No. 17. Mr. Bayard to Baron Fava. DEPARTMENT OF STATE, BARON: I have the honor to acknowledge the receipt of your note of the 16th ultimo, calling attention to the provisions of section 14 of the act of Congress of June 26, 1884, "to remove certain burdens on the American merchant marine," etc., reducing the amount of tonnage-tax on vessels entered in any port of the United States from any foreign port in North America, Central America, and certain other quarters named, and fixing a "duty of 6 cents per ton at each entry upon all vessels which shall be entered in the United States from any other foreign ports." Your note also calls attention to the provisions of Article XXIV of the treaty of February 26, 1871, between Italy and the United States, which reads: "The United States of America and the Kingdom of Italy mutually engage not to grant any particular favor to other nations, in respect to commerce and navigation, which shall not immediately become common to the other party, who shall enjoy the same freely if the concession was freely made, or on allowing the same compensation if the concession was conditional;" and you communicate the request of your Government, in view of said section 14 and Article XXIV of the treaty, that vessels from Italian ports "may likewise enjoy from the date of the aforesaid act of Congress the same privilege that is accorded * to vessels coming from ports in the countries enumerated in section 14." The Department had occasion to present the question of the proper interpretation of the fourteenth section of the act mentioned in connection with the "favored-nation clause" of our treaties with certain countries to the Attorney-General in September last. The opinion communicated in reply is that The discrimination as to tonnage duty in favor of vessels sailing from the regions mentioned in the act and entered in our ports is purely geographical in character, inuring to the advantage of any vessel of any power that may choose to fetch and carry between this country and any port embraced in the fourteenth section of the act; and that no warrant exists to claim that there is anything in "the most favored-nation" clause of the treaties between this country and the powers mentioned in the letter of this Department to the Attorney-General of the 8th September, of which Italy was one— that entitles them to have the privileges of the fourteenth section extended to their vessels sailing to this country from ports outside the limitation of the act. It will be seen that the opinion above relates to the entire scope of article 14 of the act of 1884, and therein furnishes the reply to the second branch of your inquiry, as well as the first. Accept, baron, etc., T. F. BAYARD. CORRESPONDENCE WITH THE LEGATION OF PORTUGAL IN WASHINGTON. No. 18. Mr. Bayard to Viscount das Nogueiras. DEPARTMENT OF STATE, SIR: I have the honor to acknowledge the receipt of your note of the 15th March last, in which you convey a request that vessels trading between the ports of Portugal and those of the United States may enjoy the benefits granted to those of other countries by virtue of the proclamation of the President of January 31, last. The request is made upon the supposition that the privileges granted to certain vessels under the joint operation of the fourteenth section of an act"to remove certain burdens on the American merchant marine and encourage the American foreign carrying trade, and for other purposes," approved June 26, 1884, and the said proclamation of the President, inure to the advantage of Portuguese vessels by virtue of Article XIII of the treaty of the United States with Portugal of August 26, 1840. The article of the treaty reads: If either party shall hereafter grant to any other nation any particular favor in navigation or commerce, it shall immediately become common to the other party, freely where it is freely granted to such other nation, or on yielding the same compensation or an equivalent quam proxime where the grant is conditional. (In this connection I beg to append for convenient reference a copy of section 14 of the act of June 26, 1884, and a copy of the proclamation of January 31, 1885.) The Secretary of the Treasury, having been asked for an expression of his views as to the character of the conditional concession granted by the fourteenth section of the said shipping act, observes that the concession is an exemption from tonnage tax allowed all vessels arriving in the United States from ports situated in the localities named in that section, equal to the amount by which the tax of 3 cents per ton-levied on vessels in ports of the United States-exceeds the amount collected from vessels of the United States for tonnage tax, light-house dues, or equivalent taxes in ports within the localities mentioned. The proclamation specifies the ports within those localities whence vessels sailing to ports of the United States, upon arrival, get the benefit of an entire exemption from the tax of 3 cents per ton. The reason for the complete exemption is that no tax per ton, nor light-dues, nor any equivalent taxes, are exacted from American vessels in those ports. In order to an allowance of entire exemption from tonnage tax to vessels arriving from ports in these localities it is necessary that the government of the foreign country within whose domain a particular port is situated should not impose at that port a similar tax or light-dues on American vessels. But if the foreign government does not impose such a tax at a port within the localities named, then the exemption inures to the benefit of all vessels arriving in ports of the United States from any such port that does not impose such taxes. The fourteenth section of the shipping act, the Secretary of the Treasury observes Concedes a privilege to vessels of Mexico and Central America, which is at once national and geographical-contingent upon similar concessions from those Govern ments. This privilege is an exemption from tonnage tax on all direct voyages between national ports and ports of the United States. It seems to me, therefore, that under the stipulations of Article XIII of the treaty with Portugal of 1840, a similar contingent privilege is granted by the shipping act to vessels of Portugal sailing from their national ports directly for ports in this country; but not to Portuguese vessels arriving in our ports from ports of departure that do not under the shipping act invest vessels sailing from them with a right to exemption. Moreover, the conditional concessions of the statute would not extend to any other vessels than those of Portugal and the United States sailing on direct voyages between Portugal and this country; nor if an exemption for Portuguese vessels can be claimed under the joint operation of the shipping act and Article XIII of her treaty of 1840, could such vessels claim a greater exemption than for 3 cents per ton, which is the maximum amount of the exemption that could on any conditions be allowed vessels of Mexico or the Central American States. This Department sees no reason for differing from the above views. The question remains, "Whether Portugal does exempt vessels of the United States in her ports from such a payment of tonnage tax, lighthouse dues, or equivalent taxes as would exempt her yessels in our ports from the whole or a part of the tax of 3 cents per ton." Accept, etc., No. 19. T. F. BAYARD. Mr. Bayard to Viscount das Nogueiras. DEPARTMENT OF STATE, Washington, November 7, 1885. VISCOUNT: I have had the honor to recur to the question presented in your note of the 15th March last, to which my note of May 21 made response by communicating to you the views of the Treasury Department touching the application of the provisions of the fourteenth section of the shipping act approved June 26, 1884, to vessels of Portugal coming from ports of that country directly to ports of the United States under the most favored nation clause of the existing treaty of 1840. You will recall the opinion of the Secretary of the Treasury, as quoted by me, to the effect that while the stipulations of Article XIII of the treaty with Portugal would seem to involve the granting, by the shipping act, of similar contingent privilege to vessels of Portugal sailing from their national ports directly for ports of the United States, this privilege is not granted to "Portuguese vessels arriving in our ports from ports of departure that do not, under the shipping act, invest vessels sailing from them with a right to exemption." The importance of the questions involved in the claim of the Portuguese Government, and in like claims subsequently preferred by other governments, has led to the submission of the entire subject to the judgment of the Attorney-General, to the end that a precise and uniform response should be made in each case. The conclusions of the Department of Justice, after a careful examination of the premises, are, that— The discrimination as to tonnage duty in favor of vessels sailing from the regions mentioned in the act and entered in our ports is, I think, purely geographical in character, inuring to the advantage of any vessel of any power that may choose to fetch and carry between this country and any port embraced by the fourteenth section of the act. I see no warrant, therefore, to claim that there is anything in "the most favored nation" clause of the treaty between this country and the powers mentioned that entitles them to have the privileges of the fourteenth section extended to their vessels sailing to this country from ports outside the limitation of the act. These conclusions are accepted by the President, and I have accord. ingly the honor to communicate them to you as fully covering the points presented in your note of 15th March last. Accept, etc., SIR: I have to request that you will inform the Department at the earliest convenient date whether any, and, if any, what difference exists under the shipping laws of Sweden and Norway between the tonnage dues charged on vessels in the ports of Sweden and the ports of Norway. The correspondence between the Department and the minister of Sweden and Norway at this capital, in relation to the shipping act of 1884, as amended in 1886, in connection with the treaty of 1827 between the United States and Sweden and Norway, has disclosed the fact that at the time of, and subsequently to, the conclusion of that convention, there existed a considerable difference between the system of tonnage and other duties charged in the ports of Sweden and that enforced in the ports of Norway. The Department desires to be informed in relation to that difference; in what it consisted, and when and in what manner it was terminated. The point which has been brought particularly to the notice of the Department in the correspondence referred to is that in 1827, and for some time thereafter, the rate of tonnage and other duties levied in the ports of Norway was adjusted upon a geographical basis. For example, vessels coming from ports in the Mediterranean were charged a less rate than vessels coming from more remote points, among which were, of course, ports of the United States. To this discrimination between vessels coming from Mediteranean ports and those coming from the ports of the United States this Government objected as in contravention of Article VIII of the treaty of 1827, and the Government of Sweden and Norway yielded the point. The Department desires to know how long after that admission the discrimination continued to operate as between Sweden and Norway and other countries than the United States. Again asking your early attention to the matter, I am, etc., JAS. D. PORTER, Acting Secretary. No. 101.] No. 21. Mr. Magee to Mr. Bayard. LEGATION OF THE UNITED STATES, Stockholm, November 7, 1887. (Received November 21.) SIR: I have the honor to inform you that I am in receipt of a note from his excellency Count Ehrensvörd, secretary of foreign affairs, in response to my inquiry based upon your instruction No. 49, of date Áugust 5 last. From the note of his excellency I am informed no discrimination exists at the present time, or has since the year 1827, in tonnage or other duties charged upon shipping as between native and foreign-built vessels. The only exception is fishing vessels entering ports of the United Kingdom from the Arctic and White Seas. I have caused to be translated section 4 of the royal ordinances relating to tonnage dues, etc., and inclose such translation with this dispatch. I also inclose a translation of section 9 of the royal ordinances of Norway regulating tonnage charges, etc. In Norway the tax is calculated on the actual amount of cargo tons embarked or discharged, and not on the ship's measurement. Since 1876 tonnage tax and light-house charges have been united in a single tax. In 1827 the following classification was established in Norway: A. Vessels coming from all places outside of the European ports with the exception of the ports in the Mediterranean. B. Vessels coming from Mediterranean ports. C. Vessels coming from all European ports not comprised in item B. By circular dated August 9, 1828, vessels coming from ports of the United States or returning there were ranked in class C. This classification is still in force. Perhaps this information is not as full and complete as you would desire. It is in substance what has been furnished me. I have, etc., RUFUS MAGEE. [Inclosure 1 in No. 101.] ROYAL ORDINANCE IN RELATION TO TONNAGE, etc. (sweden.) The tonnage duties to the State are alike for Swedish and foreign vessels, fixed to 10 öre per ton, according to the existing bill of tonnage, and has to be paid every time, both when incoming and outgoing; but, if a ship during the time of one year makes several voyages between Sweden and foreign countries, the duty for outgoing is only paid for the first voyage, and for repeated incoming only for vessels loaded, when they unload more or less of their cargo, and will also be considered, as ballasted, but whose quantity of load is of less importance compared to their tonnage; in which case will be applied the stipulation in § 44 in the royal statute regarding the pilot department, February 15, 1881, as this paragraph reads according to the royal edict, November 17, 1882. Regarding alterations in certain parts of the abovenamed statute When vessels have been loaded and unloaded at different places, tonnage duty is only paid at the first port of loading or unloading, of which a certification has to be made on the bill of measurement or passport. The following ships are free from tonnage duties: Ship destined or not destined to a Swedish port, coming in and going out in ballast. Ship which, running between foreign countries, enters a Swedish port in order to leave passengers and their baggage, or discharges to another ship goods for export. |