No. 514.
Mr. Birney
to Mr. Evarts.
The Hague, December 20, 1879. (Received January 6, 1880.)
Sir: Referring to my No. 134, you will learn by the Inclosure thereto annexed, that the minister of foreign affairs was interrogated in the Staats General of the Netherlands, as to whether any progress had been made in obtaining the abolition of differential duties imposed by the United States upon the indirect importation of coffee. This question is constantly recurring here, and is one of intense Interest among the political and mercantile men of Holland.
Since my residence here, I have frequently been spoken to on the subject by the several incumbents of the foreign office, as well as by members of the Staats General. They have generally treated the question as though it only needed the action of the Executive and his cabinet to remove the imposition, evidently not understanding that feature of our system which authorizes the President to execute only existing laws, and that he does not assume to put into operation a provision of a treaty which may be contingent upon future events, without the aid of legislation.
I have ordinarily replied that to meet their wishes would require an amendment of the tariff law, and this would necessitate the concurrent action of both branches of Congress with the approval of the President; that, as there was such a marked division of sentiment among members of Congress upon the subject of tariff, the accomplishing of such an alteration might be of slow progress.
The measure had not been urged as one of right, founded upon a treaty stipulation, but as one which, if gained, would be of essential benefit to all parties concerned. But upon a recent examination of the treaties that have been entered into between the United States and the Netherlands, I found in one of them an express agreement covering this question.
During a subsequent conversation with his excellency the minister of foreign affairs, * * * he said that he would soon address me a note, which he desired to be regarded as an application on the part of this government to that of the United States for the necessary legislation to maintain the terms of the said convention. His note has been received, and is hereto annexed with translation.
It would seem that prior to 1852 both countries had imposed extra duties upon certain articles of indirect importation. In the matter of coffee, Holland owns the most of Java, and some neighboring islands, and farms out the plantations of coffee. Her share of the product, which is said to embrace that which is of the better quality, is transferred to Amsterdam and Rotterdam, and placed in government storehouses, at which an annual sale takes place.
American merchants are buyers to a large extent; but upon whatever is taken from these sales to the United Stated there is a duty of 10 per cent, in addition to that which is imposed upon coffee that comes directly from Java or other neighboring islands to the United States. This the merchants regard as very onerous, and the effect of it is to encourage the importation of inferior coffee that remains in the islands after said selection.
In the year 1852 the United States and the Netherlands entered into a convention supplementary to the treaty of 1839. The signing plenipotentiaries [Page 808] were Daniel Webster, on the part of the United States, and Baron Testa, on hehalf of tire Netherlands. The latter part of Article V of said convention supplementary contains the following language:
Likewise the United States shall continue to levy the discriminating duties imposed by the present tariff on teas and coffee, in favor of the direct importation of these articles from the place of their growth, but also without discriminating between the flags of the two countries. And if at any time the Netherlands or the United States shall abolish the said discriminating duties, it is understood that the same shall be in like manner abolished in relation to the commerce of the other country.
The Government of the Netherlands asserts that in the year 1872 it abolished the discriminating duties referred to in said Article V, and it now claims that by the terms of said article it is incumbent upon the United States to do likewise. I replied to his excellency the minister that if this view were presented through the Secretary of State to the President it might be that he would deem the matter of sufficient importance to call the attention of Congress to it, and this might be followed by legislation that would in good faith maintain the treaty. He desired very much that it might be presented and that such would be the result. He also agreed to send me a copy of the act of 1872, by the Staats General, that I might inclose it with this dispatch. It is annexed.
The alleged grievance of the Netherlands Government, if I am correct, grows out of the collection of duties by the officers of the United Staats under the authority given in section 2501, on page 459, of Revised Statutes of 1878.
I submit these suggestions, feeling assured that such action will be taken as maybe required.
I am, sir, &c.,