Office of the Historian

No. 323.
Mr. Carter to Mr. Blaine.

Legation of the United States,
Caracas, November 29, 1881. (Received December 16.)
No. 36.]

Sir: I have the honor to acknowledge the receipt of your No. 15, of November 1 instant, inclosing copy of a letter from Messrs. Boulton, Bliss & Dallett, of New York, relative to the special duty provided for by decree of the Venezuelan Congress on all goods transhipped from any of the West Indian islands into the republic. Without indicating the source where this complaint originated, I called the attention of the minister of exterior relations to this decree, and informed him that ill effects might come upon the commerce of the United States if the decree should be enforced. I ascertained from the minister that Trinidad and Curacoa generally were points from which smuggling ventures emanated, to the serious disadvantage of Venezuela, and they, particularly the latter, were the rendezvous of disaffected and seditious persons, who used these localities as points of organization for revolutionary movements against the Government of Venezuela. For these reasons the Venezuelan Congress had passed the decree referred to. The purpose was political rather than fiscal, and looked to the suspension of trade between these two islands especially and Venezuela as the price of protecting the government of the republic against revolution and the violation of its revenue laws. I suggested that this course might provoke retaliation from Holland and England; that thereby disaffection would be promoted and the facilities for the hurtful expression of it against the Government of Venezuela would be also increased; that the government could bear political agitation from malcontents better than this loss to its commerce; and finally suggested that the trade #f the United States with ‘South America, owing to the condition of the South American ports, required, in many cases, intermediary points for distribution and transhipment of its products, and that the collection of these differential duties might seriously embarrass our commercial interests. Mr. Seijas responded that there was great force in these considerations; that this legislation, prompted by political motives, was experimental, and its expediency doubtful; and finally, that the Congress would convene in February, and could, and probably would, repeal this law. I have no doubt, if urged thereto, on the ground of preventing hardship and injury to our commerce, the law would be suspended, but I did not deem it prudent at this juncture to make this the only or main reason for a repeal or suspension of the law, but attempted, in addition to this ground of action, to give other considerations that would justify the government in reversing its policy.

I have the honor to inclose, for your information, two copies of the Gaceta Oficial, containing the decree referred to, together with a translation thereof.

I have, &c.,

GEO. W. CARTER.
[Inclosure in No. 36.—Translation.]

The Congress of the United States of Venezuela decrees:

  • Article 1. Produce, merchandise, and chattels proceeding from foreign colonies and imported through the ports of entry of the republic, as well as those proceeding from the ports of Europe or the United States of North America, destined for Venezuela [Page 525] and transhipped in said colonies into other vessels which are to bring them to this country, are to pay 30 per cent, additional on the amount of the specific duties, payable according to the tariff now in force.
  • 2. Produce, merchandise, and chattels shipped in Europe or the United States of North America, destined to the eastern or western ports of the republic, to which the vessels having them on board do not propose to proceed, may be transhipped in Carupano, La Guayra, or Puerto Cabello in order to continue their voyage to said ports, and may also be examined and cleared in any of these three ports of transhipment in order afterwards to be forwarded to their destination in coasting vessels.
  • § In this last case there shall be allowed on the duties on merchandise, produce, and chattels thus imported such a rebate as the national Executive may fix as compensation for the extra expenses incurred on them, but the articles thus cleared must remain deposited in the respective custom-houses until reshipped to their destination.
  • 3. The national produce and productions shall continue to be exported to foreign countries as heretofore through all the ports authorized to that effect. They may also be transhipped in the ports of La Guayra, Puerto Cabello, and Carupano at the option of the owners, if, at the time of transhipment, the payment of road-tax levied as per existing tariff by the respective overland custom-houses (“aduanas terrestres”) is authentically attested.
  • 4. This law is to come into force on the termination of the treaty of amity, commerce, and navigation, signed between Venezuela and His Majesty the King of Denmark on the 19th of December, 1862, which, having already been denounced, will only be obligatory for one year more from the receipt of such notification.

Given at the Palace of the Federal Legislative Body at Caracas, the 27th of May, 1881, eighteenth of the law and twenty-third of the federation.

The president of the Senate:
NICHOLAS M. GIL.

The president of the Chamber of Deputies:
D. BUSTILLOS.

The secretary of the Senate:
M. CABALLERO.

The deputy secretary:
N. AUGUSTO BELLO.
Federal Palace at Caracas, the 4th of June, 1881, eighteenth year of the law and twenty-third of the federation.

Be it executed and let its execution be taken care of.

GUZMAN BLANCO.

Countersigned:

The minister of finances:

J. P. ROJAS PAUL.