Mr. Gresham to Senhor Mendonça.

My Dear Mr. Mendonça: I received yesterday your important letter of the 25th instant. I think it clear that the reciprocity arrangement between Brazil and the United States was terminated by the going into force of oar existing tariff law, and I do not think the Executive Departments can act upon any other theory.

This is the view of the Secretary of the Treasury.

The so-called treaties or agreements that were entered into based upon the third section of the McKinley bill were not treaties binding upon the two Governments, and the present law is mandatory. Notice to your Government that the arrangement would terminate as provided by its terms would have no force, as the arrangement actually exists no longer.

Very truly yours,

W. Q. Gresham.