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Forsyth, John, to Aaron Vail, July 15, 1840.
John Forsyth, Secretary of State of the United
States, to Aaron Vail, United States Charge d'Affaires Madrid
|EXTRACTS|
WASHINGTON, July 15, 1840 [excerpt].
SIR: It is expected that without any delay that can be avoided, you will proceed to Madrid and enter upon the duties of your mission– Mr. Middleton, who, upon the departure of Mr. Eaton took charge, ad interim, of the archives and concerns of the Legation has been apprised of the intention of the President to fill the mission by the appointment of a Charge d'Affaires, and directed to surrender his charge to the person who would present himself to him in that capacity. In deciding upon a change, for the present, in the rank of our diplomatic representative at Madrid the President has thought that courtesy towards the Spanish Government required some explanation of the circumstance. Such explanations have already been made in an informal manner through the Spanish Minister accredited here, and might supersede the necessity of any allusion to the subject on your part– Lest, however, it should be introduced in your conversations with members of the Spanish Government, it is proper that you should be prepared to communicate the views of the President where you shall think it fit that they should be known. Without entering into particulars, you might state in general terms that the change referred to was called for by motives of mere and probably temporary convenience in the conduct of the foreign relations of the country; that it was adopted under a conviction that neither the interests of the U. States or Spain, nor the interchange of diplomatic relations between the two countries can be injuriously affected by it; and that, in deciding upon it the President has not been actuated by any feelings towards Her Catholic Majesty other than those of high personal respect and consideration; and towards the Spanish nation by any other desire than that of contributing by all means in his power to strengthen and perpetuate the bonds of friendship, good neighborhood, and good understanding, which have so long and so uninteruptedly united the two countries in a connection mutually beneficial to both.
Among the subjects which will first claim your attention on your arrival at Madrid,
is the failure of the Spanish Government to perform that part of its obligations
under the Treaty signed at Madrid on the 17 February 1834, which provides for the
semi-annual payment of the interest on the Inscriptions given in satisfaction of
the claims of our citizens....
Later intelligence of the political condition of Spain leads to the belief that it
has materially improved and holds out the prospect of the speedy pacification of
the country– That the improvement has been such as to enable her to fulfil[sic] all
her engagements is hardly to be expected– It is believed, however, that her command
over her resources can not but have been restored to a sufficient degree to enable
her to make good the assurances given us by her Minister in June 1837, and discharge
her obligation towards the U. States– If, however, upon your arrival at Madrid you
shall find that the arrears of interest due on our inscriptions are still unpaid
you will address a note to the Spanish Government in which, after expressing the
surprise and dissatisfaction at the continued & daily more aggravated infraction
of the Treaty of 1834, and setting forth the reasons stated above why the debt due
to us can not be allowed to rank with its common liabilities, you will communicate
in strong but decorous language the President's expectation that the outstanding
obligations of Spain towards us shall without delay be satisfied; and that such provisions
shall in future be made as will secure the punctual discharge of the interest on
the principal of the debt–
As it might not be convenient for the Spanish Treasury to provide at the present
time for the payment of the arrears in the manner stipulated by the Treaty, the President
is willing that some other mode which shall effectually secure the interests of the
claimants against any loss should be adopted– The great and active commerce carried
on between the U. States and the island of Cuba, and the high rates of duties to
which, under the existing colonial policy of Spain, that commerce is subjected, necessarily
involves the daily payment into the Custom houses of that island of large sums of
money by citizens of the U. States in satisfaction of the duties levied upon American
vessels and their cargoes. It has occurred to the President that it might accord
with the views and convenience of the Spanish Government, instead of providing at
Paris the funds necessary for the payment of the arrears of interest due us, as should
have been done in compliance with the terms of the Treaty, to make them chargeable
upon the revenues of Cuba – Two modes of effecting this object would suggest themselves
– 1st–by drafts upon the colonial government for the entire amount of arrears with
interest upon the same payable either in one sum, or by instalments at reasonable
periods;– or, 2nd by an issue of Treasury notes receivable at the Custom houses of
Cuba in payment of duties upon American vessels and their inward and outward cargoes,
or even for a portion only of such duties upon each vessel and its cargo, if it should
be thought more convenient so to limit the presentation of the notes– In that spirit
of accommodation which has ever characterised the conduct of the U. States towards
Spain the President would be willing to enter into an arrangement for the payment
of whatever sum may be due on account of interest at the date of its conclusion;
and even to extend it to the discharge of any interest that may become due in future;
which could easily be done by making the coupons annexed to each certificate of Inscription
receivable, likewise, in payment of duties by the Custom houses of the island of
Cuba. It is believed that the proximity of that island to our shores, and the frequency
and rapidity of our commercial operations in that quarter would render this mode
of making our Spanish inscriptions available, certain and advantageous to our citizens,
while it would scarcely be felt as a burthen by Spain.
If, either from a repetition of the avowal of the Spanish Government of their inability
to execute the Treaty, or from unreasonable delay in answering your demand for it,
you become satisfied that no immediate redress is to be expected, you are authorised
to represent yourself as empowered to agree on the part of the U. States to an arrangement
for the payment, in the manner above stated, of the interest in arrear and current
on the principal of the debt– It is probable that this can be effected without a
formal agreement in the form of a Treaty, and by a simple act of Spanish legislation–
Should any proposition be made by the Spanish Government materially different from
the basis set down in these instructions, you will receive it only for reference
to your Government, and await further instructions.
Our commercial intercourse with Spain is now, owing to the disinclination frequently
manifested by her Government to enter into Conventional arrangements, regulated by
the separate legislation of each country, and, consequently subject to every change
which either may, at any time, think fit or convenient to introduce in her commercial
code– Its condition is therefore unstable, and liable to fluctuations the danger
of which cramps and paralizes the mercantile spirit of enterprize which the resources
of both nations are so eminently calculated to foster & extend. The last formal
proposition on our part for the negotiation of a commercial Convention was declined,
in January 1831, on the ground that, in the then condition of the commerce of Spain,
conventional stipulations would prove burthensome to her interests; and the discussion
of the question was adjourned to some more auspicious period– From that time our
efforts have been directed to the attainment of the same object by different means;
but have been attended with but partial success. Early in 1832 the tonnage duty on
our vessels in the ports of Cuba, was, by Spanish regulation, reduced from the exorbitant
rate of $2.50 to that of $1.50 per ton; and by a Royal Order of the 29th. April of
the same year, the tonnage duty upon our vessels in the ports of the Peninsula and
its dependencies, the Balearic and Canary islands, was brought down from 20 to one
real plata–that is, from one dollar to five cents per ton– This rate of five cents
per ton is the same that is paid by Spanish vessels, and by those of the most favored
nations– It, therefore, in fact, places our navigation upon the national footing
in the peninsular ports.–On the 13 July of the same year Congress passed an Act,
the first section of which had the effect of admitting Spanish vessels in our ports
on payment of a like tonnage duty of five cents, but confined the privilege to such
vessels as came from ports in Spain– Against this restriction the Spanish Government
has remonstrated on the ground that the Royal Order extended the reduction to all
vessels of the United States, from whencesoever coming, and demanded a similar extension
to Spanish vessels– The language of the act precluded a compliance with the demand,
but the President considering it as consistent with the principles of reciprocity
which forms the basis of our intercourse with Spain has recommended to Congress,
in a message of which a copy is enclosed, the adoption of legislative provisions
extending the benefits of the Act of 1832, to Spanish vessels coming from all parts
other than the islands of Cuba, Porto Rico, and the Philippines–the only portions
of the Spanish Dominions to which the Royal Order is not applicable. A Bill in compliance
with the President's recommendation is understood to be now under the consideration
of Congress.
If that bill shall become a law the vessels of both countries, exclusive of those
trading with the last-named islands, will be admitted in each other's ports on payment
of a tonnage duty of five cents per ton – Had the Royal Order of the 29 April 1832,
instead of specifying the duty still to be paid by our vessels, repealed in general
terms the discriminating duty on American shipping – the effect of which would have
been the same, since under that order our ships actually pay no more than those of
Spain, – the President would have been authorised, under the 3d. section of the Act of the 13th. July, to direct the admission of Spanish
vessels in our ports on the same footing as American vessels,–that is, free from
any tonnage duty whatever– Although Mr.
Van Ness has frequently represented this inequality, as he considers it, in the operation
of this portion of the legislation of the respective countries, as not carrying out
the intention of the agreement of 1832, of which it was the result, and as giving
a fair claim to the benefits of our general legislation in this respect, no formal
or direct representation has moved from the Spanish Government itself to induce us
to believe that it considers itself aggrieved by the alleged inequality; nor, indeed,
that it is aware of it at all– If it were otherwise it would not but understand that
by a mere change in the language of the Royal Order–such as would repeal all discriminating
tonnage duties on American vessels–which would not vary the actual order of things–its
shipping would be exempt from any duty of tonnage in our ports. If, in reality, the
Spanish Government is unaware of the authority vested in the President to grant a
further privilege to Spain, on the simple condition of a mere change of words in
her legislation, the circumstance might be turned to advantage in future endeavors
on our part to obtain further relaxation from the onerous restrictions still weighing
upon our trade with her.
By the legislative provisions above referred to, our vessels visiting the Peninsular
parts of the Spanish Dominions are placed on as good a footing as can be expected;
but our producing and commercial industry still labor under grievous burthens from
which no exertion should be spared to relieve them– Upon articles the produce of
our soil and fisheries constituting important branches of our commerce with Spain,
high import duties are demanded; and on these an addition of 33 1/3 per centum is
made when imported in other than Spanish vessels. We complain, and with reason, of
these two exactions as contrary to every thing like the fair terms of equality and
reciprocity which should govern the intercourse of civilised nations. The duties
upon our produce imported into Spain much exceed those levied by us on Spanish productions,
one of which, wine, though now, and for a time which will soon expire, laboring under
a discrimination in favor of the same article from France, is admitted to consumption
at a duty almost nominal when compared with that imposed upon it in most countries,
and out of all proportion if compared with the duties charged in Spain upon nearly
all our staple productions. Again, our discrimination in favor of importations in
national vessels presents a still greater disproportion. To their protective duty
of 33 1/3 per cent under that head we oppose but the one of ten per cent provided
by our laws to countervail foreign restrictions.
But the burthens which weigh most heavily upon our trade with Spain are the exorbitant
charges to which our maritime, agricultural, and commercial industry is subjected
in her colonies. The islands of Cuba and Porto Rico not being included in the Royal
Order of 1832, our vessels still have to pay in those colonies, twelve reals vellon,
or one dollar and fifty cents per ton while Spanish vessels are only charged five
reals, or 62 1/2 cents, making a discrimination of seven reals or 87 1/2 cents per
ton against us. The failure of our efforts to induce Spain to equalise the rate of
tonnage duty on the vessels of both nations trading to those islands compelled us
to resort to the countervailing measures provided by the 2d. section of the Act of 13th. July 1832, subjecting Spanish vessels coming
from the Colonies of Spain to a tonnage duty equal to that charged upon American
vessels at the port from whence such Spanish vessels cleared; the rate to be from
time to time ascertained by the Secretary of the Treasury.
Upon our produce imported in the colonies, besides an enormous import duty, charged
without reference to the flag under which it is brought, a discriminating duty is
added when carried by an American vessel; and upon the produce of the islands a like
discriminating export duty is levied when the goods are exported in American bottoms–
To counteract these hostile provisions further resort to countervailing restrictions
was had in the act of the 30 June 1834, which enacts, section I, that any Spanish
vessel coming from the islands of Cuba or Porto Rico should, in addition to any tonnage
duties, chargeable under any existing act, pay a further tonnage duty equivalent
to the amount of discriminating duty which would have been imposed on her cargo if
said cargo had been exported from the port of Havana in an American vessel: and,
section II, that before any Spanish vessel should be permitted to clear out with
cargoes destined for said islands, they should be charged with such further tonnage
duty as would be equivalent to the amount which would be payable on their cargoes,
if such cargoes were imported into the port of Havana in American vessels.
These two acts of 1832 and 1834 have equalised the terms upon which commerce is now
carried on between the United States and the Spanish colonies in American and Spanish
vessels; but the equalisation is one of burthens and restrictions instead of benefits
and facilities– It cramps and bears down a trade which, in spite of the efforts made,
as it were, to ruin it, still prospers and increases through the force of circumstances
by which it is called into action – The benefits, however, to both parties could
not but be multiplied to an extent not easily calculated or foreseen, if the trade
were fostered, or even left to itself, by a more liberal policy.
This state of things is, and always has been with us a subject of regret: it is in
opposition to all our views and principles as they stand recorded both in our international
and local legislation – We have with all the principal commercial nations, excepting
Spain, commercial arrangements carrying out those views and principles upon the stable
footing of Treaty stipulations; while, by our laws, the Executive is authorised to
admit into a participation of their benefits any nation disposed to adopt them with
regard to us, but which prefers doing so by the separate act of each Government –
In addition to the general provisions offering the same terms to all foreign powers,
the legislation of the U. States has had for its especial object, whenever necessity
has called for the adoption of countervailing restrictions towards Spain, to provide
for the immediate repeal of such restrictions the moment it might suit Spain to recede
from the extreme points to which her restrictive policy has been extended – In both
the acts of Congress of 1832 and 1834, the President is authorised by proclamation,
to arrest their operation so soon as he shall have received satisfactory evidence
of the abolition of the discriminating duties imposed by Spain upon our commerce
and navigation, or either of them.
The President is still anxious that the wishes of the United States should be fulfilled,
and willing to leave Spain her choice of the means by which the object may be attained
– The spirit in which she has received our propositions for the conclusion of Conventional
arrangements has not been such as to preclude all hopes that, at some future day,
this, the more desirable mode, – of regulating the commercial intercourse of the
Two countries would be acceded to by her – Her last answer to our propositions looked
for the accomplishment of it to more propitious times – Although we are not apprised
of any thing very decisive having transpired to induce a belief that the looked for
period is at hand, there have been changes in the condition of Spain which may have
altered her views and sentiments in this respect. The state of our information in
this particular would not, at present, justify any direct proposition on our part
for the negotiation of a commercial Treaty; but you will endeavor by every proper
means that occasion may furnish – after apprising the Spanish Government of the unchanged
state of our wishes – to sound their present dispositions, and take every suitable
opportunity to impress official persons with a sense of the value of the advantages
which, we feel convinced would accrue, to Spain as well as to ourselves from a more
permanent and more liberal establishment of the commercial relations of the two countries.
Any favorable indications you may perceive on this you will immediately report to
this Department. If convinced that Spain persists in her aversion to conventional
arrangements, you will take care that her ministers be kept informed that the desired
result may, at any time, be partially obtained by separate legislation. It is understood
that on the part of Great Britain and France efforts are making–or, at least, a desire
entertained to open with Spain negotiations for the same object. You will keep an
eye to the movements of these, and other nations on this head; and the Spanish Government
should be apprised that any commercial favors or facilities granted in this or any
other way to foreign powers will immediately be claimed by the U. States, as justly
their right as one of the nations most friendly to Spain.
Source: Vol 11-Spain, Diplomatic Correspondence of the United States, Inter-American
Affairs, 1831-1860, arranged by William R. Manning. Washington, [D.C.], 1939,
16 - 22.
