The daily morning journal and courier., 1901-07-10
RUSSIA'S RETALIATION.
TARIFF OFFER MADE TO THE
 UNITED STATES.
Cxnr's Government Willing to Vacnte American Goods Recently if United States VIII Vacate Its Action on the Sugar reMtiaIs-Secretary Gage Replies That the Proposition Cannot be Accepted.

Washington, July 9.-Another inn portant exchange has occurred between the Russian government and the United States relative to the tariff. The Russian minister of finance, M De- Witte, has proposed that Russia will vacate all of the additional duties lev jed on American goods since the impo- sition of the sugar differential, if the United States will vacate it's action on the sugar differential. To this Secre- tary Gage has replied that the offer of the Russian government cannot be ac- cepted, as the question of the sugar dlf- ferential is now in the hands Of the court thus precluding action by the executive branch. These exchanges, al though made nominally by the minis ter of finance and Secretary Gage have gone through the medium of the Rus sian foreign office and state depart ment.
 The proposition of the Russian min ister of finance was the direct result of Secretary Hays note of about two d WGCho cSo. III llidl iloNc, tii' iioJ pointed out that the action taken as to petroleum was not new, nor was 1t meant to have any connection with the previous action of the government on sugar. This appears to have reconcil- ed the Russian officials in their view that the petroleum order was only another step in the policy previously taken respecting sugar.
 Accordingly M. DeWitte's response was communicated to Washington Count Lamsdorf forwarding 1t to M. DeWollant the Russian charge here. It is not long, but is quite to the point. It makes no further issue as to the pe- troleum order. The chief attention is given to sugar and the specific offer is made to vacate immediately the in creased duties which Russia has levied, if the United States will vacate it's &C., ton on sugar. This would amount to re-esta blishing the status quo which existed before the United States took its initial action relative to Russia.
 The Russian proposition was duly communicated to Secretary Gage, who has responded promptly that as the sugar question is now before the courts
  self of the Russian suggestions. Thus the matter stands
 The reduction which would have re- suited under M. DeWitte's tender are those affecting cast iron wares, manu- factures of iron and steel, boiler work, tools for artists, factories and work shop; gas and water motors motors and dynamos, sewing machines, port able engines. not including threshing machines, fire engines and other ma cfiery of iron and steel; also, white resen, galipot, brewers pitch and bicy- cles The increased duties on iron and steel goods followed after the imposi- tion of the sugar differentials, while those on bicycles and resen followed the increase on petroleum.
 M. DeWitte's proposal was to take off all of the increased duties. In the course of his letter, it is stated that and resen was not due to the American action on petroleum, although it had so appeared in the original Russian note, but that it related back to the American action on sugar,
 This is thought to be the result of Secretary Gage's reply to Russian to the effect that it's action in increasing the duty on American bicycles and re- sen was a viola tion of our treaty with l that country.