Mr. Taylor to Mr. Gresham.


Yesterday council of ministers consulted as to Cuban tariff upon American products. It was argued that as present tariff of the United States favors Cuban sugars as against those from nations paying bounties on sugars exported, Spain can for that reason extend to American products lowest tariff rates. Council instructed minister of state to negotiate with me for modus vivendi upon that basis. To-day subsecretary came to legation, and after long conference he made definite offer to make “modus” giving to American products in Cuba and Puerto Rico most favored-nation treatment in consideration of like treatment for their products in the United States.

In short, Spain concedes all President asks, simply in consideration of benefits now granted Cuban sugars by existing tariff. Modus vivendi proposed as necessary form to satisfy requirements of Spanish law.