Mr. Cambon to Mr. Kasson.

[Translation.]

Dear Mr. Kasson: I think I ought to call your attention to the reclamation, the object of the present memorandum which came to me yesterday from New York, and which I have had converted into English in order to facilitate its examination and to allow you to give without delay the necessary instructions to the proper authorities.

While thanking you in advance, I pray you, dear Mr. Kasson, to accept, etc.

Jules Cambon.
[Memorandum.]

The French ambassador received yesterday from Mr. Henry Gourd, president of the French Chamber of Commerce, the following telegram:

I hear that Mr. Kasson and Mr. Howell interpret the recent reciprocity agreement as not including liqueurs, absinth, etc. Please have this decision reversed.

Again, this morning the French ambassador received from Mr. H. Gourd a letter confirming his message of yesterday and sending copies of the following telegrams:

To MM. Luyties Bros., New York: Your telegram is referred to Secretary of Treasury for decision. This office is of opinion articles named not covered by new agreement. Signed, Kasson, Washington, May 31, 1898.

To MM. Luyties Bros., New York: Cordials, liqueurs, arrack, absinthe, kirschwasser, and ratafia are not included in commercial agreement with France, being separately classified in tariff bill. Washington, June 2, 1898. Signed, W. B. Howell, Assistant Secretary.

From the latter message it seems that a confusion has been made between section 3 and paragraph 289 of the tariff.

Section 3 is worded as follows:

Brandies, or other spirits manufactured or distilled from grains or other materials, $1.75 per proof gallon.

Paragraph 289 is thus worded, viz:

289. Brandy or other spirits manufactured or distilled from grains or other materials, and not specially provided for in this act, $2.25 per proof gallon.

As can be seen the expression “and not specially provided for” is not reproduced in section 3, which therefore has the widest possible meaning. From the records kept at the embassy it appears that such was the interpretation given of the text of section 3 by Hon. Mr. Dingley at the time of the framing of the tariff bill.

But without discussing the arguments heretofore presented in this respect by Mr. Kasson and by Mr. Bruwaert, the ambassador believes that the opinion given in Mr. Kasson’s telegram to Luyties Bros., viz, “that the articles named are not covered by the new agreement” must have been the result of an involuntary error, as will be seen hereafter.

In his memorandum of May 4,1898, to the French ambassador, Mr. Kasson states:

II.

* * * These reductions (on the part of the United States) are as follows, estimated on the basis of imports from France for the fiscal year 1897 (ending June 30, 1897):

* * * * * * *

[Page 296]

Brandies and spirits, $195,729. The above amount was evidently obtained through the following calculation:

Rate of duty on brandy and spirits, tariff bill, per proof gallon $2.25
Rate of duty on brandy and spirits, section 3, per proof gallon 1.75
.50
Imports from France (year ending June 30, 1897):
Spirits, brandy (dutiable), 301,098 proof gallons, at 50 cents 150,548.00
Spirits, all other (dutiable), 90,362 proof gallons, at 50 cents 45,181.00
Total 195,729.00

This shows beyond all doubt and discussion that it was Mr. Kasson’s intention to include in the agreement with France not only brandies, but all other distilled spirits, such as are enumerated in paragraph 289 of the tariff bill, viz, cordials, liqueurs, arrack, absinthe, kirschwasser, ratafia; otherwise the concession made by the United States on spirits would not be $195,729, as stated in the memorandum of May 4, 1898, but would only amount to $150,548.

The French ambassador feels confident that it will suffice to call Mr. Kasson’s attention to the matter to have the decision of the Treasury Department reversed.