Mr. Moore to Mr. Hay.
Joint Commission to-day discussed draft of treaty. We proposed to apply to the Philippine Islands provisions agreed on by the Commissioners for the evacuation of Puerto Rico. Spanish Commissioners raised the question as to whether any agreement was reached as to heavy ordnance in fortifications and as to war materials, and expressed a desire for retention of such ordnance and materials in the Philippine Islands and also in Puerto Rico if not agreed on by Commissioners. Can you cable us evacuation agreement as to Puerto Rico?
We tendered admission of Spanish ships and merchandise in Philippine Islands on same terms as our own for a period of ten years. Spanish Commissioners propose extension of this privilege to their ships and merchandise in Puerto Rico for same period and in Cuba during our occupation. On this proposal Messrs. Day and Gray express the view that if Spanish Commissioners will agree to cede Kusaie for amount proposed, grant religious freedom in Carolines, and promptly sign treaty as tendered by us, they would concede extension of privileges granted to Spanish ships and merchandise in Philippine Islands to Puerto Rico for five years and Cuba during our occupation, but not to exceed five years. In such case they consider it a not unreasonable concession to ancient habitudes and to Spanish commerce prostrated by war. It is not clear to them that such a concession in a treaty acquiring territory would open the favored-nation door. For precedents for such action on the part of the United States see sixth article of the treaty with Spain for the annexation of Florida in 1819 and seventh article of the treaty for cession of Louisiana in 1803. Mr. Davis states that he is opposed on principle to granting to Spain as to Puerto Rico and Cuba the commercial and shipping privileges which she requests. He thinks it should not be a subject of these negotiations, but that it should be dealt with by Congress. Does not believe that these concessions are necessary to secure a treaty. Thinks favored-nation clause would entitle certain other nations to same privileges we grant to Spain. Mr. Frye declares he is most emphatically opposed to this proposition. Kusaie, even without any money payment, would in his opinion be no compensation for this privilege. Mr. Reid objects to Commission’s taking initiative on [a] subject [in] no way covered by our instructions, especially as proposed action would endanger the future extension of present long-standing policy of [the] Government [Page 963] to Puerto Rico and Cuba. He thinks no step of such gravity should be proposed here without action of President, if not also of Congress. Commissioners desire instructions on this subject.
Next joint meeting to-morrow, 3 p.m. We have agreed to mutual release of prisoners and return to their country by party releasing them.