision had been stricken out. No action was taken on the bill by the senate, however, and consequently it goes over until congress meets again in November. I have, etc.,

John B. JACKSON.

U. S. NAVAL STATION AT GUANTANAMO.1 File No. 811.34537. Agreement between the United States and Cuba for lease of coaling or naval stations, February 16/23, 1903,

[Extract.] The United States of America and the Republic of Cuba, being desirous to execute fully the provisions of Article VII of the act of Congress approved March 2, 1901, and of Article VII of the appendix to the constitution of the Republic of Cuba promulgated on the 20th of May, 1902, which provide:

ARTICLE VII. To enable the United States to maintain the independence of Cuba and to protect the people thereof, as well as for its own defense, the Cuban Government will sell or lease to the United States the lands necessary for coaling or naval stations at certain specified points to be agreed upon with the President of the United Stateshave reached an agreement to that end as follows:

ARTICLE I. The Republic of Cuba hereby leases to the United States, for the time required for the purposes of coaling and naval stations, the following-described areas of land and water situated in the isiand of cou.

1 Foreign Relations, 1903, pp. 350-351 ; Malloy's Treaties I, 358, 360, and 364 ; Compilation of Treaties in Force, 1904, pp. 225 and 227.

1st In Guantanamo (see Hydrographic Office chart 1557) [description).

nd. In Northwestern Cuba (see Hrdrographic Office chart 20336).

In Batis Honda (see Hydrographic Ohce chart 520b) (description).

ARTICLE II. The grant of the foregoing article shall include the right to use and occupy the waters adjacent to sid areas of land and water, and to improre and deepen the entrances thereto and the anchorages therein, and generally to do any and all things necessary to fit the premises for use as coaling or naral stations only, and for no other purpose.

Vessels engaged in the Cuban trade shall hare free passage through the waters included within this grant.

ARTICLE III. While on the one hand the United States recognizes the continuance of the ultimate govereignty of the Republic of Cula over the above-described areas of land and water, on the other hand the Republic of Cuba consents that during the period of the occupation by the United States of said areas under the terms of this agreement the United States shall exercise complete jurisdiction and control over and within said areas, with the right to acquire (under conditions to be hereafter agreed upon be the two Governments) for the public purposes of the United States any land or other property therein by purchase or br exercise of eminent domain with full compensation to the owners thereof.

Lease of Land and Water at Guantánamo and Bahia Ilonda.

(Signed July 2, 1903; ratifications exchanged at Washington October 6, 1903. ]

(Extract.]

The United States of America and the Republic of Cuba, being desirous to conclude the conditions of the lease of areas of land and water for the establishment of naval and coaling stations in Guantánamo and Bahía Honda which the Republic of Cuba made to the United States by the agreement of February 16/23, 1903, * * have agreed upon the following articles:

ARTICLE I. * * * Paragraph 2. All private lands and other real property within said area shall be acquired forth with by the

Paragraph 3. The United States of America agrees to furnish to the Republic of Cuba the sums necessary for the purchase of said private lands and properties and such sums shall be accepted by the Republic of Cuba as advance payment on account of rental due by virtue of said agreement.

ARTICLE III. The United States of America agrees that no person, partnership, or corporation shall be permitted to establish or maintain a commercial, industrial, or other enterprise within said areas.

NOTE.—The first pertinent correspondence after the signing of the foregoing lease is with the Navy Department, which on April 4,

44773°—-F 1911— 13

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