No. 74.
Mr. Bayard to Mr. Hall.

No. 517.]

Sir: I have to acknowledge the receipt of your No. 718, of the 12th ultimo, in the matter of the Spanish Central American Line of steamers, and the contract with the Government of Costa Rica granting a rebate of 5 per cent on all merchandise imported by the steamers of that line into the Pacific ports of that Republic.

I have inclosed a copy of your dispatch to the Secretary of the Treasury, calling his attention to your note to the Costa Rican minister for foreign affairs protesting against this unfavorable treatment of American commercial interests, and intimating that unless our vessels were accorded the same rebate, this Government might find it necessary to apply retaliatory measures.

Your action in the premises is approved.

I am, etc.,

T. F. Bayard.