As to the second part of the legation's note I beg to inform you that vessels of the United States are subject to the same conditions as Italian vessels and those of all other countries.

In regard to the first part of said note I desire to notify you that the Government of the King has taken into serious consideration and carefully examined the proposal of the United States Government of establishing a perfect reciprocity between the two countries in the matter of tonnage and navigation taxes.

To render possible, however, such an accord, it would be necessary for the Royal Government to undertake the modification of a law recently adopted, which is that of December 6, 1886, No. 3547 (3d series), and which regulates the anchorage taxes (tasse di ancoraggio) for vessels arriving from foreign parts in ports of the Kingdom. At the present time it does not seem opportune, for reasons of availability (indole), administrative as well as economical, that the provisions of said law should be changed.

It is therefore with regret that the Royal Government finds it impossible to accede to the desire manifested by the Cabinet of Washington.

Be good enough to accept, etc.,

F. CRISPL.

CORRESPONDENCE WITH THE LEGATION OF ITALY IN WASHINGTON

No. 59.

Mr. Ferrara to Mr. Bayard.

[Translation.]

LEGATION OF ITALY,

Washington, July 18, 1887. (Received July 18.)

Mr. SECRETARY OF STATE:

In virtue of several proclamations issued by the President, the last of which bears date of the 22d of April last, and has reference to the ports of the Netherlands and to certain ports in the East Indies, the collection of tonnage dues has been suspended as regards merchant vessels, whatever may be their nationality, coming from the ports desig nated in the aforesaid proclamations, provided that the countries to which such vessels belong do not levy upon American merchant vessels higher duties than they do upon their own.

The Government of the King has just informed me that in the ports of Italy United States vessels and their cargoes, as well as those sailing under any other flag, are required to pay only the same duties and imposts as Italian vessels, and it instructs me, at the same time, to take the necessary steps to the end that Italian merchant vessels may enjoy the benefits granted by the proclamations aforesaid.

I consequently have the honor to beg your excellency to be pleased to cause the necessary measures to be taken in order that Italian vessels coming from the ports mentioned in the proclamations referred to may be freely allowed to enter the ports of the United States without being subjected to the payment of tonnage dues.

Thanking you in advance for your kind compliance with this my request, I avail myself, etc.,

E. FERRARA.

No. 60.

Mr. Bayard to Mr. Ferrara.

DEPARTMENT OF STATE,

Washington, July 26, 1887.

SIR: I have the honor to acknowledge the receipt of your note of the 18th instant, in which you refer to the proclamation of the President, of the 22d April last, under section 11 of the shipping act of June 19, 1886, suspending the collection of tonnage dues on vessels entering our ports from those of the Netherlands in Europe and from certain Dutch East Indian ports, and say, that "in the ports of Italy, United States vessels and their named cargoes, as well as those sailing under any other flag, are required to pay only the same duties and imposts as Italian vessels," which facts, your Government understands, entitle Italian vessels coming from said-named Dutch ports to the benefits of the procla mation.

The proviso in the proclamation, excluding certain vessels from the benefits, reads as follows:

Provided, That there shall be excluded from the benefits of the suspension hereby declared and proclaimed, the vessels of any foreign country in whose ports the fees or dues of any kind or nature imposed on vessels of the United States, or the import or export duties on their cargoes are in excess of the fees, dues, or duties imposed on the vessels of such foreign country, or their cargoes, or of the fees, dues, or duties imposed on the vessels of the country in which are the ports mentioned in this procla mation, or the cargeos of such vessels.

While the facts given in your note may place Italian vessels from said Dutch ports outside of the above proviso, the actual statement does not precisely meet the terms of the proviso. It is, you will perceive, not only requisite that the country whose vessels seek to enjoy the privi lege stated in the proclamation should not discriminate in its ports in favor of its own vessels as against vessels of the United States, but also that it should not discriminate in its ports against vessels of the United States, and in favor of the vessels of the country in which the ports named in the proclamation may be situate.

If, therefore, Italy makes no discrimination of any sort, such as described in the proclamation, against American vessels, the Department would be glad of an express statement, such as might be suggested by the terms of the proviso.

The Department, will, however, transmit a copy of your note to the Treasury, with the request that if no such discrimination as that described in the proclamation is made by Italy, Italian vessels may be permitted to enjoy the benefits of the proclamation, when coming from the ports therein designated.

Accept, etc.,

No. 61.

T. F. BAYARD.

Mr. Ferrara to Mr. Bayard.

[Translation.]

LEGATION OF ITALY,

Washington, July 27, 1887. (Received July 28.)

Mr. SECRETARY OF STATE:

In reply to your excellency's note of yesterday I have the honor to advise you that, according to the information received from my Gov

ernment, United States vessels and their cargoes are not obliged to pay any discriminating duty in the ports of Italy, either as compared with Italian vessels, those of the Netherlands, or those of any other country. I beg your excellency to be pleased to bring the foregoing to the notice of the Treasury Department, and to request that Department to take the necessary measures in order that Italian merchant vessels may be allowed to enjoy the advantages granted by the President's proclamation of the 22d of April last, and by the other proclamations previously issued by the President of the United States in pursuance of Article XIV of the act of March 26, 1884.

Begging you to be pleased to acquaint me, as speedily as possible, with the decision reached by the Treasury Department in regard to this matter, I offer you, Mr. Secretary of State, my warmest thanks, and I avail, etc. E. FERRARA.

No. 62.

Mr. Bayard to Count de Foresta.

DEPARTMENT OF STATE,

Washington, August 23, 1887.

COUNT: I have the honor to acknowledge the receipt of Mr. Ferrara's note of the 27th ultimo, stating that United States vessels and their cargoes are not obliged to pay any discriminating duty in the ports of Italy, either as compared with Italian vessels, those of the Netherlands, or those of any other country. I communicated the facts to the Treasury and have received a letter from that Department informing me that Italian vessels coming from the ports named in the President's proclamation of April 22 last, of which I inclose copy, will be admitted in the United States under the terms of that proclamation.

Tokio, Japan, September 24, 1887. (Received October 24.)

SIR: I have the honor to inclose herewith, for the information of the Department of State, a copy of a note received from his excellency the minister for foreign affairs, in reply to my note of the 30th ultimo in pursuance of your instruction (circular) dated July 9, 1887.

The Department will observe that in this instance-as in all similar propositions heretofore-the Japanese Government, while earnestly 'professing a desire to enter into separate reciprocal conventions for mutual considerations of benefit to be received by the high contracting parties through such conventions, yet declare that, under the favored nation clause of the existing treaties, it can not be done by their GovH. Ex. 1, pt. 1——122

ernment in the comprehensive sense intended by the invitation of the United States Government, conveyed by your instruction.

The note herewith of the minister for foreign affairs fully explains the status of this Government in response to my note acquainting that minister of the desire of my Government in the premises.

Tokio, the 15th day, the 9th month, the 20th year of Meiji. SIR: I have the honor to acknowledge the receipt of your excellency's note of the 30th ultimo, in which you inclosed copies of a communication from the honorable : he Secretary of State of the United States and two acts of Congress, approved June 2 i, 1884, and June 19, 1886, respectively, and invited His Imperial Japanese Majesty's Government to unite with your excellency's Government in a measure looking to the reciprocal abolition of tonnage and light dues upon vessels employed in the trade between the ports of Japan and those of the United States.

While His Imperial Japanese Majesty's Government warmly appreciate the friendly spirit that inspired the invitation, and fully recognize the enlightened and liberal aim of the Government of the United States in the endeavor to ameliorate the condition of shipping, they are, nevertheless, prevented by their conventional engagements with other powers from accepting the invitation in its most comprehensive sense.

I have not, however, failed to observe, as pointed out by Mr. Bayard, that the act of Congress, in accordance with which the invitation was issued, is broad enough to cover a reduction as well as a total extinction of tonnage and equivalent charges on navigation. In order, therefore, that vessels interested may, to a limited extent at least, avail themselves of the benefits of the law, I beg to assure your excellency that vessels of the United States engaged in the foreign trade of Japan are in all respects placed upon an exact equality with national vessels engaged in the same trade and upon the same footing as the vessels of the most favored nation. No tonnage or light dues whatever are levied in the ports of Japan upon American vessels, but in lieu thereof, and in lieu of all similar charges, an entrance fee of $15 and a clearance fee or $7 at each entry and clearance, irrespective of burthen, is collected from American vessels in common with all other foreign-going ships.

I avail, etc.,

COUNT INOUYE Kaoru.

No. 417.]

No. 64.

Mr. Hubbard to Mr. Bayard.

LEGATION OF THE UNITED STATES,

Tokio, December 28, 1887. (Received January 21, 1888.) SIR: Respectfully referring to my dispatch No. 383, in which I had the honor to inclose a copy of a note from the Japanese minister for foreign affairs in reply to my note to him transmitting a copy of your circular instruction of July 9, and accompanying inclosures, with an invitation to His Imperial Japanese Majesty's Government to enter into an arrangement with the United States Government for a mutual abolition or reduction of tonnage dues, etc., on vessels plying between the ports of our respective countries, I now have the honor to submit to the Department of State a copy of a note just received from Count Ito on the same subject.

The accompanying note is in reply to a communication from me in which I inclosed a copy of your instruction No. 164, expressing regret at the action of the Japanese Government in declining to enter into said arrangement or convention as desired by the United States Government. The reply of Count Ito explains itself, and I only have the honor to respectfully invite your attention to his communication and especially to the closing paragraph of his note.

I have merely acknowledged the receipt of this reply, informing the Japanese Government that I would refer the same and the accompanying inquiry to my Government for its early consideration. I have also assured the minister for foreign affairs that a response thereto would be made, and might be anticipated, in accordance with that spirit of justice and good neighborhood which has always been manifested by our laws as well as by our treaties with all friendly powers.

I have, etc..

RICHARD B. HUBBARD.

[Inclosure in No. 417-Translation.]

Count Ito to Mr. Hubbard.

DEPARTMENT FOR FOREIGN Affairs,

Tokio, the 24th day, the 12th month, the 20th year of Meiji.

SIR: I have the honor to acknowledge the receipt of your excellency's note dated the 9th instant, transmitting a copy of a communication from the honorable the Secretary of State, in which he expresses regret at the non-acceptance by His Imperial Japanese Majesty's Government of the invitation of the United States to enter into a convention for the abolition of tonnage or other equivalent charges on merchant vessels plying between Japan and the United States.

The nature of Mr. Bayard's reply leads me to believe that he has slightly misapprehended the exact meaning of my former note on this subject.

You will recollect that Mr. Bayard, in his instruction of the 9th July last, a copy of which you forwarded to Count Inouye, intimated that the shipping acts under which his invitation was extended were sufficiently comprehensive to cover either a reduction or a complete abolition of tonnage and equivalent charges, and in the same connection he added, "It is open to any foreign country in all or any of whose ports a less charge is made than that now imposed in the ports of the United States to obtain forthwith a reduction in the United States on vessels from such port or ports to an equality with that levied in the port or ports designated."

In replying to the invitation of the Government of the United States, I pointed out the reasons which prevented His Imperial Japanese Majesty's Government from entering into an arrangement having for its object the complete extinction of all customs charges in respect of merchant shipping. In order, however, that vessels proceeding from Japan to the United States might, to a limited extent at least, take advantage of the acts in question, I took occasion to assure you that no tonnage dues were levied in the ports of Japan on vessels of the United States, and that such vessels were, in the matter of fees, placed upon a national as well as the most favorednation footing.

The exemption of vessels of the United States from tonnage dues is already a matter of conventional understanding between our respective Governments, as will be seen by reference to article 6 of the trade regulations attached to the treaty of 1858. It was consequently more particularly in the direction of equivalent or other shipping charges that His Imperial Japanese Majesty's Government were unable to accept the proposal of the United States.

Having in view the fact, however, that those charges are considerably less than the tonnage dues ordinarily imposed in the United States, I beg to inquire what the future status of Japanese and other vessels proceeding thither will be in respect of navigation charges.

I avail, etc.,

COUNT HIROBUMI ITO.