Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-06-29
N O R IT AL AT ON
Foreign Governments and the Change in
the Sugar Tariff.
The State Department Knows of No
Government Which IL Seriously
O6ended-Secretary's Letter.


Senate transmitting a report made to him
by the Secretary of State in regard to al
legged proposed foreign retaliation against
the United States on account of sugar legis-
lation. The report is as follows:
ITO the President: On the 18th instant
you referred to the undersigned a resolu-
ton of the Senate, adopted on that day, in
the following words:
Resolved, That if not incompatible with
the public interests. the President be re-
quested to communicate to the Senate forth
with all representations. written or oral,
that have been made to the government Of
the United States or the Department Of
State by representatives Of any foreign
government in relation TO the probable ac-
tion of such governments by way of retail
Ia ation for the proposed imposition by the
United States Of u duty upon sugar, and
especially as to the probable exclusion of
the agricultural products of the United
States. by such governments from their
territories; and especially whether any
and what. representations have been so
| received in relation to the probab BILE action
OF Germany and OF Guatemala or either OF
them.
Further, That the President be re-
spectfully requested to furnish to the Sem
ate any information which he has received
as 10 any measure pending in the cortes of
spain looking to retaliation Upon the
or the reciprocity with that country secur-
ed by the statute Of $780,
In response to that resolution, the under
signed has the honor to report that no
representations, written or oral, have been
made to the Department Of State by or ON
penalf or any foreign government, and in
particular by or on behalf OF the govern
nents OF Germany and Guatemala, touching
any proposed action looking to the exclu-
sion OF agricultural products of the United
States by way of retaliation for the propos-
ed imposition by the United States of q
duty upon sugar.
"A dispatch from the United States e,n-
sssy at Berlin. dated the 9th instant trans
mits an apparently authoritative denial by
semi-ofhcial German newspaper, the truth
or an item printed In the Times on the Sth
instant to the effect that the German gov
ernment had protested against the sugar
schedule. then before the Senate and had
given an intimation that if a duty against
bounty paying countries was imposed Ger
any would retaliate against American
products.
"On the 18th Of May last, in a personal
conference. the Guatemaian minister at this
capital represented to the undersigned that
under the reciprocity arrangement (by him
called treaty. Of December 81. 1881, be-
tween the United States and Guatemala,
large sums had been invested by his coun-
trymen In machinery for the production Of
sugar, with View to enjoying the benefits
OF the American markets; that this large
outlay would not have been incurred had IL
| ed States contemplated this early abandon
ment Of the reciprocity arrangement and
the imposition of a tax upon Guaternalan
sugar; that the ability Of Guatemala to
produce sugar had already been demon
strated; that the bill before Congress involv-
ed discrimination against Guatemala in
| that it provided for the free admission Of
Hawaiian sugar produced by coole or con-
tract labor, and that financial ruin
would befall the Guatemalan sugar pro-
dueers should the bill become a law and the
sugar OF that country be made dutiable
THE Secretary replied that the reciproc-
ity arrangement was not a treaty; that II
Ia mo wise Restricted the right or power Of
either government to modify its tariff laws;
| that the understanding was entered into to
| remain In force 50 long as 1t shall not be
| modified or revoked by the legislation Of
| either government or by the mutual agree
ment Of the executive power of the two
countries. and that, without replying to
| his remarks as to the unfairness of the
proposed admission Of Hawaiian sugar free,
while taxing that Of other countries our
commercial treaty with Hawaii possibly
| suggested the proposed discrimination.
"On the lith OF May last the Spanish min
lister addressed the undersigned, referring to
the probable necessity OF raising larger rev.
enues in Cuba and Porto Rico by levying In
creased customs duties on peninsular and
| foreign products and inquired whether in
| the event of such increase. the government
| OF the United States would levy duties upon
| the productions OF those islands now free
| under the reciprocity arrangement. Mr..
| Muruaga's inquiry was answered to the ef-
feet that while increase in the duties Inn
posed in Cuba and Porto Rico upon Spanish
productions imported from the peninsula
| would not affect the privilege granted to
Spain by the reciprocity arrangement any
| increase OF duties upon the productions of
the United states exported to those Islands
| which now enjoy favor under the reciprocity
| agreement would raise the question whether
| the measure of reciprocity remaining after
such increase would Justify further nom
exercise OF the power conferred upon the
| President by the third section of the act of
| October l. 1880. 1t Is apparent, therefore.
| that the Spanish minister's inquiry covers
no intimation OF retaliation by Spain for the
| imposition of duties on sugar or any
other OF the products now free un-
der said third section and in virtue of
the existing reciprocity agreement; but
rather suggested an apprehension lest the
| United States should retaliate were Spain 70
tax American products row free or favored
by reduced rates in Cuba and Porto Rico.
| "A bill was introduced in the Spanish
cortes on June providing for a transitory
duty OF "A per centum upon all American
products now free In the Antilles under
schedule OF the reciprocity arrangement
| and for increasing by "a per centum the
| duties on articles now enjoying reduced
rates under schedule b. such change to take
| effect July 20. The department is not ad-
| vised that this measure has become law.
| Respectfully submitted.
| Department Of State. Washington, June
%, 1894. w. Q. GRESHAM"
|
CONTINUED by CORRIE.
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