No. 9.
Mr. Bayard to Mr. Pendleton .

No. 181.]

Sir: As you are aware, the Government of Germany has claimed the extension to the carrying trade between German ports and the United States, without equivalent, of the benefits conceded by the shipping act of 1884 to all carrying flags coming from ports within a geographical region contiguous to our borders.

[Page 1872]

Notwithstanding that the amendatory shipping act of June 19, 1886, provides in its eleventh section for the enlargement of the privilege of reduced tonnage on the basis of reciprocity where the condition or neighborhood does not exist, the Imperial Government has anticipated the proposal authorized by that and by the twelfth section of the act referred to by claiming the privilege without equivalent. J transmit, for your information, copy of Mr. von Alvensleben’s note of August 1, 1886, in which the claim is so presented and defended by arguments which I am unable to accept as sound or sufficient.

A reply to the German demand has been delayed, partly because it appeared necessary to first dispose of the Swedish and Norwegian claim, on which the others more or less depend, and partly from a desire to give to the merits of the discussion a material modification by entering into a reciprocal arrangement with one or more countries under the expanded provisions of sections 11 and 12 of the act of June 19, 1886.

The inclosed copies of correspondence had with the Swedish and Norwegian minister will show you the present status of the discussion with that Government. It is sent to you for your information merely, not for communication to the German Government.

The Government of the Netherlands has asked the formal conclusion of the reciprocal understanding, provided for by the eleventh section of the act of June 19 last, and the only obstacle to the acceptance of the proposal and the issuance of the President’s proclamation lies in a recently-discovered ambiguity in the subproviso of that section, which renders it uncertain in its application. Its early amendment is, however, probable, when the proclamation will forthwith be issued.

This instruction is sent in order to keep you fully advised of the progress of an important discussion with the country to which you are accredited, but no action on your part appears to be necessary beyond reporting any facts which may come to your knowledge in this relation.

I am, etc.,

T. F. Bayard.