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Ship which, from urgent necessity or to receive further orders, enters a Swedish port without taking on board any other loading than that necessary for the crew, passengers, or ship.

Ship which, in consequence of average, about which protest is made, enters a Swedish port for discharging her cargo and, after repairs, reloads the same for export.

Ship which, from the above-stated reasons, discharges and sells more or less of the cargo when such sale is limited to what is necessary for defraying the cost of repairs.

Ship which, during voyage between foreign countries, loads or uploads in a Swedish port goods not exceeding a quarter of the ship's tonnage, which shall be calculated according to the ship's documents.

In all these cases the master of the ship has to follow those regulations in the statute of customs which prescribe that he shall report himself at the nearest customhouse and deliver the bill of measurement, observing also what being applicable in that said statutes may be there stipulated regarding demands of duty pass.

[Inclosure 2 in No. 101.]

ROYAL ORDINANCE OF NORWAY REGULATING TONNAGE TAX.

Tonnage duty and light-house dues have to be paid with 80 öre per ton by ships importing or exporting goods according to the following rules:

A. No duty is charged for ships going out of the kingdom for fishing, Provided, That if goods be exported to foreign countries duty has to be paid both for outgoing and incoming. If on returning home goods are brought from foreign countries, the duty for incoming is paid after the general rules.

B. Duty for direct voyage between Norway and Sweden is only 30 öre per ton when the whole cargo is loaded and unloaded in these countries. From the date when for such voyages no shipping dues are charged in Sweden duty ceases.

C. Ships when trading between the ports of the White Sea or Arctic Ocean only pay 40 öre per ton.

In charging these duties it must be observed that they are charged according to the tonnage in the ship's bill of measurement when the custom-house officer declares the ship to be full loaded, else the duty is charged according to as many tons as the ship has loaded or unloaded, never, though, for more tons than the ship's bill of measurement indicates. If the cargo loaded or unloaded at the same custom-house does not amount to one ton, no tonnage duties or light-house dues are paid.

The regulations necessary for reducing goods into tons are promulgated by Gov

ernment.

No. 55.]

No. 22.

Mr. Bayard to Mr. Magee.

DEPARTMENT OF STATE, Washington, November 28, 1887. SIR: I have received your No. 101, of November 7 last, in reply to instruction No. 49, of August 5.

As stated in that instruction, the Department desired information especially on the point whether the discriminating tonnage-duty which was charged in 1827 on vessels in Norwegian ports, according to the geographical position of the port of departure, and which appears to have been discontinued as to vessels of the United States under the eighth article of the treaty of 1827, was still levied on the vessels of other countries than the United States after that time; and if so, how long.

The Department infers from the dispatch that the geographical discrimination referred to is so continued, but would have been glad to receive more explicit and detailed assurances on the point than have been furnished.

I am, etc.,

T. F. BAYARD.

No. 106.]

No. 23.

Mr. Rufus Magee to Mr. Bayard.

LEGATION OF THE UNITED STATES, Stockholm, December 14, 1887. (Received January 3, 1888.) SIR: I have the honor to acknowledge the receipt of your No. 55, under date of November 28 last.

Since 1827 there have been no discriminating duties charged in Norwegian ports on vessels arriving from ports of any country. The rates since that period on all vessels, except as stated in my No. 101 as to small fishing vessels from the White and Arctic Seas, has been uniform, no geographical distinction being made.

I have, etc.

No. 24.

RUFUS MAGEE.

No. 133.]

Mr. Magee to Mr. Bayard.

LEGATION OF THE UNITED STATES,

Stockholm, July 17, 1888. (Received July 30).

SIR: I have the honor to inclose herewith a copy in French of a note received on the 13th instant, from Count Ehrensvärd, secretary of foreign affairs for the Royal Kingdoms, relating to tonnage dues charged by the Norwegian Government on vessels trading at ports in the Arctic and White Seas.

I have thought it best to transmit a copy of the note rather than to trust to my own translation of the same.

It will be observed that by a recent law of the Norwegian Government a change in tonnage dues has been made on vessels trading with ports in the Arctic zone, so as to bring the charges into unison with the existing treaty.

I have, etc.,

RUFUS MAGEE.

[Inclosure in No. 133.-Translation.] Count Ehrensvärd to Mr. Magee.

STOCKHOLM, July 12, 1888.

Mr. MINISTER: With a view to completing the information which I sent to you with my note of October 25, 1887, concerning the navigation dues of Sweden and in Norway, I have the honor herewith to transmit to you a law which was promul gated in Norway on the 30th of June last, whereby a change has been made as regards the reduced duty (40 öre per ton) that was enjoyed by the navigation of the Arctic zones.

This law, as formerly worded, granted the benefit of the reduction to all vessels arriving from or sailing for ports in the Arctic Ocean and the White Sea.

Although the only vessels that were really benefited by this privilege were those engaged in the unimportant local coasting trade of those northern regions, where from time immemorial no distinction of nationality has been made, it nevertheless seemed to the royal government that the text of the law might appear to the United States Government not to be in conformity with Article VIII of the treaty of 1827 between the United Kingdoms and the United States. It might, indeed, have been remarked that a vessel arriving from a Russian port in the White Sea in a Norwegian port situated south of the Arctic region (which, by the way, has never yet happened, and

probably will not do so for a long time to come, save as rare exception) would pay but 40 öre per ton whereas a vessel arriving from the United States in the same port would pay 20öre. It is true that the hypothesis was not probable, but it was still possible. It was consequently deemed necessary by the Government of the King to change the form of the text of the law, in order to remove even the appearance of any lack of conformity with the stipulations of the treaty of 1827. A royal proposition to this effect was approved immediately by the Storthing of Norway, and, as you will perceive, the text of the new law provides that a reduction of the tonnage and light duty of 40 öre per ton is henceforth to be granted to all vessels arriving at or sailing from Hammerfest, Vardöe, and Vadsö. The privilege that might have been enjoyed by a vessel arriving from a Russian Arctic port in a Norwegian port lying south of the Arctic Ocean has thus been eliminated, and the Norwegian law is now in form, what it has always been in fact, in strict conformity with the treaty.

I hope that your Government will regard the care which we have taken to make our law harmonize with the treaty, without even waiting for a complaint on its part, as an evidence of our sincere desire to keep our international engagements in all points with the most scrupulous fidelity.

Be pleased, etc.,

EHRENSVÄRD.

CORRESPONDENCE WITH THE LEGATION OF SWEDEN AND NORWAY IN

WASHINGTON.

No. 25.

Mr. Reuterskiöld to Mr. Bayard.

LEGATION OF SWEDEN AND NORWAY, Washington, June 17, 1885. (Received June 18.)

SIR: With reference to our conversation this morning I beg to inclose a short memorandum concerning the tonnage-tax question I spoke to you about.

Accept, etc.,

L. REUTERSKIÖLD.

[Inclosure.] MEMORANDUM.

By section 14 of an act approved June 26, 1884, "to remove certain burdens on the American merchant marine, and encourage the American foreign carrying trade, and for other purposes," it is enacted:

"That, in lieu of the tax on tonnage of 30 cents per ton per annum heretofore imposed by law, a duty of 3 cents per ton, not to exceed in the aggregate 15 cents per ton in any one year, is hereby imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Central America, the West India Islands, the Bahama Islands, the Bermuda Islands, or the Sandwich Islands, or Newfoundland; and a duty of 6 cents per ton, not to exceed 30 cents per ton per annum, is hereby imposed at each entry upon all vessels which shall be entered in the United States from any other foreign ports."

Article VIII of the treaty concluded between Sweden and Norway and the United States of America, July 4, 1827, reads as follows:

"The two high contracting parties engage not to impose upon the navigation between their respective territories, in the vessels of either, any tonnage or other duties, of any kind or denomination, which shall be higher or other than those which shall be imposed on every other navigation except that which they have reserved to themselves, respectively, by the sixth article of the present treaty."

By virtue of the said article, a higher tonnage-tax than that imposed by section 14 of the above-cited act of June 26, 1884, on vessels arriving from ports or places in the countries therein mentioned, that is to say, 3 cents per ton at each entry, not to exceed in the aggregate 15 cents per ton in any one year, can not, after the entering into force of said act, be imposed upon vessels arriving in any port of the United States from any port or place in Sweden or Norway. WASHINGTON, June 17, 1885.

No. 26.

Mr. Reuterskiöld to Mr. Bayard.

[Translation.]

LEGATION OF SWEDEN AND NORWAY,
Washington, October 4, 1885. (Received October 8.)

Mr. SECRETARY OF STATE:

By section 14 of the act approved June 26. 1884, the object of which was "to remove certain burdens on the American merchant marine and encourage the American foreign carrying trade, etc.," a tonnage duty of 3 cents per ton, not to exceed in the aggregate 15 cents per ton in any one year, was substituted for the duty of 6 cents per ton, not to exceed 30 cents per ton per annum, in the case of vessels arriving from certain countries therein enumerated.

On the other hand, the treaty concluded July 4, 1827, between the United Kingdoms of Sweden and Norway and the United States of America declares, in Article VIII, as follows:

The two high contracting parties engage not to impose upon the navigation be tween their respective territories, in the vessels of either, any tonnage or other duties of any kind or denomination which shall be higher or other than those which shall be imposed on every other navigation, except that which they have reserved to themselves, respectively, by the sixth article of the present treaty,

which exception has reference to coastwise navigation.

Consequently the Government of the King is of opinion that vessels coming from Sweden and Norway should enjoy the benefit of the reduction of the tonnage duty provided for in section 14 of the act of June 26, 1884. The royal Government thinks that there can be no doubt whatever with regard to this right, since the treaty in force expressly provides that no higher duties than those which shall be imposed on every other navigation shall be imposed upon navigation between the respective territories, and that, consequently, vessels arriving from our ports have an absolute right to profit by any reduction allowed to vessels coming from any port whatever, whether such reduction as regards certain ports is based upon their geographical situation or their nationality.

Having been instructed to communicate the views of my Government on this subject officially to the Government of the United States, I have, in obedience to orders received, the honor to ask that the reduc tion of the tonnage duty to 3 cents per ton, not to exceed in the aggregate 15 cents per ton in any one year, may be extended to vessels from Sweden and Norway.

I avail, etc.,

No. 27.

REUTERSKIÖLD.

Mr. Bayard to Mr. Reuterskiöld.

DEPARTMENT OF STATE,
Washington, November 7, 1885.

SIR: I had the honor to receive in due season your note of the 17th June last, touching the application of the provisions of the 14th section of the shipping act, approved June 26, 1884, in respect of the col

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lection of tonnage tax, to vessels of Sweden and Norway, coming from ports of that country to ports of the United States, under the most-favored-nation clause of the existing treaty of 1827, between the United States and Sweden and Norway.

The importance of the questions involved in the claim of the Government of Sweden and Norway, and in like claims preferred by other Governments, has led to the submission of the entire subject to the judgment of the Attorney-General. 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 14th 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 14th section extended to their vessels sailing to this country from ports outside of the limitation of the act.

These conclusions are accepted by the President, and I have accordingly the honor to communicate them to you as fully covering the points presented in your note of the 17th of June last.

Accept, sir, etc.,

T. F. BAYARD.

No. 28.

Mr. Reuterskiöld to Mr. Bayard.

LEGATION OF SWEDEN AND NORWAY, Washington, November 11, 1885. (Received November 12.)

Mr. SECRETARY OF STATE: .

I have had the honor to receive your excellency's note of the 7th instant, relative to the enforcement of the provisions of section 14 of the shipping act approved June 26, 1884, as regards tonnage duties.

After having, on the 17th of June last, sent your excellency a memorandum on this subject, I addressed to you, under date of the 4th of the following October, an official note, in which I stated the view taken of this question by the King's Government, and asked, in obedience to the instructions which I had received, that the reduction of the tonnage duty provided for in section 14 might be made applicable to vessels coming from Sweden and Norway.

As your excellency has seen, both by my aforesaid note and by the memorandum, the royal Government, in making this request, did not do so on the ground of Article II of the treaty of 1783 (which was continued in force by that of 1827), which article has reference to the usage to be accorded to the most favored nation, but it took as the basis of its claim, Article VIII of the treaty of 1827, which reads thus:

The two high contracting parties engage not to impose upon the navigation between their respective territories, in the vessels of either, any tonnage or other duties of any kind or denomination, which shall be higher or other than those which shall be imposed on every other navigation, except that which they have reserved to themselves, respectively, by the sixth article of the present treaty,

which exception has reference to coastwise navigation.

Under these circumstances the royal Government can not consider its claim as having been set aside by the statement made by your excellency in your note of the 7th instant, since the refusal of the United States Government to extend to vessels coming from Sweden and Nor

H. Ex. 1, pt. 1-119

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