Mr. Blaine to Mr. Dockery.

No. 135.]

Sir: I inclose copy of a dispatch recently received from our consul at Bahia, reporting that on January 11 last the State of Bahia enacted a law imposing a duty of 19 per cent on skins exported to the United States.

As by the terms of our reciprocity arrangement with Brazil no new nor increased export tax can be levied in that Republic on any article admitted free into the United States, you are instructed to bring the matter to the attention of the minister of foreign affairs in order that the Government may provide for the observance of the stipulations of the arrangement.

I am, etc.,

James G. Blaine.
[Inclosure 1 in No. 135.]

Mr. Thomas to Mr. Wharton.

No. 13.]

Sir: I have to state that on the 11th of the present month the legislature of the state of Bahia enacted a law, made operative by the signature of the governor, imposing a duty of 19 per cent upon skins exported to the United States. This plainly seems to be in violation of the commercial arrangement entered into between the United States of Brazil and the United States of America, concluded January 31, 1891, and promulgated February 5, 1891.

By this treaty, skins, with the exception of sheep skins with the wool on, were exempted from duty and classed on the free list.

Nearly all of the skins produced in Brazil are exported to the United States. Bahia is the only State in Brazil, so far as I know, that has imposed this duty, and this manifestly unjust tax operates oppressively upon the American merchants who are engaged in the buying and exportation of skins. The first shipment of skins, after the new law went into effect, was on the 22d instant. The merchants interested paid the duty under protest, noted in this consulate. A protest has also been filed with Consul-General O. H. Dockery, with the request to bring the matter before the General Government.

Any advices the State Department may transmit to me bearing upon this subject will be duly appreciated.

I am, etc.,

Wm. O. Thomas,
U. S. Consul.