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receive the assurance that the Government of the United States of America stands definitely satisfied with the present preferential reduction enjoyed by its flour imported into Brazil and would duly appreciate a formal declaration of the Government of the United States of America to the effect that it has no thought of endeavoring to obtain greater concessions.

In the confidential conversations he had the honor to have with the Secretary of State yesterday morning the Argentine minister made the statement set forth in the present memorandum, which he has taken pleasure in writing in compliance with the suggestion that the Secretary was pleased to make.

The Secretary of State to the Argentine Minister.

DEPARTMENT OF STATE,

Washington, June 13, 1911,

MEMORANDUM. In the memorandum of the Argentine Legation, dated June 9, 1911, the Department of State is made acquainted with information which has been forwarded by the Government of the Argentine Republic to its minister at Washington, thatthe congress, supported by the press of best standing, believes that the menace placed upon the exportation of Argentine flour by the advantages gained by the Government of the United States of America for its flour imported into Brazil has brought occasion for the Argentine Government to defend itself by increasing the import duties on petroleum, lumber, and other staples of American imports.

The Department of State takes cognizance of the statement of the memorandum that to the end that the threatened retaliations by the Argentine Congress may be checked, the Argentine Government, desiring to eliminate any cause of misunderstanding that could mar the sympathy and friendship existing between the Government and the people of the Argentine Republic and the Government and the people of the United States, seeks to obtain from the Government of the United States a formal declaration to the effect that it has no thought of endeavoring to obtain from the Government of Brazil greater concessions with respect to flour than those now existing.

On its part the Government of the United States is equally desirous of continuing unimpaired the cordial relations and friendly intercourse which it has been its constant aim and endeavor to maintain with the Argentine Republic. For this reason, and in no way influenced by the threat of hostile legislation by the Argentine Congress, the Government of the United States has no hesitancy in declaring, especially in view of the voluntary promise of the Argenčine Government to prevent legislation inimical to American interests and commerce, that it has no present thought of seeking from the Government of Brazil greater concessions with respect to American flour than those that the Government of Brazil in consideration of its own economic interests has already been pleased to grant. To this declaration the Government of the United States is glad to add the assurance that should circumstances now unforeseen arise to change this situation, the Government of the United States, following its wish to deal fairly with the Government of the Argentine Republic, will give to that Government six months' notice before negotiating with Brazil for greater preferential treatment of American flour, in order that full and seasonable opportunity may be given for an amicable discussion between the Argentine and United States Governments to adjust any questions that such negotiations with the Government of Brazil might be thought to interject into the trade relations between the Argentine Republic and the United States of America. File No. 611.3231/215. The American Chargé d'Affaires at Buenos Aires to the Secretary of

State.

AMERICAN LEGATION, No.941.)

Buenos Aires, June 28, 1911. Sir: Referring to previous dispatches from this legation regarding the matter of preferential tariff treatment of American flour in Brazil, I have the honor to report that on the 26th instant the Argentine minister for foreign affairs, Dr. Ernesto Bosch, having been requested by the chamber of deputies to inform that body of the steps taken by the Government to guard the interests of Argentine millers in Brazil, made a detailed statement in the matter to the Chamber of Deputies, the text of which I inclose herewith, together with a translation in full. There is also inclosed the remarks made by Deputy M. Carles following the minister's statement, with a translation of the pertinent parts thereof."

The communication from the Department of State to Minister Naón, quoted by Dr. Bosch, was received by the chamber with marked signs of approval as was the minister's statement. Contrary to general expectation and to what Señor Carles had himself counseled on previous occasions (see my No. 854 of Mar. 15, 1911), that gentleman introduced a bill which, instead of providing that the Executive Power be authorized to augment duties on certain articles imported from the United States, authorized the Executive to suppress or lower them on American petroleum, lumber, and machinery whenever reciprocal agreement be made. As reported to the Department in my telegram of yesterday, this bill immediately passed the chamber of deputies.

Yesterday morning Dr. Zeballos called upon me at the legation to secure the text of our present tariff law. He told me that Señor Carles's change of attitude in the flour question was due entirely to the insistance of His Excellency the President and of Dr. Bosch that no bill detrimental to the United States interests in Argentina should be introduced in Congress. I called Dr. Zeballos's attention to the importance of the United States Government's declaration that it would not seek further favors from Brazil without previous notification to his Government and I emphasized the fact that this declaration was but another demonstration of my Government's friendly feelings for the Argentine people. I also drew his attention to section 2 of the tariff law respecting the maximum and minimum tariff of the United States, pointing out that far from being a menace to international commercial interests it was merely a protection meas

1 Not printed.

ure to enable the United States Government to guard against discriminations unfavorable to its products.

Dr. Bosch's response to this interpellation has been well received, while the Department's note to the Argentine minister at Washington has changed the feeling of apprehension heretofore existing in Goyernment and commercial circles that the United States would compel Brazil to grant American flour further preference over that already accorded. As soon as this apprehension was removed by the department's memorandum to Dr. Naon, the desire to legislate against American imports disappeared. This would appear to bear out my report in the said No. 854 that no adverse legislation would be passed if it were made apparent that we would not seek further lowering of the Brazilian tariff on American flour. I am of the opinion that as soon as Dr. Carles learned of our Government's friendly statement he realized that he would not have the support of the Chamber of Deputies on a bill to increase duties on our products. He therefore introduced a bill in the contrary sense (a translation of which was telegraphed to the department on the 27th instant ) which immediately passed the lower house.

I must also report in this connection that several foreign ministers called on the Minister for Foreign Affairs this morning to remonstrate against the provisions of the proposed law as being contrary to their treaty agreements (of the most favored nation) with Argentina. With the exception of the British, it has not been possible to ascertain which of the foreign diplomats made representations to the minister, but I am inclined to believe that it was those of Germany, France, and Italy. The British chargé d'affaires tells me that the minister replied to him that the bill had not yet become law and that moreover it was only a facultative authority given the Executive Power to be exercised in case reciprocity agreements were entered into. He further said to me that it was the theory of the United States Government that benefits granted one nation by reciprocity agreements could not be claimed by a third under the most favored nation clause, and that, although his Government has accepted that theory from us he doubted whether they would do so from Argentina. I have, etc.,

· ROBERT Woods Bliss.

ARBITRATION CONVENTION BETWEEN THE UNITED STATES AND

BRAZIL. Fille No. 711.3212/15.

Signed at Washington, January 23, 1909.
Ratification advised by the Senate, January 27, 1909..
Ratified by the President, March 1, 1909,
Ratified by Brazil, January 2, 1911.
Ratifications eachanged at Washington, July 26, 1911.
Proclaimed, August 2, 1911.

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA.

A PROCLAMATION. Whereas an arbitration convention between the United States of America and the United States of Brazil was concluded and signed by their respectire plenipotentiaries at Washington on the twentythird day of January, one thousand nine hundred and nine, the original of which convention, being in the English and Portuguese languages, is word for wond as follows:

1 Not printed,

The President of the United States of America and the President of the United States of Brazil, desiring to conclude an arbitration convention in pursuance of the principles set forth in Articles XV to XIX and in Article XXI of the Convention for the Pacific Settlement of International Disputes, signed at The Hague on July 29, 1899, and in Articles XXXVII to XL and Article XLII of the convention signed at the same city of The Hague on October 18, 1907, have named as their plenipotentiaries, to wit:

The President of the United States of America, Elihu Root, Secretary of State of the United States; and

The President of the United States of Brazil, His Excellency Senhor Joaquim Nabuco, ambassador extraordinary and plenipotentiary to the Government of the United States of America, member of the Permanent Court of Arbitration of The Hague;

Who, after having communicated to one another their full powers, found in good and due form, have agreed upon the following articles:

ARTICLE I.

Differences which may arise of a legal nature or relating to the interpretation of treaties existing between the two high contracting parties, and which it may not have been possible to settle by diplomacy, shall be referred to the Permanent Court of Arbitration established at The Hague, provided, nevertheless, that they do not affect the vital interests, the independence, or the honor of the two high contracting parties, and do not concern the interests of third parties, and it being further understood that in case either of the two high contracting parties shall so elect any arbitration pursuant hereto shall be had before the chief of a friendly State or arbitrators selected without limitation to the lists of the aforesaid Hague Tribunal.

ARTICLE II.

In each individual case the two high contracting parties, before appealing to the Permanent Court of Arbitration of The Hague or to other arbitrators or arbitrator, shall conclude a special agreement defining clearly the matter in dispute, the scope of the powers of the arbitrator or arbitrators and the periods to be fixed for the formation of the court, or for the selection of the arbitrator or arbitrators, and for the several stages of the procedure. It is understood that on the part of the United States of America such special agreement will be made by the President of the United States of America by and with the advice and consent of the Senate thereof, and by the President of the United States of Brazil with the approval of the two Houses of the Federal Congress thereof,

ARTICLE III.

The present convention will be in force for a period of five years, dating from the day of the exchange of its ratifications, and, if not denounced six months before the end of the aforesaid term, will be renewed for an equal period of five years, and so on successively.

ARTICLE IV.

The present convention shall be ratified by the President of the United States of America, by and with the advice and consent of the Senate thereof; and by the President of the United States of Brazil, with the authorization of the Federal Congress thereof. The ratifications shall be exchanged in the city of Washington as soon as possible, and the convention shall take effect immediately after the exchange of the ratifications.

In testimony whereof, we, the aforesaid plenipotentiaries, have signed the present instrument in duplicate, in the English and Portuguese languages, and have affixed thereto our seals.

Done in the city of Washington, this 23d day of January, in the year one thousand nine hundred and nine.

ELIHU Root. [SEAL.]
JOAQUIM Nabuco. (SEAL.]

u DAIS.

And whereas the said convention has been duly ratified on both parts, and the ratifications of the two Governments were exchanged in the city of Washington, on the twenty-sixth day of July, one thousand nine hundred and eleven;

Now, therefore, be it known that I, William Howard Taft, President of the United States of America, have caused the said convention to be made public, to the end that the same and every article and clause thereof may be observed and fulfilled with good faith by the United States and the citizens thereof.

In testimony whereof, I have hereunto set my hand and caused the seal of the United States to be affixed. Done at the city of Washington this second day of August in the

year of our Lord one thousand nine hundred and eleven, [SEAL.) and of the independence of the United States of America the one hundred and thirty-sixth.

Wm. H. Tart. By the President: P. C. Knox,

Secretary of State.

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